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Project cycle. Project life cycle: phases, stages and milestones

The period of time between the moment a project appears and the moment it is liquidated is called project cycle(also called project life cycle).

Life cycle project– the initial concept for researching the problems of financing project work and making appropriate decisions.

Each project, regardless of its complexity and the amount of work required for its implementation, goes through certain stages in its development: from the state when “there is no project yet” to the state when “the project is no longer there”. The principal structure of the project cycle is shown in fig. 2.7.

Note. The range of resource requirements is determined by the type and complexity of the project.

Rice. 2.7. Principal structure of the life cycle of a traditional investment project

For business people the beginning of the project is associated with the beginning of its implementation and investment Money in its execution.

The end of a project can be:

Commissioning of objects, the beginning of their operation and the use of the results of the project;

Transfer of project personnel to another job;

Achieving the desired results;

Termination of funding;

Start of work on making major changes to the project that were not provided for by the original plan (modernization);

Decommissioning of project objects.

Usually, both the fact of the start of work on the project and the fact of its liquidation are formalized by official documents.

The states through which the project passes are called phases (stages, stages).

There is no universal approach to dividing the project implementation process into phases. Solving such a task for themselves, project participants should be guided by their role in the project, experience and specific conditions for the implementation of the project (Fig. 2.8 and 2.9). In practice, the division of the project into phases can be very diverse - as long as it identifies some important milestones (milestones), during the passage of which additional information is viewed and possible directions for the development of the project are assessed.

In turn, each selected phase (stage) can be divided into phases (stages) of the next level (sub-phases, sub-stages), etc.

With regard to very large projects, such as the construction of a subway, the development of an oil and gas field, etc., the number of phases and stages of their implementation can be increased.

Separation of additional stages in major projects is connected not only with the long duration of construction of these facilities (10-15 years), but also with the need for more careful coordination of the actions of the organizations participating in the project.

All project activities are interdependent in time and space. However, it is almost impossible to provide an unambiguous distribution of phases and stages of project implementation in a logical and temporal sequence. The problems associated with this are solved with the help of the experience, knowledge and skill of the specialists working on the project.

Projects are understood as certain phases through which one or another idea passes in the process of its implementation, as well as functioning. This division 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 stages for the implementation of an 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 define the number of personnel involved, as well as the necessary resources;
facilitates the control process.

Project life cycle stages

In the process of implementing a particular idea regarding the production process or other activities at the enterprise, several successive moments can be distinguished. So, it is customary to distinguish the following stages of the project life cycle:

Initiation - the idea is put forward, as well as the preparation of project documents. A detailed justification is made, as well as marketing research that will help guide the next steps.
Planning - determining the timing of the implementation of the plan, dividing these processes into specific stages, as well as appointing performers and responsible persons.
Execution - begins immediately after the plans have been approved. It implies the implementation in full of all planned actions.
Completion - analysis of the received data and control for their compliance with the planned ones. In most cases, this responsibility rests with management.

It should be noted 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

There are four main phases of the project life cycle, namely:

pre-investment research is a choice the best option project, negotiations with interested parties, as well as 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 manufacturing process which is carried out according to a predetermined plan;
post-investment research consists in evaluating the effectiveness of activities, as well as in determining the compliance of the results obtained with the expected ones.

Features of the project life cycle

Project life cycles, as mentioned above, can be built individually, taking into account the specifics of a particular enterprise. However, 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 rates.
At the first stage, there is the highest level of risk, as well as uncertainty and doubts about the successful outcome of the activity.
At the beginning of the project life cycle, participants have a huge opportunity to make changes and improve the methods of achieving goals. As time goes by, this becomes more difficult to do.

Waterfall project life cycle model

Although the life cycles for each individual project or organization may vary significantly, there are some generally accepted models that can serve as a basic framework. One of the most common is waterfall, which implies the sequential execution of each planned action and is characterized by the following features:

drawing up a clear action plan to achieve the goals;
for each action, a certain list of tasks is determined, as well as mandatory work;
introduction of intermediate (control) stages, at which control over compliance with the previously developed plan will be carried out.

spiral model

Project life cycles, which are cyclical, are developed according to the spiral model. At each turn, the development efficiency is determined in accordance with its cost. This model differs in that during its development, one of the key positions is assigned to the risk component, which most often includes the following items:

lack of qualified and experienced personnel;
the ability to go over budget or not meet deadlines;
loss of relevance of the development during its implementation;
the need to make changes in the production process;
risks associated with external factors(supply interruptions, changes in the market situation, and so on);
non-compliance with the required level;
contradictions in the work of various departments.

incremental model

Project life cycles can be viewed from the perspective of an incremental model. Its most relevant and justified use will be in the case when complex and large-scale work with a large number of participants is expected. 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.

The incremental model does not require a one-time investment of the entire required amount of funds. You can gradually contribute small amounts covering each of the stages. And since the whole project is broken down into small parts, it is flexible enough to allow you to make appropriate changes at any time. And one of the most important points is the minimization of risks, which are evenly distributed between the phases (increments).

project cycle

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, deadlines, participants, as well as indicators in digital terms that must be achieved as a result 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 ones 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 contingency response system in place so that work can be directed in the right direction at any stage of the life cycle.

Project Life Cycle Example

It is important to study the project life cycle in practice. An example is the development and release of a new smartphone model. So, at the initial stage, you need to do the following:

formulate goals - increasing sales, entering new markets;
study of the problem - analysis of existing models and needs of consumers;
study and correction of the presented development;
drawing up a plan that will reflect the specific timing of implementation, participants and responsible persons, as well as the budget of this project.

The development stage implies a focus on the main object and includes:

the appointment of a project manager - this may be either the person who spoke with this;
search for sources of financing - attraction of investors or use of own reserves;
if necessary, purchased special equipment, details and software;
conducted which may be related to the actions of competitors or the reaction of the consumer to a new product.

At the project implementation stage, the direct production process of a new smartphone model begins. Here it is important to continuously monitor the use of resources, compliance with deadlines, and most importantly, the quality and compliance of the results obtained with the planned ones.

At the final stage, all production activities must be completed, and the product launched for sale (after preliminary tests). Also, there should be control over the expenditure of the budget and the fulfillment of deadlines.

Project cycle A sequential process in which a project is planned, executed and evaluated. Approaches: First. 1. Project formation: project selection. 2. Project planning: starts with a preliminary plan, and then, as the project progresses, detailed project planning is carried out. 3. Implementation of the project: as the project progresses, the progress of work is constantly monitored. The project in the course of work may change, and as it is implemented, it may be subject to adjustment. 4. Project Completion: The project ends when the goals have been achieved or it becomes clear that they cannot be achieved. Second. (developed by the European Commission - project cycle management). 1. Project Programming: The goal is to define and agree on the main objectives in such a way as to provide a programmatic framework within which specific projects can be prepared. 2. Definition of the project idea: possible project ideas are carefully selected. A decision is made about the appropriateness of each project idea, as well as which ideas should be developed further. 3. Project formulation: the project is formulated and the decision to apply for project financing is formulated. 4. Implementation of the project: resources are mobilized and the project is implemented. If necessary, an adjustment is made. 5. Evaluation of the project: determines what has been achieved and what lessons can be learned from the project for the future. Third. There is a division into groups. 1. Processes of initiation: the decision to start the project. 2. planning processes: defining the goals and criteria for the success of the project, developing schemes for achieving them. 3. Processes of execution and control: coordination of the work of resource executors for the implementation of the plan. Main execution processes (project plan execution processes) and auxiliary (execution accounting, quality control, development of the project team). 4. Review processes: determining whether the project plan and project execution are in line with the objectives and making adjustment decisions. The analysis processes are basic (directly related to the goals of the project: analysis of terms, cost, quality) and educational (factors influencing the goals of the project: availability of resources). 5. Management processes: determination of the necessary corrective actions, their coordination and approval. Main management processes (goal management, resource management) and auxiliary (risk and conflict management). 6. Completion processes: formalization of the project implementation and bringing to the final (completion and closing of contracts, administrative completion). Fourth. Logical-structural approach (LSP). Gives an easily visible view of complex projects, their goals, main components and relationships between them, necessary resources, as well as defining the area of responsibility of project managers.

Goal levels (project logic)	Measurable indicators of achievement		Assumptions and risks
Common goals	Overall Goal Indicators	Sources and methods for validating achievements
Project Goals	Indicators of achievement of specific goals	Sources and methods for validating achievements	Assumptions affecting the relationship between specific and general objectives
results	Indicators of achievement	Sources and methods for validating achievements	Assumptions affecting the relationship between results and specific objectives
Actions	Required human and physical resources	The cost of human and physical resources	Assumptions affecting the relationship between activities and results

Project initiation.

It starts with the emergence of the idea of the project and continues until a decision is made on the participation or non-participation of the company in the project. Stages: 1. Identifying a problem to be solved or an opportunity that will give the company an advantage in the marketplace. Projects start with an internal non-formalized idea (example: the appearance of a problem - political changes, increased competition; the emergence of an opportunity - excess enterprise resources, free market) or an external proposal of the customer, reflected in terms of reference(associated with the possibility of making a profit, but not less normative value). 2. Formalization of the idea. Types of documents formalizing the idea of the project: explanatory note, project application, short description project. the composition of such a note: the original working title of the project (full and short), the goal of the project and its feasibility analysis, communication with the company's business, description of the changes, the proposed result / product of the project, pre-required resources, intended participants, time and budget, possible risk and project constraints. 3. Making a decision on the stratum/cancellation of the project. the project initiation document is analyzed by: analysis of the achievability of the project goal, designation of a measurable expected result. If all is well, then start the project. If the project itself is promising, the goals are unattainable due to any reasons (lack of resources), then actions can be taken to make the project feasible (example: buy resources or rent). 4. Appointment of a leader and development of a project concept. Launching a project and appointing a leader. His task is a deeper analysis of ideas, setting more specific final goals, developing and evaluating possible alternative strategies for achieving goals. 5. Determining the priority of the project. Usually I use a generalized indicator to establish the priority of the project "result-cost", reflecting the ratio between the expected result of the project and the planned total costs. 6. Formation of the project team and selection of the start time. as soon as the start time is clearly indicated, the project is considered started, the project manager receives the authority and responsibility for its success.

Purpose and strategy of the project.

The overall goal of the project should be stated in the form of its constituent sub-goals. This hierarchy is formulated as follows: project mission (description of what will happen to the system, business, when the project is implemented); subgoals of the first level; subgoals of the second and subsequent levels. The goal tree can also be displayed graphically.

Having clearly formulated the goals, you need to list all the required and desired results. Next, alternative strategies are developed. The project implementation strategy is the development of specific directions of action with the aim of the results of the project received by the tree of goals. There is one mission, there can be several strategies. The development and selection of strategies is carried out at three different organized levels: corporate strategy - the general direction of development, that is, the strategy of growth, preservation or reduction; business strategy - a strategy for ensuring the competitive position of the project product in a particular market; functional strategy is developed for each functional unit in order to specify the chosen project strategy.

The choice of strategy involves an assessment: qualitative - intuition of the project management, expert assessments, compliance with the overall development strategy of the enterprise; quantitative - marketing research, computer modeling, decision tree method.

If there are many strategies, then the factor accounting method is used to reduce the number of strategies. factors: production, marketing, financial, social, administrative. They are ranked with expert assessments calculate the ratings of alternative strategies. Based on the selected strategies, a basic plan for the implementation of the project is formed.

Project implementation.

Implementation includes: execution of strategies and all work aimed at creating the result of the project, as well as monitoring of work, control of implementation and change management in the project. Uncertainty - a situation in which it is difficult to predict in which direction events will develop and what consequences this will lead to. Risk is a probabilistic assessment of the occurrence of some undesirable event, the consequence of which will be a delay, a deviation from the budget, or a deterioration in the quality of the product. It is necessary to identify and assess the risk in the implementation of the project. Execution of strategies: 1. Problem Management. A problem is a phenomenon similar to a risk, only its action is not yet dangerous. Problem management requires the following: a. analyze all current problems of the project. B. Determine the impact of identified issues on the project. C. Predict the impact of each problem on the project in the absence of corrective actions. D. Select best solution. 2. Change management. Change is a necessary response to a significant deviation in a project. The main procedures for working on change management: 1. Receipt of a request for a change. 2. Analysis of the request for the feasibility and effectiveness of its implementation from the perspective of the project, budget, resources or other positions. 3. Approval of the decision - to accept, reject or postpone the implementation of the change. 4. If the change is accepted, then the agreement with the customer is carried out, the changes are implemented (budget adjustment). 5. If you reject the change, everyone is simply informed. 6. If the change is postponed, an additional analysis is carried out. 3. Error management. It involves the creation of a database. The meaning of learning lessons for future projects.

Project Completion Options

The project is considered completed: 1.after the work on his product has given a positive result and the official transfer to the customer is organized.2. If the work on the project ends with a negative result that can no longer be changed.3. The project can be frozen for an indefinite period, in case of loss of interest from the investor or customer.4. In the event that the organization, the executor or customer of the project, expresses a certain lack of confidence in the project manager or team. After the transition of the project to the completion phase, the following activities are performed: A. The financial accounts of the project are closed, B. The team is disbanded, C. An inventory of unused materials, equipment and other resources is carried out, D. The project database is closed, E. A post-check of the project is performed, F. The project archive is formed, created and maintained.

General Project Planning Issues

The project plan contains: 1. Task - the work carried out within the framework of the project to achieve a certain result. Task duration is the period of working time required to complete the task. Labor costs - the amount of labor costs of one or a group of workers required to solve a problem. 2. Resources - personnel and equipment necessary to carry out project tasks. Property - the cost of their use in the project. Yes: time rate and cost per use. 3. Purpose – connection of a certain task and resources. Thanks to it, tasks are solved: those responsible for performing tasks are determined, when the tasks for which the resource is responsible are determined, it is possible to calculate the total amount of time spent by him on the project. Tasks can be fixed: Duration, work or amount of resources. The essence of the planning process: final clarification and fixation of the project goal, definition and formation of the entire complex of activities and works, assignment and linking of the necessary resources, coordination of the actions of the project participants. Types of project plans: preliminary sketch, preliminary sketch with details, preliminary plan, generalized basic, detailed basic, generalized current, detailed current, selective current. A set of planning steps: 1. Fix the goal of the project and how to achieve it. 2. Fix the result of the project. 3. Based on the goal and the main strategy, break the project into separate manageable elements. 4. Define performance standards for each lower level element. 5. Estimate the time required for each element of the lower level. 6. determine the sequence of execution of the lower-level elements and make a project schedule. 7. Determine the control points of the elements of the lower level with the maximum duration. 8. determine the costs for each element, combine everything in the estimate and summarize. 9. Determine the composition of the team, the responsibility of all team members. 10. Assess the risks, make a plan for working with them. 11. Develop a communications, quality and supply management plan. 12. Consolidate all materials into a single project management plan.

Planning the scope of work.

Represents the process of dividing the entire scope of work on the project into separate manageable elements in order to build a hierarchical structural model, necessary and sufficient in terms of the composition of elements for planning and controlling work on different levels project management for different participants. Approaches: vertical decomposition – the total volume is divided into details (sales analysis). Horizontal decomposition - the total amount of work is divided by external suppliers or consumers.

When a project is broken down into individual basic elements, a work breakdown structure(SRR). The basis for splitting the CPP into constituent elements can be: the components of the product being created, the phases of the project life cycle, investors, the order of work. Basic rules of the SRR : 1. Each CPP element aggregates all subordinate elements. 2. CPP contains all the work on the creation of the product of the project and related to the management of the project. 3. The structure should be logically broken down to the level at which it is possible to determine how these elements will be implemented. 4. Everything must be logically connected. 5. Decomposition may not be symmetrical. 6. Each end element of the SRR must provide a tangible result. 7. The level of detail should provide Successful planning, coordination and control. 8. The results of the elements must be clearly defined. 9. The CPP must be flexible. 10. All work packages must be consistent with the organizational structure of the project and the contractor, and with the cost structure. 11. Development can be either top-down or vice versa, or both. 12. The duration of individual works should not exceed 0.5-2% of the entire project. Mistakes and difficulties with CPP: omission of general blocks of the upper level and transition to the list of detailed works, excessive or insufficient detail, development of WBS elements that define only the main stages without taking into account the intermediate results of the project.

Project time planning.

The goal is to build a project schedule and determine its optimal duration. graphical methods: 1 . Gantt Chart - tape calendar chart. Shows the order in which work is to be performed. Each separate work project is represented by a horizontal line placed on the timeline. Works are placed from top to bottom. Calendar dates are marked on the horizontal scale. During the planning phase, a milestone plan (achievement of certain intermediate results for the product) is prepared, which is then supplemented with actual dates. 2. Network chart. Sequence of events and activities. Arrow diagram. The work is shown as an arrow. The beginning of the project is depicted on the left side of the diagram, where work begins. Completion of work on the right side of the scheme. The duration of the work is marked on the arrow in units (hours, days). Precedence diagram. The geometric figure reflecting the work package or work fits: name, duration, additional parameters. The transition from one job to another is depicted by an arrow, it shows the sequence of execution. critical path- the longest sequence of works. Types: 1. Critical - lying on the critical path. 2. Near-critical - lying on the way, close to critical. 3. Non-critical - have a margin of time. 3. Calendar-network schedule – a combination of the Gantt chart and network graphics. The works are plotted on a strip chart linked by arrows in their logical sequence.

Optimization of the critical path: 1. Refusal of non-important critical work. 2. Creation of parallel sequences, overlapping of subsequent works with previous ones. 3. Reducing the time of the critical work itself.

Project estimate.

The goal is to complete the project within the approved budget. The estimate has an error: initiation 30-50%, development of a basic plan - 5-10%, detailed work planning - 3-5%. Project budget planning approaches: 1.Passive- based on the calculation of the cost of the project for projects-analogues, in terms of scope of work and standards. Used in budgeting standard projects or in conditions of strict rationing of the industry. 2. Active- based on minimizing the cost of the project by varying the variables. Planning is always done anew. used in budgeting business projects when costs should be kept to a minimum. Project cost planning methods: 1.Similarly- the planned object is similar to a number of others. Then the total cost of the project is determined based on the accumulated experience, and then this cost is distributed among the tasks. 2. By parameters– certain parameters are evaluated. Better for small projects. 3. Down up- calculation of the cost of individual tasks of the project and the formation of the total cost of all work. The valuation is based on resources such as cost per unit of time and cost per unit of material. Plus - the most accurate result and the involvement of lower-level managers in the preparation of estimates. The downside is the possibility of overestimating the use of the size of the estimate due to the fear that management will further reduce it by some percentage. 4. Top down- calculation of the total income for the project with their subsequent distribution to the components of the project. It is based on the collection of opinions and expert assessments of management, then descends to lower-level managers for discussion.

Basic project plan

Includes management plans for major project areas. 1. Brief annotation of the project and its status (summary). 2. The main part: the introduction, content and boundaries of the project (objective tree, the main scope of the project, project performance criteria), project constraints and assumptions, requirements and standards, the technology used to create the product and project implementation, detailed work breakdown structure, project schedule (indication control points indicated by the critical path), a matrix for the distribution of responsibility and work by performers, resource provision, project estimates, organizational structure(stakeholders, project team), communication management plan, risk management plan, quality management plan, supply management plan, functional plans for areas, links to external documents, additional documents (charter).

Analeptics. Classification. General characteristics of drugs, comparative characteristics, differences in indications for prescription. Side effect.

The states through which the project passes are called phases (stages, stages).

There is no universal approach to dividing the project implementation process into phases. Solving such a problem for themselves, the project participants should be guided by their role in the project, their experience and the specific conditions of the project. Transitions from one stage to another are rarely clearly defined, except when they are formally separated by accepting an offer or obtaining permission to proceed. Therefore, in practice, the division of the project into phases can be very diverse - if only such a division reveals some important control points ("milestones"), during the passage of which additional information is viewed and possible directions for the development of the project are assessed.

In turn, each selected phase (stage) can be divided into phases (stages) of the next level (sub-phases, sub-stages), etc.

In relation to very large projects, for example, the construction of a subway, the development of an oil and gas field, etc. the number of phases and stages of their implementation can be increased.

The allocation of additional stages in large projects is associated not only with the long duration of the construction of these facilities (10-15 years), but also with the need for more careful coordination of the actions of the organizations participating in the project.

The environment in which projects are run and managed is broader than the environment that directly affects the project itself. The project management team must consider this broader environment and select the life cycle phases, processes, tools, and methods that best suit the project.

Project managers or an organization can divide the project into phases to ensure better management with appropriate references to current operations performing organization. The combination of these phases constitutes the life cycle of the project.

Moving from one phase to another within the project life cycle usually involves some form of technical handover or delivery, and this is often what indicates the transition from phase to phase. Deliverables from one phase are usually reviewed for completeness and accuracy and approved before the next phase begins. However, sometimes a phase may begin before the delivery of the previous phase has been approved, in cases where the associated risk is considered acceptable. This practice of overlapping phases, usually performed sequentially, is an example of a schedule compression technique called "fast pass".

There is no one the best way determine the ideal project life cycle. Some organizations have accepted principles that all projects assume the same life cycle, while other organizations allow the project management team to choose the life cycle that is most appropriate for their project. Industry-wide principles often dictate the use of a preferred life cycle in that industry.

The project life cycle usually defines the following:

Which engineering works should be carried out in each phase (for example, in which phase should the design be carried out?)

At what point in each phase deliverables should be received and how each deliverable is verified and validated

Who is involved in each phase (e.g. concurrent engineering work requires those doing it to be involved in requirements and design)

How to control and validate each phase.

Descriptions of project life cycles can be both very general and highly detailed. Very detailed descriptions project lifecycles may include forms, charts, and checklists for structuring and management purposes. Many project life cycles share a number of common characteristics:

The phases usually run sequentially and are limited to transmission technical information or delivery of a technical element.

Few project life cycles are identical to each other, although in many cases project life cycles include phases with similar names and similar deliverables. Some life cycles have 4 or 5 phases, but some have 9 or more phases. Even within the same application area, there can be significant differences. In one organization, the development lifecycle software may include only one phase of product creation, while the other may have separate phases for architecture development and final fine-tuning. Subprojects can also have different life cycles. For example, an architecture firm that has been commissioned to design a new office building is involved in two phases of the client's project: first, design work- in the definition phase and then in the supervision phase construction work- in the implementation phase. At the same time, the actual design of a building is a separate project of an architectural firm, which has its own phases: concept development, definition, implementation, completion. An architecture firm may even treat building design and construction supervision as separate projects with their own set of phases.

Figure 5 Life cycle phases

There are four phases of the project life cycle:

phase 1 - pre-investment studies;

phase 2 - investment;

phase 3 - operation of the project;

phase 4 - post-investment studies.

Pre-investment studies. The phase precedes the main volume of investments. At this stage, the analysis of alternative project options is carried out, the most successful one is selected, a feasibility study is carried out, marketing research is carried out, suppliers, raw materials and equipment are selected, negotiations are carried out with potential investors and project participants, legal registration of the project is carried out (registration of an enterprise, execution of contracts etc.) and the issue of shares and other securities is carried out.

Pre-investment studies include the process of preparing a large amount of documents, including: a project plan, an organizational agreement between project participants, an engineering report, a report on the results of the analysis of alternative options, an audit report financial condition project initiator, feasibility study of the project, report-summary of the feasibility study of the project, expert opinion consulting firm, investor's expert opinion, project financing agreement. The availability of a complete set of these documents reflects the thoroughness of project preparation and reduces the risk of its implementation.

Investment. The fundamental difference of this phase of development is, on the one hand, that actions are being taken that require much greater costs and are already irreversible (purchase of equipment, materials or construction), and on the other hand, the project is not yet able to ensure its development for check own funds. In this phase, permanent assets of the enterprise are formed. The stage includes control and supervision of all works or activities as the project progresses, as well as inspection and control by the supervisory authorities in the country where the work is carried out, or by external financial agencies. The procedure for conducting inspection and control should be agreed upon at the stage of negotiations.

Project operation. This period is characterized by the beginning of the production of products or the provision of services and the corresponding revenues and current costs.

Post-investment studies, the final evaluation, essentially determine how the project plan fits the conditions in which the project was carried out and operated, and how the project plan contributed to the impact of the operating project on the economy and other aspects. The final evaluation is mainly carried out when the project has been in operation for 2 to 3 years after implementation.

Figure 6. The usual sequence of phases in the life cycle of a project

Projects as a systemic activity have a number of structural expressions. This is the structure of participants in the implementation, and the organizational structure, and information. financial structure project is a separate topic for reflection. In this article, we will consider the question of the time structure of the project. The life cycle of a project as a sequence of stages extended over time expresses the genesis of implementation from conception to completion of the project task.

Key Points for Decision Making

The concept of the life cycle is widespread in modern times. Any organic phenomenon, be it a product, a company, a market or a planet, is subject to the laws of the life cycle (LC). These postulates testify to us about “conception”, “birth”, “development”, “extinction” and “death” extended in time. Quite a philosophical and logical sequence, which no one can reverse.

Together with you, we have repeatedly clarified that the task as a means of control is subject to the same laws. In other words, it has a beginning and an end. This characteristic is also present in a cyclic task - a business process, and in a unique task - a project. The project life cycle (PLC) consists of a complete set of successive phases. Phases or stages acquire a number and names, which are determined based on the methodology for performing work, the needs of control by the company or a pool of subjects economic activity employed in the project.

The project life cycle is often used in order to take timely weighted management decisions: go ahead or not. To do this, the project is divided into stages. At the exit from each stage there are decision points - milestones. Even a special concept is used for them - gate (gate, gateway). Senior managers are appointed who are responsible for the transition from one phase to another. They give authorization to allow the transition to each subsequent phase.

Generalized sequence of phases of the LCP

The most generalized version involves four main phases of the project life cycle, implemented sequentially.

Concept formation.
Development.
Implementation.
Completion.

These stages of the life cycle of the project are preceded by the procedure for its launch, and the final point is the closing event. This content of the LCP is applicable to most projects. IN certain areas life cycles are industry-specific. For example, pharmacists have their own main life cycle stages, builders have their own characteristics, and IT companies also have unique stages.

First comes the conceptual phase, during which no big money is invested. Conceptual models are worked out in the form of a “pilot”, an analysis is made and it is decided whether the project is worth doing or not. Let's say that the management arranged the goals and content of the future event, a positive decision was made. Next, a working analysis of the TOR and the development of a detailed project documentation. Implementation is the most expensive step in completing a unique task.

The completion stage involves putting the results into operation. An important point for the success of the whole complex of works is the transition point from the design phase to the phase of production operation of the product. This complex issue will be devoted to a separate article. It should be noted that the transition from the investment phase to operations should be accompanied by a clear mechanism for transferring responsibility from the PM to the user of the product or created assets.

Two-Phase Life Cycle Model

The main stages of the ZhTsP are formed in the logical-temporal structure of activity. It was previously noted that the composition of the phases differs by industry and by the positions of the corresponding authors-methodologists who develop management models. Of interest is the example of the two-phase composition of the LC structure. Its content includes a development phase and an implementation phase. The characteristics of the development phase reflect activities for:

formulating goals;
development of the structure and models of the project;
creation and analysis of plans;
making appropriate decision models;
coordination and approval of project documentation.

The issue of transition from the development phase to the implementation phase in the model is not fundamental. Indeed, often in practice, especially in Russia, implementation activities begin long before the design and estimate documentation has passed all stages of approval, or the whole range of decisions (for example, on the purchase of equipment) has been fully adopted. The content of the second phase is defined as follows:

implementation of previously planned plans;
execution of the decisions made;
achievement of results in given subject areas;
correction of actions under external dynamic influence.

The two-phase model of the life cycle program is not so much applicable in practice as it has a powerful methodological potential that reveals the essential points of the project stages. Thanks to it, it is realistic to assess the dynamics of the invested efforts by phases, the dynamics of the emergence of potential risks and the dynamics of the cost of changes in the project. Thus, the three basic criteria (content, constraints and risks) find their expression on the timeline of the project. The dynamic analysis of these parameters in a diagrammatic form is presented below.

Dependence of the main parameters of the project on the phases of the life cycle

Let's carry out a small analysis of the presented visual model. The peak of labor intensity and financial costs reaches a maximum at the implementation stage (red line). The curve is shifted to the right and reflects the content of the dynamics of the team's efforts and budget expenditures for solving the project's tasks. The main failures lie in wait at the very beginning, and then gradually the probability of risky events disappears as they are realized (green line). The price of the issue in case of making changes to the project increases sharply from the moment the implementation stage begins, so it is advisable to make the bulk of the clarifications at the development stages (orange line).

Interpretation of the ZhCP in the PMI standard

The two-phase life cycle model presented in the last section is good because it is quite easy to move to more advanced life cycle configurations based on it. A universal example of a project phase unfolding is provided by the PMI Institute. In the English version, the project life cycle is called Project Live Cycle (PLC). In the PMBOK guidelines, the concept of LCP is revealed by the following definition.

The guidance recognizes that the unique characteristics of an organization, industry, or technological aspects may determine the content of the LCP, the ratio of phases in their duration and sequence. Functional and partial goals, results of local project tasks, internal milestones - all this determines the division of a large unique task into phases. It is important not to confuse the project lifecycle with the management process groups. Works as part of processes can be repeated at each stage of the life cycle. The life cycle of the product generated by the project is not the same as the life cycle of the project.

Typical levels of cost and staffing in the structure of the ZhTsP

Executable projects can be single-phase and multi-phase. LCPs that contain multiple phases fall into one of two types of connections between phases: serial connection or overlapping. In a sequential variant of connections, the end of the previous stage means the beginning of the next one. This option is simple, but it is impossible to find ways to optimize the duration in it. These features are visually presented on the example of the three-phase project "Liquidation of hazardous waste storage."

Example of a three-phase project

The variety of connections between phases (overlapping, serial and parallel) is dictated by considerations of control, efficiency and the degree of task uncertainty. The essence of overlapping communication is the beginning of a new stage before the completion of the previous one. On the one hand, this allows you to compress the work schedule in a certain way. On the other hand, this form of sequence may require additional resources for the parallel execution of work. A visualized example of the construction of a new factory with an overlapping connection option is shown below.

Project example with overlapping phases

ZhTsP in investment mode

Investment and innovation projects differ from each other. What exactly is the difference between them? The concept of an investment project is associated with a subject called an investor. An investor is a person who invests funds in order to receive income and profit in the future. The customer (if he is not an investor) and PM justify the investor's investment of funds, bear responsibility to him and provide reporting. The rationale includes answers to three main questions.

What is the total cost and investment required?
What is the profitability (profitability) of the project?
What is the payback period of investments?

It should be noted that the project is necessarily a costly event that has a budget. But not every project is an investment. For example, automation, business process reengineering, and the introduction of a budget management system are not investment projects, since their profitability and payback period are almost impossible to calculate.

An investment project should be understood as a payback project, as a result of which an asset is created that can bring profit and provide the investor with income in excess of the costs incurred. Due to the lengthy nature of such stages as expertise, negotiations with the investor and making a decision on investments, the life cycle of an investment project has specific features.

Life cycle of an investment project

Life cycle of an innovative project

The presented characteristics of the investment project allow us to conclude that innovative type the project can be categorized as an investment, but this is not necessary at all. At the same time, from the point of view of the need for a deep justification, the life cycle of an investment project and the life cycle innovative project are similar. However, the justification vectors for these tasks are different.

An innovation is an invention brought to the stage of a commercial or other new product that can significantly change the balance of power in the market due to obvious advantages over competitors. Innovation can bring dividends to the developer and investor, but their form may not be of a commercial nature. For example, successful innovations in the military-industrial complex provide obvious benefits to the state, but do not bring direct profit.

At the time of justification of the investment project, the reaction of the market can be predicted in an obvious corridor of boundaries. When justifying innovations, the reaction of potential consumers cannot be assessed. If investment project it is possible to evaluate by the assumed risks, then the innovative one is distinguished by unpredictable risks. It is important to understand that not only risks are not predicted, but also the levels of potential income and profitability, which can be many times ahead of investment investments.

The life cycle of an innovative project is distinguished by the so-called "minefield" effect. This effect requires a separate substantiation, agreement and approval of the decision-makers on the fate of the project after each completed phase. We bring to your attention an example of a life cycle program in the field of the defense industry.

Life cycle of the project to create a new model of military equipment

Every project manager, gaining experience, understands more and more the importance of the life cycle in order for the project implementation to be carried out every time more safely and with a more predictable result. Not only the risk assessment system helps in this. Great importance has project planning for the phases of its life cycle. After each stage, milestones are outlined. At these moments, managers are obliged to stop, evaluate the achieved result, carry out predictive analysis and decide the future fate of a unique task. The experience, knowledge and managerial intuition of one of the business leaders allow us to entrust him with such responsible decisions.