module 3_ project design and plan
TRANSCRIPT
-
8/14/2019 Module 3_ Project Design and Plan
1/44
1
200
-
8/14/2019 Module 3_ Project Design and Plan
2/44
2
PROJECT MANAGEMENT TRAINING PROGRAM
FRAMEWORKModule Topic Highlights Learning
ResourcesEstimatedMinimumTimeRequirements
1 Introduction toProjectManagement
A. Key learning principlesB. Introductions and logisticsC. What is a project?D. Elements of a projectE. Project management toolkit and
case studyF. Personal experience with projectsG. Individual commitment to learning
TrainersGuide andTraineeGuide areresourcesavailable tosupport theentiretrainingprogram
1.5 hours
2 Project
ProposalsA. Project proposalsB. Evaluating alternatives
C. Getting approvals
Project
Proposal Tool
1.5 2 hours
3 Project Designand Plan
A. Project CharterPlan first, then do!What is a project charter?Key elements of a project charter
ProjectCharter Tool
Case Study
30 hours
B. Team CreationEstablishing Project Team valuesRoles and ResponsibilitiesConducting Project Team meetings
ProjectCharter Tool
Team Tools
1.5-2 hours
C. The Project PlanIntroduction to the Detailed ProjectPlanUsing the MilestonesSetting TasksCompleting the Project Plan
ProjectCharter Tool
DetailedProjectPlanningTool
1-2 hours
D. BudgetingIntroduction to cash budgetsCreating a budget
Cash BudgetTemplate
BudgetDetailWorksheetTemplate
2 hours
E. Risk ManagementAnticipating and Mitigating Risks
Risk MatrixTool
1 hour
4. ProjectImplementation
A. Implementing the ProjectTasking and TrackingScope managementRisk Monitoring
ProjectCharter Tool
DetailedProjectPlanningTool
1.5 hours
B. Change Management 2 hours
-
8/14/2019 Module 3_ Project Design and Plan
3/44
3
The Human Dynamics of Change andTransitionLeading changeBuilding change into your project plan
5. PostImplementationReview
A. Evaluating projects
B. Lessons learnedC. Project Management training
evaluation
PostImplementation Review
Tool
1.5 hours
Menu of Icons :
Discussion question. Can be facilitated by the trainer in a large group, or byfacilitators in smaller groups. Use the group discussion questions as anopportunity to reinforce that we learn from our positive and negativeexperiencesand that we can learn from others experiences (shared-learning).
Toolkit. Refer to a specific tool in the Project Management Toolkit.
Key Learning. Focus on ensuring this key learning is understood.
Individual Exercise: A reflective, individual exercise facilitated by thetrainer. Allow trainees to consider personal experiences and individual leadershipobjectives.
Activity: An activity to be facilitated by the trainer, including for example, areview of a project management tool with a case study question, a cash budgetactivity etc.
Additional Resources: Refer the trainee to additional information (e.g.books, articles, materials on www.canadabridges.com website or on otherwebsites, videos).
http://www.canadabridges.com/http://www.canadabridges.com/http://www.canadabridges.com/http://www.canadabridges.com/ -
8/14/2019 Module 3_ Project Design and Plan
4/44
4
MODULE 3: PROJECT DESIGN AND PLAN
A. Project CharterPlan first, then do!What is a project charter?Key elements of a project charter
Project CharterTool
Case Study
40 hours
B. Team CreationEstablishing Project Team valuesRoles and ResponsibilitiesConducting Team Meetings
Project CharterTool
Team Tools
1.5-2 hours
C. The Project PlanIntroduction to the Detailed Project PlanUsing the MilestonesSetting TasksCompleting the Project Plan
Project CharterTool
Detailed ProjectPlanning Tool
1-2 hours
D. Budgeting
Introduction to Cash BudgetsCreating a budget
Cash BudgetTemplate
Budget DetailWorksheetTemplate
2 hours
E. Risk ManagementAnticipating and Mitigating Risks
Risk Matrix Tool 1 hour
MODULE 3A: PROJECT CHARTER
A. Project CharterPlan first, then do!What is a project charter?Key elements of a project charter
Project CharterTool
Case Study
30 hours
Pre-Project
Stage
1. Project
Design
and Planning
2. Plan
Implementati
on
3. Post
Implementati
on
-
8/14/2019 Module 3_ Project Design and Plan
5/44
5
Why? What?
How?
Do!
Monitor
Revise
Review
Celebrate
MODULE 3A PROJECT CHARTER: PLAN FIRST, THEN DO!
Discuss how a project is started how ideas move from abstract to tangible.Review the stages of a project from design of the business case for theproject...alternatives need to be explored and choices made on the best options.
This was discussed in Module 2.
Reinforce that the focus of training on project management is to plan first, thenact. Taking the time (and resources) to plan is critical. The Project Charterrequires a lot of work before you can move to project implementation.
Brainstorming Discussion:Following on the discussion in Module 1F aboutpersonal experiences with projects, BRAINSTORM examples of projects (healthcare
and non-healthcare) that have not been successful. What do you believe made the
porjects unsuccessful? E.g. budget deficits, lack of resources, lack of clear goals,
lack of leadership? Record answers on flip chart.
Introduce and explain the brainstorming technique from the toolkit .
MODULE 3A PROJECT CHARTER: WHAT IS A PROJECT CHARTER?
Powerpoint presentation: What is a Project Charter?
Use the powerpoint to guide your teaching. The Training Guide encourages you to
use lots of activities, questions, discussions and to record key ideas on flipcharts.
The powerpoint is only a guide to training.
What is a Project Charter?
-
8/14/2019 Module 3_ Project Design and Plan
6/44
6
Formal agreement between the project manager and the key stakeholders
Tool for managing the expectations of the project sponsor and stakeholders
Why should I write a Project Charter?
All future decisions in the project should be evaluated for alignment to theProject Charter
More likely to get approvals and resources with a formal written ProjectCharter
Discussion: What are the differences between a Project Proposal andProject Charter?
Project Proposal Project CharterPurpose: Suggests that a projectshould be initiated
Purpose: Defines how a project will becompleted
Often led by sponsor or manager Led by Project ManagerContains a high level estimate ofcosts
Contains a detailed budget
Suggests resources and what/whomay be required
Names resources and gives detailed timerequirements
Requires review and approval for
proposal by Project Sponsor
Requires signoff by Project Sponsor (and
sometimes key stakeholders)Approval to proceed to detailedplanning
Approval to proceed with project andbudget
MODULE 3A PROJECT CHARTER : KEY ELEMENTS
Toolkit: Go to the Project Management Toolkit and pull out the Project
Charter Tool. Looking at the tool, review its key elements.
Project Purpose :
Describe the opportunity or problem the project will address
Provide background on why the project has been considered
Identify the key needs the project will meet
-
8/14/2019 Module 3_ Project Design and Plan
7/44
7
ACTIVITY #1: Creating a Project Purpose: Create a project purpose forthe Triage Centre using the Case Study
Key Elements of the Project Charter : Roles
CASE STUDY: The Mulkulla Mother-Child Hospital (MCH) is located inMulkulla, a coastal city located in the Hadhramout region of Yemen. TheMulkulla MCH is being established as a teaching hospital associated withthe adjacent University of Mulkullas medical school.
At present, there is an out-patientclinic at the Mulkulla MCH thatcurrently operates 12 hours/day. The leadership team at the hospitalwants to expand the operating hours of the out-patient clinic to 24/hoursper day. The public is really putting pressure on the hospital to open
24/hours/day.In addition to out-patient services, the Mulkulla MCH has plans in place toestablish a 10-bed pediatric emergency ward.
To achieve these objectives, the leadership team at the Mulkulla MCH hasdecided to set up a triage station(sorting station) to help the MCH staffrespond to the patients needs. If a triage station is set up in the hospital,the MCH staff can assess patients arriving at the hospital and ensure thatthe right patients get the right treatment at the right time.
Initially, doctors at the Mulkulla MCH can do the assessing of patients. But,the leadership team ultimately can train nurses to do this triaging with
focused training (5 days) and support. Nurses wont need to know how todiagnosis the y will need to decide how sick, how quick? Residentpediatric doctors can teach these nurses.
The idea to set up a triage centre has been discussed with the MCHleadership team and there is enthusiasm for this project. Yet fundingparameters are not clear and a Project Sponsor has not been clearlyidentified. The leadership team is uncertain about how to proceed.
Mulkulla MCH leadership team and front-line workers have met to discussthe potential project. There is some confusion and lots of questions: Howwill the triage centre work? Will patients being admitted for maternal care
be assessed at the triage centre? Who should conduct the assessments ofin-patients?
And, there is concern: existing systems will need to be enhanced: systemsfor admission, transfer, referral and discharge and filing systems must bein lace to make a tria e centre work smoothl .
-
8/14/2019 Module 3_ Project Design and Plan
8/44
8
The Project Sponsor
He or she is responsible for approving whether the project can proceedand approve when a deliverable has been met
The Project Manager
The primary point of contact for stakeholders
Responsible for ensuring that the project is completed on time and onbudget
Key Elements of the Project Charter : Budget
A budget includes all costs that will be incurred as a result of the project
Costs that are incurred as a result of operations start- up are also included
ACTIVITY #2: Would these Items be Included in your Project Budget inthe Triage Centre Case Study?
1. Project Managers Salary
2. Medical Supplies
3. Computer for reception
4. Project Sponsors Salary
5. Travel expenses
6. Computer software
7. Administrative Expenses
8. Ambulances
Key Elements of the Project Charter : Success Criteria
Define the elements that are critical to the addressing the issues that startedthe project and creating value
E.g.:
Decrease patient wait times
Decrease cost of operations
Refer back to these success criteria to assist in resolving issues and conflictover scope, budget etc in the future
-
8/14/2019 Module 3_ Project Design and Plan
9/44
9
Key Elements of the Project Charter : Scope
This is one of the most important parts of the Project Charter
Adding or eliminating too many items will make it impossible for you tosucceed
Consider which things really need to be part of the project and which are justnice to have
Limiting your scope to those actions that are absolutely necessary toachieving your goal will make it much easier to succeed
Ask yourself If we dont do this will we still get the results we need?
Key Elements of the Project Charter: Assumptions
Typically assumptions, if true would be favourable to the project (e.g. if thisproves to be true, the project benefits)
These include things like:
Staff resources will be available in a timely fashion
Building approvals are not required
Existing computers could be used for the project
Use these assumptions to consider contingencies or options in case yourassumptions do not prove true
Key Elements of a Project Charter : Dependencies
Those activities or events upon which your project depends on to besuccessful
Dependencies may include things such as:
The completion of a related project
The completion of earlier projects as part of a larger program
The availability of technology
Key Elements of a Project Charter : Constraints
-
8/14/2019 Module 3_ Project Design and Plan
10/44
10
Constraints are typically not favourable to the project if this thing provesto be true, the project suffers
Constraints may make your project harder to manage or impact your ability todeliver
Constraints on a project would include such things as:
Equipment order lead times are unpredictable
Computer resources can only be accessed weekdays
No overtime payment is permitted
Your project plan should incorporate these restrictions and address ways tomanage or mitigate them
Key Elements of a Project Charter: Milestones
Accomplishments, results, deliverables and events used to measure overallproject progress
Milestones should be specific and measurable We can say definitively if theyhave been achieved
Milestones typically mark the end of a phase such as design, development orconstruction
ACTIVITY #3: How would you classify the items in the list below:Milestone or Task in the Triage Centre Case Study?
1. Project Plan Completed
2. Design approval received
3. Fence built around construction zone
4. Communication session for nurses
5. Construction completed6. Electrical Installed
7. Training Delivered
-
8/14/2019 Module 3_ Project Design and Plan
11/44
11
Key Elements of a Project Charter:Resources
Who do you need to be able to complete your project?
Consider subject matter experts (such as computer, construction etc) andother team mates you might require. Will there be any new hires or
consultants required?
Name Position ProjectResponsibilities
Current or New % of Time
Key Elements of a Project Charter: Risks
Every project has risks. By identifying risks early, you can ensure youminimize them.
Risks should span the entire project and include everything from resourcingissues, to government and regulatory changes, to budget risks, toconstruction delays and more
Risks are usually measured according to their likelihood and their severity.
Risks are discussed in detail later in this module.
Ensure that all questions are asked, and answered. It is critical thattrainees understand the Project Charter.
-
8/14/2019 Module 3_ Project Design and Plan
12/44
12
MODULE 3B: TEAM CREATION
B. Team Creation
Establishing Project Team valuesRoles and ResponsibilitiesConducting Project Team meetings
Project CharterTool
Team Tools
1.5-2 hours
MODULE 3B TEAM CREATION : ESTABLISHING PROJECT TEAM VALUES
SMALL GROUP ACTIVITY #1: Talk about the characteristics and valuesof a highly-effective team using brainstorming and consensus techniques from theteam toolkit.
Objectives:
Discuss individual experiences from your best teams Using the consensus technique, develop a list of the characteristics of effective
teams
Introduce the team tools from the toolkit and practice brainstorming andconsensus techniques
Suggested Process for small groups:
1. Read over the exercise to ensure everyone understands.
2. Facilitator to introduce the team tools in the toolkit.2. Select a recorder to collect information generated by your team.
3. Individually, take one minute and think about the best team of which you
have ever been a member.
4. Individually, take four minutes and jot down whatever comes to mind that
makes you think of this as your best team.
- What did your team do?- How did it work together?- What did you feel?- What characteristics of this team stand out?
5. Use brainstorming technique and list individual responses (use
Flipchart in each small group).
-
8/14/2019 Module 3_ Project Design and Plan
13/44
13
6. Use consensus technique and list what you think are the five most
importantcharacteristics ofeffective teamsas experienced by your team
members.
7. Share your five most important characteristics and any questions about
consensus with the larger group.
LARGE GROUP ACTIVITY #2: Highlight the Characteristics of an EffectiveTeam: point to each of the values on the circular chart and explain in a little moredetail. Refer to the materials in the trainees guide.
Clear Purpose The vision, mission, goal, or task of the team hasbeen defined and is now accepted by everyone.
Informality The environment tends to be informal, comfortable, andrelaxed.
There are no obvious tensions or signs of boredom.
Participation There is much discussion and everyone is encouragedto participate.
Listening The team uses effective listening techniques such as
questioning, paraphrasing, and summarizing to get outideas.
Civilized Disagreement There is a disagreement, but the team is comfortable with thand
shows no signs of avoiding, smoothing over, or suppressingconflict.
Consensus Decision For important decisions, the goal is substantial butnot necessarily
unanimous agreement through open discussion ofeveryones
ideas, avoidance of formal voting, or easycompromises.
Open Team members feel free to express their feelings onthe tasks
Communication as well as on the groups operation. There are fewhidden
-
8/14/2019 Module 3_ Project Design and Plan
14/44
14
agendas. Communication takes place inside ofmeetings.
Clear Roles and There are clear expectations about the roles played byeach
Work Assignments team member. When action is taken, clear
assignments are madeaccepted, and carried out. Work is fairly distributed.
Shared Leadership While the team has a formal leader, leadership functionsshift from time to time depending upon the circumstances,the needs of the group, and the skills of the members. Theformal leader models the appropriate behavior and helpsestablish positive norms.
External Relations The team spends time developing key outside relationships,mobilizing resources, and building credibility with importantplayers in other parts of the organization.
Style Diversity The team has a broad spectrum of team player types.
Self-Assessment Periodically, the team stops to examine how well it isfunctioning and what may be interfering with itseffectiveness.
LARGE GROUP ACTIVITY #3: After the review of the characteristics of an
effective team, discuss the use of the brainstorming and consensus
techniques. Did your team follow the rules set out in the Toolkit?
MODULE 3B TEAM CREATION: TEAM ROLES AND RESPONSIBILITIES
KEY LEARNINGS: Share the chart below to identify some of the most likelycauses of team dysfunction. Assure trainees that using the tools, and beingproactive in designing and managing project teams, can avoid or minimize theserisks. Emphasize the importance of defining the roles and responsibilities for eachmember of the team.
Identify the Team Selection Worksheet in the Toolkit as a tool that can helpin identifying members of the Project Team.
-
8/14/2019 Module 3_ Project Design and Plan
15/44
15
Individual Exercise: Think of a project team that you worked on in
the last two years. Answer the following questions:
1. What was your role on the project team? What duties and activities were you
responsible for? How did you contribute to the accomplishment of the teamsobjectives?
2. What did you need from others in order to do your job the way you liked to?Be specific, e.g. information, mutual support, communication, careerdevelopment, organization training, workload priorities:-
What: From Whom:
3. What did you need to know about other team members jobs and expertise tohelp you do your own work?
What: From Whom:
Alternative Small Group Exercise: If the group would prefer more activity, divide
the trainees into small groups of 5-7 per team. Give each team some building
materials (e.g. childrens blocks, LEGO blocks, or ask them to use natural items like
branches and rocks, and ask each team to create a boat or another specific
structure in 20 minutes. After the building session, ask them to answer the questions
above.
KEY LEARNINGS: Make the connection from the past to the present to enable
team members to see how they can be successful in their new project team roles.Clarify the objectives as:
MODULE 3B TEAM CREATION: CONDUCTING PROJECT TEAM MEETINGS
SMALL GROUP ACTIVITY #4: Establishing Team Meeting Norms using
Brainstorming and Consensus Techniques from the Toolkit
Suggested Process:
1. Read over the exercise to ensure that everyone understands.
-
8/14/2019 Module 3_ Project Design and Plan
16/44
16
2. Select a recorder to collect the information generated by your team.
3. Use Brainstorming and develop a set of five norms by Consensus
that your team will use to govern how team members will perform during your
team meetings (use Flipchart).
4. Review your Team Meeting Norms. Are they clear and specific? (If
not, change them.)
5. Bring your norms to the facilitator for discussion.
MODULE 3C: THE PROJECT PLAN
C. The Project Plan
Introduction to the Detailed Project PlanUsing the MilestonesSetting TasksCompleting the Project Plan
Project CharterTool
Detailed ProjectPlanning Tool
1-2 hours
MODULE 3C THE PROJECT PLAN: INTRODUCTION TO THE DETAILED PROJECT
PLAN
The Detailed Project Plan should be developed after the Project Charterhas been completed, and the Project Team has been identified.
-
8/14/2019 Module 3_ Project Design and Plan
17/44
17
Review the tool and explain its purpose:
The purpose of the Detailed Project Plan is to identify specific milestones
and tasks, and assign timing and accountability to each task.
The Detailed Project Plan tells us who is going to do whatby when.
The Detailed Project Plan is used throughout the life of the Project as a tool
to track progress on each task.
Pre-Project
Stage
1. Project
Design
and Planning
2. Plan
Implementati
on
3. Post
Implementati
on
Why? What?
How?
Do!
Monitor
Revise
Review
Celebrate
-
8/14/2019 Module 3_ Project Design and Plan
18/44
18
KEY LEARNINGS: Use this chart to discuss the detailed Project Plan
Phases
Project PlanPhases
Description
PLAN During the Planning Phase, the Project is describedin detail.
In this phase, the Project Manager will create:
The Project Proposal
The Project Charter
The Project Team
The Project Budget
The Detailed Project Plan
The Risk Assessment
DO This phase of the project is about putting the ProjectPlan into action.
The Tasks that were identified in the Project Plan areassigned to individuals on the Project Team, to becompleted by a certain date.
The Project Manager monitors the Project Teamsprogress, and adjusts resourcing or tasks as required inorder to meet specific milestones.
REVIEW This phase of the project occurs after the projectactivities are complete.
In this phase, the Project Monitor will complete the Post-Implementation Review.
-
8/14/2019 Module 3_ Project Design and Plan
19/44
19
MODULE 3C THE PROJECT PLAN: USING THE MILESTONES
Discussion Question: The Project Manager will use the timing and high-levelmilestones described in the Project Charter to identify key milestones in theproject. What is a milestone? What are some examples of milestones in the PLAN
phase...and in the DO phase? Why is it critical to track milestones?
Use a flipchart to record answers:
Definition: Milestone
A Milestone indicates the end of a group of tasks or the
completion of a key deliverable in the Project. A Milestone is
used to determine if the Project is on track, according to the
Detailed Project Plan
Milestones in the PLAN Phase might, for example, include:
Project Charter Complete
Project Budget Complete
Project Team in Place
Milestones in the DO Phase might, for example, include:
Requirements Identified
Process Design Complete
Physical Space Secured
Physical Space Upgrades Complete Health Care Staff Training Complete
Facility is Ready to Treat Patients (Go Live)
CASE STUDY ACTIVITY #1: Review the Milestones identified in theProject Charter for the Mulkulla Mother-Child Hospital Triage Centre(Module 3A). Ensure that the Milestones address:
Physical changes (building, equipment, computers, etc.) that must
occur
Regulatory or government approvals that are required
Hiring, training or other human resources activities that must occur
Are there any Milestones that have been missed? Insert all Milestones into the
Detailed Project Plan
-
8/14/2019 Module 3_ Project Design and Plan
20/44
20
Once the Milestones are identified for a given Project, they should be placed
in the order in which they will occur
In the Detailed Project Plan, the Project Manager will assign dates to the
Milestones
These dates establish the timing for the entire project, and set the dates forthe beginning, and end, of the Project
Some dates associated with Milestones may be mentioned in the Project
Charter; all dates for completion of milestones should be consistent in all
Project documents
MODULE 3C THE PROJECT PLAN: SETTING TASKS
There are a number oftasks that will need to be accomplished to meet
each Milestone. Use a flipchart to explain tasks and their importance.
Definition: Task
A Task is an activity that needs to be accomplished within a defined
period of time
Tasks can be described at a very detailed level, and any task might
have several more detailed tasks, or sub-tasks associated with it
Tasks should be included that address the Risks identified in the
Risk Matrix Tool: refer to that document when identifying tasks
E.g.: Task: Determine training requirements for nursing staff
Subtask 1: Survey nurses to determine currentpractices
Subtask 2 : Speak to doctors and ask for their inputon nurses training requirements (i.e. what trainingdo the nurses need to be successful?)
Subtask 3: Review new processes, and compare tocurrent processes to identify gaps in knowledge
Subtask 4: Based on gaps, identify trainingrequirements for nurses
-
8/14/2019 Module 3_ Project Design and Plan
21/44
21
Discussion Question: Once Tasks have been identified and are in the
appropriate order in the Detailed Project Plan, why is important that each Task be
assigned to an individual?
The responsibility for completing each Task should be assigned to a
single individual, rather than a group, wherever possible.
Other people may need to be involved or consulted in order to
complete the Task, but only one person should be named as
responsible.
Project Managers may choose to involve the Project Team in this
exercise in order to encourage buy-in and ownership over individual
tasks.
Discussion Question: Now, timing should be assigned to each Task. To
determine timing, what should you think about? What can we do if we find that
the Tasks cannot be accomplished by the date assigned to the Milestone? Why
would a Project Manager involve the Project Team when assigning timing to each
Task?
When we think about timing, we need to consider:
Dependencies: Which tasks must be complete before another can
start?
Resources: Can the same people accomplish all of the tasks theyre
assigned to within a particular period of time?
Duration: How long will it take to complete each task?
Project Managers may find that the Tasks they have identified cannot be
accomplished by the date assigned to the Milestone. In this case, the Project
Manager can:
Add resources to the Project Team to accomplish the Tasks faster
Move the Milestone date
Remove Tasks that are not critical
Project Managers may wish to involve the Project Team in assigning timing to
each Task
This will ensure that those who are responsible for completing the Tasks
agree that they can be completed within the given time frame
-
8/14/2019 Module 3_ Project Design and Plan
22/44
22
MODULE 3C THE PROJECT PLAN: COMPLETING THE PROJECT PLAN
Once the Detailed Project Plan is completed, it should be shared with:
The Project Team
The Project Sponsor
Copies of this document have been issued to:
Version
Name Title DateIssued
Initials
Note that the Detailed Project Plan may change as the Project progresses,and dates and resources change
Each version of the Detailed Project Plan should be saved; when changes
are made, it is important to be able to refer back to the original Project Plan to
determine how timing has changed
The Detailed Project Plan is now ready to be used to monitor progress
against tasks!
-
8/14/2019 Module 3_ Project Design and Plan
23/44
23
MODULE 3D: BUDGETING
D. BudgetingIntroduction to Cash BudgetsCreating a Budget
Cash BudgetTemplate
Budget DetailWorksheet
Template
2 hours
MODULE 3D BUDGETING: INTRODUCTION TO CASH BUDGETS
Key Learning: Introduce the concept of cash budgets
Discussion Question: Start a discussion to see if people know what a budget is.
Discuss the importance of budgeting to ensure that a project is well planned and
sufficient funding is in place.
Powerpoint presentation: Introduction to Cash Budgets
Use the powerpoint to guide your teaching. The Training Guide encourages you to
use lots of activities, questions, discussions and to record key ideas on flipcharts.
The powerpoint is only a guide to training.
-
8/14/2019 Module 3_ Project Design and Plan
24/44
24
ACTIVITY: Review the Introduction to Cash Budgets with Examples in theTrainee Workbook. Go though the examples with the students and have themindependently complete Example 2 to ensure they understand.
-
8/14/2019 Module 3_ Project Design and Plan
25/44
25
Introduction to Cash Budgets With Examples
A Cash Budget is an estimation of the cash inflows and outflows for a business or
organization or individual for a specific period of time. Cash budgets are often usedto assess whether the entity has sufficient cash to fulfill regular operations and/or
whether too much cash is being left in unproductive capacities. It also helps to plan
for special projects and equipment expenditures.
A cash budget is extremely important, especially for small businesses, because it
allows a company to determine how much credit it can extend to customers before
it begins to have liquidity problems.
For individuals, creating a cash budget is a good method for determining where
their cash is regularly being spent. This awareness can be beneficial because
knowing the value of certain expenditures can yield opportunities for additionalsavings by cutting unnecessary costs.
For example, without setting a cash budget, spending US $1 a day on a small item
seems fairly unimpressive. However, upon setting a cash budget to account for
regular annual cash expenditures, this seemingly small daily expenditure comes out
to an annual total of US $365, which may be better spent on other things.
A surplus budget means there is extra cash at the end of a period, while a
balanced budget means that the cash inflows equal the cash outflows. A deficit
budgetmeans cash outflows will exceed the cash inflows. Cash Budgets are usually
compiled and re-evaluated on a periodic basis. Adjustments are made to budgetsbased on the goals of the budgeting organization. In some cases, budget makers are
happy to operate at a deficit, while in other cases, operating at a deficit is seen as
financially irresponsible.
EXAMPLE #1: GROUP ACTIVITY
Lets use a simple example to show the basics of preparing a cash budget.
a) Your hospital has US $2,750 in its bank account.b) Your hospital receives US $4,125 per month.c) You want to buy a vehicle for the hospital which will cost US $13,750d) You can arrange to pay US $6,875 this month (after some government funding
comes in) and US $6,875 next month.
What will be the balance of the hospitals bank account after you have paid for thevehicle? How will you fund this cash deficit?
-
8/14/2019 Module 3_ Project Design and Plan
26/44
26
EXAMPLE #1
This Month Next Month
Beginning Balance 2,750 0
Cash Inflow 4,125 4,125
Total Cash Inflow6,875 4,125
Cash Outflow6,875 6,875
Ending Balance0 (2,750)
EXAMPLE #2: INDIVIDUAL ACTIVITY
a) You are running an out-patient clinic and you need to install a new telephonesystem. This will cost US $15,000. The telephone company will provide thisnew system and you will need to pay for it over the next several months.
b) Currently you have US $7,000 in your clinic bank account.c) Your clinic receives US $5,000 each month in user fees.d) You have agreed to pay US $3,000 per month for the new telephone system,
starting now (Month 1).
In addition, you will be able to sell your old telephone equipment and you will
receive US $6,000 in 2 months time (Month 3). At that time, you will pay all the
money you get from the sale of the old telephone equipment towards the newtelephone equipment, in addition to your normal US $3,000 monthly payment.
What will your End Balance be at the end of Month 4?
Month 1 Month 2 Month 3 Month 4Beginning Balance 7,000 9,000 11,000Cash Inflows
Monthly User Fees5,000 5,000 5,000
Sale of Old Equipment 6,000Sub Total 12,000 14,000 22,000Cash Outflows 3,000 3,000 9,000
-
8/14/2019 Module 3_ Project Design and Plan
27/44
27
Ending Balance 9,000 11,000 13,000
Individual Exercise #1: Student Cash Budget
Introduce the Exercise #1 Scenario (Student Cash Budget) for students tocomplete an individual exercise in creating a cash budget.
Use a handout or work on EXCEL to complete the template on the Student BudgetExercise.
After students have finished, share the answer in a handout (or show from yourcomputer and project onto a screen).
Then handout the answer (or show on the screen).
Lets complete a Cash Budget for the next 6 days. Todays Date is Saturday 23rd
October.
The template has already been set up for you with the days of the week, startingwith Saturday.
The following information will help you to complete the budget accurately.
The amount of cash in your wallet is US $50
On Monday your father will give you US $1,650 as your weekly allowance
Your friend, Assim, owes you us $100. He has promised to pay you half of thismoney on Tuesday. He will repay the rest of the money next week.
-
8/14/2019 Module 3_ Project Design and Plan
28/44
28
You spend US $5 every day in the cafeteria at your college. You attend collegefrom Saturday to Wednesday
Your car needs to be filled with petrol today. This costs US $35 On Monday you will need to pay your mobile phone bill which is US $25
On Thursday night you will go out with your friends. You will spend the followingamounts under entertainment.
Dinner US $10 Coffee at Caf US $ 1 Sweets US $ 3 Music CD US $ 7
Required:
1. Complete a Cash Budget using this information.
2.Identify the day you have the least cash
3. How much money will you have when you wake up on Friday morning?
Exercise #1 Template: Student Cash Budget
Saturday
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Beginning Balance
CASH INFLOWS
Weekly Allowance
Assim Pays you
Total Cash Inflow
CASH OUTFLOWS
-
8/14/2019 Module 3_ Project Design and Plan
29/44
29
Cafeteria
Petrol
Mobile Phone
Entertainment
Total Cash Outflow
ENDING BALANCE
Notes:
1. Your beginning balance on Saturday is what you have when you start or the balance atthe end of the Friday before.
2. Your Beginning Balance each day is the Ending Balance from the day before.
Exercise #1 Answer
aSaturday
Sunday
Monday
Tuesday
Wednesday Thursday Friday
B 50 10 5
1,625
1,670 1,665
1,644
C
W
1,650
A 50
T 50 10 1,65
1,67
1,670
1,665 1,644
-
8/14/2019 Module 3_ Project Design and Plan
30/44
30
5 5
C
C5 5 5 5 5
P 35
M 25
E 21
T 40 5 30 5 5 21
E 10 5
1,625
1,670
1,665 1,644
1,644
Notes:1. Your beginning balance on Saturday is what you have when you start or thebalance at the end of the Friday before.
2. Your Beginning Balance each day is the Ending Balance from the day before.
Additional Resources: Answers to these exercises on cash budgetscan be found on the Bridges website in EXCEL formatting, complete withformulas and comments.
MODULE 3D BUDGETING: CREATING A BUDGET
Small Group Activity: Now you will want to create a Cash Budget for the MCHCase Study. Refer back to the Case Study in the training materials. Review therequirements of this exercise. The trainees will use information from the case tobuild the budget for this triage centre project. Allow the trainees to work in smallgroups.
-
8/14/2019 Module 3_ Project Design and Plan
31/44
31
Budget Tools in the Project Management Toolkit are introduced refer to theBudget Detail Worksheet Template and the Cash Budget Template in thetoolkit.
The Mulkulla Mother-Child Hospital (MCH): Case Study Scenario
Using your Case Study details and the Excel Template that has been prepared for
you, create a budget for the year for the MCH for this project.
The template has already been set up for you with the months of the year, starting
with January. If you wish to start in another month, other than January, just change
the column headings to reflect any full 12 month period.
Also, you are free to change the row headings where you feel it is appropriate andsome blank rows have been left for you to add other cash inflows and outflows that
you determine may be necessary.
For many of the cash outflows, you may need to do another schedule before you get
your final numbers for each month. For instance, for the cost of Nurses, you may
need to create a separate spreadsheet showing how many you need for each month,
and their hours and their salaries. The total of this sub schedule will be carried
forward into your final yearly budget.
Required:
1.Complete the Budget Detail Worksheet to determine your overall costs andfunding for the project.
2.Complete the MULKULLA MOTHER-CHILD HOSPITAL Cash Budget using theworksheet from #1 above. Determine when you will need to plan for cash inflowsand outflows.
3. Do you identify any problems and if so, can you adjust your budget to try tocorrect them?
__________________________________________________________________________________
_________________________________________________________________________________
4. Does the budget help you in your overall planning of for the MCH Triage Project?
-
8/14/2019 Module 3_ Project Design and Plan
32/44
32
__________________________________________________________________________________
Budget Detail Worksheet
Trainees should work in small groups to BRAINSTORM about the costs of the
project. How much will this project cost? Are we on budget? How much have we
spent on the various expense items? These are all questions you must be able to
answer when planning a project. The Budget Detail Worksheet may be used as a
guide to assist you in the preparation of the budget and the budget narrative (which
explains the how and why).
Once you have your total budget numbers, you can put them into your Cash Flow
Budget to plan, month by month (or week by week if you wish) when you will be
receiving your Cash Inflows and when you will be incurring your Cash Outflows.
Refer to the attached Budgeting Excel spreadsheet in your training materials.
List each position by title and name of employee, if available. Show the annual, or
hourly or monthly rate and the percentage of time to be devoted to the project.
1. Professional Staff
Name/Position Computation
Estimated Cost
Dr. ? - Paediatrician ($ x 100%) $
Dr. ? - GP ($ x 100%) $
# Full-time nurses ($ x 100% x #) $
# Lab Technicians ($ x % x #) $
Pharmacist ($ x %) $
TOTAL
$_________
2. Administrative Staff
Name/Position Computation
Estimated Cost
-
8/14/2019 Module 3_ Project Design and Plan
33/44
33
Receptionist ($ x % x 1) $
Secretary ($ x % x 1) $
Security ($ x % x #) $
Cleaners ($ x % x #) $Porter ($ x % x 1) $
Transport/other ($ x % x 1) $
Laundry Services ($ x % x 1) $
Maintenance Staff ($ x % x 1) $
Food Services Staff ($ x % x 1) $
TOTAL $_________
Budget Narrative:
Discuss here your rationale for the professional and administrative staff costs you
are budgeting and why they are required.
3. Set Up Costs for Triage Unit
Item Computation Estimated
Cost
Medical Equipment ( ) $ Itemize if necessary ( ) $
Beds ( ) $Sheets ( ) $Blankets ( ) $Medical Supplies ( ) $
-
8/14/2019 Module 3_ Project Design and Plan
34/44
34
Itemize if necessary ( ) $
( ) $( ) $
Laboratory Supplies ( ) $ Itemize if necessary ( ) $
( ) $Additional Furniture ( ) $ Itemize if necessary ( ) $
( ) $Development & Printing of forms ( ) $Patient Records System ( ) $Initial Training Costs ( ) $
Total $_________
Budget Narrative:
Discuss here your rationale for the setup costs for the triage unit.
-
8/14/2019 Module 3_ Project Design and Plan
35/44
35
4. General Operating Costs
Item Computation Estimated
Cost
Rent or Lease Cost ( ) $
Electricity ( ) $
Water ( ) $
Cleaning & Laundry Supplies ( ) $
Fees/taxes of any sort ( ) $
Other Miscellaneous Costs ( ) $
Opening Celebration Costs ( ) $
Community Communication Plan ( ) $
Total $_________
Budget Narrative:
Discuss here your rationale for the General Operating Costs.
BUDGET SUMMARY
When you have completed the budget worksheet, transfer the totals for each
category to the spaces below.
-
8/14/2019 Module 3_ Project Design and Plan
36/44
36
1. Professional Staff $_________
2. Administrative Staff $_________
3. Set Up Costs for Triage Unit $_________
4. General Operating Costs $_________
TOTAL PROJECT COSTS $_________
PROJECT FUNDING
You will now have to look at what your sources of Cash Inflows will be.
1. Government Funding / Grants $_________
2. Municipal or Local Funding / Grants $_________
3. Donations $_________
4. User Fees $_________
5. Fundraising Activities $_________
TOTAL PROJECT FUNDING $_________
-
8/14/2019 Module 3_ Project Design and Plan
37/44
37
MCH Case Study Exercise Template
Note to Trainers: Ensure the Cash Budget Template is printed off on legalor long paper to ensure enough width. You may wish to provide copies of this
template for students. Alternatively, have students work on the budget on EXCELand complete it on their computer.
All amounts are in US $Jan.
Feb.
Mar.
Apr.
May
Jun Jul
Aug.
Sep.
Oct.
Nov.
Dec.
Beginning Balance
CASH INFLOWS Government Funding /GrantsMunicipal or localFunding / Grants
Donations
User FeesLocal FundraisingActivities
TOTAL CASH INFLOWS
CASH OUTFLOWS
ADMINISTRATIVE STAFF:
Receptionist
Secretary
Security
CleanersPorter
Transport/Driver
Laundry Services
Maintenance Staff
Food Services Staff
PROFESSIONAL STAFF:
Physicians - GPs
Physicians - Pediatric
Nurses
Lab TechniciansPharmacist
Other
SET UP COSTS FORTRIAGE UNIT:
Medical Equipment
Beds, sheets, blankets
-
8/14/2019 Module 3_ Project Design and Plan
38/44
38
Medical Supplies
LaboratoryAdditional Furniture,
desks, chairsDevelopment & Printing
of forms
Patient Records System
Initial Training Costs
Other
GENERAL OPERATINGCOSTS:
Rent or Lease Costs
Electricity
WaterCleaning & Laundry
Supplies
Fees/taxes of any sort
Other
OTHR MISCELLANEOUSCOSTS:Opening Celebration
CostsCommunity
Communication Plan
Other
TOTAL CASH OUTFLOW
ENDING BALANCE
-
8/14/2019 Module 3_ Project Design and Plan
39/44
39
MODULE 3E: RISK MANAGEMENT
E. Risk ManagementAnticipating and Mitigating Risks
Risk Matrix Tool 1 hour
MODULE 3E RISK MANAGEMENT: ANTICIPATING AND MITIGATING RISKS
Key Learning: Introduce the Risk Matrix Tool and means to assess andmitigate risks associated with projects.
Powerpoint presentation: The Impact of Risk Management
Use the powerpoint to guide your teaching. The Training Guide encourages you to
use lots of activities, questions, discussions and to record key ideas on flipcharts.
The powerpoint is only a guide to training.
-
8/14/2019 Module 3_ Project Design and Plan
40/44
40
Toolbox: Introduce the Risk Matrix Tool.
Risk Matrix Tool Exercise: Refer to the Risk Matrix Tool Exercise in thetrainers workbooks. The Exercise has 3 parts: A, B & C.
LETS ASSESS THE RISK OF THE PROJECT
When you assess risk, you have to think about all the possible things that could go
right or go wrong. This process gives you an opportunity to grasp and determine the
-
8/14/2019 Module 3_ Project Design and Plan
41/44
41
impact of the worst case scenario and then plan ahead to try to mitigate (reduce)
the risks.
The next exercise is one in which you are to BRAINSTORM all the possible
things that could go wrong in your project. You may want to use the template from
your MCH Cash Budget exercise (Module 3D) as a tool in identifying some of the
line items that could cause / be affected by a risk.
Part A:
Using the Risk Matrix Tool record the risks, the impact on the project, the
probability (how likely it is that the risk would occur), describe the specific risk you
foresee and then record how you could mitigate the identified risk.
In order to get you started on the Risk Matrix which follows, here are someexamples of potential risks:
Delay in training of people responsible to manage the triage desk
Construction delay in installation of the triage desk
Budget shortfall during the project operations
Medical personnel dont have time to commit to the project
Medical supplies and equipment Supply sources? Costs? Delivery Problems?
Establishing trust with patients/families and does the facility reflect aperceived real need?
Cultural issues will people go to a hospital for these issues will it be easilyacceptable in the community?
Cannot get qualified staff
Cannot get supplies/equipment
RISK MATRIX TOOL
What are
the
Risks?
What is the
impact?
High/Medium/L
ow
What is the
probability of
this risk?
High/Medium/L
ow
Describe
the risk
How can
you
mitigate
it?
-
8/14/2019 Module 3_ Project Design and Plan
42/44
42
-
8/14/2019 Module 3_ Project Design and Plan
43/44
43
Part B:
Key Learning Part B:Teach trainees how to use the matrix to determinewhere the Impact and the Probability intersect to determine if the risk is High,
Medium or Low for each identified item.
You will note that you entered the risk as High, Medium or Low.
You also entered the probability of the risk occurring as High, Medium or Low.
Using the table below, for each risk identified, determine each ones overall risk tothe project.
What is the
Probability?
What is the Impact?
High Medium LowHigh High High MediumMedium High Medium MediumLow Medium Medium Low
Key Learning: After the students have completed the Risk Matrix Tool, andassessed whether the impact and probability is High, Medium or Low, you will havethem use the matrix shown in Part B to determine the overall risk of each item.Show the students how to use a matrix and to see where the boxes intersect.
Part C:
What would be the impact &/or cost if you did not proceed with this project?
_____________________________________________________________________________________
-
8/14/2019 Module 3_ Project Design and Plan
44/44
44
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
__________________________________________________________________________________________________________________________________________________________________________
_____________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Key Learning: It is important to explain to students that not all projectsshould necessarily proceed. Often there is a momentum when management decidesto move forward on a project, and they have blinders on in terms of risks. One of thehardest things to do is to get the parties involved to answer the question posed inPart C of this exercise. Sometimes it is best to walk away from a project if the risksare too great.