Project Phases and Project Life Cycles

All projects are divided into phases, and all projects, large or small, have a similar life cycle structure. At a minimum, a project will have a beginning or initiation phase, an intermediate phase or phases, and an ending phase. The number of phases depends on the project complexity and the industry. For example, information technology projects might progress through phases such as requirements, design, program, test, and implement. All the collective phases the project progresses through in concert are called the project life cycle.

The end of each phase allows the project manager, stakeholders, and project sponsor the opportunity to determine whether the project should continue to the next phase. In order to progress to the next phase, the deliverable from the phase before it must be reviewed for accuracy and approved. As each phase is completed, it’s handed off to the next phase. You’ll look at handoffs and progressions through these phases next.

Handoffs
Project phases evolve through the life cycle in a series of phase sequences called handoffs, or technical transfers. The end of one phase sequence typically marks the beginning of the next. However, the completion of one phase does not automatically signal the beginning of the next phase. For example, in the construction industry, feasibility studies often take place in the beginning phase of a project.

The purpose of the feasibility study is to determine whether the project is worth undertaking and whether the project will be profitable to the organization. A feasibility study is a preliminary assessment of the viability of the project; the viability or perhaps marketability of the product, service, or result of the project; and the project’s value to the organization. It might also determine whether the product, service, or result of the project is safe and meets industry or governmental standards and regulations. The completion and approval of the feasibility study triggers the beginning of the requirements phase, where requirements are documented and then handed off to the design phase, where blueprints are produced. The feasibility might also show that the project is not worth pursuing and the project is then terminated; thus, the next phase never begins.

Phase Completion
You will recognize phase completion because each phase has a specific deliverable, or multiple deliverables, that marks the end of the phase. A deliverable is an output that must be produced, reviewed, and approved to bring the phase or project to completion. Deliverables are tangible and can be measured and easily proved. For instance, a hypothetical deliverable produced in the beginning phase of a construction industry project would be the feasibility study.

Deliverables might also include things such as design documents, project budgets, blueprints, project schedules, prototypes, and so on. This analysis allows those involved with the opportunity to determine whether the project should continue to the next phase. The feasibility study might show that environmental impacts of an enormous nature would result if the construction project were undertaken at the proposed location. Based on this information, a go or no-go decision can be made at the end of this phase. The end of a phase gives the project manager the ability to discover, address, and take corrective action against errors discovered during the phase.

Sometimes phases are overlapped to shorten or compress the project schedule. This is called
fast tracking. Fast tracking means that a later phase is started prior to completing and approving the phase, or phases, that come before it. This technique is used to shorten the overall duration of the project.

Most projects follow phase sequences within a project life cycle and, as a result, have the following characteristics in common: In the beginning phase, which is where the project is initiated, costs are low, and few team members are assigned to the project. As the project progresses, costs and staffing increase and then taper off at the closing phase. The potential that the project will come to a successful ending is lowest at the beginning of the project; its chance for success increases as the project progresses through its phases and life cycle stages. Risk is highest at the beginning of the project and gradually decreases the closer the project comes to completion.

Stakeholders have the greatest chance of influencing the project and the characteristics of the product, service, or result of the project in the beginning phases and have less and less influence as the project progresses. This same phenomenon exists within the project management processes as well.

Choosing Project Management Software

Project management is enhanced and facilitated when you use project management software. Project management software is available to perform everything from project planning, scheduling, to payroll.

All project management software packages have the capacity to produce eye-catching charts and graphs, such as Gantt charts, histograms, milestone charts, and tables. With regard to scheduling, these packages can:

• schedule and track people working on multiple projects
• identify conflicting resource demands and allocate resources accordingly
• schedule and track dates
• make formal work estimates
• prepare status reports to monitor scheduled activities.

There are two main types of scheduling packages: resource-driven scheduling and duration-driven scheduling.
Resource-driven scheduling packages emphasize tasks. If, for example, you want to schedule and track your project based on the number of work hours, resource-driven scheduling software is your best bet. If, on the other hand, you typically plan your schedule based on task durations, you should purchase a duration-driven software package.

Both types of project management software produce schedules that show project dependencies as well as any leads or lags the dependencies might have.

Project management software is designed to simplify life for project managers. The trick to making this type of software work for you is to determine whether you schedule with an emphasis on work hours or task duration. This factor should drive your choice of software to ensure that the software you buy is compatible with your project management preferences.

The Components of a Risk Management Plan

Imagine trying to build a house without a house plan. Do you think the process would go smoothly? Would you be happy with the results? Do you think it would take less time than if you had planned it out first?

The answer to all of these questions is likely no. The same is true when it comes to managing risk which is why it is important to put a risk management plan in place to guide your project decisions.

A risk management plan indicates how risk identification, analysis, planning, monitoring, and control will be handled throughout the project's life cycle. The components of a risk management plan are:

• methodology
• scoring and interpretation
• thresholds
• budgeting
• timing
• tracking
• roles and responsibilities
• reporting formats

In order to begin the risk management plan there must be an analysis stage that looks at methodology, scoring and interpretation, and thresholds.
Methodology refers to the approaches, tools, and data sources that may be used to carry out risk management. The methodology chosen will depend on the project stage and the amount of information available.

Scoring and interpretation refers to the numerical ranking of risks. The method of scoring and interpretation must be determined in advance, used in a consistent manner, and measured using tools such as a risk rating matrix or probability analysis.

Thresholds describe the who, what, and how criteria for risks that will be acted on. Project team members may have different risk thresholds. An acceptable target threshold must be determined to gauge the effectiveness of the risk response.

Deacon Oil Explorations, Limited (DOEL) is one of the leading oil exploration companies in the country. The project that DOEL is about to embark on is of great importance and is predicted to move DOEL to the top of its field. DOEL has just finished the analysis stage for this project's risk management plan.

• methodology - In a brainstorming meeting, DOEL used open-ended questions to ask its staff what risks they thought would be concerns for the upcoming project.
• scoring and interpretation - DOEL's risk management team has decided to use a risk rating matrix to score risks. It will use a scale from 0.0 to 1.0, rating 0.0 to 0.3 as low risk, 0.4 to 0.7 as medium risk, and 0.8 to 1.0 as high risk. Having this planned in advance will ensure risks are scored and interpreted consistently.
• thresholds - DOEL's risk management team has decided that it cannot act on all identified risks. The team decided that risks scored at 0.7 or above will be acted on, while risks scored at 0.6 or below will not. Therefore, the acceptable threshold is 0.7.

After the analysis stage of the risk management plan, team members can start thinking about planning for the next three components: budgeting, timing, and tracking.
Budgeting involves setting the amount of money that will be invested in the risk management plan for the project.

Timing refers to how often the risk management process is performed. The process should be performed often enough so that the results will impact on decisions, and decisions should be reviewed periodically to allow for improvement.

The tracking process considers the current project, future needs, and lessons learned when documenting how risk activities will be tracked. It also takes into account when and how risk management processes will be audited.

Now that you know the basic structure of the risk management plan, it's time to focus on who is in charge and how reporting will take place within the process. The last two components are roles and responsibilities and reporting formats.

Roles and responsibilities should be established for every action in the risk management plan. It is necessary to define who leads, who supports, and who belongs to the team. Independent risk management teams are made up of people who are not biased.

Reporting formats refer to the reporting relationships and structures that exist within the risk management process. The reporting formats define the risk management response plan and indicate how results will be documented, analyzed, and communicated to stakeholders.

Bennett Publishing is getting its risk management plan ready for its new distance learning courses. They are assigning roles and responsibilities and determining reporting formats for the process.

Peter Croft has been chosen to lead the risk management team. He will conduct a brainstorming meeting with team members Jill, Richard, and Seela on Thursday.

It has been decided that the results of the risk management process will be reported to all concerned parties via an intranet site. The site will be updated regularly.

A risk management plan helps to guide your project decisions. It indicates how risk identification, analysis, planning, monitoring, and control will be handled throughout the project's life cycle. Risk management plan components such as methodology, scoring and interpretation, thresholds, budgeting, timing, tracking, roles and responsibilities, and reporting formats give substance and structure to the plan so it can be carried out effectively. Once you have a risk management plan in place, your project should sail smoothly.