This diagram is for those who are more systems and process minded and impatient!
On top, in blue, the diagram shows the sequence of:
- Inputting resources
- Creating the product, and
- Outputting a product or service.
These may be:
- A tangible product like a car,
- An intellectual product like software, or
- An intangible like a service
It also shows the inevitable waste, in effort and materials.
If this is a unique initiative, we call this a project.
Behind this top layer, in yellow, is the sequence of managing the project to
the best advantage, that is:
- Effectively in the selection, development and planning, and
- Efficiently in reaching the final outcome.
First we determine:
- The scope of the product, (product scope) to meet specific requirements,
- The extent of work involved.
Then we decide on:
- The quality grade for the product
As we'll explain later.
This information is assembled into a project plan that we use to steer the project through the process.
From this plan we can also estimate:
- The time and effort the project will take, and
- What it will cost.
We call this project management.
Of course, we would not bother with all of this unless there was something to be gained, i.e. an opportunity.
Unfortunately, where projects are concerned, there is always the possibility that things will not work out. This is the risk involved.
The green circle in the background shows the opportunity environment with its associated risk environment fading to red.