Project Life Cycle – Project Initiation

© Ed Green Penn State University All Rights Reserved

04/20/23 Project Life Cycle - Project Initiation 2

Topics

Meaning and importance (of project initiation)Six (6) phases of initiationTask-Analysis Diagrams

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Meaning and Importance

Set of start up activities“Get off on the right foot” Establish critical relationships Develop understanding Frame the effort

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Phases of Project Initiation

Develop business caseConduct feasibility studyDefine terms of referenceAppoint project team Create project officeConduct stage-gate

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Task-Analysis Diagrams

Purpose – describe the work efforts within a particular task in detailStructure Inputs Process Steps Outputs

Connects tasks together to (help) frame the work effort

ProcessSteps

Inputs Outputs

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Task-Analysis Diagrams

List of inputsrequired toperform thetask

List of outputsproduced byperforming thetask

Task Name

Process Steps

Boundary conditionto begin

Boundary conditionto finish

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Project Initiation Overview

1. Develop the BusinessCase

1. Examine needs2. Formulate problem

statement3. Develop/state

business reasonsand benefits

4. Summarize propose project

5. DocumentRecognizeBusiness Need orCondition

2. Conduct FeasibilityStudy

1. Verify consistency with business plan.

2. Assess technology needs.3. Verify consistency with

technology plan.4. Determine business

priority.5. Verify consistency with

corporate policies andagreements

6. Determine resourceadequacy (labor andmaterials

7. Document

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Project Initiation Overview

3. Establish ReferenceFramework

1. Formulate/defineproject scope

2. Identify constraintsand boundary conditions

1. Legal2. Labor3. Materials

3. Formally state projectobjectives

4. Document

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1. Identify needed skills andrelevant expertise.

2. Assess labor pool; identifycandidate personnel.

3. Define training needs.4. Identify personnel needs.5. Conduct interviews.6. Select the team.7. Publish.

ReferenceFramework

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Project Initiation Overview

5. Establish a ProjectOffice

1. Establish a projectwork area.

2. Define the projectorganizationstructure

3. Create the (sub)teams.

4. Appoint the project leadership

5. Document andpublish.

4ProjectOffice

6. Perform State-Gate

1. Conduct management review

2. Receive managementdecision

ManagementDecision

2

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1. Develop the Business Case

Includes Problem statement/business opportunity Set of available options

Known costs and associated benefits Perceived feasibility Potential risks Key issues/concerns Assumptions made

Recommendation State preferred solution Rank alternatives Implementation approach

Responsible party – user or customer

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2. Conduct a Feasibility Study

Research the environment External Internal

Business vision Business units Business location Relevant business information Relevant business technologies

Research business problem Business processes Business units Business locations Business technologies Business opportunities

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2. Conduct a Feasibility Study

Identify requirements Business drivers Business requirements

Conduct the feasibility study Identify potential solutions

Assess each solution Measure results Identify risks Prioritize issues List assumptions

Rank the outcomes (results) Define ranking criteria Assign scores

Identify the feasibility outcome

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3. Establish Reference Framework

Identify project visionState project objectivesDescribe limiting conditionsDescribe generic project organization

Customers Stakeholders Roles/responsibilities

Create first-level project plan Schedule Resources Financial Quality

List project considerations Risks Issues Assumptions Risks Constraints

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4. Create the Project Team

Job descriptions Responsibilities Organization Relationships Skills Experience Qualifications Personality Performance criteria Work Environment Salary Work Environment

Resource assessments

Skill assessment Current staff Open positions

Add-to-staff versus leased labor

Training needs Credentialing

requirements

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5. Establish a Project Office

Identify/create/furnish project work areaDefine the organization structure Assign leadership Name teamsImplement standards for workDefine appropriate processesCreate necessary templatesDefine communication Within the team Outside the team

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6. Perform Stage-Gate

Management review of work performed during project initiation phase.Go/No go decision to proceed to next (planning) phase