CC603: PROJECT MANAGEMENT

CHAPTER 2:
PROJECT LIFECYCLE
MOHD RUSHDY BIN YAACOB
RAFIKULLAH BIN DERAMAN
POLISAS

PROJECT LIFECYCLE
The Project Life Cycle refers to a logical
sequence of activities to accomplish the
projects goals or objectives.
Regardless of scope or complexity, any project
goes through a series of stages during its life.
There is first an Initiation (Defining) or Birth
phase, in which the outputs and critical
success factors are defined, followed by a
Planning phase, characterized by breaking
down the project into smaller parts/tasks, an
Execution phase, in which the project plan is
executed, and lastly a Closure or Exit phase,
that marks the completion of the project.

PROJECT LIFECYCLE
Project activities must be grouped into phases
because by doing so, the project manager and
the core team can efficiently plan and organize
resources for each activity, and also objectively
measure achievement of goals and justify their
decisions to move ahead, correct, or terminate.
It is of great importance to organize project
phases into industry-specific project cycles.
Why? Not only because each industry sector
involves specific requirements, tasks, and
procedures when it comes to projects, but also
because different industry sectors have different
needs for life cycle management methodology.

CHARACTERISTICS OF
PROJECT LIFECYCLE
Costs and staffing levels are low at start,
peak during the intermediate phases and
drop rapidly at end
Level of uncertainty is highest at start
Stakeholder influence highest at start
Phases can be subdivided into sub
phases
Each phase concludes with a review to
determine acceptance
Phase can be closed without initiating
any other phases

PROJECT LIFECYCLE
Another way of illustrating the unique nature of
project work is in terms of the project lifecycle.
Because the project has a beginning and end,
it is said to have a lifecycle.
A number of writers have sought to define this
lifecycle in terms of a set discrete stages
through which the project passes. For example,
Rustain and Estes (1995) define a lifecycle,
which commences with a concept phase and
concludes with a post accomplishment phase
as shown in figure 1.2.
Four intermediate phases are identified.

FOUR PHASES
THE FOUR PHASES ARE:

PROJECT LEVEL OF
INTENSITY
The starting point begins the
moment the project is given the goahead. Project intensity as shown in
figure 1.3 starts slowly, builds to a
peak, and then declines to delivery of
the project to the customer.

PROJECT LEVEL OF
INTENSITY

DEFINING/INITIAL STAGE
In the defining stage, specifications and
project objectives are define. Teams and
the roles and responsibilities for each
member are established at this stage.
In this first stage, the scope of the
project is defined along with the
approach to be taken to deliver the
desired outputs. The project manager is
appointed and in turn, he selects the
team members based on their skills and
experience.

DEFINING/INITIAL STAGE
The most common tools or
methodologies used in the initiation
stage are Project Charter,
Business Plan, Project Framework
(or Overview), Business Case
Justification, and Milestones Reviews.

PLANNING STAGE
The second phase should include a detailed
identification and assignment of each task
until the end of the project. It should also
include a risk analysis and a definition of a
criteria for the successful completion of each
deliverable.
The governance process is defined, stake
holders identified and reporting frequency and
channels agreed. The most common tools or
methodologies used in the planning stage are
Business Plan and Milestones Reviews.

PLANNING STAGE
The level of intensity increases in the
planning stage. Plans are developed to
determine 4Ws. What are the 4Ws?

Work Breakdown Structure

To achieve successful contract and
corporate objectives, it needs proper
planning to identify responsibilities
and element in the construction
project.
The FIRST STEP in preparing
planning is develop Work Breakdown
Structures (WBS).
WBS table or figure to show each
steps in project.

Work Breakdown Structure

It describes the work elements of a project in a logical
hierarchy which can be used for a number of related
management control activities.
A WBS is a product-oriented family tree composed of
hardware, services, and data which result from project
engineering efforts during the development and
production of a defense material item, and which
completely defines the project/program.
MIL-STD-881A "Work Breakdown Structures for Defense
Material Items"
A WBS displays and defines the products to be
developed or produced and relates the elements of work
to be accomplished to each other and to the end
product.

Work Breakdown Structure (Design Principles -The

100% Rule)

EXECUTION PHASE
Next, a major portion of the project
work takes place at the executing
stage. Both physical and mental
resources are needed at this stage to
produce a physical product. Time,
cost and quality are used for control.
The most important issue in this
phase is to ensure project activities
are properly executed and controlled.

EXECUTION PHASE
During the execution phase, the planned
solution is implemented to solve the
problem specified in the project's
requirements. In product and system
development, a design resulting in a
specific set of product requirements is
created.
This convergence is measured by
prototypes, testing, and reviews. As the
execution phase progresses, groups across
the organization become more deeply
involved in planning for the final testing,
production, and support.

DELIVERING STAGE
Finally, is delivering stage which
includes the two main activities;
a. Delivering the project product to the
customer
b. Redeploying the projects resources
In this last stage, the project manager
must ensure that the project is brought
to its proper completion.

DELIVERING STAGE
The delivering or closure phase is
characterized by a written formal project review
report containing the following components: a
formal acceptance of the final product by the
client, Weighted Critical Measurements
(matching the initial requirements specified by
the client with the final delivered product),
rewarding the team, a list of lessons learned,
releasing project resources, and a formal
project closure notification to higher
management. No special tool or methodology is
needed during the closure phase.

Project Execution and Monitoring

-Project Planning, Scheduling and
Controlling-

Chapter Concepts
The responsibilities of the project
manager
The skills needed to successfully
manage projects and ways to develop
project manager competence
How the project manager can
manage and control changes to the
project

Project Manager
Responsibilities
Customer satisfaction
Work scope completion
Quality manner, within budget, on time
Planning the project
Securing and organizing the appropriate
resources
Controlling the project progress
Coordinate with team
Control the project

Important Skills for The Project Manager

Technical
Skills
Budgeting and
cost Skills
Leadership
Skills

Marketing,
contracting customer
relationship Skills

Important Skills For

Project Manager

Resource management,
human relationship
skills

Negotiating
Skills
Scheduling &
time management
Skills
Communication
Skills

24

CONCEPT OF GOOD
LEADERSHIP FOR PROJECT
MANAGER

Project Manager
Responsibilities
Planning
Define project objective
Reach agreement with customer
Communicate objective to project team
Create vision of successful accomplishment
Spearhead plan development
Review plan with customer
Use project management information system

Project Manager
Responsibilities Organizing
Secure appropriate resources
Determine in-house tasks
Determine need for subcontractor
Assign responsibility
Delegate authority
Create motivating environment
Manage time well
Have self-discipline
Be able to prioritize
Show a willingness to delegate

Project Manager
Motivating
Train and develop the project team
Believe that all individuals are valuable
Encourage initiative
Identify situations for mentoring
Assess opportunities for growth
Encourage self reflection for learning

Project Manager
Directing
Achieve results through the project team
Use a participative and consultative leadership
style
Provide guidance and coaching to the project team
Require involvement and empowerment of the
project team
Establish an environment of trust, high
expectations, and enjoyment
Have self confidence
Exhibit confidence in the project team
Develop a relationship with each team member

Project Manager
Directing
Maintain interpersonal relationships for duration
of the project
Influence the thinking and actions of others
Deal with disagreements or divisiveness
Be a good problem solver
Start with the early identification of a problem or
potential problem
Encourage project team members to identify
problems early and solve them

Project Manager
Communicating
Be good communicators
Communicate and share information
Spend more time listening than talking
Inform the customer of progress
Determine any changes
Provide timely feedback to the team and customer
Employ negotiating skills in interactions
Develop a trusting relationship with the other person
Use effective listening
Take cultural differences into consideration
Strengthen relationships, not erode them

Project Manager
Responsibilities
Controlling
Track actual progress
Compare progress to planned progress
Take necessary actions
Play the leadership role
Involve project team
Must be able to handle the stress
Remain calm
Cope with constantly changing conditions
Act as a buffer between the project team and either the
customer or upper management
Have a good sense of humor
Keep physically fit to improve ability to handle stress

Managing Change
Initiation of Change
By the customer
By the project team
Caused by unanticipated
occurrences
Required by the users of
the project results

Manage and Control Change

Establish procedures for

communication
Estimate impact of change
Decide about the change
Customer approves
change

Summary
It is the responsibility of the project manager to make sure that the
customer is satisfied that the work scope is completed in a quality
manner, within budget, and on time.
The project manager has primary responsibility for providing
leadership in planning, organizing, and controlling the work effort to
accomplish the project objective.
The project manager is a key ingredient in the success of a project
and needs to possess a set of skills that will help the project team
succeed.
Project manager competence can be developed through a number
of activities, individually or with others.
The project manger manages and controls changes to minimize any
negative impact on the successful accomplishment of the project
objective.

RESOURCES IN THE
PROJECT MANAGEMENT

RESOURCES IN THE PROJECT

MANAGEMENT

Labour resources management

Labour resource management is an important
aspect that require serious consideration during
project development.
It is made up of between 20-30% of total
construction cost.
To ensure the success of a project, one has to
properly manage labour. Managing labour
involved planning, organizing, monitoring and
control.
Improper labour resources management can
cause problems during the construction stage.

 Problem related to labour are:

a) Unskilled labour poor workmanship, lack of
experience & training
b)Shortage
c) Poor supervision lack of supervisor, lack of
experience
d)Slow mobilisation low motivation, poor access

Material resources management

The cost of construction materials can be in the
range of between 20-40% of total construction cost.
Appropriate control is required to ensure the actual
cost is in between budget.
Material resources are supplies and stocks that are
needed to complete a project.
Quality of materials are a set of specified standard
that usually stipulated in the contract documents
Wastage on construction site can be in between the
range of 3-8% of total materials usage.
It is important to control wastage at site to increase
profitability and reduce the impact on environment.

 Materials affect dates or duration only when you

have to wait for those materials to become
available.
Several causes that lead to waste at construction
site are:
a) Weather flooding, long exposure, decay
b) Lost / stolen
c) Requisition wrong order, extra quantity of order
d) Cutting & handling no planning in cutting,
improper handling
e) Quality materials

Plants and equipment

One of the most important resources to be
managed is plant and equipment.
The cost may varies from the range of 20-40% of
total construction cost.
Appropriate planning and acquiring of machineries
can help to reduce or avoid the problems face
during construction stage.
Planning and scheduling of machineries /
equipment must be indicated on the work
programmed. Requisition on acquiring must be
made once the decision has been made to use a
particular machinery.

 Analysis of leveling on the usage of

machineries/equipment can guide the managers to
make critical decision.
Undoubtedly, critical activities will be given the
most priority.
If during a particular day, 2 or more activities
require the use of same equipment, hence priority
must be given to the critical activity.
Despite careful planning and acquisition, problems
may still occur during construction stage.

 The problem that faced by the contractor during

the construction progress are:
a) Breakdown no maintenance, over usage
b)Shortage unplanned, several activities
c) Inefficient unskilled operations, under capacity
d)Stolen no security, no hoarding
e) Unavailability unaware of market availability, no
requisition

Acquisition of machineries/ equipments

The decision to acquire construction
machineries/equipment has to be considered
seriously cause the capital required is very high.
The cost of some machineries can be in the range
of several hundred thousand to million ringgit.
If decided to purchase and own a particular
machine, one has to take into account services
such as maintenance, rental, cost account, etc.

 Acquiring construction machineries can be

considered through several option as shown in
figure below.

OVERHEADS
Management cost company is expense rate bear by the
company to manage and administer staff and office
equipment.
Matter subject include :
a) Pay, allowance and other payment to all employees of the
company.
b)Office rental, storehouse store, workshop and others.
c) Electric payment, phone, post, insurance, telegraph and
others.
d)Office equipment as furniture, typewriter, computer,
photocopier, paper, stationery and others.
e) Payment to operate workshop and for equipment no
motorized.

PROFIT
To ensure contractor business can run perfectly,
then company need some allocation to
accommodate cost management and
administration liability something contract.
Profit rate count by percent from all material cost,
labour and plant. Profit calculated is gross profit
( gross profit ). Gross profit comprise from:

a) Net profit ( nett cost )

b)Overhead Cost ( overhead )