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Milestones (in the process diagram depicted by a diamond 
) are used as goal for each phase. A milestone is merely a decision and is based on data and artifacts. The milestone for the phase Apply for instance is only true (and therefor reached) when the application is complete, meaning all mandatory data is provided and necessary documents are uploaded. Milestones are used to steer the phases at a high level. In theory each phase has one milestone that ends the phase and each phase (except the first one) will only be opened when the milestone of the previous phase is reached. It is very uncommon and nt not advisable to design a process that can be in two phases at once or no phase at all.
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