Project Phases and Milestones

Projects can be of varying duration, depending on the size and complexity. But generally speaking, every project
follows a certain cycle: the project life cycle. Whether you are building a house, developing new software, or
erecting a complete industrial plant, you will see that every project develops in phases.

Based on its complexity and newness, a project should be processed according to a systematic procedure. This
procedure is determined by the following three basic principles:

1. Structuring in phases
2. Moving from general to detailed
3. Problem solving cycle.

Breaking the project down into individual phases depends on the emphasis of the project, the milestones and the
complexity of the tasks. Practical experience has shown that there are four basic phases:

Initiating Planning

Closing Executing

In addition to these classical project phases it is possible to add a pre-development and pilot phase - for very
innovative projects, for example.

The phases are accompanied by project control. This will be discussed in more detail in the chapter "Project
Control".

Solutions are often thought of at the beginning of a project, and everything is planned to the most detail. Later,
this planning may turn out to be a disappointment: much has changed in the course of the project and updating
the plans may prove to be too expensive. That is why it is a part of Project Management to approach details step-
by-step. This approach is often called the "Top-Down Procedure".

Processing projects means carrying out a comparison between the TARGET status and the ACTUAL status. The
problem solving cycle describes the sequence of steps which are required to achieve the project goal.

Stage 1 Situation analysis

Stage 2 Setting the goal

Stage 3 Conceptual draft

Stage 4 Assessment
Which solutions are practical?

Stage 5 Decision
Which solution should be implemented?
Stage 6 Implementation of the solution.

Each phase is characterized by very different tasks with special problems.

The Initiating phase is the prerequisite for the start of the project. At this point the project manager clarifies the
goals with the customer.

The result of this phase is the project order.

Initiating Planning
Problem analysis/Contract analysis
Goal clarification
Potential analysis
Project task/Functional specification
Feasibility study
Economic efficiency Closing Executing

The individual activities and the time schedule are established in the Planning phase. This phase is the basis for
the successful execution of the subsequent Executing phase.

Initiating Planning
General planning
Definition of work packages
Detailed planning
Clarification of responsibilities
Closing
Risk analysis Executing
Definition of interfaces

The Execution phase encompasses more than purely the realization of the plan. The continuous review of the
project progress on the basis of milestones (defined below) ensures that the project remains within the scope of
the planning. If the course of the project deviates from the plan, corrective actions must be introduced.

Initiating Planning

Closing Executing
Execution (Implementation)
Execution of work packages
Project tracking (Review)
Control of deviations
Updating the planning
Acceptance
Information on milestones

After the customer has accepted the results of the project, the project goes into the Closing phase. Since it is not
possible to ensure in most projects that the same group of people will be working again on the next project. The
priorities during this phase include the security of know-how and the re-integration of the project stakeholders.
 Initiating Planning

Closing Executing
Project final report
Re-integration of employees
Know-how security
Dissolution of project team

Each phase is constructed on the preceding phase. For this reason the possibility of influencing the final result
lessens continually in the course of the project, while the project costs increase more steeply.

0% Time 100 %
Maximum 100 %
Potential of
attention by the
management

Potential of 60
influence on
costs 35
Costs

Project Costs

4 1
Minimum 0%

Possibilities of influencing the project and project costs are inversely proportional to each other. Therefore,
ideally the most possible attention should be given at the beginning.

Prevention is better and less expensive than repair!

So, always take a close look, even at the

Every milestone can only be passed when the previously formulated requirements have actually been fulfilled. It
is possible to make an exception only in the case of non-critical, open points, and when subsequent completion
can be assured.

The most important milestones are the transitions from one project phase to the next.
Understood everything so far? Talk to experienced project managers, seek out and find a way to exchange
experiences.
The next chapter discusses setting the goal.