PROJECT MANAGEMENT

LECTURE MODULE-1

- What is Project ?
- Project Characteristics
- Definition of Project Management
Unit-I
 5 Reasons Why Managers Need to Learn
Project Management Basics
1. Improves visibility
2. Encourages accountability
3. Strengthens communication &
collaboration
4. Supports agility
5. Builds confidence
What is a Project and its characteristics
Project Defined
A complex, nonroutine, one-time effort limited by time, budget,
resources, and performance specifications designed to meet customer
needs.

Major Characteristics of a Project

1. Has an established objective.
2. Has a defined life span with a beginning and an end.
3. Requires across-the-organizational participation.
4. Involves doing something never been done before.
5. Has specific time, cost, and performance requirements.
A project in business and science is a
temporary endeavor undertaken to create
a unique product, service, or result.

Basically, it is planned to achieve a

particular aim. The aim of a project is to
attain its objective and then terminate.
Some of the reasons to start a project can
be:
A customer request or market demand
An organizational need
A technological advance
A legal requirement
What is Difference between Projects and
Operations?
Projects and operations differ primarily in
that operations are ongoing and
repetitive, while projects are temporary
and unique.

Generally, a project is a means of

organizing some activities that cannot be
addressed within the normal operational
limits.
Project characteristics:
• It is temporary – temporary means that every project
has a definite beginning and a definite end.
• Project always has a definitive time frame.
• A project creates unique deliverables, which are
products, services, or results.
• It also involves unfamiliarity and risk.
• Projects cut across organizational and functional lines
because they need skills and talents from multiple
functions, professions, and organisations.
• A project creates a capability to perform a service.
• Project is always developed in steps and continuing by
increments – Progressive Elaboration.
• A project is the process of working to achieve a goal;
during the process, projects pass through several distinct
phases called project life cycle.
Definition of Project Management
Project management is the discipline of
initiating, planning, executing, controlling,
and closing the work of a team to achieve
specific goals and meet specific success
criteria at the specified time.

... The primary challenge of project

management is to achieve all of the
project goals within the given constraints.
The primary constraints are scope, time,
quality and budget.

The secondary — and more ambitious

— challenge is to optimize the
allocation of necessary inputs and apply
them to meet pre-defined objectives.
The object of project management is to
produce a complete project which
complies with the client's objectives.
In many cases the object of project
management is also to shape or reform
the client's brief in order to feasibly be
able to address the client's objectives.
Once the client's objectives are clearly
established they should impact on all
decisions made by other people
involved in the project-project
managers, designers, contractors, sub-
contractors, etc.
If the project management objectives
are well-defined or too tightly
prescribed it will have a detrimental
effect on decision making.
Project Management:
Project management is the application / use of knowledge, skills, tools and
techniques to project activities to meet project goals and objectives.
Generally, Project Management includes the accomplished through the
application of the following process:
• Project Initiation
• Project Planning
• Integration Management
• Scope Management
• Time and Cost Management
• Quality Management
• Staffing Management
• Procurement Management
• Communication Management
• Risk Management
• Project Execution
• Project Tracking, Monitoring and controlling
• Project Closure
For managing a project, a Project Manager is responsible for identifying
requirements, goals, objectives and maintaining a balance between quality,
scope, time and cost.
 Classification of project management in different
environments or
Forms of Project Management

• Project Management has been given different names

including systems management, task force
management, team management, adhoc
management, matrix management. Regardless of the
forms of management all these share 2 features-
• 1.A project team or project organization is created
uniquely for the purpose of achieving a specific goal.
• 2.A single person or project manager is assigned to
see that this goal is accomplished.
 Basic Project Management

• In this the functional manager and Project Manager are

placed on the same organizational level and report to to
the same person i.e. General Manager or Owner or Project
Sponsor.
• The Project Manager is given the formal authority to plan,
direct, organize and control the project from start to finish.
• They can work directly with any level and functional area
of the organization to accomplish project goals.
• Sometimes the project manager has the authority to hire
personnel and procure facilities but most often he
negotiates with functional managers to borrow these
 Basic Project Management
• Basic project management is implemented in 2 widely used
forms
• Pure Project Management- This is a complete, self
contained organization. Resource belong to the project and
do not have to be borrowed.
• Matrix Management- The project organization is created
from resources allotted (borrowed) from the functional
units. The project must share these resources with other
concurrent projects and other functional areas from which
they are borrowed.
• Eg. Construction and Technology industries.
• When an advertising firm conducts a promotional campaign
it utilizes the support of marketing research, accounting,
graphics, sales and other units.
 Program Management
• This term is interchangeably used with Project Management as
both these work towards goals specified in terms of a desired
product or service, a date of accomplishment and a budget.
• But actually they are different.
• A programm extends over longer time horizon and consists of
several parallel or sequential projects that are coordinated to
meet the program goal.
• They share common goal and resources and are
interdependent.
• For eg an Urban development program may include several
projects such as housing rehab, job and skill training and small
business consulting assistance.
 Program Management
• The projects are oriented to produce and deliver a product
and service after which the project organization is dissolved.
• After the delivery of end item it is somebody else’s
responsibility for maintaining it.
• In a program however once the end term product or service
has been delivered it is upto program management to
integrate with other systems and keep it operational as long
as needed.
• For eg several contractors might produce and deliver a
satellite and its booster rocket but after that someone else is
responsible for launching the rocket and satellite and after
that someone else for monitoring and operating the orbiting
satellite. The Program manager has to oversee everything.
 New Venture Management

• This is used in consumer oriented firms for generating

new products or markets like HUL, P & G, Colgate.
• Similarity
• Both focus on single unifying goal
• Both require skills of experts and managers from various
functional areas working together under single head.
• Both are temporary. Once a new venture is created the
members go back to there original departments or
another venture.
 Product Management

• This refers to a single person having authority to

oversee all aspects of product’s production,
scheduling, inventory, distribution and sales.
• In this product manager coordinates and expedites
efforts of product development launch,
manufacturing, distribution and support.
• Like project manager, the product manager
communicates directly with all levels and functions
inside and outside the organization so that total
effort is directed towards product goals.
 Product Management

• Project environment can be classified as

follows-
• Commercial/For Profit Project Management
• Government/Nonprofit Project Management
• Military Project Management
Commercial/For Profit Project Management

• In commercial projects, the end term is clearly defined product

or service, often customized to satisfy a customer or an internal
requirement and motivated by profit-oriented criteria.
• The project manager usually guides the project through its entire
life cycle, coordinating efforts of the project team with functional
areas, sub-contractors and vendors and keeping the customer
and top management informed of the progress towards project
and profit objectives.
• Once the project has been completed, the project team is
dissolved and project manager is out of job.
• But some project managers are continually working to
perpetuate their existence through preparing proposals and
seeking out new projects which may be extension to existing
projects.
Government/Nonprofit Project Management

• There is no profit incentive in Government and nonprofit

work and economic factors may be of lesser importance in
this type of project management.
• Project managers in these environments are frequently
reassigned during their projects, which is problematic for
administrative continuity.
• Political considerations play a major role as the funding is
legislatively appropriated.
• The main role of project manager is evaluation or testing of
products and services from commercial vendors.
• Design and development in government projects is
performed by contractors, the project managers role is
largely administrative.
 Military Project Environments
• Like Government Projects, most military projects involve
testing and evaluating hardware developed by
contractors.
• Evaluation is based on the “weapon systems” approach ,
whereby each project is a part of larger systems program
and the hardware is evaluated for its contribution to the
mission of overall system.
• The major criteria for evaluating projects are technical and
political ; cost are of less importance and profit is not a
consideration.
• Project Managers are military officers and as their tour of
duty is limited, they do not oversee a project for full
lifecycle.
 Scope and Statement of Work

• Project planning starts with determining the

objectives, deliverables, and major tasks of
the project; in combination these define the
overall size of the project and the range or
extent of work it encompasses, a concept
called project scope.
 Scope and Statement of Work

• Determining the project scope begins during project

conceptions, first in project initiation and then in
the initial description of the project (the
RFP/proposal process, if the project is contracted),
and it continues again during project definition.

• The RPF-request for proposal(or request for bid,

request for quotation, invitation to bid, or similar
terms) is notification that a customer is interested in
hiring a contractor.
 Scope and Statement of Work

• In each case, user needs and requirements are

compared to constraint of time, cost,
resources, and technology to determine what,
exactly, the project should and can
encompass.

• The process of setting the project scope is

called scope definition.
 Scope Definition
• Scope definition is the process of specifying the breadth of
the project and its full span of outputs, end-items, or
deliverables; these sought-after requirements and end-
results are termed “inclusions”, referring to what is to be
included in the project.

• Sometimes, to ensure clarity about expected outcomes, the

scope definition also specifies items, conditions, or results
not to be included within the project, i.e. “exclusions” ( a
project to construct a building, for example, might exclude
interior decorating and landscaping).
 Scope statement
• The result of scope definition is a scope statement,
which besides the main deliverables of the project and
some background about the problem being addressed.
• It might also contain project objectives, functions to be
fulfilled by the deliverables, user requirements,
assumptions and constraints or major areas of work.

• Necessary information for scope definition includes

user needs and requirements, and constraints and
assumptions; ideally the principal subsystems and
components of the end-item will also have been
identified.
Systems Approach for Project Management

• Systematic approach is essential for building a

team for successful implementation of a
project.

• There is a clear distinction between a team

and a motley crowd.
• The difference is like a team of players and
spectators in a football game.
 WORKING OF SYSTEMS
• The main task of a project manager is to design
systems and manage through them.
• Let us understand what we actually mean by system.
• We can have purely physical system such as man-man
system, machine-machine system or man-machine
system.
• We can also have purely paper work systems.
• But what managers will be required to deal with most
of the time are combined systems of men, machine
and paper work called business systems.
• We shall confine our discussion to business systems
only.
 SYSTEMS and PROCEDURE defined

• A business system refer to the total picture of men,

machine, materials and paper work involved in the
implementation of any phase of a project.
• The purchasing system involves purchase officers,
vendors, materials, specifications, general purchase
conditions and purchase order.
• In the purchase system, procedures need to be
developed for shortlisting vendors, issuing enquiry to
them, evaluation of offer and finally placement of order.
• A procedure is a planned sequence of operations for
carrying out a recurring work involved in a system
uniformly and consistently.
 SYSTEM CHARACTERISTICS

• A system has been defined in many ways.

• But it is better to look at its characteristics rather
than trying to understand it through a definition.
• The characteristics that could distinguish a system
are:
1. It is a set of elements
2. The elements are organised systematically
3. The elements are interrelated
4. A system refers to a self-sufficient organic whole
5. A system has a behaviour characteristic of its
own
6. A system has a hierarchy
 SYSTEM CHARACTERISTICS
• The concept of system is borrowed form nature.
• The human body is an excellent example;
• it consists of several subsystems, e.g. digestive system,
respiratory system, etc.
• Further subdivision of, say, the digestive system would
refer to organs such as stomach, intestine etc.
• These organs coordinate in a certain way which is
characteristic not only of the digestive system but of all
perfect systems.
• By studying the natural systems we can indeed find out
the ingredients of successful system.
 CLASS OF SYSTEMS

• When individual is designing systems, the

person is only creating artificial systems as
opposed to natural systems.
• An artificial system lacks many qualities of the
natural system, chief amongst which is the
self-regulating characteristic.
• Nature’s system or a natural system naturally
adjusts the interactions of its elements to face
the challenges from the environment-no one
is required to exert any external force.
 CLASS OF SYSTEMS
• When a system controls its elements internally without
requiring any external intervention such a system can
be called a self-regulating system.
• Obviously, self-regulating systems are stable and viable.
• If a system, on the other hand, requires constant
intervention to remain viable, it is referred to as a
controlled system.
• The third variety of systems refer to information-
bound systems where the inter-acting elements
are locked in a loop comprising feed-forward and
feed-back information.
 DESIGN OF SYSTEMS
• Three things are to be considered for the design of
business systems:
1. The system must be as natural as possible.
2. The system must be information bound.
3. There must be provisions for external interventions, if
only as exception.
• A system works best when there is least outside
interference.
• Closed systems, i.e. systems which have no interaction
with the environment are always viable.
• But closed systems are less energetic and, therefore, can
achieve less as compared to the open systems which are
constantly interacting with the environment.
 DESIGN OF SYSTEMS
• There are two systems in a project :

1. Project Work System

2. Project Control System

• Put together, these two systems would

constitute the Project Management System.
 DESIGN OF SYSTEMS
1. Project Work System
Project Work System Design requires the total system to
be first visualised through system modelling.
The design philosophy thereafter is to create a set of inter-
related elements so that they can regulate and control
themselves without outside intervention.
2. Project Control System
Project Control Systems are the data collecting, data
management and analytical procedures used to guess,
acknowledge and constructively impact the time and cost
outcomes of a project or program; through the
communication of information in formats that evaluate
actual management and decision making.
 DESIGN OF SYSTEMS
1. Project Work System
• Work Breakdown Structure
• Work Breakdown Structure (WBS) is a technique which
breaks down a work into its components and at the same
time establishes the connections between the
components on the lines of a family tree.
• WBS provides the foundation around which many
people will group together in the form of an
organisation.
• WBS enables the integration of people, hardware
and software into a total project work system.
 PROJECT
Design Procurement Construction Commissioning

CIVIL MECHANICAL ELECTRICAL

CONTRACTOR-1 CONTRACTOR-2 CONTRACTOR-3

CONTRACTOR-1 CONTRACTOR-2 CONTRACTOR-3

PLANT TOWNSHIP
SITE WATER BUILDINGS
GRADING SUPPLY &
ROADS & DISTRIBU
DRAINS TION

WORK BREAKDOWN STRUCTURE-FUNCTION ORIENTED

 PROJECT
Owner Consultant System Civil Electrical
Supplier Contractor Contractor

Design Ordering Commg.

Supplier-1 Supplier-3
Contractor
Supplier-2
Design Ordering Const.
Design Supply Erec
Design Supply Erection Comng
System-1
………….. √ √
………….. √ √
√
System-2 √

WORK BREAKDOWN STRUCTURE-AGENCY ORIENTED

 DESIGN OF SYSTEMS
1. Project Work System
• Project execution plan (PEP)
• It refers to that exercise of matching the project
hardware and software with the executing agencies so
that a viable work system emerges.
• Project execution plan, in fact, includes four sub-plans.
These are:
1. Contracting plan
2. Work packaging plan
3. Organisational plan
4. System and procedural plan
 DESIGN OF SYSTEMS
1. Project Work System
• Project execution plan (PEP)
i. Contracting plan
• This is the first step in the preparation of a project
execution plan. Owners invariably need some agencies
with whom they can share responsibilities.
• Contract planning would involve examination of a
number of alternatives since there are so many possible
arrangements in terms of sharing of responsibilities,
types of reimbursement and general conditions of
contract (GCC).
 DESIGN OF SYSTEMS
1. Project Work System
• Project execution plan (PEP)
ii. Work packaging plan
• If it is decided not to contract out the entire project on a
turn-key basis, then the work packaging plan will be the
next important step in the preparation of the PEP.
• A work package in a project is the smallest division of
work where it still retains the characteristics of a project.
 DESIGN OF SYSTEMS
1. Project Work System
• Project execution plan (PEP)
iii. Organisational plan
• Having decided the number of contracts and their scope,
the owner is now in a position to set his house in order.
• Normally, the owner’s intervention can be in three ways:
1. Coordinate the various interfaces between the various
agencies lined up for execution.
2. Activate and motivate each agency so that they perform
as they should.
3. Involve directly in critical areas to assist the agencies in
solving problems.
 DESIGN OF SYSTEMS
1. Project Work System
• Project execution plan (PEP)
iv. System and procedural plan
• The last section of the project execution plan deals with
system and procedure for at least eight sub-systems.
1. Contract Management
2. Configuration Management
3. Time Management
4. Cost Management
5. Fund Management
6. Materials Management
7. Man Management
8. Communications Management
 DESIGN OF SYSTEMS
2. Project Control System

• Planning, scheduling and monitoring are normally talked

of in the context of time management of a project.

• Planning, in that case refers to what is to be done, how it

is to be done and who is to do it.

• Scheduling refers to when it is to be done and how much

is to be done.

• Monitoring refers to checking how much has been done

and what needs to be done.
 Project Feasibility

• An analysis and evaluation of a proposed project to

determine if it

(1) is technically feasible,

(2) is feasible within the estimated cost, and
(3) will be profitable.

• Feasibility studies are almost always conducted

where large sums are at stake. Also called feasibility
analysis.
 Project Feasibility Report

• A feasibility report is prepared to present an

in-depth techno-commercial analysis carried
out on the project idea for consideration of
the financial institutions and other authorities
empowered to take the investment decision.
 Project Feasibility Report
• According to the guidelines published by the planning
commission a feasibility report should include :
1. Raw material survey
2. Demand study
3. Technical study (Product pattern, Process selection,
Plant size, raw material requirement)
4. Location study
5. Project capital cost estimates and source of finance
6. Profitability and cash flow analysis
7. Cost benefit analysis.
 Project Feasibility Report
• Raw Material Survey:
• Raw Materials may belong to any of the following
categories:
1. Available in natural form as deposit either on surface
or underground, in different parts of the country.
2. Available as finished product or by-product from
some operating plants or likely to be available in the
near future from some plant or plants under
construction.
3. Not available in the country but to be imported.
 Project Feasibility Report
• Demand Study:
• A demand study normally would establish the
following:
1. Demand Covering uses of the product proposed to be
manufactured, the prospective consumers, present
consumption, expected consumption in future
including possibility of exports.
2. Supply Covering assessment of capacity, present level
of production, capacity utilization, extent of import
and projected supply considering the plants under
construction.
 Project Feasibility Report

• Demand Study:
3. Distribution Covering channels of distribution, mode
of transport, mode of packing and cost of distribution,
Government policies, etc.
4. Prices Covering both domestic and international price
trends, control on price as imposed by the Government,
prevailing duties and taxes.
If situation demands, documents like Plan documents,
Guidelines to industries, Economic survey, Annual survey
of industries, Import and export statistics, Monthly
bulletin of Reserve Bank of India, Survey reports of
various institutions can be helpful in special cases.
 Project Feasibility Report

• Technical Study:
• Product Pattern : The demand survey projects
an estimate of potential sales and the raw
material survey confirms if adequate material
will be available to support the project.
• These two data and consideration of economy
of scale should be sufficient to select the plant
capacity.
 Project Feasibility Report

• Technical Study:
• Process Selection: The product pattern so
selected and the raw material availability will
govern the selection of the processing scheme.
• But detailed evaluation including economics of
operation of alternative processing schemes is
necessary for selecting an optimum process.
• Usually a processing scheme is developed by an
operating company through its own R&D effort
and is protected by patents. The company is then
said to possess know-how.
 Project Feasibility Report

• Location Study:
• To meet at their targets relating to time and cost, it is
necessary that site has been properly selected and
possession taken of before the zero date.
• Normally, the financial institutions will depute a team of
experts to inspect the site before they sanction any loan.
• Uncertainties associated with the site and particularly
that of sub-soil conditions must also be removed before
the zero date.
• If the plant site is to be relocated at a later date, not only
will the targets be missed but even the viability of the
project may also be lost.
 Project Feasibility Report

• Project capital cost estimates and finance:

• For the zero date of the project to become effective, it
is essential that funds required for the project are
arranged.
• The fund requirement for a project is to meet the
capital expenditure for purchasing plant and
machinery, initial working capital and pre-operating
expenses.
• Though the entire fund is not required on the zero
date, nevertheless, suitable arrangement will have to
be made in advance so that funds do not pose a
constraint for meeting the project targets once the
project starts.
 Project Feasibility Report

• Project capital cost estimates and finance:

• Fund requirements are to meet following costs:
1. Capital costs : All the costs incurred in the project
before it becomes ready for to start commercial
production will be treated as capital costs.
2. Working capital : The fund required for maintaining
various inventories in the form of raw material,
operating supplies, intermediate products, finished
products and meeting miscellaneous cash
requirements for maintenance of a level of production
is treated as working capital.
3. Operating costs: Costs incurred on recurring basis for
production, maintenance and marketing.
Project Life Cycle
 Project Life Cycle

The unique nature of a project can be illustrated by the

Project Life Cycle.
The life cycle recognises that projects have a limited life
span and there are predictable changes in level of effort
and focus over the life of the project.
There are a number of different life-cycle models in
project management literature.
Many are unique to a specific industry or type of
project.
 Project Life Cycle
The project life cycle typically passes sequentially through
four stages :
1. Defining ( Identify a Need )
2. Planning ( Develop a Proposed Solution)
3. Executing (Perform the project)
4. Delivering (Terminate the project)
The starting point begins the moment project is given go
ahead.
Project effort starts slowly, builds to peak, and then
declines to delivery.
 Project Life Cycle
Identify Develop a Perform the project Terminate the
a need proposed project
solution Executing
Level of Effort

Planning

Defining Delivering

Time
Start End
Defining Planning Executing Delivering
1. Schedules 1. Status Report 1. Train Customer
1. Goals
2. Budgets 2. Changes 2. Transfer documents
2. Specifications
3. Resources 3. Quality 3. Release resources
3. Tasks
4. Risks 4. Forecasts 4. Release staff
4. Responsibilities
5. Staffing 5. Lessons learned
 Project Life Cycle
 Defining Stage:
• Specifications of the project are defined; project
objectives are established, terms are formed; major
responsibilities are assigned.

 Planning Stage:
• The level of effort increases, and plans are
developed to determine what the project will entail,
when it will be scheduled, whom it will benefit, what
quality level should be maintained, and what the
budget will be.
 Project Life Cycle
 Executing Stage:
• A major portion of the project work takes place –
both physical and mental.
• The physical product is produced ( a bridge, a plant, a
software).
• Time, cost, and specification measures are used for
control.
• Is the project schedule, on budget, and meeting
specifications?.
• What are the forecasts of each of these measures?
• What revisions / changes are necessary?
 Project Life Cycle
 Delivering Stage:
• Includes two activities : delivering the project
product to customer and redeploying project
resources.
• Delivery of the project might include customer
training and transferring documents.
• Redeployment usually involves releasing project
equipment/materials to other projects and finding
new assignments for team members.
 Systems Development Cycle
• The Systems Development Life Cycle (SDLC) is a
framework for describing the phases involved in
developing and maintaining information systems.
• The phases overlap and interact, yet are clearly
differentiable.
• They reflect the natural order of thought and action
in the development of all human made systems,
whether consumer products, space vehicles,
information systems or company relocations.
 Systems Development Cycle
Stakeholders-
[Link] customers or clients, including
(a) Customer management
(b) Users and Operators
• Customers are the persons or groups for whom the
project is being done and who will acquire and/or operate
the system when it is completed.
• Customer management pays for and makes decisions
about the project, whereas users and operators will
utilize, maintain, or in other ways be the immediate
recipients of the project end-item.
• The customer pay for the system and user uses it.
 Systems Development Cycle
[Link] contractor (also called as Systems Development
Organization ( SDO), developer, promoter or consultant), which
includes-
(a) Contractor top management (Corporate and functional
managers.
(b) Project management (project manager and staff)
(c) other workers.
• The contractor or developer is the group that performs the
project, the group that studies, designs, develops, and installs
the system.
• The contractor is usually external to the user organization,
although in some cases it might reside inside the organization
as in case of internal consulting group/support groups.
 Systems Development Cycle.
Phase A Conception Phase
Phase B Definition Stage
• Initiation Stage
• Project Definition
• Feasibility Stage
• System Definition
• Proposal Preparation
• User & System Requirements

(To Phase A Repeat Cycle) Phase C Execution Phase

• • Design Stage
Phase D Operation Phase
System Maintenance & • Production/Build stage
Evaluation • Fabrication
• Testing
• Implementation Stage
System System • Training
Improvement Termination • Acceptance Tests
• Installation
• Termination
 Systems Development Cycle
• Conception- Every Project is part of an attempt to solve a problem.
• The 1st step in solving a problem is recognition and acceptance that it exists.
• Then the company facing the problem seeks out the help of somebody from within
or outside the organization.
• If it has an internal group capable of solving the problem, it turns the problem
over to them.
• If not it looks for an outsider to handle the problem, possibly by sending out to
contractors a formal request for help called a Request for Proposal (RFP).
• Each contractor /internal team examines the problem, objectives and
requirements as stated in RFP and evaluates the technical and economic feasibility
of undertaking the project.
• If the contractor decides to respond to the request, it presents the customer a
proposed solution in formal proposal or letter of interest or Letter of intent (LOI)
• The customer examines the proposal or in the case where several contractors
responded, all the proposals and makes a choice.
• Most of the ideas never get past Phase A as they are judged impractical, infeasible
or lacking in benefits to justify funding and resources.
• The few that are approved and result in contract/agreement move on to phase B.
 Systems Development Cycle
• Definition Phase
• Once the commitment is received from the customer the
contractor begins a detailed analysis of the system concept,
during which it defines the requirements that will enable the
system to meet the customer’s needs and functions and
elements that will meet those requirements.
• It determines the major subsystems, components and support
systems.
• Thus the project management team of contractor prepares a
comprehensive plan that defines the activities, schedules,
budgets and the resources for designing, building and
implementing the system.
• The top management of contractor reviews the plan for
acceptability and then forwards it to customer who also review
it for acceptability.
 Systems Development Cycle
• Execution Phase-
• This phase happens when the work specified in the project plan is put into
action.
• It is sometimes referred to as the acquisition phase because most system
resources are acquired here and the user acquires the system at the end of the
phase.
• This phase often include design, production and implementation, referring to
the progression through which the system moves from being an idea to a
finished end item..
• All systems consists of elements arranged in some pattern, configuration or
structure and it is the system design the defines the elements and pattern
necessary for the system to fulfill requirements.
• To ensure requirements will be met, various design alternatives are evaluated
through the use of models and mock ups.
• Once an acceptable design is chosen, the system goes into production either as
a single item or mass produced item.
• Near the end of the execution phase the system is implemented, it is installed
and it becomes a part of user’s environment.
 Systems Development Cycle
• Operation-
• In this phase the system is deployed, the user takes charge of the
system and operates and maintains it.
• The contractor may remain involved and provide maintenance
support and evaluation service.
• Some systems are one shot system and either succeed or fail i.e.
there is little or no operation of these systems although evaluation of
their development is useful for the development of future similar
systems.
• A political campaign, rock concert and gala opening ceremony are
some examples.
• For operational system such as products, equipments and systems
that people use and rely upon daily, this phase will last for decades.
In this case activities in Phase D include not only operations and
maintenance of the system but improvement and enhancement to
keep it viable and useful.