The life cycles of a project are understood as certain phases through which this or that plan passes in the course of its implementation, as well as its functioning. This separation is important not only from a theoretical, but also from a practical point of view, because it makes it possible to better control the production process.
Definition of the term
The concept of the project life cycle implies a certain sequence of steps for the implementation of a particular idea regarding the production or management process. The role of this concept can be expressed in the following statements:
- determines the duration of the project, clearly indicating the dates of its start and end;
- allows you to detail the process of implementing the plan, breaking it into specific phases;
- makes it possible to clearly determine the number of personnel involved, as well as the necessary resources;
- facilitates the control procedure.
Project Life Cycle Stages
In the process of implementing this or that plan regarding the production process or other measures at the enterprise, several successive points can be distinguished. So, it is customary to distinguish the following stages of the project life cycle:
- Initiation - the idea is advanced, as well as the preparation of project documents. A detailed justification is carried out, as well as marketing research, which will serve as an aid to the implementation of subsequent stages.
- Planning - determining the timing of the implementation of the plan, the separation of these processes into specific stages, as well as the appointment of performers and responsible persons.
- Execution - begins immediately after the plans have been approved. It implies the full implementation of all the planned actions.
- Completion - analysis of the received data and monitoring for compliance with their planned. This responsibility in most cases rests with management.
It is worth noting that this division into stages of the project life cycle is very conditional. Each organization has the right to independently detail this process and break it down into stages.
Cycle phases
Four main phases of the project life cycle can be distinguished, namely:
- research prior to investing is the selection of the best project option, negotiations with interested parties, and the issue of securities through which capital will be raised;
- direct investment, when through the sale of shares or other financial instruments the organization receives the funds necessary for the implementation of the plan;
- project operation is a full-scale production process, which is carried out according to a pre-developed plan;
- post-investment research consists in evaluating the effectiveness of activities, as well as in determining whether the results obtained are intended.
Project Lifecycle Features
The life cycles of the project, as mentioned above, can be built individually, taking into account the specifics of an enterprise. Nevertheless, they all have some common features, namely:
- The largest number of costs and personnel involved in the implementation of the project is in the middle of the cycle. The beginning and end of this process are characterized by low indicators.
- At the first stage, the highest level of risk is observed, as well as uncertainties and doubts about the successful outcome of the activity.
- At the beginning of the project’s life cycle, participants have tremendous opportunities for making changes and improving methods for achieving goals. Over time, it becomes more difficult.
Cascading Project Life Cycle Model
Despite the fact that the life cycles for each individual project or organization can differ significantly, there are some generally accepted models that can serve as a basic basis. One of the most common is a waterfall, which involves the sequential implementation of each planned action and is characterized by the following features:
- drawing up a clear plan of action to achieve the goals;
- for each action, a specific list of tasks is determined, as well as mandatory works;
- the introduction of intermediate (control) stages, which will be used to monitor compliance with the previously developed plan.
Spiral model
Project life cycles that are cyclical are designed according to a spiral model. At each turn, development efficiency is determined in accordance with its cost. This model is characterized in that during its development one of the key positions is assigned to the risk component, which most often includes the following points:
- lack of qualified and experienced personnel;
- the ability to go beyond budget or not meet deadlines;
- loss of relevance of development during its implementation;
- the need to make changes in the production process;
- risks associated with external factors (supply disruptions, changes in the market situation, and so on);
- non-compliance of production capacity with the required level;
- contradictions in the work of various units.
Incremental model
Project life cycles can be considered in terms of an incremental model. The most relevant and justified its use will be in the case when it is assumed complex and large-scale work with a large number of participants. In this case, a large-scale project is divided into many small components, which, being implemented in parts, subsequently add up to a large-scale project.
An incremental model does not require a one-time investment of the entire necessary amount of funds. You can gradually deposit small amounts covering each of the steps. And since the entire project is divided into small components, it is quite flexible and allows you to make appropriate changes at any time. And one of the most important points is to minimize the risks that are evenly distributed between the phases (increments).
Project Life Cycle Principles
Project life cycles are characterized by a number of principles, namely:
- the presence of a detailed plan, which clearly spells out all the time periods, dates, participants, as well as indicators in digital terms that should be achieved based on the results of the work;
- a reporting system should be developed in accordance with which, at the end of each stage, monitoring of the compliance of the achieved results with the declared will be carried out;
- the presence of an analysis system in accordance with which the future situation can be predicted in order to make adjustments;
- the organization must have a system for responding to unforeseen situations so that work can be directed in the right direction at any stage of the life cycle.
Project Life Cycle Example
It is important in practice to study the project life cycle. An example is the development and release of a new smartphone model. So, at the initial stage, you must do the following:
- to formulate goals - increasing sales, entering new markets;
- problem study - analysis of existing models and consumer needs;
- study and adjustment of the presented development;
- drawing up a plan that will reflect the specific terms of implementation, participants and responsible persons, as well as the budget of this project.
The development stage involves focusing on the main object and includes:
- the appointment of a project manager - it can be a leading engineer or a person who made this rationalization proposal ;
- search for sources of financing - attracting investors or using their own reserves;
- if necessary, special equipment, parts and software are purchased;
- The analysis of risks that may be associated with the actions of competitors or the reaction of the consumer to a new product is carried out.
At the stage of project implementation, the direct process of production of a new smartphone model begins. It is important here to continuously monitor the use of resources, compliance with deadlines, and most importantly - the quality and compliance of the results with the planned.
At the final stage, all production activities must be completed, and the goods launched for sale (after preliminary tests). Also here should be carried out control of budget spending and deadlines.