Apm Merge Complete
Apm Merge Complete
Apm Merge Complete
BEEN MARKED
ABSENT
Project Management
Learning Objectives
• Time
• Cost
• Scope
Manage these or they will
manage you!
Defining Project
Management
• The application of knowledge, skills, tools
and techniques to project activities to
meet project requirements
5. Detailed requirements
6. Realistic schedule
• Communication skills
• Interpersonal skills
The project manager makes
things happen!
Learning Objectives
or
…Duh?!?
• Be proactive
• Invite feedback
MANAGE
Manage
• Ensure the system design reflects
sound planning
Successful project
management is delivering a
quality product that meets the
customer’s requirements within
time, scope, and budget.
PM Triple Constraints
• Time
• Cost
• Scope
Manage these or they will
manage you!
Project Management Potholes
Project Management
Potholes
• Is it a must?
• Can the customer/user do the job without it?
• Does it contribute to the viability of the
system?
• Does it add value as a feature/function to the
system?
• Is it worth the additional cost?
Keeping Control of the Budget
Budget/Cost Management
Report?
What report?
What is a report?
Documentation….duh…
Project Management
Reporting
Retroactive
Approvals
Summary
PLANNING
THE
PROJECT
After attending this chapter you will be able to understand
Deliverables
Task Deliverables
SCOPE
QUALITY
COST TIME
The interrelationship among these
criteria varies.
Mind-mapping approach:
– Write down tasks in a non-linear format and then create the
WBS structure
Mind-Mapping Approach
WBS Chart EXAMPLE
WBS Outline EXAMPLE
0.0 Retail Web Site
1.0 Project Management
2.0 Requirements Gathering
3.0 Analysis & Design
4.0 Site Software Development
4.1 HTML Design and Creation
4.2 Backend Software
4.2.1 Database Implementation
4.2.2 Middleware Development
4.2.3 Security Subsystems
4.2.4 Catalog Engine
4.2.5 Transaction Processing
4.3 Graphics and Interface
4.4 Content Creation
5.0 Testing and Production
WBS –Basis of Many Things
•Network scheduling
•Costing
•Risk analysis
•Organizational structure
•Control
•Measurement
Difference between
OBS & WBS
SITUATION:
You are driving a car and have just had
a “blow-out”. Your problem/objective is to
FIX THE FLAT (change the tire) and
continue on your journey safely. Given
the individual tasks/steps listed below,
develop a work breakdown structure to
accomplish your objective.
Assume unlimited
resources.
• stop car • remove tire
• get spare tire • put on spare
• replace lugs • lower car
• open trunk • drive off safely
• get jack • tighten lugs
• loosen lugs • replace screwdriver
• get screwdriver • replace hub cap
• position jack • get lug wrench
• put flat in trunk • remove jack
• remove hub cap • close trunk
• jack up car • remove lugs
Solution
1.0 Stop Car 2.0 Change Tire 3.0 Drive Off
1.1Stop Car 2.1 Get Tools and Spare 3.1 Drive off Safely
2.1.1 Open Trunk
2.1.2 Get Jack
2.1.3 Get Screwdriver
2.1.4 Get Lug wrench
2.1.5 Get Spare
2.2 Jack up Car
2.2.1 Position Jack
2.2.2 Remove Hubcap
2.2.3 Loosen Lugs
2.2.4 Jack up Car
2.3 Remove Flat
2.3.1 Remove Lugs
2.3.2 Remove Tire
2.4 Replace with Spare
2.4.1 Put on Spare
2.4.2 Replace Lugs
2.4.3 Tighten Lugs
2.5 Lower Car
2.5.1 Lower Car
2.5.2 Replace Hubcap
2.6 Replace Tools/Spare
2.6.1 Put Flat Tire Away
2.6.2 Replace Screwdriver
2.6.3 Replace Wrench
2.6.4 Replace Jack
2.6.5 Close Trunk
3-
Define Activities, their
dependencies, Relationship,
Resources and Time
Sequence & Estimated
Identify Identify Activities
Coding the Relationship Time For each
Activities Activities Activity
Create Project
Chart
a. Identify Activities
Concurrent Concurrent, or parallel, activities are another type of activity that may be
activities part of your project.
Dummy activities Another type of activity you may include in your project schedule is a
dummy activity. Dummy activities are used to demonstrate how concurrent
activities relate to one another, and they can be used to improve the
layout of your project schedule.
Lag activities . Lag activities do not require the use of any resources since they occur
when there is a waiting period, or ''lag'' time, between the time that one
activity is completed and the next one begins
Milestones Milestones do not require work, use time, or expend resources. They are
used in project scheduling to indicate that a series of activities is
complete, to represent progress points, or to denote when a meeting
should be held.
c. Identify Activity Relationship
LATEST
START
CRITICAL PATH
SLACK TIME
LATEST
FINISH
FINISH TO LATEST
START
CRITICAL PATH
SLACK TIME
LATEST
FINISH
FINISH
Alternate Methods to
define Relationships.
• Define Predecessor
• Define Successor.
d. Estimated Time For each Activity
3 Send invitations
4 Receive replies
Step2: Determine the duration of each
task
Sr.
Activity Time (hrs)
No.
A Decide on the date of party 5
C Send invitations 08
D Receive replies 12
C A Send invitations 08
D C Receive replies 12
Step 4: Present in a visual diagram
Send invitations
Receive replies
0
5 10 15 20 25
Gantt Basics
137
A FAMILY Routine:
Task Name Duration Predecessor
1 Alarm Goes Off 5 Min
2 Wake family 5 Min 1
3 Mom shower 40 Min 2
4 Son shower 30 Min 2
5 Walk dog 10Min 2
6 Father shower 15 Min 5
7 Prepare breakfast 15 Min 3
8 Eat breakfast 15 Min 7,4,6
9 Load car 5 Min 8
10 Drive to game 25 Min 9
11 Arrive at Game 0 Min 10
Questions
1. Draw a network diagram.
2. What tasks are on the critical path?
3. What is the minimum time it would take for
the family to reach the footy game after
getting the alarm goes off?
4. How much more time could dad walk the dog
before eating breakfast got delayed? (Note:
Mum insists the entire family eats together)
5. What is this amount of time called?
6. If mum skipped her 40 minutes shower, how
much earlier would they get to the game?
CAR PURCHASE
DECISION
ACTIVITY DESCRIPTION OF ACTIVITY IMMEDIATE PREDECESSOR DURATION IN DAYS
6 3 20
0 0 0 0 3 3
4 3 7
Start A
D
0 0 0 0 0 3 9 3 12
4 0 7 16 4 20
I
M
9 0 12
16 0 20 20 3 23 23 0 23
3 1 4 4 1 5 7 1 8 8 1 9 12 2 14 14 2 16
C E
E G H K L 0 Finish
3 0 4 6 2 7 7 0 8 8 0 9 12 0 14 14 0 16 20 0 23 23 0 23
16 1 17
9 2 11
N
J
4 2 6 19 3 20
10 1 12
F
5 1 7
CRITICAL PATH = C – D – G – H – I – K – L – M -O
critical path
• The critical path is the sequence of activities
with the longest duration. A delay in any of
these activities will result in a delay for the
whole project.
Float Determination
• Once you've identified the critical path for the
project, you can determine the float for each activity.
Float is the amount of time an activity can slip before
it causes your project to be delayed. Float is
sometimes referred to as slack.
What is a Project?
VP Finance VP Marketing VP VP
Manufacturing Engineering
New Layout –
Robot Line
Project New
Model Proton
SURIE
Functional Organization
Chapter 4 Project Organization 176
Major Advantages
• Maximum flexibility in the use of staff
• Individual experts can be utilized by many
different projects
• Specialist in the division can be grouped to
share knowledge and experience
• Functional division serves as a base of
technological continuity
P r e s id e n t
V ic e P r e s id e n t P r o je c t A V ic e P r e s id e n t P r o je c t B V i c e P r e s id e n t P r o je c t C
F in a n c e M a n u f a c t u r in g F in a n c e M a n u f a c t u r in g F in a n c e M a n u f a c t u r in g
President
PM1
PM2
PM3
Provide
Level 1 1.0
Banquet
Level 2
1.1 1.2 1.3 1.4 1.5 1.6
1.3.1
1.1.1 Create 1.2.1 Make 1.4.1 Make 1.5.1 Hire
Identify Site/ 1.6.1 Invite
Plan Menu Guest List Shoppers
Room
1.2.2
1.4.2
1.1.2 Make Create 1.3.2 Set up 1.5.2 Hire 1.6.2
Receive
Budget Shopping Tables/Chairs Cooks Transport
RSVPs
List
1.1.3 Prepare 1.6.3
1.3.3 Lay out 1.4.3 Create 1.5.3 Hire
Disbursements/ 1.2.3 Shop Coordinate
Settings/Utensils Name Tags Servers
Reconciliation Topics
1.1.4
1.4.4 Review 1.5.4 Hire 1.6.4 Backup
Coordinate 1.2.4 Cook 1.3.4 Decorate
Special Needs Hosts for No-shows
Activities
19-Nov-08
The 9 Things
• an area of project management defined by its knowledge
requirements and described in terms of its associated
process, practices, inputs, outputs, tools and techniques
• identified knowledge areas (the ‘things’)
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 Communications Management
8. Project Risk Management
9. Project Procurement Management
9 Things in the PMBOK 19-Nov-08 192
1. Project Integration
Management
Project Develop Project Develop Project Management Direct and Manage Project Monitor and Control Project Work Close Project
Management Charter Plan Execution Integrated Change Control
Integration Develop Prelim Project
Scope Statement
Project Quality Quality Planning Perform Quality Assurance Perform Quality Control
Management
Project HR Human Resources Planning Acquire Project Team Manage Project Team
Management Develop Project Team
Project Plan Purchases and Acquisitions Request Seller Responses Contract Administration Contract
Procurement Plan Contracting Select Sellers Closure
Management
In conclusion . . .
1
Project Team Size
2
Common Characteristics
Project Team Size
Performance is based on balance of members carrying out roles and meeting
social and emotional needs
Project teams of 5 to 12 members work best
There are
problems you
encounter as size
increases
1. It gets more difficult to
interact with and influence
the group
4. It requires more
centralized decision
making
n(n − 1) / 2
Fred Brooks
The Mythical Man-Month
Group Intercommunication Formula
n(n − 1) / 2
Examples
Fred Brooks
The Mythical Man-Month
Group Intercommunication Formula
n(n − 1) / 2
Examples
Fred Brooks
The Mythical Man-Month
Group Intercommunication Formula
n(n − 1) / 2
Examples
Fred Brooks
The Mythical Man-Month
Group Intercommunication Formula
n(n − 1) / 2
Examples
Security
Status
Self-esteem
Affiliation
Power
Goal achievement
Why do teams work well for organizations?
Team Development
Project team
Mid point
Training
R. Max Wideman, (1998) Project Teamwork, Personality Profiles and the Population at Large:
Do we have enough of the right kind of people? FPMI, AEW Services, Vancouver, BC, Canada.
http://www.maxwideman.com/papers/profiles/profiles.pdf
Another model
Responsiveness
Another model
Task
Analytical Driver
Responsiveness
Amiable Expressive
People
http://www.provenmodels.com/21/motivation-hygiene-theory/herzberg-mausner-snyderman
Thamhain and Wilemon’s
influence bases
Ca be applied to improve
effectiveness on projects
1. Be proactive
2. Begin with the end in mind
3. Put first things first
4. Think win/win
5. Seek first to understand,
then to be understood
6. Synergize
7. Sharpen the saw
Covey’s Habit 5: Seek first to understand, then to
be understood
END of the Course
Good Luck
Introduction 90 percent project managers spend their time
Communication management
Importance of Good
Communications
• The greatest threat to many projects
is a failure to communicate
• Our culture does not portray Project
professionals as being good
communicators
• Research shows that Project
management professionals must be
able to communicate effectively to
succeed in their positions
267
Communication model
Communication methods
Communication management communication blocker
Noise distance improper encoding of message language culture saying that is a bad idea
Project Communications
Management Processes
272
Communications Management
Plan Contents
• A description of a collection and filing structure for
gathering and storing various types of information
• A distribution structure describing what information
goes to whom, when, and how
• A format for communicating key project information
• A project schedule for producing the information
• Access methods for obtaining the information
• A method for updating the communications
management plans as the project progresses and
develops
273
• A stakeholder communications analysis
Stake holders communication analysis customer management customer business staff
Customer technical staff internal management training subcontractor software
subcontractor internal business and technical staff
274
Information Distribution
• Getting the right information to the
right people at the right time and in
a useful format is just as important
as developing the information in
the first place
• Important considerations include
– using technology to enhance
information distribution
– formal and informal methods for
distributing information
275
What Went Wrong?
A well publicized example of misuse
of e-mail comes from the 1998
Justice Department's high profile,
antitrust suit against Microsoft. E-
mail emerged as a star witness in
the case. Many executives sent
messages that should never have
been put in writing. The court used
e-mail as evidence, even though the
senders of the notes said the
information was being interpreted
out of context.
276
Table 10-2. Media Choice Table
Excellent
Adequate
inappropriate
277
Figure 10-1. The Impact of the
Number of People on
Communications Channels
278
Performance Reporting
• Performance reporting keeps
stakeholders informed about how
resources are being used to achieve
project objectives
– Status reports describe where the
project stands at a specific point in
time
– Progress reports describe what the
project team has accomplished during
a certain period of time
– Project forecasting predicts future
project status and progress based on
past information and trends
– Status review meetings often include
279 performance reporting
Administrative Closure
• A project or phase of a project requires
closure
• Administrative closure produces
– project archives
– formal acceptance
– lessons learned
280
Suggestions for Improving
Project Communications
1. Manage conflicts effectively
2. Develop better communication skills
3. Run effective meetings
4. Use e-mail effectively
5. Use templates for project communications
281
Conflict Handling Modes in
Preference Order
• Confrontation or problem-solving: directly
face a conflict
• Compromise: use a give-and-take approach
• Smoothing: de-emphasize areas of
differences and emphasize areas of
agreement
• Forcing: the win-lose approach
• Withdrawal: retreat or withdraw from an
actual or potential disagreement
282
Conflict Can Be Good
• Conflict often produces important results,
such as new ideas, better alternatives, and
motivation to work harder and more
collaboratively
• Groupthink can develop if there are no
conflicting viewpoints
• Research by Karen Jehn suggests that task-
related conflict often improves team
performance, but emotional conflict often
depresses team performance
283
Developing Better
Communication Skills
286
Using Templates for Project
Communications
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Learning Objectives (continued)
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What Went Wrong?
• The U.S. Internal Revenue Service (IRS) continues to
provide examples of how not to manage costs
– A series of project failures in the 1990s cost taxpayers more
than $50 billion a year
– In 2004, CIO Magazine reported problems with the IRS’s $8
billion modernization project
– In 2006, the IRS was in the news for a botched upgrade to its
fraud-detection software, costing $318 million in fraudulent
refunds that didn’t get caught
• The United Kingdom’s National Health Service IT
modernization program was called the greatest IT disaster
in history by a London columnist, with an estimated $26
billion overrun
– Incompatible systems; resistance from physicians who felt
they were not consulted enough about system features;
arguments amoung contractors regarding responsibility
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6 Information Technology Project Management, Fifth Edition, Copyright 2007
Reasons for Cost Overruns
• Not emphasizing the importance of realistic project
cost estimates from the outset
– Many of the original cost estimates for projects are
low to begin with and based on very unclear project
requirements
• Many professionals think preparing cost estimates
is a job for accountants when in fact it is a very
demanding and important skill that project
managers need to acquire
• Many projects involve new technology or business
processes which involve untested products and
inherent risks
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Project Cost Management Processes
• There are three project cost management
processes:
– Cost estimating: developing an approximation or
estimate of the costs of the resources needed to
complete a project
– Cost budgeting: allocating the overall cost
estimate to individual work items to establish a
baseline for measuring performance
– Cost control: controlling changes to the project
budget
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Basic Principles of Cost Management
• Most members of an executive board better
understand and are more interested in financial
terms than IT terms, so IT project managers must
speak their language
– Profits are revenues minus expenditures
– Profit margin is the ratio of profit to revenues
• $2 profit per $100 revenue 2% profit margin
– Life cycle costing considers the total cost of
ownership, or development plus support costs, for a
project
• A project could take 2 years to build and be in place
for 10 years; costs and benefits must be estimated for
the entire lifetime of the project
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Direct cost and indirect cost
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Cost Estimating
• A definitive estimate provides an accurate
estimate of project costs (most accurate of the three
types).
– Definitive estimates are used for making many
purchasing decisions for which accurate estimates
are required and for estimating final project costs.
– For example, if a project involves purchasing 1000
personal computers from an outside supplier in the
next three months, a definitive estimate would be
required to aid in evaluating supplier proposals and
allocating the funds to pay the chosen supplier.
– Definitive estimates are made one year or less prior
to project completion
– Accuracy range is normally -5% to +10%
31
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Types of Cost Estimates
Definitive
Budgetary
Rough order
of magnitude
rom
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Cost Estimation Tools and Techniques
• Analogous or top-down estimates: use the actual cost of a
previous, similar project as the basis for estimating the cost
of the current project
– How similar the current and previous project are determines the
accuracy of the estimate. Using a different language or hardware
can skew the estimate
• Bottom-up estimates or Activity Based Costing : involve
estimating individual work items or activities and summing
them to get a project total
– The smaller the work items, the better the estimate but these
estimates are usually time intensive and expensive to develop
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Cost Estimation Tools and Techniques
• Parametric modeling: uses project characteristics
(parameters) in a mathematical model to estimate project
costs
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Typical Problems with Cost Estimates1
• Estimates are done too quickly
– Many estimates must be done quickly, before clear system
requirements have been produced
• Lack of estimating experience
– The people developing the costs estimates often don’t have
much experience, especially on large projects
– There is not enough accurate, reliable project data available on
which to base estimates
• Human beings are biased toward underestimation
– Senior team members make estimates based on their skill level
but should take into account the junior people on the project
• Management desires accuracy but wants to spend less in order to win a
bid or internal funding
– Top management never forgets the first estimate and rarely, if
ever, remembers how approved changes affect the estimate.
• The PM must keep the communication lines open at all times
_______________________________________________________________
1. DeMarco, Tom, Controlling Software Projects, New York:Yourdon Press, 1982.
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Media Snapshot
• Australia: problems with the installation of an ERP system at
Crane Group Ltd. led to an estimated cost overrun of $11.5 million
• India: as many as 274 projects currently under implementation in
the Central sector are suffering serious cost and time overruns.
Only 65 are being monitored on a regular basis
• Pakistan: Pakistan has sustained a cost overrun of Rs 1.798
billion (over $30 million U.S. dollars) in the execution of the 66.5
megawatt Jagran Hydropower Project in the Neelum Valley.
Caused by massive mismanagement, embezzelment of funds
and unapproved changes in the project
• United States: Northern California lawmakers were outraged
over Governor Arnold Schwarzenegger's announcement that
commuters should have to pay construction costs on Bay Area
bridges. Cost of one of the bridges has grown from $1.1 billion to
$5.1 billion Maybe it takes the Terminator to help control costs!
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Project Portfolio Management
• Many organizations collect and control an entire
suite of projects or investments as one set of
interrelated activities in a portfolio
• Five levels for project portfolio management
1. Put all your projects in one database
2. Prioritize the projects in your database
3. Divide your projects into two or three budgets
based on type of investment
4. Apply modern portfolio theory, including risk-
return tools that map project risk on a curve
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Information Technology Project Management, Fifth Edition, Copyright 2007
Benefits of Portfolio Management
• Schlumberger saved $3 million in one year by
organizing 120 information technology projects
into a portfolio
– 80% of the projects overlapped
– 14 separate projects were trying to accomplish the
same thing
• META Group research shows that:
– Organizations that evaluate information technology
projects by what their business impacts are and
what their potential business values will be
implement projects that result in 25 percent more
improvement to the bottom line
– Business executives state that using project
portfolio management allows managers to make
decisions faster and with more confidence
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