The project management life cycle

i

The Project

Management

Life Cycle

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Publisher’s note

Every possible effort has been made to ensure that the information contained in this

book is accurate at the time of going to press, and the publishers and authors cannot

accept responsibility for any errors or omissions, however caused. No responsibility for

loss or damage occasioned to any person acting, or refraining from action, as a result of

the material in this publication can be accepted by the editor, the publisher or any of the

authors.

First published in Great Britain and the United States in 2006 by Kogan Page Limited

Apart from any fair dealing for the purposes of research or private study, or criticism or

review, as permitted under the Copyright, Designs and Patents Act 1988, this publica￾tion may only be reproduced, stored or transmitted, in any form or by any means, with

the prior permission in writing of the publishers, or in the case of reprographic repro￾duction in accordance with the terms and licences issued by the CLA. Enquiries

concerning reproduction outside these terms should be sent to the publishers at the

undermentioned addresses:

120 Pentonville Road 525 South 4th Street, #241

London N1 9JN Philadelphia PA 19147

United Kingdom USA

www.kogan-page.co.uk

© Jason Westland, 2006

The right of Jason Westland to be identified as the author of this work has been asserted

by him in accordance with the Copyright, Designs and Patents Act 1988.

British Library Cataloguing-in-Publication Data

A CIP record for this book is available from the British Library.

ISBN 0 7494 4555 6

Typeset by Saxon Graphics Ltd, Derby

Printed and bound in Great Britain by Cambridge University Press

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Contents

List of figures vii

List of tables ix

Foreword xiii

Preface xv

Chapter 1 Overview 1

1.1 Introduction 1

1.2 What is a project? 2

1.3 What is project management? 2

1.4 The project life cycle 3

Chapter 2 Project initiation 16

2.1 Introduction 16

2.2 Develop a business case 17

2.3 Undertake a feasibility study 25

2.4 Establish the terms of reference 31

2.5 Appoint the project team 44

2.6 Set up the project office 49

2.7 Perform a phase review 53

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Chapter 3 Project planning 56

3.1 Introduction 56

3.2 Create a project plan 57

3.3 Create a resource plan 64

3.4 Create a financial plan 68

3.5 Create a quality plan 74

3.6 Create a risk plan 78

3.7 Create an acceptance plan 84

3.8 Create a communications plan 87

3.9 Create a procurement plan 90

3.10 Contract the suppliers 95

3.11 Perform a phase review 129

Chapter 4 Project execution 132

4.1 Introduction 132

4.2 Build deliverables 133

4.3 Monitor and control 134

4.4 Perform time management 134

4.5 Perform cost management 141

4.6 Perform quality management 145

4.7 Perform change management 152

4.8 Perform risk management 159

4.9 Perform issue management 165

4.10 Perform procurement management 173

4.11 Perform acceptance management 178

4.12 Perform communications management 186

4.13 Perform a phase review 194

Chapter 5 Project closure 196

5.1 Introduction 196

5.2 Perform project closure 197

5.3 Review project completion 202

Chapter 6 Epilogue 217

Appendix: Project life cycle activity model and documents list 220

Glossary 224

Index 229

vi l Contents

Figures

1.1 Project management components 3

1.2 The four phases of the project life cycle 4

1.3 Project initiation activities 5

1.4 Project planning activities 7

1.5 Project execution activities 11

1.6 Project closure activities 14

2.1 Project initiation activities 16

2.2 Project organization chart 37

2.3 Summarized project plan 39

2.4 Phase review form for the initiation phase 54

3.1 Project planning activities 56

3.2 Detailed project schedule 63

3.3 Detailed procurement schedule 96

3.4 Tender management process 98

3.5 Product delivery schedule 123

3.6 Supplier review schedule 125

3.7 Phase review form for the planning phase 130

4.1 Project execution activities 133

4.2 Time management process 136

4.3 Cost management process 143

4.4 Quality management process 148

4.5 Change management process 156

4.6 Change request form 160

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4.7 Risk management process 163

4.8 Risk form 166

4.9 Issue management process 168

4.10 Issue form 171

4.11 Procurement management process 174

4.12 Purchase order form 179

4.13 Acceptance management process 181

4.14 Acceptance form 184

4.15 Communications management process 187

4.16 Project status report 191

4.17 Phase review form for the execution phase 195

5.1 Project closure activities 196

5.2 Actual delivery schedule 206

A1 Project life cycle activity model 221

viii l Figures

Tables

0.1 Audience benefits xviii

2.1 Business benefits 19

2.2 Business costs 20

2.3 Solution feasibility 20

2.4 Business risks 21

2.5 Business issues 22

2.6 Solution ranking 23

2.7 Business requirements 28

2.8 Solution risks 29

2.9 Solution issues 30

2.10 Solution feasibility 31

2.11 Project deliverables 33

2.12 Project organization 34

2.13 Project stakeholders 34

2.14 Project roles 35

2.15 Project approach 38

2.16 Project milestones 38

2.17 Project dependencies 40

2.18 Project resources 40

2.19 Project finances 41

2.20 Project processes 42

2.21 Project risks 42

2.22 Project issues 43

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3.1 Project phases 59

3.2 Project milestones 60

3.3 Project activities 61

3.4 Project tasks 61

3.5 Project effort 61

3.6 Project resources 62

3.7 Project dependencies 64

3.8 Labour listing 65

3.9 Equipment listing 66

3.10 Materials listing 67

3.11 Resource schedule 67

3.12 Labour costs 69

3.13 Equipment costs 70

3.14 Material costs 70

3.15 Administrative costs 71

3.16 Other costs 71

3.17 Expense schedule 72

3.18 Activity expense schedule 73

3.19 Quality targets 75

3.20 Quality assurance plan 76

3.21 Quality control plan 77

3.22 Risk list 80

3.23 Risk likelihood 81

3.24 Risk impact 81

3.25 Risk priority 82

3.26 Risk priority ratings 82

3.27 Risk schedule 83

3.28 Acceptance milestones 85

3.29 Acceptance criteria 85

3.30 Acceptance schedule 86

3.31 Communications requirements 88

3.32 Communications schedule 89

3.33 Communications matrix 91

3.34 Procurement requirements 92

3.35 Product purpose 93

3.36 Product justification 93

3.37 Available products 94

3.38 Supplier requirements 102

3.39 Product requirements 104

3.40 Training requirements 104

3.41 Documentation requirements 105

3.42 Support requirements 105

3.43 Equipment requirements 106

3.44 Supplier delivery schedule 106

x l Tables

3.45 Contract definitions 120

3.46 Supplier review criteria 124

3.47 Contract delivery schedule 126

4.1 Sample timesheet 139

4.2 Sample timesheet register 140

4.3 Sample expense form 146

4.4 Sample expense register 147

4.5 Quality targets 149

4.6 Deliverable review form 153

4.7 Process review form 154

4.8 Quality register 155

4.9 Change register 161

4.10 Risk register 167

4.11 Issue register 172

4.12 Procurement register 180

4.13 Acceptance register 185

4.14 Communications register 193

5.1 Completion criteria 198

5.2 Completion actions 198

5.3 Deliverable release plan 199

5.4 Documentation release plan 200

5.5 Supplier termination 200

5.6 Resource release 201

5.7 Communications messages 201

5.8 Benefit realization 203

5.9 Objectives achieved 204

5.10 Scope conformance 205

5.11 Resultant deliverables 205

5.12 Final expenditure 207

5.13 Final resource utilization 207

5.14 Time management conformance 208

5.15 Cost management conformance 209

5.16 Quality management conformance 209

5.17 Change management conformance 210

5.18 Risk management conformance 211

5.19 Issue management conformance 212

5.20 Procurement management conformance 213

5.21 Communications management conformance 214

5.22 Acceptance management conformance 215

5.23 Project achievements 215

5.24 Project failures 216

5.25 Lessons learnt 216

A.1 Project documents 222

Tables l xi

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Foreword

As a project manager, having to juggle staff, customers, suppliers, materials and equip￾ment to deliver your project can be challenging. To succeed, you need to use a well

structured methodology for initiating, planning, executing and closing projects effec￾tively. Only a handful of best-practice project management methodologies exist in the

market place, and few actually describe in any real detail how to complete every phase,

activity and task. This book does exactly that.

Because it explains the entire project life cycle in detail, you will understand how to

use simple, practical processes to successfully deliver your projects. Whether you

intend to initiate, plan, execute or close a project, this book explains how to do it

quickly and efficiently. The Project Management Life Cycle provides a comprehensive

description for each of the 20 critical project activities, as well as more than 150 tables,

diagrams, forms and checklists containing real-life examples to help you along the way.

This book reveals the Method123® Project Management Methodology (MPMM)

which has been used by 45,000 people in more than 50 countries around the world. It

has helped me personally to manage projects successfully, and I am sure it will help

you to do so as well.

Pamela Good

Vice-President of Communications

Project Management Institute

Buffalo Chapter, USA

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