PROJECT LIFECYCLEMOHD RUSHDY BIN YAACOBRAFIKULLAH BIN DERAMAN

POLISAS

CC603: PROJECT MANAGEMENT

CHAPTER 2:

PROJECT LIFECYCLE• The Project Life Cycle refers to a logical sequence of

activities to accomplish the project’s goals or objectives.

• Regardless of scope or complexity, any project goes through a series of stages during its life. There is first an Initiation (Defining) or Birth phase, in which the outputs and critical success factors are defined, followed by a Planning phase, characterized by breaking down the project into smaller parts/tasks, an Execution phase, in which the project plan is executed, and lastly a Closure or Exit phase, that marks the completion of the project.

PROJECT LIFECYCLE• Project activities must be grouped into phases because

by doing so, the project manager and the core team can efficiently plan and organize resources for each activity, and also objectively measure achievement of goals and justify their decisions to move ahead, correct, or terminate.

• It is of great importance to organize project phases into industry-specific project cycles.

• Why? Not only because each industry sector involves specific requirements, tasks, and procedures when it comes to projects, but also because different industry sectors have different needs for life cycle management methodology.

CHARACTERISTICS OF PROJECT LIFECYCLE

• Costs and staffing levels are low at start, peak during the intermediate phases and drop rapidly at end

• Level of uncertainty is highest at start• Stakeholder influence highest at start• Phases can be subdivided into sub phases• Each phase concludes with a review to determine

acceptance• Phase can be closed without initiating any other

phases

PROJECT LIFECYCLE•Another way of illustrating the unique nature of project work is in terms of the project lifecycle.• Because the project has a beginning and end, it is said to have a lifecycle. • A number of writers have sought to define this lifecycle in terms of a set discrete stages through which the project passes. For example, Rustain and Estes (1995) define a lifecycle, which commences with a concept phase and concludes with a post accomplishment phase as shown in figure 1.2. •Four intermediate phases are identified.

FOUR PHASES

THE FOUR PHASES ARE:

PROJECT LEVEL OF INTENSITY

• The starting point begins the moment the project is given the go-ahead. Project intensity as shown in figure 1.3 starts slowly, builds to a peak, and then declines to delivery of the project to the customer.

PROJECT LEVEL OF INTENSITY

DEFINING/INITIAL STAGE• In the defining stage, specifications and

project objectives are define. Teams and the roles and responsibilities for each member are established at this stage.

• In this first stage, the scope of the project is defined along with the approach to be taken to deliver the desired outputs. The project manager is appointed and in turn, he selects the team members based on their skills and experience.

DEFINING/INITIAL STAGE

• The most common tools or methodologies used in the initiation stage are Project Charter, Business Plan, Project Framework (or Overview), Business Case Justification, and Milestones Reviews.

PLANNING STAGE

• The second phase should include a detailed identification and assignment of each task until the end of the project. It should also include a risk analysis and a definition of a criteria for the successful completion of each deliverable.

• The governance process is defined, stake holders identified and reporting frequency and channels agreed. The most common tools or methodologies used in the planning stage are Business Plan and Milestones Reviews.

PLANNING STAGE• The level of intensity increases in the planning stage.

Plans are developed to determine 4W’s. What are the 4W’s?

Work Breakdown Structure• To achieve successful contract and corporate

objectives, it needs proper planning to identify responsibilities and element in the construction project.

• The FIRST STEP in preparing planning is develop Work Breakdown Structures (WBS).

• WBS – table or figure to show each steps in project.

Work Breakdown Structure

• It describes the work elements of a project in a logical hierarchy which can be used for a number of related management control activities.

• A WBS is a product-oriented family tree composed of hardware, services, and data which result from project engineering efforts during the development and production of a defense material item, and which completely defines the project/program.

MIL-STD-881A "Work Breakdown Structures for Defense Material Items"

• A WBS displays and defines the products to be developed or produced and relates the elements of work to be accomplished to each other and to the end product.

Work Breakdown Structure (Design Principles -The 100% Rule)

EXECUTION PHASE

• Next, a major portion of the project work takes place at the executing stage. Both physical and mental resources are needed at this stage to produce a physical product. Time, cost and quality are used for control.

• The most important issue in this phase is to ensure project activities are properly executed and controlled.

EXECUTION PHASE• During the execution phase, the planned

solution is implemented to solve the problem specified in the project's requirements. In product and system development, a design resulting in a specific set of product requirements is created.

• This convergence is measured by prototypes, testing, and reviews. As the execution phase progresses, groups across the organization become more deeply involved in planning for the final testing, production, and support.

DELIVERING STAGE

• Finally, is delivering stage which includes the two main activities;

a. Delivering the project product to the customer b. Redeploying the project’s resources• In this last stage, the project manager must

ensure that the project is brought to its proper completion.

DELIVERING STAGE

• The delivering or closure phase is characterized by a written formal project review report containing the following components: a formal acceptance of the final product by the client, Weighted Critical Measurements (matching the initial requirements specified by the client with the final delivered product), rewarding the team, a list of lessons learned, releasing project resources, and a formal project closure notification to higher management. No special tool or methodology is needed during the closure phase.

Project Execution and Monitoring -Project Planning, Scheduling and Controlling-

Chapter Concepts

The responsibilities of the project managerThe skills needed to successfully manage projects and ways to develop project manager competenceHow the project manager can manage and control changes to the project

Project Manager Responsibilities

Customer satisfactionWork scope completion Quality manner, within budget, on time

Planning the projectSecuring and organizing the appropriate resourcesControlling the project progressCoordinate with teamControl the project

Important Skills for The Project Manager

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Important Skills For Project Manager

Leadership Skills

Resource management, human relationship

skills

Communication Skills

NegotiatingSkills

Marketing, contracting customer relationship Skills

Budgeting and cost Skills

Scheduling & time management

Skills

Technical Skills

CONCEPT OF GOOD LEADERSHIP FOR PROJECT MANAGER

Project Manager Responsibilities – Planning

Define project objectiveReach agreement with customerCommunicate objective to project teamCreate vision of successful accomplishmentSpearhead plan developmentReview plan with customerUse project management information system

Project Manager Responsibilities – Organizing

Secure appropriate resourcesDetermine in-house tasksDetermine need for subcontractor Assign responsibilityDelegate authorityCreate motivating environmentManage time wellHave self-disciplineBe able to prioritizeShow a willingness to delegate

Project Manager Motivating

Train and develop the project teamBelieve that all individuals are valuableEncourage initiativeIdentify situations for mentoringAssess opportunities for growthEncourage self reflection for learning

Project Manager Directing

Achieve results through the project teamUse a participative and consultative leadership styleProvide guidance and coaching to the project teamRequire involvement and empowerment of the project teamEstablish an environment of trust, high expectations, and enjoymentHave self confidenceExhibit confidence in the project teamDevelop a relationship with each team member

Project Manager Directing

Maintain interpersonal relationships for duration of the projectInfluence the thinking and actions of othersDeal with disagreements or divisivenessBe a good problem solverStart with the early identification of a problem or potential problemEncourage project team members to identify problems early and solve them

Project Manager Communicating

Be good communicatorsCommunicate and share informationSpend more time listening than talkingInform the customer of progressDetermine any changesProvide timely feedback to the team and customerEmploy negotiating skills in interactionsDevelop a trusting relationship with the other personUse effective listeningTake cultural differences into considerationStrengthen relationships, not erode them

Project Manager Responsibilities – Controlling

Track actual progressCompare progress to planned progressTake necessary actionsPlay the leadership roleInvolve project teamMust be able to handle the stressRemain calmCope with constantly changing conditionsAct as a buffer between the project team and either the customer or upper managementHave a good sense of humorKeep physically fit to improve ability to handle stress

Managing Change

Initiation of Change

By the customerBy the project teamCaused by unanticipated occurrencesRequired by the users of the project results

Manage and Control Change

Establish procedures for communicationEstimate impact of changeDecide about the changeCustomer approves change

SummaryIt is the responsibility of the project manager to make sure that the customer is satisfied that the work scope is completed in a quality manner, within budget, and on time.

The project manager has primary responsibility for providing leadership in planning, organizing, and controlling the work effort to accomplish the project objective.

The project manager is a key ingredient in the success of a project and needs to possess a set of skills that will help the project team succeed.

Project manager competence can be developed through a number of activities, individually or with others.

The project manger manages and controls changes to minimize any negative impact on the successful accomplishment of the project objective.

RESOURCES IN THE PROJECT MANAGEMENT

RESOURCES IN THE PROJECT MANAGEMENT

Labour resources management

• Labour resource management is an important aspect that require serious consideration during project development.

• It is made up of between 20-30% of total construction cost.• To ensure the success of a project, one has to properly

manage labour. Managing labour involved planning, organizing, monitoring and control.

• Improper labour resources management can cause problems during the construction stage.

• Problem related to labour are:a) Unskilled labour – poor workmanship, lack of experience &

trainingb) Shortagec) Poor supervision – lack of supervisor, lack of experienced) Slow mobilisation – low motivation, poor access

Material resources management

• The cost of construction materials can be in the range of between 20-40% of total construction cost.

• Appropriate control is required to ensure the actual cost is in between budget.

• Material resources are supplies and stocks that are needed to complete a project.

• Quality of materials are a set of specified standard that usually stipulated in the contract documents

• Wastage on construction site can be in between the range of 3-8% of total materials usage.

• It is important to control wastage at site to increase profitability and reduce the impact on environment.

• Materials affect dates or duration only when you have to wait for those materials to become available.

• Several causes that lead to waste at construction site are:a) Weather – flooding, long exposure, decayb) Lost / stolenc) Requisition – wrong order, extra quantity of orderd) Cutting & handling – no planning in cutting, improper

handlinge) Quality materials

Plants and equipment

• One of the most important resources to be managed is plant and equipment.

• The cost may varies from the range of 20-40% of total construction cost.

• Appropriate planning and acquiring of machineries can help to reduce or avoid the problems face during construction stage.

• Planning and scheduling of machineries / equipment must be indicated on the work programmed. Requisition on acquiring must be made once the decision has been made to use a particular machinery.

• Analysis of leveling on the usage of machineries/equipment can guide the managers to make critical decision.

• Undoubtedly, critical activities will be given the most priority.• If during a particular day, 2 or more activities require the use of

same equipment, hence priority must be given to the critical activity.

• Despite careful planning and acquisition, problems may still occur during construction stage.

• The problem that faced by the contractor during the construction progress are:

a) Breakdown – no maintenance, over usageb) Shortage – unplanned, several activitiesc) Inefficient – unskilled operations, under capacityd) Stolen – no security, no hoardinge) Unavailability – unaware of market availability, no requisition

Acquisition of machineries/ equipments

• The decision to acquire construction machineries/equipment has to be considered seriously cause the capital required is very high. The cost of some machineries can be in the range of several hundred thousand to million ringgit.

• If decided to purchase and own a particular machine, one has to take into account services such as maintenance, rental, cost account, etc.

• Acquiring construction machineries can be considered through several option as shown in figure below.

OVERHEADS• Management cost company is expense rate bear by the company to

manage and administer staff and office equipment. • Matter subject include :a) Pay, allowance and other payment to all employees of the company.b) Office rental, storehouse store, workshop and others.c) Electric payment, phone, post, insurance, telegraph and others.d) Office equipment as furniture, typewriter, computer, photocopier,

paper, stationery and others.e) Payment to operate workshop and for equipment no motorized.

PROFIT• To ensure contractor business can run perfectly, then

company need some allocation to accommodate cost management and administration liability something contract.

• Profit rate count by percent from all material cost, labour and plant. Profit calculated is gross profit ( gross profit ). Gross profit comprise from:

a) Net profit ( nett cost )b) Overhead Cost ( overhead )