Traditionally a milestone was a white stone set beside the road to mark the distance in miles to various places. Today it refers to a significant event on the path to progress. This is precisely how milestones are used in project management. They are the signposts along the way. They signify the progression of the project to its end objective.
A project defined
A project is a set of tasks that must be performed to accomplish a pre-determined goal. It is an activity with a unique outcome, such as building a factory or creating and producing a new product. A project has a clear beginning and end. It has a set objective.
Along the way, the project will require inputs and will produce outputs. A project may include many tasks that build upon one another and must meet specific deadlines to ensure on-time completion. You can find many project management tools that can be used for milestone analysis in project management. These include Gantt Charts and critical path analysis.
Projects are often complex and challenging to manage, which is why project managers break them into phases. Project phases make it easier to control and track task completion. Each step of the project will have a milestone and a set of deliverables.
The project manager will define these project milestones and deliverables up-front. So, there can be no doubt when the phase is closed, and the objectives are met.
Project management activities
A project requires cross-functional collaboration and will have a set budget. Without high-level planning and control of resources and deadlines, the project won’t meet its objectives.
Project management activities fall under the following categories
- Planning – goal definition and planning of resources
- Scheduling – using resource availability to plan project milestones and deliverables. Scheduling typically takes place before the start of the project
- Controlling – controlling actions will include milestone analysis in project management and the development of financial and budgetary controls.
Milestone analysis in project management
Milestone management is critical to the achievement of project deadlines. A milestone is a specific time in the project lifecycle which measures the progress to the project completion. Milestones are used to highlight important dates that will have an impact on the overall project completion date. They can break the project into manageable chunks.
The milestones in such a project might include customer scope sign-off, web design, sign-off, content establishment, website launch, and final product sign-off. Milestones may consist of final design approval, prototype build, sample production, and delivery into the warehouse. IT project management examples offer insight into milestone management.
Milestones create a sense of urgency. They ensure that all stakeholders know when to expect the completion of essential tasks along the way. They also provide accountability in the project management team.
Managing milestones is all about managing critical dependencies between the team and outside suppliers. If, for example, project completion is dependent on the action of a supplier, this will form a milestone in this case. The project milestones and deliverables might be machine delivery and installation or component sign-off. Identifying appropriate milestones is an essential part of achieving project goals on time and within budget.
Milestones must be achievable. Taking a project realization date imposed by the leader, then working backward is a recipe for disaster. Develop the milestones based on the start date. Then establish achievable deadlines taking resource dependencies into account.
Once the milestones have been set and discussed with senior management, ensure that all stakeholders access the plan via project management software or a simple Gantt chart. Now it is time to start tracking progress to plan.
What is milestone risk in project management?
It is essential to analyze risks when planning project milestones and deliverables. Each project comes with its risk profile, and understanding the milestone risk will help you meet project deadlines.
If, for example, you plan to introduce new process technology, this may present the most significant risk. In this case, you may build some slack into the timeline to accommodate installation and sample production. Alternatively, if you are introducing new products, market acceptance may present the most considerable risk. So, you might build prototypes upfront to test the market.
Risks to milestone delivery
- Lack of resources – very often, project team members have daily functional duties. Project tasks add to the workload. This can lead to late completion of tasks and failure to meet the milestone deadline.
- Poor planning of milestones – optimistic planning of milestones can put resources under undue pressure leading to late task completion.
- Changes in scope – scope creep is a common phenomenon. Growth in scope inevitably results in overspent budgets and the inability to meet planned deadlines. If the scope of the project changes, then so too should the budget and the milestone dates.
- Failure to identify and manage risk – every project faces threats ranging from resources to technical risks, market risks, and stakeholder resistance. Identify the risks upfront so that you can take steps to mitigate them.
Milestones are signposts along the project path. They signify a stage in the development of the project. They can’t replace good project management, but they help to reduce the complexity. A successful project must meet the main criteria, on-time delivery at the right price. Adherence to budget and timelines are checked when milestones are met so that the project team can take corrective action.