The Project Cycle Flashcards
What is the project cycle?
It refers to the series of stages a project undergoes, from conception to execution.
Name the stages of a project cycle.
Project Idea Stage, Project Identification Stage, Project Evaluation Stage, Project Selection Stage, Project Execution Stage.
Why is understanding the project cycle important?
It provides a total picture of the project, aiding in planning and execution.
What happens during the project idea stage?
New project ideas are generated from internal or external sources, such as customers or employees.
Name two common sources of new project ideas.
Internal sources (e.g., salespeople or employees) and external sources (e.g., customer requests).
What is the purpose of the project identification stage?
To consolidate project ideas and systematically document them for further processing.
Why is the evaluation stage crucial in a project cycle?
It involves estimating the benefits and costs of a project, typically in terms of cash flow.
Who should evaluate projects in a corporate setup?
A multidisciplinary team of experts or external consultants to ensure objectivity.
What is the key activity in the project selection stage?
Selecting projects based on their value, feasibility, and alignment with organizational goals.
Why is financial capacity critical in project selection?
Projects must match the firm’s financial resources or secure external funding.
What is the role of the project management team during the execution stage?
To ensure the project stays within budget and is completed on schedule.
What tool can help track a project’s progress during execution?
A monthly budget and progress report for monitoring and control.
Give an example of a public sector project.
A major railway link from Ibadan to Onitsha.
Give an example of a private sector project.
A new brewery in Enugu.
What is a key challenge in estimating cash flows during evaluation?
Predicting future cash flows, which are uncertain and difficult to estimate.
How does a project move from idea to execution?
Through systematic stages: idea generation, identification, evaluation, selection, and execution.
Why might organizations use external consultants for project evaluation?
To eliminate bias and ensure an objective assessment of the project.
What role does the board of directors play in project selection?
They evaluate projects, considering financial outlays and strategic alignment.
How does project monitoring ensure success during execution?
By tracking expenditures and progress against the budget and timeline.
What type of report is crucial for top management during the execution stage?
Monthly budget and progress consideration reports.
