Operational Analysis of A Pre-Feasibility Study

Organization and management study (operational aspect)

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Operational aspectThe purpose of the operational study is to determine whether the project can in fact be implemented and put into operation, considering the political, legal, organizational, managerial, institutional and other administrative constraints which may impinge upon the project implementation or operation

Operational AspectEvaluates the strategy of the implementing agency in carrying out project activities specifically the implementing arrangements and project management and organization. Provides information and guidelines that can be used to improve the efficiency and effectiveness of the over-all project administration.

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The criteria for determing the operational feasibility of a project include the following:Political acceptability and legality of the projectAdequacy of the organizational and institutional arrangements for the projects implementation/operation; andAvailability and adequacy of resources for the projects implementation/operation

Components of Project Operational Aspect

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Basic considerationsPurposeRelevance of previous studiesFunctions- foundation of the projects organizational chart Qualifications for the various functions

Forms of ownershipSingle proprietorshipPartnershipCooperativeCorporation

Projects organizational chartDiagram showing relationships of all personnelDepicts flow of authorityIndicates flow of communication in the organization

Officers and key personnelKey positionsTechnical positionSupport staff

EDUCATIONAL BACKGROUNDWORK EXPERIENCETRAINING

PROJECT SCHEDULEGantt Chart (duration)PERT network (sequential presentation of the different activities)

structuresThe functions, roles, relationships and responsibilities which serve as framework for organizational activitiesFacilitates the attainment of organizational goalsResults of deliberate strategies and designs

Factors to consider in the organizational structureNature of project or businessSizeDecentralizationLegal considerations and restraints

chartsPromote understanding of communication problemsOrient newer people to structural relationships and complexitiesProvide a graphic picture of the full sweep of organizational activities and services

Structural formsTALL vs. FLAT CENTRALIZED vs. DECENTRALIZED

TALL VS. FLATTALL STRUCTUREAuthority levels tend to be increasedSpan of command is reducedDecision making more centralizedUpper managements influence on control extendedFLAT STRUCTUREReduces the number of authority levelsConsiderable responsibility at the middle managementExtremely large span of control

FLATPROJECT MANAGERSite coordinatorSite coordinatorSite coordinator

TALL

PROJECT MANAGERASST. PROJECT MANAGERTECHNICAL GROUPADMIN AND FINANCE GROUPSITE COORSITE COORSITE COOR

CENTRALIZED VS. DECENTRALIZEDCHARACTERISTICSCENTRALIZATIONDECENTRALIZATIONFeasibility in field decisionsxxxField conditions diversexxxTechnology is standardizedxxxMonitoring and interpretation of broad trends in innovation and creativityxxxDeveloping middle level managersxxxBroad-based competitionxxxNarrowly-focused competitionxxxEconomies of computer usexxxOverall control accessiblexxxOverall coordination needxxxUniformity in policies, plans and programsxxxLegally mandated info gathering, processing and reportingxxx

Internal OrganizationInternal Organization is the actual organization that implements the project. Specific elements to analyze are the structure, authority, line of communication and flexibility. Structure describes:functions, tasks and authorities of the departments, divisions and individual employees relationships between them (line of command, communication and procedures) the number of employees in each division, unit and department. Structure can be done through splitting and grouping of tasks.

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grouping TasksCriteria in Grouping TasksConsiderations in Grouping TasksOutputs (goods/services) Facilitates processes in the organization FunctionsFacilitates coordination among officersTarget groups Influences motivation among staff to carry out tasksSkills Appropriateness of span of controlGeographical areas Work shifts

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Internal OrganizationTips in designing a structure

Projects that require individual initiative, flexibility and accountability should be organized in a matrix fashion.

Projects that require high degree of coordination, authority and supervision should be organized in more hierarchical fashion.

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Internal OrganizationMatrix structure

groups employees by both function and product very flat differentiated into whatever functions are needed to accomplished goals.

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MATRIX STRUCTURE

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Matrix StructureAdvantagesDisadvantagesIndividuals can be chosen according to the needs of the project.A conflict of loyalty between line managers and project managers over the allocation of resourcesIt is dynamic and able to view problems in a different way as specialists have been brought together in a new environmentProjects can be difficult to monitor if teams have a lot of independenceProject managers are directly responsible for completing the project within a specific deadline and budgetCosts can be increased if more managers are created through the use of project teams.

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Internal OrganizationHierarchical structure defines each employees role within the organisationdefines the nature of their relationship with other employees tall with narrow spans of control, and gets wider as it moves down the structure important decisions are centralized

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Hierarchical Structure

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Hierarchical structure AdvantagesDisadvantagesAuthority and responsibility are clearly definedIt can be bureaucratic Clearly defined promotion pathResponds slowly to changing customer needs and the market within which the project operatesEncourages the effective use of specialist managers.Communication across various sections can be poor especially horizontal communicationEmployees are very loyal to their department within the organisationDepartments can make decisions which benefit them rather than the organization as a whole especially if there is Inter-departmental rivalry

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Example: Establishment of A district hospital in Municipality X. Relevant questions to be asked about the proposed organization:Is there an existing LGU department to implement the proposed project? Or is there a need to create a new organizational structure?Is it appropriate to carry out project goals? Are lines of authority clearly defined?Is it flexible enough?Is internal communication well established?

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Designing of StructureProposed Hospital Structure What type of hospital? Procedure in designing:Identify the functional departments/services needed in the establishment of a hospital Group according to similarity of dutiesState the functions of each unit

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Identification of departments, functions, and JobsDepartmentFunctionsJobsAdministrative ServicesOver-all management of the hospitalAdministration and supervision of prog/proj.Informational ServicesDocuments and processes informationAdmissionBilling and collectionHealth RecordsHuman ResourcesHealth EducationTherapeutic Services Provides treatment to patientsPhysical therapy Occupational therapyRespiratory therapyNursing Services

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Identification of departments, functions, and JobsDepartmentFunctionsJobs

Medical PsychologySocial Services Pharmacy DietaryDiagnostic Services Diagnoses the causes of illnesses or injuryMedical LaboratoryMedical ImagingEmergency TreatmentSupport Services Provides support for the entire hospitalFinanceSupplyHousekeeping and Maintenance

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LCEAdministrationInformationTherapeuticDiagnosticSupport ServicesAdmissionBillingMedical RecordsHealth EducationPhysical TherapyOccupational TherapyRespiratory TherapyNursingDietaryMed. Lab.RadiologyERCardiologyNeurologySupplyFinanceHousekeepingMaintenanceTransportation

Proposed Functional Structure of HospitalProposed Functional Structure of the Hospital

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Personnel and Physical ResourcesManpower Resources. This component includes the evaluation of the following key items:Identification of basic positions in the different departments/sections in the structureJob descriptions of every position Qualification standard for every position; Pay scale for every position; Scheme in getting personnelChoice of foreign vs. local personnel specially in consulting services; andPolicies, systems and procedures

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Position/Dept.No.Req. Job Description QSSalary GradeAdministrative ServicesChief of Hospital

Asst. CHODept. Heads1

14Establish and enforces hospital policies and proceduresOversee budgeting and financePerforms public relationsEducation:Eligibility:ExperienceTrainings SG 27

SG SGDiagnostic servicesMedical TechnologistRadiologistNursePhysician

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111Determines the causes of illnesses or injuriesEducationEligibilityExperienceTrainings

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Manpower Resources Labor Required per department 1) Skills required 2) Number required for each skill 3) Sources of labor force for each type of skill 4) Recruitment program 5) Labor training program 6) Compensation a) prevailing rates b) Legal rates c) Rates intended for the project - starting rates and provisions for annual increases

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Position ClassificationPositionsNumber

Chief of Hospital1Department Heads4Administrative Officer1Human Resource Management Officer1Records Officer1Supply Officer1Accountant1Budget Officer1Cashier1PhysicianNursesMedical TechnologistMidwives

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Physical ResourcesCapital assets: items acquired in one period but used over several years Land Office FacilitiesBuildings equipment vehicles, Supplies and Materials Drugs Medical Supplies Medicines Other items needed in the hospital Note; Identification of items must be done per department

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Utilities Electricity Water Training Services Communication Services Transportation Services Janitorial Services Security Services

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External Linkages External linkages refer to the structure of government and private organizations which directly or indirectly condition the projects environment in terms of provision of political, technical and other types of support. These include the following: administrative funding agency regulating agency advisory organizations

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External LinkagesExample: Funding Agencies: Amount LGU Donor Agency GFI Regulatory Agencies DOH

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External LinkagesIn this component the analyst should be able to determine the kinds of barriers and supports that the project will possibly encounter such as: Information as to the capability of implementing agencies to provide adequate support especially for large and complex projects; andDecision as to the choice between increasing the ability of existing institutions to implement the project or creating a new organization.

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Management Plan formal, approved document that defines how the project is executed, monitored and controlleddefines the approach to be used by the project team to deliver the intended project management scope of the project.Includes schedule of project activities; Control techniques; Systems and procedures; and Contingencies..

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Management PlanBasic questions to be asked include:Are schedules and networks sufficiently worked out?What are the control techniques and the methods of supervision?Is the entire management plan integrated so that the project manager can control all aspects of the project?Is the management of the project formulated well enough to ensure that the project will be well coordinated and controlled?Does the plan provide for contingencies?

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Management PlanImplementation Scheduledefines the major phases of work that will be undertaken to achieve the desired project objective/s and the associated deliverablesShows the work breakdown structure which will detail the related activities and tasks, responsibilities and timeline.

Management PlanImplementation ScheduleProject PhasesDeliverables associated with each phase - a measurable, tangible, verifiable output, result or item that must be produced to complete a project or part of a project Major Activities for each deliverableKey milestones -an important check point along the way that tells you if you are on track to deliveryWho is responsible for delivery of each major activity, andHow much?

ResourcesInvestment Phase Civil Works Equipment/ Machineries Materials/Supplies Labor Supervision/Consultancy Laborers Skilled Unskilled

Operational PhasePersonnel ServicesMOOECapital/Equipment Outlay

Rule: If operations and maintenance of the project cannot be sustained, either from the project revenues or subsidies from the province, the project investment should not be undertaken.

Management PlanProject Procurement Plan this plan supports the implementation schedule of the proposed project in terms of providing the timelines of procuring the items needed to realize projects objectives per phase.

Management PlanKey Issue:

Are the plans realistic given the actual environment? For example, procurement of capital equipment often requires a long lead time. If adequate lead time is not scheduled, it can cripple the managers ability to coordinate activities

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Management PlanRisk Management Plan Shows the proactive measures that can reduce the likelihood or consequences of unpleasant surprises that may jeopardize the achievement of project objectives that may arise from the following:changing circumstances and new developmentsfurther refinement of project planningchanges to the scope of the project, anddiscussions/negotiations with the client/stakeholder.

WorkshopDesign the operational aspect of the proposed project that you have started to analyze. Please do the following:Project TitleProject ProponentProject LocationProject BeneficiariesProject Goal/sProject Duration

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Workshop:Identify the main implementing body and partners if there are.Is it the LGU alone? Or in partnership with NGA/Donor Agency?Describe the implementing arrangements between or among partner agencies.What are the specific responsibilities of each?How is it monitored, controlled, and appraised?

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What is the project structure? Show the: organizational chart Positions, job descriptions and qualifications Manpower requirementsNumber of personnel for each job classificationManagerial Skilled LaborersTechnical Unskilled Laborers

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Pay scales/Wages Employee development program if any. Policies for recruitment of required personnel Aggregate labor cost Physical Resources RequirementsCapital equipmentMaterials and suppliesUtilities (electricity, fuel, water)Aggregate cost

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Operational AspectsProject Work planGantt Chart/PERT CPM Budget Contingencies

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In the beginning, the Pencil Maker spoke to the pencil saying, "There are five things you need to know before I send you out into the world.Always remember them and you will become the best pencil you can be

The Pencil Parable

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You will be able to do many great things, but only if you allow yourself to be held in Someone's hand.

First:

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You will experience a painful sharpening from time to time, but this is required if you are to become a better pencil.Second

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You have the ability to correct any mistakes you might make.Third

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The most important part of you will always be what's inside.Fourth

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No matter what the condition, you must continue to write. You must always leave a clear, legible mark no matter how difficult the situation.

Fifth

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The pencil understood, promising to remember, and went into the box fully understanding its Maker's purpose.

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Now , in place of the pencil see yourself; Remember these reminders and you will become the best person you can be.

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You will be able to do many great things, but only if you allow yourself to be held in God's hand. You must also allow other human beings to access you for the many gifts you possess.

One

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You will experience painful sharpening from time to time. You will meet challenges and difficulties , but you'll need it to become a stronger person.

Two

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You will be able to correct mistakes you might make. You will learn and grow through them.

Three

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The most important part of you will always be what's on the inside.

Four

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On every surface you walk, you must leave your mark.

No matter what the situation, you must continue to serve the Almighty in everything.

Five

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Everyone is like a pencil created by the Maker for a unique and special purpose.You were Made to do Great Things!

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Thank You!

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