Project Management (Finals)

Project

• an endeavor to produce/accomplish the following below through a unique set of interrelated tasks and an effective utilization of resources.

• begins when a need, problem, or opportunity is identified.

• ends when the project objectives has been achieved.

Threat Environment

• Refers to the external and internal conditions, factors, and entities that could pose potential risks or dangers to an individual, organization, or system. It includes the various threats, vulnerabilities, and hazards that could affect security, operations, and safety.

Product

• can either be a component of another item or an end item itself

A capability perform a service

• business function supporting a production or distribution

Result

• Refers to an output from performing project management processes and activities

Overview of a Project

• It has a unique purpose.

• It is temporary.

• It is developed using progressive elaboration.

• It requires resources that are often from various areas.

• It should have a primary customer or sponsor.

• It involves uncertainty.

Triple Constraints

• SCOPE - “ What work should be done?”

• TIME - “ How long will it take to complete?”

• COST - “How much does it cost?

Project Management

Includes the knowledge, skills, methods, techniques, and tools needed in planning and managing project work.

9 Knowledge Areas

1. Scope Management

2. Time Management

3. Cost Management

4. Quality Management

5. Project Integration Management

6. Human Resource Management

7. Communications Management

8. Risk Management

9. Procurement Management

Stakeholders

• involved in or affected by project activities

• include project sponsor, project team, support staff, customers, users, suppliers, and opponents of the project

• their needs and expectations are necessary in the beginning and all through the life of a project

Project Management Knowledge Areas

• specify the key competencies that must be developed by project managers

• four core knowledge areas that can lead to specific project objectives are identified as project scope, time, cost, and quality management

• four facilitating knowledge areas through which the project objectives are achieved include human resource, communications, risk, and procurement management

Project Management Tools and Techniques

• aid project managers and their teams in implementing the nine knowledge areas

• examples of tools and techniques used in time management include Gantt charts, project network diagrams, and critical path analysis

Project Success Criteria

• project met scope, time, and cost goals

• project satisfied the customer/sponsor

• results of the project met its main objectives

Project Success Factors

• Executive support

• User involvement

• Experienced project manager

• Clear business objectives

• Minimized scope

• Standard software infrastructure

• Firm basic requirements

• Formal methodology

• Reliable estimates

• Other criteria, such as small

• milestones, proper planning,

• competent staff, and ownership

Portfolio

Is a collection of projects or programs and other works that are grouped together to facilitate an effective management of that work to meet strategic business objectives.

Portfolio Management

• the centralized management of one or more portfolios that includes identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other work-related in order to achieve specific strategic business objectives

• ensures that projects and programs are reviewed to prioritize the allocation of resources, and that the management of portfolio is consistent with and aligned to the strategies of the organization

Program

• Refers to a group of related projects that is managed in a coordinated way to acquire benefits not available from managing them individually

• It can contain elements of related work that is outside the distinct projects’ scope in the program

Common Programs in IT field

• Infrastructure

• Applications development

• User Support

Infrastructure

• includes projects that provide wireless Internet access, hardware and

• software upgrade, and develop and manage corporate IT standards

Applications development

• includes projects such as ERP system update, purchase of a new off-the-shelf

• billing system, or additional feature for a customer relationship management system

User Support

• includes projects that provide better e-mail system or develop technical

Program Management

• the centralized coordinated management of a program to attain its  strategic  objectives and benefits

• focuses on the project interdependencies and it aids in determining the best  approach for them to be managed

• Resolving resource constraints and/or conflicts affecting multiple project within the program

• Aligning organizational/strategic direction affecting project and program goals and objectives

• Resolving issues and change management within a shared governance structure

History of Project Management

• The Manhattan Project was the 1st project that used modern project management techniques.

• The Gantt chart, network diagram, and critical path analysis were the project scheduling tools developed in the early 1900s.

• Today, project management is used in some form in virtually all organizations and disciplines, and project management software is making specialized project management techniques easier to use

Project Manager

• in charge of managing a specific project, and is expected to meet the approved objectives of a project, including project scope, cost, and time

• has the overall responsibility for planning, organizing, integrating, managing, leading, decision making, communicating, and building supportive environment for the project

• Leads the project by establishing direction, aligning people and motivating, and inspiring

• Balances quality, availability of resources, and risk management

• Schedule appropriate feasibility reviews to ensure that the project is realistic, necessary, and well defined

• Determines the schedules, resource plans, and budgets needed to achieve project objectives

Skills of Project Manager

• Project Management Skills

• People Skills

• Integration Skills

• Technical Skills

• Knowledge of the organization

Project Management Skills

• should have an understanding of the many facets of the business aspect of running a project and expertise in the areas of organization, communication, finance, and human resources

People Skills

• formal authority and persuasion skills

• must be able to address and solve problems within the team, as well as those that occur outside the team

• must be able to motivate and sustain people

Integration Skills

• integrate the phases of the project, such as planning, execution, reporting, and management

• the more complex the project, the greater need for integration

Technical Skills

• technical expertise is necessary to identify possible problems

• must focus on managing the project and allowing the team members do the technical work

• if lack of these skills, training is one option; being mentored or coached by a more experienced individual is another

Knowledge of the organization

• should understand the company’s culture, policies, politics, and personalities

• must also know the personalities, needs, and desires of the people in the organization

Project Life Cycle

• Collection of project phases

Project Phases

• collection of logically-related project activities, usually culminating in the completion of a major deliverable​

• completed in sequential manner, but can overlap depending on the situation of the project​

• vary by project or industry

• concept, development, implementation and close-out

• A project should successfully pass through each of the project phases before continuing to the next. ​

• Because the organization usually commits more money as a project continues, a management review should occur after each phase to evaluate progress, likely success, and continued compatibility with organizational goals.​

Project Feasibility

• Concept

• Development

Project Acquisition

• Implementation

• Close-out

Concept Phase

• managers describe the project briefly — they create a summary plan for the project

• preliminary cost estimate (or rough cost estimate) is developed, and an overview of the work involved is created​

• project work is usually defined in a work breakdown structure (WBS)​

Development Phase

• more detailed project plan​

• more accurate cost estimate​

• more thorough WBS​

Implementation Phase

• creates definitive or very accurate cost estimate​

• delivers the required work​

• provides performance reports to stakeholders​

Close-out Phase

• all of the work is completed​

• there should be customer acceptance of the entire project​

• project team should document their experiences on the project in a lessons-learned report​

Systems Development Life Cycle (SDLC)

• framework for describing the phases involved in developing and maintaining information systems​

• include waterfall model, spiral model, incremental build model, the Rapid Application Development (RAD) model, and prototyping model​

Predictive Life Cycle

• the scope of the project can be clearly communicated and the schedule and cost can be predicted​

Adaptive Software Development (ASD) Life Cycle

• presumes that software development follows an adaptive approach since the requirements cannot be predicted early in the life cycle​

• includes attributes such as:​

  • Mission driven and component-based projects​

  • Use of time-based cycles to meet target dates​

  • Use of iterative approach in developing requirements​

  • Risk-driven development​

Organization Frames

• Political Frame

• Symbolic Frame

Political Frame

• attends to the organizational and personal politics which take in the form of competition among groups or individuals​

• assumes that organizations are coalitions composed of mixed individuals and interest groups​

• key issues are conflict and power​

• emphasize on tactics and strategies​

Symbolic Frame

• focuses on symbols and meanings related to events​

• issues related are the meaning of work in high technology environments and the image of IT workers as being either key patterns in the business or a necessary cost​

Organization Structures

• Functional Organization

• Project Organization

• Matrix Organization

Functional Organization

• used for routine work functions and maintenance of quality and work standards​

• main criticism is the lack of built-in employee recognition, measurement, and reward for project performance​

Project Organization

• designed for executing projects​

• specifically customized to meet the demands of complex projects through isolating unique work and maintaining a strong focus on completing the project​

• main criticisms are its inefficiency in technology and use of resources​

Matrix Organization

• represents the middle ground between functional and project structures​

• used when there are multiple projects being coordinated at once​

Cultures and styles are referred to as cultural norms

• common knowledge on how to approach the work that needs to be done, what ways are acceptable to get the work done, and who has influence in facilitating the work getting done​

The unique cultures that manifest in most organizations in various ways include, but not limited to the following:​

• Shared visions, values, norms, beliefs, and expectations​

• Policies, methods, and procedures​

• View of authority relationships​

• Work ethic and work hours​

Project Integration Management

refers to the processes required to ensure that the various elements of the project are properly coordinated. In short, itis the tying together of all of the other aspects involved in a project to make it a success.

Strategic Planning and Project Selection

Identifying long-term objectives through the following:

• analyzing the organization’s strengths and weaknesses;

• studying opportunities and threats in the business environment;

• predicting future trends; and

• projecting the need for new products and services.

SWOT Analysis

• Strengths, Weaknesses, Opportunities, and Threats

• used as aid in strategic planning

Business Area Analysis

• outlines documents the business processes that are vital to achieving strategic goals, sand aids in discovering which ones could most benefit from IT

Methods for Selecting Projects

• Focusing on broad organizational needs

• Categorizing IT projects

• Performing NPV or other financial analyses

• Using weighted scoring model

• Implementing balanced scorecard

Focusing on broad organization needs

• Top managers need to focus on achieving the various needs of the organization when deciding what projects to undertake, when to undertake them, and to what level.

• One method for project selection based on broad organizational needs is determining whether they meet the first three important criteria: need, funding, and will.

Categorizing IT Projects

• Problems

• Opportunities

• Directives

Problems

• These are unwanted situations that prevent an organization from achieving its goals.

Opportunities

• These are chances to improve the organization.

Directives

• These are new requirements imposed by management, government, or some external influence.

Net Present Value

• the method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the Net Present Value (NPV) present point in time

A positive NPV means the return from a project exceeds the cost of capital - the return available by investing the capital elsewhere.

• Determine the cash inflows and outflows for the project.

• Determine the discount rate.

  • A discount rate is the minimum acceptable rate of return on an investment. It is also referred to as the capitalization rate or opportunity cost of capital.

• Calculate the NPV.

  • The mathematical formula for NPV is: NPV = Σt=0…n At / (1+r)t where t =year of the cash flows, A = amount of cash flow each year, and r =discount rate.

Return of Investment (ROI)

• income divided by investment

• required rate of return for projects

• the minimum acceptable rate of return on an investment

• based on the return that the organization could expect to receive else where for an investment of comparable risk

• formulas for calculating financial ROI for an IT project or any other investment

Payback Period

Is the amount of time it will take to recoup the net amount invested in a project in the form of net cash inflows.

Payback Analysis

• Determines how much time will lapse before accrued benefits overtake accrued costs.

When does Payback occurs?

• It occurs when the net discounted cumulative benefits and costs reach zero.

Weighted Scoring Model

• Is a tool that provides a systematic process for selecting projects based on various criteria:

  • Meeting broad organizational needs;

  • Addressing problems, opportunities, or directives;

  • The amount of time it will take to complete the project;

  • The overall priority of the project; and

  • The projected financial performance of the project.

These are needed to identify the criteria required to the project selection process:

• Support for key business objectives

• Has strong internal sponsor

• Has strong customer support

• Uses realistic level of technology

• Can be implemented in one year or less

• Provides a positive net present value

• Has low risk in meeting scope, time, and cost objectives

Weights

Indicate how much you value each criterion or how important each criterion is.

Who developed a methodology called balanced scorecard?

Drs. Robert Kaplan and David Norton

Balanced Scorecard

• Aids in the selection and management of projects in alignment with the business strategy.

• It is used to convert an organization’s value drivers, such as , innovation, operational efficiency, and financial performance, into a series of defined metrics.

Metrics

were analyzed and recorded by the organizations to determine how well the projects have helped them in achieving strategic goals

Project Charter: INPUTS

1. Project statement of work

2. Business case

3. Contract

4. Enterprise environmental factors

5. Organizational process

Project Charter: TOOLS & TECHNIQUES

1. Expert Judgement

Project Charter: OUTPUT

1. Project Charter

Statement of Work (SOW)

• Is a narrative description of products and services to be delivered by the project.

• References the business need, product scope description and strategic plan

Business Case

Is a document that provides the required information from a business perspective to determine whether or not the project is worth investing for.

Contract

Specifies if the project is being done for an external customer.

The enterprise environmental factors that can influence the development of project charter include, but are not limited to:

• Government or industry standards

• Organization infrastructure

• Marketplace conditions

The organizational process assets that can influence the development of project charter include, but are not limited to:

• Organizational standard processes, policies, and standardized process definitions to be used in the organization

• Project charters templates

• Historical information and lessons learned knowledge base

Expert Judgement

Is used to evaluate the inputs that are used to develop the project charter.

Project Charter

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

• Allows a project manager to use the organizational resources to complete the project

• Should be signed by key project stakeholders to acknowledge agreement on the need for and the intent of the project

• Inputs, tools and techniques, and outputs

• It specifies the following:

  • business needs;

  • current understanding of the customer’s needs; and

  • the new product, service, or result

Project Management Plan

• It is a formal document used to coordinate all project planning documents and help guide a project’s execution and control.

• It documents project planning assumptions and decisions regarding choices, facilitate communication among stakeholders, define the content, extent, and timing of key management reviews, and provide a baseline for progress measurement and project control

• It is dynamic, flexible, and subject to change when the environment or project changes

• It assist the project manager in leading the project team and assessing the project status

• Its common elements are:

  • introduction or overview of the project

  • description of how the project is organized

  • management and technical processes used on the project

  • sections describing the work to be done, schedule, and budget information

Stakeholder Analysis

Documents information such as key stakeholder’s names and organizations, their roles on the project, unique facts about each stakeholder, their level of interest in the project, their influence on the project, and suggestions for managing relationships with each stakeholder.

Project Execution

• Involves managing and performing the work described in the project management plan

• Project manager and the project management team direct of the planned project activities, and manage the various technical and organizational interfaces that exist within the project

• The main function of creating project plans is to guide project execution.

• Having a good plan would result to good products and it should document the good work results included in it.

• o improve the coordination between project plan development and execution, follow the rule: Those who will do the work should plan the work.

Tools and Techniques in Project Execution

• Project management methodology

• Project management information systems

Project management methodology


It follows a methodology describing not only what to do in managing a project, but how to do it

Project management information systems


Various organizations are using powerful enterprise project management systems that can be accessed via the internet

Monitoring and Controlling Project Work


• It involves the following to determine what process improvements can be made:

  • collecting, measuring, and disseminating

  • performance information;

  • assessing measurements; and

  • analyzing trends

Project Performance

Should be monitored continuously by the project team to assess the overall condition of the project and to identify the areas that require special attention.

Tools and Techniques for Monitoring and Controlling Projects

• Project management methodology

• Project management information systems

• Expert judgment

• Earned value management

Inputs necessary to monitor and control project work:

• Project management plan

• Work performance information

• Performance reports

• Change requests

Outputs in Monitoring and Controlling Project Work:

• Corrective actions

• Preventive actions

Integrated Change Control


It identifies, evaluates, and manages changes throughout the project life cycle

Objectives of Integrated Change Control

• Influencing the factors that create changes to ensure that changes are beneficial

• Determining that a change has occurred

• Managing actual changes as they occur

Inputs of Integrated Change Control

• Project management plan

• Work performance information (in a form of performance reports)

• Requested changes

• Recommended preventive and corrective actions

• Recommended defect repair

• Deliverables

Outputs of Integrated Change Control

• Approved and rejected change requests

• Approved corrective and preventive actions

• Approved and validated defect repair

• Deliverables

• Updates to the project management plan

Change Control System

• Refers to a formal, documented process that describes when and how the official project documents may be changed

• It describes the people who are authorized to make changes, the for the change, and any automated or manual tracking systems that will be used by the project

Control Board (CCB)

• It is a formal group of people who are responsible for approving or rejecting changes on a project.

• It provides guidelines for the following:

  • preparing change requests

  • evaluating change requests

  • managing the implementation of approved changes

• It consumes time in making decisions on proposed changes because they often meet only once a week or once a month and may not be able to make decisions in one meeting.