Jun 24

Initiate a Project

Initiating Projects

How a project starts?

Projects are done for one of the following three reasons
Business Requirements: Example: The government requires airline companies to implement safety-management systems. A company needs to find out the success of their ecommerce web-site.

Opportunities:To take advantage of an opportunity like technology breakthrough. Example: many projects may be planned targeting iPhone.

Problem: To reduce/eliminate a problem. Airport x faces 2/3 accidents every year, the airport authority may wish to perform a project to identify causes and develop solutions.

How a project is selected?
Project Selection:
A particular project may have different alternative solutions. A company may have multiple project plans and they need to select one of them.
But How?

1. Scoring Model: Identify some matrix to find which project strategy is better or which project will be more profitable. Assign values for these parameters and select which one provides greater value.

2. Benefit contribution: Use cost benefit analysis, short term and long term cost benefit analysis.

3. Economic models:

Benefit Cost Ratio
Cash Flow
Internal Return Rate
Present Value and Net Present Value
Opportunity Cost
Discounted Cash Flow
Return on Investment

Will a project succeed?

There are many mathematical models to justify/predict the success of a project.

Do we need to consider project stakeholders?

Yes. Because the project may benefit some people and may cause dis-advantages to some people. Project managers need to manage and convince both of the groups.

How a project is formalized?

A project charter is developed to present the business needs and the outcome. It is just a document that is reviewed before (or for)project authorization.

Input to Developing the project Charter

Statement of Work
Enterprise environmental factors
Organizational process assets

Tools for Developing the project Charter

Project Selection Methods
Project Management Methodology
Project management information systems
Expert Judgement

Output of Developing the project Charter

Project Justification
Project description
Project requirements
High level schedule and milestones
Proposed project manager

Preliminary Project Scope Statement

After a project charter is authorized. A Preliminary Project Scope Statement may need to be developed. It may be discussed with the project stakeholders to facilitate project success.

Input to Developing Project Scope Statement

Similar to the inputs to Developing the project Charter
Tools and Techniques

Project Management Methodology
Project Management Information System

Preliminary Project Scope Statement lists:

The product
Requirements of the product
Project boundaries
Initial work breakdown structure
Cost estimate

Series Navigation<< Review: Overview of Project ManagementPart – 1 : Initiating Projects >>
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