project planning and budgeting system

A CASE STUDY IN PROJECT PLANNING BUDGETING SYSTEM

(PPBS)

- Dr. V. THANIKACHALAM

PROJECT PROPOSAL IN TECHNICAL EDUCATION

• Development project in technician education- Capacity Expansion- Quality Improvement- Efficiency Improvement

CAPACITY EXPANSION

• New polytechnic• Govt. Model Residential Polytechnics• Women’s Polytechnics• Polytechnic for physically challenged people• Polytechnics for Hitech Programmes (ICT)

(Information Communication Technology, Instrumentation and Control Engineering, Industrial Automation)

CAPACITY EXPANSION IN THE EXISTING POLYTECHNICS

• New Departments• New Laboratories• New Workshops

QUALITY IMPROVEMENT

• Curriculum development / Revision / Improvement

• Faculty Development• Evaluation of Students

COMPONENTS OF FACULTY DEVELOPMENT• Faculty Development• Upgrading skills in

- Curriculum development / revision- Instructional design, and delivery - Measurement of student performance- Evaluation of student achievement- Leadership- Administration- Research- Publication- Ethics- Providing continuing education programmes- Providing consultancy services

EFFICIENCY IMPROVEMENT• Dynamism in day-to-day activities at the

Directorates / State Board of Technical Education• Quick response to the changes in the technology,

production, services.• Administrative commitment to bring excellence.• Flexibility in programmes• Electives based on the learners vision• Use of Internet• Networking with Industries.• Autonomy

FUNDS• Institutional Resources• Development funds from the public / doners• State funds• Central funds• Loans from Asian Development Bank• Loans from International Bank for Reconstruction and

Development (IBRD) (WB);• Bilateral assistance (British Common Wealth, British

Council, Canadian International Development Agency).• Swedish International Development Agency.• Colombo Plan• UNDP• UNESCO.

EDUCATIONAL PROJECT PROPOSAL

• Current needs / near future needs• Human Resources to meet the development• Gaps in requirements• Priority

PROJECT DEVELOPMENT• Programmes in Technician Education• Resource Estimation• Infrastructure• Human Resource (Faculty / Staff)• Equipment (Lab. / Workshop / Field)• Books and Journals• Instructional aids• Consumables.

DECISION MAKING

• Participation of Principals, Heads of the Departments, Lecturers

• Identification of Problems• Proposal of a number of solutions• Evaluation of solutions• Selection of the best solution.

CONSULTANTS?

PROJECT IMPLEMENTATION

• Consultants• Invitation to select the consultants• Profile of the consultants• Selection of consultants• Terms of References (TOR)• Invitation / Publication in the news papers

or web• Project agreement / contract.

REQUEST FOR PROPOSALS (RFP)

• Letter of Invitation• Information to Consultants• The Terms of References (T.O.R.)• The Proposed Contract.

PROJECT PROPOSAL

• Technical Proposal• Financial Proposal

TECHNICAL PROPOSAL

• Solution• Methodology• Innovations• Cost Effectiveness• Feasibility.

FINANCIAL PROPOSAL

• Economy• Project Cost• Unit Cost

?

SELECTION PROCESS

• Quality and cost-based Selection (QCBS) Process

• Quality Based Selection• Fixed Budget• Least-Cost Selection• Consultants’ Qualification (CQS)• Single Source Selection.

KEY ISSUES

• Evaluation of Proposals• Consideration of Quality and Cost.

EVALUATION OF QUALITY

• The consultants’ relevant experience for the assignment.

• The quality of the methodology• The qualifications of the key staff proposed.• Transfer of knowledge• The extent of participation of nationals among

key staff in the performance of the assignment.

HOW MUCH?

WEIGHTS

• Consultants’ specific experience: 0 – 10 points.• Methodology : 20 – 50 points.• Key Personnel : 30 – 60 points.• Transfer of Knowledge : 0 – 10 points.• Participation by nationals : 0 – 10 points

Total : 100 points

EVALUATION OF COST

• Evaluation of Quality• N.O.C. by Bank.• Publicly opening the cost estimate.• Correction of Arithmetical Errors.• Period of validity.

COMBINED QUALITY AND COST EVALUATION

• Quality - 80• Cost - 20

NEGOTIATIONS AND AWARD OF CONTRACT

• Discussions of the T.O.R.• Final T.O.R.• Agreed Methodology.• Description of Services.

SUBSTITUTION OF KEY STAFF

• Not allowed• Possible in undue delay in the

selection process• Substitution unavailable• Disqualification of firm• Costs – all costs.

PUBLICATION OF THE AWARD OF CONTRACT

• The names of all consultants who submitted proposals.

• The technical points assigned to each consultant.

• The evaluated prices of each consultant.• The final point ranking of the consultants.• The name of the winning consultant and the

price, duration, and summary scope of the contract.

PROJECT IMPLEMENTATION• Bank Guarantee for 10% of the Contract• Project Implementation Plan• PERT, CPM, etc.

PROBLEMS IN IMPLEMENTATION• Shortage of resource persons• Additional work• Changes in Technology• Disputes• Arbitration clause• Force majeure (Pleadable in excuse

of non-fulfillment of contract)

SETTLEMENT OF ACCOUNT• Receipts• Taxes• Return of Bank Guarantee• Settlement• Penalty• Rewards

AUDIT

• Internal audit• AG’s audit• External audit

PROJECT COMPLETION REPORT

• Innovations• Lessons Learned

EVALUATION OF THE IMPACT• What are the benefits to the learners?• What are the benefits to the society?• What are the benefits to the industry?

SUSTAINABILITY• Self-generating through internal

revenue generation• Minimal support from the

Government

THANK YOU!Your questions, please

vthani2025@yahoo.in