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Chapter 5:IT Project Management Slides by: Shree Jaswal

Topics to be covered• Introduction,

• 4 P’s,

• W5HH Principle,

• Need for Project Management,

• Project Life cycle and ITPM,

• Project Feasibility,

• RFP,

• PMBOK Knowledge areas,

• Business Case,

• Project Planning,

• Project Charter

• Project Scope

• WBS

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Which Chapter? Which Book?• Chapter 24: Managing Software Projects, Roger Pressman, “ Software

Engineering: A practitioner’s Approach”, 7th Edition, Mc Graw Hill Publication

• Chapter 1: An overview of IT Project Management, Jack T. Marchewka, “Information Technology Project Management” 4th Edition ,Wiley India

• Chapter 2: The Business case, Jack T. Marchewka, “Information Technology Project Management” 4th Edition ,Wiley India

• Chapter 3: The Project Charter, Jack T. Marchewka, “Information Technology Project Management” 4th Edition ,Wiley India

• Chapter 5: The Scope Management Plan, Jack T. Marchewka, “Information Technology Project Management” 4th Edition ,Wiley India

• Chapter 6: The work breakdown structure, Jack T. Marchewka, “Information Technology Project Management” 4th Edition ,Wiley India

• References: John M. Nicholas, Project Management for Business and Technology, 3rd edition, Pearson Education. C

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An overview of IT Project Management

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4P’s• Effective software project management focuses on the four P’s:

people, product, process, and project

• The manager who forgets that software engineering work is an intensely human endeavor will never have success in project management.

• A manager who fails to encourage comprehensive stakeholder communication early in the evolution of a product risks building an elegant solution for the wrong problem.

• The manager who pays little attention to the process runs the risk of inserting competent technical methods and tools into a vacuum.

• The manager who embarks without a solid project plan jeopardizes the success of the project. Ch

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W5HH Principle• Barry Boehm suggested the W5 HH Principle, which is a series of questions that lead to a definition

of key project characteristics and the resultant project plan:

1. Why is the system being developed? All stakeholders should assess the validity of business reasons for the software work. Does the business purpose justify the expenditure of people, time, and money?

2. What will be done? The task set required for the project is defined.

3. When will it be done? The team establishes a project schedule by identifying when project tasks are to be conducted and when milestones are to be reached.

4. Who is responsible for a function? The role and responsibility of each member of the software team is defined.

5. Where are they located organizationally? Not all roles and responsibilities reside within software practitioners. The customer, users, and other stakeholders also have responsibilities.

6. How will the job be done technically and managerially? Once product scope is established, a management and technical strategy for the project must be defined.

7. How much of each resource is needed? The answer to this question is derived by developing estimates based on answers to earlier questions. C

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What is a Project?

Project involves single definable purpose or end item.

Every project is a unique one time activity for doing something which wasn’t done before or doing something differently than what was done before.

Diversity of projects can be measured in terms

of amount of effort, complexity, number of

groups involved, number of skills involved,

types of resources

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Introduction• Definition of a project:

The PMI has defined project as “ A temporary endeavor undertaken to create a unique product or service”

In the broadest sense a project is a specific, finite task to be accomplished.

• IT projects are organizational investments.

When an organization builds or implements an IT solution it expects a ROI

To improve the chances of success in achieving the ROI, a discipline called IT/ software project management has emerged. C

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Context of project management• Project Definitions

A project is a temporary endeavor undertaken to accomplish a unique purpose.

Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project

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Context of project management• Why project management?

It is an effective approach that addresses a wide variety of organizational opportunities and challenges

It focuses on reducing costs and product cycle times in turn having a direct impact on an organization’s bottom line and competitiveness

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Context of project management Managing a project includes:

Identifying requirements

Establishing clear and achievable objectives

Balancing the competing demands for quality, scope, time and cost.

Adapting the specifications, plans and approaches to the different concerns and expectations of the various stakeholders.

Attributes of a project:

1. Time frame

2. Purpose

3. Ownership

4. Resources

5. Roles

6. Risks and assumptions

7. Interdependent tasks

8. Organizational change

9. Operating in an environment larger than the project itself

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1. Time frame: because of the temporary nature of the project it must have a definite beginning and end.

2. Purpose: a project’s goal must be to produce something tangible and of some value to the organization. Eg: system, software, recommendations based on a study..etc.

3. Ownership: although a project may have many stakeholders a project should have a clearly defined sponsor. The sponsor may be an executive, the end user, customer or the client who has the ability and desire to provide direction, funding and other resources to the project. C

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Attributes of a project:4. Resources: they provide the means for achieving a

project’s goal and also act as a constraint.

Triple constraint: scope, schedule and budget must remain in a sort of equilibrium to support a particular project goal. This relationship is referred to as the triple constraint.

Scope ScheduleProject goal

&

expectations

Budget

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5. Roles: IT projects require different individuals with different skill sets. A typical project may include:

Project manager (PM) or leader

Project sponsor

Subject matter expert (SME)

Technical expert (TE)

6. Risks & assumptions: Risk can arise from many sources which maybe internal or external. Eg for Internal risk- key member leaving project midway. Eg. For External risk-dependency on other contractors or vendors.

Assumptions are a form of risk that are introduced in project in terms of forecasts or predictions.

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7. Interdependent tasks: Sometimes the delay of one task can affect other subsequent, dependent tasks. Some tasks may undergo progressive elaboration wherein the tasks will be conducted in steps or increments.

8. Organizational change: Projects are planned organizational change. System that is a technical success could end up being an organizational failure due to resistance to change.

9. Operating in an environment larger than the project itself: the projects selected, the technical infrastructure and the role of IT for each organization are different. The project team must understand both the technical & organizational variables so that the project can be aligned properly with the structure & strategy of the organization.

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Need of project management• Nature of projects and environment have changed.

• Modern projects involve great technical complexity and require much diversity of skills.

• Managers are subjected to constrained resources. Limited time schedules and environmental uncertainty while directing large temporary organizations.

• To cope with complex kind of activities and great uncertainty, new forms of project organization and new practices of management have evolved. C

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Project goalsThe purpose of project management is to direct the project to

achieve three goals

• Budget is the specified or allowable cost for the project

• Schedule is the time period over which the work will be done and the target date for when it will be completed

• Performance requirements specify what is to be done to reach the final result . They include features for final product, technological specifications, quality and quantity measures

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Project life cycle & IT development

Definitions:

Project Life Cycle (PLC): It is a collection of logical stages or phases that maps the life of a project from its beginning to its end in order to define, build and deliver the product of a project i.e the info sys.

Deliverable: It is a tangible and verifiable product of work. Eg. Project plan, design specifications..etc.

Phase exits, stage gates, or kill points: They are the phase-end review of key deliverables that allow the organization to evaluate the project’s performance and to take immediate action to correct any errors or problems.

Fast tracking: It is starting the next phase before approval is obtained which sometimes reduces the project’s schedule.

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Generic Project Life Cycle

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Phases/Stages of PLC

• Define project goal

• Plan project

Answer questions (What, why, how, who, et al)

Baseline plan

• Baseline plan

• Close project

• Evaluate project

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The PLC vs the SDLC• The Project Life Cycle (PLC) focuses on the phases, processes, tools, knowledge and skills for managing a project while the system development life cycle (SDLC) focuses on creating & implementing the project’s product – the information system. See fig in next slide.

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The PLC vs the SDLC

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Project Management Body of Knowledge (PMBOK)

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Project Management Knowledge Areas

1. Project integration management

2. Project scope management

3. Project time management

4. Project cost management

5. Project quality management

6. Project human resource management

7. Project communication management

8. Project risk management

9. Project procurement management Ch

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Methodology A strategic level plan for managing and controlling IT projects

A template for initiating, planning, & developing an information system

Recommends in support of an IT project:

◦ phases

◦ deliverables

◦ processes

◦ tools

◦ knowledge areas

Must be flexible and include best “practices” learned from experiences over time

Over time, an organization’s methodology incorporates a set of best practices that fits the organization and the projects it undertakes.

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An IT Project Methodology

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Phases : Phase 1

Phase 1: Conceptualize and Initialize It focuses on defining the overall goal of the project as goal

aids in-

◦ Defining the project’s scope and guides decisions throughout the project life cycle

◦ Using at the end of project to evaluate the project’s success.

Alternatives for meeting the goal are analyzed with respect to cost-benefit, feasibility, risk etc. and the best alternative is chosen and summarized into the business case.

Senior management will use the business case to decide whether the proposed project should be funded.

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Phases : Phase 2

Phase 2: Develop the Project Charter and Detailed Project Plan

Project charter defines how the project will be organized and how the project alternative that was recommended and approved for building will be implemented.

It clarifies project’s goal & defines the project’s objectives in terms of scope, schedule, budget and quality standards.

It also gives authority to PM to start tasks related to SDLC

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Phases : Phase 2

Project plan provides all the tactical details concerning who will carry out the project work and when.

Business case and project charter/plan must remain separate for 3 reasons:

1. Much time and understanding must be devoted to understanding the “big picture”.

2. Combining strategic with tactical planning can confuse the project’s goal and objectives with how they should be achieved.

3. Time- why spend time, money and resources on developing a detailed plan for a project that should not be undertaken?

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Phases : Phase 3Phase 3: Execute and Control the Project using approach such as the SDLC

• It focuses on carrying out the project plan to deliver the IT product and managing the project’s processes to achieve the project’s goal.

• In this phase, the PM ensures that the environment and infrastructure to support the project includes:

Acquisition of appropriate people and technical infrastructure

Setting scope, schedule, budget & quality controls

Making various plans like detailed risk plan, procurement plan, quality mgmt plan, change mgmt plan, testing plan, implementation plan etc

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Phases : Phase 4

Phase 4: Close Project

• In this the project team prepares a final project report and presentation to verify that project has been completed as per the project scope.

• These give the project sponsor confidence that the project has been completed and makes the formal approval and acceptance of the project.

• Final cost of the project can be determined at this time.

• The PM and project team formally close the project by closing all project accounts, archiving all project documents & files and releasing project resources. C

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Phases : Phase 5

Phase 5: Evaluate Project Success

• Post mortem by project manager and team of entire project

• Evaluation of team members by project manager

• Outside evaluation of project, project leader, and team members

• Evaluate project’s organizational value

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IT Project Management Foundation

Project Management

Processes

◦ Initiating processes

◦ Planning processes

◦ Executing processes

◦ Controlling

processes

◦ Closing processes

Project Objectives

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IT Project Management Foundation• Tools - e.g. CASE

• Infrastructure

1. Organizational Infrastructure

2. Project Infrastructure

Project Environment

Roles and Responsibilities of team members

Processes and Controls

3. Technical Infrastructure

• Project Management Knowledge Areas

As an organization gains more experience with projects over time, the lessons learned from every project contribute to each of the nine areas of PMBOK

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Project feasibility• Purpose of feasibility study is investigating the problem and developing a solution in sufficient detail to determine if it is economically viable and worthy of development

• It is done in the 1st phase i.e conceptualize and initialize.

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What is a Feasibility Study?• Objective of feasibility study is to ensure that

the organization is concentrating on the “right

problem”

• A feasibility study involves determining:

1. Information needs of the prospective users,

and

2. Resource requirements, costs, benefits, and

feasibility of the project

Feasibility Study

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Feasibility Study (Problems in getting user needs)

Attaining a good definition of needs is not easy. Dr. Davidson Frame describes the following troublesome aspects:

• Some needs are ever-changing.

• Some needs are only vaguely perceived

• Solutions are confused with needs

• The needs identified are for the wrong user

• There is more than one user, and their needs differ

• User’s needs are distorted by “experts”

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Feasibility StudyThe needs given in RFP may be incomplete or vague, so first step

of feasibility study is to restate the needs. For that following steps are done:

1. Ask the user to state the needs as clearly as possible (A problem is an unsatisfied need)

2. Ask the user a complete set of questions to further elicit the needs

3. Conduct research to better understand the needs

4. Based on information from steps 2 and 3 restate and document the needs

5. Give restated needs to the user.

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Project Feasibility

SDO=The System

Development

Organization

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Request for proposal

• Feasibility study usually being a time consuming process that requires a particular expertise, the user typically chooses to bring in a contractor (SDO)

• The user notifies one or more contractors on his bidders list, internal or external, by sending them a document called RFP.

• The dual purpose of the RFP is to outline the user’s idea (problem, need etc.) & to solicit suggestions (proposals) for solutions- usually with the intent of awarding a contract for the best one.

• The RFP must be clear, concise & complete. Ch

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RFP example

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Request for proposalContents of RFP

1. Background

Very basic idea about the project

2. Statement of work

Description about problem, need, type of solutions, scope of work, work to be included or excluded, criteria for acceptance of end item, specifications and standards, expected completion date, expected relationship between user and contractor

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Request for proposal

3. Proposal requirements

Proposal contents and format, data requirements, submission location and deadline

4. Selection criteria

Technical ability, bid price, experience, plan

5. Technical information and data

Technical performance requirements and standards, address of contact person for requesting additional data (to develop a solution and prepare the price quotation) C

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Selection of ProposalA proposal is selected on basis of following considerations:

• Ability of solutions to satisfy stated needs

• Return on Investment

• Project Plan and management

• Reputation of contractor

• Likelihood of success or failure( risks)

• Fit to contractor resources and technological capability.

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Selection of ProposalTwo methods for selecting the best proposals

1.Screening system – that rejects proposals that fail to meet minimal requirements

2.Checklist or weighted checklist for rating the proposals according to a list of evaluation criteria. The proposal with overall high score wins.

a) simple rating

each proposal is reviewed and given scores Sj for each criterion j.

S= ∑ Sj where j=1,2,3….

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Selection of Proposalb) weighted rating

relative importance of a criterion j is indicated by an assigned weight Wj. After a score(Sj) has been given to a criterion, the score is multiplied by the weight of the criterion .

S= ∑ SjWj where j=1,2,3…. And

∑ Wj = 1.

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ExampleCriteria 1 2 3 4 5

technical solution

approach bad poor adequate good excellent

price of contract >1.8 1.6-1.8 1.4-1.6 1.2-1.4 <1.4

project organization &

mgmt. bad poor adequate good excellent

likelihood of meeting

cost/schedule targets bad poor adequate good excellent

reputation of contractor bad poor adequate good excellent

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Example contd…Simple Rating

Scores

CriteriaIron

butterfly Lowball Modicum

technical solution approach 4 2 5

price of contract 5 5 2

project organization & mgmt. 5 3 4

likelihood of meeting cost/schedule

targets 4 3 5

reputation of contractor 4 4 5

Sum 22 17 21

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Example contd…Weighted Rating

Criteria Weights

technical solution approach 0.25

price of contract 0.25

project organization & mgmt. 0.2

likelihood of meeting cost/schedule targets 0.15

reputation of contractor 0.15

Sum 1

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Scores

CriteriaWeights

Iron

butterfly Lowball Modicum

technical solution approach 0.25 1 0.5 1.25

price of contract 0.25 1.25 1.25 0.5

project organization & mgmt. 0.2 1 0.6 0.8

likelihood of meeting

cost/schedule targets 0.15 0.6 0.45 0.75

reputation of contractor 0.15 0.6 0.6 0.75

Sum 1 4.45 3.4 4.05

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Project Contracting• Proposal finalists are notified when the user has

determined that at least one of the proposals is acceptable.

• When a contractor has been selected, the recommendation is submitted to user top mgmt for approval.

• On approval, contract is awarded to the winner.

• If none of the proposals are acceptable or the feasibility studies reveal that the systems development process would be too costly, risky or time-consuming or have insufficient return then the project is terminated.

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Project Contracting• Contracting is ubiquitous in project management

• By contracting the work the user is not relinquishing control over the project.

• The contract should clearly specify the customer’s role in tracking progress & making trade-off decisions and identify those project areas where the customer has authority for decisions or supervision over contractor.

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Project Contracting

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Negotiating the contractDifferent contractual arrangements offer advantages to user and contractor, depending on nature of the project

• Fixed price – the price paid by the customer for the project is fixed regardless of the cost incurred by the contractor

• Cost-Plus – The price paid by the customer is based on the cost incurred in the project plus the contractor's fee.

• Incentive – The amount paid by the customer depends on the contractor’s performance. They can either get a bonus or penalty

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Business Case

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The Business Case• Definition of Business Case: an analysis of the organizational value, feasibility, costs, benefits, and risks of the project plan.

• Attributes of a Good Business Case

Details all possible impacts, costs, benefits

Clearly compares alternatives

Objectively includes all pertinent information

Systematic in terms of summarizing findings

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Process for Developing the Business Case

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Developing the Business Case

• Step 1: Select the Core Team with a goal of providing the following advantages:

Credibility

Alignment with organizational goals

Access to the real costs

Ownership

Agreement

Bridge building

• Core team should include managers, business specialists, users & IT specialists.

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Developing the Business Case• Step 2: In IT project mgmt methodology, the project’s overall goal and measure of success is referred as the project’s MOV. Define Measurable Organizational Value (MOV) the project’s overall goal

MOV must:

be measurable

provide value to the organization

be agreed upon

be verifiable

Aligning the MOV with the organizational strategy and goals.

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The IT Value ChainDrives

Drives

Supports

Supports

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Project Goal ?

• Install new hardware and software to improve our customer service to world class levels

• Respond to 95% of our customers’ inquiries within 90 seconds with less than 5% callbacks about the same problem.

versus

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A Really Good MOV

• Our goal is to land a man on the moon and return him safely by the end of the decade.

- John F. Kennedy

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Steps to develop MOV

MOV Step 1 - Identify the desired area of impact

Strategic

customer

financial

operational

social

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Steps to develop MOVMOV Step 2 - Identify the desired

value of the IT project by answering following questions on what does the organization want to do:

Better?... focus on quality

Faster?... focus on effectiveness

Cheaper?... focus on efficiency

Do more?...focus on growth

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Steps to develop MOVMOV Step 3 - Develop an

Appropriate Metric• provide target

• set expectations

• enable success/failure determination

• common metrics

Money ($ £ ¥)

Percentage (%)

Numeric Values

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Steps to develop MOVMOV Step 4 - Set a time frame for

Achieving MOV

MOV Step 5 - Verify and Get Agreement from the Project Stakeholders

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Steps to develop MOV

MOV Step 6 - Summarize MOV in a Clear, Concise Statement or Table.

Year MOV

1 20% return on investment

500 new customers


1,000 new customers


1,500 new customers

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Developing the Business Case• Step 3: Identify Alternatives

Base Case Alternative: It describes how the organization would perform if it maintained the status quo- i.e it did not pursue any of the options described in the business case.

Alternative Strategies

Change existing process sans IT investment

Adopt/Adapt systems from other organizational areas

Reengineer Existing System

Purchase off-the-shelf Applications package

Custom Build New Solution Ch

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Developing the Business Case• Step 4: Define Feasibility and Asses Risk

Economic feasibility

Technical feasibility

Organizational feasibility

Other feasibilities – legal & ethical

Risk focus on

Identification

Assessment

Response

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Developing the Business Case• Step 5: Define Total Cost of Ownership (TCO)- It generally refers to the total cost of acquiring, developing, maintaining and supporting the application system over its useful life

• TCO includes such costs as:

Direct or Up-front costs: Initial purchase price of all hardware, software etc.

Ongoing Costs: Salaries, training, upgrades, maintenance etc.

Indirect Costs: Initial lost of productivity, time lost by users when sys is down etc.

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Developing the Business Case• Step 6: Define Total Benefits of Ownership(TBO) –It must include all of the direct ongoing and indirect benefits associated with each proposed alternative

Increasing high-value work: Eg. spend less time on paper work

Improving accuracy and efficiency: Eg. Reducing errors, duplication etc.

Improving decision-making: Eg. Providing timely & accurate info.

Improving customer service: Eg. New products or services, faster or more reliable service etc.

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Developing the Business Case• Step 7: Analyze Alternatives using financial models and scoring models

Financial models focus on either profitability and/or cash flows.

Net cash can be +ve or –ve & is calculated by subtracting the cash outflows from the cash inflows.

Most commonly used cash flow models are as follows:

payback

Break-even

Return on investment

Net present value

Scoring

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Developing the Business Case1. Payback: It determines how long it will take

to recover the initial investment

Payback Period = Initial Investment

Net Cash Flow

= $100,000 = 5 years

$20,000

• It is useful for highlighting the risk of a particular investment because a riskier investment will have a longer payback period.

• It does not consider the time value of money or cash flows beyond the payback period.

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Developing the Business Case2. Break Even: Like payback, this method attempts

to determine the point at which a project would begin to recoup its original investment.

• This method is useful if a certain no of transactions allow the original investment to be recovered.

• Riskier projects have higher break even point

• Eg. If you spent $100,000 to create a website to sell golf putters that you manufacture. How many golf putters you will have to sell to break even if you sell each putter for $30? C

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If you sell a golf putter for $30.00 and it costs $25.00 to make, you have a profit margin of $5.00:

Breakeven Point = Initial Investment / Net Profit Margin

= $100,000 / $5.00

= 20,000 units

Materials (putter head, shaft, grip, etc.) $12.00

Labor (0.5 hours at $9.00/hr) $ 4.50

Overhead (rent, insurance, utilities,taxes, etc.)

$ 8.50

Total $25.00

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Developing the Business Case3. Return on Investment: It provides a measure of the

value expected or received from a particular alternative or project.

• It also acts as an indicator of a company’s financial performance

Project ROI =(total expected benefits – total expected costs)

total expected costs

= ($115,000 - $100,000)

$100,000

= 15%

• Eg. Lottery ticket

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4. Net Present Value: it focuses on time value of money as there is a cost associated with time when it comes to money.

• NPV does this by discounting streams of cash flows from a particular alternative or project returns in the future so that we can determine if investing the time, money & resources is worth the wait.

• Only a project or alternative with +ve NPV should be considered.

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NPV = -I0 + (Net Cash Flow / (1 + r)t)

Where:

I = Total Cost or Investment of the Project

r = discount rate

t = time period

Year 0 Year 1 Year 2 Year 3 Year 4

Total Cash Inflows $0 $150,000 $200,000 $250,000 $300,000

Total Cash Outflows $200,000 $85,000 $125,000 $150,000 $200,000

Net Cash Flow ($200,000) $65,000 $75,000 $100,000 $100,000

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Developing the Business Case• Discount rate: It is used to discount the net cash flows

• It is also called as cutoff rate or hurdle rate because it basically defines the organization’s required rate of return.

• In short, hurdle rate is the minimum acceptable return on an investment.

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Developing the Business Case Net Present Value

Time Period CalculationDiscounted Cash

Flow

Year 0 ($200,000) ($200,000)

Year 1 $65,000/(1 + .08)1 $60,185

Year 2 $75,000/(1 + .08)2 $64,300

Year 3 $100,000/(1 + .08)3 $79,383

Year 4 $100,000/(1 + .08)4 $73,503

Net Present Value (NPV) $77,371

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Developing the Business Case5. Scoring models: They provide a method for

comparing alternatives or projects based on a weighted score.

• Scoring models also allow for quantifying intangible benefits or for different alternatives using multiple criteria.

• Total score= wici

Where :wi=criterion weight, ci=criterion score, 0<=wi<=1

n

i=1

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CriterionWeight Alternative

AAlternative

BAlternative

C

Financial

ROI 15% 2 4 10

Payback 10% 3 5 10

NPV 15% 2 4 10

Organizational

Alignment with strategic objectives 10% 3 5 8

Likelihood of achieving project’s MOV

10% 2 6 9

Project

Availability of skilled team members 5% 5 5 4

Maintainability 5% 4 6 7

Time to develop 5% 5 7 6

Risk 5% 3 5 5

External

Customer satisfaction

10% 2 4 9

Increased market share

10% 2 5 8

Total Score 100% 2.65 4.85 8.50

Notes: Risk scores have a reverse scale – i.e., higher scores for risk imply lower levels of risk

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Developing the Business Case• Step 8: Propose and Support the Recommendation:

• Once the alternatives have been identified & analyzed, the last step is to recommend one of the options.

• The business case should be formalized in a professional-looking report.

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Business Case Template

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Project Selection and Approval• The IT Project Selection Process: Initial screening & then forwarded to decision making committee.

• The Project Selection Decision IT project must map to organization goals

IT project must provide verifiable MOV

Selection should be based on diverse measures such as

tangible and intangible costs and benefits

various levels throughout the organization

• Balanced Scorecard Approach introduced by Robert Kaplan & David Norton is widely used.

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Project Charter and Plan

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Project Charter• The 2nd phase of the PLC, develop the project charter & plan,

requires the planning, review & acceptance of another project deliverable before considerable time, resources & energy are committed

• Transition from strategic mindset to tactical mindset happens here.

• A no. of sub-plans to identify, coordinate, authorize, manage & control the project work happens here.

• It serves as an agreement or contract between the project sponsor and the project team

• It formally authorizes a project and gives specific authority to the project manager to apply organizational resources to the project tasks or activities. C

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Purpose of the Project Charter

• Document the project MOV

• Define project infrastructure

• Summarize details of project plan

• Define roles and responsibilities

• Show explicit commitment to project

• Set out project control mechanisms

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What Should be in a Project Charter?

1. Project Identification

2. Project Stakeholders

3. Project Description

4. Measurable Organizational Value (MOV)

5. Project Scope

6. Project Schedule

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What Should be in a Project Charter? – cont’d.7. Project Budget

8. Quality Issues

9. Resources

10. Assumptions & risks

11. Project administration

12. Acceptance & approval

13. References

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Project Charter Template

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Project Planning Framework

• A project plan attempts to answer the following questions:

What needs to be done?

Who will do the work?

When will they do the work?

How long will it take?

How much it will cost?

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• The MOV

• Define the Project’s Scope

Initiation

Planning

Definition

Verification

Change Control

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Project Planning Framework –cont’d.

• Subdivide the Project into Phases which are logical stages that organize the project work to reduce complexity and risk. Each phase has at least 1 deliverable. Eg. Business case.

• Tasks-is a specific activity or unit of work to be completed in a phase. Eg. Write a program, test links in web page

Sequence

Resources

Time

• Schedule and Budget-The Baseline Plan Ch

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The contents of a project plan

• Overview: This is short summary of the objectives & scope of project. It also contains a statement of the goals of project & their relationship to the firm’s objective, a description of managerial structure and list of major milestones

• Objectives or scope: It contains more detailed statement of general goals. It also includes profit & competitive aims as well as technical goals.

• General approach: This section describes both the technical & managerial approaches to the work.

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The contents of a project plan• Contractual aspects: This critical section includes a

complete list & description of all reporting requirements, customer supplied resources, liaison arrangements, advisory committees, project review & cancellation procedures, proprietary requirements, any specific mgmt agreements, technical deliverables, delivery schedules and a specific procedure for changing any of the above.

• Schedules: This section outlines the various schedules & lists all milestone events.

• Resources: There are 2 parts in this. 1st is the budget wherein both the capital & expense requirements are detailed by task. 2nd is the cost monitoring & control procedures. C

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The contents of a project plan• Personnel: this section lists the expected personnel

requirements of project. Special skills, type of training needed, possible recruiting problems, legal or policy restrictions, any other special requirements such as security clearances should be noted here.

• Risk mgmt plans: This covers potential problems as well as potential lucky breaks that could affect the project.

• Evaluation methods: This section contains a brief description of the procedure to be followed in monitoring, collecting, storing and evaluating the history of the project. C

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The Kick-Off Meeting

• Officially starts the work on the project

• Brings closure to the planning phase

• Communicates to all what the project is about

• Energizes stakeholders

• Engenders positive attitudes

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Project Scope Management

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Scope Management Plan• The processes & techniques for defining and managing scope

make up the scope management plan.

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Project Scope Initiation

1. Project Scope Planning

2. Scope Boundary

3. The Scope Statement

4. Out of Scope for this Project

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Project Scope Planning

Scope planning is a process for defining & documenting the project work.

A project’s scope defines all the work, activities & deliverables that the project team must provide in order for the project to achieve its MOV.

The scope management plan documents how the scope will be defined, verified and controlled as well as how the WBS will be defined and created.

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Scope Boundary• Defining the scope boundary is the 1st step to establishing what is and what is not part of the project work to be completed by the project team.

• Eg. Fence

• Having a clear & agreed upon definition of project MOV is critical for defining & managing the scope boundary.

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Scope Boundary

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The scope statement• The preliminary scope statement developed in the project charter can be used to create a more detailed scope statement that documents the project sponsor’s needs & expectations.

• This detailed scope statement is a way to define the scope boundary.

• Eg. We are outside consultants hired to develop an e-commerce application for a bank

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Sample Scope Statement – What’s within the scope boundary

1. Develop a proactive electronic commerce strategy that identifies the processes, products, and services to be delivered through the World Wide Web.

2. Develop an application system that supports all of the processes, products, and services identified in the electronic commerce strategy.

3. Integrate the application system with the bank’s existing enterprise resource planning system. C

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Sample Scope Statement – Work outside the scope boundary

1. Technology and organizational assessment of the current environment

2. Customer resource management and data mining components

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Project Scope Definition

• A project’s scope should also be defined in terms of deliverables that the team must provide.

• These deliverables can be divided into project-oriented and product-oriented deliverables

• A clear definition of the project’s deliverables sets unambiguous expectations & agreement among all of the project stakeholders.

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Project Scope Definition Project-Oriented deliverables or scope: It includes

such as the business case, project charter, & project plan and defines the work products of the various ITPM phases.

It also includes specific deliverables such as current systems study, Requirements definition, & the documented design of the IS.

Project-Oriented Scope Definition Tools

Deliverable Definition Table (DDT)

Deliverable Structure Chart (DSC)

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Deliverable Definition TableDeliverable Structure Standards Approval

NeededBy

Resources Required

Business Case

Document As defined in project methodology

Project Sponsor

Business Case team & Office Automation tools

Project charter & project plan


Project Sponsor

Project manager,

sponsor, & OA tools

Technology & Org. assessment


Project manager & Sponsor

Bank’s syst.

analyst, OA & case tools

Requirements

definition


Project manager

Syst. analyst programmer

Case & OA

User Interface

Prototype As defined in user interface guidelines

Project sponsor

System analyst, programmers, users, IDE

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Deliverable Structure Chart

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Project Scope Definition

Product-Oriented Scope

Product-Oriented Scope Definition Tools

Data Flow Diagrams (DFD)

Use Case Diagram

Joint Application development (JAD)

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Project Scope Verification Check List• MOV: Project’s MOV must be clearly defined & agreed

upon to avoid scope changes later in the project

• Deliverables: Are the deliverables tangible and verifiable? And do they support project MOV?

• Quality standards: Are controls in place to ensure that work was completed to meet specific standards

• Milestones: Milestones defined for each deliverable indicate that deliverable was completed, reviewed & accepted

• Review and acceptance : Both sides should review and accept project scope so that they are clear in their expectations

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Scope Change Control• Concerns

Scope grope: It is a metaphor that describes a project team’s inability to define project’s scope. It can be minimized with clearly defined MOV

Scope creep: Refers to increasing featurism once the scope of the project has been approved. It should be controlled as it will lengthen the schedule & lead to cost overruns

Scope leap: It suggests a fundamental & significant change to project scope. It can occur due to changes in environment, business and competitive make-up of industry. It may entail changing the MOV. C

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Scope Change Control ProceduresScope Change Request Form

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Scope Change Control ProceduresScope Change Request Log

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Benefits of Scope Control

• Keep project manager in control of project

• Allow project manager to control project’s schedule and budget

• Allow project team to stay focused and on track

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Scope Management Process

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The Work Breakdown Structure (WBS)• The WBS represents a logical decomposition of the work

to be performed and focuses on how the product, service, or result is naturally subdivided. It is an outline of what work is to be performed.

• Gregory T. Haugan (2002)

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Developing the WBS• The WBS Should Be Deliverable-Oriented

• The WBS Should Support the Project's MOV

Ensure WBS allows for the delivery of all the project’s deliverables as defined in project scope

100 percent rule

• The Level of Detail Should Support Planning and Control

• Developing the WBS Should Involve the People Who Will Be Doing the Work

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Developing the WBS• Develop work packages for each of the phases and

deliverables defined in the Deliverable Structure Chart (DSC)

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Work Breakdown Schedule

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Purpose of WBS

• To divide total project into small pieces, sometimes called work packages.

• Dividing the project into work packages makes it possible to prepare schedules and cost estimates and to assign management and task responsibility.

• The WBS must be checked by all project participants to ensure that no activity is missed.

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Work Package

• Work packages represent jobs of equal magnitude of effort and be of relatively small cost and short duration compared to that of the total project

• Concept of work package is central to project management-planning, organizing, directing, and controlling.

• Each work package represents either a work subcontract to be performed by outsiders or an “internal contract” for work to be performed by an inside functional unit

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Work Package

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Deliverables and Milestones

• Deliverables

Tangible, verifiable work products

Reports, presentations, prototypes, etc.

• Milestones

Significant events or achievements

Acceptance of deliverables or phase completion

Cruxes (proof of concepts)

Quality control

Keeps team focused Ch

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Work Breakdown Structure01

Project

01-01

Category

01-02

Category01-06

Category

01-01-100

Task

Work

Package

01-06-200

Task

01-06-700

Task

01-01-101

SubtaskWork package 01-06-701

Subtask

Work

package

Work

package

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General WBS formatWBS format outline given in next slide

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Work breakdown structure outlineof previous example/ diagram

Level 1 Level 2 Level 3

Task 1

Subtask 1.1

Work Package 1.1.1

Work Package 1.1.2

Work Package 1.1.3

Subtask 1.2

Work Package 1.2.1

Work Package 1.2.2

Work Package 1.2.3

Task 2

Subtask 2.1

Work Package 2.1.1

Work Package 2.1.2

Work Package 2.1.3

Chapter 5 Slides by Ms. Shree Jaswal 132

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