Every project should have a feasibility study carried out to determine if the effort is justified. This can be done via a Business Case which is carried out before the project starts. Alternatively, for a small simple project a feasibility study can be carried out in the concept or feasibility phase, which is usually the first phase of the project life cycle.
There are various life cycles you need to know about
The project life cycle, operations life cycle, and together they are known as the product life cycle.
The project life cycle is divided into phases for two reasons:
- Firstly, to facilitate the realisation of the deliverables and end product of the project.
- Secondly, to improve the management control over the project.
At the end of each phase there is a checkpoint or phase gate, where a management review meeting or audit is held. If the phase deliverables are acceptable and the project is on track to meet its objectives, the project can be authorised to commence with the next phase.
Phases comprise of the various project management process groups and their processes. When all the phase deliverables have enabled the realisation of the final product, it is accepted and handed over to the operational staff, for the operations life cycle to begin. Often there is an overlap between the project and operations life cycles to facilitate handover.
Life cycle costing aims to optimise the endeavour’s cost over both the project and operations life cycles.