The Planning Cycle

Previously, we stated that perhaps the most important reason for structuring projects into life-cycle phases is to provide management with control of the critical decision points in order to:

• Avoid commitment of major resources too early

• Preserve future options

• Maximize benefits of each project in relation to all other projects

On long-term projects, phasing can be overdone, resulting in extra costs and delays. To prevent this, many project-driven companies resort to other types of systems, such as a management cost and control system (MCCS). No program or project can be efficiently organized and managed without some form of management cost and control system. Figure 11-8 shows the five phases of a management cost and control system. The first phase constitutes the planning cycle, and the next four phases identify the operating cycle.

Figure 11-9 shows the activities included in the planning cycle. The work breakdown structure serves as the initial control from which all planning emanates. The WBS acts as a vital artery for communications and operations in all phases. A comprehensive analysis of management cost and control systems is presented in Chapter 15.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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