Module 3_ Project Design and Plan

8/14/2019 Module 3_ Project Design and Plan

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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


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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/


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MODULE 3: PROJECT DESIGN AND PLAN


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


Risk Matrix Tool 1 hour

MODULE 3A: PROJECT CHARTER


Project CharterTool

Case Study

30 hours

Pre-Project

Stage

1. Project

Design

and Planning

2. Plan

Implementati

on

3. Post

Implementati

on


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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?


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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


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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 .


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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


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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


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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


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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.


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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).


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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


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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.


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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.


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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.


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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


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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.


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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


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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


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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


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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!


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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





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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.


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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?


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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


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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.


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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


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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


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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.


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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?


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__________________________________________________________________________________

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


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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 ( ) $


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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.


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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.


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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 $_________


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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


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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


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MODULE 3E: RISK MANAGEMENT


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





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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


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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?


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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?

_____________________________________________________________________________________


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_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________________________________

_____________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________

___________________________________________________________________

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.

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Module 3_ Project Design and Plan

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