11a) Lifecycle of project

*According to Harold Kerzner,* "Project management involves planning,

organizing, directing, and controlling resources to achieve specific goals
within a defined timeline and budget."

1. Initiation Phase

The Project Initiation Phase lays the foundation for a project by defining its purpose,
objectives, and initial plans. It ensures alignment with business goals and prepares the project for
execution.

Key Components

1. Defining the Goal: Clearly state the purpose and align it with
organizational objectives.
2. Identifying Stakeholders: Recognize individuals or groups involved,
documenting their expectations and roles.
3. Funding and Resources: Determine the project's financial backing
and identify necessary human, material, and technological resources.
4. Setting Objectives: Break the goal into actionable, SMART objectives.
5. Building the Team: Assemble a core team with assigned roles and
responsibilities.

Steps in the Initiation Phase

1. Feasibility Study: Assess the project’s viability by identifying

problems, risks, and benefits.
2. Business Case: Summarize costs, advantages, and risks to justify the
project.
3. Project Charter: Document the vision, objectives, scope, and
stakeholder roles to formally authorize the project.
4. High-Level Scope: Define what the project will deliver and its
boundaries.
5. Stakeholder Engagement: Identify and involve key stakeholders
early to ensure alignment.
6. Team Setup: Assign roles and establish a project office for
coordination.
The initiation phase ensures the project has a clear direction, approved plans, and a ready team,
setting the stage for smooth execution while minimizing risks.

2.Planning Phase:

1. After Getting Green Signal: Once the project has received official approval or funding,
the planning phase begins. This means all key stakeholders have agreed on the goals, and
the project is ready to move forward.
2. Creating a Project Roadmap: This involves laying out a clear, structured plan that
outlines the key milestones, tasks, and deliverables. The roadmap serves as a high-level
guide for the project’s direction and timeframes.
3. Using Gantt Chart Software: A Gantt chart is a useful project management tool that
helps visualize the project timeline, tasks, and their dependencies. It aids in scheduling
and tracking progress. Software like Microsoft Project or other Gantt chart tools is
commonly used.
4. Answers: How, When, What: The planning phase focuses on answering these three
critical questions:
o How will the project be executed (the methods, resources, and
workflows)?
o When will the project or individual tasks be completed (the
timelines and deadlines)?
o What needs to be done (the scope, objectives, and
deliverables)?

The Steps Involved in Project Planning:

1. Team Leadership - Collective Goal: Leadership ensures that the project team works
together towards a shared goal. It involves setting a vision, defining roles, and motivating
the team.
2. Create Tasks - What to Do, Criteria for Each Task: This involves breaking the project
down into manageable tasks and specifying what needs to be done for each. Criteria help
define the standards or expectations for completing each task.
3. Task Briefing - Explaining to Team: The project manager or leader briefs the team on
their roles and responsibilities, explaining how each task fits into the overall project.
4. Client Management - Ensuring Client Management: Maintaining communication and
managing the relationship with the client is vital. The project manager ensures the client's
expectations are understood and met throughout the project.
5. Communications - Informing/Updating the Right People: Effective communication is
critical for project success. This step involves informing the right stakeholders at the right
time using appropriate channels. It helps in keeping everyone updated and aligned with
the project's progress.

This phase sets the foundation for smooth execution and ensures that the team and stakeholders
have a clear understanding of the project’s scope and requirements.
The image you shared explains several important phases of the Project Lifecycle: Execution,
Monitoring and Controlling, and Closure. I'll break them down in more detail for you:

3. Project Execution Phase:

This is the phase where the actual work begins, and the plans created earlier are put into action.
Key aspects include:

 Execution of Project Plan: The tasks, milestones, and deliverables outlined during the
planning phase are carried out.
 Resource Onboarding: This involves bringing the necessary human and material
resources into the project. Teams are hired or assigned, and tools and materials are
allocated.
 Grouping: Resources (people, tools, etc.) are grouped based on tasks or teams to ensure
efficient collaboration and task execution.
 Meetings, Reviews, Project Tracking: Regular meetings and reviews are held to ensure
the project is progressing according to the plan. Tools like Gantt charts are used to track
tasks, timelines, and milestones.
 Managing Team: The project manager oversees the team, resolves any issues, and
ensures that everyone remains focused and motivated towards achieving project goals.

Execution Steps:

 Create a Financial Plan: Budgeting is crucial, and a financial plan ensures that costs are
tracked and controlled.
 Create a Resource Plan: This defines how human and material resources will be
managed and allocated.
 Create a Quality Plan: A quality plan defines quality standards and targets, ensuring
that the project meets the expectations.
 Create a Risk Plan: This involves identifying potential risks, assumptions, issues, and
mitigation strategies.
 Create an Acceptance Plan: This outlines the criteria to confirm when the project is
"done" and when deliverables meet the defined objectives.
 Create a Communication Plan: Effective communication with stakeholders and the
team is vital for project success. The communication plan defines how and when
information is shared.
 Create a Procurement Plan: Identifies the external suppliers and ensures that third-
party contracts are in place for services or materials required for the project.

4. Project Monitoring and Controlling Phase:

In this phase, the progress of the project is continuously tracked, and adjustments are made as
necessary to ensure the project stays on track.
  Collecting and Analyzing Data from Timesheets: Timesheets help track time spent on
different tasks, which aids in resource and cost management.
 Track and Compare Progress: Actual progress is measured against the original plan to
identify deviations or delays.
 Budget Usage: The financial status is constantly reviewed to ensure the project remains
within budget.
 Time Allocation: Proper allocation and management of time resources to ensure
deadlines are met.

Monitoring & Controlling Steps:

 Cost and Time Management: Monitoring how well the project is adhering to its cost
and time plans.
 Quality Management: Ensuring that the project's deliverables meet quality standards set
during planning.
 Risk Management: Identifying and addressing any new risks that arise during the project
execution.
 Acceptance Management: Confirming that the project outputs are acceptable to the
client or stakeholders.
 Change Management: Managing any changes in scope, time, or resources effectively.

5.Project Closure Phase:

Once all tasks are completed, the project enters its final phase, which involves evaluating its
success and ensuring that everything is properly closed out.

 Post Project Review Meeting: A formal review meeting is held to evaluate the overall
project performance.
 Strengths and Weaknesses of the Project: The team assesses what went well and what
didn’t, to derive lessons for future projects.
 Did Expectation Match Reality?: This involves comparing the initial project goals and
expectations with the actual outcomes.

Closure Steps:

 Project Performance Analysis: This involves a deep dive into the performance,
checking if cost estimates, timelines, and goals were met.
 Team Performance Analysis: An evaluation of how well the team worked together and
whether individual roles were fulfilled as expected.
 Project Closure Documentation: All formal documentation is completed, including the
closing of contracts, supplier agreements, and signing off the project as completed.
 Post-Implementation Review: This formal review assesses the project’s successes and
failures, and documents lessons learned for future projects.
Each phase is critical to the overall success of the project, and proper planning, execution, and
review help ensure that goals are achieved effectively and efficiently.

12 a) Methods of project budgeting

1.Analogous estimating

This method of estimating a budget consists of analyzing an already

completed project with a similar scope to the current one and using its
budgeting calculations, adjusted for differences in scope, quality, term of
execution or any other relevant parameters. It is not always a completely
accurate method, but it can be an appropriate method in situations when
there is limited information regarding the upcoming project and a quick
estimate is required. This method is usually quicker and less costly than
others, but can only be used by companies that have had similar projects in
the past.

2.Parametric estimating

This estimating method consists of using historical data and other related
variables for estimating the project’s scope, duration and total costs. This is
usually achieved by researching past data, calculating various per-unit costs
for various aspects that are common to the current project and adjusting the
proportions to fit the scope of the new project. The accuracy of this method
is usually proportional to the quality and relevancy of the historical data it is
based on.

3. Top-down method

This method consists of looking at the project budget in its entirety and then
calculating individual costs for each of the required processes. Each part of
the overall project is analyzed, with its exact costs calculated and then
compared to the initial estimates for each. Based on the results, project
managers can see how cost-efficient each process is and may decide to
reduce the scope of some parts of the project, so it fits within its total
allocated budget.

4.Bottom-up method

Unlike the top-down method, which divides the project into multiple
processes and calculates the individual costs for each, by using the bottom-
up method the project manager attempts to directly generate a total project
budget, with the help of their project management team. As a general rule
for this method, the budget estimation’s accuracy is usually proportional to
the accuracy of the information and expert advice received during the
budgeting period.

5. Zero Based Budgeting:

Zero-based budgeting (ZBB) is a budgeting method where all expenses must

be justified for each new budgeting period, starting from a “zero base.”
Unlike traditional budgeting approaches that use previous budgets as a
starting point and adjust them incrementally, ZBB requires every expense to
be evaluated and justified regardless of whether it was included in the
previous budget.

6.Incremental Budgeting:

Incremental budgeting is a budgeting method where budgets are prepared

using the previous period’s budget or actual performance as a starting point.
Changes or adjustments are then made incrementally to reflect anticipated
changes in costs, revenues, or other factors for the upcoming budgeting
period.

7. Three point estimates

Three-point estimating uses three different estimates for each task: the best-
case scenario (optimistic estimate), the worst-case scenario (pessimistic
estimate), and the most likely scenario (realistic estimate).

These values are then used to calculate the expected cost, providing a more
robust estimation that accounts for uncertainties and risks.

Example: In a construction project, the time required to complete a wall

construction process could be estimated as follows: optimistic estimate – 4
weeks, pessimistic estimate – 8 weeks, and realistic estimate – 6 weeks.

8. Earned Value Analysis

Earned Value Analysis (EVA) is a project management technique that

assesses project performance by comparing planned work, completed work,
and actual costs. It uses key metrics like Planned Value (PV), Earned Value
(EV), and Actual Cost (AC) to evaluate cost and schedule performance.
Earned Value Analysis provides insights into whether a project is on track,
over budget, or behind schedule, enabling better decision-making and
control
14. Functional and Matrix organizational structure
An organization’s structure directly impacts project success in a ton of ways.
It determines:

 How project resources are allocated

 The level of authority granted to project managers
 Efficiency of decision-making and governance
 Collaboration and information flow
 Project budget oversight and spending

Functional Organizational Structure:

In a functional organization, the company is divided into different functional

areas, such as IT, finance, marketing, sales, HR, etc. It has large hierarchies
with narrow spans of control and communication moves vertically within
siloed units. Each department works independently and is led by a
department manager who reports to the top management.

In this type of setup, projects are usually managed within the functional unit
and project resources are likely to report to their functional manager who has
the highest authority and decision-making power. This structure is common
in organizations where projects often serve the ongoing operations of the
company.

Functional structures promote specialization as employees build expertise in

their field by repeating similar tasks with their focus aligned with their
department’s singular purpose. For organizations operating a functional
structure, project managers have limited authority and cannot dictate
resource usage across functions. This role is sometimes fulfilled by a project
coordinator or expeditor.

When to Use Functional Organizational Structure

Functional organizations leverage skill specialization and consistency and

suit simple, stable environments focused on core competencies.

Industries like manufacturing and insurance often use functional

structures.

Here are some specific situations where functional organizational models

thrive:
  Organizations with little change in offerings or processes
 Mature industries with established practices
 Companies focused on efficiency and core expertise
 Businesses with single or low variety products
 Environments with low innovation and simple operations.

Advantages and Disadvantages of Functional Organizational

Structures:

Functional organizations have these key advantages:

 Promotes skill development within functions

 Achieves efficiencies from repetitive work
 Clear structure with a single chain of command
 Simpler coordination within functions
 Functional managers control resources and budgets

Conversely, functional models present these disadvantages:

 Communication limited across functional silos

 Delayed responses to change
 Limited collaboration across departments
 Resource duplication across units
 Constrained overview of organizational objectives
 Project managers have little to no real authority

Matrix Organizational Structure

The matrix structure is a blend of functional and projectized structures. In a

matrix organization, team members report to both a functional manager and
one or more project managers.

Communication flows vertically and horizontally in this organizational

structure as employees collaborate and share knowledge across functions
and teams. Since the team members report to more than 1 manager, the
amount of authority divided between the two managers defines the type of
matrix.

There are 3 types of matrix organizational structures:

 Weak Matrix: The functional manager has the prime authority

 Balanced Matrix: The authority shared equally
 Strong Matrix: The project manager has the prime authority
The weak matrix resembles functional structures where project managers act
as coordinators with limited power while the strong matrix has features of
projectized models with empowered project managers.

When to Use Matrix Organizational Structure

Matrix organizations provide flexibility, enabling companies to shift resources

as needs evolve. Tech, construction, and professional services commonly use
matrix approaches.

Specific situations where a matrix structure may be best include:

 Organizations requiring cross-functional collaboration

 Businesses needing to quickly reprioritize resources
 Large or complex projects requiring multiple skill sets
 Companies with high volumes of varied projects
 Dynamic industries that need responsiveness to change

Advantages and Disadvantages of Matrix Organizations

Here are some key advantages of matrix organizations:

 Flexibility to deploy resources across functions and projects

 Ability to prioritize needs and share talent
 Promotes cross-functional communication and collaboration
 Project-specific focus while maintaining functional skills

Conversely, here are some drawbacks of matrix organizational structures:

 Complex dual reporting relationships

 Role confusion from multiple managers
 Power struggles between functional and project managers
 Resource conflict across departments and projects
 Lack of ownership and accountability

15. How the projects are planned monitored and

controlled in cycle process
The main roles and responsibilities associated with project planning are:

(i) Senior responsible owner: ensuring that the project has a coherent set
of plans at the appropriate levels; the SRO will approve plans including any
proposed changes to scope, cost or timescale and monitor the impact of plan
changes on the business case and stage progress against agreed tolerances

(ii) Project board: is responsible for the decision making process

supporting project plan creation; the board will approve all stage and project
plans including exception plans and all associated resource, time and cost
implications

(iii) Project manager: Preparing project and stage plans, monitoring and
updating them regularly; the PM will liaise with the programme manager on
relevant planning issues and alert the SRO or project board to any potential
exception conditions, preparing exception plans as required

(iv) Project management office: Administering project change control

procedures, maintain planning standards and procedures and updating and
maintaining all project, stage, team and other relevant plans under the
direction of the project manager; the PMO will provide advice and guidance
on practical matters associated with plans.

Monitoring, Reporting and Control

Monitoring is about assessing what work has been completed for a

programme or project including costs, risks and issues. In addition the SRO
and board will routinely monitor if the business case continues to be viable
and in alignment with strategic objectives. This usually takes the form of the
production of documentation and reports at key stages. Monitoring is used to
oversee progress of products, outputs, and outcomes.

Reporting provides the programme or project board with a summary of the

status of the programme or project at intervals defined by them. Reporting
advises the correct people at the correct time of positive and negative
events, allowing for progression or remedial action as appropriate.

Controls usually relate to stages in projects and are established to control the
delivery of the project's outputs. In project management, controls are:
  Event driven - meaning that the control occurs because a specific
event has taken place; examples are end stage reports, completion of
a project initiation document and creation of an exception plan
 Time driven - meaning controls are regular progress feedbacks;
examples include checkpoint and highlight reporting

Controls then assist with both monitoring and reporting by provision of

required review points such as end stage assessments. This does not replace
the need for the board to maintain an overall view of progress.

An example for planning, monitoring and control cycle process is

illustrated below:

1. Initiate Project

 This is the starting phase where the project is defined, and the scope is
established. It involves preparing key documents like the project
charter and obtaining approval to proceed.

2. Authorize Work Package

 Work packages are specific deliverables or tasks that are assigned to

team members or groups. This step involves allocating resources, time,
and authority to complete these tasks.

3. Monitor Progress

 Continuous monitoring ensures the project stays on track. Progress is

assessed against the plans (e.g., checkpoint reports, stage plans,
and quality plans). Adjustments may be made if deviations are
detected.
4. Manage Interfaces

 This involves ensuring smooth communication and coordination among

different stakeholders, teams, or project elements. The
communication plan serves as a tool to manage these interfaces
effectively.

5. Manage Risks and Issues

 Risks and issues are inherent in any project. This step involves:
o Risk Log: Identifying potential risks and mitigation strategies.
o Issue Log: Tracking issues that arise during execution and
resolving them promptly.

6. Report Progress

 Regular reporting ensures that stakeholders are informed about the

project’s status through:
o Highlight Reports: Summarizing progress and achievements.
o Exception Reports: Detailing any significant deviations from
the plan.

7. Plan Next Stage

 Based on the progress and insights gained, planning for the next
project stage is undertaken. This ensures a continuous improvement
cycle where plans are refined and updated.

Key Outputs:

 Risk Log/Issue Log: Used for tracking risks and issues.

 Checkpoint Reports/Stage Plans/Quality Plans: Tools to monitor
progress and quality.
 Communication Plan: Ensures effective stakeholder interaction.
 Highlight/Exception Reports: Provides updates and flags problems.

This cyclical process is essential to ensure projects are executed effectively, with clear
documentation and communication at every stage.

2marks:
1. Goals of a Project

The primary goals of a project are:

1. Achieving specific objectives within defined constraints of scope, time,

and cost.
2. Delivering quality outcomes that meet stakeholder expectations.
3. Ensuring efficient resource utilization.
4. Contributing to organizational or societal objectives.

2. Project Formulation

Project formulation is the process of defining, planning, and organizing project ideas into a
detailed and executable plan. This involves analyzing feasibility, estimating costs, identifying
objectives, and evaluating risks to develop a comprehensive project proposal.

3. Work Breakdown Structure (WBS)

A Work Breakdown Structure is a hierarchical decomposition of the total scope of work to

accomplish project objectives and create deliverables. WBS breaks the project into smaller,
manageable components, ensuring clarity, accountability, and efficient resource allocation.

4. Risk Management

Definition:
Risk Management is the systematic process of identifying, analyzing, and responding to
project risks to minimize their impact.

Explanation
It includes risk identification, assessment, mitigation planning, and monitoring to ensure project
objectives are met despite uncertainties.

5. Techniques of Simulation in Project Management

1. Monte Carlo Simulation: Uses random sampling to assess

uncertainties in schedules and costs.
 2. What-If Analysis: Examines the impact of changing variables on
project outcomes.
3. Scenario Analysis: Evaluates predefined scenarios to identify optimal
strategies.
4. Discrete-Event Simulation: Models workflows as a sequence of
events to optimize processes.

6. Crashing in Project Management

Crashing is a technique used to shorten project duration by adding resources to critical

path activities. While it reduces completion time, crashing often leads to higher costs and must
be carefully planned to avoid diminishing returns.

7. Project Organization

A Project Organization is a structure that facilitates the coordination and implementation of

project activities. It assigns roles, defines authority, and establishes communication channels,
enabling efficient project execution.

8. Conflict in Project Management

Conflict refers to any disagreement or clash arising from differences in goals, values, or
priorities among project stakeholders.Conflicts can arise due to resource allocation,
scheduling, or differing expectations, and should be managed to maintain team cohesion and
project progress.

9. Reasons for Project Termination

Project termination is the end of a project due to completion, underperformance, or external

factors.
Projects are terminated due to:

1. Achievement of objectives.

2. Changes in organizational priorities.

3. Resource unavailability or funding issues.

4. Poor project performance.

5. External factors like market changes or legal issues

10. Control Cycle

Definition:
The control cycle is a continuous process of monitoring project performance, comparing it
with the plan, and taking corrective actions. (PMBOK Guide, PMI)

Explanation:
It involves four stages:

1. Setting standards.
2. Measuring actual performance.
3. Comparing results with standards.
4. Implementing corrective measures.

This ensures project objectives are achieved efficiently.