Project Management — 1.6 How a Project Reaches to US ?
Project Formulation
In the last article, we have seen different organizational structures ,wherein a project is managed with different practice. Similarly, then we saw that which organizational structure is among them the best to adopt for in order to materialize the best practices of Project Management.
Thereupon, we reckoned that Strong Matrix Organizational Structure is the best and ideal organizational structure in which a project can be managed effectively, efficiently with great outcomes positively. Moving on, its important for us to learn that how a project reaches to us.
In simple words, it can be said that how a need gives birth to a project , and how that need translates into different procedures and steps and eventually shape up engendering a project and reaches to us. Below, I have taken an example of “a need of an organization” , which want to get developed a Management Information System(MIS) to storing and retrieving data.
And, that need is processed through different phases, such as (Consultant’s role, Feasibility Report, Statement of Work(SOW), Terms Of Reference(TOR),Bidding, Agreement, Project Charter) and become a project. Similarly, the below-mentioned diagram is self-explanatory with all steps that can better elucidate with clear explanation.
1) Role of Consultant:
The Organization would hire a consultant that would prepare the “Feasibility Report”. This Consultant has a considerable domain related experience. For instance, the project is related to IT, as the Organization wants to get developed the “Management Information System (MIS)”. So, the consultant is supposed to have a significant experience related to IT processes, Procedures, Architectures, Framework, Technologies, Integrated Development Environment (IDEs). So, in the light of his Experience and ongoing market trends, he would write the Feasibility Report.
2) Feasibility Report:
Feasibility Report revolves around the “assessment of the practicality of a project or system”. It is always based upon the logic, facts, and rational grounds.
Types of Feasibility Study:
1) Technical Feasibility:
Technical feasibility is the study to reckon that if the “Management Information System” can be developed with the demanded Technology Stack.
2) Economic Feasibility:
Economic Feasibility deals with the cost/benefit analysis of the Project. In other words, we determine that if within that cost can we get this “Management Information System (MIS)” developed.
3) Legal Feasibility:
It is ensured that this MIS does not conflicts with legal requirement like Zoning Laws, social media Laws and other IT laws.
4) Scheduling Feasibility:
It is ensured this Can this MIS get developed in the demanded time period.
3) Statement of Work (SOW):
Statement of Work (SOW) is written by Client that what he wants to get developed. He clearly writes the work description in details and covers all the required dimensions in depth. Thereupon, this SOW is advertised in the Newspaper for Bidding.
4) Terms of Reference (TOR):
Terms of Reference is a kind of Advertisement, which is written in the light of SOW (Statement of Work) and is published in Newspapers.
5) Bidding:
Companies come and bid seeing their “Terms of Reference” in Newspaper. They do Technical and Financial Bid. Technical Bid is about the technical aspects which they would incorporate in Project Completion, Whereas the Financial Bid is about the financial aspects that in how much cost the Project would be completed.
6) Bid Evaluation:
After the process of Bidding , the Consultant and the Client (XYZ Organization) would evaluate the bid. Thereupon, would contact the Company which seems close to their demands and would contact them.
7) Agreement:
After Bid evaluation, a formal mutual agreement is signed between the client and the Company which won the Bid.
8) Project Charter:
Project Charter is the summary of Statement of Work plus Agreement. A sample Project Charter is there for in-depth understanding.
