Project Life Cycles

By Eddie Merla, PMP ® 

Definition of a Project Life Cycle

Projects by definition have a beginning and an end.  Informally, all projects have a life cycle: an initiation or start, a middle (the execution of the project), and some sort of closure.  Many organizations formalize the life cycle through project management methodologies.  These methodologies break down the project life cycle into “phases.”  Each phase transitions the project through the project life cycle. 

A software development company, for example, might have a five phase project life-cycle:

• An Initiation Phase
• A Design Phase
• A Development Phase
• A Testing Phase and
• A Close-out Phase.

Each of the phases in this example helps advance the project from the idea or concept stage through the final phase of the project.  Each subsequent phase advances the development of the project.  The methodology and the phases of the methodology formalize the “progressive elaboration” of a project.    “Progressive elaboration” is a characteristic of most projects – we usually don’t know exactly what needs to be done until we progress through the life cycle of the project; as we progress through the project, we can better elaborate needs and requirements.

 Each phase in a life cycle will usually have a specific objective or set of objectives along with at least one output or deliverable.  A deliverable is defined as a tangible or verifiable result. Phases will also usually have some sort of criteria to close the phase and move on to the next phase.  These close-out items may be called “phase exits,” “stage gates,” or “kill points.”

 Characteristics of Project Life Cycles

Generally, all project life cycles share some common characteristics:

• Costs and staffing levels are usually lowest at the beginning of the project life cycle.  The majority of resources are applied during the execution phases of a project.  Typically, staffing levels begin to decrease significantly during the shutdown phases of a project.
• Risk and uncertainty are highest in the early phases of a project usually decreasing with each advancing phase.
• Stakeholders and project owners have the greatest influence over the direction and outcome of the project at the beginning of the project.
• The ability to make changes with the least impact on cost is highest at the beginning of a project.  The cost of making changes or correcting errors (rework) continues to increase with the highest costs occurring toward the end of the project life cycle.

Project vs. Product Life Cycle

Be aware that while a Project Life Cycle may overlap with a Product Life Cycle, the two cycles serve different purposes.  A product life cycle helps an organization introduce a new product.  Each “phase” in a product life cycle may also be a project.

As an example, a Toy manufacturing company may have a Product Concept Phase, a Marketing Analysis Phase, a Product Development Phase, a Manufacturing Phase and so on.  Each of these phases may then be managed as a project with its own life cycle.

The PMBOK® Process Groups and Project Life Cycles

The Project Management Body of Knowledge (PMBOK®) provided by the Project Management Institute (PMI®) organizes project management processes into five process groups:

·         Initiating

·         Planning

·         Executing

·         Monitoring and Controlling

·         Closing

These process groups are not meant to serve as a standard project life cycle.  In fact, these processes can be applied to a Project or to a specific Phase in a Project Life Cycle.

Tips for this lesson

·         Know the characteristics of project life cycles.

·         Know that a project life cycle may be different than a product life cycle.

·         Know that the five PMI® process groups can be applied to a project or to a specific phase in a project.

·         Know that PMI® does not dictate a standard life cycle.  PMI® provides a structure and recommended processes developed through project management best practices.

·         Terminology to know:  deliverable, phase, project methodology, Project Life Cycle, Product Life Cycle, phase exits, stage gates, kill points.

True or False?

1.      The PMBOK® provides Project Life Cycle standards which should be applied to all projects.

2.      A CEO of a product development company wants his company to subscribe to a Product Life Cycle methodology.  THE PMBOK® would provide a good source for this methodology.

3.      Kill points can be used to determine the close of a phase.

4.      A stage gate is a product requirement.

5.      Risk and uncertainty during the execution of a project are usually higher than risk and uncertainty during initiation.

6.      A key stakeholder’s influence over the scope of a project is usually highest at the beginning of a project.

7.      The cost of a rework is usually highest towards the end of a project.

8.      The PMI® process groups can be applied to the Concept Phase of a Product Life Cycle.

9.      Progressive elaboration is a form of stage gate.

10.  A planning document approval would be considered a deliverable.

Answers  

1.      False

2.      False

3.      True

4.      False

5.      False

6.      True

7.      True

8.      True

9.      False

10.  True

© 2010 Eddie Merla, PMP®

Article provided by:

Duende Project Management Services, a provider of Project Management Training and PMP® preparation products.  http://www.pmstudyproducts.com