© 2004, David Gadish, Ph.D.1 Project Management CIS 486 Fall 2005 Week 3 Lecture Dr. David Gadish.

© 2004, David Gadish, Ph.D. 1

Project ManagementProject ManagementCIS 486CIS 486

Fall 2005Fall 2005

Week 3 LectureWeek 3 Lecture

Dr. David GadishDr. David Gadish


Week 2 Review

The Project Management and Information Technology Context (Ch-2)

The Project Management Process Groups (Ch-3)


Week 3 Overview

Project Integration Management (Ch 4) Project Scope Management (Ch 5)

4

Project Integration Management

Chapter 4


Learning Objectives Describe an overall framework for project

integration management as it relates to the other project management knowledge areas and the project life cycle

Describe project plan development, including project plan content, using guidelines and templates for developing plans, and performing a stakeholder analysis to help manage relationships


Learning Objectives Explain project plan execution, its relationship to

project planning, the factors related to successful results, and tools and techniques to assist in project plan execution

Understand the integrated change control process, planning for and managing changes on information technology projects, and developing and using a change control system

Describe how software can assist in project integration management


The Key to Overall Project Success: Good Project Integration Management Project managers must coordinate all of

the other knowledge areas throughout a project’s life cycle

Many new project managers have trouble looking at the “big picture” and want to focus on too many details

Project integration management is not the same thing as software integration


Project Integration Management Processes Project Plan Development: taking the

results of other planning processes and putting them into a consistent, coherent document—the project plan

Project Plan Execution: carrying out the project plan

Integrated Change Control: coordinating changes across the entire project


Project Integration Management Overview


Framework for Project Integration Management


Project Plan Development Document used to coordinate all project

planning documents Main purpose is to guide project

execution Assist the project manager in leading the

project team and assessing project status Project performance should be measured

against a baseline plan


Attributes of Project Plans

Just as projects are unique, so are project plans

Plans should be dynamic Plans should be flexible Plans should be updated as changes occur Plans should first and foremost guide

project execution


Common Elements of a Project Plan Introduction or overview of the project Description of how the project is

organized Management and technical processes used

on the project Work to be done, schedule, and budget

information


Sample Outline for a Software Project Management Plan (SPMP) (Table 4.1)

Project Management Plan SectionsIntroduction Project

OrganizationManagerialProcess

TechnicalProcess

WorkPackages,Schedule, andBudget

SectionTopics

Projectoverview;projectdeliverables;evolution ofthe SPMP;referencematerials;definitions andacronyms

Process model;organizationalstructure;organizationalboundaries andinterfaces;projectresponsibilities

Managementobjectives andpriorities;assumptions,dependencies,andconstraints;riskmanagement;monitoringandcontrollingmechanisms;and staffingplan

Methods, tools,andtechniques;softwaredocumentation;and projectsupportfunctions

Workpackages;Dependencies;resourcerequirements;budget andresourceallocation;and schedule

IEEE Std 10581-1987


Stakeholder Analysis

A stakeholder analysis documents important (often sensitive) information about stakeholders such as– stakeholders’ names and organizations– roles on the project– unique facts about stakeholders– level of influence and interest in the project– suggestions for managing relationships


Sample Stakeholder Analysis (Table 4.2)Key Stakeholders

Ahmed Susan Erik Mark DavidOrganization Internal

seniormanagement

Project team Project team Hardwarevendor

Projectmanager forotherinternalproject

Role onproject

Sponsor ofproject andone of thecompany'sfounders

DNAsequencingexpert

Leadprogrammer

Suppliessomeinstrumenthardware

Competingfor companyresources

Unique facts Demanding,likes details,businessfocus,StanfordMBA

Very smart,Ph.D. inbiology,easy to workwith, has atoddler

BestprogrammerI know,weird senseof humor

Start-upcompany, heknows wecan makehim rich ifthis works

Nice guy,one of oldestpeople atcompany,has 3 kids incollege

Level ofinterest

Very high Very high High Very high Low tomedium

Level ofinfluence

Very high;can call theshots

Subjectmatterexpert;critical tosuccess

High; hardto replace

Low; othervendorsavailable

Low tomedium

Suggestionson managingrelationship

Keepinformed, lethim leadconversations ,do as hesays andquickly

Make sureshe reviewsspecifications and leadstesting; cando somework fromhome

Keep himhappy so hestays;emphasizestockoptions;likesMexicanfood

Give himenough leadtime todeliverhardware

He knowshis projecttakes a backseat to thisone, but Ican learnfrom him


Project Plan Execution Project plan execution involves

managing and performing the work described in the project plan

The majority of time and money is usually spent on execution

The application area of the project directly affects project execution because the products of the project are produced during execution


What Went Wrong? Many people have a poor view of plans based on past

experiences. Senior managers often require a plan, but then no one follows up on whether the plan was followed.

For example, one project manager said he would meet with each project team leader within two months to review their plans. The project manager created a detailed schedule for these reviews. He cancelled the first meeting due to another business commitment. He rescheduled the next meeting for unexplained personal reasons. Two months later, the project manager had still not met with over half of the project team leaders.

Why should project members feel obligated to follow their own plans when the project manager obviously did not follow his?


Important Skills for Project Execution General management skills like

leadership, communication, and political skills

Product skills and knowledge Use of specialized tools and techniques


Tools and Techniques for Project Execution Work Authorization System: a method

for ensuring that qualified people do work at the right time and in the proper sequence

Status Review Meetings: regularly scheduled meetings used to exchange project information

Project Management Software: special software to assist in managing projects


Integrated Change Control Integrated change control involves

identifying, evaluating, and managing changes throughout the project life cycle

Three main objectives of change control:

– Influence the factors that create changes to ensure they are beneficial

– Determine that a change has occurred

– Manage actual changes when and as they occur


Integrated Change Control Process


Change Control on IT Projects

Former view: The project team should strive to do exactly what was planned on time and within budget

Problem: Stakeholders rarely agreed up-front on the project scope, and time and cost estimates were inaccurate

Modern view: Project management is a process of constant communication and negotiation

Solution: Changes are often beneficial, and the project team should plan for them


Change Control System

A formal, documented process that describes when and how official project documents and work may be changed

Describes who is authorized to make changes and how to make them

Often includes a change control board (CCB), configuration management, and a process for communicating changes


Change Control Boards (CCBs)

A formal group of people responsible for approving or rejecting changes on a project

CCBs provide guidelines for preparing change requests, evaluate change requests, and manage the implementation of approved changes

Includes stakeholders from the entire organization


Making Timely Changes Some CCBs only meet occasionally, so it

may take too long for changes to occur Some organizations have policies in place for

time-sensitive changes– “48-hour policy” allows project team members

to make decisions, then they have 48 hours to reverse the decision pending senior management approval

– Delegate changes to the lowest level possible, but keep everyone informed of changes


Configuration Management Ensures that the products and their

descriptions are correct and complete Concentrates on the management of

technology by identifying and controlling the functional and physical design characteristics of products

Configuration management specialists identify and document configuration requirements, control changes, record and report changes, and audit the products to verify conformance to requirements


Suggestions for Managing Integrated Change Control

View project management as a process of constant communications and negotiations

Plan for change Establish a formal change control system, including a

Change Control Board (CCB) Use good configuration management Define procedures for making timely decisions on smaller

changes Use written and oral performance reports to help identify

and manage change Use project management and other software to help manage

and communicate changes


Using Software to Assist in Project Integration Management Several types of software can be used to assist in

project integration management– Documents can be created with word processing

software

– Presentations are created with presentation software

– Tracking can be done with spreadsheets or databases

– Communication software like e-mail and Web authoring tools facilitate communications

– Project management software can pull everything together and show detailed and summarized information (see Appendix A for details)


ResNet Summary Gantt Chart

31

Project Scope Management

Chapter 5


Learning Objectives

Understand the elements that make good project scope management important

Describe the strategic planning process, apply different project selection methods, such as a net present value analysis, a weighted scoring model, and a balanced scorecard, and understand the importance of creating a project charter

Explain the scope planning process and contents of a scope statement


Learning Objectives

Discuss the scope definition process and construct a work breakdown structure using the analogy, top-down, bottom-up, and mind mapping approaches

Understand the importance of scope verification and scope change control to avoid scope creep on IT projects

Describe how software can assist in project scope management


What is Project Scope Management?

Scope refers to all the work involved in creating the products of the project and the processes used to create them. It defines what is or is not to be done

Deliverables are products produced as part of a project, such as hardware or software, planning documents, or meeting minutes

The project team and stakeholders must have the same understanding of what products will be produced as a result of a project and how they’ll be produced


Project Scope Management Processes

Initiation: beginning a project or continuing to the next phase

Scope planning: developing documents to provide the basis for future project decisions


Project Scope Management Processes

Scope definition: subdividing the major project deliverables into smaller, more manageable components

Scope verification: formalizing acceptance of the project scope

Scope change control: controlling changes to project scope


Project Initiation: Strategic Planning and Project Selection The first step in initiating projects is to look

at the big picture or strategic plan of an organization

Strategic planning involves determining long-term business objectives

IT projects should support strategic and financial business objectives


Why Firms Invest in Information Technology


Identifying Potential Projects Many organizations follow a planning

process for selecting IT projects First develop an IT strategic plan based

on the organization’s overall strategic plan

Then perform a business area analysis Then define potential projects Then select IT projects and assign

resources


Information Technology Planning Process


Methods for Selecting Projects There are usually more projects than

available time and resources to implement them

It is important to follow a logical process for selecting IT projects to work on

Methods include:– focusing on broad needs– categorizing projects– performing financial analyses– using a weighted scoring model– implementing a balanced scorecard


Focusing on BroadOrganizational Needs It is often difficult to provide strong

justification for many IT projects, but everyone agrees they have a high value

“It is better to measure gold roughly than to count pennies precisely”

Three important criteria for projects:– There is a need for the project– There are funds available– There’s a strong will to make the project succeed


Categorizing IT Projects One categorization is whether the project

addresses– a problem– an opportunity– a directive

Another categorization is how long it will take to do and when it is needed

Another is the overall priority of the project


Financial Analysis of Projects Financial considerations are often an

important consideration in selecting projects

Three primary methods for determining the projected financial value of projects:– Net present value (NPV) analysis– Return on investment (ROI)– Payback analysis


Net Present Value Analysis Net present value (NPV) analysis is a method of

calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time

Projects with a positive NPV should be considered if financial value is a key criterion

The higher the NPV, the better


Net Present Value Example

UsesExcel’snpvfunction

Notethat totalsare equal,butNPVsare not.


JWD Consulting NPV Example

Multiplyby thediscountrate eachyear, thentake cum.benefits –costs toget NPV


NPV Calculations Determine estimated costs and benefits for the

life of the project and the products it produces Determine the discount rate (check with your

organization on what to use) Calculate the NPV (see text for details) Notes: Some organizations consider the

investment year as year 0, while others start in year 1. Some people enter costs as negative numbers, while others do not. Check with your organization for their preferences.


Return on Investment Return on investment (ROI) is calculated by

subtracting the project costs from the benefits and then dividing by the costs ROI = (total discounted benefits - total discounted

costs) / discounted costs The higher the ROI, the better Many organizations have a required rate of

return or minimum acceptable rate of return on an investment

Internal rate of return (IRR) can by calculated by setting the NPV to zero


Payback Analysis Another important financial consideration is

payback analysis The payback period is the amount of time it

will take to recoup, in the form of net cash inflows, the net dollars invested in a project

Payback occurs when the cumulative discounted benefits and costs are greater than zero

Many organizations want IT projects to have a fairly short payback period


Charting the Payback Period


Weighted Scoring Model A weighted scoring model is a tool that provides

a systematic process for selecting projects based on many criteria– First identify criteria important to the project selection

process– Then assign weights (percentages) to each criterion so

they add up to 100%– Then assign scores to each criterion for each project– Multiply the scores by the weights and get the total

weighted scores The higher the weighted score, the better


Sample Weighted Scoring Model for Project Selection


Implementing a Balanced Scorecard Drs. Robert Kaplan and David Norton

developed this approach to help select and manage projects that align with business strategy

A balanced scorecard converts an organization’s value drivers, such as customer service, innovation, operational efficiency, and financial performance to a series of defined metrics

See www.balancedscorecard.org for more information


Project Charters After deciding what project to work on, it

is important to formalize projects A project charter is a document that

formally recognizes the existence of a project and provides direction on the project’s objectives and management

Key project stakeholders should sign a project charter to acknowledge agreement on the need and intent of the project


Sample Project Charter


Sample Project Charter


Scope Planning and theScope Statement A scope statement is a document used to

develop and confirm a common understanding of the project scope. It should include:– a project justification– a brief description of the project’s products– a summary of all project deliverables– a statement of what determines project success

See the example scope statement in Chapter 3, pages 83-85


Scope Planning and the Work Breakdown Structure After completing scope planning, the next

step is to further define the work by breaking it into manageable pieces

Good scope definition– helps improve the accuracy of time, cost, and

resource estimates– defines a baseline for performance measurement

and project control– aids in communicating clear work responsibilities


The Work Breakdown Structure A work breakdown structure (WBS) is a

deliverable-oriented grouping of the work involved in a project that defines the total scope of the project

It is a foundation document in project management because it provides the basis for planning and managing project schedules, costs, and changes


Sample Intranet WBS Organized by Product


Sample Intranet WBS Organized by Phase


Intranet WBS in Tabular Form1.0 Concept

1.1 Evaluate current systems1.2 Define Requirements

1.2.1 Define user requirements1.2.2 Define content requirements1.2.3 Define system requirements1.2.4 Define server owner requirements

1.3 Define specific functionality1.4 Define risks and risk management approach1.5 Develop project plan1.6 Brief Web development team

2.0 Web Site Design3.0 Web Site Development4.0 Roll Out5.0 Support


Intranet WBS and Gantt Chart in Project 2000


Intranet WBS and Gantt Chart Organized by Project Management Process Groups


Executing Tasks for JWD Consulting’s WBS


Approaches to Developing WBSs Using guidelines: Some organizations,

like the DoD, provide guidelines for preparing WBSs

The analogy approach: Review WBSs of similar projects and tailor to your project

The top-down approach: Start with the largest items of the project and break them down


Approaches to Developing WBSs The bottom-up approach: Start with the

detailed tasks and roll them up Mind-mapping approach: Write down

tasks in a non-linear format and then create the WBS structure


Sample Mind-Mapping Approach


Basic Principles for Creating WBSs1. A unit of work should appear at only one place in

the WBS.2. The work content of a WBS item is the sum of the

WBS items below it.3. A WBS item is the responsibility of only one

individual, even though many people may be working on it.

4. The WBS must be consistent with the way in which work is actually going to be performed; it should serve the project team first and other purposes only if practical.


Basic Principles for Creating WBSs5. Project team members should be involved in

developing the WBS to ensure consistency and buy-in.

6. Each WBS item must be documented to ensure accurate understanding of the scope of work included and not included in that item.

7. The WBS must be a flexible tool to accommodate inevitable changes while properly maintaining control of the work content in the project according to the scope statement.


Scope Verification and Scope Change Control It is very difficult to create a good scope

statement and WBS for a project It is even more difficult to verify project

scope and minimize scope changes Many IT projects suffer from scope creep

and poor scope verification


Factors Causing IT Project Problems


Suggestions for Improving User Input Develop a good project selection process

and insist that sponsors are from the user organization

Have users on the project team in important roles

Have regular meetings Deliver something to users and sponsors on

a regular basis Co-locate users with developers


Suggestions for Reducing Incomplete and Changing Requirements Develop and follow a requirements

management process Use techniques like prototyping, use case

modeling, and JAD to get more user involvement

Put requirements in writing and keep them current

Provide adequate testing and conduct testing throughout the project life cycle


Suggestions for Reducing Incomplete and Changing Requirements Review changes from a systems perspective Emphasize completion dates to help focus on

what’s most important Allocate resources specifically for handling

change requests/enhancements


Using Software to Assist in Project Scope Management Word-processing software helps create

several scope-related documents Spreadsheets help to perform financial

calculations, create weighted scoring models, and develop charts and graphs


Using Software to Assist in Project Scope Management Communication software like e-mail and the

Web help clarify and communicate scope information

Project management software helps in creating a WBS, the basis for tasks on a Gantt chart

Specialized software is available for applying the balanced scorecard, creating mind maps, managing requirements, and so on


Questions?


Next Week’s Agenda

Project Time Management (Ch 6) Project Cost Management (Ch 7)

© 2004, David Gadish, Ph.D.1 Project Management CIS 486 Fall 2005 Week 3 Lecture Dr. David Gadish.

Documents

project team

project description

project work

project management cis

entire project slide

project plans plans

project plan introduction

project plan content