Intro to Project Management: Project Life Cycle - Iterative and Incremental, Life Cycles

What This Is

Iterative and Incremental Life Cycles are project management approaches that involve breaking down the project into smaller, manageable chunks, and delivering them in a series of iterations or increments. This approach is essential for successful project delivery, especially in projects with high uncertainty, changing requirements, or complex technical dependencies. For example, consider building a software application with unknown user needs or a construction project with shifting site conditions.

Key Terms & Formulas

• Iterative Life Cycle: A project management approach where the project is divided into multiple iterations, each building on the previous one, with continuous improvement and refinement.
• Incremental Life Cycle: A project management approach where the project is divided into multiple increments, each delivering a portion of the final product or service.
• Waterfall Model: A linear project management approach where each phase is completed before moving on to the next one, with little to no overlap.
• Incremental Cost: The cost of adding new features or functionality to an existing product or service.
• Iterative Cost: The cost of revising or refining existing features or functionality.
• CPI (Cost Performance Index) = EV / AC (Cost Performance Index = Earned Value / Actual Cost)
• SPI (Schedule Performance Index) = EV / PV (Schedule Performance Index = Earned Value / Planned Value)
• Earned Value (EV) = % complete × BAC (Earned Value = percent complete times Budget at Completion)
• Budget at Completion (BAC) = Total Budget × % complete (Budget at Completion = Total Budget times percent complete)
• Earned Value Management (EVM): A project management technique that uses earned value to measure project performance.

Step-by-Step / Process Flow

1. Define the project scope and objectives: Identify the project's deliverables, stakeholders, and constraints.
2. Break down the project into iterations or increments: Divide the project into smaller, manageable chunks, and establish a clear delivery schedule.
3. Establish a feedback loop: Regularly review and refine the project's deliverables, incorporating stakeholder feedback and lessons learned.
4. Monitor and control the project: Track progress, identify and mitigate risks, and adjust the project plan as needed.
5. Iterate and refine the project: Continuously improve and refine the project's deliverables, incorporating stakeholder feedback and lessons learned.

Common Mistakes

• Mistake: Assuming an iterative or incremental life cycle is the same as a waterfall model.
• Correction: Recognize that iterative and incremental life cycles involve continuous improvement and refinement, whereas waterfall models are linear and sequential.
• Mistake: Failing to establish a clear feedback loop.
• Correction: Regularly review and refine the project's deliverables, incorporating stakeholder feedback and lessons learned.
• Mistake: Not tracking progress and identifying risks.
• Correction: Monitor and control the project, tracking progress and identifying and mitigating risks.

Exam Tips

• Distinguish between iterative and incremental life cycles: Recognize that iterative life cycles involve continuous improvement and refinement, whereas incremental life cycles involve delivering a portion of the final product or service.
• Understand the importance of feedback loops: Regularly review and refine the project's deliverables, incorporating stakeholder feedback and lessons learned.
• Be aware of the differences between Earned Value Management (EVM) and other project management techniques: EVM uses earned value to measure project performance, whereas other techniques may use different metrics.

Quick Practice Questions

1. If the CPI is 0.8, is the project under or over budget? Answer: Under budget. Explanation: A CPI of 0.8 indicates that the project is earning 80% of its budget, which means it is under budget.
2. If the SPI is 1.2, is the project ahead or behind schedule? Answer: Ahead of schedule. Explanation: An SPI of 1.2 indicates that the project is earning 120% of its planned value, which means it is ahead of schedule.
3. If the EV is $100,000 and the BAC is $200,000, what is the percent complete? Answer: 50%. Explanation: Earned Value (EV) is equal to percent complete times Budget at Completion (BAC), so 100,000 = 0.5 × 200,000.

Last-Minute Cram Sheet

• Iterative Life Cycle: Breaks down the project into multiple iterations, each building on the previous one.
• Incremental Life Cycle: Breaks down the project into multiple increments, each delivering a portion of the final product or service.
• Waterfall Model: A linear project management approach where each phase is completed before moving on to the next one.
• Incremental Cost: The cost of adding new features or functionality to an existing product or service.
• Iterative Cost: The cost of revising or refining existing features or functionality.
• CPI (Cost Performance Index) = EV / AC (Cost Performance Index = Earned Value / Actual Cost)
• SPI (Schedule Performance Index) = EV / PV (Schedule Performance Index = Earned Value / Planned Value)
• Earned Value (EV) = % complete × BAC (Earned Value = percent complete times Budget at Completion)
• Budget at Completion (BAC) = Total Budget × % complete (Budget at Completion = Total Budget times percent complete)
• Earned Value Management (EVM): A project management technique that uses earned value to measure project performance.
• Feedback loops are essential in iterative and incremental life cycles: Regularly review and refine the project's deliverables, incorporating stakeholder feedback and lessons learned.
• EVM is not the same as other project management techniques: EVM uses earned value to measure project performance, whereas other techniques may use different metrics.