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

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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

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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

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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.

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

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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 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

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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

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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

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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

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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

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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 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

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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 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

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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.
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

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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 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

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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
organization’s existing assets.

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

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

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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

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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

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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 infrastructure 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

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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

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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

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

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Project Preliminary Scope Statement
(Case Study)

SharePoint Portal
Development

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

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

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Project Charter
Information contained in – or referred to in other project
documents – the Project Charter may span the following:
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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

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