INTRODUCTION TO PROJECT MANAGEMENT CYCLE

INTRODUCTION

Projects and Processes

A project is an organized endeavor aimed at accomplishing a specific nonroutine or low-volume task (Shtub et al. 1994). Due to sheer size (number of man-hours required to perform the project) and specialization, teams perform most projects. In some projects the team members belong to the same organization, while in many other projects the work content of the project is divided among individ- uals from different organizations.

Coordination among individuals and organizations involved in a project is a complex task. To ensure success, integration of deliverables produced at different geographical locations by different individuals from different organizations at different times is required. Projects are typically performed under a time pressure, limited budgets, tight cash flow constraints, and uncertainty. Thus, a meth- odology is required to support the management of projects. Early efforts in developing such a meth- odology focused on tools. Tools for project scheduling such as the Gantt chart and the critical path method (CPM) were developed along with tools for resource allocation, project budgeting and project control (Shtub et al. 1994). The integration of different tools into a complete framework that supports project management efforts throughout the entire project life cycle (see Section 1.2 below) was achieved by the introduction of project-management processes.

A project-management process is a collection of tools and techniques that are used on a predefined set of inputs to produce a predefined set of outputs. Processes are connected to each other as the input to some of the project-management processes is created (is an output) by other processes. The collection of interrelated project-management processes forms a methodology that supports the man- agement of projects throughout their life cycle, from the initiation of a new project to its (successful) end.

This chapter presents a collection of such interrelated processes. The proposed framework is based on the Project Management Body of Knowledge (PMBOK), developed by the Project Management Institute (PMI) (PMI 1996). The purpose of this chapter is to present the processes and the relation- ship between them. A detailed description of these processes is available in the PMBOK. PMI conducts a certification program based on the PMBOK. A Project Management Professional (PMP) certificate is earned by passing an exam and accumulating relevant experience in the project- management discipline.

The Project Life Cycle

Since this is a temporary effort designed to achieve a specific set of goals, it is convenient to define phases that the project goes through. The collection of these phases is defined as the project life cycle. Analogous to a living creature, a project is born (initiated), performed (lives), and terminated (dies), always following the same sequence. This simple life-cycle model of three phases is concep- tually helpful in understanding the project-management processes because each process can be defined with respect to each phase. However, this simple life-cycle model is not detailed enough for imple- mentation (in some projects each phase may span several months or years). Thus, more specific life- cycle models for families of similar projects were developed. A specific life-cycle model is a set of stages or phases that a family of projects goes through. The project’s phases are performed in se- quence or concurrently. The project life cycle defines the steps required to achieve the project goals as well as the content of each step. Thus, the literature on software projects is based on specific life- cycle models, such as the spiral model developed by Muench (1994), and the literature on construction projects is based on construction project life-cycle models, such as the one suggested by Morris (1981).

In the Morris (1981) model, a project is divided into four stages performed in sequence:

Stage I—feasibility. This stage terminates with a go / no-go decision for the project. It includes a formulation of the project, feasibility studies, strategy design, and strategy approval for the project.

Stage II—planning and design. This stage terminates with Major contracts Let. It includes base design, cost and schedule planning, contract definitions, and detailed planning of the project.

Stage III—production. This stage terminates with the installation substantially complete. It in- cludes manufacturing, delivery, civil works, installation, and testing.

Stage IV—turnover and startup. This stage terminates with full operation of the facility. It includes final testing and maintenance.

Clearly this model does not fit R&D projects or software projects, while it may be very helpful for many construction projects.

With the integration of the ideas of project processes and the project life cycle, a methodology for project management emerges. The methodology is a collection of processes and a definition of the part of each process that should be performed within each phase of the project life cycle. The responsibility to perform each process (or part of a process) can be allocated to specific individuals trained in the required tools and techniques. Furthermore, the information (input) required for each process can be delivered to the individuals responsible for the project, ensuring a well-coordinated flow of information and thus good communication between the project participants.

Templates or models of life cycles are useful for project management. When each phase is ter- minated with one or more completed documentable deliverables, the project-life cycle model is a simple yet very effective tool for monitoring and control of the project throughout its entire life cycle.

An Example of a Project Life Cycle

The Department of Defense uses a simple yet very popular life-cycle model for Defense acquisition

(U.S. Department of Defense 1993):