Understanding the Three Stages of Project Life Cycle

The project life cycle consists of three key stages: pre-investment phase, construction phase, and normalisation phase. The pre-investment phase involves objective formulation, demand forecasting, and cost-benefit analysis. The construction phase focuses on building project infrastructure and investing in essential assets. Lastly, the normalisation phase entails routine procedures, production of goods and services, and optimal asset utilization to achieve project objectives.

• Project management
• Life cycle
• Investment
• Construction
• Optimization

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Uploaded on Jul 13, 2024 | 1 Views

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1. 5.5.PROJECT LIFE CYCLE

2. Three Stages in Project Life Cycle Three Stages in Project Life Cycle 1.The Pre-investment Phase 2.The Construction Phase 3. The Normalisation Phase

3. 1.Pre Investment Stage First phase in the life of the project Concerned with objective formulation, demand forecasting, selection of optimal strategy, evaluation of input characteristics, projections of the financial profile, cost-benefit analysis and pre-investment appraisal. During this phase project idea is developed into an investment proposition.

4. 2. The construction phase After investment decision this phase begins Consists of developing the infrastructure for the project Resources are invested during the phase in building the basic assets of the project Assets may be land and buildings, plant and machinery, ancillary accommodation, communication services , control systems and marketing organization Developing necessary manpower resources also comes under this phase.

5. 3. The Normalisation Phase After trial run of the project framework Involves routine procedure performed in a cyclical order Production of goods and services takes place Provision has to be made for raw materials and other resources required for production Determined by the analysis of process and sequence of process operation The assets created during construction phase are utilised Proper utilisation is required to achieve the objectives