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Project Life Cycle• Project Selection

Project Feasibility on Financial and Non- Financial Basis(Payback Model, Net Present Value method, Return on

Investment, Weighted Scoring Model)

• Project PlanningProject Scope and Network DevelopmentBasic SchedulingTime Cost TradeoffsResource Considerations

• Project Implementation/Execution• Project Completion and Audit

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Project Phases and Project Life Cycle

• A project life cycle is a collection of project phases that defines:– What work will be performed in each phase.– What deliverables will be produced and when.– Who is involved in each phase. – How management will control and approve work

produced in each phase.

• A deliverable is a product or service produced or provided as part of a project

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Project Life Cycle Phases

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More on Project Phases• In the early phases of a project life cycle:

– Resource needs are usually lowest.– The level of uncertainty (risk) is highest.– Project stakeholders have the greatest opportunity to

influence the project.• In the middle phases of a project life cycle:

– The certainty of completing a project increases.– More resources are needed.

• In the final phase of a project life cycle:– The focus is on ensuring that project requirements were

met.– The sponsor approves completion of the project.

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Relationship among PM phases and Knowledge Management areas

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Relationship among PM phases and Knowledge Management areas (Cont…)

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Level of Activity and Overlap of Process Groups Over Time

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Project Planning, Scheduling, and Controlling

Figure 3.1

Before Start of project Duringproject Timeline project

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Project Planning, Scheduling, and Controlling

Before Start of project Duringproject Timeline project

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Project Planning, Scheduling, and Controlling

Figure 3.1

Before Start of project Duringproject Timeline project

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Project Planning, Scheduling, and Controlling

Figure 3.1

Before Start of project Duringproject Timeline project

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Project Planning, Scheduling, and Controlling

Figure 3.1

Before Start of project Duringproject Timeline project

BudgetsDelayed activities reportSlack activities report

Time/cost estimatesBudgetsEngineering diagramsCash flow chartsMaterial availability details

CPM/PERTGantt chartsMilestone chartsCash flow schedules

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Project Planning Establishing objectives Defining project Creating work

breakdown structure Determining

resources Forming organization

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Project Organization Often temporary structure Uses specialists from entire company Headed by project manager

Coordinates activities Monitors schedule

and costs Permanent

structure called ‘matrix organization’

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A Sample Project Organization

TestEngineer

MechanicalEngineer

Project 1 ProjectManager

Technician

Technician

Project 2 ProjectManager

ElectricalEngineer

Computer Engineer

Marketing FinanceHumanResources Design Quality

Mgt Production

President

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Project OrganizationWorks Best When

1. Work can be defined with a specific goal and deadline

2. The job is unique or somewhat unfamiliar to the existing organization

3. The work contains complex interrelated tasks requiring specialized skills

4. The project is temporary but critical to the organization

5. The project cuts across organizational lines

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Matrix OrganizationMarketing Operations Engineering Finance

Project 1

Project 2

Project 3

Project 4

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The Role of the Project Manager

Highly visibleResponsible for making sure that:

All necessary activities are finished in order and on time

The project comes in within budget The project meets quality goals The people assigned to the project receive

motivation, direction, and information

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The Role of the Project Manager

Highly visibleResponsible for making sure that:

All necessary activities are finished in order and on time

The project comes in within budget The project meets quality goals The people assigned to the project receive

motivation, direction, and information

Project managers should be: Good coaches Good communicators Able to organize activities

from a variety of disciplines