Welcome to the Project Cycle Management Training Day 5 Section 1

1. Welcome to the Project Cycle Management Training Day 5 Section 1 SOMALIA AGRICULTURE AND LIVELIHOODS CLUSTER Training prepared and implemented by: Italian National Research Council Institute for International Legal Studies Section of Naples

2. Project Cycle Management Training Technical Basis of PCM: Identification and formulation phases 7. Budget drafting This section’s focus

3. Project Budget Preparation – Prerequisites • To draft a functional budget we can refer to our GANTT diagram in order to understand the amount of resources that we have planned as necessary to carry out our activities

4. Project Budget Preparation – Prerequisites • Our GANTT diagram already provides us with a sub-division into different activities of the various resources needed. • If necessary we should than further sub-divide the resources into manageable components

6. Project Budget Preparation – Steps • List of Activities/Tasks • Sub divide them into units that can be budgeted • Evaluate the Duration of the various tasks according to the GANTT diagram • Revise subdivision of activities in the GANTT if necessary • Confirm the Project Duration • Assign more resources to reduce the time • Cut unnecessary activities • Assign more work to resources

7. Budget

8. Monitoring Our GANTT diagram indicates a 4 months work for these activities. How do we calculate our costs in relation to this?

9. Monitoring We should break down activities in order to understand the human resources and means needed to complete the activities and for how long shall we need them

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11. Monitoring We know that we need two teams of 3 researchers for roughly 4 months. The salaries should now be budgeted for the period indicated.

12. Monitoring The GANNT provide us with the following information: CNR Agricultural research team will work from week 1 to week 4 then from week 6 to week 8 and from week 9 to week 13 For a total of 12 weeks

13. Monitoring CNR Social research team will work from week 3 to week 4 then from week 14 to week 15 For a total of 4 weeks

14. Monitoring The total number of weeks in which the two team will be working is so 16 which equals to 4 months We will so have the two teams of 3 persons working for a total of 4 months

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17. End of section 5.1

18. Project Cycle Management Training This section’s focus 8. Monitoring

19. Monitoring Monitoring As you might remember we defined monitoring as a systematic and continuous collection, analysis and use of management information to support effective decision-making

20. Monitoring Monitoring is a timely and organised information collection and its analysis, allowing the management to timely make proper decisions for the project to stay on track.

21. Monitoring Monitoring • Responsibility: internal management • Participants: management, team, partner organisations, community (participatory M&E), women’s groups, etc… • Timing: at various stages during implementation, with a fixed periodicity (monthly, every two months/three months) • Output: monitoring report

22. Monitoring Why Monitoring? Monitoring compares planned vs. actual achievements of targets (budget, activity schedule, results) to identify necessary remedial actions

23. Monitoring Why Monitoring? Analyse project progress Analyse project – community relation Assess whether inputs have been correctly forecasted Adjust inputs to changed scenario/conditions Assess timely implementation of activities Adjust resources if needed

24. Monitoring • Monitoring considers the question ‘are we doing the project correctly?’ (doing things right). Its purpose is to alert management to any problems that arise during implementation.

25. Monitoring • Monitoring works within the existing project design, focusing on the transformation of inputs and activities to outputs. It ensures that inputs are made available on time and are properly utilised. If any unexpected results are observed, their causes are noted and corrective action identified in order to bring a project back onto target.

26. Monitoring Requirements and means for monitoring • adequate planning • baseline data • well defined indicators (of performance and of results) • mechanisms such as field visits, stakeholders meetings, updated project documentation, regular reporting

27. Monitoring What can be monitored? • –Budget • –Activities • –Project objectives (general or specific objective, results) • Risks and assumptions • –Processes

28. Monitoring Types of monitoring utilised in project management • – Project management • – Budget/finance • Programme

29. Monitoring 1. Management and administration Examples of what can be monitored include: • –Staff (performance, presence, productivity, etc…) • Use of means (vehicles mileage, office equipments) • Supplies (quantity, supplies, quality, appropriateness)

30. Monitoring 2. Finance Examples of what can be monitored include: • –Budget and expenditure • Expenditure by budget headings • Staff salaries • Cash flow Expenditures shall be monitored against planned budgets and implementation schedules

31. Monitoring 3. Programme monitoring Examples of what can be monitored include: • –Project inputs • Activities • Outputs • Project progress towards results and objectives Process monitoring Impact monitoring

32. Monitoring Process monitoring relates mainly to: • –The use of resources • The correct implementation of activities • The timely implementation of activities

33. Monitoring Impact monitoring allows us to: • –Continuously relate the work to its purpose • Modify the project following changes in the framework or circumstances • Identify the need for changes in the project LF structure (activities, results and even objectives) • Adjust expenditure by budget headings Expenditures shall be monitored against planned budgets and implementation schedules

34. Monitoring • monitoring systems should contain both process and impact monitoring • if impact monitoring is done well, formal evaluations will be needed less often • moreover staff and stakeholders will already be familiar with their work in relation to the objectives and will find an evaluation less threatening

35. Monitoring EC UN Objective Objective Impact monitoring Results Outcomes Outputs Process monitoring Activities Activities Inputs Inputs

36. Monitoring PROCESS MONITORING

37. Monitoring Process monitoring relates mainly to: • –The use of resources • The correct implementation of activities • The timely implementation of activities Two basic instruments for process monitoring are the GANTT diagram and the Budget

38. Monitoring The GANTT provides us with information on: • –What activities should be implemented in a certain period of time • Who would be responsible for a certain activity • The relation between one activity and the other within the project structure (dependency) • Measure of achievements towards the objectives (milestones)

39. Monitoring A general GANTT covering the whole project period is normally drafted at formulation phase. It shall be updated at the starting of the activities (conditions might have changed) It provides a constant window over project progress

41. Monitoring BUT A detailed GANTT can be drafted for every specific period of the project (from few weeks to few months) to allow the project management a more detailed monitoring of the project progress. For example the first set of activities of our project were supposed to last 4 months:

43. Monitoring At the start of a project a GANTT is produced providing us with detailed information about those first four months of activity. The level of information provided should allow us to follow-up on those activities more closely.

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45. Monitoring And break down the general activities into activities that could be monitored more closely, going from a GANTT based on months to a more specific one based on weeks

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47. Monitoring Such a GANTT would provide us with detailed information about which component of the project is proceeding timely and which one would be lagging behind

48. Monitoring Another useful tool, strictly related to the GANTT, that we can rely upon in order to monitor project progress is the project budget

49. Monitoring Let’s assume we are at mid-term of our one-year project. The total budget was of 147.900 Euro. After six months half of the budget has been spent. Which seems to be in line with the plan. The following is the human resources related expenditure after 6 months of activity:

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