Wednesday 2 February 2022

Stages and phases of the investment project

Any initiative conceived by a person goes through several successive phases in its development, and fits into a standard scheme. Most often we are talking about investment projects that involve the investment of certain funds in order to make a profit. The main stages of the development of the investment project, produced one after another, give the project harmony and completeness.

To begin with, it is worth figuring out what a milestone, stage and stage are:

  • A milestone is called a moment that becomes key in the development of the idea. The profitability of the project, the speed of its development and the final success may depend on the milestone. Usually, the milestone is the conclusion of an important contract or the holding of an equally important event. Thus, we can conclude that the milestone is a control point that transfers the idea to a new stage of growth;
  • The project stage is the period of time during which all the tasks set for this period are performed. After completing a specific stage, there is a transition to another stage and the tasks specified for this period of time are performed. We can say that the stage is one of the many parts of the life cycle of the idea.
  • The project stage is a concept that defines the life segment of the idea, which includes certain stages and tasks. For example, such stages as draft, execution, completion of execution can be called fundamental.

Characteristics of the stages of the investment project

All phases of the investment project are formed into the concept of "life cycle of the project task", the peculiarity of which is the limited time and focus on a specific result. The idea and implementation of the project can be considered as a certain set of points (milestones) that crown the beginning and end of certain processes. So, for example, the emergence of an idea ends with a milestone (the creation of a general concept), followed by a development phase, which is crowned with a specific plan, etc.

In modern practice, there are several different approaches to understanding the content and composition of the project stages. It is known to divide the entire cycle into separate stages, recommended by the World Bank, a distinctive feature of which is the identification of the idea and external examination of the developed documentation. Graduates of MBA schools are more likely to use the problem-oriented method, where the formulation of the goal stems from the identification and analysis of the problem and the subsequent formulation of tasks.

However, the most well-known and common method is the four-phase sequential approach. According to it, the following stages of the project are distinguished:

  • Pre-investment.
  • Investment.
  • Production (operational).
  • Final (liquidation-analytical).

Most often, investment projects are developed not from scratch, but within the framework of a broader concept of an investment program, which, in turn, is an integral part of the company's investment strategy. The introduction of new ideas makes it possible to invest profitably and diversify the areas of activity, and, accordingly, the risks.

Preparatory stages of the idea

The pre-investment phase includes a number of preparatory stages preceding the development of design and estimate documentation:

  • Generation (formulation) of a new idea or concept, which should become the basis of the project and bring profit as a result of its implementation, the study of potential, as well as its detailed analysis (patent and innovation). In addition, a curator of the entire undertaking is appointed, who selects a team of financiers, technical specialists and marketers to work out ways to implement the concept.
  • Conducting the necessary research, developing a preliminary and final feasibility study (feasibility study) of the initiative, preparing a business plan. This stage is the most time-consuming and required resources, but it should be treated with maximum responsibility, since the price of a mistake is a major financial loss and a blow to business reputation.
  • Assessment of the prospects of the project and preparation of an expert opinion on how expedient it is to invest in this initiative.
  • After a positive expert assessment, a number of actions are carried out aimed at preparing for the next phase: a detailed plan for the use of the proposed investments is developed, the project management enterprise is registered, contracts are concluded with customers or contractors, and a work plan is formed.

The level of costs for the initial stage of the idea, as a rule, ranges from 0.7% of the total amount of investments in large-scale undertakings, to 5% in small projects. Subsequently, these costs are transferred to the cost of production, which will be produced by the new enterprise, through depreciation.

The investment phase involves the practical implementation of the approved concept and begins only after all the preparatory processes and a positive decision on the prospects of the plan. It consists of the following actions:

  • Development of DED (design and estimate documentation), which is usually carried out by specialized design organizations.
  • Elaboration of the general scheme and sequence of financing of all works.
  • Search and conclusion of contracts with suppliers of necessary equipment and raw materials.
  • Production of construction and installation works, i.e. construction of the necessary structures or buildings, starting from the zero cycle and up to finishing works. Commissioning of facilities, acceptance works.
  • Selection, order, supply of the required technological equipment. The choice can be made both through negotiations and a tender for the production and supply of equipment.
  • Installation of equipment in prepared production facilities, its inspection and adjustment to the desired indicators (commissioning).
  • Recruitment of qualified personnel, their education and training.
  • In fact, after the completion of the investment phase, all actions related to the preparation of pre-project and project documentation, as well as the construction of facilities and the installation of equipment, are completed.
  • However, this does not mean that the project is completed, since the phase for which, in fact, all this was started is coming.

Project implementation and completion phase

The production (operational) phase originates from the commissioning of the main equipment of the enterprise. Its main goal is:

  • launch of production of planned products;
  • reaching the design capacity;

development of a sales system for products and maintaining its proper quality.

  • the constant need to search for options for marketing products at the highest possible level to ensure capacity utilization;
  • achieving the rhythm of production, preventing equipment downtime or overstocking of warehouses;
  • recurring questions about the availability of sufficient funds for current expenses and insufficient working capital.
  • Since the main goal of the investment project is the fastest possible return on investment and profit, the most profitable is the idea in which the pre-investment and investment stages are short, and the production stage is long.
  • The duration of the production stage is calculated even during the design, based on the standard service life of the installed equipment. Physical deterioration (depreciation) and obsolescence of fixed assets, as well as the frequency of their renewal, are necessarily taken into account. Sometimes relatively small additional investments are required to modernize production and increase profitability.

The project ends when one or more of the following conditions are met:

  • commissioning and starting operation of a completed project of a non-productive nature, such as a kindergarten, hospital, school, sewage treatment plant or other social or environmental facility;
  • achieving the level of self-sufficiency of the undertaking;
  • the beginning of a deep modernization of fixed assets, that is, making changes to the object that were absent in the original plan;
  • liquidation of the project or decommissioning of production due to customer satisfaction, market saturation, obsolescence of products or depreciation of fixed assets.

The liquidation and analytical phase occurs after the closure of the project and solves the following tasks:

  • analysis of the success of the completed project, the level of achievement of the tasks and goals set for it, the data of such an analysis (including miscalculations and errors) are taken into account in the development and implementation of new concepts;
  • elimination of the negative consequences of the completed plan, in particular with regard to the protection of the environment;
  • making decisions and carrying out measures regarding the released production facilities or land plot (re-profiling);
  • reorientation of the released working capital to other activities.
  • All the main stages that make up the life cycle of any initiative are extremely important. Poorly conducted general planning or poor implementation of individual components of the entire cycle can make the initiative unviable, and investments - unprofitable.

What is the project manager's actions at the various stages?


Project initiation is one of the stages in which a plan is built, employees are recruited, certain goals are set and the idea is prepared for its launch as a whole. Initiation allows you to avoid cost overruns, waste of your own and others' time and decide whether to start work at all. During this period, the manager must:

  • Develop a project charter;
  • Describe the basic information related to the idea, justify its feasibility and expected results;
  • Choosing people who will participate in the development of the idea.
  • All the information described above is prescribed in the charter. Usually, it contains from 2 to 4 pages of text.

Implementation of the idea

The passage of this stage is the active development of the project. It should involve both regular staff and the manager. His responsibilities include:

  • If necessary, making changes to the plan;
  • Careful monitoring of the performance of work;
  • Work on forecasts;
  • A look at the idea as an object of control.
  • Commissioning of the project

The final and most responsible stage. At this stage, the result is evaluated and put into use. To get the desired result, the manager needs:

  • Determine the type of functional purpose of the object;
  • Develop project documentation;
  • Collect the necessary package of documents for the commissioning of the object;
  • Obtain permission to put the facility into operation.
  • Implementation of project activities in education
  • In addition to investment, there are also other types of project initiatives that are not directly related to investing and making a profit. However, since this type of activity today is considered the most advanced and promising, they begin to introduce its basics already in kindergarten.A girl at a microscope is doing a research project at school.

So, since 2013, in accordance with the requirements of the new Federal State Educational Standard for Preschool Education (FSES DO), a new innovative form of work has been introduced in children's institutions - project activities. The purpose of its implementation is the development of creative and cognitive abilities of the child, the formation of his personality in cooperation with other children, parents and teachers. The essence of the method is that the child is given a certain task or problem, the solution of which he must solve himself, showing initiative and independence.

To develop the thinking of each individual and the ability to work in a team, individual and group tasks are distinguished. The main stages of the implemented project method can be defined as the following:

  • Search. It includes goal-setting, that is, a conscious choice of the problem of interest, an assessment of one's own strength to solve it, the availability of a temporary resource. This should also include the formation of a team.
  • Analytical. This is the compilation of a step-by-step plan for solving the problem. The child ponders where he can find the required information, what accessories to use, what objects to learn to work with. Also, the preschooler should understand that in case of problematic issues, he can seek support from other people, and determine for himself to whom specifically (other children or adults). In the group, the roles are distributed, different options are considered and the best one is chosen.
  • Practical. This is the stage of the task implementation, which is based on the two previous preparatory stages.
  • Presentational. Here it is important to teach the child to correctly present the result of his work in an interesting form for others.
  • Control. At this stage, the child, together with adults, sums up the results of the project, analyzes what was successful and what was not, and why. The approximate theme of the next idea is also outlined.

Today, there are several types of project tasks for preschoolers:

  • Creative and research. Children conduct various experiments, and the results obtained are presented in the form of wall newspapers, reports, drawings, mosaics, various installations.
  • Gaming and role-playing. Children act as fairy-tale or literary characters, solve problems on the relevant topics, using elements of the game.
  • Practice-oriented informational. The essence consists in the collection of certain information by preschoolers, its primary processing and presentation in the form of socially important objects, such as the emblem or flag of the group, stained glass, useful crafts.
  • Creative. The implementation of the idea for any holiday may include decorating the stage, staging a scene or a small performance, a concert. The presentation is often held in the presence of parents.
  • Normative. They are aimed at a deeper understanding of existing norms and rules. Children can draw up a certain set of rules themselves, draw it up in the form of a document and comply with them.
  • In the course of this teaching methodology, children learn to correctly formulate tasks, conduct preparatory analytical and communicative activities, plan their actions and implement the idea according to the plan (both short-term and long-term). It is also important to be able to convey your information to others and analyze your mistakes.

What stages does a creative project have?

Preparation phase. This part implies the definition of the topic of the idea, its goals, objectives and possible material costs for implementation. In addition, the selection of the best option for the implementation of tasks and the preparation of a plan for the implementation of the object are carried out. The manager acquaints the team with the drawn up plan.

Execution phase. If necessary, workplaces and tools are prepared and the design of the proposed object is created. Roles are distributed and tasks are distributed among all members of the team, after which the implementation of the plan begins.
Final part. The manager conducts a thorough check of the result, assesses how accurately the plan is executed and draws up the conclusion of the creative project. The whole team is assembled and the final object is given a general assessment. The next step will be to prepare for the defense of the project.

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