Project Management Life Cycle

MASTER of IT ENGINEERING

RESEARCH METHODOLOGY

YEAR 1, SEMESTER 1

30 Sept 2013- 24 Feb 2014

Dr Leang Khim23/02/2014

The Project Management

Life Cycle

I. Project Initiation

II. Project Planning

III. Project Execution

IV.Project Closure

CONTENTS

Jason Westland, 2006. The Project Management Life Cycle

A project A unique endeavor to produce a set of deliverable

within clearly specified time, cost (budget/resources), and quality constraints.

The Project Management Life Cycle


Project management The skills, tools, and management processes required

to successfully undertake a project.

* Deliverable: A quantifiable outcome of a project which results in the partial or full achievement of the project objectives.

Characteristics of a project

1. A clearly defined goal2. Limited time3. Temporary organization4. A leader and members5. Budget for achieving the goal6. Valuable required resources7. Sometimes unexpected outcomes happen8. Consisting of several phases9. Modification increases the difficulty of changing

the process



Examples of some notable projects

Angkor Wat (>40 ys) Human Genome Project which

mapped the human genome (1990-2001, 11 ys)

Manhattan Project, which developed the first nuclear weapon- atomic bomb (1935-1945,6 ys)


Examples of some notable projects

Project Apollo, which landed humans

on the moon (1963-1972, 9 ys)

Great Pyramid of Giza (20 ys).

Reasons of Failing Project1. Unachievable objectives2. Unreasonable expectations3. Inadequate planning4. Unclear requirements and

ineffective requirements practices

5. Ineffective communication6. Insufficient resources 7. Ineffective project tracking

capabilities8. Poor quality and insufficient

quality control


9. Poorly defined requirements10. Scope creep11. Stakeholders have different

expectations12. Stakeholders have unrealistic

expectations13. There is no real need or demand

for the product14. There is a lack of user involvement

in the project15. Change management is lacking or

ineffectiveJason Westland, 2006. The Project Management Life Cycle




Develop a case

Start

Undertake a feasibility study

Establish the term of reference (TOR)

Appoint a project team

Set up a project office

Perform phase review


Develop a case is created to define the problem or opportunity

in detail and identify a preferred solution for implementation.

A detailed description of the problem or opportunity;

A list of the alternative solutions available;

An analysis of a business benefits, cost, risks, and issues;

A description of the preferred solutions;

A summarized plan for implementation.



Feasibility study is to:

Assesses the likelihood of each alternative solution option

Investigate if the forecast costs are reasonable

Find out if the solution, risks and issues are achievable,

acceptable and avoidable, respectively.



Terms of reference (TOR) a document that outlines the purpose

of the project, the manner in which the project will be structured and

how it will be implemented. It defines:

The vision, objectives, scope, and deliverable for the project.

Organization structure, activities, resources, funding required to

undertake the project.



1. The vision, objectives, scope and deliverables (that is

what the project will actually produce).

2. Stakeholders, authority, roles and responsibilities

(that is, who will take part in it)

3. Resource, financial (costs and budgets) and quality

plans (that is, how it will be achieved)

Terms of reference may include:



4. Work breakdown structure and schedule

(that is, when it will be achieved)

5. Identification of the customer

6. Major assumptions and constraints

7. Key risk areas

8. Project approach or strategy used

Terms of reference may include:



Project team Appointment of Project Manager

Job description

Financial and accounting systems, etc.

Project office Office furniture

Communication infrastructure

Financial and accounting systems, etc.






Createan acceptance plan

Create a communication plan

Create a procurement plan


Develop a resource plan

Create a project plan

Create a financial plan

Create a risk plan

Create a quality plan

Contract the suppliers


Create a project plan Reiterate the project scope.

Identify the project milestones, phases, activities and tasks.

Quantify the effort required for each task.

Allocate project resource to each task

Construct a project schedule

List any planning dependencies, assumptions and constrains

The project plan is constantly referred throughout the project.



Milestones Description Milestone date

Quality plan approved

A quality plan has been documented and approved by the project sponsor. It identifies the quality assurance and quality control techniques required to ensure and control the quality of all project deliverables and processes.

DD/MM/YY

Preferred supplier contracted

A formal tender process is undertaken to identify a short-list of capable suppliers and select a preferred supplier. The tender process involves creating a statement of work, a request for information......

DD/MM/YY

A milestone is a major event in a project, and often represents the completion of a set of project activities.



Project schedule

No Task name Jan Feb Mar Apr May Jun Jul Aug1. Appoint project team

DirectorManagerLeaderAdministrator

2. Set up project officePremiseRental contractOffice equipmentAdditional facilities


Create a resource plan summarizes type of resource required, such as labor, equipment and materials.

Quantity of each type of resource required. Roles, responsibilities and skill-sets of all human resource

required. Specifications of all equipment resource required. Items and quantities of material resource required.




Role Responsibility Skills Stat date End date

Project manager

Delivering the approved solution to meet the full requirements of the customer

Time managementCost managementPeople management

DD/MM/YY DD/MM/YY

Supervisor Executing activities to accomplish the project objectives

Planning DD/MM/YY DD/MM/YY

Labor listing


Jason Westland, 2006. The Project Management Life CycleJason Westland, 2006. The Project Management Life Cycle

Create a financial plan identifies the financial resources required to undertake a project.

List the types of costs such as labor, equipment, administrative, etc.

Identify the unit cost for each cost type. Identify when the costs will be incurred by completing

an expense schedule. identify the cost per activity



Type of cost Unit cost Comment1. Labor ($...../month)

DirectorManagerAdministrator

2. Equipment ($..../item)ComputerFurnitureVehiclesEngine

3. Others

Cost forecast


Jason Westland, 2006. The Project Management Life CycleJason Westland, 2006. The Project Management Life CycleJason Westland, 2006. The Project Management Life Cycle

Create a quality plan identifies the extent to which the final

deliverable conforms to the customer’s requirements

Quality targets.

Describe the quality assurance.

Define the processes to achieve the quality targets.



Quality targets

Project requirement

Project deliverable

Quality criteria Quality standards

New financial management solution with accounts receivables and payables processes

Implementation of Oracle Financials General Ledger (GL), Accounts Payable (AP) and Accounts Receivables (AR) system.

System functionality GL tested and installed. AP tested and installed. AR tested and installed.

System performance System up-time System response timeData transferred

System functionality GL operational with no errors. AP operational with no errors. AR operational with no errors.

System performance 99.9% system uptime <1 second response times 100% data accuracy

Quality targets



Quality assurance plan

Technique Description Frequency

Recruit skilled staff

We will recruit skilled staff to assure deliverable quality by:o Ensuring staff having at least 3 year experience in

finance and accounting in similar projects.o Appointing 2 technical consultants to ensure that the

technology deliverables of this project meet the quality standards.

Throughout the project

Undertake quality review

We will review the quality of deliverable by:o Appointing an independence resource to perform monthly

quality review.

Monthly

Quality assurance plan



Create a risk plan identifies the level of project risk.

List the foreseeable project risks.

Rate the likelihood of each risk.

Describe the impact on the project

Set actions to reduce and/or prevent the risk.



Risk category Risk description Risk ID

Requirements The requirement have not been clearly specified The requirements specified do not match the

customer’s need.

1.11.2

Benefits The business benefits have not been identified The final solution delivered does not achieve the

required benefits

2.12.2

Budget The project exceeds the budget allocated There is unaccounted expenditure on the project

3.13.2

Deliverables The deliverables required by the project are notclearly defined.

The deliverable produced does not meet the quality criteria defined.

4.1

4.2

Risk list



Title Score Description

Very high 100 Highly likely to occur……

High 80 Very likely to occur, based on the circumstances of the project

Medium 60 Likely to occur….

Low 40 Unlikely to occur. However needs to be monitored…..

Very low 20 Highly unlikely to occur based on current information….

Risk likelihood



Create an acceptance plan is defined as gaining agreement fromthe customer that the deliverables produced by the project meet the criteria defined by the customer.

A list of the milestones. A set of criteria and standards for the acceptance of deliverables

by customers. A plan outlining how the deliverables will be reviewed. A process for gaining customer acceptance.



Milestone Deliverable

Name Description Name Description

Financial system upgraded

Implement the software package on new hardware

Software package installed

Implement General Ledger (GL), Accounts Payable (AP) and Accounts Receivable (AR) software

Acceptance milestones



Deliverable Criteria Standards

Software package installed

System functionality GL tested and installed. AP tested and installed. AR tested and installed.

System performance System up-time System response timeData transferred

System functionality GL operational with no errors. AP operational with no errors. AR operational with no errors.

System performance 99.9% system uptime <1 second response times 100% data accuracy

Acceptance criteria



Create a communication plan describes the information to be disseminated to all project stakeholders to keep them regularly informed of the progress of the project.

The information requirements of each project stakeholder. A schedule of the communication events, methods and release

dates. A matrix highlighting the resource involved in each communication

event. A clear process for undertaking each communication event within

the project.



Create a procurement plan identified the products to be procured

An overview of the external supply market. A full list of products to be acquired and a detail description of each

product. The justification for procuring the products A plan outlining the timeframes for acquiring the products. A tender process describing how the product suppliers will be

chosen



Contract the suppliers : A formal tender management process is undertaken to select a preferred supplier.

Issue a statement of work (SOW) Issue a request for information (RFI) Issue a request for proposal (RFP) Receive and evaluate supplier proposalsChoose a preferred supplierNegotiate a formal contract



Perform a phase review: This is a checkpoint to ensure that the project has achieved its stated objectives as planned. It describes the status of:

Overall project. Project schedule based on the project plan. Project expenses based on the financial plan. Project staffing based on the resource plan. Project deliverables based on the quality plan Project risk based on the risk register. Project issues based on the issue register.


Present to project sponsor

Project board (chaired by the project sponsor) decides whether to cancelor undertake further work or grant approval to begin the next phase





III. Project Executuion



Perform change management

Perform risk management

Perform issue management


Monitor and control

Build deliverables

Perform time management

Perform quality management

Perform cost management

Perform procurement management


Perform acceptance

management

Perform communication management




Build deliverables: The steps undertaken to build each deliverable will vary

depending on the type of project you are undertaking. Regardless of the method used, careful monitoring and

control process should be employed.

Perform time management is used to: Calculate the total time spent undertaking each task; Calculate the total staff cost undertaking each task; Identify the percentage of each task completed; Enable the project manager to control the level resource.

Jason Westland, 2006. The Project Management Life CycleJason Westland, 2006. The Project Management Life CycleJason Westland, 2006. The Project Management Life CycleJason Westland, 2006. The Project Management Life Cycle

Perform cost management: Labor costs (for staff, external suppliers, contractors,

consultants, etc.); Equipment cost ( computers, furniture, building facilities, etc.); Material costs ( stationary, consumables, water and power, etc.); Administration costs ( legal, insurance, lending, accounting fee,

etc.).

Each expense form must specify: The activity and task, the date, the type of expense, description of expense, amount, payee, invoice number, and approval signature by the person in charge (manager/director).



Perform quality management is a method by which the quality of the deliverables and management processes are assured and controlled during a project. (refer to Project Planning)

Perform change management is a method by which changes to the project scope, deliverables, timescales, or resources are identified, evaluated and approved prior to implementation.

Change requester identifies and documents the need and submit change request form (CRF) to the change manager who will review and decide on CRF.



Perform issue management is a method by which issues that are currently affecting the ability of the project to produce the required deliverables are formally managed. Communicating, documenting, monitoring, reviewing, and resolving issues identified

Perform risk management is a method by which risks to the project are formally identified, quantified and managed during the execution of the project (refer to Project Planning).



Perform acceptance management is a method by which deliverables by the project are reviewed and accepted by the customer (refer to Project Planning).

Perform procurement management is a method by which products are acquired for a project from external suppliers, involving controlling the ordering, receipt, review and approval of the products (Refer to Project Planning).



Perform communication management is a method by which formal messages are identified, created, reviewed and communicated within a project.

Identify the message content, audience, timing and format. Create message to be sent Review the message Communicate the message to the recipients.



Perform a phase review is to ensure that the project has achieved its stated objectives as planned. It describes the status of the:Overall project.

Project expenses based on the financial plan. Project staffing based on the resource plan. Project deliverables based on the quality plan. Project risks based on the risk register. Project issues based on the issue register



IV. Project Closure

Jason Westland, 2006. The Project Management Life CycleJason Westland, 2006. The Project Management Life Cycle

IV. Project Closure


Perform project closure

Review project completion

IV. Project Closure


Perform project closure A detailed list of project completion criteria. Confirmation that all completion criteria have been met. A set of actions to hand over project deliverables and

documentation, terminate contract, inform stakeholder, etc. A request for project closure approval


Completion category

Completion criterion Accepted by customer

Objectives o The project vision has been achieved as defined in TOR.o All project objectives been achieved as defined in TOR.

Y/N

Benefits The full benefits have been realized as defined in the business case.

Y?N

Deliverables All deliverables have been accepted by the customer, as per acceptance plan.

Completion criteria

IV. Project Closure


Supplier name

Contract reference

Termination activity Release date Activity owner

Objectives Ref. no. Notify suppliersPay supplier invoices

DD/MM/YYYY Name of person in charge

Supplier termination

IV. Project Closure


Review project completion: A post-implementation review is undertaken to formally review the project and identify any lessons learnt.

An assessment of overall performance. A rating of level of conformance. A list of project achievements and failures. Lessons learnt and recommendations for future projects.

IV. Project Closure


Project Scope: The work that needs to be accomplished to deliver a product, service, or result with the specified features and functions

Scope creep: The incremental expansion of the scope of a project,which may include and introduce more requirements that may not havebeen a part of the initial planning of the project, while neverthelessfailing to adjust schedule and budget.


Deliverable: A quantifiable outcome of a project which results in the partial or full achievement of the project objectives.

Output: The tangible products or services that the activity will deliver.

Documents

Project Management Life Cycle