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Information Technology Project Management

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Information Technology Project Management

  1. 1. Presented by Goutama BachtiarE: goutama@gmail.com | T: @goudotmobi 2008
  2. 2.  Scope Management Time Management Cost Management Quality Management Human Resources Management Communication Management Risk Management Contracts & Procurement Management Project Integration & Professional Responsibility
  3. 3.  Objectives & Challenges Project Selection Project Justification Project Charter Scope Statement Scope Management Plan
  4. 4.  Objectives  Decide criteria to select projects  Setting up process to select projects  Authorize the project & project manager to manage via project charter Challenges Project Manager (PM) needs to:  Ensure a scope statement is created  Ensure everyone understands main objectives & deliverables  Ensure everyone understands constraints & assumptions  Ensure scope is managed in a standard & consistent fashion
  5. 5.  Using Project Selection Matrix The matrix based on Project Selection Criteria Elements:  Financial return  Effect on employees/alignment with corporate culture  Technical advancement/innovation  Market value/share  Public perception  Alignment/advancement of corporate strategy
  6. 6.  Project Justification Criteria  Select 5 to 7 main criteria to justify the projects  Assign a weighting factor to each criterion based on importance  For each criterion, select the benefit measurement to use  Create the list of all proposed projects  A written business case for informing project selection committee  Put projects in a matrix & rate each project based on method selected  Multiply weighting factor to each rating received  Eliminate any projects based on any minimum standards /thresholds established prior to ranking  Rank remaining projects  Select projects to proceed from ranking  Make sure document justifications for each project selected (project charter, scope statement, business case, or other supporting docs)
  7. 7.  Official written acknowledgment & recognition that a project exists. Issued by senior management external to the project Gives the PM authority to assign resources Elements  Product description & project overview  Project goals & objectives  Project deliverables  Business case/business need  Resource & cost estimates  Feasibility study (optional)
  8. 8.  Steps to write  Interview sponsor, product managers & any leaders to understand product & purpose  Ask sponsor & other stakeholders about main goals & objectives  Ask sponsor & other stakeholders about tangible deliverables  Collect business case for the project & attach it to the plan  Estimate resource needs & costs  Write the project charter with all gathered info  Describe needed authority to PM  Ask sponsor or a senior leader to review & change the charter as needed, have it signed & distributed to involved parties  Have a meeting to ensure concurrence with the charter for all executives & identified team members
  9. 9.  Elements  Project justification (business need)  Project product  Requirements/Specifications  Project deliverables (WBS)  Project objectives (quantifiable criteria)  Assumptions  Cost & time estimates  Constraints
  10. 10.  Steps to write  Review project charter for resued any items  Write a brief general statement about project purpose  Include a project justification  Rewrite/use a product/service description  Create list of major deliverables & high-level WBS to show scope of work  List the objective(s) or goals  List assumptions  List constraints  Include requirements in scope statement or produce them in another doc  Include major roles & responsibilities needed  Write the scope statement doc & deliver it to stakeholders for approval  Have a meeting to review the scope with team & stakeholders
  11. 11.  Steps to create  Review scope statement & make informed judgments on stability  Provide in plan probability of scope changes & frequency  Describe how scope changes will impact the project  Document scope change process ▪ General info about change (date, brief description & requestor) ▪ Business, technical, or other need for the change ▪ Describe the resulting analysis of the change ▪ Socialize levels of review & approval for the change and communicate change to everyone ▪ Integrate change into the scope; managed & tracked as part of project plan  Communicate scope management plan & scope change process to team members
  12. 12.  Work Breakdown Structure (WBS) Activity Sequencing Estimating Activity Duration Critical Path Method Program Evaluation & Review Technique (PERT) Duration Compression GANTT Chart Controlling Schedule Changes
  13. 13.  A tool and technique to decompose project scope components into smaller and more manageable components/work packages Purposes  Identify project major deliverables  Create a common understanding of deliverables Composition  Project name/major task, subcomponents/higher level tasks (summary tasks) and work packages (work task)
  14. 14.  Steps to Create  Determine format for WBS (tree/outline)  Determine appropriate levels of decomposition  Determine organization of WBS levels  Label level one the project name.  At level two, decompose into a set of deliverables  For each subsequent level, decompose the level above into smaller components  Create the lowest level of decomposition (work package) It should be small enough to easily assign to one person to complete.  Create a unique numerical identifier for each component on WBS
  15. 15.  Components  Activity List Lowest level of work on WBS  Dependencies Determining dependencies of the work to be done ▪ Mandatory dependencies: Inherent in the work to be done ▪ Discretionary dependencies: Created by the project team ▪ External dependencies: Come from outside of the project  Diagramming Methods Precedence diagramming method (PDM)/Activity on node (AON) and Arrow diagramming method (ADM)
  16. 16.  Tools and techniques  Expert judgment  Analogous estimating (top-down estimating)  Quantitatively based durations  Reserve time (contingency) Steps to Create  Determine if WBS needs to be decomposed into smaller activities  Understand resource requirements for each activity  Determine whether best tools & techniques  Determine proper duration estimate for each activity  Analyze each activity for schedule risk  Determine type of reserve time (work unit/percentage)  Add reserve time to each activity where appropriate
  17. 17.  The longest path through the project and has no float (slack time) Should be managed If a task on critical path slips, end date slips Use a mathematical analysis tool & technique of the schedule development process called Critical Path Method (CPM) CPM types  Forward pass: Calculates early start & early finish for each task  Backward pass: Calculates late start & late finish for each task  Float: Subtracts early start from late start or subtracting early finish from late finish
  18. 18.  Another mathematical analysis tool and technique of the schedule development process Focuses on determining project’s duration Uses expected values/weighted averages Relies heavily on mathematics of probability & statistical bell curves Provide more confidence to duration estimates Applied to every task, to certain risky tasks, or to critical path. To Calculate PERT  Optimistic: If everything goes well, how long the task will take  Pessimistic: If everything goes poorly, how long the task will take  Most likely: Original estimate provided(best guess)
  19. 19.  As schedule development tool & technique First is crashing, second is fast tracking Crashing  An analysis method looks at trade-offs between schedule & cost.  Analyze critical path & determine to shorten it.  May fail or success; affect the budget Fast Tracking  An analysis method to reduce duration of projects  To have tasks worked in parallel than sequentially  Look for opportunities on the critical path
  20. 20.  Known as a bar chart Graphic display of schedule related information Depicts the project elements down left side of chart (Y axis) & a time scale across top or bottom of chart (X axis). Tasks with a duration are shown as date-placed horizontal bars Most project managers use a project management software system for creating this chart To create: determine time scale to display the info; determine level of tasks to display; draw chart & place tasks
  21. 21.  Steps to Control  Plan for change ▪ Who can request, approve and review the change ▪ Impact to the schedule ▪ Specific form for request ▪ Reason for the change ▪ Advantages/disadvantages for allowing the change ▪ If it is approved or denied, how to update the schedule, how to notify team & requestor ▪ How to log & track change  Determine if schedule has changed ▪ Planned on doing ▪ Status of existing process ▪ Variance between the two  Manage actual changes on the project ▪ Analysis, decisions, and corrective actions regarding changes and variances will help manage to a successful completion
  22. 22.  Foundation for creating and controlling the costs of a project Steps to Manage  Resource Planning  Types of Cost Estimates  Estimating Costs  Creating a Budget & Baseline  Controlling Changes
  23. 23.  Resource Planning  A planning process done to establish the costs of a project  Determine what resources needed on project  Determine how many of each type of needed resource  Three commonly known types of resources: people, equipment, and materials
  24. 24.  Order of Magnitude Estimates ▪ Done at the very beginning ▪ Derived from information for similar or previous projects ▪ Magnitude estimate fall between–25% and +75% of project actual cost Budget Estimates ▪ Created during the Cost Budgeting process ▪ Cover all of the costs of a project (personnel, equipment, materials) ▪ More precise, falling in the range of –10% to +25% of project actual cost Definitive Estimates ▪ The most detailed & most precise ▪ Derived from an expert /project team looking at a specific task and the duration ▪ Falling in the range of –5% to +10% of project actual cost
  25. 25.  Methods ▪ Analogous estimating ▪ Uses expert judgment and information from previous projects ▪ Top-down estimating to create an order of magnitude estimate ▪ Very subjective, not very accurate ▪ Parametric modeling ▪ Determine what elements should be placed in a mathematical model ▪ Can be used to create any of the three types of estimates ▪ Bottom-up Estimating ▪ Most precise method ▪ Estimating each individual task separately ▪ Look at the effort required to complete a task, not the duration ▪ To create definitive estimates  Determine the unit of measure  Create the estimates
  26. 26.  Inputs  Cost estimates (analogous, parametric modeling, bottom-up) May be very general/specific  WBS Determine which tasks will have costs associated with them  Project schedule Created in the Schedule Development process Provides element of time to your budget Determining Budget  Cost Estimating techniques (resource costs, material, equipment)  Prepare managerial reserves (unpredict situation)  Generate total project budget Creating a Cost Baseline  A copy of the budget prior to work beginning on the project  Kept for comparison, analysis & future forecasts (planned value (PV))  Does not include the managerial reserve
  27. 27.  The Cost Control process is very similar to the Schedule Control process Differentiation is an output called estimate at completion (EAC) EAC is a calculation done at any point that forecasts likely final costs of project To calculate estimate  EAC = AC + ETC Determine the estimate to completion (ETC). ETC is the amount of money needed to complete the project Actual cost (AC) to determine the estimate at completion  EAC = (AC + BAC) – EV Total budget for the project (BAC) and add it to the actual cost (AC) Subtract the work accomplished and the authorized budget for the work (EV)  EAC = (AC + (BAC – EV) ÷ CPI) Take work accomplished & authorized budget for work (EV) Subtract them by the total budgets for project (BAC) Add that figure to the actual monies spent to date (AC) Divide that figure by the cost performance index (CPI)
  28. 28.  Quality Planning Tools Calculating the Cost of Quality Quality Assurance Quality Control
  29. 29.  Inputs  Quality policy A statement regarding company’s beliefs around quality A guiding light for people working on project  Scope statement To verify project deliverables  Product description Information about the desired level of quality that assist in quality management planning  Standards and regulations Outputs  Quality management plan.  Created by project manager & project team  Detail all quality planning activities & who will perform.  Essence: quality will be ensured & how to follow the quality policy
  30. 30.  Cost of quality is the total amount of money required to ensure quality 3 different types of costs  Prevention costs Cover all activities to keep errors out of process in creating the product Including all quality planning, product validation and process validation activities  Appraisal costs Cover all activities to keep errors out of customer’s hands Including quality audits, evaluations, calibration, inspections & field testing  Failure costs Including all costs incurred due to product failure (internal & external) Internal failures : rework costs, product repairs, scrap & additional purchase for inventory External failures : happened after product leaves organization Including warranties, complaint handling, product recalls, legal suits, and harm done to reputation Computing cost of quality: adding the work effort estimate for each activity that is preventative or appraisal in nature to the costs incurred because of any type of failure (internal or external)
  31. 31.  Process focuses on making certain planned quality will be met 2 sets of tools & techniques  Quality planning tools: benchmarking, cost benefit analysis, flowcharting, design of experiments, & cost of quality  Quality audit: A review of the quality management activities; In-depth review will produce findings to identify lessons learned for improvement
  32. 32.  Components of Quality Audit ▪ Determine the auditor (Internal vs External) ▪ Time frames to audit  Initial assessment Conducted at the end of planning process & before project execution Evaluate planned quality assurance work Creates a quality baseline for project planning  Quality progress review Planned at regular intervals/key milestones during project execution Evaluating if the outlined quality activities performed Inspect project quality processes & determine if they are sound  Quality completion review Done at the end of the project & should recap the quality assurance effectiveness in light of final project results ▪ Quality audit process Include a review log that identifies points that will be reviewed during the audit The reviewer should receive relevant materials (product description, quality policy, project schedule, status reports) Outcome: suggested actions for enhancement
  33. 33.  A technical process on product quality Tools and techniques  Inspection Review/verify product quality; Done on a single component/part/entire product  Control chart Graphic display shows measurements of a specific process over time Shows an upper control limit, a lower control & middle line  Statistical sampling Gathering a subset of the total set of units Randomly selecting items to be inspected or reviewed  Flowcharting Determine how problems occur  Trend analysis A set of mathematical computations to determine future outcome  Pareto diagram/Histogram Rank order problems from larger to smallest Majority of defects caused by a few problems (the 80/20 rule)
  34. 34.  Staffing management plan Inputs for a staffing management plan Contents of a staffing management plan
  35. 35.  Document project team how to assign human resources, what to work on, and when to depart from the project Foundation to manage human resources during the project General vs very detailed
  36. 36.  Project interfaces Organizational: coordinating project work across multiple vendors, departments, or both Technical: The way work of project must be done Interpersonal: Relationships among all personnel Staffing requirements Types of resources used on project tasks A subset of created resource plans Describes types of required competencies for each resource type Constraints Factors that limit team’s ability to use resources Can be an organizational rules, team preferences, organizational structures, union agreements
  37. 37.  Organization charts Graphical depiction of project team hierarchy To depict reporting relationships of team members w/ PM Resource assignment matrix (RAM) A diagram merges an organization breakdown structure & WBS How assignments are made A section on assignments includes methodology for assigning team members to specific tasks Roles and responsibilities A roles and responsibilities matrix would include each team member or resource grouping & a list of their responsibilities Attrition management Cover how key personnel & team members are replaced How all project personnel will be reassigned at end of project
  38. 38.  Understanding Your Stakeholders  Stakeholder is anyone positively or negatively impacted by the project; individuals and organizations  Including project manager, sponsor, team members, customers, organization performing the work, functional managers providing team members, operations, and others Communicating with the Team  Effectively communicate with the team  Need to understand complexity of communication  Need to resolve differences using conflict resolution methods. Deciding on Information Distribution  Decide on what to distribute and how to distribute Creating a Communications Plan  Describe types & method to distribute communication  Describe strategy & tactics to communicate the plan  Create a communication matrix
  39. 39.  Performance Reporting  Communicate status and progress  Provide the executives objective measurements  Measure progress based on cost, schedule, and quality (performance)  Tools: Performance reviews, Variance analysis, Trend analysis, Earned value analysis Project Closing  Closing a phase/project, not just closing the project down
  40. 40.  A project management process that helps fend off potential damaging events and identify opportunities for the project Steps  Identifying Risks  Analysis Methods  Types of Risk Responses  Creating a Risk Response Plan
  41. 41.  Major Risks  Technical, quality, or performance Major technical complexity/new technology  Project management Undeveloped project management methodology, inexperienced project manager, or lack of training  Organizational Frequent changes in management, culture that does not support the project, downsizing, or a project that does not fit into the overall strategy can cause many risks  External Legal changes, government regulations, market changes, changes in political influences
  42. 42.  Qualitative Process to determine risk probability & impact Quantitative More detailed & objective than Qualitative Tools are Interviewing (PERT & probability distributions), Sensitivity analysis, Simulation Decision tree analysis & expected value
  43. 43.  Avoidance Overcome risk event by trying to stray away from or eliminate it altogether Transference Transfer risk responsibility to someone else Mitigation Reduce risk probability/impact to project/objectives Acceptance Take consequences if risk is occurred Contingency planning A plan of action if risk event occurs Might have decided to accept risk Plan to deal when happens
  44. 44.  Need to set up a documented and living plan for dealing with the risks Possible items included  Risks & their categories  Owner  Response types  Actual response steps to take & response budget  Contingency plan & possible contingency actions  New risks identified based on risk response plans
  45. 45.  A project management process to perform only if procuring services or goods from someone outside of your organization First decide on the type of contract wanted for project Have a plan for procuring and managing contracts Create a statement of work (SOW) Document evaluation criteria to objectively select vendors Create contract to manage status and change and handle disputes
  46. 46.  Basic contract types  Fixed price/lump sum Predetermined fee for goods/services agreed on  Cost reimbursable Set incentives/penalties in addition to fixed price Floating price contract based on costs the contractor incurs
  47. 47.  Creating a Procurement Management Plan Creating a Statement of Work Evaluating and Selecting the Vendor Creating the Contract
  48. 48.  A plan on how to manage processes and standards for contracts & vendors How to manage vendor solicitations (documents & evaluation criteria) How to obtain contract vendors How to evaluate proposals & make final vendor selection How to negotiate contracts How to manage & administer project’s contracts How to manage procurement management items
  49. 49.  Written to understand expectations of requested work Patterns  Objectives  Product/Service Description  Required Deliverables  Requirements/Specifications  Assumption & constraints  Time estimate
  50. 50.  Elements  Roles and responsibilities  Security  Location of work  Milestones/deliverables  Quantities  Vendor payments  Progress reporting  Testing  Quality
  51. 51.  Does vendor demonstrate the best value, lowest price, or other price comparison advantage? Make sure distinguish what is more important, and evaluate this for the overall life cycle of the project Does vendor demonstrate an understanding of expectations of product & service, as well as how to expect vendor to work during the project? Does vendor clearly demonstrate ability to carry out technical/operational processes needed to perform the work? Judge this on references, previous performance, skill sets of employees within organization assigned to project, and any awards/technical achievements vendor can demonstrate. Will project team be able to work with the vendor management team? Can vendor fulfill obligations of performing work based on the vendor’s financial capabilities?
  52. 52.  Start by using templates of organization’s contracts /previous contracts as a basis Collecting requirements to include in the contract, Working with lawyers and procurement department to put contract together Include following details  Definitions Define all technical & others terms particular to the contract  Scope/statement of work Expected work description/work product from vendor
  53. 53.  Roles and responsibilities Description of who does, approves work, administers contract & manages processes Technical specifications and deliverables Provides specific measurements, specifications & other technical requirements Interpretation of requirements Gives order of precedence for project requirements Schedule States milestones or deliverables expected from vendor Quality assurance/control Describes inspections/audits expected Warranty/guarantee How long product is expected to last Include express warranties for equipment, workmanship, performance/process & design
  54. 54.  Contract administration Describes processes, time frames, escalations for contract administration Price and terms of payment Price information & a schedule of invoicing & payments Laws, regulations, and taxes Any legal regulations specific to state/project Provisions General and special terms and conditions negotiated with the vendor Provisions for early termination How to dissolve contract & distribute payments
  55. 55.  Liabilities and insurance Liability if the project or product is disrupted, is delayed, or fails Confidentiality, privacy, and security Describes confidentiality requirements Employee recruiting Provisions protecting raiding each other’s employees for certain period of time Disputes Escalations, arbitration & other ways to settle disputes Contract completion Cover several SOWs, or may be extended for new work Closure should also center on formal acceptance of all deliverables /contract
  56. 56.  Overarching processes & concepts in project management Project plan  Development takes all info in previous planning processes  Integrates it into one comprehensive document  Serve as a guide during project execution and control.  Has the formal approval of the project stakeholders 8 knowledge areas: scope planning, schedule development, cost budgeting, quality planning, staff acquisition, communications & risk management & procurement planning
  57. 57.  Components  Project charter The formal authorization to start a project  Scope statement Work to be done to deliver product of the project  Work breakdown structure A tool and technique to decompose project scope components into smaller and more manageable components  Project schedule Include all of the major milestones and deliverables
  58. 58.  Resource assignments Resource assignments need to be included in the project plan Project costs Including magnitude estimates, budget estimates, and work estimates Risks Will be updated as new risks are identified, quantified, and risk responses are created Other management plans Including Scope management plan and quality management plan
  59. 59.  Project Execution Project Change Control Project Organizational Structure
  60. 60.  Definition Part of integration management knowledge area Tools & techniques  General management skills Communication, managing, and team development skills  Product skills and knowledge Monitor level of expertise, train & retrain team accordingly  Work authorization system (WAS) System to control sequence of tasks  Status review meetings Meeting conducted to examine project progress  Project management information systems (PMIS) Manual/Mechanized tool to helps PM collect, analyze, & integrate project info
  61. 61.  How to Control:  How to request & can request a change  How to document  System to record and archive changes  How to analyze & review change  How to make & prioritize change  How & Who to approve the request  Manage change within team & configuration control board  How to implement if approved  How to communicate changes  How to monitor project
  62. 62.  Projectized organizations Organized around project management Provide complete authority to PM and provide administrative support Full-Time Personnel Functional organizations Established to perform certain functions (sales, marketing, or accounting) Matrix Organizations Use functional & projectized organizations 3 levels of progression: weak matrix, balanced matrix, and strong matrix
  63. 63.  Work ethically, with regard for customer fairness, and with the latest project management knowledge Code of conduct  Adherence (supporting it and sharing it with others, acting ethically)  Disclosing conflict of interest/impropriety to customers  Advertising qualifications truthfully  Complying with applicable laws  Respecting intellectual property  Providing accurate cost & service estimates & expected results  Sticking to & satisfying scope of objectives  Protecting confidential information  Refraining from taking gifts or payments for personal gain
  64. 64.  A Guide to the Project Management Body of Knowledge, Third Edition (PMBOK Guides) by Project Management Institute, USA, 2004, 140p Information Technology Project Management, Reprint (with Microsoft Project 2007) by Kathy Schwalbe, Thomson Learning, Canada, 2000, 469p Integrated Project Management by K.C. Chan, Peter Ong, R. Eko Indrajit, Andi Publisher, Indonesia, 212p
  65. 65.  LinkedIn: www.linkedin.com/in/goutama Email: goutama@gmail.com Google+: www.gplus.to/goudotmobi Skype: goudotinfo Twitter: @goudotmobi
  66. 66. Q&A
  67. 67. THANK YOU!