Information Technology Project Management

Presented by Goutama Bachtiar 2008E: goutama@gmail.com | T: @goudotmobi

Agenda

Scope Management Time Management Cost Management Quality Management Human Resources Management Communication Management Risk Management Contracts & Procurement Management Project Integration & Professional

Responsibility

Scope Management

Objectives & ChallengesProject SelectionProject JustificationProject CharterScope StatementScope Management Plan

Scope Management

Objectives Decide criteria to select projects Setting up process to select projects Authorize the project & project manager to manage via

project charter

ChallengesProject Manager (PM) needs to: Ensure a scope statement is created Ensure everyone understands main objectives & deliverables Ensure everyone understands constraints & assumptions Ensure scope is managed in a standard & consistent fashion

Project Selection

Using Project Selection Matrix The matrix based on Project Selection Criteria Elements:

Financial return Effect on employees/alignment with corporate

culture Technical advancement/innovation Market value/share Public perception Alignment/advancement of corporate strategy

Project Selection (cont’d)

Project Justification Criteria Select 5 to 7 main criteria to justify the projects Assign a weighting factor to each criterion based on importance For each criterion, select the benefit measurement to use Create the list of all proposed projects A written business case for informing project selection committee Put projects in a matrix & rate each project based on method selected Multiply weighting factor to each rating received Eliminate any projects based on any minimum standards /thresholds

established prior to ranking Rank remaining projects Select projects to proceed from ranking Make sure document justifications for each project selected (project

charter, scope statement, business case, or other supporting docs)

Project Charter

Official written acknowledgment & recognition that a project exists.

Issued by senior management external to the project

Gives the PM authority to assign resources Elements

Product description & project overview Project goals & objectives Project deliverables Business case/business need Resource & cost estimates Feasibility study (optional)

Project Charter (cont’d)

Steps to write Interview sponsor, product managers & any leaders to

understand product & purpose Ask sponsor & other stakeholders about main goals & objectives Ask sponsor & other stakeholders about tangible deliverables Collect business case for the project & attach it to the plan Estimate resource needs & costs Write the project charter with all gathered info Describe needed authority to PM Ask sponsor or a senior leader to review & change the charter

as needed, have it signed & distributed to involved parties Have a meeting to ensure concurrence with the charter for all

executives & identified team members

Scope Statement

Elements Project justification (business need) Project product Requirements/Specifications Project deliverables (WBS) Project objectives (quantifiable criteria) Assumptions Cost & time estimates Constraints

Scope Statement (cont’d)

Steps to write Review project charter for resued any items Write a brief general statement about project purpose Include a project justification Rewrite/use a product/service description Create list of major deliverables & high-level WBS to show scope of work List the objective(s) or goals List assumptions List constraints Include requirements in scope statement or produce them in another doc Include major roles & responsibilities needed Write the scope statement doc & deliver it to stakeholders for approval Have a meeting to review the scope with team & stakeholders

Scope Management Plan

Steps to create Review scope statement & make informed judgments on

stability Provide in plan probability of scope changes & frequency Describe how scope changes will impact the project Document scope change process▪ General info about change (date, brief description & requestor)▪ Business, technical, or other need for the change▪ Describe the resulting analysis of the change▪ Socialize levels of review & approval for the change and communicate

change to everyone ▪ Integrate change into the scope; managed & tracked as part of project

plan Communicate scope management plan & scope change

process to team members

Time Management

Work Breakdown Structure (WBS) Activity Sequencing Estimating Activity Duration Critical Path Method Program Evaluation & Review Technique

(PERT) Duration Compression GANTT Chart Controlling Schedule Changes

Work Breakdown Structure

A tool and technique to decompose project scope components into smaller and more manageable components/work packages

Purposes Identify project major deliverables Create a common understanding of deliverables

Composition Project name/major task,

subcomponents/higher level tasks (summary tasks) and work packages (work task)

Work Breakdown Structure (cont’d)

Steps to Create Determine format for WBS (tree/outline) Determine appropriate levels of decomposition Determine organization of WBS levels Label level one the project name. At level two, decompose into a set of deliverables For each subsequent level, decompose the level above into

smaller components Create the lowest level of decomposition (work package)

It should be small enough to easily assign to one person to complete.

Create a unique numerical identifier for each component on WBS

Activity Sequencing

Components Activity List

Lowest level of work on WBS Dependencies

Determining dependencies of the work to be done▪ Mandatory dependencies: Inherent in the work to be done▪ Discretionary dependencies: Created by the project team▪ External dependencies: Come from outside of the project

Diagramming MethodsPrecedence diagramming method (PDM)/Activity on node (AON) and Arrow diagramming method (ADM)

Estimating Activity Duration

Tools and techniques Expert judgment Analogous estimating (top-down estimating) Quantitatively based durations Reserve time (contingency)

Steps to Create Determine if WBS needs to be decomposed into smaller activities Understand resource requirements for each activity Determine whether best tools & techniques Determine proper duration estimate for each activity Analyze each activity for schedule risk Determine type of reserve time (work unit/percentage) Add reserve time to each activity where appropriate

Critical Path Method

The longest path through the project and has no float (slack time)

Should be managed If a task on critical path slips, end date slips Use a mathematical analysis tool & technique of the

schedule development process called Critical Path Method (CPM)

CPM types Forward pass: Calculates early start & early finish for each task Backward pass: Calculates late start & late finish for each task Float: Subtracts early start from late start or subtracting early

finish from late finish

PERT

Another mathematical analysis tool and technique of the schedule development process

Focuses on determining project’s duration Uses expected values/weighted averages Relies heavily on mathematics of probability & statistical

bell curves Provide more confidence to duration estimates Applied to every task, to certain risky tasks, or to critical

path. To Calculate PERT

Optimistic: If everything goes well, how long the task will take Pessimistic: If everything goes poorly, how long the task will

take Most likely: Original estimate provided(best guess)

Duration Compression

As schedule development tool & technique First is crashing, second is fast tracking Crashing

An analysis method looks at trade-offs between schedule & cost.

Analyze critical path & determine to shorten it. May fail or success; affect the budget

Fast Tracking An analysis method to reduce duration of projects To have tasks worked in parallel than sequentially Look for opportunities on the critical path

Gantt Chart

Known as a bar chart Graphic display of schedule related information Depicts the project elements down left side of chart

(Y axis) & a time scale across top or bottom of chart (X axis).

Tasks with a duration are shown as date-placed horizontal bars

Most project managers use a project management software system for creating this chart

To create: determine time scale to display the info; determine level of tasks to display; draw chart & place tasks

Controlling Schedule Changes Steps to Control

Plan for change▪ Who can request, approve and review the change▪ Impact to the schedule▪ Specific form for request▪ Reason for the change▪ Advantages/disadvantages for allowing the change▪ If it is approved or denied, how to update the schedule, how to notify team &

requestor▪ How to log & track change

Determine if schedule has changed▪ Planned on doing▪ Status of existing process▪ Variance between the two

Manage actual changes on the project▪ Analysis, decisions, and corrective actions regarding changes and variances will

help manage to a successful completion

Cost Management

Foundation for creating and controlling the costs of a project

Steps to Manage Resource Planning Types of Cost Estimates Estimating Costs Creating a Budget & Baseline Controlling Changes

Resource Planning

Resource Planning A planning process done to establish the

costs of a project Determine what resources needed on

project Determine how many of each type of

needed resource Three commonly known types of resources:

people, equipment, and materials

Cost Estimating

Order of Magnitude Estimates▪ Done at the very beginning ▪ Derived from information for similar or previous projects▪ Magnitude estimate fall between–25% and +75% of project actual

cost Budget Estimates

▪ Created during the Cost Budgeting process▪ Cover all of the costs of a project (personnel, equipment, materials) ▪ More precise, falling in the range of –10% to +25% of project actual

cost Definitive Estimates

▪ The most detailed & most precise ▪ Derived from an expert /project team looking at a specific task and the

duration▪ Falling in the range of –5% to +10% of project actual cost

Cost Estimating (cont’d)

Methods ▪ Analogous estimating ▪ Uses expert judgment and information from previous projects ▪ Top-down estimating to create an order of magnitude estimate▪ Very subjective, not very accurate

▪ Parametric modeling ▪ Determine what elements should be placed in a mathematical model ▪ Can be used to create any of the three types of estimates

▪ Bottom-up Estimating ▪ Most precise method ▪ Estimating each individual task separately▪ Look at the effort required to complete a task, not the duration▪ To create definitive estimates

Determine the unit of measure Create the estimates

Cost Budgeting

Inputs Cost estimates (analogous, parametric modeling, bottom-up)

May be very general/specific WBS

Determine which tasks will have costs associated with them Project schedule

Created in the Schedule Development processProvides element of time to your budget

Determining Budget Cost Estimating techniques (resource costs, material, equipment) Prepare managerial reserves (unpredict situation) Generate total project budget

Creating a Cost Baseline A copy of the budget prior to work beginning on the project Kept for comparison, analysis & future forecasts (planned value (PV)) Does not include the managerial reserve

Controlling Changes

The Cost Control process is very similar to the Schedule Control process Differentiation is an output called estimate at completion (EAC) EAC is a calculation done at any point that forecasts likely final costs of project To calculate estimate

EAC = AC + ETC Determine the estimate to completion (ETC). ETC is the amount of money needed to complete the projectActual cost (AC) to determine the estimate at completion

EAC = (AC + BAC) – EV Total budget for the project (BAC) and add it to the actual cost (AC)Subtract the work accomplished and the authorized budget for the work (EV)

EAC = (AC + (BAC – EV) ÷ CPI) Take work accomplished & authorized budget for work (EV)Subtract them by the total budgets for project (BAC)Add that figure to the actual monies spent to date (AC) Divide that figure by the cost performance index (CPI)

Quality Management

Quality Planning Tools Calculating the Cost of Quality Quality Assurance Quality Control

Quality Planning Tools

Inputs Quality policy

A statement regarding company’s beliefs around qualityA guiding light for people working on project

Scope statement To verify project deliverables

Product description Information about the desired level of quality that assist in quality management planning

Standards and regulations Outputs

Quality management plan. Created by project manager & project team Detail all quality planning activities & who will perform. Essence: quality will be ensured & how to follow the quality policy

Calculating Cost of Quality

Cost of quality is the total amount of money required to ensure quality 3 different types of costs

Prevention costsCover all activities to keep errors out of process in creating the productIncluding all quality planning, product validation and process validation activities

Appraisal costs Cover all activities to keep errors out of customer’s handsIncluding quality audits, evaluations, calibration, inspections & field testing

Failure costsIncluding all costs incurred due to product failure (internal & external)Internal failures : rework costs, product repairs, scrap & additional purchase for inventory External failures : happened after product leaves organizationIncluding warranties, complaint handling, product recalls, legal suits, and harm done to reputation

Computing cost of quality: adding the work effort estimate for each activity that is preventative or appraisal in nature to the costs incurred because of any type of failure (internal or external)

Quality Assurance

Process focuses on making certain planned quality will be met

2 sets of tools & techniques Quality planning tools: benchmarking, cost

benefit analysis, flowcharting, design of experiments, & cost of quality

Quality audit: A review of the quality management activities; In-depth review will produce findings to identify lessons learned for improvement

Quality Assurance (cont’d)

Components of Quality Audit▪ Determine the auditor (Internal vs External) ▪ Time frames to audit

Initial assessment Conducted at the end of planning process & before project executionEvaluate planned quality assurance workCreates a quality baseline for project planning

Quality progress review Planned at regular intervals/key milestones during project executionEvaluating if the outlined quality activities performedInspect project quality processes & determine if they are sound

Quality completion review Done at the end of the project & should recap the quality assurance effectiveness in light of final project results

▪ Quality audit process Include a review log that identifies points that will be reviewed during the auditThe reviewer should receive relevant materials (product description, quality policy, project schedule, status reports) Outcome: suggested actions for enhancement

Quality Control A technical process on product quality Tools and techniques

Inspection Review/verify product quality; Done on a single component/part/entire product

Control chart Graphic display shows measurements of a specific process over timeShows an upper control limit, a lower control & middle line

Statistical sampling Gathering a subset of the total set of units Randomly selecting items to be inspected or reviewed

Flowcharting Determine how problems occur

Trend analysis A set of mathematical computations to determine future outcome

Pareto diagram/Histogram Rank order problems from larger to smallestMajority of defects caused by a few problems (the 80/20 rule)

Human Resource Management

Staffing management plan

Inputs for a staffing management plan

Contents of a staffing management plan

Staffing Management Plan

Document project team how to assign human resources, what to work on, and when to depart from the project

Foundation to manage human resources during the project

General vs very detailed

Inputs for Staffing Management Plan

Project interfaces Organizational: coordinating project work across multiple vendors, departments, or bothTechnical: The way work of project must be doneInterpersonal: Relationships among all personnel

Staffing requirements Types of resources used on project tasksA subset of created resource plans Describes types of required competencies for each resource type

Constraints Factors that limit team’s ability to use resourcesCan be an organizational rules, team preferences, organizational structures, union agreements

Contents of Staffing Management Plan

Organization charts Graphical depiction of project team hierarchyTo depict reporting relationships of team members w/ PMResource assignment matrix (RAM) A diagram merges an organization breakdown structure & WBS

How assignments are made A section on assignments includes methodology for assigning team members to specific tasks

Roles and responsibilities A roles and responsibilities matrix would include each team member or resource grouping & a list of their responsibilities

Attrition management Cover how key personnel & team members are replacedHow all project personnel will be reassigned at end of project

Communication Management Understanding Your Stakeholders

Stakeholder is anyone positively or negatively impacted by the project; individuals and organizations

Including project manager, sponsor, team members, customers, organization performing the work, functional managers providing team members, operations, and others

Communicating with the Team Effectively communicate with the team Need to understand complexity of communication Need to resolve differences using conflict resolution methods.

Deciding on Information Distribution Decide on what to distribute and how to distribute

Creating a Communications Plan Describe types & method to distribute communication Describe strategy & tactics to communicate the plan Create a communication matrix

Communication Management (cont’d)

Performance Reporting Communicate status and progress Provide the executives objective measurements Measure progress based on cost, schedule, and

quality (performance) Tools: Performance reviews, Variance analysis,

Trend analysis, Earned value analysis Project Closing

Closing a phase/project, not just closing the project down

Risk Management

A project management process that helps fend off potential damaging events and identify opportunities for the project

Steps Identifying Risks Analysis Methods Types of Risk Responses Creating a Risk Response Plan

Identifying Risks

Major Risks Technical, quality, or performance

Major technical complexity/new technology Project management

Undeveloped project management methodology, inexperienced project manager, or lack of training

Organizational Frequent changes in management, culture that does not support the project, downsizing, or a project that does not fit into the overall strategy can cause many risks

External Legal changes, government regulations, market changes, changes in political influences

Analysis Method

QualitativeProcess to determine risk probability & impact

QuantitativeMore detailed & objective than QualitativeTools are Interviewing (PERT & probability distributions), Sensitivity analysis, SimulationDecision tree analysis & expected value

Types of Risk Responses

Avoidance Overcome risk event by trying to stray away from or eliminate it altogether

Transference Transfer risk responsibility to someone else

Mitigation Reduce risk probability/impact to project/objectives

Acceptance Take consequences if risk is occurred

Contingency planning A plan of action if risk event occursMight have decided to accept riskPlan to deal when happens

Creating a Risk Response Plan Need to set up a documented and living plan

for dealing with the risks Possible items included

Risks & their categories Owner Response types Actual response steps to take & response budget Contingency plan & possible contingency actions New risks identified based on risk response plans

Contracts Management

A project management process to perform only if procuring services or goods from someone outside of your organization

First decide on the type of contract wanted for project

Have a plan for procuring and managing contracts Create a statement of work (SOW) Document evaluation criteria to objectively select

vendors Create contract to manage status and change and

handle disputes

Contracts Management (cont’d)

Basic contract types Fixed price/lump sum

Predetermined fee for goods/services agreed on

Cost reimbursableSet incentives/penalties in addition to fixed priceFloating price contract based on costs the contractor incurs

Procurement Management

Creating a Procurement Management Plan

Creating a Statement of Work Evaluating and Selecting the Vendor Creating the Contract

Procurement Management Plan A plan on how to manage processes and

standards for contracts & vendors How to manage vendor solicitations (documents

& evaluation criteria) How to obtain contract vendors How to evaluate proposals & make final vendor

selection How to negotiate contracts How to manage & administer project’s contracts How to manage procurement management items

Statement of Work

Written to understand expectations of requested work

Patterns Objectives Product/Service Description Required Deliverables Requirements/Specifications Assumption & constraints Time estimate

Statement of Work (cont’d) Elements

Roles and responsibilities Security Location of work Milestones/deliverables Quantities Vendor payments Progress reporting Testing Quality

Evaluating & Selecting the Vendor

Does vendor demonstrate the best value, lowest price, or other price comparison advantage?

Make sure distinguish what is more important, and evaluate this for the overall life cycle of the project

Does vendor demonstrate an understanding of expectations of product & service, as well as how to expect vendor to work during the project?

Does vendor clearly demonstrate ability to carry out technical/operational processes needed to perform the work? Judge this on references, previous performance, skill sets of employees within organization assigned to project, and any awards/technical achievements vendor can demonstrate.

Will project team be able to work with the vendor management team?

Can vendor fulfill obligations of performing work based on the vendor’s financial capabilities?

Creating the Contract

Start by using templates of organization’s contracts /previous contracts as a basis

Collecting requirements to include in the contract, Working with lawyers and procurement

department to put contract together Include following details

Definitions Define all technical & others terms particular to the contract

Scope/statement of work Expected work description/work product from vendor

Creating the Contract (cont’d)

Roles and responsibilities Description of who does, approves work, administers contract & manages processes

Technical specifications and deliverables Provides specific measurements, specifications & other technical requirements

Interpretation of requirements Gives order of precedence for project requirements

Schedule States milestones or deliverables expected from vendor

Quality assurance/control Describes inspections/audits expected

Warranty/guarantee How long product is expected to last Include express warranties for equipment, workmanship, performance/process & design

Creating the Contract (cont’d) Contract administration

Describes processes, time frames, escalations for contract administration

Price and terms of payment Price information & a schedule of invoicing & payments

Laws, regulations, and taxesAny legal regulations specific to state/project

Provisions General and special terms and conditions negotiated with the vendor

Provisions for early termination How to dissolve contract & distribute payments

Creating the Contract (cont’d) Liabilities and insurance

Liability if the project or product is disrupted, is delayed, or fails

Confidentiality, privacy, and security Describes confidentiality requirements

Employee recruiting Provisions protecting raiding each other’s employees for certain period of time

DisputesEscalations, arbitration & other ways to settle disputes

Contract completionCover several SOWs, or may be extended for new workClosure should also center on formal acceptance of all deliverables /contract

Project Integration

Overarching processes & concepts in project management

Project plan Development takes all info in previous planning

processes Integrates it into one comprehensive document Serve as a guide during project execution and control. Has the formal approval of the project stakeholders

8 knowledge areas: scope planning, schedule development, cost budgeting, quality planning, staff acquisition, communications & risk management & procurement planning

Project Integration (cont’d) Components

Project charter The formal authorization to start a project

Scope statement Work to be done to deliver product of the project

Work breakdown structure A tool and technique to decompose project scope components into smaller and more manageable components

Project schedule Include all of the major milestones and deliverables

Project Integration (cont’d)

Resource assignments Resource assignments need to be included in the project plan

Project costsIncluding magnitude estimates, budget estimates, and work estimates

Risks Will be updated as new risks are identified, quantified, and risk responses are created

Other management plans Including Scope management plan and quality management plan

Project Integration (cont’d)

Project Execution Project Change Control Project Organizational Structure

Project Execution

DefinitionPart of integration management knowledge area

Tools & techniques General management skills

Communication, managing, and team development skills Product skills and knowledge

Monitor level of expertise, train & retrain team accordingly Work authorization system (WAS)

System to control sequence of tasks Status review meetings

Meeting conducted to examine project progress Project management information systems (PMIS)

Manual/Mechanized tool to helps PM collect, analyze, & integrate project info

Project Change Control

How to Control: How to request & can request a change How to document System to record and archive changes How to analyze & review change How to make & prioritize change How & Who to approve the request Manage change within team & configuration control

board How to implement if approved How to communicate changes How to monitor project

Organizational Structure

Projectized organizations Organized around project managementProvide complete authority to PM and provide administrative supportFull-Time Personnel

Functional organizationsEstablished to perform certain functions (sales, marketing, or accounting)

Matrix OrganizationsUse functional & projectized organizations3 levels of progression: weak matrix, balanced matrix, and strong matrix

Professional Responsibility

Work ethically, with regard for customer fairness, and with the latest project management knowledge

Code of conduct Adherence (supporting it and sharing it with others, acting

ethically) Disclosing conflict of interest/impropriety to customers Advertising qualifications truthfully Complying with applicable laws Respecting intellectual property Providing accurate cost & service estimates & expected results Sticking to & satisfying scope of objectives Protecting confidential information Refraining from taking gifts or payments for personal gain

Recommended Books

A Guide to the Project Management Body of Knowledge, Third Edition (PMBOK Guides) by Project Management Institute, USA, 2004, 140p

Information Technology Project Management, Reprint (with Microsoft Project 2007) by Kathy Schwalbe, Thomson Learning, Canada, 2000, 469p

Integrated Project Management by K.C. Chan, Peter Ong, R. Eko Indrajit, Andi Publisher, Indonesia, 212p

Training Lead

LinkedIn: www.linkedin.com/in/goutama

Email: goutama@gmail.comGoogle+: www.gplus.to/goudotmobi

Skype: goudotinfoTwitter: @goudotmobi

Q & A

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