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MBA643

Project risk, finance, and

monitoring

Workshop 2

Project phases and the project

life-cycle

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The Big Idea

"If you don't know where you are going.

How can you expect to get there?"

Basil S. Walsh

Learning objectives

1. Discuss the project life cycle, using PMBOK and other project

management models, and identify the discrete phases within a

project

2. Apply select project management tools to plan a project

3. Discuss the implications of project life cycle structures,

including predictive, iterative and adaptive structures

4. Examine the role of project management process groups within

the lifecycle of a project

5. Develop research methods to select an appropriate case study

for assessment

Key terms

• Project  accomplish specific goals within established

constraints of time and cost

• Scope  total products, services and results that are the

goals of the project

• Quality  attributes of the project deliverables that

achieve the project’s requirements

• Requirements of a project:

– specifications or parameters

– an understanding of the tasks to be undertaken

– budget and scheduling

– human resource allocations

– overall project management

Project life cycle

• Project life cycle:

– Phases  project initiation to closure

– Highly formalised

– Highly specific

– Predictable

– Scale  projects can be scaled up or

down to meet the complexity of the task

• There is no single ideal structure that will

apply to all projects.

Phases of the project life cycle

1. Starting the project

2. Organising and preparing

3. Carrying out the project work

4. Closing the project

Projects  divided into phases

Phase  logical collection of activities

with deliverables & “handover”

Case study 1: Copper mine

A US construction company has

won a contract to design and build

the first copper mine in northern

Argentina. There is no existing

infrastructure for either the mining

industry or large construction

projects in this part of South

America.

Starting the project

• Defining the project

• Feasibility

• Due diligence

• Initial approval gates

Organising and preparing

• Goals set

• Scope, timeframe and

cost of the project is

defined

• Schedules and budgets

determined

• Performance measures

established

• Project management

plan is developed

Case study 1: Copper mine Starting the project

• Defining the project

• Finding a team to lead the

project

• Setting up offices

• Developing procedures

• Developing relationships

Organising and preparing

• Developing a project schedule

• Detailed budgets

• Design and conceptual

drawings

• Procurement

Planning documentation

1. Scope statement –defines business

need, benefits, objectives, deliverables,

and milestones.

2. Milestones – high-level goals that need

to be met throughout the project

3. Gantt Chart – visual timeline used to

plan and track milestones

Planning documentation

1. Communication plan – establishes

appropriate guidelines for communication with

stakeholders regarding milestones and risks

2. Risk Management Plan – defines and

identifies all foreseeable risks, estimates their

impact, and plans responses and

contingencies.

3. Work Breakdown Schedule (WBS) – a visual

representation, breaking down the scope of the

project into manageable sections.

Gantt Charts

• Visual representation of a project schedule- showing

relationships between tasks

Watch:

https://www.youtube.com/watch?v=ADK58IRPKh8

Workshop activity A philanthropist has donated $4000 to a local youth

group.

The donation is for materials to build a structure at

a local skate park, with the aim to involve the youth

group members in a community project while

learning about construction.

In groups:

1) Put together a scope statement

2) Identify project goals and essential

milestones

3) Develop a Gantt Chart for the

project

Carrying out the project work

• Plans are executed

• Teams are developed (roles created,

resources allocated)

• Resources allocated or procured

• Tracking systems set up

• Work authorised, monitored, controlled

• Performance measured

• Project plans are modified as needed

Closing the project

• Resources re-

assigned or

terminated

• Post-mortem

conducted

• Punch-list completed

Case study 1: Copper mine Carrying out the project

• Equipment delivered

• Labour hired and trained

• Construction site built

• Construction activities are

done

• Work is tracked and approved

Closing the project

• Project is “handed over”

• Punch-list developed and

finished

• Closure of facilities

• Final reports & budgets

Project management processes

Project management process

groups

– The inputs, outputs, tools

and techniques, required for

any project

– NOT to be confused with

project phases, often

repeated each phase

– Typically performed in the

same sequence

– Discrete yet interdependent

Initiating

Planning

Monitoring &

controlling Executing

Closing

Process groups

https://www.youtube.com/watch?v=UluNhfCZOME

Quick quiz 1. Form groups – one for

each project

management process

below:

Initiating

Planning

Monitoring &

controlling

Executing

Closing?

2. Your lecturer will read

out a link of project

management processes

and students raise their

hands if these fall into

their group. (Refer to

PMBOK Guide)

Case study: inputs & outputs

Process: Developing

the project charter

Inputs: SOW, business

case, EEF, OPA

Tools & techniques:

Expert judgement

Outputs: The project

charter

Workshop activity

Read “11.1 Plan risk

management”, pp.313-18 of the

PMBOK guide. Answer the

following questions in relation to

your skate park project in groups:

• During which phase is the

project management risk

planning process undertaken?

• What are the inputs?

• What tools & techniques are

required?

• What are the outputs?

Workshop activity

Read through the case study on

the accreditation of Hospital X.

• Why was the project initiated?

What were the goals of the

project?

• What planning processes were

used in support?

• What were the broad phases used

in this project? What activities fell

under each?

• How was the project monitored

and controlled?

• What difficulties did the PM

encounter?

Project life cycle structures

1. Why do costs of changes increase as the project progresses?

2. Why does risk and uncertainty reduce as the project progresses?

Phase structures

• Predictive (fully plan-

driven)

• Iterative and

incremental

• Adaptive (agile)

Phase structures • Predictive:

– detailed scope, time and cost are determined early

– The project is split into phases, but each is a mini-

project in itself. Planned for each phase

• Iterative and incremental:

– time and cost are determined early BUT NOT

scope

– Scope determined in each phase

• Adaptive:

– Respond to high level of change in the project

– Each iteration informs the scope of the next

iteration

Workshop activity

Predictive, iterative or adaptive?

Discuss the best structures for the following projects:

• The product is well understood

• The product is not well understood

• The project is large and complex

• A project undertaken in a rapidly changing environment

• Customers are involved at the beginning and end

• Customers are involved periodically

• Customers are continuously involved

Workshop activity

1. Research a project

management model

below:

1.Agile

2.DMAIC, DMADV,

DFSS (Six Sigma)

3.Crystal

4.R&D life cycle model

5.Critical path

2. Prepare a short

tutorial to teach your

fellow students about

the phases of your

model, and the

philosophy behind it. If

possible, provide an

example project to

illustrate the application

of the model.

Case Study Week 6

• For Assessment 1 to students will need to

identify an appropriate project management

case study and develop a risk analysis and

mitigation plan.

• Students will be required to identify and

confirm an appropriate case study with the

unit coordinator by the end of week two.

• For more information see Assessment 1

description on the portal

Workshop activity

• In groups, discuss your ideas

for the case study due in

Week 6

• Use the databases to find

information on the industry

(and company, if possible)

• Locate other online sources

(company website,

government sites, media

articles, industry associations)

Selecting a case study

• It may be easier to find information on

government and public companies

• Larger projects may be more complex, but more

information is likely to be available

• Find out the methodologies adopted in your

industry, learn the vocabulary

• Keep track of your references from the

beginning.