IT Project Management PDF

IT PROJECT MANAGEMENT Note: Adapted from slide of the textbook: Schwalbe, Kathy. An Introduction to Project...

IT PROJECT MANAGEMENT Note: Adapted from slide of the textbook: Schwalbe, Kathy. An Introduction to Project Management, Seventh Edition See the text itself for full citations. MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 1 LEARNING OBJECTIVES ¡ Discuss the project cost management planning processes ¡ Create a cost management plan, cost estimate, basis of estimates, cost baseline, and project funding requirements ¡ Summarize planning project schedule and cost management for agile/hybrid projects including the concepts of timeboxing, the Kanban method, and relative sizing MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 2 BASIC PRINCIPLES OF COST MANAGEMENT MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 3 THE IMPORTANCE OF PROJECT COST MANAGEMENT ¡ IT projects have a poor track record for meeting budget goals ¡ A cost overrun is the additional percentage or dollar amount by which actual costs exceed estimates ¡ A 2011 Harvard Business Review study reported an average cost overrun of 27 percent. The most important finding was the discovery of a large number of gigantic overages or “black swans” (a high-impact event that is rare and unpredictable, but not improbable in retrospect) ¡ Cost is a resource sacrificed or foregone to achieve a specific objective or something given up in exchange. Costs are usually measured in monetary units like dollars ¡ Project cost management includes the processes required to ensure that the project is completed within an approved budget MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 4 BASIC PRINCIPLES OF COST MANAGEMENT ¡ Most members of an executive board better understand and are more interested in financial terms than IT terms, so IT project managers must speak their language ¡ Profits are revenues minus expenditures ¡ Profit margin is the ratio of revenues to profits ¡ Life cycle costing considers the total cost of ownership, or development plus support costs, for a project ¡ Cash flow analysis determines the estimated annual costs and benefits for a project and the resulting annual cash flow MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 5 TYPES OF COSTS AND BENEFITS ¡ Tangible costs or benefits are those costs or benefits that an organization can easily measure in dollars ¡ Intangible costs or benefits are costs or benefits that are difficult to measure in monetary terms ¡ Direct costs are costs that can be directly related to producing the products and services of the project ¡ Indirect costs are costs that are not directly related to the products or services of the project, but are indirectly related to performing the project ¡ Sunk cost is money that has been spent in the past; when deciding what projects to invest in or continue, you should not include sunk costs ↳ Jiaya yang dulu projective dilanjut hisnya Judah tidal dipernitinglan 19 menutistan until aparah atan tidal MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 6 MORE BASIC PRINCIPLES OF COST MANAGEMENT ¡ Learning curve theory states that when many items are produced repetitively, the unit cost of those items decreases in a regular pattern as more units are produced ¡ Reserves are dollars included in a cost estimate to mitigate cost risk by allowing for future situations that are difficult to predict ¡ Contingency reserves allow for future situations that may be partially planned for (sometimes called known unknowns) and are included in the project cost baseline ¡ Management reserves allow for future situations that are unpredictable (sometimes called unknown unknowns MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 7 PROJECT COST MANAGEMENT TRADITIONAL APPROACH MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 8 PROJECT COST MANAGEMENT ¡ Project cost management includes the processes required ¡ Estimating costs: developing an approximation to ensure that a project team completes a project within an or estimate of the costs of the resources needed approved budget. to complete a project ¡ Planning cost management :determining the ¡ Determining the budget: allocating the overall policies, procedures, and documentation that will be cost estimate to individual work items to establish a used for planning, executing, and controlling baseline for measuring performance project cost. ¡ Controlling costs: controlling changes to the project budget MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 9 1. PLANNING COST MANAGEMENT Contents of the schedule management plan can include the following: ¡ units of measure, such as staff hours or days or a lump sum amount, currency to be used, inflation assumptions, etc. ¡ The purpose of this process is to determine the policies, procedures, and ¡ level of precision for cost estimates, such as how to round numbers documentation for planning, managing, ¡ level of accuracy, such as +/-10% executing, and controlling project costs. ¡ organizational procedure links ¡ The project team holds meetings, consults with experts, and analyzes data to help ¡ control thresholds for monitoring cost performance, such as a produce a cost management plan, which percentage deviation from the baseline plan becomes a component of the project ¡ rules of performance measurement, especially if earned value management plan. management is used ¡ reporting formats and frequency for cost reports ¡ additional details about cost activities, such as strategic funding choices, procedures to account for currency fluctuations, and procedures for recording costs MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 10 2. ESTIMATING COST ¡ Project teams normally prepare cost estimates at various stages of a project, and these estimates should be fine-tuned as time progresses. ¡ after the project manager and team are assigned to a project, they prepare a more detailed cost estimate. ¡ If this estimate is substantially different from the initial budgeted amount, the project manager should negotiate with the project sponsor to increase or decrease the budget, or to make changes to the scope or time goals to meet cost constraints. ¡ it is also important to provide supporting details in the basis of estimates ¡ A large percentage of total project costs are often labor costs MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 11 COST ESTIMATION TOOLS AND TECHNIQUES ¡ Basic tools and techniques for cost estimates: ¡ Analogous or top-down estimates: use the actual cost of a previous, similar project as the basis for estimating the cost of the current project ¡ Bottom-up estimates: involve estimating individual work items or activities and summing them to get a project total ¡ Parametric modeling uses project characteristics (parameters) in a mathematical model to estimate project costs MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 12 EXAMPLE OF COST ESTIMATE MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 13 3. COST BUDGETING ¡ Project cost budgeting involves allocating the project cost estimate to activities over time. ¡ These activities are based on the work breakdown structure for the project. ¡ The main goal of the cost budgeting process is to produce a cost baseline and project budget. ¡ A cost baseline is a time-phased budget that project managers use to measure and monitor cost performance. MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 14 PROJECT BUDGET COMPONENT MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 15  Funding budget dilakukan bertahap untul secora. THE RELATIONSHIP BETWEEN THE COST BASELINE, EXPENDITURES, AND FUNDING REQUIREMENTS ¡ The uneven, step-like pattern for the funding requirements is due to the fact that many projects are funded in incremental amounts that may not be equally distributed. MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 16 SAMPLE COST BASELINE ¡ it is important for the team to document the assumptions they made when developing the cost baseline and have several experts review it. ¡ The cost baseline should also be updated as more information becomes available. MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 17 PROJECT COST MANAGEMENT AGILE APPROACH MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 18 COST PLANNING FOR AGILE PROJECT ¡ Ideally, members of Scrum teams should be 100% dedicated to the project and identified at the start of the project to ensure they have all the skills required to perform the work. ¡ When this is the case, cost planning is simply based on taking the specific team members and their rates and multiplying by the number of iterations and then adding costs like overhead, materials, and third-party expenses. ¡ Unlike predictive projects, therefore, there is no total project budget or detailed cost estimate for the entire project or for various WBS items. ¡ The organization must provide the funding for the initial sprints and be able to provide additional funding as needed for the project to continue, if desired. MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 19 RELATIVE ESTIMATES > - biasa melihat user story , melihat Jorp besar berdasarkan ↳ membanding ka jumiah naring a. satruser story dan user story lain. ¡ Instead of creating time or cost estimates for work packages as discrete numbers or a range of numbers based on hours or dollars, agile teams often use relative estimates. ¡ Instead of estimating user stories separately, they are compared to each other or grouped by equivalent difficulty based on factors like risk, complexity, and required labor. ¡ How much work a team can do within a sprint depends on the team’s velocity, MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 20 POPULAR AGILE ESTIMATING METHODS ↳i membandingkan satu user story dengan user story yong lain ¡ T-shirt sizing: XS, S, M, L, XL, XXL. ¡ Planning poker: Team members are given a set of playing cards with a sequence of numbers on them, like the Fibonacci sequence: 0, 1, 1, 2, 3, 5, 8, 13, 21, etc. The product owner describes a user story, and there is a short discussion for clarification. Every team member will choose one card without letting anyone else see it. Everyone then flips over their cards, and if they are all the same, the estimate is confirmed. If they are different, team members will discuss their estimates, then cards can be flipped again, and the team eventually comes to a consensus. ¡ The bucket system: There is a bucket based on the Fibonacci or modified Fibonacci sequence. The team works together to put each user story in the appropriate bucket. The simplest form of a bucket system is the LUS system, meaning large, uncertain, or small. MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 21 POPULAR AGILE ESTIMATING METHODS ¡ Affinity estimates: There are three steps to affinity estimating: ¡ Silent relative sizing: Each estimator uses sticky notes to place user stories on one end of a horizontal spectrum on a wall with “small” on the left and “large” on the right. ¡ Editing the wall: Team members discuss the user stories with the product owner and each other to edit the location of items on the wall as needed. ¡ Placing items into more specific sizes: The scale is then modified to have categories. Team members move their sticky notes around, and the product owner reviews them. As long as the estimates are not more than one size/number off, they are fine; otherwise, the user story is discussed in further detail until the team reaches consensus. Note that some agile teams do still estimate how many hours it will take to complete a user story, especially if they have a good track record for completing similar work. MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 22 CHAPTER SUMMARY ¡ Planning processes for cost management using a predictive approach include planning cost management, estimating costs, and determining the project budget. ¡ There are several methods for creating cost estimates, such as analogous, bottom-up, and parametric. ¡ A cost baseline is a time-phased budget that project managers use to measure and monitor cost performance. ¡ Teams use relative estimates to determine how long it will take them to complete user stories. Hybrid projects can use both predictive and agile approaches. MANAJEMEN PROYEK TI 2024/2025 – FASILKOM UI 23