FUNDING OF PROJECTS

The project plan is the official document for securing funding from the sponsor
in the user organization. The project plan must be completed and approved by
the project manager before activity can begin on the user requirements subphase
(1b). An initial stage in developing a project plan includes the drawing of a network
that identifies each of the tasks to be done in the appropriate sequence for
their execution. The project plan must include a milestone schedule, a cost estimate,
and a budget request. It is submitted to the appropriate general manager of
systems and programming for review so that an understanding can be reached of
how the estimates were prepared and why the costs and schedules are as shown.
At this time the general manager can get an idea of the quantity of systems and
programming resources required by the project. The general manager next sets
up a meeting with the project manager and the user sponsor to review the project
plan and obtain funding from the user organization.
The initial project funding is based on an estimate that includes a number of
assumptions concerning the scope of the project. Once certain key milestones in
62 MIS PROJECT MANAGEMENT AT FIRST NATIONAL BANK
the project have been achieved, the visibility on the balance of the project becomes
much clearer, and reestimates are performed. The reestimates may result
in refunding if there has been a significant change in the project. The normal
milestone refunding points are as follows:
1. After the advisability study (1d)
2. After the preliminary systems design (2a)
3. After the program design (2c)
4. After system implementation (3a)
The refunding process is similar to the initial funding with the exception that
progress information is presented on the status of the work and reasons are given
to explain deviations from project expenditure projections. A revised project plan
is prepared for each milestone refunding meeting.
During the systems design and development stage, design freezes are issued by
the project manager to users announcing that no additional changes will be accepted
to the project beyond that point. The presence of these design freezes is outlined at
the beginning of the project. Following the design freeze, no additional changes will
be accepted unless the project is reestimated at a new level and approved by the user
sponsor.