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Project Life Cycle

Project Life Cycle?


1. 2. 3. 4. 5. 6. Wild enthusiasm Disillusionment Total confusion Search for the guilty Punishment of the innocent Praise and honors for the nonparticipants
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Project Life Cycle


The prevailing view of the project life cycle is that projects go through distinct phases, such as: Conceiving and defining the project Planning the project Implementing the plan

Completing and evaluating the project


Operate and maintain project
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The Project Cycle


The Baum Cycle (World Bank) The UNIDO Cycle The New Project Cycle of the World Bank The Integrated Project Planning & Mgt Cycle (IPPMC) Goodman & Love Others The Development Project Management Center (DPMC cycle) 1976 The Rondinelli Cycle 1977

PROJECT CYCLE - UNIDO


Identification Expansion/Innovation Replacement/Rehab Operational ilitation Phase Commissioning & Start-up Preinvestment Phase

Pre-selection Preparation

Appraisal
Negotiations & contracting

Investment Phase

Engineering Design

Training Pre-production marketing


Construction
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Construction Project ex
A typical construction project has the following seven phases (Kerzner, 1998):
1. Planning, data gathering, and procedures

2. Studies and basic engineering 3. Major review 4. Detail engineering 5. Detail engineering/construction overlap 6. Construction 7. Testing and commissioning
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Development Planning & Project Planning


Development Policy
Development Strategy Sectoral Strategy Sectoral Objectives Projects Sectoral Strategy Sectoral Objectives Projects Sectoral Strategy Sectoral Objectives Projects
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High

R E S O U R C E S Low
Conceiving Planning Implementing PHASES Completing
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Project Planning is used to:


Guide project execution Document project planning assumptions Document project planning decisions regarding alternatives chosen Facilitate communication among stakeholders Define key mgt reviews as to content, extent & timing Provide a bas for progress mgt & control
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High

Ability to influence project quality, cost & schedule

Cost to influence project quality, cost & schedule

High

Low Conceiving Planning Implementing

Low Completing
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Project Organization

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Functional Organization
Chief Executive

Functional Manager

Functional Manager

Functional Manager

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

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The Project as Part of the Functional Organization


Advantages of using the functional elements of the parent organization as the administrative home for a project include:
Maximum flexibility in the use of staff Individual experts can be utilized by many different projects Specialists in the division can be grouped to share knowledge and experience The functional division also serves as a base of technological continuity when individuals choose to leave the project The functional division contains the normal path of advancement for individuals whose expertise is in the functional area

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The Project as Part of the Functional Organization


There are also disadvantages to housing the project in a functional area:
The client is not the focus of activity and concern The functional division tends to be oriented toward the activities particular to its function

Occasionally, no individual is given full responsibility for the project


There are often several layers of management between the project and the client There is a tendency to sub-optimize the project

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Projectized Organization
Project Coordination
Chief Executive

Project Manager

Project Manager

Project Manager

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

White boxes represent staff engaged in project activities

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Pure Project Organization


Advantages of a pure project organization:
The project manager has full line authority over the project
All members of the project work force are directly responsible to the project manager When the project is removed from the functional division, the lines of communication are shortened When there are several successive projects of a similar kind, the pure project organization can maintain a permanent cadre of experts who develop skills in specific technologies

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Pure Project Organization


Disadvantages of a pure project organization:
Each project tends to be fully staffed which can lead to a duplication of effort in every area from clerical staff to technological support
There is a need to ensure access to technological knowledge and skills that results in an attempt by project managers to stockpile equipment and technical assistance The functional division is a repository of technical lore, but it is not readily accessible to team members of the pure project team

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Pure Project Organization


Disadvantages of a pure project organization (cont.)
Pure project groups seem to foster inconsistency in the way in which policies and procedures are carried out In a pure project organization, the project takes on a life of its own There tends to be concern among team members about life after the project ends
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The Matrix Organization


The matrix organization is a combination of functional and pure project
A matrix organization can take on a wide variety of specific forms
Project or strong matrix organization most resembles the pure project organization
The coordination or functional or weak matrix most resembles the functional form The balanced matrix lies in between the others
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Strong Matrix Organization


Chief Executive

Functional Manager

Functional Manager

Functional Manager

Manager of Project Managers

Staff

Staff

Staff

Project Manager

Project Coordination

Staff

Staff

Staff

Project Manager

Staff

Staff

Staff

Project Manager

White boxes represent staff engaged in project activities

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Weak Matrix Organization


Chief Executive

Functional Manager

Functional Manager

Functional Manager

Staff

Staff

Staff

Project Coordination

Staff

Staff

Staff

Staff

Staff

Staff

White boxes represent staff engaged in project activities

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The Matrix Organization


As with other organizational forms, the matrix

organization has its own unique advantages:


The project is the point of emphasis Because the project is overlaid on the functional divisions, the project has reasonable access to the reservoir of technology in all areas There is less anxiety about what happens when the project is completed

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The Matrix Organization


Advantages of a Matrix (cont.)
Response to clients needs is as rapid as in the pure project organization Matrix management gives the project access to representatives from the administrative units of the parent firm The matrix organization allows a better company-wide balance of resources to achieve goals There is a great deal of flexibility in precisely how the project is organized within the matrix
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The Matrix Organization


There are also disadvantages to using the matrix organization; most involve conflict between the functional and project managers:
The balance of power between the project and functional areas is very delicate The movement of resources from project to project may foster political infighting Problems associated with shutting down projects can be as severe as in a pure project organization

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Composite Organization
Chief Executive

Functional Manager

Functional Manager

Functional Manager

Manager of Project Managers

Staff

Staff

Staff

Project Manager

Project B Coordination
Staff Staff Staff Project Manager

Staff

Staff

Staff

Project Manager

Black boxes represent staff engaged in project activities

Project A Coordination 25

Project Managers Role Over the Project Life Cycle:


Planning

Organizing
Staffing

Directing
Controlling General mgt skills provide much of the foundation for building project mgt skills
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