Project Life Cycle Management Phases from POME by Gautam Koppala
Project Life Cycle Management Phases from POME by Gautam Koppala
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Home Page > Business > Corporate > Project Life Cycle Management Phases from POME by Gautam Koppala
Project Life Cycle Management Phases from POME by Gautam Koppala
Posted: Aug 18, 2010 |Comments: 0
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Project Life Cycle Management Phases from POME by Gautam Koppala
By: GAUTAM KOPPALA
About the Author
GAUTAM KOPPALA, With over a decade, track record of successful leadership, excellent results through strategic skills in driving revenue and profit growth. Demonstrated ability to identify and trouble shoot critical issues impacting productivity, cost, distribution, marketing, Strategic positioning, sales and financial operations, with innate ability to build and maintain strong client relationships in operations. Expert in distilling and managing processes, enhancing internal structures, and promoting multi-skilled team competencies via nurturing mentorship and inspirational leadership. Engagements have spanned operational, strategic, technological and change management roles. Academically, I am a cum laude graduate with a Bachelor of Technology degree in Electrical and Electronics Engineering (B-Tech E.E.E.) and a post graduate in Masters in Human Resources Management (M.H.R.M.) and Masters of Foreign Trade (M.F.T.). As you will see my Post Graduation’s were been studied part-time, as well as working full-time as an Engineer. I feel that this demonstrates my ability to maintain dedication, motivation and enthusiasm for a project management over a long period of time. In addition, balancing full-time work with study has perfected my time-management and organizational skills. I believe that my college degrees and gamut certifications in combination with my extensive broad-based work experience along with my drive, resourcefulness and determination, would make me an excellent candidate for a senior management position with any company. Highlights of my background include Operations related Commercial, Supply chain, Sales with a magnificent experience in Project management, technically oriented towards Automation and Security Systems in Industrial and Building sectors. Presently, writing a book on Projects and Operations Management (comprise of 12 volumes, 6K pages), and awaited for the reputed publications. These books can be checked in Google books and other search engines too.
(ArticlesBase SC #3071245)
Article Source: http://www.articlesbase.com/ – Project Life Cycle Management Phases from POME by Gautam Koppala
Project Life Cycle Management Phases:
Every program, project, or product has certain phases of development known as life-cycle phases. A clear understanding of these phases permits managers and executives to better control resources to achieve goals.
During the past few years, there has been at least partial agreement about the life-cycle phases of a product. They include:
Research and development
Market introduction
Growth
Maturity
Deterioration
Death
Today, there is no agreement among industries, or even companies within the same industry, about the life-cycle phases of a project. This is understandable because of the complex nature and diversity of projects.
The theoretical definitions of the life-cycle phases of a system can be applied to a project. These phases include:
Conceptual
Planning
Testing and Implementation
Closure
Concept Phase( Intial Investigation): The process starts with a customer’s project opportunity either as an idea requiring more definition or a formal request for the Business units to provide a proposal. This Concept phase concepts are of sales and Marketing, Contract Management, Tendering and Bid Process, explained in detailed break down chapters of POME. When possible, company recommends the technical definition of the project be created with as much detail as possible sometime. The Proposal can then be created along with preliminary project plans for the customer’s consideration. In other cases the project may be won before the technical definition is completed and so these activities would be done later. There are many variations for how a project starts and the concept phase may need to be repeated for large change orders. It includes the preliminary evaluation of an idea. Most important in this phase is a preliminary analysis of risk and the resulting impact on the time, cost, and performance requirements, together with the potential impact on company resources. The conceptual phase also includes a “first cut” at the feasibility of the effort.
Planning Phase( Definition and Confirmation) Upon project award, the Project Planning begins. Detailed plans appropriate to the project size and complexity are created and approved and the project baseline established. Company utilizes a Gating process to confirm work at various points in the process. With the infrastructure, team members and communications in place, the project is ready to kick off.
The second phase is the planning phase. It is mainly a refinement of the elements in the conceptual phase and requires a firm identification of the resources required and the establishment of realistic time, cost, and performance parameters. This phase also includes the initial preparation of documentation necessary to support the system. For a project based on competitive bidding, the conceptual phase would include the decision of whether to bid, and the planning phase would include the development of the total bid package (i.e., time, schedule, cost, and performance).
Coming to this phase, because of the amount of estimating involved, analyzing system costs during the conceptual and planning phases is not an easy task. As shown in the below Figure, most project or system costs can be broken down into operating (recurring) and implementation (nonrecurring) categories. Implementation costs include one-time expenses such as construction of a new facility, purchasing computer hardware, or detailed planning. Operating costs include recurring expenses such as manpower. The operating costs may be reduced as shown in the below Figure if personnel perform at a higher position on the learning curve. The identification of a learning curve position is vitally important during the planning phase when firm cost positions must be established. Of course, it is not always possible to know what individuals will be available or how soon they will perform at a higher learning curve position.
Once the approximate total cost of the project is determined, a cost-benefit analysis should be conducted (see below Figure) to determine if the estimated value of the information obtained from the system exceeds the cost of obtaining the information. This analysis is often included as part of a feasibility study. There are several situations, such as in competitive bidding, where the feasibility study is actually the conceptual and definition phases. Because of the costs that can be incurred during these two phases, top-management approval is almost always necessary before the initiation of such a feasibility study.
Implementation Phase: The engineering work then begins organized by work package and engineering discipline. The technical activities follow a design, build, test cycle that may be iterative. The integrated project baseline is managed including progress against deliverables, schedule and cost. The Leadership Team monitors and controls this project delivery and utilizes formal review and approval process for baseline changes. Interfaces to Company manufacturing as well as those for procurement and subcontracts are managed. The work continues into the Site activities based on the contract scope.
This phase is the implementation and testing phase, which integrates the project’s product or services into the existing organization. If the project was developed for establishment of a marketable product, then this phase could include the product life-cycle phases of market introduction, growth, maturity, and a portion of deterioration.
Testing also part of the implementation phase is predominantly a final standardization effort so that operations can begin. Almost all documentation must be completed in this phase.
Closeout Phase: Transitions occur between Company organizations, the customer’s contractors and finally with the end user. Many variations, Cost savings, Claims, Changes occur regarding where contracts and purchase orders end and closeout processes are applied as needed. The closeout of project contracts signals the start of warranty and service support activities.
The final phase is closure and includes the reallocation of resources. Consider a company that sells products to consumers. As one product begins the deterioration and death phases of its life cycle (i.e., the divestment phase of a system), new products or projects must be established. Such a company would, therefore, require a continuous stream of projects to survive, as shown in the below Figure. As projects A and B begin their decline, new efforts (project C) must be developed for resource reallocation. In the ideal situation these new projects will be established at such a rate that total revenue will increase and company growth will be clearly visible.
The closure phase evaluates the efforts of the total system and serves as input to the conceptual phases for new projects and systems. This final phase also has an impact on other ongoing projects with regard to identifying priorities.
Thus far no attempt has been made to identify the size of a project or system. Large projects generally require full-time staffs, whereas small projects, although they undergo the same system life-cycle phases, may require only part-time people. This implies that an individual can be responsible for multiple projects, possibly with each project existing in a different life-cycle phase. The following questions must be considered in multiproject management:
Are the project objectives the same? For the good of the project?
For the good of the company?
Is there a distinction between large and small projects?
How do we handle conflicting priorities? Critical versus critical projects
Critical versus noncritical projects
Noncritical versus noncritical projects
The phases of a project and those of a product are compared in the below Figure. Notice that the life-cycle phases of a product generally do not overlap, whereas the phases of a project can and often do overlap.
The below Table identifies the various life-cycle phases that are commonly used. Even in mature project management industries such as construction, one could survey ten different construction companies and find ten different definitions for the life-cycle phases.
The life-cycle phases for computer programming, as listed in the below Table, are also shown in the above Figure, which illustrates how manpower resources can build up and decline during a project. In the below Figure, PMO stands for the present method of operations, and PMO’ will be the “new” present method of operations after conversion. This life cycle would probably be representative of a twelve-month activity. Most executives prefer short data processing life cycles because computer technology changes rapidly. An executive of a major utility commented that his company was having trouble determining how to terminate a computer programming project to improve customer service because, by the time a package is ready for full implementation, an updated version appears on the scene. Should the original project be canceled and a new project begun? The solution appears to lie in establishing short data processing project life-cycle phases, perhaps through segmented implementation.
Top management is responsible for the periodic review of major projects. This should be accomplished, at a minimum, at the completion of each life-cycle phase.
More companies are preparing procedural manuals for project management and for structuring work using life-cycle phases. There are several reasons for this trend:
Clear delineation of the work to be accomplished in each phase may be possible.
Pricing and estimating may be easier if well-structured work definitions exist.
Key decision points exist at the end of each life-cycle phase so that incremental funding is possible.
As a final note, the reader should be aware that not all projects can be simply transposed into life-cycle phases (e.g., R&D). It might be possible (even in the same company) for different definitions of life-cycle phases to exist because of schedule length, complexity, or just the difficulty of managing the phases.
Project Evolution:
Note: the below check list does not only fulfill the requirements of the entire life cycle of the Projects, but it contains many other factors, based upon the cateorisation of the Project
Concept Defining Phase comprises of
ü Support Sales: Pursue Opportunity,
ü Need Analysis
ü Support Sales: Procurement Strategy,
ü Support Sales: Initial Project Plan,
ü Support Sales: Generate the Proposal,
ü Support Sales: List Assumptions, Constraints and Exceptions,
ü Support Sales: Initial Risk Analysis,
ü Setting aims and objectives
ü Support Sales: Franchising
ü Support Sales: Export Strategy
ü Support Sales: Selling a Product/ Service
ü Complying with the Tendering
ü Support Sales: Safety and Security Risk Analysis,
ü Support Sales: Booking Contracts
ü Establish Project Management,
ü Create Definition Plan,
ü Resolve Definition Issues,
ü Match Definition to Estimates,
ü Anticipate Definition Related Impacts
Note: Check Contracts, Sales and Marketing, Tender Concepts in POME
Planning Phase comprises of
ü Establish Project Repository,
ü Effect of the Projects on the Share Market
ü Create Resource Plan,
ü Form the Project Team,
ü Identify Training, Requirements,
ü Customer Responsibilities,
ü Compile Overall Project Plan,
ü Risk Planning,
ü Quality Planning,
ü Procurement Planning,
ü Communications Plan,
ü Issue and Action Log,
ü Insurance
ü Conduct the Kickoff Meeting
Project Controls:
The inputs required for the control phase are the Project plan, clearance for the design team, functional specialists, Organisation policies and the operation guidelines along with the Customer acceptance criteria. The recommended tools used by the members during the phase are the project management software tools, Project reference templates, expert judgments, output of the meetings within the team member and functional experts. The out put of the phase will be the project plan with modifications and updating, latest Project status with issue resolution, risk mitigation.
Concept Phase comprises of
ü Support Sales: Labor and Resource Estimates,
ü Support Sales: Develop Initial Schedule
Planning Phase comprises of
ü Change Planning,
ü Prepare Schedule,
ü Resource Load the Schedule,
ü Prepare Budgets,
ü Create Project Baseline,
ü Plan Status Reporting,
ü Checking Foreign Trade regulations
ü Plan Financial Reporting
ü Forecasting forward Exchange rates
ü Budget Planning
Implementation Phase comprises of
ü Measure Progress,
ü Prepare Status Reports,
ü Track the Schedule,
ü Schedule and Resource Forecasts,
ü Prepare Schedule Reports,
ü Track Costs,
ü Track Procurement Financials,
ü Inputs to Accounting
ü Checking Percentage of Completion ( PoC)
ü Cash Flows and Credit Control
ü Update Financial Forecasts,
ü Prepare Financial Reports,
ü Monitor and Control the Baseline,
ü Manage Time and Expense Data Entry
Transitions and Closeout Phase comprises of
ü Complete Financial Closeout,
ü Prepare Commercial Archives
Engineering Disciplines
Concept Phase comprises of
ü Support Sales: Define the Solution,
ü Support Sales: Develop Prototypes,
ü Support Sales: System Hardware and Software Estimates,
ü Gather Early Design Information (FEED),
ü Collate Data into Requirements,
ü Plan for Design Control,
ü Create Definition Documents,
ü Establish the Definition Baseline,
ü Release Definition to Design,
Planning Phase comprises of
ü Apply Document Controls,
ü Define Work Packages,
ü Identify Involved,
ü Document the Engineering Plan,
ü Safety Planning,
ü Configuration, Management Plan.
ü Establish Transmittal System
Implementation Phase comprises of
ü Manage Technical Risks,
ü Ensure Quality Compliance,
ü Project Team Safety
ü Create Purchase, Requisitions,
ü Monitor Goods Delivery,
ü Manage Subcontract Delivery,
ü Manage Engineering Inputs,
ü Manage Remote and Subcontracted, Engineering,
ü Manage Technical Concerns,
ü Establish Backup Procedures,
ü Identify Reusable Engineering,
ü Identify or Create Design Standards,
ü Create Design Documents,
ü Establish Design Controls,
ü Perform Design Reviews,
ü Perform Engineering Implementation,
ü Manage Rework and Changes,
ü Test Against the Design,
ü Release to Integration and Acceptance
ü Integration Center Services,
ü Prepare the Integrated System,
ü Create Acceptance Test Documents,
ü Establish Test Controls
ü Conduct Acceptance Tests,
ü Release to Site,
ü Perform Installation,
ü Perform Construction,
ü Perform Construction ,Completion Checks,
ü Integrate the Site System,
ü Perform Commissioning,
ü Perform Site Acceptance Testing,
ü Detect and Manage Field Changes,
ü Operator Training,
ü Perform Cutover,
ü Perform Support
Transitions and Closeout Phase comprises of
ü Complete Technical Closeout,
ü Prepare Technical Archives
The Project Execution sequence, PMBOK, from PMInstitute, comprises of:
ü Project Charter,
ü preparing the Scope Statement of the Project
ü Preparing the Project management Plan
ü Preparing the Cost management Plan
ü Preparing the Scope management Plan
ü Preparing the Work Break Down structure
ü Preparing the Quality management Plan
ü Preparing the Project Communications Plan
ü Identifying the Change management Plan
ü Identifying the Risk management Plan
ü Risk Controlling
ü Reporting Risk Management Log
ü Preparing the Staffing Management Plan
ü Preparing the Procurement Management Plan
ü Project Close out
As per the PMBOK, from PMInstitute,
The Knowledge areas comprises of the following from the Buyer Prospective:
Integration Management consists of
Develop Project Charter
Develop Preliminary Project Scope Statement
Develop Project Management Plan
Direct and Manage Project Execution
Monitor and Control Project Work
Integrated Change Control
Close Project
Scope Management consists of
Scope Planning
Scope Definition
Create WBS
Scope Verification
Scope Control
Time Management consists of
Activity Definition
Activity Sequencing
Activity Resource Estimating
Activity Duration Estimating
Schedule Development
Schedule Control
Cost Management consists of
Cost Estimating
Cost Budgeting
Cost Control
Quality Management consists of
Quality Planning
Perform Quality Assurance
Perform Quality Control
Human Resource Management consists of
Human Resource Planning
Acquire Project Team
Develop Project Team
Manage Project Team
Communications Management consists of
Communications Planning
Information Distribution
Performance Reporting
Manage Stakeholders
Risk Management consists of
Risk Management Planning
Risk Identification
Qualitative Risk Analysis
Quantitative Risk Analysis
Risk Response Planning
Risk Monitoring and Control
Procurement Management consists of
Plan Purchases and Acquisitions
Plan Contracting
Request Seller Responses
Select Sellers
Contract Administration
Contract Closure
As per PMBOK, PMInstitute
Process Groups Consists of
Initiating comprises of
Develop Project Charter
Develop Preliminary Scope Statement
Planning comprises of
Develop Project Management Plan
Scope Planning
Scope Definition
Create WBS
Activity Definition
Activity Sequencing
Activity Resource Estimating
Activity Duration Estimating
Schedule Development
Cost Estimating
Cost Budgeting
Quality Planning
Human Resource Planning
Communications Planning
Risk Management Planning
Risk Identification
Qualitative Risk Analysis
Quantitative Risk Analysis
Risk Response Planning
Plan Purchases and Acquisitions
Plan Contracting
Executing comprises of
Direct and Manage Project Execution
Perform Quality Assurance
Acquire Project Team
Develop Project Team
Information Distribution
Request Seller Responses
Select Sellers
Monitoring and Controlling comprises of
Monitor and Control Project Work
Integrated Change Control
Scope Verification
Scope Control
Schedule Control
Cost Control
Perform Quality Control
Manage Project Team
Performance Reporting
Manage Stakeholders
Risk Monitoring and Controlling
Contract Administration
Closing comprises of
Close Project
Contract Closure
POME LIGHTER VEIN:
The Pet Store
So, here’s the deal. This guy walks into a pet store and he wants to buy a monkey. He looks at the first monkey and .. well the monkey looks normal, he’s doing the normal monkey thing, and the guy asks, “How much for this monkey?”
The store manager replies “$5000″.
The guy yells – “$5000? Are you kidding? This is daylight robbery!”
The store manager explains – “You see, this is a programmer monkey. He knows a little bit of VB6″.
The guy continues to look around, and looks at this monkey doing really interesting hoops in his cage, clearly this is a very bright monkey. The guy asks, “well how much for this one”?
The store manager replies – “$10000″
The guy yells – “Wow you are really kidding me this time”.
The store manager explains – “You see, this monkey can do C#, Java, AND C++. He’s a really smart monkey”.
So the guy decides that he needs to aim lower, and stops when he looks at this really dull monkey who is really not doing anything, just sitting in a corner – completely low IQ. The guy thinks to himself, this monkey is what I need I think .. and asks “Well how much for this one?”
The store manager replies – “Oh this monkey is $50,000″.
The guy yells back – “GIVE ME A BREAK !! What is so great about this monkey?”
The store manager explains – “well, I’m not sure, he just sits around all day, does nothing, and calls himself project manager”.
Concluding Project Management Process in Simple Steps:
Acquisition / Marketing Phase:
Project Pre- acquisition informationEnd user likes to know about the product
Take Drawings (if needed to quote)
Information from the Market/ consultant
Acquisition Go/ No Go decision
Project Acquisition
Bid Decision
Offering Price/ Sales Phase:
Bid- PreparationTake Drawings (if needed to quote)
Analogous Estimation
Tentative BOQ’s
Budgetary Quote
Budget sanction from Customer
Technical DiscussionsDeviations to be given by sales to customers during the technical discussions, with the help of Sales supporting Engineering Team
Techno Economic Evaluation Reports
Freeze BOQ’s
Technical Bid
Technical Clearance
Bid Approval
Contract Negotiation/ Price comparisons with other biddersNo biased upon any vendor
Price bids are kept in the secret lockers
Buyer goes for L1 Policy normally (L1= lowest bid, L2= Next lowest Bid…….. H2: Next Highest Bid, H1: Highest bid)
Project Won/ Lost
Project Handover
Realization/ Project Execution Phase:
Project internal handover from the sales to the ProjectsAllocate and Authorize the Project Manager
Prepare the Project Charter and scope of Job
Start the Project
Order receipt classification
Project opening and ClarificationsType of Contract
Checking of the Total Cost/ Contingency Cost( if permissible)/ Sales Price/ Taxes
Project Manager must confirm about the feasibility of the project and approbate the Project Charter
Check the technical aspects with engineering departmentChecks the BOQ items( Local and Import)
Discuss with the sales( if there are technical misgivings)
Differentiate with the Standard and non standard BOQ items, assistance from the procurement- local & import
Built up of System architecture/ Technical planning
Detailed Project Process Planning
Approval of Detailed Project Process PlanningEntering the Detailed Project in to ERP with Work Break down structure( WBS)
Internal sign off between Projects and Sales
Re-evaluation of the Budgeted cost and Operation Costs time to time from now onwards.
Purchasing/ Manufacturing Technical specs( Purchase Requisition) to be received from the Engineering Department
Check the sub Contractors/ Vendors scope and Quotations
Check of the dead inventory/ Material Godowns for the BOQ items and then only order
Check for the Billable and non billable items( free of cost to customers)
Check for the Merit Duty/ Nil Duty as per the Contract terms.
Classify the BOQ material in to Imported and Local
Check for the local material taxes (central sales tax/ Value added Tax. Octroi / Excise Duty/ Nil Duty)
Check for the imported taxes( Customs Tax, EXIM Policies)
Buyers will get the quotation and must check List Price/ transfer Price
Dispatch Approval
Dispatch
Material and Resources at the site
Construction/ Installation
commissioning
Acceptance
Project Closure
Service Operations Phase
Handing over from the Projects to services
Study of the Technical and Commercial Clarifications
Warranty Period
Completion of the maintenance period.
Gautam Koppala,
POME Author
Retrieved from “http://www.articlesbase.com/corporate-articles/project-life-cycle-management-phases-from-pome-by-gautam-koppala-3071245.html”
(ArticlesBase SC #3071245)
GAUTAM KOPPALA -
About the Author:
GAUTAM KOPPALA, With over a decade, track record of successful leadership, excellent results through strategic skills in driving revenue and profit growth. Demonstrated ability to identify and trouble shoot critical issues impacting productivity, cost, distribution, marketing, Strategic positioning, sales and financial operations, with innate ability to build and maintain strong client relationships in operations. Expert in distilling and managing processes, enhancing internal structures, and promoting multi-skilled team competencies via nurturing mentorship and inspirational leadership. Engagements have spanned operational, strategic, technological and change management roles. Academically, I am a cum laude graduate with a Bachelor of Technology degree in Electrical and Electronics Engineering (B-Tech E.E.E.) and a post graduate in Masters in Human Resources Management (M.H.R.M.) and Masters of Foreign Trade (M.F.T.). As you will see my Post Graduation’s were been studied part-time, as well as working full-time as an Engineer. I feel that this demonstrates my ability to maintain dedication, motivation and enthusiasm for a project management over a long period of time. In addition, balancing full-time work with study has perfected my time-management and organizational skills. I believe that my college degrees and gamut certifications in combination with my extensive broad-based work experience along with my drive, resourcefulness and determination, would make me an excellent candidate for a senior management position with any company. Highlights of my background include Operations related Commercial, Supply chain, Sales with a magnificent experience in Project management, technically oriented towards Automation and Security Systems in Industrial and Building sectors. Presently, writing a book on Projects and Operations Management (comprise of 12 volumes, 6K pages), and awaited for the reputed publications. These books can be checked in Google books and other search engines too.
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Developing and Managing Project Team from POME by Gautam Koppala
By:
GAUTAM KOPPALAl
Business>
Corporatel
Oct 18, 2010
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GAUTAM KOPPALA, With over a decade, track record of successful leadership, excellent results through strategic skills in driving revenue and profit growth. Demonstrated ability to identify and trouble shoot critical issues impacting productivity, cost, distribution, marketing, Strategic positioning, sales and financial operations, with innate ability to build and maintain strong client relationships in operations. Expert in distilling and managing processes, enhancing internal structures, and promoting multi-skilled team competencies via nurturing mentorship and inspirational leadership. Engagements have spanned operational, strategic, technological and change management roles. Academically, I am a cum laude graduate with a Bachelor of Technology degree in Electrical and Electronics Engineering (B-Tech E.E.E.) and a post graduate in Masters in Human Resources Management (M.H.R.M.) and Masters of Foreign Trade (M.F.T.). As you will see my Post Graduation’s were been studied part-time, as well as working full-time as an Engineer. I feel that this demonstrates my ability to maintain dedication, motivation and enthusiasm for a project management over a long period of time. In addition, balancing full-time work with study has perfected my time-management and organizational skills. I believe that my college degrees and gamut certifications in combination with my extensive broad-based work experience along with my drive, resourcefulness and determination, would make me an excellent candidate for a senior management position with any company. Highlights of my background include Operations related Commercial, Supply chain, Sales with a magnificent experience in Project management, technically oriented towards Automation and Security Systems in Industrial and Building sectors. Presently, writing a book on Projects and Operations Management (comprise of 12 volumes, 6K pages), and awaited for the reputed publications. These books can be checked in Google books and other search engines too.









