AIOU Solved Assignment 1& 2 Code 8617 Spring 2020

AIOU Solved Assignments code B.Ed 8617 Spring 2020 Assignment 1& 2  Course:Plan Implementation and Management (8617) Spring 2020. AIOU past papers

Plan Implementation and Management (8617) B.Ed (2/5, 1/5 Years)
Spring, 2020

AIOU Solved Assignment 1& 2 Code 8617 Spring 2020  

Q.1   Why is plan formulation a crucial function? What are the principal characteristics of an educational plan? Justify your answer with examples.                       (20)

It’s the process of laying out a logical structure called a plan.

  • It is cyclic in nature i.e.
  • It varies from one country to another due to:
  1. Degree to which the education plan forms the integral part of the economic plan
  2. The weakness or strength of the statistical services
  3. The features of the school systems-both private and public
  4. The weakness or strength of the statistical services

There are five stages

  1. Base Situation Analysis/identification of the national goals
  2. Prepare the draft education plan/determine the best of the alternative
  3. Approval and experimentation
  4. Implementation/Decision making
  5. Evaluation/ FeedbackWorld Bank

Base Situational Analysis/identification of the national goals

  • Look at education system from a wider perspective e.g. societal, enrolment rate (gross/apparent or real/net)

Answers questions such as:

  1. To what extend has education assisted in achieving the laid down objectives e.g. production of manpower, enhancing national unity.
  2. What is the quality of the output/outcome? Do they meet the requirements of the available job opportunities?
  3. Do the output need retraining
  4. Do we need to review our curriculum
  5. Is education evolutionary enough

Note:’ A system that does not keep data cannot give this information thus need to keep data to be objective enough Before going to the next stage study carefully the existing government policies on education.

Preparation of Draft Education Plan/determining the best of the alternative/ Developing the Proposal

There is need to build consensus among the various stakeholders i.e. those with divergent ideologies e. g. sociologist, economists also between theorists (those with credentials e.g. educationists) and pragmatists (those with practical experiences e.g. teachers. Note

  • The best plan/alternative should be in view of;
  1. Relative cost
  2. Benefits
  3. Time requirement
  4. Practical feasibility
  5. Regard education Effective/efficient
  • Develop a plan of action where you are, where you want to be (destination) and the means to get there: (give a brief of the strategic plan processes)

3 Lobbing, Approval & Experimentation

  • Involves conditions that would influence the achievement of the objectives e.g. govt, politicians, civil society, consider the rate of inflation which may affect the cost of living, cost per student place
  • The plan should not be dictated to people
  • Planners to educate people to understand the document
  • Lobby the ministers, Permanent Secretaries – these will be used to educate the cabinet, MPs and president

Planners are technically qualified: why should they go for MPs (some not competent). We should have a broader national interest for the plan not personal.

”’Experimentation, Pilot Planning, Pre-testing, Pilot Study”’

  • This is a stage where planning is tried and tested to identify the areas of weakness
  • Choose a few selected schools and sample to implement the plan. These should be representative.
  • Done to avoid continuous repetition of an error
  • After piloting: correct and improve the errors based on the results.

4 Implementation/Decision making*Every stakeholder should be involved i.e. teachers, head teachers, parents, government (All those who were consulted earlier)

  • It’s the most difficult stage in the planning process
  • It involves dealing or struggling with the reality
  • This involves implementation of new methodologies, structures e.t.c. To what extent is the administrative structure flexible enough to implement this change? Most of them are conservatists maintain the status quo (resist change).
  • All those involved in the implementation should be firmly in touch with daily practice, should have clarity of vision, insight and imagination
  • The task is to get rid of this barrier and accommodate the change which is of much benefits
  • Teachers will implement the changes through in-service training
  • As we implement, evaluation is going on
  1. Formative i.e. continuous
  2. Summative i.e. at the end


  • It’s the last stage
  • For any planning to be realistic there must be feedback from current experiences
  • There must be a self-evaluating mechanism to address the following questions.
  1. What are the problems with the plan
  2. What have we achieved
  3. What have we not achieved
  4. Why have we not achieved it
  5. How do we improve what we have achieved

After evaluation (answers to these questions), we start to plan on how to improve the situation. We go back to where we started –Base Situation Analysis.

Internal aspects of plan feasibility

As the name implies, a feasibility study is used to determine the viability of an idea. The objective of such a study is to ensure a project is legally and technically feasible and economically justifiable. It tells us whether a project is worth the investment.

Feasibility studies are useful to businesses in many ways. Some of the reasons organizations conduct feasibility studies are as follows:

  • Not every project is doable.
  • Not every project should be taken up. This will engage otherwise useful resources and block their use on other tasks.
  • Not every project makes effective use of the resources of an organization.

Five Areas of Project Feasibility:

Technical Feasibility – assessment is centered on the technical resources available to the organization. It helps organizations asses if the technical resources meet capacity and whether the technical team is capable of converting the ideas into working systems. Technical feasibility also involves evaluation of the hardware and the software requirements of the proposed system.

Economic Feasibility – helps organizations assess the viability, cost, and benefits associated with projects before financial resources are allocated. It also serves as an independent project assessment, and enhances project credibility, as a result. It helps decision-makers determine the positive economic benefits to the organization that the proposed system will provide, and helps quantify them. This assessment typically involves a cost/ benefits analysis of the project.

Legal Feasibility – investigates if the proposed system conflicts with legal requirements like data protection acts or social media laws.

Operational Feasibility –  this involves undertaking a study to analyze and determine whether your business needs can be fulfilled by using the proposed solution. It also measures how well the proposed system solves problems and takes advantage of the opportunities identified during scope definition. Operational feasibility studies also analyze how the project plan satisfies the requirements identified in the requirements analysis phase of system development. To ensure success, desired operational outcomes must inform and guide design and development. These include such design-dependent parameters such as reliability, maintainability, supportability, usability, disposability, sustainability, affordability, and others.

Scheduling Feasibility is the most important for project success. A project will fail if not completed on time. In scheduling feasibility, we estimate how much time the system will take to complete, and with our technical skills we need to estimate the period to complete the project using various methods of estimation.

Benefits of Conducting a Feasibility Study

Conducting a feasibility study is always beneficial to the project as it gives you and other stakeholders a clear picture of your idea. Below are the key benefits of conducting a feasibility study:

  • Gives project teams more focus and provides an alternative outline.
  • Narrows the business alternatives.
  • Identifies a valid reason to undertake the project.
  • Enhances the success rate by evaluating multiple parameters.
  • Aids decision-making on the project.

AIOU Solved Assignment 1& 2 Code 8617 Spring 2020

Q.2   How would you differentiate a project from a programme and plan? What is regionalization of a project? Is necessary? Give examples.                                            (20)

The exercise of project formulation is being done by an entrepreneur with a view to arriving at the most effective project decision. The project formulation exercise normally contains the following elements:-
a) Feasibility analysis
b) Techno-economic analysis
c) Project Design and Network analysis
d) Input analysis
e) Financial analysis
f) Social Cost-benefit analysis
g) Project appraisal

 Feasibility Analysis
The feasibility analysis is undertaken to conceive and evaluate the project idea and also to decide whether investment has to be made for further development of the conceived project idea within the limitations of the project implementing body and the constraints the project is bound to face.When a project is taken up for development, the project implementation body will come across three alternatives.

Firstly, if the proposed project gives an idea that the project is a positive one, the project assessing body will proceed to invest further resources in pre-investment studies and design development.
Secondly, if the proposed project gives an idea that the project is not feasible to be undertaken, the assessing body of the project will rule out further investment in the project. Thirdly, whatever information and data available on hand are not sufficient to take a decision on the viability of the proposed project; the assessing body will defer the investment decision till such a time when they can take a final decision about the project, after collecting all the required information and data.

Projects should first be identified. After identification, the projects should be analysed in terms of viability from different angles such as, technical, economical, commercial, financial, marketing etc. In short, various alternatives available in marketing, technology and other considerations should be analysed in depth and finally the findings of the assessing body should be given in the form of report with the supporting data in a systematic form. This will help the entrepreneur to choose the best alternative and accordingly the investment decision will be taken by him. Generally, the feasibility analysis consists of three stages viz.

  1. a) pre-feasibility study,
    b) feasibility study,
    c) Project report.

    Techno-Economic Analysis
    This analysis enables the entrepreneur to study the following aspects for achieving the project objectives:-

  2. Identification of the project
    b. Demand potential
    c. Selection of optimal technology
    This analysis provides necessary information on which a project design can be based.
    This analysis also indicates whether the economy is in a position to absorb the output of the project. The techno-economic analysis consists of two parts. The first part is to determine the maximum feasible project output and the second part is to select the optimal strategy to achieve the output.

    Project Design and Network Analysis

Project design is the heart of a project. A project is full of individual activities. These individual activities are interrelated. Activity can be termed as an event also. In other words a project has a chain of events and all these events are interrelated. So, the aim of the project design is to define these individual activities and its interrelationship. Through this chain of events, a project can start producing the desired results in the form of goods and services. These various activities can be depicted in the form of a network diagram. A detailed work plan of a project to be executed within the reasonable time frame is the main concern of project design and network analysis. The purpose of doing network analysis is to identify the optimal course of action to execute the project within the minimum possible time, keeping in mind the available resources.

Input Analysis

The purpose of input analysis is to identify, quantify and evaluate the project inputs. In short, this analysis estimates the requirement of resources for a project. This analysis should serve the purpose of identifying the nature of the input first, quantifying the input available and ensure the uninterrupted supply of inputs.

During the pre-investment stage, a project requires lesser amount of inputs only. During the construction stage, a project may require maximum amount of resources. During the normalization stage, a project will require inputs viz., raw materials, consumables etc on a recurring basis.

Financial Analysis

The purpose of financial analysis is to ensure the financial feasibility of a project. This analysis gives a clear picture about the extent of investment to be made in a project to achieve the desired results. This study will give the details of investment to be made in each and every activity of the project. This study is also called by another name i.e. financial forecast. By undertaking this analysis, one can estimate the project cost of the project, revenue and capital expenditure of the project and the revenues to be generated from the project at the end. It determines not only the funds required for the project during the course of execution but also the generation of income from the project after execution. This will estimate the profitability of the project in clear monetary terms. With the help of techniques such as Break-even Analysis and Ration Analysis the financial feasibility of the project can be ascertained.

Social Cost-benefit analysis

It deals with the estimation of social costs and social benefits. This analysis is undertaken to ascertain the impact of the project on the society as a whole. Greater emphasis is laid on social objectives in this analysis with lesser profit motive. The projects aimed at the development of the society will give secondary importance to the profitability of the project, keeping in view the social objectives as primary.

Project Feasibility

A feasibility report is a document which contains certain factual data and information with respect to any of the investment proposal with a view to appraising the project. For the financial assistance to be extended by financial agencies viz., commercial Banks, Financial Institutions etc., appraisal of a project is very much necessary. For appraising a project, the basic document is feasibility report. Without feasibility report, a project cannot be appraised by the financial agencies. Financial, economical, commercial and technical soundness of a project can be appraised based on feasibility report only. So, other organizations which supply raw materials, margin money, and the suppliers of capital goods will be equally interested in the feasibility report which will reflect the true picture of the soundness of the project.

The formulation and evaluation phase comprises seven main elements, described below:

  1. Estimation of demand and benefits: This task determines the potential benefits that result from the investment. In projects that generate saleable products, the size and nature of market demand is estimated. In the case of non-income generating projects, the beneficiaries must be identified and the impact of the investment on those beneficiaries estimated. In both cases, the exercise helps define the scope of the investment and its characteristics.
  2. Evaluation of the technology: The proposed technology is reviewed in light of the results of the evaluation of demand and benefits, in order to ensure that it is appropriate. The need for maintenance, repairs and machinery replacement and the possibility of alternate technologies is also considered.
  3. Sustainability and environmental impact: This task considers the sustainability of the project not only from the perspective of natural resource usage and environmental impact. It is also critical for those projects not generating substantial income streams, where there is a need for operational support once the investment is completed: a school is not sustainable if there is no provision for paying the teacher’s salary. For investments with the likelihood of a negative environmental impact, impact mitigation measures, or ways to modify the project design to avoid these impacts, must be identified.
  4. Estimation of costs and income: The next step is to define and calculate the costs and income associated with the investment and operation of the project. Although this may be a relatively easy step for simple investments, the introduction of variables such as perennial crops, livestock breeding or other complex activities can create significant complications.
  5. Financing the investment: With costs and income calculated, the financing needs can be considered, both for investments and for the working capital needed for daily operations.
  6. Organization and investment management: The most profitable project will fail if it lacks an adequate structure for directing and managing operations. The identification of these management needs is an integral element in the formulation and evaluation effort.
  7. Evaluation and preparation of recommendations: With all the individual elements of formulation and evaluation gathered, the full project evaluation can be undertaken. However, the results obtained only tell part of the story. It is also necessary to identify the key factors that will influence the eventual success of the investment and to determine the risk that these factors may differ from those foreseen in the project design, affecting the success of the project.
  8. Preparation for the investment: Aspects to be considered here are: task scheduling, negotiations with the financing sources, supervision of construction and other activities essential to the execution of the project.

two principal types of operations are permitted by the software, the entry of project profiles (prepared in the field during Phase II) and the formulation of detailed project proposals. Electronic versions of the profiles can be used for management information purposes and can be sorted by key characteristics. They can also pass basic information automatically to the screens used for detailed formulation.

AIOU Solved Assignment 1& 2 Code 8617 Spring 2020

Q.3   Formulate a project with all its components.                                (20) 

What defines a project and what the elements of a project are. This will serve as a high-level overview and introduction to the world of project management.

What Is a Project?

project is a temporary endeavor undertaken to create a unique product, service, or result. Remember, a project is temporary and creates a unique deliverable. For example, a project example would be building a new school. It is temporary in nature and has a unique deliverable. One example of something that is not a project is servicing a vending machine. It is not unique as it will happen on a regular basis.

A project requires certain items to be completed, which are called tasks. A task can have numerous sub-tasks under it. Some tasks and sub-tasks are related or dependent on the start or completion of other tasks, while others are wholly independent.


Now that we know what a project is, let’s discuss the elements that make up the project, also called phases or process groups. There are five phases to every project. They are: initiate the project, plan the project, execute the project, monitor and control the project, and close the project. We will now look into each phase.

Initiating & Planning the Project

The initiation phase is where the project is authorized to begin. Depending on the project, this phase could also refer to an on-going project continuing on to another phase. Here, project objectives are created, the scope of the project is understood and defined, and all deliverables are identified. In the example of building a school, the initiation phase captures, at a high level, details like the size of the school, number of classrooms, entrances, cafeteria, and types and quantities of doors and windows. The project funding is discussed as an overall budget.

During the planning phase, the project management plan and project management documents (for example, schedule, financials, procedures, etc.) are created, reviewed, and approved. These materials provide the project management framework that helps keep the project moving forward. A major undertaking during the planning phase is the risk analysis, which covers the ‘what if’ scenarios and explores how those will be mitigated. The main purpose of this phase is to line up the strategy and methodology that allow the project manager to successfully complete the project. For our school, the schedule is developed, and a work breakdown structure (WBS) is created. Resource loading is planned; materials are estimated; permits are drafted, submitted, and approved; and insurance is acquired. Metrics such as earned value management (EVM) are adopted. If the organization uses an enterprise resource planning tool (ERP), then running transactions allows the project manager to quickly gain information.

Executing the Project

The execution phase is where the rubber meets the road, so to speak. During the execution phase, the project management team or leader produces the deliverables that were identified during initiation. Here, all of the processes and methodology that were created, reviewed, and accepted during the planning of the project come to fruition. The project manager ensures that all of the processes are being followed so that the deliverables meet project specifications. During this phase, a large amount of the budget is consumed.

A First Look at Project Management

Many of us have been a part of a project at one time or another. That project may have been for school, or perhaps it was for work. However, participating in a project is much different than actually leading a project. As a member of a project, you are usually assigned a task and then are only expected to focus on that one task. As a leader of a project, otherwise known as being a project manager, you have to oversee all aspects of the project and not just one task. This means knowing how to organize a project and manage it from start to finish. In this lesson, we will learn important project management components and characteristics that are essential for a project manager to successfully complete a project.

A Few Basic Definitions

Before we dive into the components and characteristics of project management, let’s define some key terms. Project management is the term used to describe the process of getting a project from start to finish. A project manager is the individual that is assigned to the task of overseeing the project and making sure it is completed.

Components of Project Management

Now, let’s look at some important elements of project management. The following are some essential components of a successful project.

  1. Initiating and assigning responsibilities: This is the first step of a project. In this step, you assign roles for the project while outlining its objectives. For example, if you were doing a school project, during this step you would decide what you hoped to accomplish with the project and decide what tasks each team member would be responsible for completing.
  2. Designing: This is basically deciding how you will achieve the objectives of the project. For instance, for your school project you might outline a schedule of when tasks need to be completed. If you were doing a business project, you might plan a budget and decide what resources you will need, like how many hours will be spent on the project.
  3. Implementing: This is the commencement of the project. When all of the planning and designing is completed, it is time to actually begin the tasks of the project.
  4. Monitoring and observing: As the project is taking place, it is important to make sure that it is on task and actually meeting the objectives set in the initiation step. This is also the step that identifies when changes need to be made if there is a problem. So if during your school project you realize that you forgot to address one of the assignment requirements, you might make a change to the project so that it matches your objectives.
  5. Wrapping up: When the project is completed, it is said to be closed. This means that you have successfully brought the project from start to finish. For example, this is the step when you hand in your assignment after it is completed.

Characteristics of Project Management

Now that we know the components of project management, let’s look at some characteristics. The following characteristics contribute to a successful project.

Project Initiation Phase

Projects are dynamic in nature, and they require endurance. You may have a plan in mind, but you can never fully know what roadblocks or hurdles you’ll hit along the way. Suppose you want to renovate your kitchen. Before your construction crew can start with the renovation, you need to ensure that proper initiation documents are in order. This is done at the outset of the project by creating a series of project documents that will keep everything on course and deliver exactly what the customer wants. These documents serve as a reference point throughout the project and also provide legal protection for both parties.

Project Initiation Documents

The documents discussed in this lesson reflect the progression from high-level need to a more detailed breakdown of work. The letter of intent, statement of requirements, statement of work and work breakdown structure all help to set clear expectations by avoiding misunderstandings and assumptions. They provide solid footing for the project’s life-cycle and ensure that businesses don’t stumble by a series of false starts. Let’s examine each of these documents in more detail.

Letter of Intent

You want to begin your renovation project as quickly as possible, but don’t have all of the details finalized. You secure the contractor and both parties sign a letter of intent. A letter of intent (LOI) is a document that summarizes the overall plans for the project and sets the major business terms between the buyer and seller. Its main purpose is to initiate the start of the business relationship between these parties. The preliminary conditions of the deal, such as cost, duration and contingencies, are presented. It’s typically an interim business contract that is superseded by an official contract.

There is debate as to whether or not the LOI is a legally binding document. In general, these letters are treated as non-legal documents and are simply meant to establish the relationship between the two parties. However, there have been cases where ambiguous language resulted in liability to the project manager. When drafting your letter of intent, be sure to use clear language that specifies its non-binding nature. This protects both parties and helps to avoid future ambiguity and confusion.

You may question the necessity of the letter of intent due to its non-binding or temporary nature. These ‘agreements to agree’ are essential to the project initiation phase because they provide the framework for future contract negotiations. They are good-faith measures that reflect the commitment to the project by both parties.

AIOU Solved Assignment 1& 2 Code 8617 Spring 2020

Q.4   Download a project from the internet and critically analyze different aspect of the project. To what extent these are helpful in the finalization of a workable project.       (20)

 Engaging in a business project without considering the impact of business decisions on different areas of organizational operations is a very risky way to operate a company. In order to protect finances and market position, a business should adopt a project appraisal process before undergoing large capital projects. This process must take into account a wide scope of a business’s interests and possible changes arising from a project’s completion.

Financial Analysis

Most project appraisal processes place a heavy emphasis on considering the financial aspects contributing to and evolving from a project. One way many organizations choose to weigh the financial aspects of a project during the appraisal process is by completing a comprehensive cost-benefit analysis. Other financial aspects of a project important during the appraisal process generally include net present value, payback period and scenario analysis, which analyzes multiple future scenarios which could result from a project.

Strategic Analysis

After the financial impact, a project’s most important aspect to consider is how well the project goals fit with the strategic goals of the overall organization. Specifically, a company should look at how a project will impact a company’s risk factors, especially any risks pertaining to international business, as well as the impact this project will have on future, related projects. The type of project often affects which aspects of strategic analysis during project appraisal become more important. Projects meant to expand an organization place more focus on how a company’s business will develop through the project, while minimizing risks and weaknesses becomes more important for projects that are long-term in scope.

Other Factors

The more impact a project is expected to have on an organization’s operations, the wider the scope of analysis should be during a project appraisal. A wider scope of analysis that takes into account limiting factors which aren’t necessarily under the organization’s control can better protect business interests. For example, railway planning boards would want to consider roadway maps and other transportation systems to ensure that a rail transportation project will be effective. Other aspects of project appraisal that deserve attention include commercial market analysis, analysis of technological needs, political factors and social consequences in the project’s surrounding area.

Appraising a Project

An organization should prepare for the appraisal process by defining a project’s objectives and alternatives as well as the perception thresholds affecting consumer behavior, or the level of business activity that will change a consumer’s perception about an organization. A project team should also attempt to forecast consumer reactions to estimate the future business impacts of project completion. Proper project appraisal analyzes each business impact separately and measures the benefits against the risks and costs to determine whether the project is worthwhile.

Time Management

In addition to traditional evaluations of scheduling charts and report estimates against actual performance, time management assessments may include giving project team members surveys and questionnaires to assess the effectiveness of project scheduling and time-scale performances. Project feedback questionnaires may also evaluate the strengths and weaknesses with time management techniques used to develop project milestones and schedule other project components.

Project Budgets

Traditional budget tracking techniques include variance analysis, which assesses differences between budget estimations against final project expenditures. The 360-degree appraisal supplements may solicit additional feedback from project team members related to budget allocations. Additionally, a project-end survey can be developed to provide a cost-benefit analysis that evaluates the perceived value or rate of return for each element of the project budget.

Team Performance

When auditing project staffing, a key question is whether the people assigned to the project were qualified. This includes the project manager and project team members. Project team members can complete a group assessment and self assessment related to key project performance areas. For example, a self assessment can give project members an opportunity to evaluate the effectiveness of project assignments. Also, project end-users, customers, clients and vendors can give feedback on team member performance based on their contact with the project manager and project team members.

Vendor Management

Vendor performance is also a part of a project audit. The level of vendor involvement in a project will vary widely from one project to another. There may be a formal set of procedures in place related to vendor performance expectations. If so, develop a performance metric survey from the procedures that can be completed by the project manager to evaluate timeliness, quality and costs factors. Also, project team members with direct contact with certain vendors can provide input on vendor performance.

Project appraisal methodologies are methods used to access a proposed project’s potential success and viability. These methods check the appropriateness of a project considering things such as available funds and the economic climate. A good project will service debt and maximize shareholders’ wealth.

Net Present Value

A project’s net present value is determined by summing the net annual cash flow, discounted at the project’s cost of capital and deducting the initial outlay. Decision criteria is to accept a project with a positive net present value. Advantages of this method are that it reflects the time value of money and maximizes shareholder’s wealth. Its weakness is that its rankings depend on the cost of capital; present value will decline as the discount rate increases.

Payback Method

A company chooses the expected number of years required to recover an original investment. Projects will only be selected if initial outlay can be recovered within a predetermined period. This method is relatively easy since the cash flow doesn’t need to be discounted. Its major weakness is that it ignores the cash inflows after the payback period, and does not consider the timing of cash flows.

Internal Rate of Return

This method equates the net present value of the project to zero. The project is evaluated by comparing the calculated Internal rate of return to the predetermined required rate of return. Projects with Internal rate of return that exceed the predetermined rate are accepted. The major weakness is that when evaluating mutually exclusive projects, use of Internal rate of return may lead to selecting a project that does not maximize the shareholders’ wealth.

Profitability Index

This is the ratio of the present value of project cash inflow to the present value of initial cost. Projects with a Profitability Index of greater than 1.0 are acceptable. The major disadvantage in this method is that it requires cost of capital to calculate and it cannot be used when there are unequal cash flows. The advantage of this method is that it considers all cash flows of the project.

AIOU Solved Assignment 1& 2 Code 8617 Spring 2020

Q.5   Analyze the basic difference between project appraisal and evaluation.   (20)

Guidance on appraisal and evaluation techniques and procedures. The guidance is relevant to all organisations to which the Scottish Public Finance Manual (SPFM) is directly applicable, including bodies sponsored by the Scottish Government (SG).

Key Points

  1. Appraisal and evaluation are essential parts of good financial management. The general principles should apply to any proposal – whether project, programme or policy related – with implications for expenditure / use of resources.
  2. The effort that should go into appraisals and evaluations and the detail to be considered is a matter of judgement.
  3. Appraisal within the SG involves the preparation of Pre-Expenditure Assessments (PEAs). PEAs must be undertaken for any proposal with significant resource implications.


  1. Appraisal and evaluation are essential parts of good financial management. The general principles should apply to any proposal – whether project, programme or policy related – with implications for expenditure / use of resources. The effort that should go into them and the detail to be considered however is a matter of judgement. For example, proposals involving modest expenditure / use of resources may merit less detailed appraisal and evaluation. Good appraisal entails being clear about objectives, thinking about alternative ways of meeting them, estimating and presenting the costs and benefits of each potentially worthwhile option, and taking full account of risks. Good evaluation after the event entails many of the same processes, together with a desire and willingness to look for better ways of doing things.


  1. Appraisal is normally the starting point for any proposal – but it is not a standard procedure. It is an ordered, but flexible, general approach to the analysis of proposals with implications for expenditure / use of resources. It should include not only economic analysis, but also other important information such as financing implications, arrangements for project management and plans for subsequent monitoring and evaluation. The principle of proportionality should be applied, so the scale of the appraisal will vary depending on the scale of the proposed project and its complexity, but an appraisal should normally include the following steps:
  • define the objectives;
  • consider a range of options;
  • identify, quantify and value the costs, benefits, risks and uncertainties associated with each option, including considerations of public private partnerships and the scope for shared services arrangements with other public bodies, optimism bias and distributional implications;
  • analyse the information;
  • decide what evaluation should be performed at a later stage; and
    present the results.

Project appraisal management is an essential stage of any project, regardless of its nature, type and size. This stage represents the first point of the pre-planning or initiation phase. Without having appraised a project, it is financial and technically unreasonable to proceed with further planning and development. No matter whether you are going to purchase a new car (e.g. my neighbor’s project), constructing a building, improving a business process, updating a network system, conducting a marketing campaign, building a garage, or any other initiative, you should make a preliminary assessment and appraisal of your undertaking in order to be sure that that you will do a required and necessary change to your environment.

 Concept Analysis

The first step requires you (as a project appraiser or analyst) to conduct a range of analyses in order to determine the concept of the future project and provide the Decision Package for the senior management (project sponsors) for approval. It means you need to carry out the problem-solution analysis that determines the problem/need to be addressed and the solution to be used to handle the problem. The solution should analyzed by cost-effectiveness and feasibility (various project appraisal methods and techniques can be used). Also you will need to identify stakeholders (those people and organizations involved in or affected by the problem and/or solution) and analyze their needs (how they relate to the problem and/or solution). After all, you must develop a decision package that includes the problem statement, the solution proposal, the stakeholder list, and the funding request. This package will then be submitted to the sponsor for approval (or rejection). If the sponsor approves the project concept then you can proceed to the next step.

Concept Brief

At this step you must develop a summary of the project concept to define the goals, objectives, broad scope, time duration and projected costs. All this data will be used to develop the Concept Brief. You need to develop a project statement document that specifies the project mission, goals, objectives and vision. Then you create a broad scope statement that specifies the boundaries, deliverables ad requirements of your endeavor. Finally you make a preliminary schedule template that determines an estimated duration of the project, and then develop a cost projection document based on cost estimates and calculations.

Statement of Requirements (SOR)

You show the contractor a picture of your dream kitchen complete with granite counter-tops and high-end appliances. From that picture, you will need to outline and define the exact requirements that will go into your kitchen. The contractor asks for specific detail regarding your requirements including size, dimension, material, etc. The statement of requirements (SOR) is a document that defines the project’s requirements. Even though the project is driven by customer or product owner needs, the SOR is a collaboration between all stakeholders. Its purpose is to define, analyze and document each of the project’s requirements.This helps to set the right expectations and achieves a common understanding among all parties. Effective communication among stakeholders ensures project resources are aligned to the business needs. The SOR should include, but is not limited to, the following items:

  • Stakeholder register
  • Requirement descriptions
  • Who is responsible for each deliverable
  • Process for handling changes
  • Requirements that show where each requirement originated from.

It is important to elicit high-quality requirements in the project initiation phase because they will inform the work that will be included in the statement of work as well as the work breakdown structure. Changes to requirements should be updated in the SOR as they occur.

Statement of Work (SOW)

After requirements are defined, the contractor will need to know what to complete for the remodel. You explain that you entertain regularly, and your current kitchen wasn’t large enough to accommodate your needs. You’re somewhat of a chef and have always dreamed of cooking in a gourmet kitchen. You’ve consulted the City Planning Department, and you are permitted to expand by fifteen square feet. The statement of work (SOW) is a descriptive statement of the obligations and requirements to be delivered by the project. Its main purpose is to ensure that the buyer and seller have considered all the details of the project. It should include:

  • The business case
  • The project scope
  • Strategic recommendations

Project Organization

You use the Concept Brief to determine an organizational structure of your project. This structure should be developed and explained in the Project Organizational Chart. The document covers such issues as governance structure (roles and responsibilities), team requirements and composition, implementation approach, performance measures, other info. The idea behind the Project Organizational Chart is to create a visual representation of the roles, responsibilities and their relationships and what people/organizations are assigned to what roles and duties within the project.

Project Approval

The final stage requires you to review all the previous steps and gather them into a single document called the Project Appraisal. This document summarizes all the estimations and evaluations made, to justify the project concept and verify that the proposed solution addresses the identified problem. The financial, the cost-effectiveness and the feasibility analyses will serve as the methods of project appraisal to approve the project. The document is to be submitted to the snooper stakeholders (the customer, the sponsor) for review and approval. If the appraisal is approved, then the project steps to the next phase, the planning.

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