i The Project Management Life Cycle ii This page intentionally left blank iii iv Publisher’s note Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publishers and authors cannot accept responsibility for any errors or omissions, however caused. No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the material in this publication can be accepted by the editor, the publisher or any of the authors. First published in Great Britain and the United States in 2006 by Kogan Page Limited Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publica- tion may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic repro- duction in accordance with the terms and licences issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses: 120 Pentonville Road 525 South 4th Street, #241 London N1 9JN Philadelphia PA19147 United Kingdom USA www.kogan-page.co.uk © Jason Westland, 2006 The right of Jason Westland to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. British Library Cataloguing-in-Publication Data ACIPrecord for this book is available from the British Library. ISBN 0 7494 4555 6 Typeset by SaxonGraphics Ltd, Derby Printed and bound in Great Britain by Cambridge University Press v Contents List of figures vii List of tables ix Foreword xiii Preface xv Chapter 1 Overview 1 1.1 Introduction 1 1.2 What is a project? 2 1.3 What is project management? 2 1.4 The project life cycle 3 Chapter 2 Project initiation 16 2.1 Introduction 16 2.2 Develop a business case 17 2.3 Undertake a feasibility study 25 2.4 Establish the terms of reference 31 2.5 Appoint the project team 44 2.6 Set up the project office 49 2.7 Perform a phase review 53 vi l Contents Chapter 3 Project planning 56 3.1 Introduction 56 3.2 Create a project plan 57 3.3 Create a resource plan 64 3.4 Create a financial plan 68 3.5 Create a quality plan 74 3.6 Create a risk plan 78 3.7 Create an acceptance plan 84 3.8 Create a communications plan 87 3.9 Create a procurement plan 90 3.10 Contract the suppliers 95 3.11 Perform a phase review 129 Chapter 4 Project execution 132 4.1 Introduction 132 4.2 Build deliverables 133 4.3 Monitor and control 134 4.4 Perform time management 134 4.5 Perform cost management 141 4.6 Perform quality management 145 4.7 Perform change management 152 4.8 Perform risk management 159 4.9 Perform issue management 165 4.10 Perform procurement management 173 4.11 Perform acceptance management 178 4.12 Perform communications management 186 4.13 Perform a phase review 194 Chapter 5 Project closure 196 5.1 Introduction 196 5.2 Perform project closure 197 5.3 Review project completion 202 Chapter 6 Epilogue 217 Appendix: Project life cycle activity model and documents list 220 Glossary 224 Index 229 vii Figures 1.1 Project management components 3 1.2 The four phases of the project life cycle 4 1.3 Project initiation activities 5 1.4 Project planning activities 7 1.5 Project execution activities 11 1.6 Project closure activities 14 2.1 Project initiation activities 16 2.2 Project organization chart 37 2.3 Summarized project plan 39 2.4 Phase review form for the initiation phase 54 3.1 Project planning activities 56 3.2 Detailed project schedule 63 3.3 Detailed procurement schedule 96 3.4 Tender management process 98 3.5 Product delivery schedule 123 3.6 Supplier review schedule 125 3.7 Phase review form for the planning phase 130 4.1 Project execution activities 133 4.2 Time management process 136 4.3 Cost management process 143 4.4 Quality management process 148 4.5 Change management process 156 4.6 Change request form 160 viii l Figures 4.7 Risk management process 163 4.8 Risk form 166 4.9 Issue management process 168 4.10 Issue form 171 4.11 Procurement management process 174 4.12 Purchase order form 179 4.13 Acceptance management process 181 4.14 Acceptance form 184 4.15 Communications management process 187 4.16 Project status report 191 4.17 Phase review form for the execution phase 195 5.1 Project closure activities 196 5.2 Actual delivery schedule 206 A1 Project life cycle activity model 221 ix Tables 0.1 Audience benefits xviii 2.1 Business benefits 19 2.2 Business costs 20 2.3 Solution feasibility 20 2.4 Business risks 21 2.5 Business issues 22 2.6 Solution ranking 23 2.7 Business requirements 28 2.8 Solution risks 29 2.9 Solution issues 30 2.10 Solution feasibility 31 2.11 Project deliverables 33 2.12 Project organization 34 2.13 Project stakeholders 34 2.14 Project roles 35 2.15 Project approach 38 2.16 Project milestones 38 2.17 Project dependencies 40 2.18 Project resources 40 2.19 Project finances 41 2.20 Project processes 42 2.21 Project risks 42 2.22 Project issues 43