seem 5730 it management prof. k.f. wong. agenda introduction to project management lessons learnt on...

SEEM 5730 IT Management Prof. K.F. WONG

Agenda Introduction to Project Management Lessons Learnt on Managing IT Projects Prof. K.F. WONG2

What is the current business environment? Market situation Perfect information Hyper-competitive in nature Focus on time-to-market Breakdown of barriers of product/ service offerings Companies challenges Resource/ cost management Make wise decision to focus the resources (i.e. betting the trend) Maintain knowledge within the performing organization Quick response to the market and its competitors Prof. K.F. WONG4

Ways to sustain the business Choosing the right projects a new kind of strategic planning Keeping the best people within the organization Permanently linking strategies to projects Managing the project portfolio correctly Continuously improve knowledge within the organization Develop ways to measure success and failure of projects Unbiased resource allocation and utilization Prof. K.F. WONG5

Project Failure Statistics Roughly 40 % of all IT projects fail to meet business requirements. (TechRepublic Inc./ Gartner Group) 74 % of all projects fail, come in over budget or run past the original deadline... 28% of projects fail altogether. Every year, $75 billion is spent on failed projects in the U.S. (The Standish Group, 1998) 31.1 % of projects will be canceled before they ever get completed. (The Standish Group, June 1999) The percentage of IT projects that fail to meet objectives hovers near 50 percent. (Gartner Group, Project Management: A New Look for a New Economy, December 2000) Prof. K.F. WONG6

Pressure faced by senior management Is our project portfolio aligned with the business needs? Are we meeting our commitments? What will be the impact if we miss our next milestone? What program do we do first?Are we at risk of not achieving our fiscal year strategic initiatives? Can we take on this project? How long will it take? What will it cost? Is there an opportunity to finish early? Does the business unit know this? What is the #1 project in the department? What if Richard moves to another project? If only we had more budget & resources to do the work? The Project/ Program Management Challenge Prof. K.F. WONG7

A Project is :- A project is a temporary endeavour undertaken to create a unique product, service, or result. Finite. i.e. there is a definite end. Complex. involves a mixture of series and parallel activities with a significant interplay of human skills as well as resources of materials and facilities. Non-repetitive. a unique one time effort only. Prof. K.F. WONG8

Project Management Every detail from inception to completion needs to be managed. There are three main phases :- Management decision determines what the project is to be, its scope and limits. Project planning done in advance and during the project determines how the project is to be run. Project control performed while the project is running organises and guides activities towards the conclusion. Prof. K.F. WONG9

Project Management Processes Processes (IPECC) Initiating Planning Executing Controlling Closing Knowledge areas: Project integration Scope management Time management Cost management Quality management Human resources management Communications management Risk management Prof. K.F. WONG10

The Triple Constraint of Project Management Source: Kathy Schwalbe Information Technology Project Management Thomson, 2004 Prof. K.F. WONG11

Project Managers need to be able to : control the projects development. be aware of the problems that can occur need to be responsible for: documentation standards the people Ensure the system is consistent with its requirements. Prof. K.F. WONG12

Scope Statement Project Title: Date: Prepared by: Project Justification: Product Characteristics/Requirements: Summary of Project Deliverables: Project management-related deliverables: business case, Charter team contract, Work Breakdown Structure WBS schedule, cost baseline, Product-related deliverables: Project Success Criteria Prof. K.F. WONG13

Functional Specification Introduction Purpose of the document Scope Overview Business Context General Description Product Functions System Information User Characteristics Problem statement Objectives Constraints Functional Requirements Description Criticality Cost and schedule Risks Dependencies Interface Requirement User Interfaces Hardware Interfaces Network Interfaces Software Interfaces Performance Requirements Speed Memory non-functional attributes Security Compatibility Portability Reusability Extensibility Serviceability Maintainability Prof. K.F. WONG14

When it comes to decision Force Field Analysis Prof. K.F. WONG15

Force field analysis A method used to get a whole view of all the forces for or against a plan so that a decision can be made which takes into account all interests. a specialized method of weighing pros and cons. allows you to look at all the forces for or against the plan. helps you plan or reduce the impact of the opposing forces, and strengthen and reinforce the supporting forces. Prof. K.F. WONG16

Prof. K.F. WONG17

Project Plan 1.INTRODUCTION 1.1Purpose 1.2Objective 1.3Scope 1.4References 1.5Definitions, acronyms and abbreviations 2.PROJECT ORGANIZATION 2.1Project team 2.2Project Responsibilities 2.3Organization boundaries and interfaces 3.WORK BREAKDOWN, RESOURCE AND SCHEDULE 3.1Work breakdown Structure and Workload estimates 3.2Other Facilities and Resources 3.3Milestones and deliverables 3.4Task Dependencies 3.5Schedule 3.6Methods, tools and techniques 3.7Project support functions 4.PROJECT MANAGEMENT 4.1Assumptions, dependencies and constraints 4.2Risk management 4.3Quality assurance 4.4Progress reporting Prof. K.F. WONG18

Conflict Intensity Over the Life of a Project Prof. K.F. WONG19

Gantt Charts Gantt charts provide a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar format Symbols include: A black diamond: milestones or significant events on a project with zero duration Thick black bars: summary tasks Lighter horizontal bars: tasks Arrows: dependencies between tasks Prof. K.F. WONG20

Gantt Chart for Launching a Software Project Prof. K.F. WONG21

Techniques for Shortening a Project Schedule Shortening durations of critical tasks for adding more resources or changing their scope Crashing tasks by obtaining the greatest amount of schedule compression for the least incremental cost Fast tracking tasks by doing them in parallel or overlapping them Prof. K.F. WONG22

Shortening Project Schedules Overlapped Tasks or fast tracking Shortened duration thru crashing Original schedule Prof. K.F. WONG23

Program Evaluation and Review Technique (PERT) PERT is a network analysis technique used to estimate project duration when there is a high degree of uncertainty about the individual activity duration estimates PERT uses probabilistic time estimates based on using optimistic, most likely, and pessimistic estimates of activity durations PERT weighted average formula: Optimistic Estimate + (4 times Most Likely Estimate) + Pessimistic Estimate divided by 6 Prof. K.F. WONG24

Example If you were installing a new web portal infrastructure, you might have a task to make sure that portal is secure from hackers. Your problem is estimating the duration to complete the task called "conduct security testing and resolve any findings on a ten-server Solaris cluster". You or your system architect determine: At best, you need 24 man-hours Most likely you need 36 man-hours And if everything goes wrong, you need 51 man-hours Your PERT estimating equation for that task would be: (24 + 4(36) + 51)/6 = 36.5 Your weighted average is 36.5 hours to complete that task activity. Of course, you still need to figure out what sort of skills you need to perform each of those man-hours on this task activity, but that's a resource management issue rather than an estimating concern. Source: http://www.bluejeansplace.com/PERT-EstimatingFormula.html Prof. K.F. WONG25

Controlling Changes to the Project Schedule Perform reality checks on schedules Allow for contingencies Dont plan for everyone to work at 100% capacity all the time Hold progress meetings with stakeholders and be clear and honest in communicating schedule issues Prof. K.F. WONG26

Standard Metrics for Project Progress/ Reporting CPISPI > 1Under-budgetAhead < 1Over-budgetDelay Prof. K.F. WONG 27

Sample of identified risks Prof. K.F. WONG28

Project Management Failure Warning Signals WARNING SIGN: No PERT estimate completed prior to giving the price quotation to the customer WARNING SIGN: Heavy discounting by sales or executives to get the project with no outside (read no PM) validation WARNING SIGN: Sales representative gives you a blank look, argues, walks away or outright refuses when you ask for his calculations which support his price WARNING SIGN: "Just do it" or "Just get it done" is heard on a frequent occasion WARNING SIGN: Someone's cell phone bill goes higher each month as the project progresses WARNING SIGN: Overemphasis on producing or updating Gantt charts and other illustrations; but little emphasis on other PMBOK tools like risk assessments WARNING SIGN: Version after version after version of briefings are created to communicate project information rather than just presenting a straight-forward business problem and solution. Prof. K.F. WONG29

Prof. K.F. WONG 30

The Two Cases Case 1Case 2 CompanyA mainland China provincial SOE power company that has branches in 18 cities A global financial institution that has presence in 10 countries across the region Project Objective A provincial BRP and ERP implementation Regional rollout of ERP implementation Original duration 22 months18 months Original budget USD 10 millionsUSD 3 millions Two cases on regional ERP (Enterprise Resources Planning) implementation Knowledge areas: - Integration Management- Scope management - Time management- Cost management - Quality management- Human resources management - Communications management- Risk management Prof. K.F. WONG31

Case 1 Project Details Phase 1Business Process Re-engineering (BPR)4 months Phase 2AERP Analysis and Design4 months Phase 2BERP Pilot Implementation in Head Office5 months Phase 3ERP Provincial rollout to 18 cities9 months Company A mainland China provincial SOE power company that has branches in 18 cities Objective The company thinks that it need a new ERP solution Scope Redesign and Automation - HR, Finance and Supply Chain Duration Complete the implementation within 2 years Prof. K.F. WONG32

Case 1 Project Details Project Team and Implementation Partners The project team mainly from internal IT department - has no ERP experience and no in-depth project management knowledge Two contractors were engaged Prime and Sub Prime contractor Local vendor with solid experience in process design for power companies but has no ERP implementation experience. This vendor had other engagement with the company before Sub contractor An international well-known ERP implementer A PM from the prime contractor was appointed as the program manager for the project & PM from the subcontractor acted as deputy program manager Subcontractor was responsible for analysis and design Prime contractor was to assist in the customization and configuration work Prof. K.F. WONG33

Case 1 How did the project go? BPR phase (4 months) Prime and sub contractors shared difference views on how the future processes should be. Finally, the prime contractor proposed processes were used Analysis and Design phase (4 months) Subcontractor identified many customizations has to be made during the analysis phase Prime contractor convinced the Steering Committee that they are capable of taking up all the customizations development and the rest of the implementation After the detailed design was done, the subcontractor was being kicked out and prime contractor took up the whole implementation Prof. K.F. WONG34

Case 1 How did the project go? Pilot implementation (5 months) Lost control of the implementation Took 12 months instead of 5 months Negative feedback from users after pilot go-live Full Rollout (9 months) Prime contractor was finally kicked out & another implementer was engaged It took the new implementer another 6 months to revamp the system. The provincial rollout which took another 12 months (instead of 9 months) was another failure. The total project is USD 6 millions more than the original USD 10 millions budget After the system full rollout for 2 years, the company has started to look for another ERP system to replace this one Prof. K.F. WONG35

Case 1 Lesson Learnt Knowledge Area Scope Management No formal and specific project objectives, scope and plan Lack of change control and approval processes for scope change Time Management Project schedule is based on senior management communicated timeline Cost Management No cost control mechanism in place on undefined scope Quality Management Lack of quality control on customization development Human Resource Management Incompetent implementation partner Communications Management Lack of regular monitoring and control No regular status update to stakeholders Risk Management No risk identification and management sense Lack of skills and proven approach to risk management. Integration Management Conflict of interest created integration issues Prof. K.F. WONG36

Case 2 Project Details Phase 1 Planning and Common Process Design 3 months Phase 2AERP Analysis and Design3 months Phase 2BERP Pilot Implementation4 months Phase 2CReview and fine-tuning system processes2 months Phase 3 ERP Regional rollout to all other 10 countries 6 months Company A global financial institution that has presence in 10 countries across the Asia/Pacific region Objective The companys regional office has committed that one of the top IT priorities for the next 18 24 months was to consolidate the HR systems across the Asia Pacific region Scope Develop a common set of processes that can be used across region and a new ERP system needed to be implemented to support this new set of processes Duration Complete the implementation within 18 24 months Prof. K.F. WONG37

Case 2 Project Details Management Support The project team got the buy-in from regional and business units senior management and HR team on the implementation. Project Team and Implementation Partners A well known ERP vendor was engaged during the Planning and common process design stage The project team who have extensive experienced in the ERP implementation were responsible for the implementation Project manager has experience in both successful and unsuccessful ERP implementation Project Management Methodology The company has its own Project Management Methodology (adapted from PRINCE2 and PMP) The in-house project team members are familiar with all phases, tasks, templates and tools of the PM methodology Prof. K.F. WONG38

Case 2 How did the project go? Planning (3 months) The project team spent considerable amount of time in planning and developing the common process design. User representatives from all business units were heavily involved through the whole process The companys PM methodology was communicated to users in great details Risk Assessment was done during the planning phase Analysis and Design (3 months) All business units fully understand that its a regional system that they have to contribute as much as possible and also adopt the final processes It was agreed that customization should be kept to a minimal Prof. K.F. WONG39

Case 2 How did the project go? Pilot Implementation (4 months) India was selected as the pilot site for the implementation and local implementation partners was engaged to reduce the overall cost The pilot implementation was completed in 3 months (instead of 4 months) Review and fine-tuning process (2 months) Walkthrough sessions were organized for user representatives. They were very involved in the review process and provided very positive feedback. Full Regional Rollout (6 months) Regional rollout to all other 10 countries within the following 5 months The project cost is USD 0.5 millions less than what was original budgeted (USD 3 millions) Prof. K.F. WONG40

Case 2 Lesson Learnt Knowledge Area Scope Management Clearly defined project objectives, scope and plan Proven change control and approval processes for scope change Time Management Project schedule and tasks are based on past similar project experience. Cost ManagementProven cost control mechanism in place on defined scope Quality Management Review sessions were organized to ensure the processes developed were up to standard and met users requirements Human Resource Management Competent project team and implementation partner Communications Management Regular monitoring and control and status update to stakeholders Risk ManagementRisk assessment was done prior to the implementation. All potential risk areas were monitored closely to avoid risk occurrence. Integration Management Strong management support Prof. K.F. WONG41

Summary Case 1Case 2 CompanyA mainland China provincial SOE power company that have branches in 18 cities A global financial institution that has presence in 10 countries across the region Project Objective A provincial BRP and ERP implementation Regional rollout of ERP implementation Original duration 22 months => 38 months18 months => 16 months Original budgetUSD 10 millions => More than USD 16 millions USD 3 millions => USD 2.5 millions Critical Success Factors for ERP Implementation Strong management support Manage your stakeholders expectation Communicate and apply a project management methodology Build a competent in-house team Engage vendor who really have expertise and experience

Q & A Prof. K.F. WONG43

Acknowledgement The content of this set of PowerPoint slides is provided by International Association of Project & Program Management (IAPP) Thanks are due to Sally Ng and Kim Leong Prof. K.F. WONG44

seem 5730 it management prof. k.f. wong. agenda introduction to project management lessons learnt on...

Documents

project planning

project portfolio

project control

project management lessons

project failure statistics

management decision

senior management

wong5 slide