Project Initiation

Project Initiation Report

This summarizes the results of the Project Initiation stage of the project and recommends
proceeding to the next stage. It defines what work is to be done, what is to be delivered,
how long it will take, by whom, how much it will cost and why it is worth doing.
Project Initiation Report.......................................................................................................1
1 Background.................................................................................................................1
2 Project Objective.........................................................................................................1
3 Project Scope..............................................................................................................2
4 Project Approach.........................................................................................................7
5 Project Organization....................................................................................................9
6 Project Controls........................................................................................................11
7 Business Case............................................................................................................13
8 Risk Analysis.............................................................................................................15
9 Recommendation & Next Steps................................................................................16
Appendix A: Project Plan.............................................................................................17
Appendix B: Business Case..........................................................................................18
Appendix C: Risk Analysis Score Sheet.......................................................................19

1 Background
Provide in one or two short paragraphs enough information to put this project into the
context of the existing business and systems. State the business problem that the project
will address.

2 Project Objective
To:
• project objective...
in a way that,
• qualify the way the project is to be carried out...
• qualify the way the project is to be carried out...
so that:
• business objective...

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3 Project Scope
Dimension of Scope - Information Flow
Scoping Diagram

data
Strategic
Marketing
Customer
data Service data

data Software R&D

data
data
Customer data
Assembly &
data
Test
Core Products
Engineering
data
data Quality
data Improvement
data
Finance &
Operations

In Scope
• bullets...
• bullets...
Out of Scope
• bullets...
• bullets...

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Dimension of Scope - Data

Data Model

Geographic
Region

Customer Product

Order Inventory

In Scope
• bullets...
• bullets...
Out of Scope
• bullets...
• bullets...

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Dimension of Scope - Business Process

Data Flow Diagram (Level 1)
0 Level 1 Order Processing DFD

3
Supplier
Orders
1 1 5
Product Data(New) Setup New Product Product Details Product Details Initiate Purchase Order
Material Control D Product
2

Supplier Details Orders(Copy)

Inventory
Supplier And Price Data(New) Orders
3 2
Setup Suppplier And Price D Inventory D Orders Goods In
4 1
Inventory
Receipt Note

Supplier Details Receipt Note

2
D Deliveries Receipt Note Post Receipts To Stock
5
Receipt Note(Valid)

D Supplier
3 4 3
Invoice
Pay Supplier Supplier
Name Address(Valid)
Remittance

In Scope
• bullets...
• bullets...
Out of Scope
• bullets...
• bullets...

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Dimension of Scope - Miscellaneous

Diagram
Any appropriate diagram or matrix...
In Scope
• bullets...
• bullets...
Out of Scope
• bullets...
• bullets...

Initial Requirements
Provide a summary list of the initial requirements to assist the scoping of the project.
The list is not exhaustive and the requirements will be significantly expanded during
the next stage...

Ref. Requirement Name

Training Requirements
List initial training requirements for the project team to execute the project...
List initial client training requirements to use the application...

Constraints
The project end result is needed by...
The maximum cost of the project is...
The inter-project dependencies are...

Assumptions
List all scoping assumptions...
• Scoping assumption...

Outline Solution
Optionally include a diagram and narrative of a proposed outline solution to illustrate
the feasibility of achieving the objectives of the project...

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Measurements of Success
List the criteria by which the project will be measured for success:
• Success criteria...

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4 Project Approach
Stages
This plan is intended to provide an initial schedule for the whole project. It will be
revised and validated at the end of each stage, as and when each detailed stage plan is
created. It has been developed with the minimum of analysis, with an incomplete
definition of scope and with only a sketched set of requirements. The project level
dates should be thought of as ranges, and on no account be regarded as accurate or
binding.

Stage Name Stage Description Product

To:
in a way that:
so that:

See Appendix A for a fully described stage & step WBS.

Optionally express the project approach in a narrative form, explaining the rationale for
the recommended approach...

Resource Requirement

Stage Roles Numbers Participation

List required additional hardware, software, equipment, etc.:

• hardware...
• software...

Project Schedule Summary

Stage Name Duration (days) Start (mm/yy) End (mm/yy)

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See Appendix A for PERT and Gantt charts.

Assumptions
List all assumptions made when defining the WBS, resource requirements, high level
estimates and schedule:
• project planning assumption...

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5 Project Organization

Project Board Key

Stakeholders

Project Project
Coordinators Manager

Key Project Team

Resources

Role Resource Organization Reqt.

Project Board
• Project Sponsor hrs/mth
• Business Partner
• Technical Partner
Key Stakeholders
• Client hrs/mth
• DEVELOPMENT hrs/mth
hrs/mth
• OPERATIONS
Project/Stage Manager hrs/wk
Project Team
• Client hrs/wk
• DEVELOPMENT hrs/wk
hrs/wk
• OPERATIONS
Project Coordinators
• Planning hrs/wk
• Business hrs/wk
hrs/wk
• Technical
Key Resources

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• Client hrs/wk
• DEVELOPMENT hrs/wk
hrs/wk
• OPERATIONS

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6 Project Controls
Quality Control Procedure
The stage plan will define all products to be produced and will identify the appropriate
client and technical resources to execute quality control. All products will be subject to
peer review and all defects will be recorded.
See Project Management & Control Process.

Progress Control Procedure

The stage plan will contain work (effort) estimates by task by resource. Actual work and
latest-estimate-to complete will be tracked on a weekly basis by task by resource. Actual
progress against schedule will be reviewed at weekly team status meetings.
The plan will be revised and re-issued to the project team.
The Project Manager will produce a weekly status report which will be distributed to the
Project Board, Key Stakeholders, project team and all interested parties.
See Project Management & Control Process.

Control Factors & Tolerance Parameters

The Project Board has decided that the general control factors for the project are:

Maximize Constraint Accept

Cost
Schedule
Performance

where, COST is the total amount (capital and expense dollars) spent to complete the
project; SCHEDULE is the duration of target completion date; and PERFORMANCE is
the quantity and quality of the interim and final products.
The Project Manager is permitted the following tolerance during a stage before an
exception situation occurs requiring Project Board intervention:

Positive Deviation Negative Deviation

Cost
Schedule
Performance

Change Control Procedure

The stage plan will identify the degree of change control to be applied to specific
products. The Project Manager will maintain the Request for Change Log.

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See Project Management & Control Process.

Issue resolution Procedure

The Project Manager will maintain an Issues Log to record and track the resolution of
Issues.
See Project Management & Control Process.

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7 Business Case
Initial Benefits
List the initial business benefits and quantify in financial terms. These initial benefits are
critical to justifying the project and setting realistic expectations...

Ref. Benefit $

Calculations and assumptions can be found in a Appendix B.

Initial Development & Conversion Costs

WBS Activity Title Rsc H/w S/w Proj Inst Misc Total
Cost Trng Trng

Initial Operational & Maintenance Costs

Qtr Rsc H/w S/w Inst Misc Total

Cost Trng
Qtr1
Qtr2
Qtr3
Qtr4

Calculations and assumptions can be found in a Appendix B.

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Breakeven Point
The project is expected to breakeven during the 4th Quarter after installation.

140

120

100

80
US Dollars

60

Accumulated Cost
40
Accumulated Benefits

20

0
Qtr1 Qtr2 Qtr3 Qtr4 Qtr5 Qtr6 Qtr7 Qtr8

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8 Risk Analysis
The risk analysis has determined the following levels of risk to the project:

Category Level
External Dependencies
Organizational
Planning
Business Case
Technical
Overall Project

The following specific risks may cause the project to fail to meet it's objective.
In narrative summarize the major risks and proposed counter measures...

Major Risk Counter Measure

See Appendix C for the Risk Analysis Score Sheet.

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9 Recommendation & Next Steps

The Project Manager recommends the following course of action:

State the recommended next steps with supporting arguments. Either recommend a "go",
"no go" or "defer until..." decision...

"Go" recommendation supporting arguments:

• It is important to do it because...
• It is important to do it now because...
• If nothing is done it will...
• The business justification is strong because...

"No Go" or "Defer until..." recommendation supporting arguments:

• There are inadequate resources...
• Lacks financial justification...
• If nothing is done...
If the Client Co-ordinator wishes to make a different recommendation, then state it here
with supporting arguments...

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Appendix A: Project Plan

WBS Description Report

WBS Activity Title Activity Description

Table produced from Process Engineer.

Products Report

WBS Product Title Product Description

Table produced from Process Engineer.

Resource Requirement Report

WBS Activity Title Produce Consult Review Approve

Parenthesis indicate resource equivalent

Table created from Process Engineer data.

Project Plan PERT Chart

Produced from Microsoft Project

Project Plan Gantt Chart

Produced from Microsoft Project

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Appendix B: Business Case

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Appendix C: Risk Analysis Score Sheet

Produced from RISK.XLS.

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