Master of Project Management MPM Degree Programme Fundamentals

Master of Project Management (MPM) Degree Programme Fundamentals of Project Management PART III: THE PROJECT LIFE-CYCLE Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 1

The Project Life-Cycle Planning Implementation Closure Monitoring, Evaluation & Control Initiation Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 2

Overview of Project Initiation PHASE I: Project Initiation & Definition § 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 Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 3

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. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 4

Limitations of the Project Initiation Phase In the project initiation phase, a typical and serious limitation is the lack of available of “quality information” which exists about the project – especially for complex projects and projects of a kind which have not been attempted before. At initiation a project’s 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 considered and accepted. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 5

The Initiation Phase of a Project (Awareness of a Need) All projects are conceived and undertaken in response 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 customers 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 reduce 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. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 6

The Initiation Phase of a Project (Project Outcomes) All projects have outcomes that are realized subsequent 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) outcomes 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 prosperity. A negative outcome could be the project’s adverse environmental impact (chopping trees, disrupting ecological systems) and its social consequences for the communities which lie on both sides of the road. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 7

The Initiation Phase of a Project (Project Strategic Dimension) The projects which any organization in the commercial and public-sector undertakes must have a “strategic fit” – it must be consistent with the organization’s mission, goals and objectives so that it can “add value” to it. In practice, methods and models have been devised to assess a project’s strategic fit and its appropriateness for selection in a project portfolio. Commercial organizations typically look at factors such as a project’s 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. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 8

The Initiation Phase of a Project (Project Goal, Objectives, Cost & Time) Every project has one goal which is the ultimate destination 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 community. All projects necessarily incur cost and require time (per definition). Despite the existence of several estimation methods, acurate initial assessment of a project’s cost and time need can be challenging. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 9

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 complications if it not carefully defined. In projects, anything not included in the scope definition is considered outside the project boundary or purview. In determining a project’s scope, numerous requirements 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 subdeliverables (e. g. airport buildings, runways, parking lots, shopping area). Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 10

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 project’s deliverables must exhibit certain defined capabilities in terms of appearance, function, performance 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. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 11

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 financial 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 company’s ability to undertake the projects concurrently would be determined 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 lucrative project may not be undertaken. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 12

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. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 13

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 undertake 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. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 14

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 subsequent planning and execution of the project. For example, an assumption could be that the cost of project inputs will not increase over the project lifecycle, that project requirements will not significantly 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. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 15

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 organization’s existing assets. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 16

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. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 17

Example of a Project Pre-Feasibility Study The Small and Medium Enterprise Development Authority has 118 prefeasibility reports relating to projects in Pakistan which are freely downloadable from its website. The reports span following areas: Agriculture, carpets, ceramics, chemicals, construction, dairy, education, electronics, entertainment, fisheries, food, furniture, gems & jewelery, IT, leather, light engineering, livestock, marbel & granite, minerals, paper, petroleum, pharmaceuticals, plastic, services, textiles, tourism and travel, and trading. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 18

Project Feasibility Studies A Feasibility Study is done with the purpose of determining whether or not it a project should be undertaken. 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 alternative solutions and come up with the best possible one. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 19

Project Feasibility Studies A Feasibility Study examines at diverse issues, including the project’s technical feasibility, its financial viability, its social desirability and legal acceptability. On infrastruc-ture projects a Feasibility Study may assess the project’s ecological consequences and impact on archeological and cultural assets. The Feasibility Report can contain a lot of useful information for the project planning phase. Feasibility Reports may sometimes generate erroneous results which can cause serious problems for projects. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 20

Project Feasibility Case Studies Karnataka State Highways Improvement Project Hotel Development in Isle of Wight County, VA, USA Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 21

Project Preliminary Scope Statement • Project Goal and Objectives • Project Deliverables • Project Requirements • Project Boundaries • Project Assumptions & Constraints • Project Risks and Issues 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. • Project Organization • Project Cost and Schedule • Configuration • Project Approval Requirements • Project Acceptance Criteria Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 22

Project Preliminary Scope Statement (Case Study) Share. Point Portal Development Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 23

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. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 24

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 Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 25

Project Charter Case Studies California Child Support Automation System CMS Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 26