Project Integration and Scope Mgt. Lecture 3 & 4 PDF

Project Planning & Integration Management 1 2 The Key to Overall Project Success: Good Project Integration Management Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle Many new project managers have trouble looking at...

Project Planning & Integration Management 1 2 The Key to Overall Project Success: Good Project Integration Management Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle Many new project managers have trouble looking at the “big picture” and want to focus on too many details Project integration management is not the same thing as software integration 3  Project Integration Management Processes 1. Project Plan Development: taking the results of other planning processes and putting them into a consistent, coherent document—the project plan 2. Project Plan Execution: carrying out the project plan 3. Integrated Change Control: coordinating changes across the entire project 4  Framework for Project Integration Management Focus on pulling everything together to reach project success! 5  Project Plan Development A project plan is a document used to coordinate all project planning documents Its main purpose is to guide project execution Project plans assist the project manager in leading the project team and assessing project status Project performance should be measured against a baseline project plan 6 Attributes of Project Plans Just as projects are unique, so are project plans Plans should be dynamic Plans should be flexible Plans should be updated as changes occur Plans should first and foremost guide project execution 7 Common Elements of a Project Plan ◦Introduction or overview of the project ◦Description of how the project is organized ◦Management and technical processes used on the project ◦Work to be done, schedule, and budget information 8  Sample Outline for a Software Project Management Plan (SPMP) Project Management Plan Sections Introduction Project Managerial Technical Work Organization Process Process Packages, Schedule, and Budget Section Project Process model; Management Methods, tools, Work of overview; organizational objectives and and packages; Topics project structure; priorities; techniques; Dependencies; deliverables; organizational assumptions, software resource evolution of boundaries and dependencies, documentation; requirements; the SPMP; interfaces; and and project budget and reference project constraints; support resource materials; responsibilities risk functions allocation; definitions and management; and schedule acronyms monitoring and controlling mechanisms; and staffing plan IEEE Std 10581-1987 9 Stakeholder Analysis A stakeholder analysis documents important (often sensitive) information about stakeholders such as stakeholders’ names and organizations roles on the project unique facts about stakeholders level of influence and interest in the project suggestions for managing relationships 10 Sample Stakeholder Analysis Key Stakeholders Ahmed Susan Erik Mark David Organization Internal Project team Project team Hardware Project senior vendor manager for management other internal project Role on Sponsor of DNA Lead Supplies Competing project project and sequencing programmer some for company one of the expert instrument resources company's hardware founders Unique facts Demanding, Very smart, Best Start-up Nice guy, likes details, Ph.D. in programmer company, he one of oldest business biology, I know, knows we people at focus, easy to work weird sense can make company, Stanford with, has a of humor him rich if has 3 kids in MBA toddler this works college Level of Very high Very high High Very high Low to interest medium Level of Very high; Subject High; hard Low; other Low to influence can call the matter to replace vendors medium shots expert; available critical to success Suggestions Keep Make sure Keep him Give him He knows on managing informed, let she reviews happy so he enough lead his project relationship him lead specification stays; time to takes a back conversation s and leads emphasize deliver seat to this s ,do as he testing; can stock hardware one, but I says and do some options; can learn quickly work from likes from him home Mexican food 11 Project Plan Execution Project plan execution involves managing and performing the work described in the project plan The majority of time and money is usually spent on execution The application area or the project directly affects project execution because the products of the project are produced during execution 12 Important Skills for Project Execution ◦General management skills like leadership, communication, and political skills ◦Product skills and knowledge ◦Use of specialized tools and techniques 13 Tools and Techniques for Project Execution Work Authorization System: a method for ensuring that qualified people do work at the right time and in the proper sequence Status Review Meetings: regularly scheduled meetings used to exchange project information Project Management Software: special software to assist in managing projects 14 Integrated Change Control Integrated change control involves identifying, evaluating, and managing changes throughout the project life cycle (Note: 1996 PMBOK called this process “overall change control”) Three main objectives of change control: Determine that a change has occurred Influence the factors that create changes to ensure they are beneficial Manage actual changes when and as they occur 15 Integrated Change Control Process 16 Change Control on Software Projects Former view: The project team should strive to do exactly what was planned on time and within budget Problem: Stakeholders rarely agreed up-front on the project scope, and time and cost estimates were inaccurate Modern view: Project management is a process of constant communication and negotiation Solution: Changes are often beneficial, and the project team should plan for them 17 Change Control System A formal, documented process that describes when and how official project documents and work may be changed Describes who is authorized to make changes and how to make them Often includes a Change Control Board (CCB), configuration management, and a process for communicating changes 18  Change Control Boards (CCBs) A formal group of people responsible for approving or rejecting changes on a project Provides guidelines for preparing change requests, evaluates them, and manages the implementation of approved changes Includes stakeholders from the entire organization 19  Making Timely Changes  Some CCBs only meet occasionally, so it may take too long for changes to occur  Some organizations have policies in place for time- sensitive changes  “48 hour policy” allowed project team members to make decisions, then they had 48 hours reverse the decision pending senior management approval  Delegate changes to the lowest level possible, but keep everyone informed of changes 20 Configuration Management Ensures that the products and their descriptions are correct and complete Concentrates on the management of technology by identifying and controlling the functional and physical design characteristics of products Configuration management specialists identify and document configuration requirements, control changes, record and report changes, and audit the products to verify conformance to requirements 21 Suggestions for Managing Integrated Change Control View project management as a process of constant communications and negotiations Plan for change Establish a formal change control system, including a Change Control Board (CCB) Use good configuration management Define procedures for making timely decisions on smaller changes Use written and oral performance reports to help identify and manage change Use project management and other software to help manage and communicate changes 22 Project Scope Management 23 What is Project Scope Management? ◦ Scope refers to all the work involved in creating the products of the project and the processes used to create them ◦ Project scope management includes the processes involved in defining and controlling what is or is not included in the project ◦ The project team and stakeholders must have the same understanding of what products will be produced as a result of a project and what processes will be used in producing them 24 Project Scope Management Processes 1) Initiation: authorizing the project or phase 2) Scope planning: developing documents to provide the basis for future project decisions 3) Scope definition: subdividing the major project deliverables into smaller, more manageable components 4) Scope verification: formalizing acceptance of the project scope 5) Scope change control: controlling changes to project scope 25  Project Initiation: Strategic Planning and Project Selection ◦ The first step in initiating projects is to look at the big picture or strategic plan of an organization ◦ Strategic planning involves determining long-term business objectives ◦ IT projects should support strategic and financial business objectives 26 Identifying Potential Projects ◦Many organizations follow a planning process for selecting IT projects ◦First develop an IT strategic plan based on the organization’s overall strategic plan ◦Then perform a business area analysis ◦Then define potential projects ◦Then select IT projects and assign resources 27 Information Technology Planning Process 28 Methods for Selecting Projects ◦There are usually more projects than available time and resources to implement them ◦It is important to follow a logical process for selecting IT projects to work on ◦Methods include focusing on broad needs, categorizing projects, financial methods, and weighted scoring models 29 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 30 Categorizing IT Projects ◦ One categorization is whether the project addresses ◦ a problem ◦ an opportunity, or ◦ a directive ◦ Another categorization is how long it will take to do and when it is needed ◦ Another is the overall priority of the project 31 Financial Analysis of Projects ◦ Financial considerations are often an important consideration in selecting projects ◦ Three primary methods for determining the projected financial value of projects: ◦ Net present value (NPV) analysis ◦ Return on investment (ROI) ◦ Payback analysis 32 Net Present Value 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 ◦ Projects with a positive NPV should be considered if financial value is a key criterion ◦ The higher the NPV, the better 33  NPV can be computed using the following formula Where: r= discount rate t= year n= analysis horizon (in years) * The annual percentage rate that an amount of money is discounted to bring it to a present value 34 Net present value example Note that totals are equal, but NPVs are not because of the time value of money. 35 Return on Investment Where r= rate y=year 36 Payback Analysis ◦ Another important financial consideration is payback analysis ◦ The payback period is the amount of time it will take to recoup, in the form of net cash inflows, the net dollars invested in a project ◦ Payback occurs when the cumulative discounted benefits and costs are greater than zero ◦ Many organizations want IT projects to have a fairly short payback period 37 NPV, ROI, AND PAYBACK ANALYSIS FOR PROJECT 1 38 NPV, ROI, and Payback Analysis for Project 2 39 Weighted Scoring Model ◦ A weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria ◦ First identify criteria important to the project selection process ◦ Then assign weights (percentages) to each criterion so they add up to 100% ◦ Then assign scores to each criterion for each project ◦ Multiply the scores by the weights and get the total weighted scores ◦ The higher the weighted score, the better 40  Since Project 2 has the highest weighted project score, it is the winner! Project 4 Project 3 Project 2 Project 1 0 10 20 30 40 50 60 70 80 90 41 Project Charters ◦After deciding what project to work on, it is important to formalize projects ◦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 42 Scope Planning and the Scope Statement ◦ A scope statement is a document used to develop and confirm a common understanding of the project scope. It should include ◦ a project justification ◦ a brief description of the project’s products ◦ a summary of all project deliverables ◦ a statement of what determines project success 43 Scope Planning and the Work Breakdown Structure ◦After completing scope planning, the next step is to further define the work by breaking it into manageable pieces ◦Good scope definition ◦helps improve the accuracy of time, cost, and resource estimates ◦defines a baseline for performance measurement and project control ◦aids in communicating clear work responsibilities 44 The Work Breakdown Structure ◦ A work breakdown structure (WBS) is an outcome-oriented analysis of the work involved in a project that defines the total scope of the project ◦ It is a foundation document in project management because it provides the basis for planning and managing project schedules, costs, and changes 45 Sample Intranet WBS Organized by Product 46 Intranet Project … Level-2 WBS 1. Website design 1.1. Site map 1.2. graphic design 2. Home page design 2.1. Text 2.2. Images 2.3. Hyperlinks 3. Marketing pages 4. Sales pages 47 Sample Intranet WBS Organized by Phase 48 Approaches to Developing WBSs ◦ Using guidelines: Some organizations, like the DoD, provide guidelines for preparing WBSs ◦ The analogy approach: It often helps to review WBSs of similar projects ◦ The top-down approach: Start with the largest items of the project and keep breaking them down ◦ The bottom-up approach: Start with the detailed tasks and roll them up 49 Scope Verification and Scope Change Control It is very difficult to create a good scope statement and WBS for a project It is even more difficult to verify project scope and minimize scope changes Many Software projects suffer from scope creep and poor scope verification ◦ FoxMeyer Drug filed for bankruptcy after scope creep on a robotic warehouse ◦ Engineers at Grumman called a system “Naziware” and refused to use it 50 I thank you. 51