Intro to Project Management: Project Life Cycle - Phases of a Project, Starting Organizing Preparing Carrying Out Work Closing

What This Is

The phases of a project are the sequential stages that a project goes through from initiation to completion. Understanding these phases is crucial for successful project delivery as it helps project managers plan, execute, and monitor projects effectively. For instance, consider building a new highway. The project starts with planning, followed by organizing and preparing the site, carrying out the construction work, and finally closing the project by handing over the completed highway to the authorities.

Key Terms & Formulas

• Project Life Cycle: The stages a project goes through from initiation to completion.
• Project Phases: The sequential stages of a project life cycle (Starting, Organizing & Preparing, Carrying Out Work, Closing).
• Starting Phase: The initiation stage where the project is conceptualized, and the project charter is created.
• Organizing & Preparing Phase: The stage where the project team is assembled, and the project plan is developed.
• Carrying Out Work Phase: The execution stage where the project work is carried out, and the project deliverables are created.
• Closing Phase: The final stage where the project is formally closed, and the project deliverables are handed over to the stakeholders.
• Triple Constraint: Scope, Time, Cost – changes to one affect the others.
• EV = % complete × BAC (Earned Value = percent complete times Budget at Completion).
• CPM (Critical Path Method): A technique used to identify the critical path in a project schedule.
• SPI (Schedule Performance Index): EV / BAC (Earned Value / Budget at Completion).
• CPI (Cost Performance Index): EV / AC (Earned Value / Actual Cost).
• CV (Cost Variance): EV - AC (Earned Value - Actual Cost).

Step-by-Step / Process Flow

1. Identify the Project Phases: Determine the starting, organizing and preparing, carrying out work, and closing phases of the project.
2. Develop a Project Schedule: Create a project schedule using techniques like CPM to identify the critical path.
3. Monitor and Control the Project: Track the project progress, and take corrective action if necessary.
4. Close the Project: Formalize the project closure, and hand over the project deliverables to the stakeholders.

Common Mistakes

• Mistake: Failing to identify the project phases and develop a project schedule.
• Correction: Identify the project phases, and develop a project schedule using techniques like CPM to ensure timely completion of the project.
• Mistake: Not monitoring and controlling the project progress.
• Correction: Regularly track the project progress, and take corrective action if necessary to ensure the project stays on track.
• Mistake: Not formally closing the project.
• Correction: Formalize the project closure, and hand over the project deliverables to the stakeholders to ensure a smooth transition.

Exam Tips

• Distinguish between the project phases: Be able to identify the starting, organizing and preparing, carrying out work, and closing phases of a project.
• Understand the triple constraint: Recognize that changes to scope, time, or cost affect the other two.
• Know the formulas: Be familiar with formulas like EV = % complete × BAC, SPI = EV / BAC, CPI = EV / AC, and CV = EV - AC.

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 the planned value, 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 the planned value, which means it is ahead of schedule.
3. If the CV is $100,000, and the EV is $500,000, is the project under or over budget? Answer: Under budget. Explanation: A CV of $100,000 indicates that the project is under budget by $100,000.

Last-Minute Cram Sheet

• Project Life Cycle: The stages a project goes through from initiation to completion.
• Project Phases: The sequential stages of a project life cycle (Starting, Organizing & Preparing, Carrying Out Work, Closing).
• Triple Constraint: Scope, Time, Cost – changes to one affect the others.
• EV = % complete × BAC (Earned Value = percent complete times Budget at Completion).
• SPI = EV / BAC (Schedule Performance Index = Earned Value / Budget at Completion).
• CPI = EV / AC (Cost Performance Index = Earned Value / Actual Cost).
• CV = EV - AC (Cost Variance = Earned Value - Actual Cost).
• CPM (Critical Path Method): A technique used to identify the critical path in a project schedule.
• Decomposition breaks down work, not activities – it creates the WBS, not the activity list.
• The project charter is a document that authorizes the project, not a project plan.
• The project scope statement describes the project scope, not the project deliverables.