Lecture 03: Project Life Cycle Flashcards
Project Life Cycle
General Overview - Corporate Investment Life Cycle
Definition Concept - Conceptualization
- development of initial goal and technical specifications for a project
- scope of the work is the determined, necessary resources( people, money..) identified and important organizational contributors or stakeholders sigend on
Definition Design or Planning
- stage in which all detailed specifications, schematics schedules and other plans are developed.
- individual pieces of the project (work packeges) are broken down, individual assignments made and the process for completion clearly delineated
Definition Implementation and Execution
- actual work of project is performed,system developed, product created and fabricated.
- during execution phase, the bulk of project team labour is performed
Definition Commission or Handover
- completed project got transferred to the costumer
- resources reassigned, project formally closed out
- specific subactivites are completed → project shrinks and costs decline rapidly
Summary of Project life Cycle
- phases get their names from deliverables
- sequence of project generally involves technology transfer or handover from one phase to the next
- the end of a phase is marked by a review of deliverables and performance to determine if project should continue
- each phase could be panned an controlled like a mini project (own budget)
- each phase may be performed by different departments or contractors
Project life Cycle of large projects
overlap between phases
- fast tracking
- phases ar eshown in sequnce but in practice may be some overlap between
- deliverables from former phases are generally approved before work starts in next phase
multi phase project
Project life Cycle Diagramm (client interest, project stake, resources, creativity, uncertainty)
- client interest: level of enthusiasm /concern expressed by projects intended customer
- project stake: amount of corporate investment in the project
- resources; financial, human, technical
- creativity: degree of innovative required by the project
- uncertainty: number of unknows, including technical challenges
Project Life Cycle ( Impact of risk/ uncertain and cost of changes based on project time )
Level Of Influence Vs Cost Of Changes
front end importance)
Project Organization - 3 types
- functional organizations: companies are stuctured by grouping peaple performing similar activites into departments
- project organizations : comanies are structured by grouping peaple int project teams on temporary assignments
- matrix organisations: companies are structured bycreating a dual hierarchy in which functions and projects have equal prominence
Functional oraganization form
- probably most common organizational type used in business for not project based organisations
- logic/common: group peaple departments performing similar activities into units →organizational links primarly among those who perform similar functions (accounting, marketing…)
- devision of labour in the functional structure (not basedd on the type of product or project ) but raher according to the type of work performed
- members routinely work on multiple projects or support multiple product lines
- specuializations and expertise in functional areas
*
Strenght Functional organizational forms for project management
+ projects can be developed within basic functional structure ( no disruption or change to firms design)
+ development of in depth knowledge and interllectual capital
+allows fpr standaard career paths
weakness Functional organizational forms for project management
– functional siloing makes it difficult to achieve cross functional cooperation
– lack of costumer focuse
– longer time to complete projects
– varyinfg interest or commitent
Project organizational Forms
- project organisations are set up with their exclusive focus at running projects
- examples: construction companies, boing airbus , softwear…
- each project is sekf contained business with a dedicated team
- better suited to eneble rapid and effetive coordination among diverse functions
- firm assigns ressources from functional pools directly to the project (for time they need it )
- project manager has only control over resources unit uses
- functional departments chief role is to coordinate project manager and ensure all resources they need are available
strenghts of project organizational forms for project management
- project manager sole authority
- improved communication
- effective decision making
- creation of project management experts
- rapid response to market opportunities
weakness of project organizational forms for project management
- expensive to set up and maintain teams
- chance of loyality to the project rather than to the firm
- difficult to maintain a pooled supply of interllectual capital
- Team member concern about future once project ended
Matrix organizational forms
- combination of functional and project activites (balance between unctional organization and project form)
- creates a dual hierarchy, there i a balance of authority between project emphasis and the firms functionla departmentalization(indviduals ar elinked to project and their function)
- each individual has two supervisors (project manager and functional manager)
strenghts of matrix organizationals forms
+ suited to dynamic envirnoments
+ equal emphasis on project management and functional efficiency
+promotes coordination across functional units
+maximizes scarce resources
weaknesses of matrix orgnizational forms for project management
– dual hierarchies mean to bosses
– negotiation required in order to share resources
– workers caught beween competing project and functional demand
2 forms of matrix organizational forms
Heavyweight matrix project organization form
- contains strong project links
- heavyweight project manager
- complete budget authority
- heavily involved in performance evaluation of the team mebers
- makes most of the major resource allocations decisions
- organization and functional managers have relatively little authority and control
- project team is considered as the primary orgaizational unit
- the notion of a team much more meaning than in functional organizations
Lightweight matrix projects organization
- weaker project links and realitively strong functional links
- the project manager :
- more coordinater and administrator
- updates schedules, arranges meetings ..
- no real authority and control in the project prganization
- functional managers are responsible for budget, hireing and firering and performance evaluation
Summary of organizational forms
Choosing an Organizational Structure
- which organizational performance factors are most critical to success
- functional organizations : specializations and deep expertise in the functional areas
- project organizations: enable rapid and effective coordination among diverse function
- Question needs to be answered:
- how important is cross functional integration
- How critical is cutting edge functional expertise to business success?
- Can individuals from each function be fully utilized for most of the duration of a
project? - How important is product development speed?
three forms of Project management office
- Supportive low control; consultative and provide P M resources and training
- Controlling moderate control; requires compliance to adopted P M
standards/processes - Directive high control; directly manages projects
Phase 1 -Concept
- cost estimation
- risk management
- economics
- quality management
- project organization
Phase 2 - Design and planning
- design
- scope management
- time planning (critical path methode)
Phase 3 - Implementation or Execution ??
Phase 4 - Commission and /or Handover
