Paper E2 enterprise management: before you start tackling complex E2 project scenarios, it may help you to commit the terms and processes of project management to memory by applying them to a setting closer to home.

AuthorHughes, Jenny
PositionStudy notes

Projects usually follow a life cycle comprising separate stages that occur in sequence. There are numerous models that detail these (see diagram, below), but, whichever model you follow, it's important to understand what happens at each stage. This article--the first in a two-part series--focuses on the following stages of a project entitled "building the house of your dreams":

* Initiation (including feasibility)

* Planning

* Execution

* Monitoring and control

* Completion.

The process of building a house starts long before the foundations are laid. To avoid costly mistakes during the construction you will need to find answers to specific questions in order to decide whether it's feasible to proceed. You will have to consider how much your new property is likely to cost. The chances are that you will need both a construction loan and a mortgage to fund the project. Knowing the approximate costs at this stage will help you to modify your building plans to meet the budget.

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Next you might need to consider the location. Whether you're choosing to build your home in a suburban development or on a site with sweeping ocean views, you will need to choose a plot and investigate factors such as soil conditions, drainage and building costs in the area. Having a good idea of your preferred architectural style will determine the size and characteristics of the building site.

As you can see, a number of questions need to be asked before any commitment to proceed is made, all of which are part of the first stage of project management: initiation. You are undertaking a feasibility study, aiming to objectively and rationally uncover the strengths and weaknesses of the proposed venture; opportunities and threats presented by the environment; the resources required to carry the project through; and, ultimately, its prospects of success. Feasibility is a term used to determine how achievable various project options are. Such studies are normally conducted on a number of potential strategies. The aim is to decide which to choose. Each study will generate a feasibility report dealing with the evaluation criteria, analysing the findings and making recommendations. Any risks to the project will also be assessed at this point.

Once you have decided that you still want to go ahead and build the house of your dreams, the next task is to compile a project initiation document (also known as a project charter). Its purpose is to define the...

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