MPM_ProjectManagementFundamentals10

8/3/2019 MPM_ProjectManagementFundamentals10

1/26

Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 1

PART III: THE PROJECT LIFE-CYCLE


2/26


The Project Life-Cycle

Initiation

Planning

Implementation

Closure

Monitorin

g,Evaluation

&

Control


3/26


Awareness of the need for change (situation, context) andrecognition by stakeholders that only a project can bring

about the desired change

Consideration of project options

Collection of basic information to perform a preliminary

project feasibility assessment and determine possible projectcosts and outcomes (positive and negative)

Preparation of a formal project proposal for consideration by

the project sponsors

Undertake a detailed project feasibility study if required

Decide whether project should be pursued, put on-hold for afuture time or rejected

Make contracts with key stakeholders, issue project charter

and assign resources for the project

Move the project into the (detailed) planning phase

Overview of Project Initiation

PHASEI:

ProjectInitiation

&D

efinition


4/26


Key Project Initiation Deliverables & Inputs

Project (Business) Case

Project Pre-Feasibility

Project Feasibility Report

Formal Project Proposal

Preliminary ScopeStatement

Project Charter

Aclnowledgement of a Need

Project Strategic Dimension

Project Goal & Objectives, Cost & Time

Envisaged Project Outcomes

Project Scope & Key Deliverables

Project Requirements &Specifications

Project Resources

Project Stakeholders

Project Risks

Project Assumptions & Constraints

Project Policies, Processes, Systems etc.


5/26


Limitations of the Project Initiation Phase

In the project initiation phase, a typical and seriouslimitation is the lack of available of quality informa-

tion which exists about the project especially for

complex projects and projects of a kind which have not

been attempted before.

At initiation a projects feasibility, outcomes, scope,

requirements and specifications, cost, time and risks,

stakeholders, resource needs etc. are often not known

with a high degree of precision with the result that theproject may take longer, cost more and generally be

more diffcult to do than first thought when it was con-

sidered and accepted.


6/26


The Initiation Phase of a Project(Awareness of a Need)

All projects are conceived and undertaken in res-ponse to some need (problem, opportunity)

internal, external, legal and other.

The need could be commercial in nature for

example, an automobile company seeks to bring out

a new SUV as it perceives a large market of cus-tomers who would be willing to purchase it, or a

software company is asked by one of its major

clients to develop an accounting software for its

organization. On the other hand, the need could be

non-commercial for example, a municipal office

wants to introduce a modern sewage system to re-

duce health hazards or the federal government

wants to construct a highway linking major urban

localities. An NGO may initiate a project to provide

basic health facilities needed by a village.


7/26


The Initiation Phase of a Project(Project Outcomes)

All projects have outcomes that are realized subse-quent to (and sometimes during) their completion.

Some outcomes can be easy to quantify while others

may not.

Project outcomes may be positive and/or negative

and multifaceted. For example, the (envisaged) out-comes or benefits of a provincial road construction

project connecting two urban localities could be that

transport between these localities becomes easier,

quicker and cheaper and leads to a increase in the

volume of trade and investment and economic pros-

perity. A negative outcome could be the projects

adverse environmental impact (chopping trees, dis-

rupting ecological systems) and its social conse-

quences for the communities which lie on both sides

of the road.


8/26


The Initiation Phase of a Project(Project Strategic Dimension)

The projects which any organization in the commer-cial and public-sector undertakes must have a stra-

tegic fit it must be consistent with the organiza-

tions mission, goals and objectives so that it can

add value to it.

In practice, methods and models have been devised

to assess a projects strategic fit and its appropriate-

ness for selection in a project portfolio. Commercial

organizations typically look at factors such as a pro-

jects profitability (measured in terms of its Return

on Investment), risk, technical complexity and othercriteria. In the public sector, the profit motive is not

an overriding consideration unlike other factors such

as development plans, targets and priorities against

which projects are undertaken.


9/26


The Initiation Phase of a Project(Project Goal, Objectives, Cost & Time)

Every project has one goal which is the ultimate des-tination of all project initiation, planning, execution

and other activities.

In addition to its goal, projects can have multiple

objectives. For example, when an NGO undertakes a

project to improve secondary education facilities forstudents in a district by constructing a new school

building, some of the project objectives may include

prioritizing local resource suppliers and recruiting

and selecting teachers preferably from the commu-

nity.

All projects necessarily incur cost and require time

(per definition). Despite the existence of several

estimation methods, acurate initial assessment of a

projects cost and time need can be challenging.


10/26


The Initiation Phase of a Project(Project Scope & Key Deliverables)

The goal of a project determines its scope, i.e., thework which has been performed in order for the

project to be considered complete by its owner.

Scope can be a tricky issue which may cause compli-

cations if it not carefully defined. In projects, any-

thing not included in the scope definition is consi-

dered outside the project boundary or purview. In

determining a projects scope, numerous require-

ments and specifications (possibly subject to change

over the course of the project) may be inputs.

Key deliverables of a project are the final composite

deliverable (e.g. an airport) and its constituting sub-

deliverables (e.g. airport buildings, runways, parking

lots, shopping area).


11/26


The Initiation Phase of a Project(Project Requirements & Specifications)

Requirements and specifications are key elements ofany project. The success or failure of the project is

assessed largely in terms of the extent to which it

satisfies its requirements and specifications.

Requirements and specifications imply that a pro-

jects deliverablesmust exhibit certain defined capa-bilities in terms of appearance, function, perfor-

mance etc. For example, the owners of a planned

shopping mall may require that it is designed as a

three-storied glass structure, is aesthetically

pleasing, can accommodate up to 120 shops and

25,000 visitors daily, in addition to conforming to allcity building and environmental regulations. The

owners can also specify the dimensions of the mall

and its constituting spaces, the interior dcor and

quality of the building materials.


12/26


The Initiation Phase of a Project(Project Resources)

No project can be attempted unless the requisiteresources have been made available by the project

sponsor and client.

Resource consumption ultimately results in a finan-

cial cost but even having abundant funds does not

mean that the resources specifically needed for theproject in question are available. For example, a

financially robust and rapidly expanding software

company may have come up with several good ideas

for advanced software programmes catering to

different market segments. The companys ability to

undertake the projects concurrently would be deter-mined in large measure by its ability to mobilize the

needed number of programmers inhouse or through

external channels. In such a case even a highly lucra-

tive project may not be undertaken.


13/26


The Initiation Phase of a Project(Project Stakeholders)

All projects have stakeholders. It is not possible toenvision any project without their direct and indirect

involvement.

Project Stakeholders may range from very few in

number to many millions. Their interest in and

attitude and behaviour towards the project inquestion may also vary considerably.

When initiating any project, it is essential that the

key stakeholders are identified and their stake in the

project documented.

Stakeholders can be a great source of help and

also pose a formidable obstacle for a project and

any new project must keep this in mind.


14/26


The Initiation Phase of a Project(Project Risks)

Risks are a defining element of projects. Complexprojects in particular harbor numerous and diverse

risks and if these risks turn into events, they may

endanger a project.

When initiating any project it is essential to under-

take an initial analysis of the risks inherent to theproject, seeking in particular to identify those risks

that may have a bearing on the project in the course

of its life-cycle. If a project similar in nature was

undertaken previously, then lessons learned from

risk management on that project may be used forthe new project.


15/26


The Initiation Phase of a Project(Project Assumptions and Constraints)

Projects are usually undertaken in very complexinternal and external environments and are subject

to a multitude of factors and influences.

Assumptions may constitute the basis for the subse-

quent planning and execution of the project. For

example, an assumption could be that the cost ofproject inputs will not increase over the project life-

cycle, that project requirements will not signifi-

cantly change and that all key stakeholders will

support the project.

Constraints are factors which have a limiting effecton how the project is undertaken. These include for

example constraints with regard to project policies,

recruitment and selection, reporting, financial

outlays, completion of activities etc.


16/26


The Initiation Phase of a Project(Project Policies, Processes, Systems etc.)

Projects are not undertaken in a vacuum but in anenvironment which is characterized by diverse

policies, processes, systems, infrastructure and so

forth. Project success is conditioned in part by the

maturity of these environmental factors.

When considering a new project careful thoughtmust, therefore, be given to whether the project can

be supported to the extent it requires through the

organizations existing assets.


17/26


Project Pre-Feasibility Studies

A Pre-Feasibility Study is done with the purpose of

determining whether or not it is worthwhile to

proceed with a detailed Feasibility Study of a project.

Pre-Feasibility Studies have exploratory framework

character but sometimes they evolve into full-fledged

Feasibility Studies.

Pre-Feasibility Reports are usually of a (comparatively)

short length and duration than Feasibility Reports

which analyze a project in great detail.


18/26


Example of a Project Pre-Feasibility Study

The Small and Medium Enterprise

Development Authority has 118 pre-

feasibility reports relating to projects

in Pakistan which are freely down-

loadable from its website.

The reports span following areas:Agriculture, carpets, ceramics,

chemicals, construction, dairy,

education, electronics, entertain-

ment, fisheries, food, furniture,

gems & jewelery, IT, leather, light

engineering, livestock, marbel &

granite, minerals, paper, petroleum,

pharmaceuticals, plastic, services,

textiles, tourism and travel, and

trading.


19/26


Project Feasibility Studies

A Feasibility Study is done with the purpose of deter-mining whether or not it a project should be under-

taken. A formal study is typically performed on large,

complex projects.

Feasibility Studies can be regarded as projects in their

own right and are usually undertaken by experienced

consultants.

Feasibility studies can be very detailed and explicit,

spanning volumes in some cases. They look at alterna-

tive solutions and come up with the best possible one.


20/26


Project Feasibility Studies

A Feasibility Study examines at diverse issues, includingthe projects technical feasibility, its financial viability, its

social desirability and legal acceptability. On infrastruc-

ture projects a Feasibility Study may assess the projects

ecological consequences and impact on archeologicaland cultural assets.

The Feasibility Report can contain a lot of useful infor-

mation for the project planning phase.

Feasibility Reports may sometimes generate erroneous

results which can cause serious problems for projects.


21/26


Project Feasibility Case Studies

Karnataka State Highways

Improvement Project

Hotel Development in Isle of

Wight County, VA, USA


22/26


Project Preliminary Scope Statement

The Project Preliminary Scope

Statement provides an indication

of the project deliverables andserves as a guide for developing

the detailed project scope

statement and for planning the

project.

Project Goal and Objectives Project Deliverables

Project Requirements

Project Boundaries

ProjectAssumptions &

Constraints

Project Risks and Issues

Project Organization

Project Cost and Schedule

Configuration

Project Approval Requirements

Project Acceptance Criteria


23/26


Project Preliminary Scope Statement(Case Study)

SharePoint PortalDevelopment


24/26


Project Charter

According to the Project Management Institute, theProject Charter is the document that formally authori-zes

the project.

The Project Charter provides the Project Manager and

Project Team with the authority to use resources for thepurpose of undertaking the project.

The Project Charter is usually short and is issued by the

Project Sponsor or a senior official outside the level of the

project organization.

Some Project Charters contain brief general informationabout the project; others may contain specific details.


25/26


Project Charter

Information contained in or referred to in other projectdocuments the Project Charter may span the following:

Project Background

Purpose for undertaking the project

Project Justification Requirements

Stakeholder expectations from the project

Assumptions and Constraints

Project Organization

Stakeholder Roles and Responsibilities

Schedule and milestones

Indication of budget

Supporting infrastructure


26/26


Project Charter Case Studies

California Child Support Automation System

CMS

MPM_ProjectManagementFundamentals10

Documents

Transcript of MPM_ProjectManagementFundamentals10