CHAPTER TWO

PROJECT LIFE CYCLE

INTRODUCTION

Projects usually go through a series of identifiable stages. Authors have described these as
the project cycle. Project cycle is the various stages through which project planning
process proceeds from inception to implementation and then to evaluation. It considers a
various separable stages of activity which can be thought of as constituting a definite
sequence in which each stage not only grown out of the preceding ones, but leads into the
subsequent ones.

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

Describe the stages of project planning process: project cycle
Understand the management approach to project cycle
Understand the project clearance reports
Understand the management approach to project cycle

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2.1: PROJECT LIFE CYCLE

There are various models that deal with the project cycle, which usually relate to the
organizational perspective of the authors, such as Baum's, United Nations Industrial
Development Organization (UNIDO), Choudhury’s, etc. This section presents and
provides detail explanations on the UNIDO’s, Baum's, Choudhury’s, United Nations
Environment Program (UNEP’s), Project Management Body of Knowledge (PMBOK’s),
and Baars’s models.

2.1.1: UNIDO’S PROJECT LIFE CYCLE (UNIDO MODEL)

The United Nation’s Industrial Development Organization (UNIDO) gives emphasis to

industrial projects. It is more practical than conceptual. It identifies three project phases:
Pre-Investment, Investment and Operation Phases.

Pre-Investment Phase:
(Opportunity Study; Pre feasibility
Study; Feasibility Study; Appraisal)

Operation Phase:
(Expansion and Innovation; Replacement and
Rehabilitation; Commissioning and Start-up)

Investment Phase:
(Negotiation and Contracting; Engineering Design;
Construction; Pre production marketing; Recruitment
and training; etc.)

Figure 2.1: UNIDO’s Project Life Cycle

a) PRE-INVESTMENT PHASE

The preinvestment phase includes project activities such as:

Identification of investment opportunities that normally called opportunity study,

Pre-feasibility study (preliminary project selection and definition),
Feasibility study (Project formulation), and
Appraisal and Decision (Evaluation and investment decision), etc.

b) INVESTMENT PHASE

The investment phase includes project activities such as:

Project and Engineering Design

It comprises of designs of buildings and other facilities that include time scheduling, site
prospecting and probing, preparation of blue prints, detailed plant engineering and a final
selection of technology and equipment.

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Negotiation and Contracting
It includes definition of the legal obligations in respect to project financing, acquisition of
technology, construction of building and services, and supply of machinery and equipment
for the operation phase. It also requires negotiation with equipment and machinery
suppliers and collaborators and contracting with architects and contractors.
Construction
It includes actual construction of building, installation of machinery and manpower. It
involves site preparation, construction of building and other civil works together with the
erection and installation of equipment in accordance with proper programming and
scheduling.
Recruitment and Training of Workers
It includes local and abroad recruitment and training of workers for the smooth running of
operation. It should proceed simultaneously with the construction stage and it may prove
relevant to the rapid growth of productivity and efficiency.
Commissioning and Start up

It requires handover of the building to project sponsor or promoter. Start up (delivery

stage) is brief but technically critical span in project development. Its success indicates the
effectiveness of the planning and execution of the project.

c) OPERATION PHASE
The operation phase includes project activities such as expansion and innovation,
replacement and rehabilitation, and commissioning and start-up. The issues in the
operational phase need to be considered both from long and short-term viewpoints.
i. The short-term view point relates to:
Application of production
Operation of Equipment
Labour productivity and skill, etc.
ii. The long-term view point relates to:
Production cost
Income from sales, etc.

Activity 2.1: Assuming that you are studying a “Bread Bakery” project, list the
series of activities that will be involved in your investment phase.

2.1.2: BAUM'S PROJECT LIFE CYCLE (BAUM’S MODEL)

Baum (1978), an employee of the World Bank, has developed the following five project
cycles that are related with performance of the World Bank:

a) Identification - Selection of viable ideas

b) Preparation - Determine whether the project is viable or not.
c) Appraisal - Audit whether the preparation process is carried out adequately.
d) Implementation: - Actual implementing of the project (construction of building,
hiring employees, etc.)
e) Evaluation - Evaluate whether the project has enabled to achieve the desired
objective since its implementation.

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Identification:
(Resource, Market and/or Need Based)

Preparation:
Evaluation: (Technical, Financial, Economic, etc.)
(Past, Future, Feed Back)

Implementation:
(Planning the work, work the Appraisal:
planning and monitoring the work) (Technical, Financial, Economic, etc.)

Figure 2.2: Baum’s Project Life Cycle

a) PROJECT IDENTIFICATION

Project identification consists in finding project ideas that could contribute towards
achieving specified development objectives. But, where do projects come from? There is
no simple answer. Some may be "resource based" - stem from the opportunity to make
profitable use of available resources; "market based" - arise from an identified demand
in home or overseas markets; and "need based" - to make available to all people in an
area where minimal amounts of certain basic material requirements and services exist.
Once some project ideas have been put forward, the first step is to select one or more of
them as potentially promising. This calls for a quick preliminary screening by
experienced professionals who could also modify some of the project proposals.
Preliminary screening is conducted to reduce to a manageable number the project
alternatives to which more work and time will be devoted. As a result of preliminary
screening exercise, some of the project alternatives will be rejected and those that are
promising will be advanced to the next stage.
Exhibit 2.1: Project Identification
The Identification phase is one of identifying the problems, which need to be addressed,
and analyzing the ways in which they can be addressed. This would include, for example:
Analysis of existing situation
Problems/needs identification
Prioritization of ideas
Selection of a project idea
Definition of the project idea
Consultation with stake holders
Establishment of overall objectives

Activity 2.2: By scanning your environment, generate one development project idea each
based on resource, market and need.

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b) PROJECT PREPARATION (FEASIBILITY STUDY)

Project preparation sometimes called project formulation covers the establishment of

technical, financial, economic, social and institutional aspects of the project. Following
preliminary screening, promising project options should be investigated in a systematic
manner. The analysis of the projects technical, commercial, social, environmental,
financial, economic and institutional aspects should be detailed and comprehensive
enough to decide on the future of the project with confidence.
Exhibit 2.2: Project Formulation/Preparation
The Preparation/Formulation stage involves the detailed planning of the project idea.
The result of which is a set of tangible proposals with an associated set of costs and
benefits. These will usually be contained in pre-feasibility or feasibility study. Further
more, this phase is one of defining more clearly the actual project, who will do it, what
resources are viable, and how it will be divided into different tasks. This would include:
Specification of objectives and results
Identifying resources available for the project
Identifying resources needed for the project
Design of the project
Packaging and planning of the project

Activity 2.3: Explain in brief the necessity of project feasibility in development project
study by giving example.

c) APPRAISAL
It is the comprehensive and systematic assessment of all aspects of a proposed project. During
appraisal, it should be verified that the proposed project, in combination with other policies,
contributes the maximum possible towards achieving certain development objectives. In
project appraisal, a project is viewed from different perspectives: technical (including
ecological), commercial, sociological, financial, economic, managerial and organizational.
When appraisal is completed, an appraisal report is prepared which contains the findings
and final recommendations. The recommendation may be to approve, reformulate,
postpone or abandon the project under review.
Exhibit 2.3: Project Appraisal
The Appraisal/Audit phase involves a systematic review of all aspects of the project in
order that a decision can be made as to whether to proceed. The following questions are
often the subject of an appraisal report on the basis of which a series of decisions may be
made. These could involve discarding the project or alteration of some of the plans.
Technical- Is the project design appropriate and will the project work as expected?
Financial- Has proper provision been made to cover the financial requirements
and obligations of the project? Is the financing planned adequate? Are the
financial aspects of the project beneficial to the different actors and beneficiaries
involved with the project? If the project is commercial how will the necessary
inputs be obtained and (where relevant) how will the output be sold?
Economic- Is the project advantageous from the point of view of the economy as a whole?
Social- Is the project both advantageous and acceptable to the people affected by it?
Institutional- Are there suitable organizations in place to implement and
manage the project? Is the legal framework appropriate?
Environmental- Have the environmental impacts of the project been properly considered?
Sustainable- Will the project be sustainable in the long term both financially
and institutionally?

Activity 2.4: Discuss in brief on the relevance of project appraisal by giving an illustration.

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d) PROJECT IMPLEMENTATION

Once financing is secured and a final go-ahead (green light) given to proceed with the
implementation of a given project, inter-organizational linkages for its smooth
implementation are streamlined, and a project office is set up. All the construction and
supervision of the project is made.
Immediately after the completion of project implementation, management and assets are
integrated into the operation to the new economic entity or unit. Project operation involves the
running and maintenance of the new entity in accordance with planned objectives and tasks.
The major priority during this stage is to ensure that the project is carried out in the way
and with in the period that was planned. The feed back effect on the discovery and design
of new projects and deficiencies in the capabilities of the project actors can be revealed in
this stage. Thus, recording, monitoring, and progress reporting are important activities so
as to allow management to become aware of difficulties as they arise.
Exhibit 2.4: Project Implementation
The Implementation phase is one of actually performing the project and ensuring that
the objectives are met and the out puts made. This includes:
Mobilization of resources for each task and objectives
Project marketing
Ongoing monitoring and reporting arrangement
Identifying problems
Addressing failures
Modification of the planned results and project objectives as appropriate

e) PROJECT EVALUATION
Once a project has been carried out, it is often useful to look back over what took- place,
to compare actual progress with the plans, and to judge whether the decisions and actions
taken were responsible and useful.
Evaluation can help not only in the management of the project but also help in the
planning of future projects. As a result of undertaking evaluation, major achievements and
problems are identified, recommendations for remedial action made and lessons of
experience drawn (experience with one project can give rise to new ideas for extension of
the existing project as well as formulation of new project).
Exhibit 2.5: Project Evaluation
The Evaluation phase is the process of reviewing the completed project to see whether
the intended benefits are likely to be achieved. It should be a natural part of the process
and not seen as a ‘punishment’ for a project, which has failed to perform. This includes:
Assessing whether the contractor has truly completed the task
Identifying best practice for further projects
Identifying what resources are required for the future (if something goes
wrong this may mean that more resources are required rather than that the
project has failed)?
Identifying the need for future projects

Activity 2.5: Discuss in brief on the relevance of project evaluation by giving

example. In addition, explain the basis for project evaluation.

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2.1.3: CHOUDHURY’s PROJECT LIFE CYCLE

According to an Indian scholar, Choudhury (1988), the project life cycle has five phases:
Conception, Definition, Planning and Organizing, Implementation and Clean-Up.

Conception

Definition

Clean-Up

Planning &
Implementation Organizing

Figure 2.3: Choudhury’s Project Life Cycle

a) CONCEPTION
It is the phase where the project ideas germinate or conceived. This could be because of two reasons:
i) Growth- expansion, modernization, diversification, etc.
ii) Solve a problem- to remove constraints.
Project idea can be conceived by any body in the organization and therefore has to be put
in black and white before it can be compared with other project ideas or weigh to be seen
its relevance. Project ideas examined in the light of projective constraints, opportunities,
and what finding shows a green light may become the future project. All projects are
identified or conceived in this way.

b) DEFINITION

It defines the conception phase and therefore works to define the idea generated during the
conception phase. This phase prepares a document using sufficient details and on the
basis of this documents all customers, or financial institutions, or government may say yes
or no to the project idea. This project report is called a Detailed Project Report (DPR).
For instance, for a cement industry, the DPR encompasses raw material availability, plant
size and capacity, technology selection, plant lay out, machinery and equipments needed,
electrification and infrastructure work, civil and engineering work, utility (telephone,
water, fuel, power, etc), financial analysis (total investment cost, source of finance, total
production cost), the implementation schedule (when to start and end), etc.
What are the best decisions with the product leads to that signal it gets from the
government. Banks have laid down various projects appraisal procedures.

c) PLANNING AND ORGANIZING

It involves in the planning of the projects and organizing the human and non-human
resources required to implement the project. It looks in to organizing or arranging for
items needed, like purchase of technology, machines and equipments, inviting tenders,
say, from construction company for construction of plan, call for issue of shares, call for
appointment of specialized personnel, etc.

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d) IMPLEMENTATION

It is the phase where the conceived project idea takes shape gradually, in this fieldwork
starts. For capital equipment projects, it includes actual ordering and receipts, equipment
and machine erections, civil construction of the plant, electrical piping, fitting, etc, trial
and run, and final commissioning.
Since this phase takes maximum time, everybody wants to start (implement) the work at the
early possible time and try to complete at the minimum cost. Efforts are made to "fast track"
the project by overlapping (merging) some stages, i.e., engineering (design), ordering, receipt,
construction, and commissioning. The amount (degree) of fast tracking depends. If, for
example, designing and construction are undertaken by different contracts, then the scope of
fast tracking will be limited. However, if design, supply, and construction, all as a package, are
with one subcontractor, maximum amount of fast track is possible.

e) CLEAN-UP
It is where the plant commission is handed over to different agency for production. This is
where the BOT (Built, Operate, Transfer) or BOLT (Built, Operate, Lease, Transfer)
works and hence known as Transaction Phase. This includes closing of all accounts, etc.
As the project is in termination phase, project team also disintegrates and each person
leaves the organization in the very sequence in which they hand entered. For example,
designing and architecture could leave before construction engineers. Every organization
also prepares lessons learned from this project for future project works including
qualitative and quantitative database. This is known as "feedback phase". The
information includes assessment of customers' e-mail, listing of problems encountered and
remedies taken, technological advancements, and therefore recommendation for future R
& D (Research and Development) and future projects.

2.1.4. UNEP’S PROJECT LIFE CYCLE

The project cycle can be explained in terms of five phases: identification, preparation
and formulation, review and approval, implementation, and evaluation. Distinctions
among these phases, especially between identification and preparation, are often unclear in
practice and their relative importance varies greatly, depending on the character, scale and
history of the project. These five phases of the project cycle should be viewed as iterative
steps, not as a linear set of sequential steps.

Identification

Preparation &
Formulation
Evaluation

Review &
Implementation Approval

Figure 2.4: UNEP’s Project Life Cycle

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1. PROJECT IDENTIFICATION

Project identification starts from an understanding of the UNEP mandate and objectives. It
involves identifying environmental problems to be addressed and the needs and interests
of possible beneficiaries and stakeholders. The problems and the most realistic and
effective interventions are analyzed, and ideas for projects and other actions are identified
and screened.
a. Situation Analysis
An environmental situation needs to be assessed and analyzed. This objective analysis
enhances understanding of the likely causes and linkages between existing problems and
the needed actions. A situational analysis based on a scientifically sound conceptual
framework generates key actions and strategies to be applied for the intended project
intervention. Latest country reports and statistics prepared by Governments, researchers,
or international organizations on the relevant environmental, social and economic issues,
including gender and poverty, can facilitate the assessment. A situation analysis should
include analyses of needs, interests, strengths and weaknesses of key stakeholders and
beneficiaries.
b. The Identification Test
A proposal may be deemed to have passed the identification test and be ready for detailed
preparation when:
Major options and alternatives have been identified and some initial choices made;
The principal institutional and policy issues affecting project outcome have
been identified and deemed amenable to solution;
The project options selected are expected to be justified, given rough estimates
of the expected costs and benefits;
There is justifiable expectation that the project will have adequate support from the
relevant political authorities, other stakeholders and the intended beneficiaries;
There is compatibility with UNEP mandate and objectives.
c. Preparation of Concept Proposal for Sponsorship
Project formulation begins with the drafting of a proposal for sponsorship (a short concept
proposal of 4–5 pages) that lays out preliminary ideas, objectives, results, strategies,
outputs and activities. This proposal is used as the basis for consultations with
implementing partners and Governments.

2. PROJECT PREPARATION AND FORMULATION

a. Feasibility Study

A feasibility study should form the core of the proposal preparation process. Its purpose is
to provide stakeholders with the basis for deciding whether or not to proceed with the
project and for choosing the most desirable options. The feasibility study must provide
answers to the following basic questions:
Does the project conform to the development and environmental objectives and
priorities of the specific country and or region?
Is the project technically and scientifically sound, and is the methodology the
best among the available alternatives?
Is the project administratively manageable?
Is there adequate demand for the project’s outputs?
Is the project financially justifiable and feasible?
Is the project compatible with the customs and traditions of the beneficiaries?
Is the project likely to be sustained beyond the intervention period?

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b. Project Document Formulation
Project preparation and formulation and project document formulation are simultaneous
processes. Once the feasibility study has taken place and implementation arrangements are
agreed upon, the concept proposal (which would have been revised throughout the
process) is transformed and expanded into a project document throughout the project
preparation and formulation phase. The project document is a summary of the situation
assessment, justification of methodology and strategies for achieving the targeted changes,
which come from each step taken through project cycle phases 1 and 2. Since project
formulation is an iterative process, it is important to consult again with selected partners
and colleagues as the document is formulated.
c. Establishment of Baseline and Target Data
Data or information in the subject area of the intended project should be gathered during
the project identification process (phase 1) and analyzed to assess the condition or
situation of the targeted populations or areas. It is possible that the existing data or
information are insufficient or not valid, or that the necessary data or information do not
exist at all. In these cases, the project identification process will need to include rapid
assessments. Collection and analysis of such data form the baseline data for developing
indicators for measuring outputs and results.
The feasibility study guides project managers in proposing reasonable and achievable
targets or outcomes.
d. Project Implementation Planning
Success of project implementation often depends on the quality of project planning before
the project begins. The following UNEP project submission checklist is designed to assess
the feasibility of projects and the readiness of project managers to undertake them. The
checklist is designed as the project managers’ reference guide in planning for effective and
efficient project implementation.
Have all relevant UNEP Divisions and regional offices been consulted and are they
fully familiar with the project document?
Have the possible duplications or complementarities with existing or former
Global Environment Facility or UNEP projects been examined?
Have the roles and responsibilities of the implementing partners, including UNEP
Divisions, cooperating agencies or supporting organizations, been clearly
established and agreed upon?
Do the implementing partners have administrative, technical and human capacities
to undertake the project?
Do the UNEP Divisions involved have the technical and human capacities to
undertake the project?
Have the priorities and needs of the countries selected for the project been
identified and incorporated in the project?
Do the relevant Governments support or endorse the project?
Has a gender-sensitivity analysis been conducted and incorporated in the project
document?
Has the linkage to poverty alleviation been analyzed and incorporated in the
project document?
Have all key stakeholders been identified and included in the partnership for
project management?
Does the project incorporate activities to ensure policy, technical and financial
sustainability beyond the project implementation period?

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3. PROJECT REVIEW AND APPROVAL

UNEP has a project review and approval mechanism comprising an inter-divisional review
(IDR) and a project approval group.

The inter-divisional review aims:

To improve quality of UNEP proposals;

To promote knowledge-sharing among colleagues in a similar field of expertise by
sharing best practices, substantive and technical knowledge, and methodological or
implementational suggestions, including information about cooperating agencies or
supporting organizations; and
To enhance inter-divisional dialogue and collaboration in project implementation.

Inter-divisional reviews can take place either with the concept proposals for sponsorship,
at the stage before UNEP seeks funding for the project, or after the development of the full
project document after funding is secured.
The appraisal and approval process of the project approval group for projects and costed
work plans varies depending on the level and sources of funding.

The project approval group applies the following approval criteria:

The extent to which the activities, results and objectives conform and contribute to
the UNEP mandate and strategic and program objectives;
The extent to which the results identified are realistic, achievable and sustainable;
The extent to which gender and poverty perspectives are reflected in project
strategies and activities;
The linkage between the justification or background and the intervention being proposed;
The capacity of UNEP and implementing partners to undertake the project;
The extent to which the project incorporates and builds on the previous experience
and lessons learnt of UNEP;
The level of risk in full project implementation; and
The extent to which the proposed intervention is sustainable and replicable.

4. PROJECT IMPLEMENTATION

Projects that go through the appropriate steps in phases 1 and 2 will take less time between
approval and implementation, and significantly reduce the risks involved in implementing
a project. Budgeted resources are more likely to be used to implement activities and
achieve the intended results and objectives. Project managers monitor expenditure,
activities, output completion and workflows against their implementation plans, output
delivery and the progress made towards achieving the results and objectives according to
their anticipated milestones or benchmarks. Project sustainability beyond the project
duration and replicability of the project strategy and methodology should be borne in mind
throughout the implementation period.

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a. Monitoring
Monitoring is a continuous process that aims primarily to provide project management and
give the main stakeholders early indications of progress or lack of progress towards
achieving project objectives. A progress analysis during project implementation through
monitoring serves to validate the initial assessment of relevance, effectiveness and
efficiency or to fill in the gaps. It may also detect early signs of the project’s success or
failure. Monitoring assists project managers and implementing agencies to address any
impediments to progress and make adjustments so that results can be achieved within the
designated timeframe.
Monitoring is an internal process that also looks at project processes (both programmatic
and financial) and makes changes in assumptions and risks associated with target groups,
institutions or the surrounding environment.
b. Risk Assessment and Management
Projects often encounter risks during implementation. Managing risks by recognizing and
preparing for a range of possible future outcomes is an integral part of project
management. Risks arise out of uncertainty, both from internal and external sources. They
could include:

Adverse changes in economic factors;

Incorrect assumptions regarding project logic or sustainability considerations;
Dissatisfaction on the part of target beneficiaries;
A breach of legal or contractual responsibility by the implementing agencies;
Changes in the political and bureaucratic structure of the partner Governments;
Failure of the partner Governments to meet their obligations to the project;
Fiscal fraud and deficiencies in financial controls and reporting;
A threat to physical safety of the personnel or breach of security; and
Mismanagement.

During project implementation, the implementing agencies and project managers should
update and refine their risk assessment and formulate a risk management plan. When
contingencies arise, risk management strategies should be implemented.

5. PROJECT EVALUATION

Evaluation is a time-bound exercise that attempts to assess the relevance, performance and
success of current or completed projects, systematically and objectively. Evaluation
determines to what extent the intervention has been successful in terms of its impact,
effectiveness, sustainability of results, and contribution to capacity development.
Evaluation, more than monitoring, asks fundamental questions on the how and why of the
overall progress and results of an intervention in order to improve performance and
generate lessons learned.
When carried out after project completion, evaluation can contribute to extracting lessons
to be applied in other projects. Evaluations at the midpoint of the project or program also
provide timely learning that can suggest mid-course adjustments.

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2.1.5: PMBOK’S PROJECT LIFE CYCLE

According to Egan (2009), the project process groups (or life cycle stages) are defined by
the activities they include. It is helpful to have a big picture view of where each of the
process groups begins and ends. The project process life cycle stages are categorized in to
five phases: Initiation, Planning, Execution, Controlling and Closing.

Initiation

Planning
Closing

Execution
Controlling

Figure 2.5: PMBOK’s Project Life Cycle

1. INITIATION

Initiation begins with a project idea. The idea may be internally generated or may be the
consequence of a contract with outside customers. There may be a statement of work
outlining what is required. There may only be a vague idea based on the musings of senior
management.
Overlaid over the need for a project are the rules, regulations, and practices that determine
how an individual company manages and selects projects. Initiation is complete when a
project charter and preliminary scope statement have been prepared and a project
manager has been assigned to the project.
A project charter is an outline (with varying degrees of detail) of what the sponsors of the
project expect the project to accomplish. It should define constraints and identify the
major stakeholders involved.
A preliminary scope statement is a detailed look at what exactly the project is expected to
deliver. At this point there is little or no discussion of how- just what and why. The scope
statement may include a review of constraints and their priority, such as a completion date
and proposed budget. The preliminary scope statement is often prepared under the
direction of the project manager. However, it may be prepared by the sponsors before the
Project Manager has been named. It is possible for a contract or statement of work to
include all the necessary details that a preliminary scope statement requires.
Initiation ends when there is a project manager and that project manager has been given
the authority and direction necessary to begin planning.

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2. PLANNING

Planning begins with the outputs of initiation (charter, preliminary scope statement, and
project manager). Planning starts with a detailed idea and ends when the entire project has
been completed on paper. That is, the entire project is dismantled into numerous discrete
activities, and those activities have been budgeted and scheduled. At the end of planning,
the entire project has been thought through: what will be done; how; in what order; and at
what cost.
The planning process is directed by the project manager and completed by the project
team and stakeholders. Planning is complete when there is a project plan. The act of
creating a project plan involves many separate management process incorporating various
knowledge areas. For each knowledge area there is a management plan prepared as well as
documents that detail what will be accomplished and how.
Formal project management plans are thick. They describe how and when activities will
be undertaken as well as the procedures that will be followed to ensure the correct work is
done in the correct order.
The project plan states how the project will be run. Plan the work and then work the plan.

3. EXECUTION

Execution cannot begin until there is a plan. Executing is the act of doing what it says to
do in the plan. It is completed when all the work is completed.

4. CONTROLLING

Controlling is the act of making sure that the work being executed complies with the plan.
The objective is acceptance of deliverables by the customer.
Controlling cannot start until there are work results generated by execution. Controlling
involves monitoring completed work results to ensure that they match the plan and meet
stakeholder expectations. If they do not, information is feed back to the execution
processes so that corrective actions are taken.
Controlling is complete when the final outputs of the project (deliverables) meet the
prescribed quality standards defined in the plan and are accepted by the customer. It ends
at the same time as execution.

5. CLOSING

Closing ensures that an organization learns from its experience. An organization cannot
get better at project management if it does not learn. Organizations learn by documenting
what was learned- what went right and what went wrong- and making these documents
available for reference on future projects.
Closing begins when deliverables are accepted. It involves making sure that all the
necessary paperwork is completed in terms of contract administration and sign off. It
continues until a project archive has been compiled. This archive includes not only a
complete set of project records but also a critical review of lessons learned.

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2.1.6: BAARS’S PROJECT MANAGEMENT LIFE CYCLE

Baars (2008), who is one of the European Project Management Professionals, identified a
six phase project management (i.e., Project Life Cycle) particularly appropriate for
Information Technology (IT) related projects.
Dividing the project into phases makes it possible to lead it in the best possible direction.
The total work load of a project is divided into smaller components, thus making it easier
to monitor. The following paragraphs describe a phasing model that has been useful in
practice. It includes six phases:
Initiation phase (Idea)
Definition phase (What?)
Design phase (How?)
Development phase (How to implement?)
Implementation phase (Implementation)
Follow-up phase (Maintenance)

Initiation

Follow-Up
Definition

Implementation Design

Development

Figure 2.6: Baars’s Project Management Life Cycle

1. INITIATION

The initiation phase is the beginning of the project. In this phase, the idea for the project is
explored and elaborated. The goal of this phase is to examine the feasibility of the project.
In addition, decisions are made concerning who is to carry out the project, which party (or
parties) will be involved and whether the project has an adequate base of support among
those who are involved.
In this phase, the current or prospective project leader writes a proposal, which contains a
description of the above-mentioned matters. The project proposal includes business plans
and grant applications. The prospective sponsors of the project evaluate the proposal and,
upon approval, provide the necessary financing. The project officially begins at the time of
approval. Questions to be answered in the initiation phase include the following:
Why this project?
Is it feasible?
Who are possible partners in this project?
What should the results be?
What are the boundaries of this project (what is outside the scope of the project)?

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In the initiation phase, the project partners enter a (temporary) relationship with each
other. To prevent the development of false expectations concerning the results of the
project, it makes sense to explicitly agree on the type of project that is being started:
A research and development project,
A project that will deliver a prototype or ‘proof of concept’, and/or
A project that will deliver a working product.
The choice for a particular type of project largely determines its results. For example, a
research and development project delivers a report that examines the technological
feasibility of an application. A project in which a prototype is developed delivers all of the
functionalities of an application, but they need not be suitable for use in a particular context
(e.g. by hundreds of users). A project that delivers a working product must also consider
matters of maintenance, instructions and the operational management of the application.
Many misunderstandings and conflicts arise because the parties that are involved in a
project are not clear on these matters. Customers may expect a working product, while the
members of the project team think they are developing a prototype. A sponsor may think
that the project will produce a working piece of software, while the members of the project
team must first examine whether the idea itself is technically feasible.

2. DEFINITION

After the project plan (which was developed in the initiation phase) has been approved, the
project enters the second phase: the definition phase. In this phase, the requirements that
are associated with a project result are specified as clearly as possible. This involves
identifying the expectations that all of the involved parties have with regard to the project
result. How many files are to be archived? Should the metadata conform to the Data
Documentation Initiative format, or will the Dublin Core (DC) format suffice? May files
be deposited in their original format, or will only those that conform to the ‘Preferred
Standards’ be accepted? Must the depositor of a dataset ensure that it has been processed
adequately in the archive, or is this the responsibility of the archivist? Which guarantees
will be made on the results of the project? The list of questions goes on and on.
It is important to identify the requirements as early in the process as possible. Wijnen (2004)
distinguishes several categories of project requirements that can serve as a memory aid:

a. Preconditions
Preconditions form the context within which the project must be conducted. Examples
include legislation, working-condition regulations and approval requirements. These
requirements cannot be influenced from within the project.
b. Functional Requirements
Functional requirements are requirements that have to do with the quality of the project
result (e.g. how energy-efficient must an automobile be or how many rooms must a new
building have?).
c. Operational Requirements
Operational requirements involve the use of the project result. For example, after a
software project has been realized, the number of malfunctions that occur must be reduced
by ninety per cent.

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d. Design Limitations
Design limitations are requirements that involve the actual realization of the project. For
example, the project cannot involve the use of toxic materials or international partners for
whom it is unclear whether they use child labor.
It is very important that all parties that are involved in the project are able to collaborate during
the definition phase, particularly the end users who will be using the project result. The fact
that end users are often not the ones that order the project perhaps explains why they are often
ignored. The client, who pays for the project, is indeed invited to collaborate on the
requirements during the definition phase. Nonetheless, the project result benefits when its
future users are also invited. As a point of departure, it is helpful to make a habit of organizing
meetings with all concerned parties during the definition phase of a project.
The result of the definition phase is a list of requirements from the various parties who are
involved in the project. Every requirement obviously has a reverse side.
The more elaborate the project becomes, the more time and money it will cost. In addition,
some requirements may conflict with others. New copy machines are supposed to have less
environmental impact; they must also meet requirements for fire safety. The fire-safety
regulations require the use of flame-retardant materials, which are less environmentally
friendly. As this illustration shows, some requirements must be negotiated.
Ultimately, a list of definitive requirements is developed and presented for the approval of
the project’s decision-makers. Once the list has been approved, the design phase can
begin. At the close of the definition phase, most of the agreements between the customer
and the project team have been established.
The list of requirements specifies the guidelines that the project must adhere to. The
project team is evaluated according to this list. After the definition phase, therefore, the
customer can add no new requirements.

3. DESIGN

The list of requirements that is developed in the definition phase can be used to make
design choices. In the design phase, one or more designs are developed, with which the
project result can apparently be achieved. Depending on the subject of the project, the
products of the design phase can include dioramas, sketches, flow charts, site trees, HTML
screen designs, prototypes, photo impressions and UML schemas. The project supervisors
use these designs to choose the definitive design that will be produced in the project. This
is followed by the development phase. As in the definition phase, once the design has been
chosen, it cannot be changed in a later stage of the project.

4. DEVELOPMENT

During the development phase, everything that will be needed to implement the project is
arranged. Potential suppliers or subcontractors are brought in, a schedule is made,
materials and tools are ordered, instructions are given to the personnel, etc. The
development phase is complete when implementation is ready to start. All matters must be
clear for the parties that will carry out the implementation.
In some projects, particularly smaller ones, a formal development phase is probably not
necessary. The important point is that it must be clear what must be done in the
implementation phase, by whom and when.

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5. IMPLEMENTATION
The project takes shape during the implementation phase. This phase involves the construction
of the actual project result. Programmers are occupied with encoding, designers are involved
in developing graphic material, contractors are building, and the actual reorganization takes
place. It is during this phase that the project becomes visible to outsiders, to whom it may
appear that the project has just begun. The implementation phase is the ‘doing’ phase, and it is
important to maintain the momentum. This phase is complete when all of the requirements
have been met and when the result corresponds to the design.
Those who are involved in a project should keep in mind that it is hardly ever possible to
achieve a project result that precisely meets all of the requirements that were originally
specified in the definition phase. Unexpected events or advancing insight sometimes
require a project team to deviate from the original list of requirements or other design
documents during the implementation of the project.
This is a potential source of conflict, particularly if an external customer has ordered the
project result. In such cases, the customer can appeal to the agreements that were made
during the definition phase. As a rule, the requirements cannot be changed after the end of
the definition phase. This also applies to designs: the design may not be changed after the
design phase has been completed. Should this nonetheless be necessary (which does
sometimes occur), the project leader should ensure that the changes are discussed with
those involved (particularly the decision-makers or customers) as soon as possible. It is
also important that the changes that have been chosen are well documented, in order to
prevent later misunderstandings.
6. FOLLOW-UP
Although it is extremely important, the follow-up phase is often neglected. During this
phase, everything that is necessary to bring the project to a successful completion is
arranged. Examples of activities in the follow-up phase include writing handbooks,
providing instruction and training for users, setting up a help desk, maintaining the result,
evaluating the project itself, writing the project report, holding a party to celebrate the result
that has been achieved, transferring to the directors and dismantling the project team.
The central question in the follow-up phase concerns when and where the project ends.
Project leaders often joke among themselves that the first ninety percent of a project
proceeds quickly and that the final ten per cent can take years. The boundaries of the
project should be considered in the beginning of a project, so that the project can be closed
in the follow-up phase, once it has reached these boundaries.
It is sometimes unclear for those concerned whether the project result is to be a prototype
or a working product. This is particularly common in innovative projects in which the
outcome is not certain. Customers may expect to receive a product, while the project team
assumes that it is building a prototype. Such situations are particularly likely to manifest
themselves in the follow-up phase.
For instance, consider the case of a software project to test a very new concept. There was
some anxiety concerning whether any results would be produced at all. The project
eventually produced good results. The team delivered a piece of software that worked
well, at least within the testing context. The customer, who did not know much about IT,
thought that he had received a working product. After all, it had worked on his office
computer. The software did indeed work, but when it was installed on the computers of
fifty employees, the prototype began to have problems, and it was sometimes unstable.
The motto, ‘Think before you act’ is at the heart of the six-phase model. Each phase has its
own work package. Each work package has its own aspects that should be the focus of
concentration. It is therefore unnecessary to continue discussing what is to be made during
the implementation phase. If all has gone well, it was already determined in the definition
phase and the design phase.

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2.2: IMPROVING PROJECT LIFE CYCLE MANAGEMENT PROCESS

Section 2.1 above identifies several project cycle approaches that can be taken to managing
project activities from beginning to end. Many organizations utilize variations on these project
stages. However, there is no essential content difference among the alternative project
management life cycles. Their basic difference attributes to the nature of particular project,
such as Civil Engineering and IT-related projects. Regardless of the approach employed,
careful consideration needs to be given to clarify surrounding project goals, objectives and,
importantly, the roles and responsibilities of all participants and stakeholders.
Once the life cycles have been designed and documented for each category or subcategory of
projects, it is then possible to define and document the project life cycle management system for
each. Only when such documentation exists can the system be improved in a systematic,
integrated manner. To establish a total quality management (TQM) approach to an organization’s
project management capabilities and to avoid sub-optimal improvements being introduced on a
disjointed, piece-meal basis, the following approach is recommended by Archibald (2008):
1. Document the integrated life cycle process model.
2. Document and describe the resulting Project Life Cycle Management System
(PLCMS) for each project category within the organization.
3. Re-engineer the integrated process to apply appropriate re-engineering methods to
each category’s PLCMS to:
Identify system constraints, gaps and weaknesses.
Identify ‘speed bumps’ that inadvertently slow the process down and
potential ‘accelerators’ that can speed it up (Githens, 2002).
Relate the undesirable project results and possible causes to the PLCMS
wherever possible.
Redesign the PLCMS beginning with the most obvious constraints, gaps
and weaknesses and document the results.
4. Implement the Improvements.
Obtain needed agreements and conduct appropriate tests or analyses to
prove out the validity and feasibility of the proposed system revisions.
Plan, approve and execute the improvement project to implement the
revised PLCMS.
5. Repeat the steps as required until an optimum achievable PLCMS has been implemented.

The PLCMS improvement team must include experienced practitioners from within the
organization who are familiar with the existing PM practices.

2.3: INTEGRATED PROJECT PLANNING AND MANAGEMENT (IPPM)

Integrated Project Planning and Management (IPPM) is a management process that meets
cost and performance objectives by using cross functional teams, integrating all activities
from product concept to field support and simultaneously optimizing the product and its
manufacturing and support processes. It also incorporates a systematic approach to the
early integration and concurrent application of all disciplines that play a part throughout a
system’s life cycle.

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IPPM is based on the premise that the multi-functional disciplines inherent to acquisition
agencies such as government and industry acquisitions are integral parts of project
management and must be fully integrated to ensure successful deliveries. It focuses on the
front end of the concurrent engineering process, early integration of key product/process
characteristics and highly dependent on Science and Technology.
The IPPM technique integrates all acquisition activities in order to optimize system
development, production, and deployment. IPPM provides a systematic approach to
product development that achieves a timely collaboration of relevant stakeholders
throughout the product life cycle to better satisfy customer needs. Key to the success of
the IPPM concept are the Integrated Project Teams (IPTs), which are composed of
qualified and empowered representatives from all appropriate functional disciplines who
work together to identify and resolve issues.
IPT is a cross functional teams formed for the specific purpose of delivering a product for
an external or internal customer in timely collaboration. It comprises a group of
individuals who have complementary skills, committed to a common purpose, approach
and performance objectives for which they hold themselves mutually accountable
(Katzenbatch and Smith, 1992). The Office of Government Commerce-OGC- (2008) has
also defined the project team as a group of individuals with appropriate and
complementary professional, technical or specialist skills who, under the direction of the
project manager, are responsible for carrying out the work detailed in the project plan. The
size of the team will of course depend on the nature of the work being undertaken.
According to Archibald (2009), one way to look at the project management discipline is to
view it as consisting of these three basic principles:
Assignment of integrative project responsibilities: the key integrative roles.
Application of integrative and predictive project planning and control systems: the
project documents, procedures, information processing and communication
systems, and their application.
Integrated project team-working: identifying, integrating, and managing the project
team to integrate the efforts of all contributors to the project.
The objectives of Project Management are two-fold (Archibald, 2009):
To assure that each project, when initially conceived and authorized, supports the
organization’s approved higher level strategic objectives and contains acceptable
risks regarding the project’s objectives: political, technical, cost and schedule.
To plan, execute, and control each project simultaneously with all other projects
effectively and efficiently so that each will achieve its approved objectives:
meeting the related strategic objective by producing the specified results on
schedule and within budget.
The first of these objectives is essential to the strategic management of the organization.
Application of Project Management practices during the early strategic planning and project
concept phases has been introduced in more organizations within the past few years, with
beneficial results. Too frequently, project failures can be traced directly to unrealistic original
technical, cost or schedule targets, and inadequate risk analysis and risk management.
Therefore, the above two project objectives can be accomplished when there is effective and
efficient integration of functional systems, functional teams, projects, resources and stakeholders
(internal and external). The purpose of Integrated Project Planning and Management (IPPM) is
thus to establish and manage the project and the involvement of the relevant stakeholders
according to an integrated and defined process that is tailored from the organization’s set of
standard processes.

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Moreover, rather than attempt to manage individual projects as if they were stand-alone
endeavors, executives have learned over the years that every project is always interrelated,
primarily through the use of common resources, with some—if not all—other projects in
the organization. Relating selected projects within a program is often a step in the right
direction. Organizations have progressed from single project and program management to
multiple project management, and they are now moving rapidly from project
management to integrated project portfolio management.
Integrated Project Planning and Management (IPPM) involve the following activities:
Establishing the project’s defined process at project start-up by tailoring the
organization’s set of standard processes
Managing the project using the project’s defined process
Establishing the work environment for the project based on the organization’s
work environment standards
Establishing integrated teams that are tasked to accomplish project objectives
Using and contributing to organizational process assets
Enabling relevant stakeholders’ concerns to be identified, considered, and, when
appropriate, addressed during the development of the product
Ensuring that relevant stakeholders perform their tasks in a coordinated and timely manner:
- To address product and product component requirements, plans, objectives,
problems, and risks,
- To fulfil their commitments, and
- To identify, track and resolve coordination issues.
Project’s defined process refers to the integrated and defined process that is tailored from
the organization’s set of standard processes.
Managing the project’s effort, cost, schedule, staffing, risks, and other factors is tied to the
tasks of the project’s defined process. The implementation and management of the
project’s defined process are typically described in the project plan. Certain activities may
be covered in other plans that affect the project, such as the quality assurance plan, risk
management strategy, and the configuration management plan.
Since the defined process for each project is tailored from the organization’s set of
standard processes, variability among projects is typically reduced and projects can more
easily share process assets, data, and lessons learned.
The working interfaces and interactions among relevant stakeholders (internal and external
to the project) are planned and managed to ensure the quality and integrity of the entire
product. Relevant stakeholders participate, as appropriate, in defining the project’s defined
process and the project plan.
Reviews and exchanges are regularly conducted with relevant stakeholders to ensure that
coordination issues receive appropriate attention and everyone involved with the project is
appropriately aware of status, plans, and activities. In defining the project’s defined process, formal
interfaces are created as necessary to ensure that appropriate coordination and collaboration occurs.
The acquirer must involve and integrate all relevant acquisition, technical, support, and
operational stakeholders. Depending on the scope and risk of the project, coordination
efforts with the supplier can be significant.

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Formal interfaces among relevant stakeholders take the form of memorandums of understanding,
memorandums of agreement, contractual commitments, associated supplier agreements, and
similar documents, depending on the nature of the interfaces and involved stakeholders.
This process area applies in any organizational structure, including projects that are
structured as line organizations, matrix organizations, or integrated teams. The
terminology should be appropriately interpreted for the organizational structure in place.

2.3.1: PROJECT’S DEFINED PROCESS AREAS

The project is conducted using a defined process tailored from the organization’s set of
standard processes. The project’s defined process must include those processes from the
organization’s set of standard processes that address all processes necessary to acquire or
develop and maintain the product. The product related lifecycle processes, such as
manufacturing and support processes, are developed concurrently with the product.
a. Establish the Project’s Defined Process
Establish and maintain the project’s defined process from project start-up through the life
of the project. The project’s defined process consists of defined processes that form an
integrated, coherent lifecycle for the project. The project’s defined process logically
sequences acquirer activities and supplier deliverables (as identified in the supplier
agreement) to deliver a product that meets the requirements. The acquirer may require the
supplier to align selected processes with the acquirer’s defined process.
The project’s defined process should satisfy the project’s contractual requirements,
operational needs, opportunities, and constraints. It is designed to provide a best fit for
project needs. A project’s defined process is based on the following factors:
Customer requirements
Product and product component requirements
Commitments
Organizational process needs and objectives
The organization’s set of standard processes and tailoring guidelines
The operational environment
The business environment
Establishing the project’s defined process at project start-up helps to ensure that project
staff and stakeholders implement a set of activities needed to efficiently establish an initial
set of requirements and plans for the project. As the project progresses, the description of
the project’s defined process is elaborated and revised to better meet project requirements
and the organization’s process needs and objectives.
Also, as the organization’s set of standard processes changes, the project’s defined process
may need to be revised.
The project’s defined process is driven by the acquisition strategy. The acquirer’s defined process
is affected, for example, by whether the acquisition strategy is to introduce new technology to the
organization or to consolidate acquired products or services in use by the acquirer.
b. Use Organizational Process Assets for Planning Project Activities
Use organizational process assets and the measurement repository for estimating and
planning project activities. When available, use results of previous planning and execution
activities as predictors of the relative scope and risk of the effort being estimated for the
current acquisition.

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c. Establish the Project’s Work Environment
Establish and maintain the project’s work environment based on the organization’s work
environment standards. An appropriate work environment for a project comprises an
infrastructure of facilities, tools, and equipment that people need to perform their jobs
effectively in support of business and project objectives.
The work environment and its components are maintained at a level of performance and
reliability indicated by organizational work environment standards. As required, the
project’s work environment or some of its components can be developed internally or
acquired from external sources.
The supplier’s work environment should be compatible with the acquirer’s work
environment to enable efficient and effective transfer of work products. The work
environment might encompass environments for both verification and validation or these
might be separate environments.
d. Integrate Plans
Integrate the project plan and other plans that affect the project to describe the project’s defined
process. This specific practice extends the specific practices for establishing and maintaining a
project plan to address additional planning activities such as incorporating the project’s defined
process, coordinating with relevant stakeholders, using organizational process assets,
incorporating plans for peer reviews, and establishing objective entry and exit criteria for tasks.
The development of the project plan should account for current and projected needs, objectives,
and requirements of the organization, customer, suppliers, and end users, as appropriate.
e. Manage the Project Using Integrated Plans
Manage the project using the project plan, other plans that affect the project, and the
project’s defined process.
f. Establish Integrated Teams
Establish and maintain integrated teams. The project is managed using integrated teams
that reflect the organizational rules and guidelines for team structuring and forming.
The project’s shared vision is established prior to establishing the team structure, which
may be based on the WBS.
For small acquirer organizations, the whole organization and relevant external
stakeholders can be treated as an integrated team.
One of the best ways to ensure coordination and collaboration with relevant stakeholders is to
include them on an integrated team.
For projects within a system of systems framework, the most important integrated team may be
with stakeholders representing other systems.
g. Contribute to Organizational Process Assets
Contribute work products, measures, and documented experiences to organizational
process assets. This specific practice addresses collecting information from processes in
the project’s defined process.

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2.3.2: COORDINATE AND COLLABORATE WITH RELEVANT STAKEHOLDERS

Coordination and collaboration between the project and relevant stakeholders are conducted.
a. Manage Stakeholder Involvement
Manage the involvement of relevant stakeholders in the project. Stakeholder involvement
is managed according to the project’s integrated and defined process.
The supplier agreement provides the basis for managing supplier involvement in the project.
Supplier agreements (e.g., inter-agency and inter-company agreements, memorandums of
understanding, and memorandums of agreement) that the acquirer makes with stakeholder
organizations, which may be product or service providers or recipients, provide the basis for
their involvement. These agreements are particularly important when the acquirer’s project
produces a system that must be integrated into a larger system of systems.
b. Manage Dependencies
Participate with relevant stakeholders to identify, negotiate, and track critical dependencies.
c. Resolve Coordination Issues
Resolve issues with relevant stakeholders.

2.3.3: THE PROJECT IS MANAGED USING INTEGRATED PRODUCT AND

PROCESS DEVELOPMENT (IPPD) PRINCIPLES

The purpose of IPPM is to create an IPPD environment that enables integrated teams to
efficiently meet the project’s requirements and produce a quality product.
a. Establish the Project’s Shared Vision
Establish and maintain a shared vision for the project. A project does not operate in isolation.
Understanding organizational mission, goals, expectations and constraints allows the project to
align its direction, activities, and shared vision with the organization and helps create a
common purpose within which project activities can be coordinated. To enable this, it is
critical to understand the interfaces between the project and stakeholders external to the
project and the objectives and expectations of all relevant stakeholders (internal and external).
When creating a shared vision, consider:
External stakeholder expectations and requirements the aspirations and
expectations of the project leader, team leaders, and team members
The project’s objectives
The conditions and outcomes the project will create interfaces the project needs to maintain
The visions created by interfacing groups
The constraints imposed by outside authorities (e.g., environmental regulations)
Project operation while working to achieve its objectives (both principles and behaviors)
When creating a shared vision, all people in the project should be invited to participate.
Although there may be a draft proposal, the larger population must have an opportunity to
speak and be heard about what really matters to them. The shared vision is articulated in
terms of both the core ideology (values, principles, and behaviors) and the desired future
to which each member of the project can commit.

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An effective communications strategy is a key to implementing and focusing the shared vision
throughout the project. Promulgation of the shared vision is a public declaration of the
commitment of the project to their shared vision and provides the opportunity for others to
examine, understand, and align their activities in a common direction. The shared vision should be
communicated, and agreement and commitment of the relevant stakeholders should be obtained.
Effective communications are also especially important when incorporating new project
members. New members of the project often need more or special attention to ensure that they
understand the shared vision, have a stake in it, and are prepared to follow it in doing their work.
b. Establish the Integrated Team Structure
Establish and maintain the integrated team structure for the project.
Product requirements, cost, schedule, risk, resource projections, business processes, the
project’s defined process, and organizational guidelines are evaluated to establish the basis
for defining integrated teams and their responsibilities, authorities, and interrelationships.
A typical integrated team structure may be based on the product oriented hierarchy found
in the WBS. More complex structuring occurs when the WBS is not product oriented,
product risks are not uniform, and resources are constrained.
The integrated team structure is a dynamic entity that is adjusted to changes in people,
requirements, and the nature of tasks, and to tackle many difficulties. For small projects,
the integrated team structure can treat the whole project as an integrated team. The
integrated team structure should be continuously monitored to detect malfunctions,
mismanaged interfaces, and mismatches of the work to the staff. Corrective action should
be taken when performance does not meet expectations.
c. Allocate Requirements to Integrated Teams
Allocate requirements, responsibilities, tasks, and interfaces to teams in the integrated team
structure. This allocation of requirements to integrated teams is done before any teams are
formed to verify that the integrated team structure is workable and covers all the necessary
requirements, responsibilities, authorities, tasks, and interfaces. Once the structure is confirmed,
integrated team sponsors are chosen to establish the individual teams in the structure.
d. Establish Integrated Teams
Establish and maintain integrated teams in the structure. The integrated teams within the
integrated team structure are established by the team sponsors. This process encompasses
choosing team leaders and team members, and establishing the team charter for each
integrated team based on the allocation of requirements. It also involves providing the
resources required to accomplish the tasks assigned to the team.
e. Collaboration among Interfacing Teams
Ensure collaboration among interfacing teams. The success of an integrated team-based
project is a function of how effectively and successfully the integrated teams collaborate
with one another to achieve project objectives. This collaboration may be accomplished
using interface control working groups.

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2.3.4: ACHIEVE SPECIFIC GOALS

The process supports and enables achievement of the specific goals of the process area by
transforming identifiable input work products to produce identifiable output work products.
a. Perform Specific Practices
Perform the specific practices of the integrated project management process to develop
work products and provide services to achieve the specific goals of the process area.
b. Institutionalize a Managed Process
The process is institutionalized as a managed process.

2.3.5: INSTITUTIONALIZE A DEFINED PROCESS

The process is institutionalized as a defined process.

a. Establish an Organizational Policy
Establish and maintain an organizational policy for planning and performing the integrated
project management process.
This policy establishes organizational expectations for establishing and maintaining the project’s
defined process from project start-up through the life of the project, using the project’s defined
process in managing the project, and coordinating and collaborating with relevant stakeholders.
b. Plan the Process
Establish and maintain the plan for performing the integrated project management process.
This plan for the integrated project management process unites the planning for the project
planning and monitor and control processes.
The planning for performing the planning-related practices in Integrated Project Management is
addressed as part of planning the project planning process. This plan for performing the monitor-
and control- related practices in Integrated Project Management can be included in (or
referenced by) the project plan, which is described in the Project Planning process area.
c. Provide Resources
Provide adequate resources for performing the integrated project management process,
developing the work products, and providing the services of the process.
d. Assign Responsibility
Assign responsibility and authority for performing the process, developing the work
products, and providing the services of the integrated project management process.
e. Train People
Train the people performing or supporting the integrated project management process as needed.
f. Manage Configurations
Place designated work products of the integrated project management process under
appropriate levels of control.

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g. Identify and Involve Relevant Stakeholders
Identify and involve the relevant stakeholders of the integrated project management
process as planned.
h. Monitor and Control the Process
Monitor and control the integrated project management process against the plan for
performing the process and take appropriate corrective action.
i. Objectively Evaluate Adherence
Objectively evaluate adherence of the integrated project management process against its
process description, standards, and procedures, and address non-compliance.
j. Review Status with Higher Level Management
Review the activities, status, and results of the integrated project management process
with higher level management and resolve issues.
k. Collect Improvement Information
Collect work products, measures, measurement results, and improvement information
derived from planning and performing the integrated project management process to
support the future use and improvement of the organization’s processes and process assets.

2.3.6: INSTITUTIONALIZE A QUANTITATIVELY MANAGED PROCESS

The process is institutionalized as a quantitatively managed process.

a. Establish Quantitative Objectives for the Process
Establish and maintain quantitative objectives for the integrated project management process,
which address quality and process performance, based on customer needs and business objectives.
b. Stabilize Subprocess Performance
Stabilize the performance of one or more sub processes to determine the ability of the
integrated project management process to achieve the established quantitative quality and
process-performance objectives.

2.3.7: INSTITUTIONALIZE AN OPTIMIZING PROCESS

The process is institutionalized as an optimizing process.

a. Ensure Continuous Process Improvement
Ensure continuous improvement of the integrated project management process in fulfilling
the relevant business objectives of the organization.
b. Correct Root Causes of Problems
Identify and correct the root causes of defects and other problems in the integrated project
management process.

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2.4: PROJECT CLEARANCE REPORT (PCR)

Comprehensive study guidelines have been prepared by different organizations such as the
United Nations Industrial Development Organization (UNIDO), World Bank (WB),
Institution of Monetary Fund (IMF), national organizations concerned with national
economic development and planning, etc
Whenever project is identified it is often done with reference to the countries development strategies
and economic policies. Therefore, even if a private entrepreneur is identifying a project, the project
must serve to fulfill the social and economic need of the country. This has to pass through at least
the under mentioned three stages of scrutiny and clearances (Choudhury, 1988).
Government may have a three-stage project scrutiny. These three stages are often known as:
First stage: Pre Feasibility Report (PFR)
Second stage: Techno-Economic Feasibility Report (TEFR)
Third stage: Detailed Project Report (DPR)

2.4.1: PRE FEASIBILITY REPORT (ALSO CALLED PROJECT FORMULATION

REPORT OR PROJECT OPPORTUNITY STUDY REPORT)

PFR is a document that elicits the preliminary sanctions of the first stage clearance by the
government and this has a specified outline to supply information. Industry practices is
that the same pro forma is being used for all the aforementioned three stages of scrutiny
but information gets refined by and by at its stage.
The objective of this scrutiny is to ensure that the project is viable from various angles:
Market demand for the project or a product exist
Plant capacity
Materials and inputs used
Location and site
Project engineering and investment cost
Plant organization and over head cost
Manpower requirement
Implementation schedule
Financial and economic evaluation
Statutory clearances

Along with this, project cost estimates are also submitted. Industry collects historical
estimates and adjusts for escalation, inflation, local factors, etc which may be based on
statistics and experiences. If no previous experience of having such experience,
consultants are hired for this purpose.
PFR is evaluated by various agencies from various angles. Each of them gives their
individual clearances, record their objection, or get rectifications made (ask for further
explanation). And this grants the first stage clearance is over.
Once getting clearance from the first stage (PFR), it moves to the second stage (TEFR).

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2.4.2: TECHNO-ECONOMIC FEASIBILITY REPORT (TEFR)

In this stage, project scope is defined, capacity or size is identified, and also the method to
be used is determined.

2.4.3: DETAILED PROJECT REPORT (DPR)

This is the last and most important stage for project pre investment phase. The DPR and
Detailed Cost Estimates (DCE) are together for scrutiny and clearance. The outline and the
items for DPR remains the same as TEFR; however, the level of accuracy increases because this
is a period only when basic engineering, process design, and equipment listing is complete.
To prepare DPR from the TEFR:
Breakdown all the project components, time phase them, schedule them, with
accurate cost estimates along with explanations by giving reasons for your
assumptions and calculations.
Develop base line for controlling time and cost during the implementation of the
project components.
Prove preparedness with all the technical and resource requirements to implement the project.

2.5: MANAGEMENT APPROACH TO PROJECT CYCLE

From identification through evaluation of the project cycle is a process that can and should be
managed. Management has been traditionally associated with the implementation phase and
often equated with the efficiency with which this activity has been carried out. The management
aspect, however, is not restricted to implementation but includes all stages of project cycle.
The five managerial functions (planning, organizing, staffing, directing, and controlling)
shall be applied for accomplishing each successive project cycle. Each successive cycle
calls for a distinctive planning of its activities to be done; organizing of its structure,
planned activities and the various resources required; staffing of its structure with the right
people who are fit for the purpose; directing of its people involved in towards attaining the
set goals; and controlling (monitoring and evaluating) of its performance so that to take
corrective as well as preventive measures when needed.
Therefore, each project cycle has to be managed; it is a process for decision-making, not
an end in itself. As more information is gathered during the various phases, the project is
modified and reshaped, with consequent changes in its cost estimates, implementation
schedule, and so on. The process may also identify additional projects that overlap and
interlock with the initial proposal.
As noted above, the cycle is an iterative process consisting of a series of decisions. Each
phase is logically separated from the rest by a decision point. At each decision point, the
project can be dropped, forwarded to the next phase, or recycled back to the previous one
for restructuring and refining.
A report is usually prepared at the end of each phase. The report might include an analysis
for decision-making, prospective budget and work plan for the next phase and elementary
plan for the whole cycle. As the project progresses throughout various phases, those
summary master plans can be refined with evermore detail and revised to take account of
new and more comprehensive information.

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2.6: CHAPTER SUMMARY

Project management is an integrated and interdependent function. The success or failure of

one activity of a project affects other activities. The interactions between the various
components of project management can be direct and clearly defined, or they can be
ambiguous. For instance, a slight change in the scope of the project will certainly change
the cost of the project but it is difficult to determine whether it will have an impact on the
team motivation and quality of the end product. For a project to be successful there has to
be a balance between the various objectives of the project, because to enhance
performance in one area, performance in another area may have to be sacrificed.
Project management processes can be split into three, four, five or six stages- called the
project life cycle- with respect to special nature of the project.
The components of the project cycle go through specific interaction patterns that
contribute to the success of the individual processes and the project as a whole. A given
processes and the interaction between their components is not applicable to all projects,
thus, the project processes can be customized as per the requirements of the project.

2.7: CHAPTER END ACTIVITIES AND QUESTIONS

i. By taking an “Elementary School Construction” project of your environment:

a) Short list the series of activities to be involved from its project idea generation
up to implementation and
b) Classify these activities as identification, preparation, appraisal, implementation,
and evaluation.
ii. One of your friends argues that project cycle need to be managed. Do you agree? If yes,
Why? Who? Where? When? How?
iii. Assume that you are a project manager for one of the elementary school under
construction in your environment. Assume also that your project is in the cleaning
phase. Therefore, shortlist the series of activities you have to take for cleaning the
project (i.e., to exit from the project).

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