1. Quick Recap

2. Definition of Project Manager in relationship to PMC (Project Monitoring and Controlling)
The person with authority to manage a project. This includes leading the planning and the development of all project deliverables. The project manager is responsible for managing the budget and workplan and all Project Management Procedures such as scope management, issues management, risk management, etc.
The person or firm responsible for the planning, coordination and controlling of a project from inception (Initiation) to completion (Closing), meeting the project's requirements and ensuring completion on time, within cost and to required quality standards.
The Project Manager is the individual responsible for the day-to-day management of the project.
A project manager is the person who has the overall responsibility for the successful planning and execution of any project.

3. Responsibility can be divided into 4 groups of beneficiaries
Owners/shareholders
Employees
Customers/consumers
Community

4. Lesson 2: Initiating a Project Topic 2A: Examine the Project Management Context Topic 2B: Examine Project Selection Topic 2C: Prepare a Project Statement of Work Topic 2D: Create a Project Charter Topic 2E: Identify Project Stakeholders

5. The project Lifecycle and project initiation

6. Project Mgmt Process Groups
Monitoring & Controlling
Planning
Initiating
Closing
Executing
Source: PMI Guide to Project Management Body of Knowledge

7. Project Initiation overview
Awareness of the need for change (situation, context) and recognition by stakeholders that only a project can bring about the desired change
Consideration of project options
Collection of basic information to perform a preliminary project feasibility assessment and determine possible project costs and outcomes (positive and negative)
Preparation of a formal project proposal for consideration by the project sponsors
Undertake a detailed project feasibility study if required
Decide whether project should be pursued, put on-hold for a future time or rejected
Make contracts with key stakeholders, issue project charter and assign resources for the project
Move the project into the (detailed) planning phase

8. Initiating process group
Processes typically include
Developing a business case
Initializing a project
Getting approval of the business case
Preparation of the project charter

9. Project life cycle
The project life cycle (PLC) defines the life of a project in phases
Any project should have one or more deliverables as its output(s)
Phases help control the project
Provide gates to decide whether to proceed
Fast tracking can be done; start next phase early

10. Project Identification
Start of Initiating phase
Recognize need, problem, or opportunity
Various ways for identification
Organizations strategic planning
Response to unexpected events
Group organized to address a need
Important to clearly identify need to determine if worth pursuing
Use decision making process to prioritize and select project with greatest need
Project Identification
The initiating phase of the project life cycle starts with recognizing a need, problem, or opportunity for which a project or projects are identified to address the need.
Projects are identified in various ways:
During an organization’s strategic planning
As part of its normal business operations
In response to unexpected events
The result of a group of individuals deciding to organize a project to address a particular need
It is important to clearly define the need. This may require gathering data about the need or opportunity to help determine if it is worth pursuing.
Sometimes organizations identify several or many needs, but have limited funds and people available to pursue potential projects to address all of those needs. In such cases, the company must go through a decision-making process to prioritize and select those projects that will result in the greatest overall benefit.

11. Project Selection Evaluate needs, costs, benefits
Determine which are projects
Select project
Develop criteria
List assumptions
Gather data
Evaluate each opportunity
Combine “gut” feelings and quantitative information to make decision
Project Selection
Project selection involves evaluating various needs or opportunities and then deciding which of those should move forward as a project to be implemented.
The benefits and consequences, advantages and disadvantages, plusses and minuses of each opportunity need to be considered and evaluated. They can be quantitative and qualitative, tangible and intangible. Each person's decision will be a combination of quantitative evaluation and "gut" feelings based upon experience.
The steps in project selection are:
Develop a set of criteria against which the opportunity will be evaluated. For example:
Alignment with company goals
Anticipated sales volume
Increase in market share
Establishment of new markets
Anticipated retail price
Investment required
Estimated manufacturing cost per unit
Technology development required
Return on investment
Human resources impact
Public reaction
Competitors’ reaction
Expected time frame
Regulatory approval
Risks
List assumptions that will be used as the basis for each opportunity.
If an opportunity is to build an on-site day care center for children and elderly relatives of company employees, one assumption might be that the company would be able to obtain a bank loan to build such a center.
Gather data and information for each opportunity to help ensure an intelligent decision regarding project selection.
It may be necessary to gather some preliminary financial estimates associated with each opportunity, such as estimated revenue projections and implementation and operating costs.
In addition to gathering hard data, it may also be necessary to obtain other information, such as opinions and reactions from various stakeholders who would be affected by the opportunity.
Evaluate each opportunity against the criteria.
Once all the data and information has been collected, analyzed, and summarized for each opportunity, it should be given to all the individuals responsible for performing the evaluation. It is beneficial to have several individuals involved in the evaluation and selection decision in order to get a variety of viewpoints. These individuals will combine the collected data with their gut feelings regarding the project when making their decision.

12. Define project goal Have at least one!!!
How will this project provide value to its organization?
And make sure stakeholders agree
Define not only the deliverables, but also the way project success will be measured

13. Initiation: Plan project
Effort (staffing levels) starts low, then rises until mid-project, then drops off
Risks are often highest initially
Stakeholder input is highest initially
Cost of correcting scope errors gets higher as the project progresses

14. Initiation: Plan project
Define the project’s plan:
What will happen?
Why?
How?
Who?
How long will it take?
How much will it cost?
What are the risks, and how will we manage them?
How did we estimate the duration and budget?
How are decisions reached?
Were we successful?

15. Initiation: Plan project
Plan must define, for each project phase
Deliverables
Tasks
Resources
Time
This defines the baseline project plan

16. Project initiation areas to be addressed
Making a business case for the project
Project organisation
Project need
Project goals
Project assumptions and constraints
Project risk management
Quality Control
Project change control
Project processes (more of an overview of how the PMI looks at projects)
The project charter
Project stakeholders

17. Monitoring & Controlling
Key Project Outputs
Monitoring & Controlling
Project
Charter
Project
Mgmt.
Plan
Planning
Initiating
Closing
Executing
Mgmt.
Review
Lessons
Learned

18. Organisation and responsibilities
Organisation of project
who is in charge
who is project manager
who should ensure project quality
Responsibilities
who is expected to do what
Why?
To avoid omissions
To prevent subsequent recriminations
To give leadership and direction

19. Project need
All projects are conceived and undertaken in response to some need (problem, opportunity) – internal, external, legal and other.
The need could be commercial in nature
A software company is asked by one of its major clients to develop accounting software
Or non-commercial
Contract for system to store patient health records

20. Project Goals
Every project has one goal which is the ultimate destination of all project initiation, planning, execution and other activities.
In addition to its goal, projects can have multiple objectives.

21. Project assumptions
Projects are usually undertaken in very complex internal and external environments and are subject to a multitude of factors and influences.
Assumptions may constitute the basis for the subsequent planning and execution of the project. For example, an assumption could be that the cost of project inputs will not increase over the project life-cycle, that project requirements will not significantly change and that all key stakeholders will support the project.

22. Project constraints
Constraints are factors which have a limiting effect on how the project is undertaken. These include for example constraints with regard to project policies, recruitment and selection, reporting, financial outlays, completion of activities etc.

23. Risk management Risk is a function of
how likely an undesirable event will happen
how likely that event will cause loss; and
how serious is that loss
Risk management tackles these by
reducing the likelihood of the event happening
reducing the likelihood of an accident or loss occurring and/or
reducing the amount of loss
At the project initiation stage preliminary risk management should take place and overall project risk should be assessed

24. Quality Control
It is important to state at the beginning of the project how you will ensure the products will be assessed
adherence to standards (whose? which version?)
adherence to written procedures
internal checks, peer reviews
independent technical checks and tests
integration test
user test

25. Change control
When discussing the need for project initiation, there is a need to address how change will be managed
Before agreeing to a change, project manager should:
get a written request from someone in authority
to avoid mere whims becoming requirements
decide whether this is additional work or just a correction
shouldn't charge extra for what should be produced anyway
evaluate the impact of the change
increase in cost and time
seek approval form senior management
to avoid subsequent recriminations
ensure that all are notified
to ensure people are working to the same plan

26. Change control - why is it necessary?
Poor workmanship on the part of the project team
The team must correct at its own expense
Project baseline ought not to be altered
An error in the specifications
Who pays depends on the circumstances
If the specification was agreed by the user, the user pays
Additional work over and above what was agreed
Project plans may be altered to permit this additional work
The user must agree to additional time and costs

27. Project processes Project management processes help run the project
Initiation, execution, closing, managing, etc.
Product-oriented processes are those that actually create the system or product
You need both kinds of processes!