Information Technology Project Management

-The deliverables or work products that must be completed in order to achieve the project’s MOV.
-Provides a boundary so that what needs to get done – gets done.
-Otherwise, schedule and budget are increased for no reason
-Defines what is part of the project team’s work and what is not.
-This also sets expectations for all of the project’s stakeholders
-Provides a link between the project’s MOV and the project plan.
Project Planning Framework
Project Planning Framework
Project Management Process
Scope Planning
Scope Definition
Create Work Breakdown Structure
Scope Verification
Scope Change Control
Scope Planning
The development of a scope management plan that defines the project’s scope and how it will be verified and controlled throughout the project. Scope Management Plan
Scope Definition
A detailed scope statement that defines what work will and will not be part of the project and will serve as a basis for all future project decisions. Detailed Project Scope
Create Work Breakdown Structure
The decomposition or dividing of the major project deliverables into smaller and more manageable components; an important tool that ties the project’s scope to resources and activities. The WBS represents a logical decomposition of the work to be performed and focuses on how the product, service, or result is naturally subdivided. It is an outline of what work is to be performed.
Scope Verification
Confirmation and formal acceptance that the project’s scope is accurate, complete, and supports the project’s MOV. Scope Verification Checklist
Scope Change Control
Ensuring that controls are in place to manage proposed scope changes once the project’s scope is set; helps the project achieve its MOV. These procedures must be communicated to all project stakeholders. Scope Change Control Process (Scope Change Request Form/Scope Change Request Log)
Project Scope Initiation & Planning
A beginning process that formally authorizes the project manager and team to develop the scope management plan
This entails:
Conceptualizing the Scope Boundary
Developing the Scope Statement
Scope Boundary
The first step to establishing what is, and what is not, part of the project work to be completed by the project team (fence designed to keep some things in (supports MOV) and other things out (does not support MOV))
Scope Management Plan
the processes and techniques for defining and managing scope
Scope Statement
Provides a way to define the scope boundary.
A narrative of what deliverables or work-products the project team will and will not provide throughout the project.
A first step that provides a high-level abstraction of the project’s scope that will be defined in greater detail as the project progresses.
Project Scope Definition
Where deliverables can be divided into project- oriented deliverables and product- oriented deliverables.
Project-Oriented Scope
Deliverables that support the project management and IT development processes defined in the Information Technology Project Methodology (ITPM).
Business case, project charter and project plan, etc.
Definition Tools: DDT & DSC
Deliverable Definition Table (DDT)
define all of the project- oriented deliverables to be provided by the project team.
Deliverable Structure Chart (DSC)
can be developed as an interim step to define detailed work packages that will be used to estimate the project schedule and budget (used to create WBS)
Product-Oriented Scope
High-level features and functionality of the application system
First cut for requirements definition that will be defined in greater detail during the systems development life cycle (SDLC)
Add new customer, look up customer balance, print daily sales report by region, etc.
Definition Tools: DFD & UCD
(Context) Dataflow Diagram (DFD)
modeling tool for refining the scope boundary and defining what the system must do
Use Case Diagram
a powerful tool for identifying the main functions or features of the system and the different users or external systems that interact with the system; used in OO world as a part of Unified Modeling Language (UML)
Scope Verification
That the project’s scope is well-defined, accurate and complete
The project’s scope is acceptable to the project stakeholders
That standards exist so that the project’s scope will be completed correctly
That the project’s MOV will be achieved if the project scope is completed
Tools: Scope Verification Checklist
Scope Verification Checklist
Quality Standards
Review and Acceptance
Scope Change Control – Mitigates
Scope Grope
Scope Creep
Scope Leap
Scope Grope
metaphor that describes a project team’s inability to define the project’s scope.
Use Case
depicts the major functions the system must perform for an actor or actors.
a group- based method where the users and systems analysts jointly define the system requirements or design the system (Joint Application Development)
Scope Creep
refers to increasing featurism, adding small yet time- and resource- consuming features to the system once the scope of the project has been approved.
Scope Leap
scope leap sug-gests a fundamental and significant change in the project scope (changes MOV; happens as a result of changes in the environment, the business, and the competitive makeup of the industry)
Project Time Management
focuses on the processes necessary to develop the project schedule and to ensure that the project is completed on time.
Activity definition
Activity sequencing
Activity duration estimation
Schedule development
Schedule control
Activity definition
Identifying what activities must be completed to produce the project scope deliverables
Activity sequencing
Determining whether activities can be completed sequentially or in parallel and any dependencies that may exist among them
Activity resource estimation
Identifying the type of resources ( people, tech-nology, facilities, etc.) and the quantity of resources needed to carry out project activities
Activity duration estimation
Estimating the time to complete each activity
Schedule development
Based on the availability of resources, the activities, their sequence, and time estimates, a schedule for the entire budget can be developed
Schedule control
Ensuring that proper processes and procedures are in place in order to control changes to the project schedule
Work Package
Work Package
Work Package (def)
smaller components and more manageable units of work of the project decomposed or subdivided by the WBS
a significant event or achievement that provides evidence that that deliverable has been completed or that a phase is formally over.
proof of concepts
Tangible, verifiable work products
Reports, presentations, prototypes, etc.
Milestones (key components)
Significant events or achievements
Acceptance of deliverables or phase completion
Cruxes (proof of concepts)
Quality control
Keeps team focused
Developing the WBS
The WBS Should Be Deliverable-Oriented
The WBS Should Support the Project’s MOV
Ensure WBS allows for the delivery of all the project’s deliverables as defined in project scope
100 percent rule
The Level of Detail Should Support Planning and Control
Developing the WBS Should Involve the People Who Will Be Doing the Work
Learning Cycles and Lessons Learned Can Support the Development of a WBS
Estimation Techniques - The Project Management Approach
Delphi Technique
Time Boxing
Bottom Up
Analogous Estimates (Past experiences)
Parametric Modeling (Statistical)
Based on feeling not facts
Not a good method for estimating but often used by inexperienced project managers
Delphi Technique
Involves multiple, anonymous experts
Each expert makes an estimate
Estimates compared:
If close, can be averaged
Else do another iteration until consensus is reached
Time Boxing
A “box” of time is allocated for a specific Activity or task or deliverable
Can focus a team if used effectively
Can demoralize a team if used too often or ineffectively because of the increased stress or pressure on the project team to get things done
Top-Down Estimating
Top & middle managers determine overall project schedule &/or cost
Lower level managers are expected to breakdown schedule/budget estimates into specific activities (WBS)
Often couched in terms of what a project should cost and how long it should take as decreed by a member of top management who thinks those parameters are appropriate.
May be a response to the business environment
May lead to a death march project.
Bottom-Up Estimating
Most common form of project estimation
Schedules & budgets are constructed from the WBS
Starts with people who will be doing the work
Schedules & budgets are the aggregate of detailed activities & costs
Analogous estimating
based on similarity between current projects and others.
Use information from previous, similar projects as a basis for estimation
Parametric Modeling
Use project characteristics (parameters) in a mathematical model to estimate
Example: $50/ LOC based on:
Programming language
Level of expertise
Size & complexity
Project Estimation - Software Engineering Approaches
Lines of Code (LOC)
Function Points
Determinants of Estimating the Largest Deliverable of the Project - The Application System
Determinants of Estimating the Largest Deliverable of the Project – The Application System
Lines of Code (LOC)
An often used metric for determining the size of the project
Most controversial
Count comments?
Declaring variables?
Efficient code vs. code bloat
Language differences
Easier to count afterwards than to estimate before programming begins
Function Point Analysis
are a synthetic metric, similar to ones used every day, such as hours, kilos, tons, nautical miles, degrees Celsius, and so on. However, function points focus on the functionality and complexity of an application system or a particular module.
Allan Albrecht, IBM – 1979
Independent of the Technology
IFPUG standards (
COnstructive COst MOdel
Parametric Model developed by Barry Boehm in 1981
Project types
Routine projects where the work is expected to go smoothly with few problems
Challenging projects that may be new ground for the organization or project team
In between organic and embedded. Projects that may not be simple and straightforward, but there is a high degree of confidence that the project team can meet the challenge
COCOMO Models (Calculate Effort)
Organic – Routine
Person Months = 2.4 * KDSI1.05
Embedded – Challenging
Person Months = 3.6 * KDSI1.20
Semi-Detached – Middle
Person Months = 3.0 * KDSI1.12
COCOMO Models (Calculate Duration)
Duration = 2.5 * Effort0.38
Duration = 2.5 * Effort0.35
Duration = 2.5 * Effort0.32
COCOMO Model Types
Heuristics (Rules of Thumb)
1/3 – Planning
1/6 – Coding
1/4 – Component test and early system test
1/4 – System test, all components in hand
Some Examples of Heuristics from Estimating Software Costs by Capers Jones (1988)
Each formal design inspection will find and remove 65 percent of the bugs present.
Each formal code inspection will find and remove 60 percent of the bugs present.
Function points raised to the 0.4 power predict the approximate development schedule in calendar months.
Function points divided by 150 predict the approximate number of personnel required for the application.
What Is the Best Way to Estimate IT Projects?
Use more than one technique for estimating
If estimates from different techniques close, average them
Adjust estimate based on experience
Negotiation may lead to unrealistic estimations
Delphi Techniques
involves multiple experts who arrive at a consensus on a particular subject or issue. Although the Delphi technique is generally used for group decision making, it can be a useful tool for estimating when the time and money warrant the extra effort
100 percent rule
the most important criterion in developing and evaluating the WBS. The rule states: ” The next level decomposition of a WBS element ( child level) must represent 100 percent of the work applicable to the next higher ( parent) element.”
WBS dictionary
describes the various work packages. Information included in the WBS dictionary may include a code or account identifier, a description of the work, a list of the project team members assigned to carry out the work, contract information, quality standards, and resources required.
Analogous estimation
refers to developing estimates based upon one’s opinion that there is a significant similarity between the current project and others
software engineering
The discipline that focuses on the processes, tools, and methods for developing a quality approach to developing software
provide the basis for software engineering and refers to a broad range of measurements for objectively evaluating computer software.
Internal logical file ( ILF)
An ILF is a logical file that stores data within the application boundary (an Entity would be considered an ILF)
External interface file ( EIF)
An EIF is similar to an ILF; however, an EIF is a file maintained by another application system.
External input ( EI)
refers to processes or transactional data that originate outside the application and cross the application boundary from outside to inside.
External output ( EO)
a process or transaction that allows data to exit the application boundary.
External inquiry ( EQ)
a process or transaction that includes a combination of inputs and outputs for retrieving data from either the internal files or from files external to the application
allows direct conversion from an application’s source code to an equivalent function point count (accuracy not very high)
These are routine projects where the technology, processes, and people are expected all to work together smoothly.
a challenging project.
Semi- Detached
If organic projects are viewed as easy and embedded as difficult or challenging, then semi- detached fall somewhere in the middle.
parametric model
where it uses dependent variables, such as cost or duration, based upon one or more independent variables that are quantitative indices of performance and/ or physical attributes of the system.
Thousands of delivered source instructions, i. e., LOC
Note: Best Method of Estimation
Unfortunately, no single method or tool is best for accurately estimating IT projects. It may be a good idea to use more than one technique for estimating.
Cost estimating
Based upon the activities, their time estimates, and resource requirements, an estimate can be developed.
Cost budgeting
Once the time and cost of each activity is estimated, an overall cost estimate for the entire project can be made. Once approved, this estimate becomes the project budget.
Cost control
Ensuring that proper processes and procedures are in place to control changes to the project budget.
Gantt Chart
Working with the U. S. Army during World War I, Henry L. Gantt developed a visual representation that compares a project’s planned activities with actual progress over time.
Project network diagrams
include several useful tools for planning, scheduling, and monitoring the project’s progress.
Activity on the node ( AON)
a project network diagramming tool that graphically represents all of the project activities and tasks, as well as their logical sequence and dependencies.
Predecessor activities
are those activities that must be completed before another activity can be started
successor activities
are activities that must follow a particular activity in some type of sequence.
parallel activity
an activity or task that can be worked on at the same time as another activity.
sometimes called float, is the amount of time an activity can be delayed, that is, take longer than expected, before it delays the project.
expedite, or crash
a project manager can do this to the project by adding resources to an activity on the critical path to shorten its duration.
fast tracking (the project)
Doing two, or several, activities that were originally planned to be completed in sequence at the same time can shorten the critical path.
The program evaluation and review technique ( PERT)
(also called PERT/CPM) uses the project network diagramming technique to create a visual repre-sentation of the scheduled activities that expresses both their logical sequence and interrelationships. It also uses a statistical distribution that provides probability for estimating when the project and its associated activities will be completed. This probabilistic estimate is derived by using three estimates for each activity: optimistic, most likely, and pessimistic.
optimistic estimate
the minimum time in which an activity or task can be completed.
pessimistic estimate
a worst- case scenario and is viewed as the maximum time in which an activity can or should be completed.
PERT Equation
PERT Equation
or a+4b+c/6
critical path
the longest path in the project network and is also the shortest time in which the project can be completed.
precedence diagramming method ( PDM)
Finish- to- start ( FS), Start- to- start ( SS), Finish- to- finish ( FF)
Finish- to- start ( FS)
s the most common rela-tionship between activities and implies a logical sequence. Here, activity or task B cannot begin until task A is completed.
Start – to – start (SS)
relationship between tasks or activities occurs when two tasks can or must start at the same time. Although the tasks start at the same time, they do not have to finish together— that is, the tasks can have different durations.
Finish- to- finish ( FF)
Another type of parallel activity is the finish- to- finish relationship. Here, two activities can start at different times, have different durations, but are planned to be competed at the same time.
rolling wave planning
help deal efficiently with project planning; Instead of developing a large, detailed project plan requiring frequent updates, the project manager can prepare an overall summary plan, or master schedule, and then develop detailed schedules for only a few weeks or a few months at a time
starting the next task before the first task is complete
(or negative lead) is the adding of a buffer of time before the next task begins
Steps for Developing the Project Budget
Define what resources will be needed to perform the work
Determine the quantity of resources that are needed
Define the cost of using each resource
Calculate the cost of the task or activity
Ensure that the resources are leveled, that is, resources have not been over allocated assigned to more than one task scheduled at the same time
Direct Costs
The direct cost of labor or other resources
Indirect Costs
The cost for covering such things as rent, utilities, insurance, etc.
Sunk Costs
Costs incurred prior to the project such as a project that has been restarted after a failed attempt
Learning Curve
Often have to “Build one and throw it away” to understand a problem or a new technology
Prorated Costs
The idea that there is a cost associated with using a resource
Contingency funds to be used at the discretion of the project manager (provides a cushion when unexpected situations arise)
Finalizing the Project Schedule and Budget
The project schedule and budget may require several iterations before it is acceptable to the sponsor, the project manager, and the project team
Once the project schedule and project plan are accepted, the project plan becomes the baseline plan.
Once accepted, the project manager and project team have the authority to execute or carry out the plan
Contingency funds
based on risk and provide the project manager with a degree of flexibility.
Resource Allocation
resources cannot be overallocated—that is, most resources cannot be assigned to more than one task at the same time.
baseline plan
transition from the project plan once the project schedule and project plan are accepted;used as a yardstick, or benchmark, to track the project’s actual progress with the original plan.
Critical path method; also called PERT/CPM
Would not outsource
systems and architecture planning
research and development
business process
When asked how the offshore outsourcing relationship is managed,
38% said the relationship is managed by a dedicated manager within the IT department
35% said it is managed by a project sponsor for the IT department.
More than half (54%)said their organization has a steering committee of senior IT and business executives that governs offshore outsourcing decisions.
Countries to which outsourcing is common
Other attractive countries
Mexico and Costa Rica
Czech republic ( infrastructure)
Poland ( supportive environment)
Egypt ( overall)
Hidden cost of outsourcing
Cost of selecting a vendor: Expect to spend an additional 1 percent to 10 percent on vendor selection and initial travel costs.
Transition cost: Expect to spend an additional 2 percent to 3 percent on transition costs.
Cost of layoff: Bottom line: Expect to pay an extra 3 percent to 5 percent on layoffs and related costs.
Cultural cost: Bottom line: Expect to spend an extra 3 percent to 27 percent on productivity lags.
Cost of ramping up: Expect to spend an extra 1 percent to 10 percent on improving software development processes.
Cost of managing an offshore contract: Bottom line: Expect to pay an additional 6 percent to 10 percent on managing your offshore contract.
Benefits of outsourcing
Lower costs ( due to economies of scale or lower labor costs)
Variable capacity
The ability to focus on core competencies
Lack of in house resources
Getting work done more efficiently or effectively
Tighter control on budget through predictable costs
Lower ongoing investment in internal infrastructure
Access to innovation and thought leadership
Challenges to outsourcing
Failure rate is 40-70%
Conflict of interest
Client wants cheaper better service
Vendor wants profit
Lack of good business case ( rather than just cost cutting)
Transactional outsourcing-well defined rules- 90% success
Co-sourcing alliances- client and vendor jointly manage projects ( application development)-63% success
Strategic partnerships- single outsource manages a bundle of services-50% success
Other issues:
managing communication
cultural differences
lack of internal processes for specifying work
internal customer management skills.
Plan Purchases and acquisition
making the decision on what and when to buy
Plan contracting
Documenting product, services needed and potential sellers, vendors, suppliers etc
Request Seller responses
Obtain bids, quotes, proposals, literature
Procurement Management Processes
Plan Purchases and acquisition
Plan contracting
Request Seller responses
Select Sellers
Contract administration
Contract closure
3 categories for procurement type contracts
Fixed Price or lump sum contracts
Cost-reimbursable contracts
Time and Materials Contracts
Types of Outsourcing Relationships
Full In-sourcing Selective Full
Outsourcing Out sourcing
Seven deadly mistakes of Outsourcing
Outsourcing activities that should not be outsourced
Selecting the wrong vendor
Writing a poor contract
Overlooking personnel issues
Losing control over the outsourced activity
Overlooking the hidden cost of outsourcing
Failing to plan an exit strategy.
Cost-reimbursable contracts
Cost plus fee (CPF) or Cost Plus Percentage (CPPC)
Cost Plus Fixed Fee
Cost Plus Incentive Fee
Select Sellers
Negotiating, selecting, and contracting with a seller for a particular product or service
Contract administration
Managing the relationship and contract between the buyer and seller. This includes reviewing and documenting the seller’s performance, contract changes, and taking corrective action when necessary
Contract closure
Completing and settling each contract after any open items or settlements are resolved
a document signed by the buyer and seller that defines the terms and conditions of the buyer- seller relationship.
Fixed- price or lump- sum contracts
A total or fixed price is negotiated or set as the final price for a specific product or service.
Cost- reimbursable contracts
For these types of contracts a payment or reimbursement is made to the seller to cover the seller’s actual costs.
Time and materials ( T& M) contracts
a hybrid of cost-reimbursable and fixed- price contracts. Under a T& M contract, the buyer pays the seller for both the time and materials required to complete the work.
Cost- plus- fee ( CPF) or cost- plus- percentage of cost ( CPPC)
The seller is paid for the costs incurred in performing the work as well as a fee based on an agreed- upon percentage of the costs.
Cost- plus- fixed- fee ( CPFF)
In this case, the seller is reimbursed for the total direct and indirect costs of performing the work, but receives a fixed amount.
Cost- plus- incentive- fee ( CPIF)
Under this type of contract, the seller is reimbursed for the costs incurred in doing the work and receives a predetermined fee plus an incentive bonus for meeting certain objectives.
full- insourcing approach
all products and services would be retained internally.
full- outsourcing approach
where an organization or project acquires all products or services from external sources
selective outsourcing
probably the best approach for organizations and projects; More specifically, it provides greater flexibility to choose which project processes deliverables should be outsourced and which should be kept internal.
Outsourcing Model
Outsourcing Model