2. You will become familiar with:
• How projects are identified and selected
• A project charter
• Outsourcing projects using a request for proposal
• The proposal solicitation process
3. Project Identification
• The initiating phase of the project life cycle starts with recognizing a
need, problem, or opportunity for which a project or projects are
identified to address the need.
• Projects are identified in various ways:
• as part of its normal business operations,
• in response to unexpected events, or
• as a result of a group of individuals deciding to organize a project
to address a particular need.
4. Project Selection
• Project selection involves evaluating potential projects, and then
deciding which of these should move forward to be implemented.
• The benefits and consequences, advantages and disadvantages,
plusses and minuses of each project need to be considered and
evaluated. They can be quantitative and qualitative, tangible and
5. Project Selection Process
1. Develop a set of criteria against which
the project will be evaluated. These
criteria will be used to evaluate potential
projects and support project selection and
probably include both quantitative and
Sample Criteria for Pharmaceutical
• Alignment with company goals
• Anticipated sales volume
• Increase in market share
• Establishment of new markets
• Anticipated retail price
• Investment required
• Estimated manufacturing cost per unit
• Technology development required
• Return on investment
• Human resources impact
• Public reaction
• Expected time frame
• Regulatory approval
6. Project Selection Process (cont.)
2. List assumptions that will be used as the basis for each project.
3. Gather data and information for each project to help ensure an
intelligent decision regarding project selection.
4. Evaluate each project against the criteria.
8. Project Charter
• Once a project is selected, it is formally authorized using a
document referred to as a project charter, sometimes called a
project authorization or project initiation document.
• In this document, the sponsor provides approval to go forward with
the project and commits the funding for the project.
• The project charter also summarizes the key conditions and
parameters for the project and establishes the framework for
developing a detailed baseline plan for performing the project.
9. Project Charter
1. Project Title should be concise and create a vision for the end
result of the project
2. Purpose summarizes the need and justification for the project
3. Description provides a high-level description of the project
4. Objectives is a statement of what is expected to be
accomplished the end product or deliverable.
5. Success criteria or expected benefits indicate the outcomes or
expected quantitative benefits that will result from
implementation of the project.
10. Project Charter
6. Funding indicates the total amount of money the sponsor
authorizes for the project.
7. Major deliverables are the major end products or tangible items
that are expected to be produced during and at the completion of
the performance of the project.
8. Acceptance criteria describe the quantitative criteria for each
major deliverable that the sponsor will use to validate that each
deliverable meets certain performance specifications.
11. Project Charter
9. Milestone schedule is a list of
target dates or times (also
referred to as milestone dates)
for the occurrence of key
events (also referred to as
milestones) in the project
Sample Milestones in the Construction of a New
Baseline plan month 1
Architectural concepts month 2
Preliminary design and specifications month 4
Order long lead items month 5
Final design specifications month 8
Complete excavation and foundation month 10
Complete steelwork and concrete work month 14
Complete exterior month 16
Complete utilities month 18
Complete interior month 20
Complete landscaping month 20
Complete furnishing month 22
Move in month 24
12. Project Charter
10.Key assumptions include those that the project rationale or
justification is based on.
11.Constraints could include such things as a requirement to
complete the project without disrupting the current workflow, or
the necessity to outsource a project.
12.Major risks identify any risk that the sponsor thinks has a high
likelihood of occurrence or a high degree of potential impact that
could affect the successful accomplishment of the project
13. Project Charter
13.Approval requirements define the limits of authority of the
14.Project manager is an individual in the organization who has
been identified to be the manager for the project. The project
planning for the project.
15.Reporting requirements state the frequency and content of
project status reports and reviews.
14. Project Charter
16.Sponsor designee is the person who the sponsor designates to
act on behalf of the project sponsor.
17.Approval signature and date indicate that the sponsor has
officially or formally authorized the project.
The PROJECT CHARTER is an important document. It not only authorizes
going forward with a project but also provides the key conditions and
parameters that are the framework for the project manager and team to
develop a detailed baseline plan for performing the project
15. Preparing a Request for Proposal
• A request for proposal (RFP) is a document, prepared by the
sponsor/customer, which defines the project requirements and is
used to solicit proposals from potential contractors to do the
• A proposal is a document that includes a proposed approach,
schedule, and budget for meeting the project requirements and
accomplishing the project scope.
16. Preparing a Request for Proposal
• A good RFP allows contractors to understand what the customer
expects so that they can prepare a thorough proposal that will
Following are some guidelines for drafting a formal RFP to external
1. The RFP must state the project objective or purpose, including
any rational or background information that may be helpful to
contractors so that they can prepare thorough and responsive
17. Preparing a Request for Proposal
2. An RFP must provide a statement of work (SOW) that outlines
the major tasks the customer wants the contractor or project team
to perform to accomplish the project scope and produce all the
3. The RFP must include the customer requirements, which define
functional, operational, and performance specifications or
capabilities that must be met.
4. The RFP should state what deliverables the customer expects the
contractor to provide.
18. Preparing a Request for Proposal
5. The RFP should state the acceptance criteria the customer will
use to determine if the project deliverables are completed
6. The RFP should list any customer-supplied items.
7. The RFP might state the approvals required by the customer.
8. Some RFPs mention the type of contract the customer intends to
use. (for example fixed or cost plus)
9. An RFP might state the payment terms the customer intends to
19. Preparing a Request for Proposal
10. The RFP should state the required schedule for completion of the
project and key milestones.
11. The RFP should provide instructions for the format and content
of the contractor proposals.
12. The RFP should indicate the due date by which the customer
expects potential contractors to submit proposals.
13. An RFP may include the evaluation criteria.
14. In rare cases, an RFP will indicate the funds the customer has
available to spend on the project.
20. Soliciting Proposals
• Once the RFP has been prepared, the customer solicits proposals by
notifying potential contractors that the RFP is available.
• One way for customers to do this is by identifying a selected group
of contractors in advance and sending each of them a copy of the
• Another approach to soliciting potential contractors is for the
customer to provide information on certain websites and in
relevant business newspapers.
• Business or government customers may hold a to
explain the RFP and answer questions from interested contractors.
21. Soliciting Proposals
• It must be noted that not all project life cycles include the
preparation of a written RFP by a customer and subsequent
submittal of proposals from contractors.
• Some endeavors move right from the initiating phase where a
project is identified and selected into the planning and performing
phases of the life cycle. This process bypasses the RFP and proposal
• There are other projects in which requirements are not written
down in a formal RFP, but are communicated to several providers
or suppliers (contractors).
22. Although projects can be businesslike or
informal, they all start with the
identification of a , or
and then proceed to the
sponsor defining (in writing or verbally) the
, , and
for what is to be
scope requirements budget schedule
23. Although projects can be businesslike or
informal, they all start with the identification
of a need, problem or opportunity and then
proceed to the
sponsor defining (in writing or verbally) the
scope, requirements, ,budget, and schedule
for what is to be accomplished.