project management methodologies

A Typical Life-cycle.
Projects are temporary structures set up with the specific aim of delivering an identifiable end-product. All projects will therefore have an identifiable life cycle, the
characteristics of which will vary according to the size and complexity of the project. Different project management methodologies can be applied but the underlying life cycle will remain. The illustration shows the life cycle for a project whose aim is to evaluate, recommend and implement a computerized accounts system. The costs of the project are restricted to the selection of the most suitable system available and the training and implementation necessary for its introduction. The actual purchase of the system is not within the terms of reference of the project, as this capital cost will be taken from a separate budget. A typical life cycle will run from the formal initiation of a project through to a post implementation review of the delivered end-product. This post implementation review is not shown as it is usually held some months after the project has been formally closed. There is often little agreement between industries, or even between organizations within the same industry, about the life cycle phases of a project. Different industries may also prefer different project management methodologies. This is understandable because of the complicated nature and diversity of projects.

The 5 Phase Model.
A five phase project life cycle model is now illustrated. This model can be applied to a variety of project scenarios although the cost and duration of each phase will vary according to the particular project. The conceptual phase includes the preliminary evaluation of an idea. It is common for this phase to include a first cut feasibility study for the proposed project. This analysis should also include a preliminary risk assessment.

The definition phase is primarily a refinement of those areas considered in the conceptual phase. The resources required by the project should be defined along with time, cost and performance estimates. Project estimation is a notoriously difficult task - especially in this early phase. However it is essential that costs are quantified, as this information is needed to establish whether or not the project should proceed. Once a project has received the funding and backing of senior management it can proceed to the production phase. This incorporates the production, or acquisition, of the end-product specified. This begins with the updating of detailed plans, started in the preceding phases and encompasses the identification and management of the resources required. This phase also includes the development of manuals, plans and other documentation that will support the end product in its live environment.

The operation phase involves the integration of the end-product or service into the organizational environment. If the end-product was a marketable product then this phase would typically include the product life cycle phases of marketing and refinement. The divestment phase involves the reallocation of resources that are no longer required by the current project. The end-product of any project will have a finite lifespan and therefore its ability to generate revenue will be limited. The organization will usually need to run future projects to guarantee its revenue stream. It is therefore important to retain the services of staff and other resources that can be used in forthcoming projects. This phase also incorporates the post implementation evaluation of the delivered end-product, and this should serve as input to the conceptual phase of future projects.

Typical Project Life-Cycles.
The use of resources over time will vary according to each particular project. Whilst it may be possible to characterize life cycle profiles within different industry sectors, this can give a false impression as individual projects can vary radically from the generic profile. In the systems development project shown here, the definition and production phases both involve significant resources as the system is designed and developed. This systems development project uses specialist staff and it is important that their skills are efficiently redeployed as the project nears completion. This gives rise to a significant cost in the divestment phase. This civil engineering project represents the construction of a road bridge. The conceptual and definition phases are straightforward as this project is using a standard bridge design. The construction work will be subcontracted and the project will be formally closed once the bridge is completed. Hence, the costs in the operation and divestment phase will be negligible.

This life cycle represents the cost of a project to merge two large organizations. The conceptual and definition phases will involve highly paid financial consultants.
The production phase will incur the costs associated with the rationalization, redeployment and retraining of staff as well as the costs involved in real estate transactions. There is no cost associated with redeploying the external consultants used in the conceptual and definition phases. However, the internal accounts and management services staff will require efficient redeployment.

The 3 Phase Model.
The five phase life cycle model shown earlier can be applied to a variety of project scenarios, although the cost and duration of each phase will vary - often quite
dramatically. However, all projects will have an identifiable beginning and end, and between these, the work of the project will take place. This gives rise to a simplified three phase view of a project, in which formal organizational processes can be applied to project initiation, project activities and project closure.

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