Project Life Cycle and Product Life Cycle Relationships

Many projects are linked to the ongoing work of the performing organization. Some organizations formally approve projects only after completion of a feasibility study, a preliminary plan, or some other equivalent form of analysis; in these cases, the preliminary planning or analysis takes the form of a separate project. For example, additional phases could come from developing and testing a prototype prior to initiating the project for the development of the final product. Some types of projects, especially internal service or new product development projects, can be initiated informally for a limited amount of time to secure formal approval for additional phases or activities.

The driving forces that create the stimuli for a project are typically referred to as problems, opportunities, or business requirements. The effect of these pressures is that management generally must prioritize this request with respect to the needs and resource demands of other potential projects.

The project life cycle definition will also identify which transitional actions at the end of the project are included or not included, in order to link the project to the ongoing operations of the performing organization. Examples would be when a new product is released to manufacturing, or a new software program is turned over to marketing. Care should be taken to distinguish the project life cycle from the product life cycle. For example, a project undertaken to bring a new desktop computer to market is only one aspect of the product life cycle. Figure 2-4 illustrates the product life cycle starting with the business plan, through idea, to product, ongoing operations and product divestment. The project life cycle goes through a series of phases to create the product. Additional projects can include a performance upgrade to the product. In some application areas, such as new product development or software development, organizations consider the project life cycle as part of the product life cycle.