This document discusses the project initiation phase in the Project Management Body of Knowledge (PMBOK) approach. It describes how a project starts through business requirements, opportunities, or problems. It explains how a project/solution is selected using scoring models, benefit contribution analysis, or economic models. It also covers considerations for whether a project will succeed, stakeholders needs, and how a project is formalized through a project charter and preliminary project scope statement.

1. PROJECT MANAGEMENT, PMI APPROACH
(PMP)
PROJECT INITIATION PHASE
Sayed Ahmed
BSc. Eng. in CSc. & Eng. (BUET, Bangladesh)
MSc. in CSc. (University of Manitoba, Canada)
http://sayed.JustEtc.net
http://www.JustETC.net
sayed@justetc.net,www.justetc.net
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Just E.T.C for Business, Education, Technology, and Entertainment Solutions
Resources:
Book: PMP in Depth by Paul Sanghera
Book: The PMP Exam, How to Pass on Your First Try
Project Management Courses in Undergraduate Study
Work Experience

2. REFERENCES & RESOURCES
 Book: PMP in Depth by P. Sanghera
 Read on 2007
 Book: The PMP Exam, How to Pass on Your First Try
 Read on 2007
 A Project Management Course in Undergraduate Study
 Articles from the Internet
 Work Experience
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3. LEARNING OBJECTIVES
How Does a project start?
How is a project/solution selected?
Some Considerations
Will a project succeed?
Do we need to consider project
stakeholders?
How is a project formalized?
Project Charter
Project Scope Statement
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4. OUR SERVICES

5. HOW DOES A PROJECT START?
 Business Requirements
 Opportunities
 Problem
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6. HOW DOES A PROJECT START?
 Business Requirements
 Example:
 The government requires airline companies to implement
safety-management systems.
 A company needs to find out the success of their ecommerce
web-site
 Opportunities
 To take advantage of an opportunity like technology
breakthrough.
 Example
 many projects may be planned targeting iPhone or iPad
 Problem
 To reduce/eliminate a problem.
 Airport x faces 2/3 accidents every year,
 the airport authority may wish
 to perform a project to identify causes and develop solution 6
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7. HOW IS A PROJECT/SOLUTION
SELECTED?
 A particular project may have
 different alternative solutions.
 A company may have
 multiple project plans
 and they need to select one of them.
 But How?
 Scoring Model
 Benefit contribution
 Economic models
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8. HOW IS A PROJECT SOLUTION
SELECTED?
 Scoring Model
 Identify some matrix to find
 which project strategy is better
 or which project/solution will be more profitable
 Assign values for these parameters
 and select one that provides greater value
 Benefit contribution
 Use cost benefit analysis
 short term and long term cost benefit analysis
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9. HOW IS A PROJECT SOLUTION
SELECTED?
 Economic models
 Benefit Cost Ratio
 Cash Flow
 Internal Return Rate
 Present Value and Net Present Value
 Opportunity Cost
 Discounted Cash Flow
 Return on Investment
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10. SOME CONSIDERATIONS
 Will a project succeed?
 There are many mathematical models
 to justify/predict the success of a project
 Do we need to consider project stakeholders?
 Yes. Because the project may
 benefit some people
 and may cause disadvantages to some people.
 Project managers need to
 manage and convince both of the groups
 How is a project formalized?
 A project charter is developed
 to present the business needs and the outcome.
 It is just a document that is reviewed before (or for) project
authorization 10
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11. PROJECT CHARTER
 Input to Developing the project Charter
 Contract
 Statement of Work
 Enterprise environmental factors
 Organizational process assets
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12. PROJECT CHARTER
 Tools for Developing the project Charter
 Project Selection Methods
 Project Management Methodology
 Project management information systems
 Expert Judgment
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13. PROJECT CHARTER
 Output of Developing the project Charter
 Project Justification
 Project description
 Project requirements
 Assumptions
 High level schedule and milestones
Budget
 Proposed project manager
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14. PROJECT SCOPE STATEMENT
 Preliminary Project Scope Statement
 After a project charter is authorized
 A Preliminary Project Scope Statement
 may need to be developed
 It may be discussed
 with the project stakeholders to facilitate project success
 Inputs to Developing Project Scope Statement
 Similar to the inputs
 to Developing the project Charter
 Tools and Techniques
 Project Management Methodology
 Project Management Information System 14
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15. PROJECT SCOPE STATEMENT
 Preliminary Project Scope Statement lists
 Objectives
 The product
 Requirements of the product
 Project boundaries
 Initial work breakdown structure
 Schedule
 Team
 Risks
 Cost estimate
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