Intro to Project Management: Project Life Cycle - Pre-Project Activities, Feasibility Study Business Case Project Charter

What This Is

Pre-project activities are essential steps that occur before a project begins. They help determine whether a project is feasible, identify the business case, and create a project charter. A project charter is a document that formally authorizes a project and defines its objectives, scope, and stakeholders. For example, when a city decides to build a new bridge, they conduct a feasibility study to determine if the project is viable, create a business case to justify the investment, and develop a project charter to outline the project's objectives and scope.

Key Terms & Formulas

• Feasibility Study: A preliminary investigation to determine if a project is viable and achievable.
• Business Case: A document that justifies the investment in a project by outlining its benefits, costs, and risks.
• Project Charter: A document that formally authorizes a project and defines its objectives, scope, and stakeholders.
• Stakeholder: A person or organization with an interest in the project's outcome.
• Project Sponsor: The person or organization that provides the resources and support for the project.
• Project Manager: The person responsible for planning, executing, and delivering the project.
• Scope Statement: A document that outlines the project's objectives, deliverables, and boundaries.
• Project Initiation Document (PID): A document that outlines the project's objectives, scope, and stakeholders.
• EV = % complete × BAC (Earned Value = percent complete times Budget at Completion)
• BAC =? (PV) (Budget at Completion = sum of Planned Value)
• PV = BCWS (Planned Value = Budgeted Cost of Work Scheduled)

Step-by-Step / Process Flow

1. Conduct a Feasibility Study: Gather data and information to determine if the project is viable and achievable.
2. Develop a Business Case: Outline the project's benefits, costs, and risks to justify the investment.
3. Create a Project Charter: Define the project's objectives, scope, and stakeholders.
4. Identify Stakeholders: Determine who has an interest in the project's outcome.
5. Assign a Project Sponsor: Identify the person or organization that will provide the resources and support for the project.
6. Appoint a Project Manager: Choose the person responsible for planning, executing, and delivering the project.

Common Mistakes

• Mistake: Failing to conduct a thorough feasibility study.
• Correction: Conduct a comprehensive feasibility study to determine if the project is viable and achievable.
• Mistake: Not developing a clear business case.
• Correction: Develop a well-defined business case to justify the investment and outline the project's benefits, costs, and risks.
• Mistake: Not creating a project charter.
• Correction: Create a project charter to formally authorize the project and define its objectives, scope, and stakeholders.

Exam Tips

• Tip: Be able to explain the differences between a feasibility study and a business case.
• Tip: Understand the importance of a project charter in formalizing the project's objectives, scope, and stakeholders.
• Tip: Be able to identify the key stakeholders and project sponsor in a project.

Quick Practice Questions

1. If the CPI is 0.8, is the project under or over budget? Answer: Over budget. Explanation: CPI (Cost Performance Index) is the ratio of EV (Earned Value) to AC (Actual Cost). If CPI is 0.8, it means that the project is taking longer than expected to complete, resulting in an over budget situation.
2. What is the purpose of a feasibility study? Answer: To determine if a project is viable and achievable. Explanation: A feasibility study is a preliminary investigation to determine if a project is feasible and achievable.
3. What is the difference between a business case and a project charter? Answer: A business case justifies the investment in a project, while a project charter formally authorizes the project and defines its objectives, scope, and stakeholders. Explanation: A business case outlines the project's benefits, costs, and risks, while a project charter defines the project's objectives, scope, and stakeholders.

Last-Minute Cram Sheet

• Feasibility Study: A preliminary investigation to determine if a project is viable and achievable.
• Business Case: A document that justifies the investment in a project by outlining its benefits, costs, and risks.
• Project Charter: A document that formally authorizes a project and defines its objectives, scope, and stakeholders.
• Stakeholder: A person or organization with an interest in the project's outcome.
• Project Sponsor: The person or organization that provides the resources and support for the project.
• Project Manager: The person responsible for planning, executing, and delivering the project.
• Scope Statement: A document that outlines the project's objectives, deliverables, and boundaries.
• Project Initiation Document (PID): A document that outlines the project's objectives, scope, and stakeholders.
• EV = % complete × BAC (Earned Value = percent complete times Budget at Completion)
• BAC =? (PV) (Budget at Completion = sum of Planned Value)
• PV = BCWS (Planned Value = Budgeted Cost of Work Scheduled)
• CPI = EV / AC (Cost Performance Index = Earned Value / Actual Cost)
• A feasibility study is not the same as a business case.
• A project charter is not the same as a project initiation document.
• A project sponsor is not the same as a project manager.