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• Good evening sir, good evening fellow teachers/ classmates.

Uhmmm.. For today I am assigned to discuss about Planning,

Appraisal & Design. So, Are you ready to listen classmates? Hehe
Ready na po ba kayo makinig? I don’t know if I got the correct
information on the internet about this topic :p so sana tama itong
mga nakuha ko.
• So, just to give you an overview about the topic.. Planning, Appraisal & Design is
actually a part of the Process of Integrated Project Planning and Management Cycle
or IPPMC - which is a useful way of understanding the different phases of a project as
it progresses. It also illustrates the relationship among phases of the project cycle, the
task within each phase and the overall dependency on central policy issues.
• The Project cycle is an ideal model, each task is dependent upon and influenced by
the others.
• The framework of IPPMC emphasizes the interdependent and cyclical nature of
• IPPMC is intended to be flexible model for analysis and observation

• So, IPPMC has 4 phases

• No. 1 is all About the topic that we’re about to discuss.. It deals about Planning,
Appraisal & Design of a project
• No. 2. is all about Selection Approval and Activation
• No. 3 is about Operation Control & Handover
• And lastly, the evaluation and refinement.
• So lets start with our topic. The Planning, Appraisal and Design.
• In this particular phase, there are three basic task. We have the Planning, Appraisal &
• First we have the Joint Task in Planning – the Identification and formulation takes place
in this stage.
• Planning.. It looks familiar to us, coz, we as teachers we do planning everyday, we do
plan in everyday’s lesson.. Tama po ba? Sabi nga nila, The key to a successful lesson
is in the planning, same in planning of a project.. all projects actually or even all
things comes up with planning whether it is a good planning or bad planning, of course
successful projects comes with a good plan whereas bad planning ended up with
unsuccessful projects. Same in our teaching profession, if we come up with bad lesson
plan what do we think would happen? Would it become successful? Siyempre hindi
po.. Tama po ba? So we have to be smart enough in planning or making a plan,
because planning is one of the critical aspect in making a project or in project
• All projects are different and the planning for each will be also different and it remains
flexible in many ways and can be revised during the progress of the project.
• We define planning in general as - is a written summary of what you hope to
accomplish by being in work and how you intend to organize recourse to meet your
goals or is the process of detailing goals and how they will be achieved. It often
involves collection of information, strategy formation, decision making and organization
of task
• or in Project Planning -it is a discipline for stating how to complete a project within a
certain timeframe, and usually with defined stages, and with designated resources.
 As mentioned earlier In planning of a project it has two joint task , the identification of the
project and formulation- Involves the actual conception or identification of a project. In simple
words project identification means a process of finding out the most
appropriate project from among the several investment opportunities. The project
identification is concerned with the collection, compilation and analysis of economic data for
the eventual purpose of locating .
 It should be done through brainstorming session by the team members. You will have several
ideas coming from the team members. This brainstorming session can be structured or
 Stuctured-means let’s say there are ten people in a team for brainstorming and each one of
them is coming up with an idea. So in structured brainstorming session each one will have to
come up with an idea.
 In Unstructured it is not necessary, anyone can give his/her own idea. They can have 20-30
ideas generated in brainstorming session.
 This is the creation of the idea of the project that born from the basic requirements of a
country. Meaning, there is a need for a project to satisfy a particular basic requirement.
• So ano ba yung mga example of projects at mga halimbawa na pwde pagmulan ng
projects? These are the following:
 Example, projects have something to do with agriculture, economic, health, education etc.
 And some of the major sources of projects are the following:
 Government departments or ministries
 Political parties
 Private entrepreneurs or multinational corporations
 International agencies
 After a project has been identified, its parameters must be
defined This is part of the formulation task ..(parameters are
time, cost, quantity and quality)
 The formulation of a project involves the development of a
statement in a broad terms which shows the objectives and
expected results of the project and provides an estimate of the
various resources required to achieve them.
 So after identifying the project, kasunod po nito ang formulation
na ng mga tasks para sa gagawing proyekto. So each team
member should be familiar with the broad strategy na gagawin,
sa objectives & other ingredients of the project. So anu-ano ba
mga halimbawa ng ingredients ng isang project. Ano ano ng
mga activities involved during planning? Or ano ano ba ang
mga steps in planning? So ito po
stakeholders can affect or be
affected by the organization's
(optional) Planning can be also approached actions, objectives and policies.
by asking a series of questions: Some examples of
key stakeholders are creditors,
directors, employees, government
• What actions are needed? (and its agencies), owners
(shareholders), suppliers, unions,
• By when are these actions needed? and the community from which the
• Who is going to do them? business draws its resources.
• What resources are required? A stakeholder is an individual, a
• What other work is not going to be done? group of people, or an organisation
who can affect or be affected
• How shall we know if it is working? positively or negatively by your
project. Before you can engage
project stakeholders, you first need
to identify them. Then you analyse
them to place them into appropriate
• One view of project planning divides the activity/ steps into the following:

 First, Setting goals or objectives (these should be measurable or should follow the smart rule)
 When articulating the project objectives you should follow the SMART rule:
• Specific – get into the details. Objectives should be specific and written in clear, concise, and
understandable terms.
• Measurable – use quantitative language. You need to know when you have successfully
completed the task.
• Acceptable – it should be agreed by or with the stakeholders.
• Realistic – realistic in terms of achievement. Objectives that are impossible to accomplish are
not realistic and not attainable. Objectives must be centered in reality.
• Time based – should meet the deadlines not durations. Objectives should have a time frame
with an end date assigned to them.
If you follow these principles, we’ll be or you’ll be certain that your objectives meet the quantifiable criteria
needed to measure success.
Once we have established a clear set of objectives or goals, It should be recorded in a Project Plan. It can
be useful also to include the needs and expectations of your stakeholders.
Now if we have completed the most difficult part of planning process: it’s time to move on and look or to
identify the project deliverables.
Identifying deliverables or Project Deliverables
 Using the goals/objective in the first step, create a list of things the project needs to
deliver to meet those goals.
 Specify when and how to deliver them each item. You can add the deliverables to the
project plan with an estimated delivery dates.
 Deliverebles… ano po ba yung deliverables?
 Deliverables – are those or something produced or provided as a result of a process.
It could be Results, Products or Services delivered in Project Development Life-cycle.
 The term deliverables is a project management term that's traditionally used to
describe the quantifiable goods or services that must be provided upon the completion of a
project. Deliverables can be tangible or intangible in nature
 The deliverable can be massive and tangible, such as a stadium or a factory. It can also be tiny
and intangible, such as a one-page marketing document. Project deliverables can be created
for both external and internal stakeholders. An example of the former would be the website
you make for a client
• After identifying deliverables.. Then plan the project schedule...
Project Product
Life Cycle Life Cycle
Project Product
Input Ouput
process management deliverables
deliverables Hardware
information Consultation
Documents Project Plan Project
Plan Tools Plan
Equipment Apps Reports
Assessment Results
Money Software Minutes
Software Test Results
• A Gantt Chart is a timeline that is used as a project management tool
to illustrate how the project will run. You can view individual tasks,
their durations and the sequencing of these tasks. View the overall
timeline of the project and the expected completion date
• A gantt chart is a horizontal bar chart that visually represents a
project plan over time. Modern gantt charts typically show you the
status of—as well as who's responsible for—each task in the
project. Gantt charts contain the following features: Start and end
dates for tasks.
 Planning the schedule – for every project it should have a start date and end date with
something to deliver by a certain date usually a product or a service or even an information.
 So in project or in planning the project schedule, we can create a list of task that needs to be carried out for
each deliverable identified in step 2. For each task determine the following:
 The amount of efforts (hours or days) required for completing the task
 The resource who will carry out the task
• Once you have established the amount of effort for each task, you can work out the effort
required for each deliverable, and an accurate delivery date. Update your deliverables section
with the more precise delivery dates.
• At this point in the planning, you could choose to use a software package such as Microsoft
Project to create your project schedule. Alternatively, use one of the many free templates
available. Input all of the deliverables, tasks, durations and the resources who will complete
each task. (ex. Gantt chart)
• A common problem discovered at this point is when you have an imposed delivery deadline
from the sponsor that is not realistic based on your estimates. If you discover this is the case,
you must contact the sponsor immediately. The options you have in this situation are:
• Renegotiate the deadline (project delay)
• Employ additional resources (increased cost)
• Reduce the scope of the project (less delivered)
• Use the project schedule to justify pursuing one of these options
• Making supporting plans
Supporting plans may include those related to: human resources, communication methods,
and risk management
Human Resource Plan
Identify, by name, the individuals and organisations with a leading
role in the project. For each, describe their roles and responsibilities
on the project.
Next, specify the number and type of people needed to carry out the
project. For each resource detail start dates, the estimated duration
and the method you will use for obtaining them.
Create a single sheet containing this information.
Communications Plan
Create a document showing who is to be kept informed about the
project and how they will receive the information. And, The most
common mechanism is a weekly or monthly status report, describing
how the project is performing, milestones achieved and the work
you've planned for the next period.
Risk Management Plan
Risk management is an important part of project management. Although often overlooked, it is
important to identify as many risks to your project as possible and be prepared if something bad
Here are some examples of common project risks:
 Time and cost estimate too optimistic
 Customer review and feedback cycle too slow
 Unexpected budget cuts
 Unclear roles and responsibilities
 No stakeholder input obtained
 Not clearly understanding stakeholder needs
 Stakeholders changing requirements after the project has started
 Stakeholders adding new requirements after the project has started
 Poor communication resulting in misunderstandings, quality problems and rework
 Lack of resource commitment
Risks can be tracked using a simple risk log. Add each risk you have identified to your risk log;
write down what you will do in the event it occurs, and what you will do to prevent it from
happening. Review your risk log on a regular basis, adding new risks as they occur during the life
of the project. Remember, if you ignore risks, they don't go away.
Congratulations. Having followed all the steps above, you should have a good project plan.
Don't forget to update your plan as the project makes progress, and continually measure
progress against the plan.
Why project planning is important?
• Good planning leads to successful projects whereas lack of planning
will always contribute towards an unsuccessful project.

• A poor plan will never deliver good results.

Knowledge of how to plan the project is also extremely important to project completion. Without a
plan, the project is like a sailboat lost in a typhoon; it has no particular direction and no way to get to
a certain point even if the direction were provided. Therefore, knowing how to plan is a key concept
to any type of project management task.
What are the basic steps in project planning?
• Step 1: Identify & Meet with Stakeholders. ...
• Step 2: Set & Prioritize Goals. ...
• Step 3: Define Deliverables. ...
• Step 4: Create the Project Schedule. ...
• Step 5: Identify Issues and Complete a Risk Assessment. ...
• Step 6: Present the Project Plan to Stakeholders.
What are the objectives of project planning?
• In brief, project management objectives are the successful
development of the project's procedures of initiation, planning,
execution, regulation and closure as well as the guidance of
the project team's operations towards achieving all the agreed upon
goals within the set scope, time, quality and budget standards.
What is project planning process?

• The project planning process is the main tool used to ensure that
tasks are completed in timely manner. A project may best be defined
as a venture taken to ensure that a deliverable is completed within a
specific timeframe and that certain criteria or objectives are met.
12 common types of planning
Mission Vision Resourcing
Outlining your purpose and direction Obtaining resources and assigning tasks
Goals Scheduling
Deciding what you want to achieve Scheduling tasks according to factors such aS
Objectives dependencies and your
Objectives are steps that get you to your goals. For example, the business calendar
objective to pass a test that gets you closer to a goal of graduating Risk
with Identifying and treating risks to your plans
a degree. Tactical Planning
Measurement Quick planning cycles that may skip directly to
Deciding upfront hovw you will measure or evaluate goals and identifying tasks.
objectives. Designed to respond to fast moving situations that
Strategies represent
Methods for achieving objectives. In many cases, multiple strategies opportunities or risks.
are Contingency Planning
developed and planning involves a decision making process of Planning for alternative scenarios. For example.
Comparing and selecting strategies. planning what you will
Tasks do if a merger falls apart at a late stage in the
Breaking strategies into completable work items. process.
Estimating time and cost, often at the task level
• In short po, in planning doon po lahat makikita ang mga plano sa
pagbuo o sa gagawing proyekto.
• Just like making lesson plans, we have plan for a day’s lesson, we are
planning what to do inside the class.. we have the objectives,
procedures down to application and evaluation etc. similar in making
plan in projects. We are doing plans.
• In short planning plays a vital role in everything we do particularly in
making projects. Projects will be failed or will become unsuccessful if
having lack of planning.
• And now we are on the second task which is the Feasibility analysis and Appraisal.
• After the identification & formulation task/phase or the planning .. The Project appraisal follows
resulting in the preparation of feasibility report/analysis (FR) Kapag na identify na natin ang gagawing
project Before conducting appraisal, preliminary project analysis should be done.. What are the
example of that.. One of this is a feasibility study/report or analysis..
• Conducting a feasibility study is one of the key activities within the project initiation phase. It aims to
analyze and justify the project in terms of technical feasibility, business viability and cost-effectiveness.
The study serves as a way to prove the project’s reasonability and justify the need for launch. Once the
study is done, a feasibility study report (FSR)/feasibility analysis should be developed to summarize
the activity and state if the particular project is realistic and practical.
• What is feasibility analysis? Ano po ba ang feasibility analysis/study –
• (Feasibility analysis is the process of determining if the project can be implemented)
• A Feasibility Study Report (FSR) is a formally documented output of feasibility study that
summarizes results of the analysis and evaluations conducted to review the proposed solution
and investigate project alternatives for the purpose of identifying if the project is really feasible,
cost-effective and profitable. It describes and supports the most feasible solution applicable to
the project.
• What is the Purpose of a Project Feasibility Study. The purpose behind a project feasibility
study is to know the different variables involved with your business venture or a project and
how it will be accepted on the open market along with who will be the target audience
• Feasibility study – example
• A hospital, for example, aiming to expand, i.e., add an extension to the building, may perform a
feasibility study. The study will determine whether the project should go ahead. The people
carrying out the study will take into account labor and material costs
The feasibility analysis attends to critical aspects of the project
that have something to do with the following;

Technical-including manpower and technological requirements

Economic Justification- such as the cost and benefits
Administrative/Managerial – including external linkages and
internal organization
Environmental-including present baseline data and impact of
those data
Social/Political-including demographic data and social needs.
Financial-for funding needs and sources
Each of these six studies should answer five interrelated questions:

• Is the proposed project responsive to urgent present or anticipated social

and economic needs?
• • Will the project as planned adequately serve or fulfill the intended
purpose without harming the environment?
• • Will the benefits of the project to both society and the economy be
justified by the costs?
• • Should various technical alternatives be studied to optimize or maximize
the cost effectiveness of the project without sacrificing its quality or
• Do the feasibility studies provide sufficient baseline criteria and measures
to establish a checklist for subsequent project implementation and
How do you write a project feasibility study?
Let's view the steps in detail.
Write Project Description. At this step, you need to collect background
information on your project to write the description. ...
Describe Possible Solutions. ...
List Evaluation Criteria. ...
Propose the Most Feasible Solution. ...
Write Conclusion.
What are the steps in feasibility study?
Six Essential Feasibility Study Steps
The written report generated at the conclusion of the feasibility
study can help move a team into the presentation phase of the project
cycle. Moving readers through the following feasibility study steps can
clarify questions about the study’s recommendations.
At a high level:

Feasibility study determines if the desired requirement can be done.

If the answer is no, then likely the project is canceled.

Appraisal tends to look into the cost / impact analysis. At the

appraisal stage usually feasibility is already done. Unless the cost to
reward ratio is significantly skewed, usually the project is a go.

The risk/reward ratio helps investors manage their risk of losing

money on trades.The risk/reward ratio measures the difference
between a trade entry point to a stop-loss and a sell or take-profit
order. Comparing these two provides the ratio of profit to loss, or
reward to risk
Asking Different Questions
Appraisals and market feasibility studies are designed to answer different questions:

The question answered by a market feasibility study is “If I build it, will they come?”

The appraisal is designed to answer the question, “What will it be worth?” The appraisal is an estimate of the value of a
property as of a certain date, while a market feasibility study measures expected market response. Because they
measure different aspects of the market, each type of study needs a different methodology.
How do you start a feasibility study?
Conducting a Feasibility Study
• Step One: Conduct a Preliminary Analysis. ...
• Step Two: Prepare a Projected Income Statement. ...
• Step Three: Conduct a Market Survey. ...
• Step Four: Plan Business Organization and Operations. ...
• Step Five: Prepare an Opening Day Balance Sheet. ...
• Step Six: Review and Analyze All Data. ...
• Step Seven: Make "Go/No Go" Decision.
What are the parts of feasibility study?
In my opinion there are basically six parts to any effective Feasibility Study:
The Project Scope, The Current Analysis, Requirements, The Approach,
Evaluation , Review. Any feasibility study should contain the following
major parts; 1. Market Study.
• What is the need for feasibility study?
• What is a feasibility study? As the name implies, a feasibility study is
used to determine the viability of an idea, such as ensuring a project
is legally and technically feasible as well as economically justifiable. It
tells us whether a project is worth the investment—in some cases, a
project may not be doable
• How do you write a feasibility study?
• A business feasibility study is a process that tests your idea's viability.
It helps you to get a handle on whether your idea will fly or if it's likely
to flop. Feasibility studiescan also serve as a basis for creating a ​small
business plan and a marketing plan, both of which you'll also need
going forward.
• What is feasibility study of a project?
• An analysis and evaluation of a proposed project to determine if it (1)
is technicallyfeasible, (2) is feasible within the estimated cost, and (3)
will be profitable.Feasibility studies are almost always conducted
where large sums are at stake. Also called feasibility analysis. See also
cost benefit analysis
• What is importance of feasibility study?
• The feasibility report will look at how a certain proposal can work in a
long-term basis or endure financial risks that may come. It is also
helpful in recognizing potential cash flow. Another important purpose
is that it helps planners focus on the project and narrow down the
• And now, let’s move on with the appraisal of the project ..
• Anyway what is an appraisal or project appraisal?
 is the analysis of a proposed project to determine its merit and
acceptability in accordance with the established criteria.
 This is the final step before project is agreed for financing. It checks
that the project is feasible against the situation on the ground, that
the objectives set remain appropriate and that costs are reasonable
• Critical Examination of the project from all aspects is called appraisal
• Carried out in Two stages
• Internal Appraisal
• External Appraisal
• Why project appraisal is needed?
Project appraisal is an important activity to evaluate the key factor of
the project to check the viability of a project proposal. We can use
various Appraisal methods and tools to accept or reject the project
Project appraisal is an essential tool for judicious investment decision-making, full
and complete data and information need to be documented/presented, and analyzed in the FR so
as to facilitate the appraisal authorities to carry out:

Process in Project Appraisal

• Initial Assessment
• Define problem and long-list
• Consult and short-list
• Evaluate alternatives
• Compare and select Project
• What is the main objective of project appraisal?
 Assessment of a project in terms of its economic, social and financial
 To decide whether to Accept or reject the Project
 It is a tool to check the viability of a Project Proposal

• The main objective of project appraisal is to ultimately decide whether the

project proposed/sponsored in the Feasibility Report has to be accepted for
Capital Investment, or be rejected.
What are the steps/process of project appraisal?
Process of project appraisal
The process of project appraisal consists of five steps and they are –
initial assessment,
defining problem and long-list,
consulting and short-list,
developing options, and comparing and selecting project.
The process of appraisal generally starts from
 the initial phase of the project. If the appraisal process starts from an early stage, then the
company will be in a better position to decide how capital should be spend in the project
and also it will help them to make the decision of not spending too much or stopping a
project that is not economically viable.
• Types of Project Appraisal and aspects
• Project Appraisal is process of assessing the following types of the
Appraisal Aspects. And these Key aspects of appraisal will be
evaluated before committing a Project.
• Appraisal factors are evaluated by a personal who is not involved in
the preparation of the Project Proposal.

• And here are the aspects of project appraisal: projects are examined
from the marketing, financial, economic,
institutional/organizational/managerial, environmental and social
point of view

Financial PROJECT Technical

Appraisal APPRAISAL Appraisal

Ecological Economic
Appraisal Appraisal
And what are the issues in market and demand
MARKET APPRAISAL appraisal that we should assess or to look at in: here
are some of the issues
Is one of the major areas of introducing of
any products or services. In that case, must MARKET APPRAISAL ISSUES
be considered this things before launching
in the market. (So, if you are coming up with • Past and current demand trends
a new products or services you need to talk • Past and current supply position
about who are the customers, who are • Production possibilities and constraints
people requiring that particular product or • Imports and exports
service) • Nature of competition
What would be the aggregate demand of • Cost structure
the proposed product or service? In that • Elasticity of demand
particular market • Consumer behavior
• Motivation
What would be your market share of the • Attitudes
project under appraisal or what would be • Preferences
the market share of the existing • Requirements
competitors. What is the market share of • Distribution Channels
existing market leader?
market share – is the percentage that a company has of the total sales
And the possible pricing options. for a particular product or service

Whether prerequisites for the success of the TECHNICAL APPRAISAL

project considered? ISSUES
• Preliminary test and studies
Good choices with regard to location, size, • Availability of raw materials, power and
process, machines etc. other inputs
• Optimal scale of operations
• Choice of suitable production process
• Choice of appropriate machines and
In technical appraisal you have to look at the • Effluents and waste disposal
technical specifications. Let’s say you are going to • Proper lay out of plant and buildings
bore well, what could be the possible technical • Realistic work schedules
specifications you should look at. What would be • Socially acceptable technology
the depth , diameter, process. What would be the
machines to be used etc.
So you should look at the Engineering aspects of
the project.
• Social cost is the total cost paid for by the society due
ECONOMIC APPRAISAL to the activities of a firm. It is the sum of all the
external cost and private cost. Social benefit is the
So according to you what do you think are the economic total benefit arising due to the production of goods and
factors? What would be the economic factors? So services by a firm.
Economic factors may include points like • Shadow prices are most commonly used in cost-
benefit analyses where some elements of the
• Impact of the project in the society -whenever you come analyses cannot be quantified by reference to a
up with the project it might affect society negatively or market price or a cost. The maximum price that a
positively, but we/you should affect positively more business should be willing to pay for one additional
• Social-cost benefit analysis- what are the benefits of the unit of some type of resource
project to the society, what are the cost that the society is
paying for that project.
• Impact of project on distribution of income in society –
whether the income would be distributed equally the
different members of the society which generally never
happens, but at the end of the day, the project should
help the society
• Impact on level of savings and investment in society-
• Direct economic benefits and cost in term shadow prices
• Impact on fulfilment of national goals
(1) Self sufficiency
(2) Employment and
(3) Social Order
So all this points are come on the economic appraisal..
A project may causes environmental impacts in many ways.
Will the project have any adverse effects on the environment with regards to air, water, noise, vegetation and human life.
Whenever you go for a project you need to look at:

• Impact of project on quality of

 Air
 Water
 Noise
 Vegetation
 Human Life
 Has the analysis identified positive and negative impacts of the projects
 Is there any environmental management plan
 Is there adequate fund for environment management plan

• Major projects ,such as these, cause

environmental damage.
• Power plants
• Irrigation Schemes
• Industries like bulk drugs, chemicals
and leather processing
Some of the financial factors are:
• Whether the project is financially viable? What is the cost of the project?
• Servicing debt -
• Meeting return expectation
• Investment and phasing of the total cost
• Means of financing or funds/ whether you would be investing from your
pocket/whether you are taking loan, or are you going some other sources.
• Break even point – is the minimum capacity utilization beyond which a firm
starts making profit from its operation.
• Cash flow in the Project –what would be the cash outflows in a projects and
what would be the cash inflows in the project. Is the project profitable?
• Is the Investment worthwhile? With regards to:
 Net present value/worth – the difference between the present value (at an
appropriate discount rate) of benefits and present value of costs
 Internal rate of return – is a discount rate which just equates discounted
benefits to discounted cost. If IRR exceeds from the discount rate, the
Project is accepted (otherwise rejected)
 Pay back period – is the length of time required to recover the investment.
 In How many years/months you will get the investment
• Level of risk
• What is NPV?
• Net present value (NPV) is the difference between the present value of cash inflows and
the present value of cash outflows over a period of time. NPV is used in capital
budgeting and investment planning to analyze the profitability of a projected investment
or project
• What is IRR?
• Internal rate of return (IRR) is the interest rate at which the net present value of all the
cash flows (both positive and negative) from a project or investment equal zero. Internal
rate of return is used to evaluate the attractiveness of a project or investment.
• What is Payback Period?
• Payback period in capital budgeting refers to the period of time required to recoup the
funds expended in an investment, or to reach the break-even point. For example, a
$1000 investment made at the start of year 1 which returned $500 at the end of year 1
and year 2 respectively would have a two-year payback period
• the length of time required for an investment to recover its initial outlay in terms of
profits or savings."if insulation costs $110 and saves $55 a year, its payback period would
be two years"
Administrative/Management Appraisal
• Now what are the points do we think would be in the
Administrative/Management Factors?
• Administrative/Management Factors means human resources.. Do this
Administrative/Management is a part of human resource management?
• Administrative/Management Factors – can be let’s say how many
employees do you want.. What should be their qualification, how are you
going to recruit them, what would be your selection process.. And what
kind of .. (Let say) leaves you would be given to your employees. What is
your promotion policy. All this things would come in the
Managerial/Administrative Factors .
Legal Appraisal
• Now what are the legal factors?
• Legal factors are the factors generally you need to look at legal issues,
for example you are coming up with the project. Lets say a new
school or building.. Then for them you need to acquire, lands from
those people who are living in that area, let say some person has filed
suit in court of law. So how you are coming up with your answers
against with that particular law suit. So these are the couple of legal
factors. So You need to look at warrant case, any compensation to be
paid. Who would be the lawyers who will be representing your
organization and similar things. So once you select the project, the
next point is you need to appraise the project. And we have seen
several appraisal criteria/aspects. -
What can Project Conclusions
Appraisal Deliver?
 Appraisal justifies spending money on a The successful
project implementation of the
 Appraisal is an important decision project lies on the
making tool. effectiveness of the project
 Appraisal lays the foundations for
Project appraisal helps to
choose the best projects.
What is the difference between appraisal and
feasibility study?
• Feasibility study determines if the desired requirement can be done.
If the answer is no, then likely the project is canceled
• Appraisal tends to look into the cost/impact analysis. At the appraisal
stage usually feasibility is already done. Unless the cost to reward
ratio is significantly skewed, usually the project is go!

The risk/reward ratio helps investors manage their risk of losing

money on trades. ... The risk/reward ratio measures the difference
between a trade entry point to a stop-loss and a sell or take-profit
order. Comparing these two provides the ratio of profit to loss, or
reward to risk
• Project appraisal follows the project formulation phase resulting in the preparation of feasibility report (FR).
• The main objective of project appraisal is to ultimately decide whether the project proposed/sponsored in the FR has to be
accepted for Capital Investment, or be rejected.
• The initial appraisal of the project sponsored also aims at, if need be, recommending the steps or ways in which the project can be
redesigned or reformulated with a view to better technical, financial, commercial and economic viabilities; Also mitigate or
minimize any adverse on negative environmental impact.
• Thus, project appraisal is an essential tool for judicious investment decision-making, full and complete data and information
need to be documented/presented, and analyzed in the FR so as to facilitate the appraisal authorities to carry out:
• (i) Demand analysis - to establish convincingly the need for the project,
• (ii) Check on optimal location,
• (iii) Technical analysis - to determine whether the specification of technical parameters are sound and realistic,
• (iv) Financial analysis - to assess whether the project proposal is financially viable,
• (v) Commercial analysis - to establish the soundness of product or service specifications, marketing plans, organization structure
(both project and for operation),
• (vi) Socio-economic analysis - to determine whether the project is worthwhile to implement from the point of view of the
nation/city that is society at large and the economy as a whole, and
• (vii) Environment and physiographical and ecological thresholds analysis - which is concerned with the identification of these
constraints, and make the evaluation of chances of success (or otherwise) which the project may have to face (these constraints).
Internal consistency and external compatibility are two basic attributes of a viable project.
Development oriented administration and forward looking management may have under consideration, at any juncture or time, a
number and variety of projects, resources being limited, a choice has to be made. Project appraisal is warranted to assess the
material attributes of an investment proposition and to confirm the implications the project will pose for the sponsoring authorities
(system) as well as for systems with which it will have to co-exist after its implementation.
What Is The Importance Of Project Appraisal?
• The object and, therefore, the importance of a project appraisal is making an analysis to see whether the
project is viable. It is vital to know whether a project is technically feasible and whether it is going to be
an economic liability or not.
• A project appraisal is an important part of any project and should be taken seriously because a lot rests on it.
The effects of a project appraisal are long reaching and have very definite long term effects because of
the capital investment that is always required in any project.
• Once a decision has been made to go ahead with a project, it is irreversible. Even if, through
some catastrophic event, the project has to come to an unpredicted halt, the investment has been made so
all could be lost. These high expenditures can be critical, not just for that particular project but for the health
and survival of the entire business.
• Making an effective project appraisal is no easy task because there are can often be unforeseen
circumstances (though a good project manager should be able to cover as many eventualities as possible). It
is also not easy to measure all costs and the potential benefits of a project. This high degree of uncertainty
could undermine the confidence of a project so it is vital that the appraisal is as thorough as it possibly can
• It is also important when it comes to a project appraisal to be realistic about the amount of capital that is
going to be tied up, and the length of time that the project is going to take. If this is not done, it is possible
that the business may suffer real hardship because it was unprepared for the financial constraints placed
upon it.
• Why is project appraisal necessary?
• Project appraisal is an important activity to evaluate the key factor of
the project to check the viability of a project proposal. We can use
various Appraisal methods and tools to accept or reject the project.
For example, economic or financial appraisal analysis, Excel
Templates and other decision techniques.
• What are the tools of project appraisal?
• Tools of project Analysis and Evaluation. Regular analysis and
evaluation should be done to make a project successful. There are
may tools to use in evaluation and analysis of project. They are: cost
benefit analysis, capital budget and financial analysis
• What does Project Appraisal mean?
• Project appraisal is the process of assessing, in a structured way, the
case for proceeding with a project or proposal, or
the project's viability. It often involves comparing various options,
using economic appraisal or some other decision analysis technique.
• What are the types of project appraisal?
• Appraisal of projects can be done by many ways, but the most
common of them are financial and economic appraisal. ... Other than
these two types of appraisal, there are also other types of project
appraisal which include technical appraisal, management or
organizational appraisal and marketing and commercial appraisal.
• What are the elements of project appraisal?
• Here are the Key objectives of the Appraisal Process of a Project:
Assessment of a project in terms of its economic, social and financial
viability. Decide to Accept or reject a Project.
• Project Appraisal - ANALYSISTABS.COM
Importance of Project Appraisal
• Project Appraisal also a very important part because it determines the
effectiveness of the project and it makes sure that you have chosen
the right kind of project for implementation, and all the subsequent
success of the project and its right implementation is then govern by
this particular stage.
• Project appraisal is a very necessary part of preparing a project
feasibility report.
Now lets move on the final task in the 1st
phase of Project Life Cycle – the design.
 What is design? project design is the last task within this phase of the
integrated project cycle.
 Project design is critical function.. because
 In this stage of the project, the decisions about how to manage and
govern are made
 The project design includes everything from who is responsible for
completing the project to a description of the project, its goals, outcomes
and objectives.
 It describes when these goals, outcomes and objectives will be reached,
and the major deliverables, products or features that will be completed.
 The project design also estimates the budget and outlines how to monitor
and evaluate progress.
• Design task also includes the preparation of blueprints and
specifications for construction, facilities and equipment
• So project design is one of the first responsibility ng mga project
managers, dito sa stage na to, gaya ng mga sinabi jan sa
slides, dito sila nagdedesisyon o nagbibigay ng mga detalye
kung paano imanage at igovern ang isang project.
there are 9 STEPS TO PROJECT
1. State the Vision
2. Identify the Problem
3. Assess Resources
4. Establish Project Goals
5. Select a Project Strategy
6. Plan for Contingency
7. Design an Evaluation Plan
8. Budgeting
9. Write The Proposal
What’s the vision?
• What is your vision for the project? Dapat meron kang vision statement,
which envisions a problem that needs resolution. That means clarifying the
reason for the project. Ano ba yung vision statement? It is a formal
document that states the project’s potential. Ano ba ang purpose ng
pasusulat ng vision statement? The purpose of writing vision statement is
to present a project to potential investors o sa mga stakeholders or
sponsors to show and explain to them the viability of the projects at kung
ano ang mga benepisyo nito at bakit ang project design idea is worthwhile.
Vision statement is not a long, detailed document. You can have a short
one, yung idealistic vision in terms of the outcome of the project; after all
this is how you sell project. So paint a picture of a project’s success and
place it in a larger context. A good vision statement demonstrates the
benefits which will received after project accomplishment.
What’s the Problem?
• Anong problema mo? Hehe. So What’s the problem? Para
masuportahan mo ang vision statement document, kelangan
mong ma identify ang problem that needs to be solved.
What is the design stage of a project?
Project design is an early phase of the project where a project's key
features, structure, criteria for success, and major deliverables are all
planned out. The point is to develop one or more designs which can be used
to achieve the desired project goals.

What is the goal of the design phase?

The purpose of the Design Phase is to transform the requirements into
complete and detailed system design specifications. Once the design is
approved, the Development Team begins the Development Phase.

What do we do in the design phase?

The following tasks are performed during the Design Phase. ... The business
organization, roles and procedures for designing this system/application are
articulated. The Design Document is a deliverable of the Design Phase.
Documents from the previous phases are revised as necessary during
the Design Phase.
• What is Project Design in Project Management?
• Project design is an early phase of the project where a project's key
features, structure, criteria for success, and major deliverables are all
planned out.
• The point is to develop one or more designs which can be used to
achieve the desired project goals. Stakeholders can then choose the
best design to use for the actual execution of the project.
• The project design phase might generate a variety of different
outputs, including sketches, flowcharts, site trees, HTML screen
designs, prototypes, photo impressions and more.
What is Project Design?

Design is an iterative and social process -- the evaluation of choices and outcomes early-on, before
committing to a course of action.

By rapidly exploring possibilities -- through dialogue, analysis, and prototyping -- awareness is built and better
results are achieved. And as things change (they always do, don't they?) a good design is easily adjusted.

Project Design is the capability to model, explore, and optimize complex projects and programs -- for teams
to design their projects -- before committing to action.