Project Management

PROJECT MANAGEMENT

ANUPAM KRISHNABE, MBA PHD(MNIT)

„a method and a set of techniques based on the accepted principles of

management used for planning, estimating and controlling work activities to reach a desired end

result on time – within budget and according to specification“

What is Project Management?

(Robert K. Wysocki / Robert Beck Jr. / David B. Crane, Effective Project Management, 2. ed., John Wiley & Sons, 2002, p. 79).

„Project management is the planning, organizing, directing, and controlling of

company resources for a relatively short-term objective that has been

established to complete specific goals and objectives.“

(Harold Kerzner, Project Management: A Systems Approach to Planing, Scheduling and Controlling, John Wiley & Sons, Inc., New

York et. al., 7. ed, 2001, p. 4)

What is Project Management?

Look at Projects in Their Broader Context!

The Essence of Knowledge

Is Having It To Apply It

(Chinese Philiosopher Confucious)551 B.C – 479 B.C

Recommended Course Text Books

Project Management: Strategic Design and implementation

David I. Cleland & Lewis R. Ireland

McGraw Hill, 4th edition, 2002

ISBN: 0-07-139310-2

Project Management: The Managerial Process

Clifford F. Gray & Erik W. Larson

MGraw Hill, 3rd edition, 2006

ISBN: 0-07-060093-7

Project Management: A Managerial Approach

Jack R. Meredith & Samuel J. Mantel, Jr.

John Wiley & Sons, 6th edition, 2006

ISBN: 0-471-74277-5

Anyone who is directly or indirectly involved in initiating, planning, implementing, monitoring,

evaluating and/or controlling a project in a position which involves a substantive level of decision-

making, responsibility, communication and coordination, should be thoroughly familiar with all the subject areas and methodology, processes and

tools and techniques of project management.

A good and common project management knowledge platform will increase the likelihood of

the project attaining its goal within time and budget.

Who Should Study Project Management?

At the very least a project‘s key stakeholders – i.e., its sponsor, manager, team members,

consultants, external suppliers and con-tractors, the senior and resource managers of the organization(s) which are implementing

the project and the project customers / users - should all understand the methodology

being used to undertake the project.

Who Should Study Project Management?

Professionals Who Should Be Thoroughly Familiar With Project Management (Examples)

Managers

Architects

Consultants

Economists

Development Officials

Engineers

Government Officials

IT Professionals

Natural & Social Scientists

Public Administrators

Policy Makers

Researchers

In the course of their professional

lives, these persons would

normally be directly involved

in a large number of projects

Terminology

Basic Terminology

Projects

Subprojects

Programmes

Portfolios

Processes

Project Management

Many definitions for these words have been proposed.

Sample definitions along with practical examples are contained in the following slides.

What is a Project? (Definition #1)

A project is a temporary endeavour undertaken

to create a unique product, service, or result

(Guide to the Project Management – Body of Knowledge, the Project Management Institute, 3rd. Ed., 2004, p. 5)

A project is a sequence of unique, complex and connected

activities having one goal or purpose that must be completed by a specific time, within budget and according to specification

What is a Project? (Definition #2)

(Robert Wysocki / Robert Beck Jr. / Daniel B. Crane: Effective Project Management, John Wiley & Sons, 2002, p.65)

A project is a complex, nonroutine, one-time effort

limited by time, budget, resources, and performance specifications designed to

meet customer needs

What is a Project? (Definition #3)

(Clifford F. Gray / Erik W. Larson, Project Management: The Managerial Process, 2. ed., p. 15)

What is a Project? (Definition #4)

A project is an endeavour in which human, material and financial resources

are organized in a novel way, to undertake a unique scope of work of given

specification, within constraints of cost and time, so as to achieve unitary,

beneficial change, through the delivery of quantified and qualitative objectives

(J.R. Turner, The Handbook of Project-Based Management: Improving Processes for Achieving Your Strategic Objectives,

Mcgraw Hill: New York, 1992)

Projects are ad hoc, resource-consuming activities used to

implement organizational strategies, achieve enterprise

goals and objectives, and contribute to the realization of

the enterprise‘s mission

What is a Project? (Definition #5)

(David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic Implementation, 4th ed., p. 10)

Subprojects are smaller, more manageable components of larger, more complex projects

Subprojects have their own goals and outputs or deliverables which together constitute the final deliverable. Subprojects have, analogous to the main project in which they are integrated, their own scope, schedules, costs, human resources, risks etc.

Subprojects are comprised of project team members and are headed by subproject managers who, similar to the project manager, must have excellent decision-making, communication and other requisite skills, and be in a position to manage the implementation of the subproject work effectively and efficiently.

What are Subprojects?

SubprojectsExample: The Sydney Olympic Games 2000

Events

Venues, FacilitiesAccommodation

Transport

Media Facilities and Coordination

Telecommunications

Security Arrangements

Medical Care

Human Resourcesand Volunteers

Cultural Olympiad

Pre-Games Training

IT-Projects

Opening and ClosingCeremonies

Public Relations

Financing

Test Games and Trial Events

Sponsorship Management

The Sydney Olympic Games 2000 was a highly complex project which comprised several distinct work areas, each of which could be con- sidered as subprojects, in their own right, and which all had to be in- tegrated and coordinated within the framework of the overall olympic project.

The Project Portfolio

The project portfolio is the set of projects

which an organization is undertaking. Projects

usually differ in their type, complexity, cost, time requirement, risk

level, priority, etc.

The projects comprising the

portfolio may be in various stages of

initiation, planning, and

implementation

„a system of operations in the design, development and production of something,

whereby inherent in such a process is a series of actions,

changes, or operations that bring about an end result“

What is a Process?

„a set of interrelated actions and activities that are performed to achieve a prespecified set of

products, results, or services“

What is a Process?

According to the Project Management Institute, a process

can be defined as:

Project Management Process Illustration

Information

Technology

Qualitative & Quantitative Tools

Outputs of Other Processes

Material Inputs

Stakeholder Interaction

Requests, Instructions

1 2 3 N

Transformation of Inputs to Outputs

TIME & COST

PROCESS STEPS

Project Business Case

Opt. Project Portfolio Mix

Project Feasibility Report

Project Master Plan(or Subsidiary Plans)

Customer Change Request

Revised Cost and Schedule Baseline

Project Status Report

Process Maturity, Methodology, Benchmarking and Optimization,

Constraints, Templates, Infrastruc-ture, Policy and Cultural Framework

PROCESS INPUTS(Typical)

PROCESS OUTPUTS(Selected Examples)

Quality of Process Inputs, Knowledge, Competence,

Experience, Insight, Ability, Communication,

Cooperation, Coordination

Process Effectiveness and Efficiency

Project management uses processes extensively to

produce “deliverables” (see small sample above). Some processes are quite complex and have a high risk of error.

Given that the output of one project management process normally becomes input to another, deficiencies in one or more processes will consequently reverberate across the entire

process chain

Project Management Process Diagramme(Screening A Project)

Project Proposal Idea

Data Collection and Back-Up

Need / Strategic Fit/ ROI / Payback Risk

Self-Evaluation of Project Criteria

Abandon

Priority Team Evaluates Proposal

and Reviews Portfolio for Risk

Balance

Return for More Information

Periodic assessment of Priorities

Assign Priority, resources, Project

Manager & Evaluate Progress

Hold for Resources

Reject

Organization

Organization

Organizational Objective

Organization

Organizational Objective

Organizational Use of

Technology

Focus on Processes Systematically

All project management processes should be identified and described, with each process task

carefully analyzed in terms of its input(s) and output(s) plus its estimated cost, duration and risk

factors, graphically illustrated and subsequently documented for reference by project stakeholders

in a “project process directory”.

This directory should be periodically revised and the processes therein modified, simplified or,

where necessary, ‚reengineered‘ to improve their effectiveness and efficiency.

WHAT IT ISProject management is the

discipline of planning, organizing, securing and managing resources to bring about the successful completion of specific project goals and objectives.

What is a project? A definitive deliverable (objective and

goal) Takes time Consumes resources A definite starting date A definite stopping date Consist of processes Proceeds through milestones Utilizes teams Based on personal integrity and trust

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INTRODUCTION A project is a temporary endeavor, having a

defined beginning and end (usually constrained by date, but can be by funding or deliverables),undertaken to meet unique goals and objectives, usually to bring about beneficial change or added value. The temporary nature of projects stands in contrast to business as usual (or operations),which are repetitive, permanent or semi-permanent functional work to produce products or services.

OBJECTIVESPRIMARYscope, time, and cost. SECONDARYoptimize allocate and integration of inputs necessary to meet pre-defined objectives.

Project Management: Official Definition

A project is a temporary endeavor undertaken to create a unique product or service. It implies a specific timeframe a budget unique specifications working across organizational boundaries

Why is this, Project Management, more difficult today?

Change

Business Dimension Change

Business Environment

Project Management (PM)

Project ManagementProject management is about organization

Project management is about changing people’s behavior

Project management is about decision making

Project management is about creating an environment

conducive togetting critical projects done!

Why Projects Fail Failure to align project with

organizational objectives Poor scope Unrealistic expectations Lack of project management Inability to move beyond individual and

personality conflicts Politics

Why Projects Succeed! Good project charter Strong project management The right mix of team players Good decision making structure Good communication Team members are working toward

common goals

If you want to get things done, you need a good blend ofBusiness knowledgePeople management Knowledge of organizational

politicsarea of technical expertise

What is the record in IT project management in USA? Until 1996, less than 25% of IT projects

were “successful” After 1998 roughly 30% of IT projects were

successful More than 80 billion a year wasted on

terminated projects in the 90’s For projects that were not completed on

time, they were 225% over their intended completion date

According to the CHAOS 1995 Report

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Team management

Those are the people that make things happen!

Destructive Team Member Profiles The Tank: a person who dominates a

discussion or issue by brute force of personality. When they present, they speak as an authority. When dealing with a project and defining new solutions, these types of people can be destructive to the process of open discussion and consideration of alternatives. Solution: thank them for their opinion, then

ask if there are some other perspectives from other team members.

Destructive Team Member Profiles The Grenade: The conversation will be

going along fine and all of the sudden, a team member lobs out a discussion-ending comment. Solution: Address the comment head on

and suggest that the grenade thrower refrain from comments that will upend conversation of alternatives.

Destructive Team Member Profiles The Think-they-know-it-all: Much like

the tank. Solution: Same as Grenade.

Destructive Team Member Profiles The Maybe Person: This is the person

who cannot commit to any position or issue. They take refuge in ambiguity. Solution: On a project team, you need to

help them commit. Give them simple alternatives and ask them to decide.

Destructive Team Member Profiles The No Person: This is your general

naysayer. Nothing will work, no matter what. Solution: Help to see that no is not an

option. Define the alternatives.

Destructive Team Member Profiles The Sniper: This is a destructive force

in a team. The Sniper tenders up negative comments within the team that negate or attack ideas. Solution: address the behavior

immediately and let them know that comments like that are unacceptable based on team norms.

Destructive Team Member Profiles The Yes Person: While less negative,

this person is so agreeable that they negate their influence through a lack of objective analysis. They are more eager to please than they are to offer objective alternatives. Solution: Point out that you appreciate

their positive outlook, but they need to explore options more thoroughly if they want to gain credibility with the group.

Destructive Team Member Profiles The Traitor: Team member speaks very

little in meetings, or sometimes disagrees, and spends times out of meetings lobbying for alternative positions or arguing decisions made by the team Solution: Establish team rules early that state

that issues are dealt with in team meetings and this behavior is not acceptable. When it is uncovered, PM addresses it in the meeting or, if necessary, in private

Destructive Team Member Profiles The End Arounder: Team member who

goes around team and PM to another supervisor or administrator and complains, lobbies or takes alternative positions to team. Solution: Identify the behavior in team

development and make it known it is not acceptable. Get all administrators and supervisors to suppress the behavior if it occurs. PM should call it when it’s seen and the Project Sponsor should nip it in bud.

Providing Feedback to Team Members Praise in public Punish in private

History Project Management developed from

several fields of application including civil construction, engineering, and heavy defense activity

Henry Gantt, called the father of planning and control techniques, Gantt chart as a project management tool

Henri Fayol, 5 management functions, work breakdown structure (WBS) and resource allocation.

The evolution or development of project management can be divided into five periods.

Prior to 1950 managed on an ad hoc basis not responsible for the project failure 1950′S to 1960′S tools including CPM and PERT were

introduced Projects In defense

1960 to 1979 technology revolution Material Requirements Planning (MRP) were also

introduced the Project Management Institute (PMI) was formed 1980 to 1990 implementation of TQM Project Management Body of Knowledge (PMBOK

Guide) competitiveness and customer expectations

empowerment, re-engineering, and scope change control and risk management.

2000 to Present Use of internet and intranet project management became a major challenge Concept of “Six Sigma” many tools & techniques and worldwide standardsWhilst the 1980's were about quality and the 1990's were all about globalisation, the 2000's are about velocity

Characteristics of projects Objectives Life span Single entity Team work Life cycle Uniqueness Change Successive principle Made to order Unity in diversity High level of sub-contracting Risk and uncertainty

Without PM Objectives not properly defined and agreed; Lack of communication and stakeholder

management; Outcomes and/or benefits not properly defined in

measurable terms; Lack of quality control; Poor estimation of duration and cost; Inadequate definition and acceptance of roles

(governance); Insufficient planning and coordination of resources.

Some things we do poorly in projectsEstablishing requirements for the

project deliverablePlanning the proposed projectEstimating step (TASK,

ACTIVITY) )durationsBudgeting the proposed projectExecuting

Don’t understand change management Not communicating

Managing subcontractorsMonitoring project progress

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Classification of projects According to geographical areaNational International According to industrializationIndustrial Non industrial According to technology usedNon- conventional/ R and D to conventionalHigh technology to low technology

According to size of projectsMegaMajorMediumMini According to nature of strategyNew productExpansionModification

Project Dynamics:The Triple Constraints

ScopeQuality

Cost Time

Resources

Project phases

Who, what, when, and why for projects A defined and sponsored project scope A roadmap for deliverables Documented roles and responsibilities A common language for communication relative to project phases,

tracking and reporting Processes to enable communication, accomplish the work, facilitate

issue resolution and risk mitigation

Project management processes and tools help the project manager and team to organize, document, track and report on project tasks and progress.

Project management processes and tools help the project manager and team to organize, document, track and report on project tasks and progress.

Questions Who, for whom, with whom, etc.? What? Why? Where? When? How

Concrete objectivesSMART:SpecificMeasurableAchievableRealisticTimed

1.Project conceptualizingo Project name, location, durationo Rationale (stating needs)o Organisation’s priorities, funder’s

prioritieso General aimo Concrete/specific objectiveso Methodology/strategyo Plan of activities

2. Project planning and budgetingo Main outcomeso Expected resultso Added value of the projecto Evaluation criteria, techniqueo Sustainability, multiplicatory effectso Resources: financial (budget), material

(budget), human (team and partners)o Publicityo Information about the organisation

(contact info)

3. Implementation Implementing and executing

activities for Managing resources: human, material/technical, financial, time

communication Team work Book-keeping and accounting Process documentation, records Continuous monitoring, feedback

4. Evaluation Final evaluation vs. continuous monitoring Using originally planned methods Summing up results, objectives, activities,

fulfilled expectations Formal documentation (reports,

brochures) Internal lessons documented (manuals) Acknowledgments Closing accounting Follow-up

The Stages in the Project Management Lifecycle

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STAGE 1:Conceptualizing-

and-Defining

STAGE 2:Planning-and-

Budgeting

STAGE 3:Executing

STAGE 5:Terminating-and-

Closing

STAGE 4: Monitoring-and-Controlling

STAGE 4: Monitoring-and-Controlling

Project Framework

Risk & Issue Management

Sponsor ManagementCommunication Management

Initiate Prepare Execute & Control

Close

StartupStartupDefinition / Scope /

Requirements

Definition / Scope /

Requirements

Planning and

Resource Allocation

Planning and

Resource Allocation

Track & Control

Track & Control

ReportingReporting

ReviewReview

Completion &Assessment

Completion &Assessment

• Scope Management• Workplan Management• Resource Management

(Time, Cost, People)• Deliverable Mgmt• Quality Management• Transition Plan• Int/Ext Vendor

Management

Basic Project Management: Five Steps

The following steps comprise the project management roadmap. The steps may overlap and be iterative:

1. Startup2. Define and Confirm Scope/Requirements3. Develop Plan and Secure Resources 4. Track, Control, Report and Review5. Completion and Assessment

Communication, Risk and Issue Management, and Sponsor Management are essential throughout the project -- both planned and spontaneous.

Communication, Risk and Issue Management, and Sponsor Management are essential throughout the project -- both planned and spontaneous.

Step 1: Startup

As you engage potential team members and stakeholders, project initiation activities establish the scope, goals and preliminary plan.

Key Activities Document and/or confirm scope and assumptions Confirm sponsorship and funding Draft high level plan Identify who needs to provide input into plan and resources

Checklists to consider Project Startup and Sponsor

Templates to consider Project Scope, Gantt Chart and Resource Planning Project role descriptions

Step 2: Confirm Scope and Define Requirements

Engage your sponsor and business stakeholders to confirm the project scope and clarify business requirements. It is also the time to identify the technical requirements with the appropriate providers (as necessary).

Key Activities Confirm baseline project scope with Sponsor Define, document and confirm business and technical requirements Identify impact on business processes Identify what’s not in scope

Checklists to consider Sponsor

Point to consider Project Scope

Step 3: Develop Plan and Secure Resources

The initial detailed project plan will provide a project roadmap and baseline for all team members and stakeholders. As the project evolves, the plan may need to refined.

Key Activities Identify who needs to provide input into plan Develop preliminary detailed plan based on scope, requirements, etc. Identify skills sets needed to accomplish tasks Develop communication plan Identify and secure resources Conduct meeting with Sponsor Conduct risk assessment with team members Identify the criteria for stopping the project Update detailed plan

Step 3: Develop Plan and Secure Resources (cont’d)

Checklists to consider Project Planning Deliverable and Quality Assurance Transition

Points to consider Activity list Detailed project plan Project Resource Plan Communication matrix Project Risk Assessment

Step 4: Track, Control, Reporting and ReviewOnce you kick off the project, the track, control, reporting and review activities

will be iterative and comprise the bulk of the project management tasks.

Key Activities Implement communication plan

Hold regular team meetings to: share progress/status identify/resolve issues

Hold formal sponsor updates Keep your manager informed Keep stakeholders informed

Monitor progress and report status Monitor risks and take action as necessary Identify and manage issues Manage scope and track changes Update plan as needed

Tracking the project will give you the information necessary to assess the health of the project, as well as give you the information for reporting status to the sponsors and stakeholders.

Tracking the project will give you the information necessary to assess the health of the project, as well as give you the information for reporting status to the sponsors and stakeholders.

Step 4: Track and Control, Report and Review (cont’d)

Checklists to Consider Sponsor Transition

Points to Consider Project scope change Communication matrix Project status snapshot Detailed Project Plan Risk Assessment Issue Log

A quick review of the sponsor checklist may help you prepare for your sponsor and stakeholder update meetings.

A quick review of the sponsor checklist may help you prepare for your sponsor and stakeholder update meetings.

Step 5: Completion and Assessment

The following activities will help to ensure a smooth transition and leverage lessons learned for future projects.

Key Activities Develop a cutover plan or checklist, if applicable Complete documentation, training, and knowledge transfer Conduct final project review Conduct sponsor sign-off Transition to support/service organization or next project team Close-out final tasks and issues Conduct lessons learned Celebrate success

Accomplishing what the project set out to do is a success.Accomplishing what the project set out to do is a success.

What are the criteria for success in Project management? Completion on time Completion within budget Completion with full functionality

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Who are the STAKEHOLDERS?? Customers Project Sponsor Users Project team Support staff Suppliers Opponents People involved-in or affected by

project activities

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Advantages of Project Management Better control of human resources Improved customer relations Shorter development times, lead times Lower costs Higher quality Higher profit margins Improved productivity

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New Business Environment Change – at ever faster pace Globalization/Internet Intense Competition leading to

Downsizing, flattening Team approach, empowerment E-Commerce, outsourcing

New Project Management Need to enhance traditional PM to:

become more customer focused utilize new tools & softer skills empower/select project managers

decision making profit-loss responsibilities entrepreneurial approach business know-how

W Edwards DemingA process approachContinuous

improvementSmall steps

Deming’s 14 Points1.Constancy Of Purpose2.The New Philosophy3.Cease Dependence On Inspection 4.End “Lowest Tender” Contracts5.Improve Every Process 6.Institute Training On The Job7.Leadership 8.Drive Out Fear 9.Break Down Barriers 10.Eliminate Exhortations /Slogans 11.Eliminate Arbitrary Numerical Targets 12.Permit Pride Of Workmanship 13. Education 14.Top Management Commitment

Risk management Risk management is concerned with

identifying risks and drawing up plans to minimise their effect on a project.

A risk is a probability that some adverse circumstance will occur Project risks affect schedule or resources; Product risks affect the quality or

performance of the project being developed;

Business risks affect the organisation developing or procuring the project.

Project risksRisk Affects Description

Staff turnover Project Experienced staff will leave the project before it is finished.

Management change Project There will be a change of organisational management with different priorities.

resources unavailability Project Resources that is essential for the project will not be delivered on schedule.

Requirements change Project and product

There will be a larger number of changes to the requirements than anticipated.

Specification delays Project and product

Specifications of essential interfaces are not available on schedule

Size underestimate Project and product

The size of the system has been underestimated.

CASE tool under-performance

Product CASE tools which support the project do not perform as anticipated

Technology change Business The underlying technology on which the system is built is superseded by new technology.

Product competition Business A competitive product is marketed before the system is completed.

The risk management process Risk identification

Identify project, product and business risks; Risk analysis

Assess the likelihood and consequences of these risks;

Risk planning Draw up plans to avoid or minimise the

effects of the risk; Risk monitoring

Monitor the risks throughout the project;

The risk management process

Risk avoidanceand contingency

plans

Risk planning

Prioritised risklist

Risk analysis

List of potentialrisks

Riskidentification

Riskassessment

Riskmonitoring

Risk identification Technology risks. People risks. Organisational risks. Requirements risks. Estimation risks.

Risks and risk typesRisk type Possible risks

Technology The database used in the system cannot process as many transactions per second as expected. components that should be reused contain defects that limit their functionality.

People It is impossible to recruit staff with the skills required. Key staff are ill and unavailable at critical times. Required training for staff is not available.

Organisational The organisation is restructured so that different management are responsible for the project. Organisational financial problems force reductions in the project budget.

Tools

Requirements Changes to requirements that require major design rework are proposed. Customers fail to understand the impact of requirements changes.

Estimation The time required to develop the project is underestimated. The rate of defect repair is underestimated. The size of the project is underestimated.

Risk analysis Assess probability and seriousness of

each risk. Probability may be very low, low,

moderate, high or very high. Risk effects might be catastrophic,

serious, tolerable or insignificant.

Risk analysis (i)Risk Probability Effects

Organisational financial problems force reductions in the project budget.

Low Catastrophic

It is impossible to recruit staff with the skills required for the project.

High Catastrophic

Key staff are ill at critical times in the project. Moderate Serious

Project components that should be reused contain defects which limit their functionality.

Moderate Serious

Changes to requirements that require major design rework are proposed.

Moderate Serious

The organisation is restructured so that different management are responsible for the project.

High Serious

Risk analysis (ii)Risk Probability Effects

The database used in the system cannot process as many transactions per second as expected.

Moderate Serious

The time required to develop the project is underestimated.

High Serious

Tools cannot be integrated. High Tolerable

Customers fail to understand the impact of requirements changes.

Moderate Tolerable

Required training for staff is not available. Moderate Tolerable

The rate of defect repair is underestimated. Moderate Tolerable

The size of the project is underestimated. High Tolerable

Risk planning Consider each risk and develop a strategy

to manage that risk. Avoidance strategies

The probability that the risk will arise is reduced;

Minimisation strategies The impact of the risk on the project or

product will be reduced; Contingency plans

If the risk arises, contingency plans are plans to deal with that risk;

Risk management strategies (i)

Risk Strategy

Organisational financial problems

Prepare a briefing document for senior management showing how the project is making a very important contribution to the goals of the business.

Recruitment problems

Alert customer of potential difficulties and the possibility of delays, investigate buying-in components. Make HR process smooth.

Staff illness Reorganise team so that there is more overlap of work and people therefore understand each other’s jobs.

Defective components

Replace potentially defective components with bought-in components of known reliability.

Risk management strategies (ii)Risk Strategy

Requirementschanges

Derive traceability information to assess requirementschange impact, maximise information hiding in thedesign.

Organisationalrestructuring

Prepare a briefing document for senior managementshowing how the project is making a very importantcontribution to the goals of the business.

Databaseperformance

Investigate the possibility of buying a higher-performance database.

Underestimateddevelopment time

Investigate buying in components, investigate use of aprogram generator

Risk monitoring Assess each identified risks regularly to

decide whether or not it is becoming less or more probable.

Also assess whether the effects of the risk have changed.

Each key risk should be discussed at management progress meetings.

Risk indicatorsRisk type Potential indicators

Technology Late delivery of hardware or support software, many reportedtechnology problems

People Poor staff morale, poor relationships amongst team member,job availability

Organisational Organisational gossip, lack of action by senior management

Tools Reluctance by team members to use tools, complaints aboutCASE tools, demands for higher-powered workstations

Requirements Many requirements change requests, customer complaints

Estimation Failure to meet agreed schedule, failure to clear reporteddefects

Key points Good project management is essential for

project success. The intangible nature of software causes

problems for management. Managers have diverse roles but their most

significant activities are planning, estimating and scheduling.

Planning and estimating are iterative processes which continue throughout the course of a project.

Key points A project milestone is a predictable state

where a formal report of progress is presented to management.

Project scheduling involves preparing various graphical representations showing project activities, their durations and staffing.

Risk management is concerned with identifying risks which may affect the project and planning to ensure that these risks do not develop into major threats.