MPM 612: ADVANCED PROJECT INITIATION AND ANALYSIS/ APPRAISAL

CREDIT HOURS: 3
PREREQUISITE: NONE
COURSE DESCRIPTION
The understanding of project initiation and analysis is essential in the development of
individual career and organization change processes. The course on project initiation and
analysis can be considered as the first phase of project management and aims to develop
an advanced and in depth understanding of the principles and practices of project
identification and planning. It examines the types and objective of projects in public,
private, and civil society sectors and factors leading to project ideas by these sectors. The
course logically builds on the development of concept and body of knowledge on project
management, how and why the project ideas are initiated and selected,
COURSE OBJECTIVES
After successful completion of this course, the candidates are able to:
 Demonstrate an advanced understanding of key concepts, principles, and practice of
project identification and planning in three sectors,
 Capable of identifying project ideas, prioritizing them, and carrying out needs
assessment,
 Justify the importance of project appraisal for diverse investment projects,
 Demonstrate project market and demand analysis, technical analysis, and financial
analysis, and
 Critically analyze the internal and external environment in which the project will
operate, and
COURSE CONTENTS
1. Chapter One- Introduction to project Management
1.1. Key terms, Concept, scope, definition of project
1.2. Characteristics of project
1.3. Classification of project
1.4. Project Vs program
1.5. Project Vs Operation
1.6. Understanding development from project perspectives
1.7. An overview of project Cycle
2. Chapter Two- Project management body of knowledge
2.1. Linking projects with organizational mission, policies, and strategies
2.2. Project management knowledge areas: integration, defining scope, schedule, cost,
quality, resource, communication, uncertainity and risk, procurement, and
stakeholders
2.3. Data sources for project management
2.4. Types of projects in public, private, and business sectors
Chapter Three- Identification of project ideas
3.1.Factors leading to project ideas
3.2. Approaches of Project Idea Generation
o Situation analysis
o Stakeholders analysis
o SWOT analysis
o Problem analysis
o Objective analysis
o Alternative Tree Analysis or project selection
3.3.Carry out project needs assessment
3.4.Expected change
3.5.How and when the project to run?
3.6.Who to involve?
3.7.Preliminary analysis and screeing of project ideas
 3.8.Criteria and project rating matrix
3.9.Analyzing barriers of entry
3.10. Entrepreneurial skills
Four- Market and demand analysis
4.1.Situational analysis and specification of objectives
4.2.Collection of secondary information
4.3.Market survey, characterization of market, demand forecast, market plan etc.
Chapter Five - Technical analysis
5.1.Material inputs and utilities
5.2.Manufacturing process/technology (delivery of services)
5.3.Product mix (service mix)
5.4.Location and site
5.5.Machineries and equipments etc.
Chapter Six- Financial analysis
6.1.Cost of project and means of financing
6.2.Estimate of sales and production
6.3.Cost of production or service delivery
6.4.Break-even point
6.5.Project cash flow and balance sheets
6.6.Appraisal checklists of project financing organizations
Chapter Seven- Social Cost Benefit Analysis
7.1.Rationale for SCBA
7.2.UNIDO approach
7.3.Socio culture and demographic factors
7.4.Project cultural acceptability
7.5.Net benefit in terms of economic price
7.6.Saving Impact
8. Chapter Eight- Project appraisal approaches of multilateral, government, and financial
organizations
8.1.The World Bank
8.2.Private and public banks (Ethiopia)
8.3.Micro finance institutions (Ethiopia)
8.4.Ministry of Finance (Ethiopia)
8.5.Investment Commission (Ethiopia)
Assessment Scheme:
Individual Assignment 30%
Group Assignment 20%
Final examination 50%
TOTAL 100%
TEXT BOOK
Project Management Institute. (2017). A Guide to the Project Management Body of
Knowledge. USA: PMI.
REFERENCES
• Chandra, P. (1995). Projects: Planning, Analysis, Selection, Implementation, &
Review, Fourth Edition. New Delhi: Tata McGraw-Hill Publishing Company Limited.
• Grabowski, R., Shields, M. P., & Self, S. (2013). Economic Development: A
Regional, Institutional, and Historical Approach. USA: Taylor & Francis.
• James P. Lewis, J.P. (2006). Fundamentals of Project Management.
• Joseph, H. (no date). Fundamentals of Project Management.
• Lock, D. (2013). Project Management, 10th Edition. USA:Gower Publishing Limited.
• Mikkelsen, H., & Riis, J.O. (2017). Project Management: A Multi-Perspective
Leadership Framework. UK: Emerald Publishing Limited.
• Patzak, G., & Rattay, G. (2012). Project Management: Guideline for the Management
of Projects, Project Portfolios, Programs and Project-oriented Companies. Germany:
Linde International.
• Project Management Institute. (2017). A Guide to the Project Management Body of
Knowledge. USA: PMI.
• Steve, B., & Burke, R. (2014). Project Management Leadership.
• UNDP. (2009). Handbook on Planning, Monitoring and Evaluating for Development
Results. USA: UNDP.
• African Development Bank Group. (2006). Guidelines for Financial Management and
Financial Analysis of Projects.
• Chandra, P. (1995). Projects: Planning, Analysis, Selection, Implementation, &
Review, Fourth Edition. New Delhi: Tata McGraw-Hill Publishing Company Limited.
• Jack, W. (1993). Some Guidelines for the Appraisal of Large Projects. World Bank.
• James P., & Lewis, J.P. (2006). Fundamentals of Project Management.
• Joseph, H. (no date). Fundamentals of Project Management.
• Knowles, J.C., & Behrman, J.R. (2004). A Practical Guide to Economic Analysis of
Youth Projects. USA: World Bank.
• Lock, D. (2013). Project Management, 10th Edition. USA:Gower Publishing Limited.
• Mikkelsen, H., & Riis, J.O. (2017). Project Management: A Multi-Perspective
Leadership Framework. UK: Emerald Publishing Limited.
• Patzak, G., & Rattay, G. (2012). Project Management: Guideline for the Management
of Projects, Project Portfolios, Programs and Project-oriented Companies. Germany:
Linde International.
• Project Management Institute. (2017). A Guide to the Project Management Body of
Knowledge. USA: PMI.
• UNIDO. (1986). Guide to Practical Project Appraisal: Social Benefit-Cost Analysis in
Developing Countries. Vienna: UNIDO.