PROJECT LIFE CYCLE

A project phase is a collection of related project management activities. The relationship of the

phases in the project life cycle is often sequential, and each project phase culminates with the

completion of one or more project deliverables (outputs that can help you achieve project

objectives incrementally).

The Project Management Body of Knowledge (PMBOK) organizes project phases according to

their life cycle, starting with Project Initialization and ending in Project Closure. The Project

Management Institute (PMI) created the 5-phase model outlined in the PMBOK Guide.

Each phase of the project management life cycle consists of a specific project objective or

objectives, and defines results, deliverables, processes, and milestones. Management by project

life cycle phase gives the project team a common vocabulary to communicate project progress,

resulting in better organizational control over the projects they handle.

A project life cycle is the sequence of phases that a project goes through from its initiation to its

closure. In an adaptive life cycle, the product is developed over multiple iterations, and detailed

scope is defined for iteration only as the iteration begins.

STAGES OF PROJECT LIFE CYCLE

Phase 1: Project Initiation

This is the start of the project, and the goal of this phase is to define the project at a broad level.

This phase usually begins with a business case. This is when you will research whether the

project is feasible and if it should be undertaken. If feasibility testing needs to be done, this is the

stage of the project in which that will be completed.

1
Important stakeholders will do their due diligence to help decide if the project is a “go.” If it is

given the green light, you will need to create a Project Charter (a short document that explains

the project in clear, concise wording for high-level management. Project charters outline the

entirety of projects to help teams quickly understand the goals, tasks, timelines, and

stakeholders) or a project Initiation Document (PID) that outlines the purpose and requirements

of the project. It should include business needs, stakeholders, and the business case.

The activities in initiation are:

Project conception

 At this stage an idea regarding a required intervention in a specific area to address and

identify problems is formed or developed through discussion with specialized leaders,

peers and is catalyzed into a proposal.

 The projects can therefore be conceived based on market demands, resource availability,

technology, natural calamities.

Project Identification

 This stage refers to the process where all potential projects arising from ideas crystalize

in the first stage are determined.

 An individual or an organization capable of identifying the most viable projects can be

engaged in order to support, to realize the expectation of the idea holder.

 The idea holder can submit the information in form of a proposal

 This proposal is usually general and descriptive

 A feasibility test is conducted

2
Project preparation

 This stage involves a more thorough exercise of collecting data and information of the

proposed project.

 At this stage of the cycle the objective of the project is defined and alternative solutions

described

 The project preparation contains the design of operational proposal which is technically,

financially, and economically visible.

 The decision is made on the scope of the project as well as the location and size.

Project Appraisal

 It involves a further analysis of the proposed project

 At this stage a critical review of the project is undertaken

 This systematic and comprehensive review is usually undertaken by an independent team

of experts in consultation with the stakeholders of the project

 This provides an opportunity to re-examine every aspect of the project plan to assess

whether the proposal is justified before realizing money

 The approach may change the project plan to a new one

Project Selection

 After appraisal a viable or suitable proposal is chosen for implementation

 Various project selection models both numeric and non-numeric are employed in

project selection

 The criteria for selection are pre-determined

3
Project Negotiation and Financing

Once the project to be implemented is agreed on, resources are mobilized

 For donor funded projects discussions are held on funding and associated aspects of

funding such as conditionality for grants, repayment periods and interest rates if loans are

borrowed.

 They must also discuss the flow of funds, contributions from stake holders and

beneficiaries and if there is any co-financing

 This results in an agreement document of the project that binds all parties involved during

the implementation of a project- PAD-Project Appraisal Document or POM- Project

Operational Manual.

Phase 2: Project Planning

This phase is key to successful project management and focuses on developing a roadmap that

everyone will follow. This phase typically begins with setting goals. There are two types of

goals.

S.M.A.R.T. Goals: This method helps ensure that the goals have been thoroughly vetted. It also

provides a way to clearly understand the implications of the goal-setting process.

S.M.A.R.T. Goals

 Specific – To set specific goals, answer the following questions: who, what, where,

when, which, and why.

 Measurable – Create criteria that you can use to measure the success of a goal.

 Attainable – Identify the most important goals and what it will take to achieve them.

4
  Realistic – You should be willing and able to work toward a particular goal.

 Timely – Create a timeframe to achieve the goal.

C.L.E.A.R. Goals – A newer method for setting goals that takes into consideration the

environment of today’s fast-paced businesses.

 Collaborative – The goal should encourage employees to work together.

 Limited – They should be limited in scope and time to keep it manageable.

 Emotional – Goals should tap into the passion of employees and be something they can

form an emotional connection to. This can optimize the quality of work.

 Appreciable – Break larger goals into smaller tasks that can be quickly achieved.

 Refinable – As new situations arise, be flexible and refine goals as needed.

During this phase, the Scope of the Project is defined and a Project Management Plan is

developed. It involves identifying the cost, quality, available resources, and a realistic timetable.

The project plans also include establishing baselines or performance measures. These are

generated using the scope, schedule and cost of a project. A Baseline is essential to determine if

a project is on track.

At this time, roles and responsibilities are clearly defined, so everyone involved knows what they

are accountable for. Here are some of the documents a PM will create during this phase to ensure

the project will stay on track:

 Scope Statement – A document that clearly defines the business need, benefits of the

project, objectives, deliverables, and key milestones. A scope statement may change

during the project, but it shouldn’t be done without the approval of the project manager

and the sponsor.

5
  Work Breakdown Schedule (WBS) –This is a visual representation that breaks down

the scope of the project into manageable sections for the team.

 Milestones – Identify high-level goals that need to be met throughout the project and

include them in the Gantt chart (Project milestones are reference points in your project’s

life cycle that mark important stages of progress. Each milestone allows you to evaluate

the project’s incremental progress with scrutiny, while having clearly defined

checkpoints to ensure you’re headed in the right direction)

 Gantt Chart – A visual timeline that you can use to plan out tasks and visualize your

project timeline.

 Communication Plan – This is of particular importance if your project involves outside

stakeholders. Develop the proper messaging around the project and create a schedule of

when to communicate with team members based on deliverables and milestones.

 Risk Management Plan – Identify all foreseeable risks. Common risks include

unrealistic time and cost estimates, customer review cycle, budget cuts, changing

requirements, and lack of committed resources.

Phase 3: Project Execution

This is the phase where deliverables are developed and completed. This often feels like the meat

of the project since a lot is happening during this time, like status reports and meetings,

development updates, and performance reports. A “kick-off” meeting usually marks the start of

the Project Execution phase where the teams involved are informed of their responsibilities.

Tasks completed during the Execution Phase include:

a) Develop team

6
 b) Assign resources

c) Execute project management plans

d) Procurement management if needed

e) PM directs and manages project execution

f) Set up tracking systems

g) Task assignments are executed

h) Status meetings

i) Update project schedule

j) Modify project plans as needed

Phase 4: Project Monitoring and Control

This is all about measuring project progression and performance and ensuring that everything

happening aligns with the project management plan. Project managers will use key performance

indicators (KPIs) to determine if the project is on track. A PM will typically pick two to five of

these KPIs to measure project performance:

 Project Objectives: Measuring if a project is on schedule and budget is an indication if

the project will meet stakeholder objectives.

 Quality Deliverables: This determines if specific task deliverables are being met.

 Effort and Cost Tracking: PMs will account for the effort and cost of resources to see if

the budget is on track. This type of tracking informs if a project will meet its completion

date based on current performance.

7
  Project Performance: This monitors changes in the project. It takes into consideration

the amount and types of issues that arise and how quickly they are addressed. These can

occur from unforeseen hurdles and scope changes.

During this time, PMs may need to adjust schedules and resources to ensure the project is on

track

Phase 5: Project Closure

This phase represents the completed project. Contractors hired to work specifically on the project

are terminated at this time. Valuable team members are recognized. Some PMs even organize

small work events for people who participated in the project to thank them for their efforts. Once

a project is complete, a PM will often hold a meeting - sometimes referred to as a “post mortem”

- to evaluate what went well in a project and identify project failures. This is especially helpful to

understand lessons learned so that improvements can be made for future projects.

Once the project is complete, PMs still have a few tasks to complete. They will need to create a

project punch list of things that didn’t get accomplished during the project and work with team

members to complete them. Perform a final project budget and prepare a final project report.

Finally, they will need to collect all project documents and deliverables and store them in a

single place.

Why Are Project Phases Important?

All projects go through each of the five phases regardless of their size.

8
  The decision to officially divide a project into phases is an excellent way to manage the

team’s focus, allocate resources, and align the entire project life cycle with clients and

stakeholders.

 By thinking in terms of phases, the project team ensures that deliverables produced at the

end of each phase meet the project’s goals. Managing a project by phase also makes sure

that the team is properly prepared for the next phase.

 Project life cycle phases provide additional benefits. The approach provides a structured

approach for project delivery. Defined activities, outputs, and responsibilities create a

clear and common roadmap for the project team to follow.

 Defined phases and defined roles show a visible framework easily understood by all team

members and stakeholders. Assignment of responsibilities by phase clarifies what the

team should only be doing in each phase and helps streamline communication.

 Working on projects phase by phase helps track and link progress directly to each phase.

Completion of each phase is easily recognizable by all involved.

 Another benefit of project management by phase is the progressive evolution of the

project. This helps identify areas that need greater attention for a particular phase. It also

marks clearly the points and opportunities for structured reviews to support project

governance.

While PMBOK recommends assigning project phases according to a project’s life cycle, project

teams can follow their own system depending on their industry, organizational policies, and

other relevant factors. For example, teams and organizations focused on monitoring the usage of

resources can use the critical chain project management methodology.

9
10