WEEK 2 Project Life Cycle and Organization Structures

The Project Life Cycle Because projects are unique undertakings, they involve a degree of uncertainty. Organizations performing projects will usually divide each project into several project phases to improve management control and provide for links to the ongoing operations of the performing organization. Collectively, the project phases are known as the project life cycle. A project life is a collection of generally sequential and sometimes overlapping project phases whose name and number are determined by the management and control needs of the organization or organizations involved in the project, the nature of the project itself, and its area of application.

Characteristics of the Project Life Cycle Projects vary in size and complexity. No matter how large or small, simple or complex, all projects can be mapped to the following life cycle structure -Starting the project -Organizing and preparing, -Carrying out the project works -Closing project

Characteristics of the Project Life Cycle - Cost and staffing levels are low at the start, peak as the work is carried out, and drop rapidly as the project draws to a close

Characteristics of the Project Life Cycle Stakeholder influences, risk, and uncertainty, are greatest at the start of the project. These factors decrease over the life of the project Cost of changes and correcting errors typically increase as the approaches completion.

Project Phases Project phases are divisions within a project where extra control is needed to effectively manage the project. Project phases are typically completed sequentially, but can overlap in some project situations. The phase structure allows the project to be segmented into logical subsets for ease of management, planning, and control. The number of the phases, the need of phases, and the degree of control applied depend on: -Size -Complexity -Potential impact of the project Regardless of the number of phases, all phases have similar characteristics.

Project Phases Although many projects may have similar phase name with similar outputs, few are identical. Some will have only one phase, and others may have many phases. Different phases typically have a different duration or length. One project team might divide a project into two phases where a different team might choose single phase. So it depends on the nature of the project and the style of project team or organization.

Phase to Phase Relationships When projects are multi-phased, the phases are part of a generally sequential process designed to ensure proper control of the project and attain the desired product, service, or result. However, there are situations when a project might benefit from overlapping or concurrent phases. There are three basic types of phase to phase relationships:

Phase to Phase Relationships A sequential relationship where a phase can only start once the previous phase is complete. The step by step nature of this approach reduces uncertainty, but may eliminate options for reducing the schedule

Phase to Phase Relationships An overlapping relationship, where the phase starts before completion of the previous one. This can sometimes be applied as an example of the schedule compression technique called fast tracking. Overlapping phases may increase risk and can result in rework.

Phase to Phase Relationships An iterative relationship, where only one phase is planned at any given time and the planning for the next is carried out as work progresses on the current phases and outputs. This approach is useful in largely undefined, uncertain, or rapidly changing environments (research) For multi-phase projects, more than one phase to phase relationship could occur during the project life cycle. All three relationships could occur between different phases of a single project.

Stakeholders Stakeholders are persons or organizations, who are actively involved in the project. -Customers -Sponsors -Public -Suppliers -… Also project team is an other stakeholder. The project management team must identify both internal and external stakeholders.

Stakeholders Stakeholders have different levels of responsibility and authority when participating on a project and these can change over the course of the project life cycle.

Stakeholders Shareholder identification is a continues process and can be difficult. For example, it could be argued that an assembly-line worker whose future employment depends on the outcome of a new product-desing project is a stakeholder. Identifying stakeholders and understanding their relative degree of influence on a project is critical.

Stakeholders Customer/users The customers/users are the persons or organizations that will use the project’s product or service or result. Customers/users may be internal and/or external to the performing organization There may be multiple layers of customers. For example for a medicine doctors who prescribe it, the patients who use it, and the insurers who pay for it. Sponsor A sponsor is the person or a group that provides the financial resources, in cash or in kind, for the project. The sponsor leads the project through the engagement or selection process until formally authorized, and plays a significant role in the development of the initial scope and charter

Stakeholders Program managers Program managers are responsible for managing related projects in a coordinated way to obtain benefits and control not available from managing them individually. Program managers interact with each project manager to provide support and lead on individual projects Project management office A project management office is an organizational body or unit assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. The responsibilities of a PMO can range from providing project management support functions to actually being responsible for the direct management of project.

Stakeholders Project managers Project managers are assigned by the performing organization to achieve the project objectives. It requires flexibility, good judgment, strong leadership and negotiating skill, and a solid knowledge of project management practices A project manager must be able to understand project detail, but manage from the overall project perspective. Sellers/Business partners: Sellers, also called vendors suppliers, or contractors, are external companies that enter into contractual agreement to provide components or services necessary for the project Business partners are also external companies. But they provide expertise or fill a specified role such as training.

Organization Culture and Styles Cultures and styles may have a strong influence on a project’s ability to meet its objectives. Most organizations have developed unique cultures that manifest in numerous ways such as: Shared values, norms, expectations Policies, methods, and procedures View of authority relationships Work ethic and work hours.

Organizational Structure Organizational structure is an enterprise environmental factor which can affect the availability of resources and influence how projects are conducted

Functional Organizations The classic functional organization has a hierarchy where each employee has one clear superior. Staff members are grouped by specialty such as production, marketing, engineering.

Functional Organizations Advantages: Easier budgeting and cost control are possible Better technical control is possible It provides flexibility in the use of manpower It provides continuity in the functional disciplines It provides good control over personnel Communication channels are vertical and well established Quick reaction capability exists Disadvantages: No one individual is directly responsible for the total project Coordinating becomes complex Response to customer needs is slow Motivation and innovation are decreased There is no customer focal point

Projectized Organizations In a projectized organization team members are often co-located, most of the organization’s resources are involved in project work, and project managers have a great deal of independence and authority.

Projectized Organizations Advantages: It provides complete line authority over the project There are strong communications channels Very rapid reaction time is provided There is flexibility in determining time, cost, and performance trade-offs Interface management becomes easier as unit size is decreased Disadvantages There is a lack of opportunities for technical interchange between projects There is a lack of career continuity and opportunities for project personnel Control of functional specialists requires top-level coordination

Matrix Organizations Matrix organizations are blend of functional and projectized characteristics. Weak matrix organizations maintain many of the characteristic of a functional organization and the project manager role is more of coordinator than that of a true project manager.

Matrix Organizations Balanced matrix organizations recognize the need for a project manager, it does not provide the project manager with the full authority over the project.

Matrix Organizations Strong matrix organizations have full-time project managers with considerable authority.

Matrix Organizations Advantages: The project manager maintains maximum project control over all resources, including cost and personnel Policies and procedures can be set up independently for each project Rapid responses are possible to changes, conflict resolution, and project needs Because key people can be shared, the program cost is minimize There is a better balance between time, cost and performance Authority and responsibility are shared Stress is distributed among the team

Matrix Organizations Disadvantages: Multidimensional information flow Multidimensional work flow Dual reporting Continuously changing priorities More effort and time are needed initially to define policies and procedures

Selecting Organizational Form Unfortunately, many companies do not have a clear definition of what a project is. As a result, large project teams are often constructed for small projects when they could be handled more quickly and effectively by some other structural forms. The basic factors to select best organization form are: -Project size -Project length -Experience with project management organization -Project location -Available resources -Unique aspects of the project

Selecting Organizational Form And four fundamental parameters must be analysed when considering implementation of a project organizational form. -Integrating devices -Authority structure -Influence distribution -Information system Also some additional factors: -Diversity of product lines -Rate of change of the product line -Interdependencies among subunits -Level of technology -Organizational size

Selecting Organizational Form Projectized organizations: -If there are numerous similar projects -If there is one project and if it is more technical and needs intensive monitoring process Matrix organizations: -If the project needs integration of more than one functional units Functional organizations: -If the project needs huge amount of capital -If some technologies are applied in depth

Process Of Project Initiation Process -Defining the major goals of the project -Determining project selection criteria -Assigning the project manager -Obtaining the sign-off of the project charter Planning Process -Determining project outputs -Writing and publishing a scope statement -Establishing a project budget -Defining project activities and estimates -Developing a schedule

Process Of Project Executing Process -Developing and forming project team -Directing and leading the project team -Obtaining other project resources -Conducting status review meetings -Communicating project information -Managing project progress -Implementing quality assurance procedures Monitoring and Controlling Process -Measuring performance against the plan -Taking corrective action when measures are outside the limits -Evaluating the effectiveness of the corrective actions -Ensuring that project progress continues according to the plan -Reviewing and implementing change requests

Process Of Project Closing Process -Obtaining acceptance of project outputs -Documenting the lessons learned over the course of the project -Archiving project records -Formalizing the closure of the project -Releasing project resources