Project Life Cycle – Project Initiation © Ed Green Penn State University All Rights Reserved

10/20/2015Project Life Cycle - Project Initiation2 Topics Meaning and importance (of project initiation) Six (6) phases of initiation Task-Analysis Diagrams

10/20/2015Project Life Cycle - Project Initiation3 Meaning and Importance Set of start up activities “Get off on the right foot” Establish critical relationships Develop understanding Frame the effort

10/20/2015Project Life Cycle - Project Initiation4 Phases of Project Initiation Develop business case Conduct feasibility study Define terms of reference Appoint project team Create project office Conduct stage-gate

10/20/2015Project Life Cycle - Project Initiation5 Task-Analysis Diagrams Purpose – describe the work efforts within a particular task in detail Structure Inputs Process Steps Outputs Connects tasks together to (help) frame the work effort Process Steps InputsOutputs

10/20/2015Project Life Cycle - Project Initiation6 Task-Analysis Diagrams List of inputs required to perform the task List of outputs produced by performing the task Task Name Process Steps Boundary condition to begin Boundary condition to finish

10/20/2015Project Life Cycle - Project Initiation7 Project Initiation Overview 1. Develop the Business Case 1.Examine needs 2.Formulate problem statement 3.Develop/state business reasons and benefits 4.Summarize propose project 5.Document Recognize Business Need or Condition 2. Conduct Feasibility Study 1.Verify consistency with business plan. 2.Assess technology needs. 3.Verify consistency with technology plan. 4.Determine business priority. 5.Verify consistency with corporate policies and agreements 6.Determine resource adequacy (labor and materials 7.Document Business Plan Contracts Policies & Agreements Technology PlanLabor PoolMaterials Business Case Feasibility Study 6 3

10/20/2015Project Life Cycle - Project Initiation8 Project Initiation Overview 3. Establish Reference Framework 1.Formulate/define project scope 2.Identify constraints and boundary conditions 1.Legal 2.Labor 3.Materials 3.Formally state project objectives 4.Document 2 Contracts Policies & Agreements Labor PoolMaterials 4. Create Project Team 1.Identify needed skills and relevant expertise. 2.Assess labor pool; identify candidate personnel. 3.Define training needs. 4.Identify personnel needs. 5.Conduct interviews. 6.Select the team. 7.Publish. Reference Framework Technology Plan Training Plan Labor Pool Human Resources Staffing Request Training Request 5 Project Team

10/20/2015Project Life Cycle - Project Initiation9 Project Initiation Overview 5. Establish a Project Office 1.Establish a project work area. 2.Define the project organization structure 3.Create the (sub) teams. 4.Appoint the project leadership 5.Document and publish. 4 Project Office 6. Perform State-Gate 1.Conduct management review 2.Receive management decision Management Decision 2

10/20/2015Project Life Cycle - Project Initiation10 1. Develop the Business Case Includes Problem statement/business opportunity Set of available options  Known costs and associated benefits  Perceived feasibility  Potential risks  Key issues/concerns  Assumptions made Recommendation  State preferred solution  Rank alternatives  Implementation approach Responsible party – user or customer

10/20/2015Project Life Cycle - Project Initiation11 2. Conduct a Feasibility Study Research the environment External Internal  Business vision  Business units  Business location  Relevant business information  Relevant business technologies Research business problem  Business processes  Business units  Business locations  Business technologies  Business opportunities

10/20/2015Project Life Cycle - Project Initiation12 2. Conduct a Feasibility Study Identify requirements Business drivers Business requirements Conduct the feasibility study Identify potential solutions  Assess each solution  Measure results  Identify risks  Prioritize issues  List assumptions Rank the outcomes (results)  Define ranking criteria  Assign scores Identify the feasibility outcome

10/20/2015Project Life Cycle - Project Initiation13 3. Establish Reference Framework Identify project vision State project objectives Describe limiting conditions Describe generic project organization Customers Stakeholders Roles/responsibilities Create first-level project plan Schedule Resources Financial Quality List project considerations Risks Issues Assumptions Risks Constraints

10/20/2015Project Life Cycle - Project Initiation14 4. Create the Project Team Job descriptions Responsibilities Organization Relationships Skills Experience Qualifications Personality Performance criteria Work Environment Salary Work Environment Resource assessments Skill assessment  Current staff  Open positions Add-to-staff versus leased labor Training needs Credentialing requirements

10/20/2015Project Life Cycle - Project Initiation15 5. Establish a Project Office Identify/create/furnish project work area Define the organization structure Assign leadership Name teams Implement standards for work Define appropriate processes Create necessary templates Define communication Within the team Outside the team

10/20/2015Project Life Cycle - Project Initiation16 6. Perform Stage-Gate Management review of work performed during project initiation phase. Go/No go decision to proceed to next (planning) phase