The document discusses the initiation process group in project management. It explains that the initiation group contains two processes: project charter and identify stakeholders. It also notes there are pre-initiation activities like identifying needs and demands, conducting feasibility analysis, and developing the project charter. The charter is created by the project manager or sponsor and authorizes the project and resources. It includes the project objectives, constraints, scope, risks, and assumptions. Inputs to developing the charter include the statement of work, business case, agreements, and expert judgement.

1. My Notes on
Project Management
KAMALNATH VARIAR
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2. PROCESS GROUP - Initiation
Points to remember :
• The INITIATION process group is the first of the five process groups in PMBOK (5th Edition)
• The Process group contains two processes, i.e. Project Charter & Identify Stakeholders
culminating in the creation of a Project Charter & a Stakeholder Register
• There are certain Pre – Initiation activities that needs to be carried our prior to the first Initiating
process i.e. creating the Project charter.
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3. PROCESS GROUP - Initiation
Identify Needs & Demands
1. A need for a particular product or service driven by market demand.
Example: A manufacturing company decides to upgrade its production facilities in anticipation of increased
product demand.
2. Projects that evolve due to needs of the business
Example : A company responsible for equipment sales decides to upgrade its existing service facilities for
3. Customer Requests
Example : A company decides to launch a call center operation focused on customer complaint handling as a
result of repeated requests from the internal sales team. Note that customer requests can be from internal &
as well as external customers.
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4. PROCESS GROUP - Initiation
Identify Needs & Demands ( Cont.…….)
4. The need for creating differentiation through innovation.
Example: A mobile phone manufacturing company introducing new features & functions to sustain / increase
market share.
5.New regulations / Legal requirements
Example : A product being modified to secure additional approvals & comply with new governmental
regulations .
6.Needs arising as a result of Social demands
Example : Construction of additional Public Toilets in identified areas for improving basic amenities & securing
public health.
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5. PROCESS GROUP - Initiation
Feasibility Analysis
• Before going ahead with the Project it is highly imperative to analyze if the cost, time or efforts involved in
executing the project is justified.
• A feasibility study also addresses the preliminary concerns of the major stakeholders.
• The probability of success or failure of the project can also be ascertained through feasibility studies.
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6. PROCESS GROUP- Initiation
The Project Charter
Points to remember :
• Prepared by the Project Sponsor , initiator or the Project Manager, but always approved by the Project
Sponsor.
• Officially authorizes the existence of the Project , names the Project Manager & grants authority to the
Project Manager to assign organizational resources.
• The Project charter document is the only output of the develop project charter process.
• The Project Charter contains high level objectives , constraints, scope, risks & assumptions made to assess
project feasibility.
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7. INITIATING PROCESS GROUP
DEVELOP PROJECT CHARTER
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8. Inputs to Developing the Project Charter
The Project Statement of Work
• Establishes clear expectations amongst all Stakeholders
• Answers the question ‘ What will we do on this project & why are we doing it ( business need) ?
• Describes ( in brief) the Product, Service or Result that the project aims to accomplish.
• In the case of internal projects , the SOW is prepared by the Sponsor or the Project Initiator.
• In the case of External projects , the SOW is prepared by the Buyer.
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9. Inputs to Developing the Project Charter
Business Case
• Contains Cost Benefit analysis for the project.
• Feasibility studies conducted for the project is used as the basis for building the business case.
• Answers the question How valuable is the project to the business or accomplishment of strategic
objectives?
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10. Inputs to Developing the Project Charter
Agreements
Agreements can take the form of contracts, memorandums of understanding (MOU), letter of intent etc.
When doing work for an external customer a contract is used. In this case, the SOW contained in the contract is
used to document information in the Project charter.
Terms and conditions that provide direction on how the project should be performed, key milestone dates,
funding constraints and any other relevant information in the contract will be utilized in preparing the charter
document.

11. T&T for Developing the Project Charter
Expert Judgement
• Involves talking to subject matter experts from different functions/ departments to decide on various
aspects concerning the project related to the SOW, Business case etc.
• Taking recommendations from team members who have taken part in execution of similar projects in the
past .

12. To be continued…….
Suggestions / improvement feedbacks
AWAITED.
Please do mail me at
kamalvar@yahoo.com
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A journey towards continual improvement