And in the log window, this note appears: "NOTE: Variable CI1 is uninitialized."
That error message is very clear. In this block of code:
data tempp;
set project3;
if inst_num = CI1;
You are testing if the variable INST_NUM is equal to the variable CI1. SAS is saying that there is no variable named CI1.
From the rest of your program it looks like you probably wanted to test if the formatted value of INST_NUM was equal to the string literal 'CI1'.
if put(inst_num,$institutef.)='CI1';
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