Project Initiation

Project Initiation Report

This summarizes the results of the Project Initiation stage of the project and recommends
proceeding to the next stage. It defines what work is to be done, what is to be delivered,
how long it will take, by whom, how much it will cost and why it is worth doing.
1 Background.................................................................................................................1
2 Project Objective.........................................................................................................1
3 Project Scope..............................................................................................................2
4 Project Approach........................................................................................................7
5 Project Organization...................................................................................................9
6 Project Controls........................................................................................................11
7 Business Case............................................................................................................13
8 Risk Analysis.............................................................................................................15
9 Recommendation & Next Steps................................................................................16
Appendix A: Project Plan.............................................................................................17
Appendix B: Business Case..........................................................................................18
Appendix C: Risk Analysis Score Sheet.......................................................................19

1 Background
Provide in one or two short paragraphs enough information to put this project into the
context of the existing business and systems. State the business problem that the project
will address.

2 Project Objective
To:

project objective...
in a way that,

qualify the way the project is to be carried out...

qualify the way the project is to be carried out...

so that:

business objective...

3 Project Scope
Dimension of Scope - Information Flow
Scoping Diagram

272417615.doc

1 of 19

11/4/09

Project Initiation

data
Customer
Service

data

data
data

data
data

Customer

data

Software R&D

data
Assembly &
Test

data
Core Products
Engineering

Strategic
Marketing

data
Quality
Improvement

data
data
Finance &
Operations

In Scope

bullets...

bullets...
Out of Scope

bullets...

bullets...

272417615.doc

2 of 19

11/4/09

Project Initiation

Dimension of Scope - Data

Data Model
Geographic
Region

Customer

Product

Order

Inventory

In Scope

bullets...

bullets...
Out of Scope

bullets...

bullets...

272417615.doc

3 of 19

11/4/09

Project Initiation

Dimension of Scope - Business Process

Data Flow Diagram (Level 1)
0

1
Material Control

Level 1 Order Processing DFD

1
Setup New Product

Product Data(New)

Product Details

D
2

Product

Product Details

5
Initiate Purchase Order

Supplier Details

3
Supplier

Orders

Orders(Copy)
Inventory

Supplier And Price Data(New)

Orders
3
Setup Suppplier And Price

D
4

Inventory

D
1
Inventory

Supplier Details
D
5

Deliveries

Receipt Note

2
Goods In

Orders
Receipt Note

2
Post Receipts To Stock

Receipt Note

Receipt Note(Valid)
D
3

Supplier
4
Pay Supplier

3
Supplier

Invoice

Name Address(Valid)
Remittance

In Scope

bullets...

bullets...
Out of Scope

bullets...

bullets...

272417615.doc

4 of 19

11/4/09

Project Initiation

Dimension of Scope - Miscellaneous

Diagram
Any appropriate diagram or matrix...
In Scope

bullets...

bullets...
Out of Scope

bullets...

bullets...
Initial Requirements
Provide a summary list of the initial requirements to assist the scoping of the project.
The list is not exhaustive and the requirements will be significantly expanded during
the next stage...

Ref.

Requirement Name

Training Requirements
List initial training requirements for the project team to execute the project...
List initial client training requirements to use the application...
Constraints
The project end result is needed by...
The maximum cost of the project is...
The inter-project dependencies are...
Assumptions
List all scoping assumptions...

Scoping assumption...
Outline Solution
Optionally include a diagram and narrative of a proposed outline solution to illustrate
the feasibility of achieving the objectives of the project...

272417615.doc

5 of 19

11/4/09

Project Initiation

Measurements of Success
List the criteria by which the project will be measured for success:

Success criteria...

272417615.doc

6 of 19

11/4/09

Project Initiation

4 Project Approach
Stages
This plan is intended to provide an initial schedule for the whole project. It will be
revised and validated at the end of each stage, as and when each detailed stage plan is
created. It has been developed with the minimum of analysis, with an incomplete
definition of scope and with only a sketched set of requirements. The project level
dates should be thought of as ranges, and on no account be regarded as accurate or
binding.
Stage Name

Stage Description
To:

Product

in a way that:
so that:

See Appendix A for a fully described stage & step WBS.

Optionally express the project approach in a narrative form, explaining the rationale for
the recommended approach...
Resource Requirement
Stage

Roles

Numbers

Participation

List required additional hardware, software, equipment, etc.:

hardware...

software...
Project Schedule Summary

Stage Name

272417615.doc

Duration (days)

7 of 19

Start (mm/yy)

End (mm/yy)

11/4/09

Project Initiation

See Appendix A for PERT and Gantt charts.

Assumptions
List all assumptions made when defining the WBS, resource requirements, high level
estimates and schedule:

project planning assumption...

272417615.doc

8 of 19

11/4/09

Project Initiation

5 Project Organization
Project Board

Project
Coordinators

Project
Manager

Key
Resources

Project Team

Role
Project Board

Project Sponsor

Business Partner

Technical Partner

Resource

Key
Stakeholders

Organization

Reqt.
hrs/mth

Key Stakeholders

Client

hrs/mth

DEVELOPMENT

hrs/mth

OPERATIONS

hrs/mth

Project/Stage Manager

hrs/wk

Project Team

Client

hrs/wk

DEVELOPMENT

hrs/wk

OPERATIONS

hrs/wk

Project Coordinators

Planning

hrs/wk

Business

hrs/wk

Technical

hrs/wk

Key Resources

272417615.doc

9 of 19

11/4/09

Project Initiation

Client

hrs/wk

DEVELOPMENT

hrs/wk

OPERATIONS

272417615.doc

hrs/wk

10 of 19

11/4/09

Project Initiation

6 Project Controls
Quality Control Procedure
The stage plan will define all products to be produced and will identify the appropriate
client and technical resources to execute quality control. All products will be subject to
peer review and all defects will be recorded.
See Project Management & Control Process.
Progress Control Procedure
The stage plan will contain work (effort) estimates by task by resource. Actual work and
latest-estimate-to complete will be tracked on a weekly basis by task by resource. Actual
progress against schedule will be reviewed at weekly team status meetings.
The plan will be revised and re-issued to the project team.
The Project Manager will produce a weekly status report which will be distributed to the
Project Board, Key Stakeholders, project team and all interested parties.
See Project Management & Control Process.
Control Factors & Tolerance Parameters
The Project Board has decided that the general control factors for the project are:
Maximize

Constraint

Accept

Cost
Schedule
Performance
where, COST is the total amount (capital and expense dollars) spent to complete the
project; SCHEDULE is the duration of target completion date; and PERFORMANCE is
the quantity and quality of the interim and final products.
The Project Manager is permitted the following tolerance during a stage before an
exception situation occurs requiring Project Board intervention:
Positive Deviation

Negative Deviation

Cost
Schedule
Performance

Change Control Procedure

The stage plan will identify the degree of change control to be applied to specific
products. The Project Manager will maintain the Request for Change Log.
272417615.doc

11 of 19

11/4/09

Project Initiation

See Project Management & Control Process.

Issue resolution Procedure
The Project Manager will maintain an Issues Log to record and track the resolution of
Issues.
See Project Management & Control Process.

272417615.doc

12 of 19

11/4/09

Project Initiation

7 Business Case
Initial Benefits
List the initial business benefits and quantify in financial terms. These initial benefits are
critical to justifying the project and setting realistic expectations...
Ref.

Benefit

Calculations and assumptions can be found in a Appendix B.

Initial Development & Conversion Costs
WBS Activity Title

Rsc

H/w

S/w

Proj

Inst

Misc Total

H/w

S/w

Inst

Misc

Total

Initial Operational & Maintenance Costs

Qtr

Rsc

Qtr1
Qtr2
Qtr3
Qtr4
Calculations and assumptions can be found in a Appendix B.

272417615.doc

13 of 19

11/4/09

Project Initiation

Breakeven Point
The project is expected to breakeven during the 4th Quarter after installation.
140

120

US Dollars

100

80

60

Accumulated Cost

40

Accumulated Benefits
20

0
Qtr1

272417615.doc

Qtr2

Qtr3

Qtr4

14 of 19

Qtr5

Qtr6

Qtr7

Qtr8

11/4/09

Project Initiation

8 Risk Analysis
The risk analysis has determined the following levels of risk to the project:
Category
External Dependencies

Level

Organizational
Planning
Business Case
Technical
Overall Project
The following specific risks may cause the project to fail to meet it's objective.
In narrative summarize the major risks and proposed counter measures...
Major Risk

Counter Measure

See Appendix C for the Risk Analysis Score Sheet.

272417615.doc

15 of 19

11/4/09

Project Initiation

9 Recommendation & Next Steps

The Project Manager recommends the following course of action:
State the recommended next steps with supporting arguments. Either recommend a "go",
"no go" or "defer until..." decision...
"Go" recommendation supporting arguments:

It is important to do it because...

It is important to do it now because...

If nothing is done it will...

The business justification is strong because...

"No Go" or "Defer until..." recommendation supporting arguments:

There are inadequate resources...

Lacks financial justification...

If nothing is done...

If the Client Co-ordinator wishes to make a different recommendation, then state it here
with supporting arguments...

272417615.doc

16 of 19

11/4/09

Project Initiation

Appendix A: Project Plan

WBS Description Report
WBS

Activity Title

Activity Description

Table produced from Process Engineer.

Products Report
WBS

Product Title

Product Description

Table produced from Process Engineer.

Resource Requirement Report
WBS

Activity Title

Produce

Consult

Review

Approve

Parenthesis indicate resource equivalent

Table created from Process Engineer data.
Project Plan PERT Chart
Produced from Microsoft Project
Project Plan Gantt Chart
Produced from Microsoft Project

272417615.doc

17 of 19

11/4/09

Project Initiation

Appendix B: Business Case

272417615.doc

18 of 19

11/4/09

Project Initiation

Appendix C: Risk Analysis Score Sheet

Produced from RISK.XLS.

272417615.doc

19 of 19

11/4/09