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Software Project Management

Handouts (Part A)

Following are the handout prepared for SPM (SEN 410) students of BS. This is first draft version where most of
text/material have been taken from reference books mentioned in course outline /syllabus. There may be errors and
mistakes in these handouts which would be rectify in final updated version.

1.1 Introduction

All of us have been involved in projects, whether they be our personal projects or in business and industry. Project
management has been practiced since early civilization. It was in the 1950’s that organizations started to systematically
apply project management tools and techniques to complex projects. As a discipline, Project Management developed
from several fields of application including construction, engineering, and defense activity. Two forefathers of project
management are commonly known: Henry Gantt, called the father of planning and control techniques who is famous
for his use of the Gantt chart as a project management tool; and Henri Fayol for his creation of the five management
functions which form the foundation of the body of knowledge associated with project and program management. The
1950s marked the beginning of the modern Project Management era. Project management became recognized as a
distinct discipline arising from the management discipline.
If we talk about project, obtaining a BS Degree is a simple example of project. In the broadest sense, a project is a
specific, finite task to be accomplished. Any activity that results in a deliverable or a product is also called project.
Moreover, projects always begin with a problem. When the project is finished it must be evaluated to determine
whether it satisfies the objectives and goals. Thus following is definition of project

A project is “a temporary endeavor undertaken to create a unique product, service, or result.”

Examples of projects include:


 Developing a new product or service.
 Effecting a change in structure, staffing, or style of an organization.
 Designing a new transportation vehicle.
 Developing or acquiring a new or modified information system.
 Constructing a building or facility.
 Building a water system for a community in a developing country.
 Running a campaign for political office.
 Implementing a new business procedure or process.

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1.2 Project and Operation

Organizations perform work (task) to achieve a set of objectives. Generally, work can be categorized as either projects
or operations, although the two sometimes overlap.
They share many of the following characteristics:
• Performed by people
• Constrained by limited resources
• Planned, executed, and controlled.

Projects and operations differ primarily in that operations are ongoing and repetitive, while projects are temporary
and unique. The objectives of projects and operations are fundamentally different. The purpose of a project is to attain
its objective and then terminate. Conversely, the objective of an ongoing operation is to sustain the business.

Projects Operations

• To attain its objectives and terminate • To sustain the business


• Create own charter, organization, and goals • Semi permanent charter, organization, and goals
• Catalyst for change • Maintain status quo
• Unique product or services • Standard product or services
• Heterogeneous teams • Homogeneous teams
• Start and end date • Ongoing
Examples Examples
• Writing and publishing a paper • Responding to customers’ requests
• Hiring a sales man • Writing a letter to a Prospect
• Arrangement for a conference • Meeting with an employee
• Opening for a new shop • Writing a progress update memo

Software Project

Software is the program and all associated documentation and configuration data which is needed to make these
programs operate correctly. A Software Project is the complete procedure of software development from requirement
gathering to testing and maintenance, carried out according to the execution methodologies, in a specified period of
time to achieve intended software product. Projects can be large or small and involve one person or thousands of
people. They can be done in one day or take years to complete. IT projects involve using hardware, software, and
networks to create a product, service, or result. Examples of IT projects include the following:

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Examples of IT/ Software Projects

• A team of students creates a smartphone application and sells it online.


• A small software development team adds a new feature to an internal software application for the finance
department.
• A college upgrades its technology infrastructure to provide wireless Internet access across the whole campus.
• A company develops a new system to increase sales force productivity and customer relationship
management that will work on various laptops, smartphones, and tablets.

Characteristics/ Attributes of Project

Following are attributes / characteristics of Project.


• Temporary
o Definite beginning and definite end
o Projects are not ongoing efforts
o Temporary Opportunity or market window
o Team seldom outlives the project and then the team scattered or reassigned
• Unique products, services and results
o A product or artifact that is produced, is quantifiable, and can be either an end item in itself or a
component item
o A capability to perform a service, such as business functions supporting production or distribution
o A result, such as outcomes or documents.
• Progressive elaboration
o Developing in steps, and
o Continuing by increments.
• Other Attributes
o Unique purpose
o Require resources, often from various areas
o Should have a primary sponsor and/or customer
o Involve uncertainty

1.3 Project Constraints ( Triple constraints )

Like any human undertaking, projects need to be performed and delivered under certain constraints. Every project is
constrained in different ways, often by its scope, time, and cost goals.
These limitations are sometimes referred to in project management as the triple

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constraint. To create a successful project, a project manager must consider scope, time,
and cost and balance these three often-competing goals. Traditionally, these constraints have been listed as scope,
time, and cost. These are also referred to as the Project Management Triangle, where each side represents a constraint.
One side of the triangle cannot be changed without impacting the others. A further refinement of the constraints
separates product 'quality' or 'performance' from scope, and turns quality into a fourth constraint. These limitations
are sometimes referred to in project management as the triple constraint. To create a successful project, a project
manager must consider scope, time, and cost and balance these

Scope : The scope constraint refers to what must be done to produce the project's end result. What work will be done
as part of the project? What unique product, service, or result does the customer or sponsor expect from the project?
How will the scope be verified?

Time : The time constraint refers to the amount of time available to complete a project. How long should it take to
complete the project? What is the project’s schedule? How will the team track actual schedule performance? Who can
approve changes to the schedule?

Cost : The cost constraint refers to the budgeted amount available for the project. What should it cost to complete the
project? What is the project’s budget? How will costs be tracked? Who can authorize changes to the budget?

These three constraints are often competing constraints: increased scope typically means increased time and increased
cost, a tight time constraint could mean increased costs and reduced scope, and a tight budget could mean increased
time and reduced scope. If any one factor changes, at least one other factor is likely to be affected. It is the project
manager’s duty to balance these competing constraints.

Figure 1-1 illustrates the three dimensions of the triple constraint. Each area—scope, time, and cost—has a target at
the beginning of the project.

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1.4 Are software projects really different from other projects?

Many of the techniques of general project management are applicable to software project management, but Fred
Brooks pointed out that the products of software projects have certain characteristics that make them different. One
way of perceiving software project management is as the process of making visible that which is invisible.

Invisibility: When a physical artefact such as a bridge or road is being constructed the progress
being made can actually be seen. With software, progress is not immediately visible.

Complexity: . The sheer complexity of software makes it difficult for people to comprehend it, creating not only
technical, but management problems as well. Per dollar, pound or euro spent, software products contain more
complexity than other engineered artefacts.

Flexibility: The ease with which software can be changed is usually seen as one of its strengths. However this means
that where the software system interfaces with a physical or organizational system, it is expected that, where
necessary, the software will change to accommodate the other components rather than vice versa. This means the
software systems are likely to be subject to a high degree of change

1.5 Project Management

Management

The act of getting people together to accomplish desired goals and objectives efficiently and effectively.
It involves the following activities ( functions) :
• Planning – deciding what is to be done
• Organizing – making arrangements
• Staffing – selecting the right people for the job
• Directing – giving instructions
• Monitoring – checking on progress
• Controlling – taking action to remedy hold-ups
• Innovating – coming up with solutions when problems emerge
• Representing – liaising with clients, users, developers and other stakeholders

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Project Management

Project management is “the application of knowledge, skills, tools, and techniques to project activities to meet project
requirements.” Project managers must strive not only to meet specific scope, time, cost, and quality goals of
projects, they must also facilitate the entire process to meet the needs and expectations of people involved in project
activities or affected by them. Knowledge, skills, goals and personalities are the factors that need to be considered
within project management. The project manager and his/her team should collectively possess the necessary and
requisite interpersonal and technical skills to facilitate control over the various activities within the project.
Managing a project includes:
– Identifying requirements.
– Establishing clear and achievable objectives.
– Balancing the competing demands of quality, scope, time and cost.
– Adapting the specifications, plans, and approach to the different concerns and expectations of the
various stakeholders.

Project Management is accomplished through the application and integration of the processes which are grouped in
the 5 process groups:
1. Initiating
2. Planning
3. Executing
4. Monitoring and Controlling
5. Closing

Due to the nature of change, managing project is iterative and goes through progressive elaboration throughout the
project’s lifecycle.
Disciplined project management provides:
 Focal point for effective communications, coordination and control

 A plan to assess progress

 Emphasis on time and cost performance

Following are some advantages of using project management

• Better control of financial, physical, and human resources


• Improved customer relations
• Shorter development times
• Lower costs

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• Higher quality and increased reliability
• Higher profit margins
• Improved productivity
• Better internal coordination
• Higher worker morale

Why project fail? (Challenges)

 Lack of clearly defined purpose.

 Inexperienced project managers

 Cultural and ethical misalignment

 Poor requirement and specifications

 Poor communication

 Inadequate planning of scope, schedule, resources, cost, risk and quality.

 Lack of progress and quality control

1.6 Software Project Management

Software project management is the art and science of planning and leading software projects. It is a sub-discipline
of project management in which software projects are planned, implemented, monitored and controlled. It is concerned
with activities involved in ensuring that software is delivered:
• on time
• on schedule
• in accordance with the requirements of the organization developing the software

Software crisis

Software crisis is a term used in the early days of computing science for the difficulty of writing useful and efficient
computer programs in the required time. The software crisis was due to the rapid increases in computer power and
the complexity of the problems that could not be tackled. With the increase in the complexity of the software, many
software problems arose because existing methods were insufficient.

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Software is said to be an intangible product. Software development is a kind of all new stream in world business and
there’s very little experience in building software products. Most software products are tailor made to fit client’s
requirements. The most important is that the underlying technology changes and advances so frequently and rapidly
that experience of one product may not be applied to the other one. All such business and environmental constraints
bring risk in software development hence it is essential to manage software projects efficiently.

 Large amounts of money are spent on ICT(Information and communications technology) e.g. UK
government in 2003-4 spent £2.3 billions on contracts for ICT and only £1.4 billions on road building
 Project often fail –Standish Group claim only a third of ICT projects are successful. 82% were late and 43%
exceeded their budget.
 Poor project management a major factor in these failures

Activities covered by Software project management

A Software project is concerned not only with the actual writing of software. In fact, where a software application is
bought in ‘Off-the-self’, there might be no software writing as such. This is still fundamentally a software project
because so many of the other elements associated with this type of project are present. Usually, there are three
successive process that bring a new system into being as shown in following figure A.

Figure A : Activities covered by Software project management

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Feasibility study : To establish an outline of what users require is observed in feasibility study. Is project
technically feasible and worthwhile from a business point of view?(recommendation of the feasibility study might
be not to carry out the proposed project)
Planning : Only done if project is feasible - evolving plan allows us to control the project.
Execution : Implement plan, but plan may be changed as we go along

1.7 The role of Project Manager

The project manager is the driving force in the management control loop. Project managers play a key role in
helping projects and organizations succeed. They must
perform various job duties, possess many skills, and continue to develop skills in project management, general
management, and their application area, such as IT. Soft skills, especially
leadership, are particularly important for project managers. Job descriptions of project manager may vary, but most
include responsibilities like planning, scheduling, coordinating, and working with people to achieve project goals.

The project manager’s responsibility is to ensure the customer is satisfied that the work scope is completed in a
quality manner, within budget, and on time. Following are responsibilities of PM

 Provides leadership in planning, organizing, and controlling the work effort


 Coordinates the activities of various team members
 Does not try to do it alone
 Involves the project team to gain their commitment
 Clearly defines the project objective and reaches agreement with the customer
 Communicates this objective to the project team
 Tracks actual progress and compares it with planned progress
 Takes immediate action if progress or costs change

Effective project managers provide leadership by example. A leader focuses on long-term goals and big-picture
objectives while inspiring people to reach those goals while a manager deals with the day-to-day details of meeting
specific goals. Project managers often take on the role of both leader and manager

Most Important Skills and Competencies for Project Managers


1. People skills
2. Leadership
3. Listening
4. Integrity, ethical behavior, consistent
5. Strong at building trust

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6. Verbal communication
7. Strong at building teams
8. Conflict resolution, conflict management
9. Critical thinking, problem solving
10. Understands, balances priorities

1.8 Project Management Framework

Basically, it is a combination of processes, tasks, and tools used to transition a project from start to finish. Figure
1-2 illustrates a framework to help you understand project management. Key elements of this framework include the
project stakeholders, project management knowledge areas, project management tools and techniques, and the
contribution of successful projects to the enterprise. These concepts and terminologies would be studied in coming
parts of these notes.

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i- Project Stakeholders

Stakeholders are the people involved in or affected by the project actives directly or indirectly.
Stakeholders include:
• The project sponsor and project team
• Support staff
• Customers
• Users
• Suppliers
• Opponents to the project
They could be:
• Within the project team
• Outside the project team, but within the same organization
• Outside both the project team and the organization

Stakeholders include all members of the project team as well as all interested entities that are internal or external to
the organization. The project team identifies internal and external, positive and negative, and performing and advising
stakeholders in order to determine the project requirements and the expectations of all parties involved. The project
manager should manage the influences of these various stakeholders in relation to the project requirements to ensure
a successful outcome.

ii- Project Management Knowledge Areas

Project management knowledge areas describe the key competencies that project managers must develop.
Following are the 10 knowledge areas of project management.
– Four core knowledge areas lead to specific project objectives.
1. Project scope management involves defining and managing all the work required to complete the
project successfully.
2. Project time management includes estimating how long it will take to complete the work,
developing an acceptable project schedule, and ensuring timely completion of the project.
3. Project cost management consists of preparing and managing the budget for the project.
4. Project quality management ensures that the project will satisfy the stated or implied needs for
which it was undertaken.
– Following facilitating knowledge areas are the means through which the project objectives are achieved.
5. Project human resource management is concerned with making effective use of the people
involved with the project.

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6. Project communications management involves generating, collecting, disseminating, and storing
project information.
7. Project risk management includes identifying, analyzing, and responding to risks related to the
project.
8. Project procurement management involves acquiring or procuring goods and services for a project
from outside the performing organization.
9. Project stakeholder management includes identifying and analyzing stakeholder needs while
managing and controlling their engagement throughout the life of the project.

10. One knowledge area (project integration management) affects and is affected by all of the other
knowledge areas.

iii- Project Management Tools and Techniques

Project management tools and techniques assist project managers and their teams in carrying out work in all
knowledge areas. Note that a tool or technique is more than just a software package.

• Specific tools and techniques include:


• Project charters, scope statements, and WBS (scope)
• Gantt charts, network diagrams, critical path analyses (time)
• Net present value, cost estimates, and earned value management (cost)

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Project Success Factors:

There are different ways to define project success:

– The project met scope, time, and cost goals.


– The project satisfied the customer/sponsor requirements.
– The project produced the desired results.

The successful design, development, and implementation of information technology (IT) or Software projects is a
very difficult and complex process. However, although developing IT projects can be difficult, the reality is that a
relatively small number of factors control the success or failure of every IT project, regardless of its size or
complexity. The problem is not that the factors are unknown; it is that they seldom form an integral part of the IT
development process.

Some of the factors that influence projects and may help them succeed are
- Executive Support
- User involvement
- Experienced project managers
- Limited scope
- Clear basic requirements
- Formal methodology

1.9 Project, Program and Project Corporate Environment

Projects are often implemented as a means of achieving an organization’s strategic plan. Strategic Considerations
include:

 A market demand
 An organizational need
 A customer request
 A technological advance
 A legal requirement

A program is: “a group of related projects managed in a coordinated way to obtain benefits and control not available
from managing them individually.” Following are advantages:

– Decreased risk
– Economies of Scale

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A program manager provides leadership and direction for the project managers heading the projects within the
program.

Portfolios and Portfolio Management


• A portfolio is a collection of projects or programs and other work that are grouped together to facilitate
effective management of that work to meet strategic business objectives.
• Portfolio managers help their organizations
– make wise investment decisions
– by helping to select and analyze projects from a strategic perspective

PPM (project and portfolio management) is a formal approach that an organization can use to organize, prioritize and
benefit from projects. PPM is the centralized management of the processes, methods, and technologies used
by organizations to analyze and collectively manage current or proposed projects based on numerous key
characteristics.

Figure 1-3 illustrates the differences between project management and project portfolio management. Notice that the
main distinction is a focus on meeting tactical or strategic goals. Tactical goals are generally more specific and short-
term than strategic goals, which emphasize long-term goals for an organization. Individual projects often address
tactical goals, whereas portfolio management addresses strategic goals. Project management
addresses questions like “Are we carrying out projects well?” , “ Are projects on time and
on budget?” , and “ Do project stakeholders know what they should be doing?”

Portfolio management addresses questions like “ Are we working on the right projects?” ,“ Are we investing in the
right areas?” , and “ Do we have the right resources to be competitive?”

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Project Management Office (PMO)

A Project Management Office (PMO) is an organizational group responsible for coordinating the project
management function throughout an organizations.. A PMO usually takes one of three roles:

– Project Support: Provide project management guidance to project managers in business units.
– Project Management Process/Methodology: Develop and implement a consistent and standardized
process.
– Training: Conduct training programs or collect requirements for an outside company

Project Management Institute (PMI)

The Project Management Institute (PMI) is a US nonprofit professional organization for project management.
Although many professional societies suffer from declining membership, the Project Management Institute (PMI), an
international professional society for project managers founded in 1969. It has continued to attract and retain members,
reporting more than 380,000 members worldwide by early 2012. Because so many people work on projects in various
industries, PMI has created communities of practice that enable members to share ideas
about project management in their particular application areas, such as information systems. PMI also has communities
for aerospace/defense, financial services, government, healthcare, and agile techniques, to name a few. Note that there
are other project management professional societies.

PMI has recruited volunteers to create industry standards PMBOK, such as "A Guide to the Project Management Body
of Knowledge", which has been recognized by the American National Standards Institute (ANSI).

Professional certification is an important factor in recognizing and ensuring quality in a profession. PMI provides
certification as a Project Management Professional (PMP).

PMBOK (Project Management Body of Knowledge)

PMBOK stands for Project Management Body of Knowledge and it is the entire collection of processes, best
practices, terminologies, and guidelines that are accepted as standards within the project management industry.

Because the body of knowledge is constantly growing as practitioners discover new methods or best practices, it must
be updated and disseminated. This is an effort that is overseen by the Project Management Institute (PMI), the global
not-for-profit member association of PM professionals which captures and publishes the PMBOK within the book, A
Guide to the Project Management Body of Knowledge (PMBOK Guide).

The first edition of the PMBOK Guide was published in 1996. It is now on its fifth edition, which was published in
2013.

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2.1 A SYSTEMS VIEW OF PROJECT MANAGEMENT

Even though projects are temporary and intended to provide a unique product or service, we cannot run projects in
isolation. If project managers lead projects in isolation, it is unlikely that they will ever truly serve the needs of the
organization. Therefore, projects must operate in a broad organizational environment, and project managers need to
consider projects within the greater organizational context.

Systems Approach.

The term systems approach emerged in the 1950s to describe a holistic and analytical approach to solving complex
problems that includes using a systems philosophy, systems analysis, and systems management.

A systems philosophy is an overall model for thinking about things as systems.

Systems are sets of interacting components that work within an environment to fulfill some purpose. For example, the
human body is a system composed of many subsystems, including the nervous system, the skeletal system, the
circulatory system, and the digestive system.

Systems analysis is a problem-solving approach that requires defining the scope of the system, dividing it into
components, and then identifying and evaluating its problems, opportunities, constraints, and needs.

Systems management addresses the business, technological, and organizational issues associated with creating,
maintaining, and modifying a system.

Using a systems approach is critical to successful project management. Top management and project managers must
follow a systems philosophy to understand how projects relate to the whole organization

The Three-Sphere Model for Systems Management

The three-sphere model of systems management deals with the business, organizational and technological aspects
and/or issues related to the project that should be defined and considered in order to select and manage projects
effectively and successfully.

In terms of addressing its advantage on the business side, a project should supplement or serve as an answer to the
business goals; whereas, the technological sphere should state the proper hardware and software issues to be resolved.
As for the organizational aspect, matters involving the stakeholders should be taken into full consideration. If the

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project manager would be able to point out as early as possible the aforementioned issues and integrate it to the project
it would definitely aid in determining if an organization should invest and produce the project.

Following figure provides a sample of business, organizational, and technological issues that could be factors in the
tablet project in an academic organization ( Please see text book for details). In this case, technological issues, though
not simple by any means, are probably the least difficult to identify and resolve. However, projects must address issues
in all three spheres of the systems management model. Although it is easier to focus on the immediate and sometimes
narrow concerns of a particular project, project managers and other staff must recognize the effects of any project on
the interests and needs of the entire system or organization. The college president and senior administrators, in
particular, will focus on whether the tablet project adds value to the college as a whole.

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2.2 UNDERSTANDING ORGANIZATIONS

Organizational Structures
Every organization should have a defined organization structure in order to work efficiently and achieve its business
goals. Some say that without a defined organization type and structure that helps support its objectives, that
organization will not succeed. As a project manager, it’s important to understand which type of organization you’re
working with; this will help you identify the stakeholders and other team members you’ll be working with.

The current types of organizational structure of project management are:

i- functional organizational structure


ii- project-based organizational structure
iii- matrix organizational structure

i . Functional organizational structure.

In a functional organization structure, the organization is grouped into departments where people with similar skills
are kept together in forms of groups; e.g., Marketing department, Design department, Development department,
Testing Department, etc. This helps organizations enhance the efficiencies of each functional group.

Dotted --- lines shows the project coordination in an organization. All authority belongs to the functional manager in
a functional organization. Resources in functional organizations report directly to the functional manager. The

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functional manager reserves the authority to release resources based on their subject matter expertise. When the project
ends, the resources are returned to the functional manager again for routine work. Project managers typically do not
exist in this type of organization structure; if this position exists, the role of the project manager will be very limited.
The project manager may have the title of a coordinator or an expediter.

ii. Project-based organizational structure.


Project organizational structure refers to the creation of an independent project team, the team’s management is
separated from the parent organization’s other units, have their own technical staff and management, enterprise assigns
certain resources to project team, and grant project manager of the largest free implementation of the project . Dotted
--- lines shows the project coordination in an organization.

iii. Matrix organizational structure.

The matrix organization structure is a combination of two or more types of organizational structures, such as the
projectized organization structure and the functional organization structure. This combination can help organizations
to improve efficiency, readiness, and market adaptation. This type of structure is most suitable for organizations
operating in a dynamic environment; they often can respond faster to market or customer demand while decreasing
the lead time to produce a new product.

According to the relative power of project managers and functional managers, in practice there are different types of
matrix systems, respectively,

Functional Matrix: in this matrix, functional managers have greater powers than project managers);

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Project Matrix: in this matrix, project managers have greater powers than functional managers);
Balance Matrix: in this matrix, functional managers and project managers have the equal powers.

Relationship between Organizational structure and project characteristics

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Comparison of three organizations

Advantages Disadvantages

Functional • Easier management of specialists • People place more emphasis on their


• Team members report to only one functional specialty to the detriment of
supervisor the project
• Similar resources are centralized, as the • No career path in project management
company is grouped by specialties • The project manager has little or no
• Clearly defined career paths in areas of authority
work specialization

Projectized • Efficient project organization • Lack of professionalism in disciplines


• Loyalty to the project • Duplication of facilities and job
• More effective communication than functions
functional • Less efficient use of resources

Matrix • Highly visible project objectives • Extra administration is required


• Improved project manager control over • More than one boss for project teams
resources • More complex to monitor and control
• More support from functional area • Tougher problems with resource
• Maximum utilization of scarce resources allocation
• Better coordination • Need extensive policies and procedures

Organizational Culture

Organizational culture is a set of shared assumptions, values, and behaviors that characterize the functioning of an
organization. Many experts believe the underlying causes of many companies’ problems are not the structure or staff,
but the culture
Ten Characteristics of Organizational Culture

 Member identity*
 Group emphasis*
 People focus
 Unit integration*
 Control
 Risk tolerance*

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 Reward criteria*
 Conflict tolerance*
 Means-ends orientation
 Open-systems focus*

 Project work is most successful in an organizational culture where these items are strong/high and
other items are balanced.

Stakeholder Management
The importance of stakeholder management is to support an organization in achieving its strategic
objectives by interpreting and influencing both the external and internal environments and by creating
positive relationships with stakeholders through the appropriate management of their expectations and
agreed objectives. Stakeholder Management is a process and control that must be planned and guided by
underlying Principles.
Project managers must take time to identify, understand, and manage relationships with all project
stakeholders

Following in stakeholder management process.

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Strategic planning process including the SWOT analysis.

The strategic planning process of a project determines where an organization is going over the next years or more.
The focus of a strategic plan is usually on the entire organization. Also this process is defined as the process of
addressing the following questions:

 Where are we?

 What do we have to work with?

 Where do we want to be?

 How do we get there?

There are a variety of perceptions, models and tactics used in strategic planning. The way that a strategic plan is
developed depends on the nature of the organization's leadership, culture of the organization, complexity of the
organization's environment, size of the organization, etc.

SWOT (Strengths, Weaknesses, Opportunities, Threats)

An examination of the internal and external environment is an important part of the strategic planning process. This
process is stated as a SWOT analysis classified by internal environmental factors as strengths (S) or weaknesses (S),
and external factors as opportunities (O) or threats (T).

Most businesses for IT project use the method of SWOT analysis due to the organization of the process and the
perspective of the project in different phases. Also to enable the observation where your business is in the marketplace
and what strategies you can develop to increase your market share.

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2.3 PROJECT LIFE CYCLE
A project life cycle is a collection of project phases that defines

◦ what work will be performed in each phase


◦ what deliverables will be produced and when
◦ who is involved in each phase, and
◦ how management will control and approve work produced in each phase

There are four phases of Project life cycle

i. Project Initiation Phase


ii. Project Planning Phase
iii. Project Execution Phase
iv. Project Closure Phase

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Following figure shows the relationship among cost, stakeholder’s influences, risks and uncertainty in Project Life
Cycle

◦ Resource needs are usually lowest, the level of uncertainty (risk) is highest and project stakeholders
have the greatest opportunity to influence the project in early phases of a project life cycle
◦ The certainty of completing a project improves and more resources are needed in middle phases of
a project life cycle.
◦ The final phase of a project life cycle focuses on ensuring that project requirements were met and
the sponsor approves completion of the project

Example: Project Phases on a Large Multinational Project

A U.S. construction company won a contract to design and build the first copper mine in northern Argentina. There
was no existing infrastructure for either the mining industry or large construction projects in this part of South
America.

During the initiation phase of the project, the project manager focused on defining and finding a project leadership
team with the knowledge, skills, and experience to manage a large complex project in a remote area of the globe. The
project team set up three offices. One was in Chile, where large mining construction project infrastructure existed.
The other two were in Argentina. One was in Buenos Aries to establish relationships and Argentinian expertise, and
the second was in Catamarca—the largest town close to the mine site. With offices in place, the project start-up team
began developing procedures for getting work done, acquiring the appropriate permits, and developing relationships
with Chilean and Argentine partners.

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During the planning phase, the project team developed an integrated project schedule that coordinated the activities
of the design, procurement, and construction teams. The project controls team also developed a detailed budget that
enabled the project team to track project expenditures against the expected expenses. The project design team built on
the conceptual design and developed detailed drawings for use by the procurement team. The procurement team used
the drawings to begin ordering equipment and materials for the construction team; develop labor projections; refine
the construction schedule; and set up the construction site. Although planning is a never-ending process on a project,
the planning phase focused on developing sufficient details to allow various parts of the project team to coordinate
their work and allow the project management team to make priority decisions.

The implementation (execution) phase represents the work done to meet the requirements of the scope of work and
fulfill the charter. During the implementation phase, the project team accomplished the work defined in the plan and
made adjustments when the project factors changed. Equipment and materials were delivered to the work site, labor
was hired and trained, a construction site was built, and all the construction activities, from the arrival of the first dozer
to the installation of the final light switch, were accomplished.

The closeout phase included turning over the newly constructed plant to the operations team of the client. A punch
list of a few remaining construction items was developed and those items completed. The office in Catamarca was
closed, the office in Buenos Aries archived all the project documents, and the Chilean office was already working on
the next project. The accounting books were reconciled and closed, final reports written and distributed, and the project
manager started on a new project.

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2.4 PRODUCT LIFE CYCLES

Project is a temporary endeavor undertaken to create a unique product, service, or result, and a program is a group of
projects managed in a coordinated way. A program often refers to the creation of a product, like an automobile or a
new operating system. Therefore, developing a product often involves many projects.

Predictive life cycle: the scope of the project can be clearly articulated and the schedule and cost can be
predicted

 Waterfall model: has well-defined, linear stages of systems development and support
 Spiral model: shows that software is developed using an iterative or spiral approach rather than a
linear approach
 Incremental build model: provides for progressive development of operational software
 Prototyping model: used for developing prototypes to clarify user requirements
 Rapid Application Development (RAD) model: used to produce systems quickly without
sacrificing quality

Adaptive Software Development (ASD) life cycle: requirements cannot be clearly expressed, projects
are mission driven and component based, using time-based cycles to meet target dates

Agile software development has become popular to describe new approaches that focus on close
collaboration between programming teams and business experts

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2.5 Software Development Life Cycle (SDLC)

SDLC, Software Development Life Cycle is a process used by software industry to design, develop and
test high quality software. SDLC is used to analyze, develop or redesign high quality software system
which meets both the customer and the real world requirement taking into consideration all associated
aspects of pros and cons of software testing, analysis and post process maintenance.

Stage 1: Planning and Requirement Analysis

• Requirement analysis is the most important and fundamental stage in SDLC.

• It is performed by the senior members of the team with inputs from the customer, the sales
department, market surveys and domain experts in the industry.

• This information is then used to plan the basic project approach and to conduct product feasibility
study in the economical, operational, and technical areas.

Stage 2: Defining Requirements

• Once the requirement analysis is done the next step is to clearly define and document the product
requirements and get them approved from the customer or the market analysts.

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• This is done through SRS. Software Requirement Specification document which consists of all
the product requirements to be designed and developed during the project life cycle.

Stage 3: Designing the product architecture

• SRS is the reference for product architects to come out with the best architecture for the product
to be developed.

• Based on the requirements specified in SRS, usually more than one design approach for the
product architecture is proposed and documented in a DDS - Design Document Specification.

Stage 3: Designing the product architecture …..

• This DDS is reviewed by all the important stakeholders and based on various parameters as risk
assessment, product robustness, design modularity , budget and time constraints , the best design
approach is selected for the product.

• A design approach clearly defines all the architectural modules of the product along with its
communication and data flow representation with the external and third party modules (if any).

• The internal design of all the modules of the proposed architecture should be clearly defined with
the minutest of the details in DDS.

Stage 4: Building or Developing the Product

• In this stage of SDLC the actual development starts and the product is built.

• The programming code is generated as per DDS during this stage.

• If the design is performed in a detailed and organized manner, code generation can be
accomplished without much hassle.

• Developers have to follow the coding guidelines defined by their organization and programming
tools like compilers, interpreters, debuggers etc are used to generate the code.

• Different high level programming languages such as C, C++, Pascal, Java, and PHP are used for
coding. The programming language is chosen with respect to the type of software being
developed.

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Stage 5: Testing the Product

• This stage is usually a subset of all the stages as in the modern SDLC models, the testing
activities are mostly involved in all the stages of SDLC.

• However this stage refers to the testing only stage of the product where products defects are
reported, tracked, fixed and retested, until the product reaches the quality standards defined in the
SRS.

Stage 6: Deployment in the Market and Maintenance

• Once the product is tested and ready to be deployed it is released formally in the appropriate
market.

• Sometime product deployment happens in stages as per the organizations. business strategy.

• The product may first be released in a limited segment and tested in the real business environment
(UAT- User acceptance testing).

• Then based on the feedback, the product may be released as it is or with suggested enhancements
in the targeting market segment.

• After the product is released in the market, its maintenance is done for the existing customer
base.

Why Have Project Phases and Management Reviews?

 A project should successfully pass through each of the project phases in order to continue on to the
next
 Management reviews (also called phase exits or kill points) should occur after each phase to
evaluate the project’s progress, likely success, and continued compatibility with organizational
goals

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2.6 SOFTWARE PROJECT MANAGEMENT AND PROJECT ACTIVITIES

Software development is a complex process involving such activities as domain analysis, requirements
specification communication with the customers and end-users, designing and producing different artifacts,
adopting new paradigms and technologies, evaluating and testing software products, installing and
maintaining the application at the end-user's site, providing customer support, organizing end-user's
training, envisioning potential upgrades and negotiating about them with the customers, and many more.

One of the primary duties of the manager of a software development project is to ensure that all of the
project activities follow a certain predefined process, i.e. that the activities are organized as a series of
actions conducing to a desirable end . The activities are usually organized in distinct phases, and the process
specifies what artifacts should be developed and delivered in each phase.

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Globalization, Outsourcing, and Virtual teams. How these trends are changing Software
industry/IT project management.

Today’s technology has transformed our lives. Indeed, it had created a world without boundaries. Where people can
interact with others, regardless location and time, using different social media and gadgets. This worldwide business
alliance interaction its called Globalization. Outsourcing occurred when an institution requires services from any
person, supply or company from outside sources. Furthermore, because the increase of outsourcing, virtual team best
describes the group of people that work together to accomplish a task or project

Globalization:
Globalization is a worldwide connection. IT is a key enabler of globalization. An example of how IT is a key to
globalization is Facebook. More than 1 billion accounts were created in by 2012. Globalization allows for people and
businesses to interact instantaneously across the planet. Some examples of IT tools that people use to communicate
globally are: Skype, Google docs, social media, etc..

Outsource is when an organization acquires goods and/ or source from an outside source. The term off shoring is
sometimes used to describe outsourcing from another country. Off shoring is a natural outgrowth of globalization. It
projects continue to rely more and more on outsourcing, both within and outside of their country boundaries.
Organizations remain competitive by using outsourcing t their advantage. For example, many organizations have
found ways to reduces costs by outsourcing.

A virtual team is a group of individuals who work across time and space using communication technologies. Team
members might all work for the same company in the same country, or they might include employees as well as
independent consultants, suppliers, or even volunteers providing their expertise from around the globe.

How is it changing IT / Software Industry?

IT improving their enterprise architecture to ensure that infrastructure and business processes are integrated and
standardized. IT projects become more familiar with negotiating contracts and many other issues, including working
on and managing virtual teams.

These Trends are changing IT Project Management in a way that Any It project nowadays can benefit from tools that
were not available years ago. For example an IT project 10 to 15 years ago didn’t had tools such as face book, Skype,
or Google docs. Today these resources allows for an IT project to develop in more efficient way by taking advantages
of these tools.

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2.7 DEVELOPING AN IT/Software PROJECT MANAGEMENT METHODOLOGY

Some organizations spend a great deal of time and money on training efforts for general project
management skills, but after the training, project managers may still not know how to tailor their project
management skills to the organization’s particular needs. Because of this problem, some organizations
develop their own internal IT project management methodologies.

 A methodology describes how things should be done; a standard describes what should be done

The PMBOK Guide is a standard that describes best practices for what should be done to manage a project.
A methodology describes how things should be done, and different organizations often have different ways
of doing things.

In addition to using the PMBOK® Guide as a basis for project management methodology, many
organizations use other guides or methods, such as the following:

i- PRojects IN Controlled Environments (PRINCE2):

PRINCE2 was released in 1996 as a generic project management methodology by the U.K. Office of
Government Commerce (OCG). It is the de facto standard in the United Kingdom and is used in over 50
countries. (See www.prince2.com for more information.) PRINCE2 defines 45 separate sub processes and
organizes them into eight process groups as follows:

a. Starting up a project
b. Planning
c. Initiating a project
d. Directing a project
e. Controlling a stage
f. Managing product delivery
g. Managing stage boundaries
h. Closing a project

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ii- Agile methods:

Agile software development is a form of adaptive software development. All agile methods include an
iterative Workflow Agile methods and incremental delivery of software in short iterations.
Popular agile methods include
a) eXtreme Programming
b) Feature-driven development,
c) Agile Unified Process (AUP)
d) Crystal
e) Dynamic Systems Development Method (DSDM).
f) Scrum: Scrum is the leading agile development method for completing projects with a complex,
innovative scope of work. The term was coined in 1986 in a Harvard Business Review study that
compared high-performing, cross-functional teams to the scrum formation used by rugby teams. The
basic Scrum framework is summarized in the following list and illustrated in Figure:

i- Rational Unified Process (RUP) framework:


RUP is an iterative software development process that focuses on team productivity and
delivers software best practices to all team members. According to RUP expert Bill Cottrell,
“RUP embodies industry-standard management and technical methods and techniques to
provide a software engineering process particularly suited to creating and maintaining
component-based software system solutions.”

ii- Six Sigma methodologies:

Six Sigma is a method that provides organizations tools to improve the capability of their business
processes. Two main methodologies are used on Six Sigma projects:

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• DMAIC (Define, Measure, Analyze, Improve, and Control) is used to improve an existing
business process
• DMADV (Define, Measure, Analyze, Design, and Verify) is used to create new product or
process designs to achieve predictable, defect-free performance.

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3.1 PROJECT MANAGEMENT PROCESS GROUPS

A process is a series of actions directed toward a particular result. Project management process groups
progress from initiating activities to planning activities, executing activities, monitoring and controlling
activities, and closing activities.

The lifecycle of project can be broken down into process groups which describe and organize the project
from start to finish. It is important to note that these process groups are not the sub-components that make
up the project but of the project lifecycle.

Following are five process group of project management

The five process groups are:

1. Project Initiation
2. Project Planning
3. Project Execution
4. Monitoring & Controlling
5. Project Closing

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They all occur in chronological order except one, Monitoring & Controlling (#4), which occurs in parallel to
Project Execution (#3).

i- Project Initiation

This process group includes the basic groundwork necessary to create the project and define the guidelines and
criteria under which it will operate. Authorizations from the performing organization are given and funding is
put in place. An initial scope statement can be made, because executives generally have an idea what the project
should accomplish when they authorize it. Any initial project boundaries are determined
and stakeholders identified.

All of this information gets placed into a document called a Project Charter. The purpose of this document is to
commission the project and authorize the project manager. For small projects where lines of reporting are clear,
the project charter is optional.

ii- Project Planning

Upon authorization of the project, the project must be planned.

This phase produces a document called a Project Management Plan. This is the master planning document which
establishes stakeholder expectations and makes it clear how the project will be managed. In the PMBOK, all
ten knowledge areas are covered within the planning phase. It should outline the project’s scope, cost, deadlines,
milestones, communication needs, and anything else that shows the stakeholders how the project will be
managed. It is highly specific to individual industries and organizations. It should be distributed to the major
project stakeholders, including the project sponsor.

This phase is usually the most underrated and underutilized. Planning is the most intense part of the project
management process, because a lack of planning can result in cost and schedule overruns as well as other project
changes which look bad on the project manager and sponsor. Because of the potential for problems, it is
important that the project manager carefully follows each item in the knowledge areas throughout the project
planning phase.

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iii- Project Execution

This phase is where the project’s technical work takes place. The project team is assembled and put to work,
and the production of the project deliverables are put into motion.

The execution of the project requires coordination of human resources, managing stakeholder expectations, and
dealing with project changes. The project manager must be on top of issues that arise, as well as making regular
forecasts of future schedule and cost problems to deal with changes as far in advance as possible. Change
requests must be handled and documented throughout this phase, and stakeholders must be kept informed.

Status updates and other project communications are sent to the relevant stakeholders according to the project
management plan. Documents are stored and archived, and stakeholders are managed according to the plan.

iv- Monitoring and Controlling

Throughout the project, the project manager must monitor and control the project work to ensure that project
deliverables are on time, on budget and of acceptable quality. Also, stakeholders must be kept satisfied and the
project team must be kept motivated and coherent. Monitoring and Controlling the project work occurs
concurrently to the Execution phase, therefore the two Process Groups occur in parallel.

Tracking of time (deadlines, milestones, etc.) and cost are most commonly done via Earned Value Analysis,
which provides a strong early warning of deviations in those areas. Quality of deliverables, stakeholder

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communication, and high risk potential problems are other areas of regular monitoring. At any time, monitoring
can result in changes to the project.

If changes are required to any part of the project as documented in the project management plan, they need to be
documented and result in an updated plan. This includes changes to deadlines, costs, deliverables, and any other
change to the project as envisioned.

v- Project Closing

There are almost always a handful of tasks involved in closing the project and moving on, and they are usually
high on the visibility scale to executives and project sponsors. Contractual obligations must be completed and
contracts closed, final details submitted, and funding requirements finalized.

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Mapping Project Management Process Groups to Knowledge Areas

Process
Knowledge Area
Initiating Planning Executing Monitoring & Control Closing

Integration Develop Develop Project Management Direct and Monitor and Control Close
Project Plan Manage Project Work Project
Charter Project Perform Integrated
Execution Change Control

Scope Collect Requirements Verify Scope


Define Scope Control Scope
Create WBS

Time Define Activities Control Schedule


Sequence Activities
Estimate Activities Resources
Estimate Activities Duration
Develop Schedule

Cost Estimate Costs Control Costs


Determine Budget

Quality Plan Quality Perform Perform Quality


Quality Control
Assurance

Human Develop Human Resources Acquire


Resource Plan Project Team
Develop
Project Team
Manage
Project Team

Communication Identify Plan Communications Distribute Report Performance


Stakeholders Information
Manage
Stakeholders
Expectations

Risk Plan Risk Management Monitor and Control


Identify Risk Risks
Perform Qualitative Risk
Analysis
Perform Quantitative Risk
Analysis
Plan Risk Response

Procurement Plan Procurements Conduct Administer Close


Procurements Procurements Procurement
s

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Assume you have one year and $100,000 to spend on a project - How much time and money
is typically spent on projects in each of the process groups. Justify your answer.

Project management is an integrative endeavor; decisions and actions taken in one knowledge area at a certain time
usually affect other knowledge areas. Managing these interactions often require making trade-offs among the project’s
scope, time and cost known as the triple constraints of project management as well other trade-offs between risk and
human resources.

Consequently, you can view project management as a number of related processes. A process is a series of actions
directed toward a particular result. Project management process group’s progress from initiating activities to planning
activities, executing activities, monitoring and controlling activities, and closing activities.

Typically, project management processes can spend an average between: 2% initiating processes, 22% planning
processes, 82% executing processes, 5% monitoring and controlling processes, and 3% closing processes. These
guidelines were done by Andy Crowe and published in his book, Alpha Project Managers: What the Top 2% Know
That Everyone Else Does Not. He collected data from 860 project managers in various companies and industries in
the United States. He found that the best -“the alpha”- project managers spent more time on every process group than
their counterparts except executing, as shown in Figure.

This breakdown suggests that the most time should be spent on executing, followed by planning. Spending a fair
amount on planning should lead to less time spent on execution. Notice that the alpha project managers spent almost
twice as much time on planning (21% versus 11%) as other project managers.

Figure (Source: Andy Crowe)


Percentage of time spent on each process group

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To illustrate the “Project Management Process Group”; below is then computed by applying the calculations per
percentage of actions for a yearly project with a budget of $100,000.

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4. 1 PROJECT INTEGRATION MANAGEMENT

Process and activities needed to identify, define, combine, unify, and coordinate the various processes and project
management activities within the Project Management Process Groups.

Project integration management involves coordinating all of the other project management knowledge areas
throughout a project’s life cycle. This integration ensures that all the elements of a project come together at the right
times to complete a project successfully.

According to the PMBOK® Guide, Fifth Edition, six main processes are involved in project integration management:

1. Developing the project charter involves working with stakeholders to create the document that formally
authorizes a project—the charter.

2. Developing the project management plan involves coordinating all planning efforts to create a consistent,
coherent document—the project management plan.

3. Directing and managing project work involves carrying out the project management plan by performing
the activities included in it. The outputs of this process are deliverables, work performance information,
change requests, project management plan updates, and project documents updates.

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4. Monitoring and controlling project work involves overseeing activities to meet the performance objectives
of the project. The outputs of this process are change requests, project management plan updates, and project
documents updates.

5. Performing integrated change control involves identifying, evaluating, and managing changes throughout
the project life cycle. The outputs of this process include change request status updates, project management
plan updates, and project documents updates.

6. Closing the project or phase involves finalizing all activities to formally close the project or phase. Outputs
of this process include final product, service, or result transition and organizational process assets updates.
Figure summarizes these processes and outputs, and shows when they occur in a typical project.

Following figure shows each process and its relevant output.

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4.2 Developing Project Charter

After top management decides which projects to pursue, it is important to let the rest of the organization know about
these projects. Management needs to create and distribute documentation to authorize project initiation. This
documentation can take many different forms, but one common form is a project charter.

 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; a signed charter is a key output of project integration management

The PMBOK Guide, Fifth Edition lists inputs, tools, techniques, and outputs of the six project integration
management processes. For example, the following inputs are helpful in developing a project charter:

• A project statement of work (SOW): A statement of work is a document that describes the products or services to
be created by the project team. It usually includes a description of the business need for the project, a summary of
the requirements and characteristics of the products or services, and organizational information, such as appropriate
parts of the strategic plan, showing the alignment of the project with strategic goals.

• A business case: many projects require a business case to justify their investment. Information in the business case,
such as the project objective, high-level requirements, and time and cost goals, is included in the project charter.

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• Agreements: If you are working on a project under contract for an external customer, the contract or agreement
should include much of the information needed for creating a good project charter. Some people might use a contract
or agreement in place of a charter; however, many contracts are difficult to read and can often change, so it is still a
good idea to create a project charter.

• Enterprise environmental factors: These factors include relevant government or industry standards, the
organization’s infrastructure, and marketplace conditions. Managers should review these factors when developing a
project charter.

• Organizational process assets: Organizational process assets include formal and informal plans, policies,
procedures, guidelines, information systems, financial systems, management systems, lessons learned, and historical
information that can influence a project’s success.

Tools and technique for Project charter


The main tools and techniques for developing a project charter are:
i. Expert judgment
Experts from inside and outside the organization should be consulted when creating a project charter to
make sure it is useful and realistic.
ii. Facilitation techniques, such as brainstorming and meeting management.
Facilitators often make it easier for experts to collaborate and provide useful information.

Output of the process


The only output of the process to develop a project charter is the charter itself.
Although the format of project charters can vary tremendously, they should include at least the following basic
information:

i. The project’s title and date of authorization

ii. The project manager’s name and contact information

iii. A summary schedule, including the planned start and finish dates; if a summary milestone schedule is
available, it should also be included or referenced

iv. A summary of the project’s budget or reference to budgetary documents

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v. A brief description of the project objectives, including the business need or other justification for
authorizing the project

vi. Project success criteria, including project approval requirements and who signs off on the project

vii. A summary of the planned approach for managing the project, which should describe stakeholder needs
and expectations, important assumptions, and constraints, and should refer to related documents, such as a
communications management plan, as available

viii. A roles and responsibilities matrix

ix. A sign-off section for signatures of key project stakeholders

x. A comments section in which stakeholders can provide important comments related to the project

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An Example of Project charter

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4.3 Project Management Plan

A project management plan is a document used to coordinate all project planning documents and help
guide a project’s execution and control.

Plans created in the other knowledge areas are subsidiary parts of the overall project management plan

Sample Contents for a Software Project Management Plan (SPMP)

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4.4 Methods for Selecting Projects
There are usually more projects than available time and resources to implement them, so selecting project
is most challenging job for the organization.
Following are methods for selecting projects include:
◦ Focusing on broad organizational needs
◦ Categorizing information technology projects
◦ Performing net present value ( NPV ) or other financial analyses
◦ Using a weighted scoring model
◦ Implementing a balanced scorecard
Focusing on Broad Organizational 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

Financial Analysis of Projects

Three primary methods for determining the projected financial value of projects:

o Net present value (NPV) analysis

o Return on investment (ROI)

o Payback 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
 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

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 The payback period is the amount of time it will take to recoup, in the form of net cash inflows,
the total dollars invested in a project

A weighted scoring model is a tool that provides a systematic process for selecting projects based on
many criteria

 Identify criteria important to the project selection process

 Assign weights (percentages) to each criterion so they add up to 100%

 Assign scores to each criterion for each project

 Multiply the scores by the weights and get the total weighted scores

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

Details about above methods and example can be seen from the Textbook and will be discussed in the
next version of notes

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P a g e | 51 ………SPM (SEN 410) lecturer handouts, version-1- Part A

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