1. TMHG 526
Project Management
Nawanan Theera‐Ampornpunt, M.D., Ph.D.
Faculty of Medicine Ramathibodi Hospital
Mahidol University
April 11, 2013

2. IT Project Management
Marchewka (2006) Marchewka (2009)

3. Introduction
• Information Technology (IT) projects are organizational
investments that require
– Time
– Money
– Other resources such as people, technology, facilities, etc.
• Organizations expect some type of value in return of this
investment
• IT Project Management is a relatively new discipline that
combines traditional Project Management with Software
Engineering/Management Information Systems to make IT
projects more successful.

4. An ITPM Approach
• Organizational resources are limited, so
organizations must choose among competing
interests to fund specific projects.
• This decision should be based on the value a
competing project will provide to an organization.

5. Which Situation Is Worse?
• Successfully building and implementing a system
that provides little or no value to the
organization.
Or…
• Failing to implement an information system that
could have provided value to the organization,
but was poorly developed or poorly managed.

6. The Software Crisis
• The CHAOS study published in 1995 by The Standish
Group found that although the U.S. spent over $250
billion on IT projects, approximately…
–31% were cancelled before completion
–53% were completed but over budget, over
schedule, and did not meet original specifications.
• For mid-size companies, average cost overruns
were 182%, while average schedule overruns
were 202%!

8. Why Do IT Projects Fail?
• Larger projects have the lowest success rate and
appear to be more risky than medium and smaller
projects
–Technology, business models and markets change
so rapidly that a project that takes more than a
year can be obsolete before they are completed.
• The Chaos study also provides some insight as to the
factors that influence project success.

10. Has the Current State of IT Projects
Changed Since 1995?
• The Standish Group has continued to study IT
projects over the years.
• In general, IT Projects are showing higher success
rates due to
–Better project management tools & processes
–Smaller projects
–Improved communication among stakeholders
–More skillful IT project managers
• But there is still ample opportunity for improvement!

11. New Top Ten Factors for IT Project Success
Rank Success Factor
1 User Involvement
2 Executive Support
3 Clear Business Objectives
4 Emotional Maturity
5 Optimizing Scope
6 Agile Process
7 Project Management Expertise
8 Skilled Resources
9 Execution
10 Tools and Infrastructure
Source: The Standish Group. CHAOS (West Yarmouth, MA: 1995, 2010) and http://www.infoq.com/articles/Interview‐Johnson‐Standish‐CHAOS.
(cited in Marchewka JT. Information technology project management. 4th ed. Singapore: John Wiley & Sons;2013.

12. Summary of CHAOS Studies from 1994 to 2008
Figure 1.1 Sources: www.standishgroup.com

13. Improving the Likelihood of Success
• Socio-technical Approach
• Project Management Approach
– processes and infrastructure (Methodology)
– resources
– expectations
– competition
– efficiency and effectiveness
• Knowledge Management Approach
– lessons learned, best practices and shared knowledge

14. IT Project Management
• A project: “a temporary endeavor undertaken to
accomplish a unique purpose”
• Project management: “the application of
knowledge, skills, tools, and techniques to
project activities in order to meet or exceed
project requirements”
Marchewka (2006)

15. The Context of Project Management - Project Attributes
• Time Frame
• Purpose (to provide value!)
• Ownership
• Resources (the triple constraint)
• Roles
– Project Manager
– Project Sponsor
– Subject Matter Experts
– Technical Experts
• Risk & Assumptions
• Interdependent Tasks
• Planned Organizational Change
• Operate in Environments Larger than the Project Itself

16. Class Exercise
The Importance of Project Management
Group discussion: Without proper Project
Management, what can go wrong with the IT
projects?

17. The Project Management Dilemma
Good Fast
Project
Deliverables
Cheap

18. The Triple Constraint
Marchewka (2006)

19. The Project Life Cycle & IT Development
• Project Life Cycle (PLC)
– A collection of logical stages or phases that maps the life
of a project from its beginning to its end in order to define,
build and deliver the product of the project – i.e., the
information system
• Projects are divided into phases to increase
manageability and reduce risk
– Phase exits, stage gates, or kill points are decision points
at the end of each phase to evaluate performance, correct
problems or cancel the project
– Fast tracking is the overlapping of phases to reduce the
project’s schedule
• Can be risky!

20. Project Life Cycle
Marchewka JT (2006)

21. Software Development Life Cycle (SDLC)
• Represents the sequential phases or stages an information
system follows throughout its useful life
• Useful for understanding the development of the project’s
largest work product – the application system
• Phases/Stages
– Planning
– Analysis
– Design
– Implementation
– Maintenance and Support

22. Software Development Life Cycle
Marchewka JT (2006)

23. Relationship Between PLC & SDLC
• The systems development life cycle (SDLC)
becomes part of the project life cycle (PLC).
–The PLC focuses on the project management
phases, processes, tools and techniques for
effectively managing the project.
–The SDLC focuses on the software engineering
phases, processes, tools and techniques for building
and/or implementing the IT solution.

24. PLC & SDLC
Marchewka JT (2006)

25. IT Project Management Methodology
Marchewka JT (2006)

26. Putting the SDLC into Practice
• Structured Approach to Systems
Development
–Waterfall Method
• Rapid Applications Development (RAD)
–Prototyping
–Spiral Development
–Extreme Programming

27. Structured Approaches:
Waterfall Method

28. Extreme Project Management (XPM)
• A new approach and philosophy to project management that
is becoming increasingly popular.
• Characterizes many of today’s projects that exemplify speed,
uncertainty, changing requirements and high risks.
• Traditional project management often takes an orderly
approach while XPM embraces the fact that projects are often
chaotic and unpredictable.
• XPM focuses on flexibility, adaptability and innovation
• Traditional and new approaches together can provide us with
a better understanding of how to improve the likelihood of
project success.

29. The Project Management
Body of Knowledge (PMBOK ®)
• The Guide to the Project Management Body of Knowledge (PMBOK®
Guide) documents 9 project management knowledge areas.
• The PMBOK® Guide is published and maintained by the Project
Management Institute (PMI).
– http://www.pmi.org
• PMI provides a certification in project management called the Project
Management Professional (PMP) that many people today believe will
be as relevant as a CPA certification.
• PMP certification requires that you pass a PMP certification exam to
demonstrate a level of understanding about project management, as
well as satisfy education and experience requirements, and agree to a
professional code of conduct.

30. The Project Management
Body of Knowledge (PMBOK ®)
1. Project Integration Management
2. Project Scope Management
3. Project Time Management
4. Project Cost Management
5. Project Quality Management
6. Project Human Resources Management
7. Project Communications Management
8. Project Risk Management
9. Project Procurement Management
Marchewka (2006)

31. Project Management Body of Knowledge Areas
Marchewka (2006)

32. Developing The Business Case
Marchewka (2006)

33. Measurable Organizational Value (MOV)
• The project’s goal
• Measure of success
• Must be measurable
• Provides value to the organization
• Must be agreed upon
• Must be verifiable at the end of the project
• Guides the project throughout its life cycle
• Should align with the organization’s strategy and goals
Marchewka (2006)

34. The IT Value Chain
Marchewka (2006)

35. A Good Project Goal
“Our goal is to land a man on the
moon and return him safely
to the earth by the end of the decade.”
John F. Kennedy (1961)
Marchewka (2006)

36. Metrics: Financial
• Payback Period = Initial Investment
Net Cash Flow
• Breakeven Point = Initial Investment
Net Profit Margin
• Project ROI = (Total Expected Benefits - Total Expected Costs)
Total Expected Costs
Marchewka (2006)

37. Metrics: Scoring Method
Criterion Weight Alternative A Alternative B Alternative C
ROI 15% 2 4 10
Financial Payback 10% 3 5 10
Net Present Value (NPV) 15% 2 4 10
Alignment with strategic
objectives 10% 3 5 8
Organizational
Likelihood of achieving
project’s MOV 10% 2 6 9
Availability of skilled
team members 5% 5 5 4
Maintainability 5% 4 6 7
Project
Time to develop 5% 5 7 6
Risk 5% 3 5 5
Customer satisfaction 10% 2 4 9
External
Increased market share 10% 2 5 8
Marchewka Total Score 100% 2.65 4.85 8.50
(2006) Notes: Risk scores have a reverse scale – i.e., higher scores for risk imply lower levels of risk

38. Balanced Scorecard
Marchewka (2006)

39. MOV & Scorecard
Marchewka (2006)

40. IT Project Management Methodology
Marchewka (2006)

41. Project Charter Template
Marchewka (2006)

42. Formulating Project Plan
Marchewka (2006)

43. Project Scope
In‐Scope Out‐of‐Scope

44. Project Planning Framework
Marchewka (2006)

45. Gantt Chart
Marchewka (2006)

46. PERT Chart
http://en.wikipedia.org/wiki/Program_Evaluation_and_Review_Technique

47. Activity On The Node (AON)
Network Diagram
Marchewka (2006)

48. Project Scheduling
• Critical Path Method (CPM)
• Precedence Diagramming Method (PDM)
• Lead Time & Lag Time
Marchewka (2006)

49. Work Breakdown Structure
Marchewka (2006)

50. Project Schedule Estimation Techniques
• Guesstimating
• Delphi Technique
• Time Boxing
• Top-Down
• Bottom Up
• Analogous Estimates (Past experiences)
• Parametric Modeling (Statistical)
Marchewka (2006)

51. Project Budget
• Direct/up-front costs
– Materials
– Services
– Labor
• Ongoing costs
• Indirect costs
– Facilities, utilities
– Administration
– Taxes
– Benefits
• (Opportunity & productivity costs)
• (Sunk costs)
• Learning curve
• Reserves
• Total Cost of Ownership (TCO)

52. Project Human Resource Management
• Project team members, roles & responsibilities
• Organizational structure
– Functional
– Project-based
– Matrix
• Stakeholder analysis
Marchewka (2006)

53. Project Risk Management
Risk = f(likelihood x impact)
Risk Strategies
• Accept/ignore
• Avoid completely
• Reduce risk
likelihood or impact
• Transfer risk to
someone else (e.g.
insurance)
Marchewka (2006)