Project Management PowerPoint Slides for Week 03

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Master of Project Management (MPM) Degree
Programme
Fundamentals of Project Management
PART III THE PROJECT LIFE-CYCLE
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The Project Life-Cycle
Initiation
Planning
Monitoring, Evaluation Control
Implementation
Closure
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Overview of Project Initiation

• Awareness of the need for change (situation,
  context) and
• recognition 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 project costs 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 a future 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

PHASE I Project Initiation Definition
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Key Project Initiation Deliverables Inputs
Project (Business) Case
Aclnowledgement of a Need
Envisaged Project Outcomes
Project Pre-Feasibility
Project Strategic Dimension
Project Goal Objectives, Cost Time
Project Feasibility Report
Project Scope Key Deliverables
Project Requirements Specifications
Formal Project Proposal
Project Resources
Project Stakeholders
Preliminary Scope Statement
Project Risks
Project Assumptions Constraints
Project Charter
Project Policies, Processes, Systems etc.
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Limitations of the Project Initiation Phase
In the project initiation phase, a typical and
serious limitation 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 the project may
take longer, cost more and generally be more
diffcult to do than first thought when it was
con-sidered and accepted.
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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.
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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.
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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 other
criteria. 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.
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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 for
students 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.
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The Initiation Phase of a Project (Project Scope
Key Deliverables)
The goal of a project determines its scope, i.e.,
the work 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).
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The Initiation Phase of a Project (Project
Requirements Specifications)
Requirements and specifications are key elements
of any 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 deliverables must 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 all city building and environmental
regulations. The owners can also specify the
dimensions of the mall and its constituting
spaces, the interior décor and quality of the
building materials.
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The Initiation Phase of a Project (Project
Resources)
No project can be attempted unless the requisite
resources 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 the project 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.
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The Initiation Phase of a Project (Project
Stakeholders)
All projects have stakeholders. It is not
possible to envision 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 in question 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.
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The Initiation Phase of a Project (Project Risks)
Risks are a defining element of projects. Complex
projects 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 the project, 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 for the
new project.
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The Initiation Phase of a Project (Project
Assumptions and Constraints)
Projects are usually undertaken in very complex
internal 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 of project 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
effect on 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.
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The Initiation Phase of a Project (Project
Policies, Processes, Systems etc.)
Projects are not undertaken in a vacuum but in an
environment 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 thought
must, therefore, be given to whether the project
can be supported to the extent it requires
through the organizations existing assets.
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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.
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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.
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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.
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Project Feasibility Studies
A Feasibility Study examines at diverse issues,
including the 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
archeological and 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.
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Project Feasibility Case Studies
Karnataka State Highways Improvement Project
Hotel Development in Isle of Wight County, VA,
USA
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Project Preliminary Scope Statement

• Project Goal and Objectives
• Project Deliverables
• Project Requirements
• Project Boundaries
• Project Assumptions Constraints
• Project Risks and Issues
• Project Organization
• Project Cost and Schedule
• Configuration
• Project Approval Requirements
• Project Acceptance Criteria

The Project Preliminary Scope Statement provides
an indication of the project deliverables and
serves as a guide for developing the detailed
project scope statement and for planning the
project.
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Project Preliminary Scope Statement(Case Study)
SharePoint Portal Development
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Project Charter
According to the Project Management Institute,
the Project 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 the
purpose 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 information about
the project others may contain specific details.

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Project Charter
Information contained in or referred to in
other project documents 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

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Project Charter Case Studies
California Child Support Automation System CMS