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 PROJECT LIFECYCLE AND PHASES

 Project can be planned in

phases, from birth to death;
beginning to end. Start with end
in mind
 Plan uncertainties for long term.
Detailed plan possible for short-
term; early phase of cycle
 Rough plan and end states for
long-term. End of earlier
phases as basis for detailed
planning of later phases-
reduced uncertainties, clearer
picture
Cont …

 Phases and milestones: Projects temporary hence

clear life cycle. Ensure visibility of project life cycle.
 Long-term delivery dates and total costs commitments
should be officially agreed to as project progresses.
 Teams members, project management & skills needs
decided on phase by phase. Success of each phase
improves motivation
 Comparison with product life cycles: Project
deliverables can be tangible or non-tangible. Buildings,
parks, mine shaft, plant/factory, elections, census,
sports
 PROJECT LIFECYCLE AND PHASES

 The project lifecycle is the first phase of the product

lifecycle- Product is being born. Consider it in projects
 The product then grows, matures and dies/is
disposed or decommissioned. Goes through
operation and maintenance (refurbishment)
 The typical Project Phases: Not standardised.
Typical ones include;
1. Clarifying the need for the project- To solve an
existing problem; Exploit a business opportunity;
Define need well before project proceeds
2. Feasibility studies- Often part of first phase. Can
assess market needs, capital and running costs,
revenue, viability, profitability, comparison of
alternative ideas. Decide to proceed or terminate the
project idea
3. Definition for design and development- Develop
and refine proposed solution or plan. Deliver proposal
to stakeholders showing deliverables, costs &
schedule. Also called the main planning phase
4. Implementation or project execution- Proposed
solution implemented. Most of the physical work in the
project done in this phase. Most effort, can have many
sub-phases
5. Hand over to the client and project closure- Product
or sevice accepted and final settlements done. Plant
commisioning. Document lessons learnt during
implementation for future use.
6. Support or Maintenance- May need to assist client with
operation or maintanance. Does not apply to all projects
 R&D projects may have different phases like: 1. Project
Selection- Screening, evaluation and selection; Project
execution- Technology development, product
development & performance demonstration;
Implementation- Production, marketing & sales.
 Can develop unique phases depending on project nature
& type. Determines mgment pratices, structure, policies,
checklists, culture & procedures, phase by phase
 PROJECT LIFECYCLE AND PHASES

 Sasol Technology project phases are: Pre-feasibility,

Feasibility, Basic Development, Execution (detail design,
procurement & construction), Start-up and handover,
Evaluation and operation.
 Milestones: Riview points between phases. Look back at
what has been covered, ahead on what needs to be done.
Like a mile/kilometre peg. Any significant event in the
project where important deeliverables are reviewed &
recommendations for further work considered & authorised.
 Important for all stakeholder- progress reports, results,
expenditures. Terminate, redo, replan, approve, pay for
work done so far. Assess new detailed plans and risks.
 Authorise- See Figure 2.1. Gates and gate keepers. New
plan is the baseline or point of departure, not to be changed
without approval by key stakeholders.
 Can overlap project phases. This is called fast tracking.
Accelerates project, can be risky- manage carefully. Do
examples 1 and 2 on building and wedding projects
2.2 PROJECT LIFECYCLE AND PHASES

 Avoid changing of project requirements. Can destroy project.

Agree on any changes and analyse impacts during milestobe
reviews
 At each milestone, consolidate & review; Look back, measure
performance & approve; Look ahead, evaluate risks and
authorise next activities; Manage changes; Make payments
and; Praise, celebrate achievements
 Phases, Risks & Uncertainties: Turbulence and
uncertainties are reduced as project progresses. Prototypes
are built and tested and most early activities reduce/ eliminate
uncertainties. Project cost and progress uncertainties are also
reduced
 Work flow is eventually smoothed out, and rework is avoided.
Initially innovative individuals needed who enjoy ambiguity and
change. Later on need more systematic and structure
individuals who enjoy stability, routine, systems, procedure
and no change
 At project inception, Proj. Mgr must be supportive,
participating & flexible. Contractors paid per hour.
2.2 PROJECT LIFECYCLE AND PHASES

 Later on fixed price contracts. Last stages of project- more

systematic, directive & controlling approach. Driver
personality needed by mgr to ensure concurrent execution
of activities to meet due date. More risk averse
 Uncertainties like weather, exchange rates, inflation rate are
not controllable. Be aware of such risks and plan to avoid
them by fast tracking or other means.
 Estimates based on extensive experience can be used. For
example cost of house per square metre.
 See Figure 2.3 for an example of a project lifecycle
 The S-curve of project progress: Initially progress and
expenditure is slow. Later the accelarate and slow down
towards end of project creating S-curve of expenditure. See
Figure 2.4.
 Due Dates: First type of projects has to be completed ASAP
to exploit market opportunity, increase market share/ profits.
Type 2 projects completed by due date- studying for exam,
christmas dinner or election.
 2.2 PROJECT LIFECYCLE AND PHASES

 Also 2 types of project phases. First type milestone have to be

reached ASAP. 2nd tpye phase has to be completed on a
specific date
 Project execution initially results in –ve cash flow. Rest of
product life must give +ve cash flow and cover initial costs &
give profit. Avoid project delays & market share loss. See
Figures 2.5 (a) and 2.5 (b) on financial implications of project
duration and extended duration
 Project duration reduction at extra cost can be justified,
optimise total product cycle
 Concurrent Development/ Engineering: Different functional
areas involved all project stages concurrently.
 Functional phases combined and done simultaneously to
shorten development times. Use of cross-functional teams and
development of multi-function skills
 Improves quality of deliverables, reduced cost, improves
organisational culture & team work, promotes free information
flows, reduces project duration and dismantles barriers or
compartments
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