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READ INSTRUCTIONS CAREFULLY! ALL INSTRUCTIONS WILL BE IN ITPM CA3 FILE THERE WILL BE 20 PRESENTATIONS FOR ADDITIONAL INFO NEED TO BE DONE IN 24 HOURS IT Project Management Diploma in Information Technology Topic 1: Introduction to Project Management Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Learning objectives 1. Understand the need for good project management. 2. Explain what is a project. 3. Provide examples of IT projects. 4. Describe project management. 5. Describe the triple constraint of project management. Learning objectives 6. Discuss key elements of project management framework. 7. Discuss the relationship between project, program and portfolio management. 8. Understand the role of project manager. 9. Explore project management software tools. 1.1 Good project management • The way we work is changing, this is noticed in many industries. • According to the consultancy firm Bain & Company, by 2027 most work will be project-based. • There is a growing understanding of the impact that good project management can have on a business. • Companies are starting to realise that good project management is important for stronger results and happier employees. https://www.bain.com/insights/firm-of-the-future 1.1 Good project management • When PM is done right, it helps every part of the business run more smoothly. • It allows the team to focus on the work that matters, free from the distractions caused by tasks going off track or budgets spinning out of control. • It empowers the team to deliver results that impact the business’s bottom line. • It enables the employees to see how their work contributes to the company’s strategic goals. 1.2 What is a project? A project is a complex, non-routine, one- time effort limited by time, budget, resources, and performance specifications designed to meet customer needs. 1.2.1 Characteristics of a project  It has an established objective.  It is temporary with a defined lifespan (i.e. beginning and an end date).  It involves several departments and professionals.  It is typically unique or has never been done before.  It has specific time, cost and performance requirements. 1.3 Examples of IT projects • Software development & implementation (eg: programming a simple mobile app or a large-scale software system, web development) • Hardware installations (e.g., servers, desktop computers, or telephony systems) • Network system upgrades • Data management (cyber security) 1.4 What is project management? Project Management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. 1.5 Triple constraints 3 main areas need to be managed in a project: Cost: How much money is to be spent? Time: How long the project will run before completion? Scope: What deliverables are to be achieved? 1.5.1 Scope A projects scope is the full outline of the expected deliverables. It is important to clearly define the scope of a project before starting it to ensure that all parties have the same expectations for the final results. 1.5.2 Time All timelines should realistically fit within the confines set out by the scope and budget. Within a given project, multiple timelines may be included. Individual timelines on the various elements must be completed as part of the project. The timelines can be adjusted as part of a triple constraint adjustment. 1.5.3 Cost The resources involved in carrying out a project make up the third principal element of the triple constraint. This accounts for not only the costs associated with purchasing any physical resources but also the daily operating costs of the staff working on the project. Can all three be squeezed? 1.6 Project management framework  Project management framework (PM framework) is a subset of tasks, processes, tools and templates used in combination by the management team to get insight into the major structural elements of the project in order to initiate, plan, execute, control, monitor, and terminate the project activities throughout the management life-cycle. PM framework allows using various methodologies and approaches to plan and schedule the major phases of the life-cycle. 1.6 Project management framework  Regardless of the type, size and nature of project, a typical PM framework includes micro & macro phases, templates and checklists, processes and activities, roles and responsibilities, training material and work guidelines – all this information is organized and systematised into a structure allowing managers and planners to control progress of their projects throughout the life-cycle. 1.6 Project management framework With reference to the PM framework definition, there are several basic elements: 1. Initiation. 2. Planning. 3. Execution. 4. Monitoring & Controlling. 5. Closure. 1.6 Project management framework 1.6 Project management framework The purpose of PM framework is to: • Simplify & assist with sharing information on project management best practices, approaches, tools, templates and samples. • Create and share an understanding of the best practices for planning & management for all types and kinds of project, including IT projects etc. • Improve the level of competence • Contribute to setting common standards and requirements for various projects and establishing common terminology. 1.7 Project, program & portfolio management • A project may be managed in three separate scenarios: as a stand-alone project (outside of a portfolio or program), within a program, or within a portfolio. • Multiple projects may be needed to accomplish a set of goals and objectives for an organisation. In those situations, projects may be grouped together into a program. 1.7 Project, program & portfolio management • A program is defined as a group of related projects, subsidiary programs, and program activities managed in a coordinated manner to obtain benefits not available from managing them individually. • Example: Managing the development of all e- commerce projects together can be a program. • Program = Sub-programs + Projects and sub-projects. 1.7 Project, program & portfolio management • A portfolio is defined as projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives. • Example: Managing all types of website development related projects and programs can be a portfolio while managing all mobile Apps related projects and programs can be another portfolio. • Portfolio = Sub-portfolios + Programs and sub-programs + Projects and sub-projects. 1.7 Project, program & portfolio management 1.8 Roles of a project manager • Plays a key role in helping projects and organisations succeed. • Performs various job duties, possesses many skills, and continues to develop skills in project management, general management, and their application area, such as IT. • Possesses soft skills, especially leadership which are particularly important. 1.8 Roles of a project manager 1.8 Roles of a project manager Questions? Slide 1 Slide 2 Slide 3 Slide 4 Slide 5 Slide 6 Slide 7 Slide 8 1.4 What is project management? Slide 10 Slide 11 Slide 12 Slide 13 Slide 14 Slide 15 Slide 16 Slide 17 Slide 18 Slide 19 Slide 20 Slide 21 Slide 22 Slide 23 Slide 24 Slide 25 Slide 26 Slide 27 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 2: IT projects and the organisation Learning objectives 1. Describe the systems view of project management. 2. Understand organisations, organisation structures and culture. 3. Explain role of stakeholder management and top management for project’s success. 4. Understand the concept of a project phase and project. Lifecycle. 5. Describe trends affecting IT project management including globalisation, outsourcing and virtual teams. 2.1 System view of a project  Take a step back to look at the entire scope of the project.  All the operations involved in the project should be understood.  Project managers must operate in a broad organisational context.  Project managers need to take a holistic view of project and understand how it relates to the larger organisation. An illustration Organisation Project 2.1.1 What is a system approach?  System management addresses the business, technological, and organisational issues associated with creating, maintaining, and making changes to a system.  A system approach takes into account the total environment the project exists and impacts. An illustration Business Cost of system implementation? Cost to administer the system? Would it increase sale & productivity? Technological Which order tracking system? The network requirement? The DB management system? Organisational Time saved after Implementation? Will the management support? Who will be the users? Successful project An example 2.2 Organisational structures 2.2.1 Functional organisation structure 2.2.1 Functional organisation structure  It is a traditional type of organisation chart used across many businesses and organisations to visualize company structure.  The functional organisation chart shows leadership roles such as managers and executive positions towards the top connected to their direct reports and associates towards the bottom. 2.2.2 Project organisation structure 2.2.2 Project organisation structure  In a project-oriented organisation the companies do most of their work on a project basis and are therefore structured around projects.  Project managers are usually full time in the role, and for small projects they might manage several projects at once. 2.2.3 Matrix organisation structure 2.2.3 Matrix organisation structure A matrix organisational structure is the arrangement of the personnel, i.e., the matrix leader, managers and employees, across the grid, such that a hybrid hierarchy is maintained. There is a vertical and horizontal flow of direction and information, such that each subordinate has dual bosses. Out of these, one is the functional manager; and the other is the project manager. A typical organisation project management relationships 2.3 Organisation cultures • Organisation culture is shaped by people. • Organisational culture is defined as the underlying beliefs, assumptions, values and ways of interacting that contribute to the unique social and psychological environment of an organization. • Beliefs and assumptions are developed from what we perceive from our surroundings and the experiences we have from our actions. And we instill these sets of ideologies in our work environment. 2.3 Organisation cultures 2.3.1 Clan culture It is a family-like type of corporate environment where everyone’s views and ideas are valued. It has a friendly, collaborative culture and are often compared to a large family. This type of culture emphasizes on the consensus of the employees while taking any business decision. Helping each other during working hour, eating lunch together, playing games in the evening, and celebrating each other’s happy memories are the attributes of the clan culture. 2.3.1 Clan culture Advantages: • Productivity and company growth is consistent in this type of culture. • There are clear communication and transparency. Every member is comfortable to voice their opinion and ideas. • Employees are appreciated for their good work and also criticised without hurting their sentiments. 2.3.2 Adhocracy culture • Adhocracy culture is a risk-taking culture. Here organizational leaders are innovative and creative in their approach. • They are inspirational innovators who accept challenges, take risks and ready to break the organisational assumptions. • Employees get their chances to spin their balls multiple times when they miss it. 2.3.2 Adhocracy culture Advantages: • A shared commitment to innovation at every level of the organization. • Competitive advantage in the marketplace. • An inclusive environment that welcomes all ideas. 2.3.3 Market culture  It is results-driven, market-orientated and extremely competitive. This culture thrives for results and works relentlessly to penetrate into the market and get maximum shares.  Most common in larger corporations, where leaders are relentless, strong and have very high expectations of their teams.  Employees are given difficult goals and they are pushed to achieve those at any cost.  Performance is closely monitored, for which it’s not unusual for employees to be rewarded and punished. Getting the job done is the number one priority in this type of company culture. 2.3.3 Market culture Advantages:  Goals are met, or if they aren’t, new ways are explored to reach them.  Employees are consistently pushed to go the extra mile and are driven and inspired by their leaders.  They are always ready to react to any changes in the market to ensure they maintain the market share and stay ahead of the game. 2.3.4 Hierarchy culture  It is a formalised and structured work environment. Leaders are proud of their efficiency-based coordination and organisation.  Keeping the organisation functioning smoothly is most crucial here. Formal rules and policies keep the organisation together.  The long-term goals are stability and results and are directly paired with an efficient and smooth execution of tasks. 2.3.4 Hierarchy culture Advantages:  Employees who work for hierarchical companies feel more secure; get paid on time, and are safe to stay in their role in the long run.  Benefits of promotion lead to exclusive advanced status and reward. This can prove a great motivator for employees.  Employees gain status through consistent hard work and effort within a set role. By focusing on their work alone, they are more likely to achieve expert status in that one field. 2.4 Project phases and life cycle • Projects operate as part of a system and involve uncertainty, it is a good practice to divide projects into several phases. • A project life cycle is a collection of project phases. Some organisations specify a set of life cycles for use on all of their projects. • Project life cycles define what work will be performed in each phase, what deliverables will be produced and when, who is involved in each phase, and how management will control and approve work produced in each phase. 2.4 Project life cycle 2.4.1 Predictive project life cycle  The scope, time and cost constraints are determined ahead of time at high level and in detail, and the project is split up into phases which can be either sequential or overlapping.  Then the planning is done at a detailed level from the beginning of the project, also known as rolling wave planning (or progressive elaboration). 2.4.2 Adaptive project life cycle • The deliverables are developed over multiple iterations where a detailed scope is defined and approved for each iteration when it begins at the beginning of each iteration • It is also known as change-driven or Agile. • The project is split up into phases or iterations which can be sequential or overlapping. However, because adaptive life cycles are used in applications areas such as IT where there is a rapid change, sometimes the processes within the iterations can even be going on in parallel. Source: 2.5 Recent Trends Affecting IT PM 1. Globalisation 2. Outsourcing 3. Virtual teams 2.5.1 Globalisation • Issues  Communications  Trust  Common work practices  Tools • Suggestions  Employ greater project discipline  Think global but act local  Keep project momentum going  Use newer tools and technology 2.5.2 Outsourcing • Organisations stay competitive by using outsourcing to their advantage, such as finding ways to reduce costs. • Their challenge is to make strategic IT investments with outsourcing by improving their enterprise architecture to ensure that IT infrastructure and business processes are integrated and standardised. 2.5.3 Virtual teams • Advantages:  Increasing competitiveness and responsiveness  Lowering costs  Increased expertise and flexibility  Increased work/life balance • Disadvantages:  Isolation & Interpersonal Relationships  Communication Problems  Dependence on Technology Questions? Slide 1 Slide 2 Slide 3 Slide 4 Slide 5 Slide 6 Slide 7 Slide 8 Slide 9 Slide 10 Slide 11 Slide 12 2.2.3 Matrix organisation structure Slide 14 Slide 15 Slide 16 Slide 17 Slide 18 Slide 19 Slide 20 Slide 21 Slide 22 Slide 23 Slide 24 Slide 25 Slide 26 Slide 27 Slide 28 2.4 Project life cycle Slide 30 Slide 31 Slide 32 2.5 Recent Trends Affecting IT PM Slide 34 Slide 35 Slide 36 Slide 37 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 4: Project Integration Management – Part 1 1 Lesson objectives Describe the framework for project integration management. Explain strategic planning process. Apply different project selection methods. Explain the important of creating a project charter. Describe project management plan development. Understand project management plan content. Review approaches for project management plan. 2 4.1 Project Integration Framework Initiating Planning Executing Monitoring & Controlling Closing Scope Scope Schedule Schedule Cost Cost Quality Resource Risk Risk Communication Procurement Stakeholder Integration 3 4.1.1 Project integration management It involves coordinating all the other project management knowledge areas throughout a project’s life cycle. This integration ensures that all the elements of a project come together at the right times to complete a project successfully. 4 Many new project managers have trouble looking at the “big picture” (helicopter view) and want to focus on too many details. Project integration management is not the same thing as software integration 4.1.1 Project integration management 5 4.1.2 Who manages the integration? Role Responsibilities Project Manager Integrator for the project that executes processes Team members Concentrate on completing tasks, activities, & work packages Project Sponsor Protect project from changes and losing resources 6 4.2 Strategic Planning Process Strategic planning lays the groundwork for successful project implementation In the strategic view, plans are organised in a “hierarchy” as follow: Game Plan Project Plan Detailed Plans 7 4.2 Strategic Planning Process The strategic planning activities are concentrated at the “Game Plan” level. The “Game Plan” incorporates overall project management philosophy and covers how to deal with the major management issues identified in the PMI Project Management Body of Knowledge (PMBOK). These include scope, time, cost, quality, human resources, communications, procurement and risk. 8 4.3 Project Selection Method There can be several possible projects to initiate in an organisation. But are they the right ones? Organisations need to evaluate different possible projects before project initiation. Project managers need to know why their project was selected and how it fits into the organisation’s strategic plan. 9 4.3 Project Selection Method Two (2) common approaches: Benefit Measurement Methods (Comparative Approach): It evaluates several projects based on their benefits, profits, revenue etc. Constrained Optimisation Methods (Mathematical Approach): It takes many inputs about a project and they are modeled mathematically usually by the help of software programs. And these programs outline possible outputs of the project mathematically. 10 4.3.1 Benefit Measurement Methods 11 4.3.1 Benefit Measurement Methods 1. Benefit/Cost Ratio It gives us whether the benefits of the project are higher than the costs. Projects that have a higher Benefit-Cost Ratio are generally chosen over others. 2. Economic Model It is the performance metric that calculates the worth-creation of the organisation while defining the return on capital. It is also defined as the net profit after the deduction of taxes and capital expenditure. 12 4.3.1 Benefit Measurement Methods 1. Benefit/Cost Ratio (BCR) Example Company XYZ decides to expand and acquire new equipment. They need to run a benefit-cost ratio to determine whether it is wise to expand or not. 1) Equipment cost $80,000 2) Recruitment cost $4,000 3) Training cost $4,000 4) Workspace cost $3,000 5) Equipment license $4,000 Total: $95,000 Expected additional revenue $140,000 BCR= 140,000/95,000 =1.47 13 4.3.1 Benefit Measurement Methods 3. Scoring Model It is an objective technique: the project selection committee lists relevant criteria, weighs them according to their importance and their priorities, then adds the weighted values. Once the scoring of these projects is completed, the project with the highest score is chosen. (See examples on the next 2 slides) 14 Scoring Model 15 Scoring Model Which project to select? 16 4.3.1 Benefit Measurement Methods 4. Payback Period It is the duration that the project will recover the money invested with its revenues. Project A: $1 million project investment with expected cost saving of $250,000 per year. Payback period : $1 million/$250,000 = 4 years Project B: Costs $200,000 to start, annual saving of $100,000 for the next 10 years. Payback period : $200,000 / $100,000 = 2 years. 17 4.3.1 Benefit Measurement Methods 5. Net Present Value (NPV) This gives us the today’s value of the sum of all transactions (inbound and outbound) that will happen in future. When picking a project, one with a higher NPV is preferred. The advantage of considering the NPV over the Payback Period is that it takes into consideration the future value of money.  6. Discounted Cash Flow It is well-known that the future value of money will not be the same as it is today. For example, $20,000 won’t have the same worth ten years from now. Therefore, during calculations of cost investment and ROI, be sure to consider the concept of discounted cash flow.  18 4.3.1 Benefit Measurement Methods 7. Internal Rate Of Return (IRR) The IRR indicates how many percent of the investment will turn back as revenue in future. It is used to select the project with the best profitability; when picking a project, the one with the highest IRR is chosen. 8. Opportunity Cost It is the cost that is given up when selecting another project. During project selection, the project that has the lower opportunity cost is chosen. 19 4.3.1 Benefit Measurement Methods 7. Internal Rate Of Return (IRR) The cash flow (CF) patterns for a project are as follows: Initial outlay = $5,000 Year one = $1,700 Year two = $1,900 Year three = $1,600 Year four = $1,500 Year five = $700 20 4.3.1 Benefit Measurement Methods 7. Internal Rate Of Return (IRR) The company must calculate the IRR for each project. Initial outlay (period = 0) will be negative. Solving for IRR is an iterative process using the following equation: $0 = Σ CFt ÷ (1 + IRR)t where: CF = Net Cash flow IRR = internal rate of return t = period (from 0 to last period) -or- $0 = (initial outlay * -1) + CF1 ÷ (1 + IRR)1 + CF2 ÷ (1 + IRR)2 + ... + CFX ÷ (1 + IRR)X 21 4.3.1 Benefit Measurement Methods 7. Internal Rate Of Return (IRR) The company can calculate IRR for the project as: $0 = (-$5,000) + $1,700 ÷ (1 + IRR)1 + $1,900 ÷ (1 + IRR)2 + $1,600 ÷ (1 + IRR)3 + $1,500 ÷ (1 + IRR)4 + $700 ÷ (1 + IRR)5 IRR Project A = 16.61 \% 22 Example a b = b/a 23 Year 1: DF = 1/(1+0.08) = 0.9259 = 0.93 Year 2: DF = 1/(1+0.08)2 = 0.8573 = 0.86 Year 3: DF = 1/(1+0.08)3 = 0.7938 = 0.79 Example 24 4.3.2 Constrained Optimisation Methods They are also known as the Mathematical Model of project selection, usually used for larger projects that require complex and comprehensive mathematical calculations. Note: We will not dwell into these methods due to their complexities.  25 4.4 Project charter The project charter outlines the purpose and requirements of the project. It includes details, like business needs, key participants and stakeholders, scope, objectives, and overall goals. The project charter provides a foundation for defining project decisions and ensuring they are in line with company goals. 26 4.4 Project charter Business Needs Market Demand Organisational Need Customer Request Technological Advance Legal Requirement Ecological Impacts Social Need PMBoK® Guide, 5th Edition, p.69 27 4.4 Project charter The project charter is the 1st formal project document and generally signed & approved by the project sponsor. Provides a condensed, summary-level overview of the project. Allows stakeholders to document the agreed upon scope and objectives, approach, and major deliverables of the project. 28 The project cannot be started without a charter because the charter: Formally recognises the existence of the project. Gives the project manager the authority to spend money and commit resources. Provides the high-level requirements and expectations. Links the project to the organisation’s ongoing work. 4.4 Project charter 29 A project charter is like a birth certificate! It is 1-2 pages in length, it can be longer depending on the size, type, and complexity of the project. 4.4 Project charter 30 4.4.1 Developing a project charter Develop Project Charter Business Case Project Charter Assumption Log Benefits Management Plan The process of developing a Project Charter document formally authorises a project documenting initial requirements that satisfy the stakeholders’ needs and expectation 31 4.4.1 Developing a project charter Typical items included in a project charter:  Title  Brief Description Background  Goals/Deliverables Scope  Stakeholders Impact on Other Business Systems and Units Roles and Responsibilities Milestones  Budget Constraints, Assumptions, Dependencies, and Risks Success Measurements/ROI Project Approval 32 33 4.4.2 Assumption Log Assumptions and constraints affecting the project are identified and recorded in the Assumption Log throughout the project life cycle. New assumptions and constraints that are identified later on in the project will also be recorded in the Assumption Log and not just at project initiation. 34 4.5 Develop Project Management Plan Business Case Needs Assessment Benefits Management Plan Project Charter Project Management Plan The business case is a document that is used to state the benefits of the project. The business case states the objectives and reasons to initiate the project. A needs assessment often precedes the business case. The needs assessment involves understanding the business goals and objectives, issues and opportunities and recommending proposals to address them. The results of the needs assessment may be summarized in the business case document. The project benefits management plan is the document that describes how and when the benefits of the project will be delivered, and describes the mechanisms that should be in place to measure those benefits. A project benefit is defined as an outcome of actions, behaviors, products, services, or results that provide value to the sponsoring organization as well as to the project’s intended beneficiaries. Development of the benefits management plan begins early in the project life cycle with the definition of the target benefits to be realized. Developing the benefits management plan makes use of the data and information documented in the business case and needs assessment. For example, the cost-benefit analyses recorded in the documents illustrate the estimate of costs compared to the value of the benefits realized by the project. The business case and the benefits management plan are used to develop the project charter which in turn will be used to produce the project management plan. The project management plan is defined as the document that describes how the project will be executed, monitored, and controlled. 35 4.5 Develop Project Management Plan Source: PMBOK, 6th Edition, pg 82. 36 4.5 Develop Project Management Plan It is the process of defining, preparing, and coordinating all plan components and consolidating them into an integrated project management plan. It defines how the project is executed, monitored and controlled, and closed. The key benefit of this process is the production of a comprehensive document that defines the basis of all project work and how the work will be performed. 37 4.5 Develop Project Management Plan It’s content* varies depending on the application area and complexity of the project. (*either summary level or detailed). It should be robust enough to respond to an everchanging project environment. This agility may result in more accurate information as the project progresses. The PM plan should be baselined (necessary to define at least the project references for scope, time, and cost), so that the project execution can be measured and compared to those references and performance can be managed. 38 4.6 Project Management Plan Content Scope management plan: How the scope will be defined, developed, monitored, controlled, and validated. Requirements management plan: How the requirements will be analysed, documented, and managed. Schedule management plan: Establishes the criteria and the activities for developing, monitoring, and controlling the schedule. Cost management plan: How the costs will be planned, structured, and controlled. Quality management plan: How an organisation’s quality policies, methodologies, and standards will be implemented in the project. 39 4.6 Project Management Plan Content Resource management plan: Provides guidance on how project resources should be categorised, allocated, managed, and released. Communications management plan: How, when, and by whom information about the project will be administered and disseminated. Risk management plan: How the risk management activities will be structured and performed. Procurement management plan: How the project team will acquire goods and services from outside of the performing organisation. Stakeholder engagement plan: How stakeholders will be engaged in project decisions and execution, according to their needs, interests, and impact. 40 4.7 Approaches for Project Management Plan Meetings are used to discuss the project approach, determine how work will be executed to accomplish the project objectives, and establish the way the project will be monitored and controlled. The project kick-off meeting is usually associated with the end of planning and the start of executing. Its purpose is to communicate the objectives of the project, gain the commitment of the team for the project, and explain the roles and responsibilities of each stakeholder. 41 4.7 Approaches for Project Management Plan Data-gathering techniques: Brainstorming: It is frequently used when developing the project management plan to gather ideas and solutions about the project approach. Attendees include the project team members although other subject matter experts or stakeholders may also participate. Checklists: Many organisations have standardised checklists available based in their own experience or use checklists from the industry. A checklist may guide the project manager to develop the plan or may help to verify that all the required information is included in the project management plan. 42 4.7 Approaches for Project Management Plan Data-gathering techniques: Focus groups: They bring together stakeholders to discuss the project management approach and the integration of the different components of the project management plan. Interviews: They are used to obtain specific information from stakeholders to develop the project management plan or any component plan or project document. 43 FactorWeightProject AProject BProject CProject D Expected revenue40\%60759065 Technical difficulties25\%80707080 Manpower requirements20\%75757065 Potential risks15\%50606070 Scores (1 - 100) Weighted Score Method IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 5: Project Integration Management - Part 2 1 Lesson objectives Explain project execution. Discuss the relationship between project execution and project planning. Discuss tools and techniques in managing project execution. Describe the process of monitoring and controlling a project. Understand the integrated change control process. 2 Lesson objectives Understand planning, managing changes, developing and using a change control system. Explain the importance of developing and following good procedures for closing projects. Describe how software can assist in project integration management. 3 5.1 Project Execution It involves taking the necessary actions to complete the activities in the project plan. The products of the project are created during project execution, and it usually takes the most resources to accomplish this process. Executing processes include coordinating people and other resources to carry out the various plans and create the products, services, or results of the project or phase. 4 Examples of executing processes include: Acquiring project team and resources to carry out various plans and tasks Conduct procurement Manage stakeholder expectations Produce product, services, or results of the project or phase Perform quality assurance (QA) 5.1 Project Execution 5 Executing the project involves taking the necessary actions to complete the activities in the project plan. The products of the project are created during project execution, and it usually takes the most resources to accomplish this process. Executing processes include coordinating people and other resources to carry out the various plans and create the products, services, or results of the project or phase. 5.1 Project Execution 6 5.2 Relationship between project execution & planning 7 5.3 Tools & Techniques in Managing Project Execution There are both manual & automated tools in project management. Commonly used techniques are: PERT – Project Evaluation & Review Technique CPM – Critical Path Method Gantt Chart 8 5.3.1 PERT PERT is a statistical tool used in PM, which was designed to represent & analyse the tasks involved in the completion of a project. It is a probabilistic model that is time driven. 9 5.3.1 PERT It uses 3 types of time estimates: Optimistic time – Best possible time for completion of the activity. Most likely time – Highest probabilistic time for completion of the activity. Pessimistic time – Longest time for completion of the activity. 10 5.3.1 PERT The weighted average is calculated by the following formula: Expected Time = [Optimistic + (4 x Most Likely) + Pessimistic] / 6 11 5.3.2 CPM Critical path is the path with the longest duration in a project. It determines the total duration required for completion of the project. CPM is a deterministic model that is both time & cost-driven. The amount of time that activity can be delayed without delaying the project is called as slack time. 12 5.3.2 CPM The critical path of the project determines the following four parameters for each activity, which are calculated using the expected time for relevant activities: ES – Earliest Start EF – Earliest Finish LS – Latest Start LF – Latest Finish 13 5.3.2 CPM Forward Pass: The earliest start and finish time of each activity is determined with reference to predecessor activities in the network. Backward pass: The latest start and finish time of each activity is determined, which means the time where an activity can start and finish without any delay in the project. 14 5.3.3 PERT & CPM PERT & CPM help in the following: Identifying the critical activities (no slack) Identifying the non-critical activities (with slacks) Establishing project completion timelines. Deriving activities/tasks interdependencies Identifying resource requirements & limitations. 15 5.3.4 Gantt Chart Used to show calendar time task assignments in days, weeks or months. Uses graphic representations to show start, elapsed, and completion times of each task within a project. Ideal for tracking or monitoring progress. 16 5.3.4 Gantt Chart The number of days required to complete a task that reaches a milestone can be compared with the planned or estimated number. The actual workdays, from actual start to actual finish, are plotted below the scheduled days. This information helps target potential timeline slippage or failure points. 17 5.3.4 Gantt Chart 18 5.4 Monitoring and Controlling Measure progress against all plans Take corrective actions when there is deviation Ensure that progress meet project objectives Ensure that the project meets stakeholders’ needs and quality standards Reporting performance to stakeholders Stakeholder can identify any necessary changes to keep project on track 19 5.4 Monitoring and Controlling 20 5.4 Monitoring and Controlling 21 5.5 Integrated Change Control Process It is reviewing all change requests; approving changes and managing changes to deliverables, project documents, and the project management plan; and communicating the decisions. It reviews all requests for changes to project documents, deliverables, or the project management plan and determines the resolution of the change requests. 22 5.5 Integrated Change Control Process The key benefit of this process is that it allows for documented changes within the project to be considered in an integrated manner while addressing overall project risk, which often arises from changes made without consideration of the overall project objectives or plans. This process is performed throughout the project. 23 5.6 Change Control System (CCS) CCS is any implemented system that ensures the making of changes is not done arbitrarily, but rather is carefully considered and ultimately signed off by a responsible party. It encompasses the specific elements of decision making to approve, reject, or postpone any changes.  Besides serving as established policy for the routine process of making changes, CCS should also provide for emergency changes which may arise. 24 5.6 Change Control System (CCS) Technically there are FOUR (4) change control systems: Scope Change Control System: This is the most common, as most project changes affect the project scope first and foremost. Cost Change Control System: When a scope change request is entertained then a corresponding concern is the cost of the scope change. It can be affected without changing the project scope when we consider how the cost of materials may change. 25 5.6 Change Control System (CCS) Schedule Change Control System: Scope changes can affect the project schedule as more deliverables may equate to more time needed to create them. Schedule changes can happen without affecting the project scope. Consider a delay by a supplier to ship the materials needed in a project. Contract Change Control System: Contracts typically have provisions for allowing changes or additional items to be entered into the contracted work, but not always. Changes to the project scope may directly affect the contracted work so the contract change control system is enacted. 26 5.7 Closing Process It involves gaining stakeholder and customer acceptance of the final products and services and then bringing the project or project phase to an orderly end. It includes verifying that all of the deliverables are complete, and it often includes final project report and presentation. 27 5.7 Closing Process Even though many IT projects are canceled before completion, it is still important to formally close any project and reflect on what can be learned to improve future projects. It is also important to plan for and execute a smooth transition of the project into the normal operations of the company. Most projects produce results that are integrated into the existing organisational structure 28 5.7 Closing Process End the project efficiently Archiving project files Closing out contracts Document lessons learned Receiving formal acceptance of the delivered work from customers 29 5.8 Software in project integration management. According to a survey, 71\% of organisations are using project management software. A software serves as a platform that can provide instant visibility of what’s going on in the project, so the project team can pinpoint where integrations are needed and oversee them. The software provides all the project information in one place. 30 5.8 Software in project integration management. It’s easy to see what’s been done, what’s being worked on, and what’s fallen behind — super useful if we want to see whether any tasks need some kind of integration to be completed. It allows notes, comments, and information to be added to specific tasks, so that everyone knows what needs to happen. 31 5.8 Software in project integration management. Most software have interactive Gantt chart built-in to align all team members. Outline all the project tasks and place them in phases. The tasks can be assigned to team members as needed via email. It helps the team to manage their work in an efficient and transparent manner. 32 Questions? 33 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 6: Project Scope Management – Part 1 1 Learning Objectives Understand the importance of good project scope management. Discuss methods for collecting and documenting requirements in order to meet stakeholder needs and expectations. Explain the scope definition process and describe the contents of a project scope statement. Discuss contents of a project scope statement. 2 6.1 Project Scope Management Project scope refers to all the work involved in creating the products of the project and the processes used to create them. Deliverables can be product-related, such as a piece of hardware or software, or process-related, such as a planning document or meeting minutes. 3 6.1 Project Scope Management Project stakeholders must agree on what the products of the project are and, to some extent, how they should produce them to define all of the deliverables. 4 6.1 Project Scope Management Project scope management includes the processes involved in defining and controlling what work is or is not included in a project. It ensures that the project team and stakeholders have the same understanding of what products the project will produce and what processes the project team will use to produce them. 5 6.1.1 Why Do We Manage Scope? Its part of the Triple constraints Scope impact on the other two constraints TIME COST SCOPE Quality 6 6.1.2 Gold Plating Saying “No” to additional work not in the charter Preventing extra work/Gold plating* Gold plating: It means delivering more than customer’s requirement. It may result in increased cost and less chances of project success, hence it is considered as a bad practice. 7 6.1.3 Product vs Project Scope 8 6.2 Project Scope Management – 5 Main Processes Collecting requirements Defining scope Creating WBS Verifying Scope Controlling Scope 9 1 2 3 4 5 6.2 Project Scope Management – 5 Main Processes 10 6.2.1 Collect Requirements Interviewing stake-holders one-on-one is often very effective, although it can be very expensive and time-consuming. Holding focus groups, facilitated workshops, and using group creativity and decision-making techniques to collect requirements are normally faster and less expensive than one-on-one interviews. Questionnaires and surveys can be very efficient ways to collect requirements as long as key stakeholders provide honest and thorough information. 11 Observation can also be a good technique for collecting requirements, especially for projects that involve improving work processes and procedures. Prototyping is a commonly used technique for collecting requirements for software development projects Note: The project’s size, complexity, importance, and other factors will affect how much effort is spent on collecting requirements. 6.2.1 Collect Requirements 12 How do you document requirements? Several ways… Review the project charter since it includes high-level requirements for the project They should also review the stakeholder register to ensure that all key stakeholders have a say in determining requirements. 13 6.2.2 Define Scope Good scope definition is very important to project success because it helps improve the accuracy of time, cost, and resource estimates, it defines a baseline for performance measurement and project control, and it aides in communicating clear work responsibilities. 14 How do we achieve accuracy in scope definition? The main tools and techniques used in defining scope include: Expert judgment, Product analysis, Alternatives identification, Facilitated workshops. 6.2.2 Define Scope 15 What are the inputs and outputs of scope definition? Key inputs for preparing the project scope statement include the project charter, requirements documentation, and organisational process assets such as policies and procedures. 6.2.2 Define Scope 16 Project Charter Template 17 Project Charter Example 18 Project Charter Example 19 What are the inputs and outputs of scope definition? The main outputs of scope definition are the project scope statement and project document updates. 6.2.2 Define Scope 20 Tips on writing the best Project Scope Statement Tip #1: Be very specific. The more details the better understanding. Can avoid too many questions if the statement is clear.  6.3 Project Scope Statement 21 Tip #2: The document should be a good length, not too long but not too short. Include only the relevant information that needs to be conveyed about the project. 6.3 Project Scope Statement 22 Tip #3: Identify all the risks or uncertainties that help to prepare for any situation. Tip #4: Finally, after gathering all the information, start writing by creating a draft. Pace the drafting in order not to miss important details.  6.3 Project Scope Statement 23 A well-composed project scope statement generally consists of these 8 areas: 1) Justification Reasons why the project is created. Important for stakeholders to understand project justification. 2) Product description All known characteristics of a result, product, service that will be produced. 3) Acceptance criteria Conditions that must be fulfilled before the acceptance of project deliverables. 6.3 Project Scope Statement 24 4) Deliverables (or objectives) What will be produced (result, product, service). Important for stakeholders to agree upon. 5) Exclusions Statements or any elements not included in a project. They help to prevent scope creep.  6) Constraints Any limitations a project faces due to various reasons: resources, funding, time etc. 6.3 Project Scope Statement 25 7) Assumptions They bring some uncertainties and risks to a project and need to be carefully analysed. All stakeholders should be aware and minimise them. 8) Cost estimates The cost estimates needed to complete a project. They may be unknown at first, but it is important to know accurate costs. 6.3 Project Scope Statement 26 Scope creep in project management happens when additional features, functions, requirements or work are added beyond the agreed-upon scope with no consideration to impacts on time, cost and resources or stakeholders/customer approval.  6.4 Scope Creep 27 Occurs due to: Unclear scope definition. Poor management of scope and requirements Not following the change management Inconsistent collection of project requirements Lack of sponsorship or stakeholder involvement Longer duration of a project, hence greater chance for scope creep. 6.4 Scope Creep 28 Tips to control scope creep: Set well defined scope and requirements Set clear, measurable objectives and focus on the deliverables Establish an effective change management process and follow it diligently Provide project updates and engage sponsor and stakeholders regularly Break down projects into smaller and manageable sub-tasks  6.4 Scope Creep 29 Questions? 30 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 7: Project Scope Management – Part 2 1 Learning Objectives Discuss the process for creating a work breakdown structure using the analogy, top-down, bottom-up, and mind-mapping approaches. Explain the importance of verifying scope and how it relates to defining and controlling scope. 2 Learning Objectives Understand the importance of controlling scope and approaches for preventing scope-related problems on information technology projects Describe how software can assist in project scope management 3 7.1 Work Breakdown Structure (WBS) After collecting requirements and defining scope, the next step in project scope management is to create a work breakdown structure, WBS 4 5 It is the main tool or technique of decomposition, that is, subdividing project deliverables into smaller pieces or work packages. 7.1 Work Breakdown Structure (WBS) 6 “Work Breakdown Structure as a deliverable oriented hierarchical decomposition of the work to be executed by the project team.” Project Management Book of Knowledge (PMBOK) 7.1 Work Breakdown Structure (WBS) 7 Work Breakdown Structure (WBS) breaks a complex project into smaller tasks that are more manageable and approachable. It is an important project management document that integrates scope, cost and schedule baselines ensuring that project plans are aligned. 7.1 Work Breakdown Structure (WBS) 8 7.1.1 Create WBS 9 7.1.1 Create WBS 10 A sample WBS for IT intranet project 11 7.2 Methods of creating WBS Using guidelines The analogy approach The top-down approach The bottom-up approach The mind-mapping approach 12 Guidelines exist to provide form, content, and a project framework that is based upon meeting certain criteria and standards of the organization” (Schwalbe, 2011). Every company has own guidelines to obtain the best possible outcome of the project. 7.2.1 Using Guidelines 13 It is important to check the past project templates, relative documentations, examples for past successful projects, and important information – all that is used for the benefit of the WBS design 7.2.1 Using Guidelines 14 This technique uses a repository of WBS’s on file that already worked for similar kind of project in past. The project manager can review a previous project WBS for a new project at a new company, because it is the same method for all projects. 7.2.2 The Analogy Approach 15 For example, If you are currently working on an eCommerce website and you have successfully worked on such similar project previously. Then it is simple for you to break down the work based on the past experiences. 7.2.2 The Analogy Approach 16 The WBS is derived by decomposing the overall project into sub-projects or lower-level tasks. This decomposition is based on general project characteristics and not on detailed design elements. The decomposition continues until the tasks or work units reach a level where they can be accurately defined and estimated. 7.2.3 The Top-down Approach 17 It is more popular than the bottom-up approach. More logical & rational to first define a solution to a problem & then dissect the solution into the steps required to implement. Human nature is to first start with a broad approach to a problem and then iteratively narrow it down to specifics. 7.2.3 The Top-down Approach 18 Team members first identify as many specific tasks related to the project as possible. They then aggregate the specific tasks and organize them into summary activities, or higher levels in the WBS. Can be quite chaotic if the tasks identified by the team are not all at the same level. 7.2.4 The Bottom-up Approach 19 Time consuming to ensure that all tasks at a given level have been completely identified. It is resource intensive since it assumes that all members of the team have sufficient domain knowledge. The team needs a complete understanding of the project requirements to identify and integrate tasks at different levels. 7.2.4 The Bottom-up Approach 20 Often a few low-level tasks are inadvertently omitted because team members are either not knowledgeable or sensitive to all parts of the project. This approach is only recommended when the WBS is created by a group of experts who have a very detailed knowledge of the project and its decomposed elements. 7.2.4 The Bottom-up Approach 21 Mind minding describes the process of brainstorming by creating a branching structure that diagrams the thoughts and ideas associated with the project. Tasks are written into non-linear, branching format and then create the WBS structure. Once completed, the mind mapping can be used in developing a top-down or bottom-up approach WBS. 7.2.5 Mind-mapping Approach 22 7.2.5 Mind-mapping Approach 23 7.2.6 WBS Dictionary A WBS dictionary is a document that describes detailed information about each WBS item. It’s format can vary based on project needs. It might be appropriate to have just a short paragraph describing each work package. The approved project scope statement and its associated WBS and WBS dictionary form the scope baseline. Performance in meeting project scope goals is based on this scope baseline. 24 7.2.6 WBS Dictionary A WBS is a visual tool, and because of its graphic nature, it doesn’t have the space to explain the details of each step. To add this information to the WBS would be to make it difficult to read and use. The purpose of the WBS dictionary, then, is to add additional context to the WBS and increase its usability. 25 7.2.6 WBS Dictionary WBS structures have a title and often a number indicating each individual step. These labels correspond to the WBS dictionary, where detailed explanation of the step’s purpose and execution is provided. When referring to the WBS dictionary, it gives a deeper understanding of what’s needed to complete the project successfully. 26 7.2.6 WBS Dictionary It ensures that the project is meeting whatever regulatory or compliance issues govern the work. It also make sure the deliverables are meeting the quality expectations of the project stakeholders. Use it make sure that the project work is done right the first time and avoid costly and timely revisions. 27 7.3 Scope Verification Scope verification involves formal acceptance of the completed project scope by the stakeholders. This acceptance is often achieved by a customer inspection and then sign-off on key deliverables. 28 Even when the project scope is fairly well defined, many information technology projects suffer from scope creep, the tendency for project scope to keep getting bigger and bigger. 7.3 Scope Verification 29 7.3 Scope Verification 30 7.4 Scope Control The goal of scope control is to influence the factors that cause scope changes, assure changes are processed according to procedures developed as part of integrated change control, and manage changes when they occur. You cannot do a good job of controlling scope if you do not first do a good job of collecting requirements, defining scope, and verifying scope. 31 7.4 Scope Control Validation is an ongoing process, so it’s important to control the changes that arise from the customer’s feedback. It’s critical to keep the scope under control, which requires the project manager to monitor the project’s status. 32 7.4 Scope Control For instance, the customer may decide that the website to have an extra page. Project manager needs to assess this request and measure it against the baseline established during the planning phase. If he decides adding the page will help meet the project goal, he’ll tweak the project scope to reflect that change. 33 7.4 Scope Control It’s critical to watch for changes that won’t add anything of value to the end deliverable. The more changes made, the easier it is to miss the deadlines and over-budget. 34 7.4 Scope Control 35 7.5 Software for Project Scope Management It allows the project manager to create various accounts and invite clients, contractors and others to join the collaborative workspace and set permission levels for everyone who has access. 36 7.5 Software for Project Scope Management Some PM software integrate with third-party apps to enable information gathering using a variety of customisable forms. 37 7.5 Software for Project Scope Management File storage is a common feature. Integrations with popular apps such as Google Drive and Dropbox allow the team to quickly share and access every project document. The team can find the right document without wading through email threads or constantly jumping back to their computer’s hard drive folders. 38 7.5 Software for Project Scope Management PM software provides: Gantt charts: Plot the task dates on a timeline and manage task dependencies. Custom workflows: Create workflows that are best-suited for the team so tasks move seamlessly through the project phases. Kanban view of tasks: Visualise workflows so that everyone always knows what’s on their plate. Calendars: Keep the entire team on schedule and track deadlines in a single location. 39 7.5 Software for Project Scope Management Dashboards are an excellent way to keep the scope on track. They compile project data into a single view that can be customised depending on which Key Performance Indicators (KPIs) to track, giving the team a complete picture of the project’s status. 40 7.5 Software for Project Scope Management Example of a dashboard in project management software. 41 Questions? 42 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 8: Project Schedule Management - Part 1 1 Learning objectives Understand the importance of project schedules and good project time management Define activities as the basis for developing project schedules Describe how project managers use network diagrams and dependencies to assist in activity sequencing 2 Learning objectives Understand the relationship between estimating resources and project schedules Explain how various tools and techniques help project managers perform activity duration estimating 3 8.1 Project Schedule A project schedule is a timetable that organises project tasks, activity durations, calendar start and end dates, and sets overall project milestones on a timeline. 4 8.1 Project Schedule Defines the team members & resources needed to complete tasks. A fundamental tool for project planning and control. Accounts for all the work necessary to complete the deliverables. Includes all associated costs as outlined in the project budget. An essential tool to deliver a project on time and within budget. 5 8.2 Project Time Management Project time management, simply defined, involves the processes required to ensure timely completion of a project. Achieving timely completion of a project, however, is by no means simple. There are six (6) main processes involved in project time management 6 The 6 processes of project time management 1 2 3 4 5 6 7 8.2.1 Define Activities Define Activities is the process of identifying and documenting the specific actions to be performed to produce the project deliverables.  The key benefit of this process is to break down work packages into activities that provide a basis for estimating, scheduling, executing, monitoring and controlling the project work. PMBOK, 5th Edition, Section 6.2, “Define Activities” 8 8.2.1 Define Activities Create a list of tasks that must be completed in order to deliver the project. For complex projects, organise the tasks in the form of a Work Breakdown Structure (WBS), a chart visualising tasks and their sub-tasks. 9 8.2.1 Define Activities Rules of thumb for defining the activity list: Make sure the cost and duration can be reliably estimated.  Base the activities on the project Deliverables.  Have only one Responsible Party for each activity. Make it measurable in percentage completed.   10 8.2.2 Sequence Activities After listing the activities, determine their dependencies to identify which tasks rely on others to be completed. It’s important to correctly define all the task dependencies so that the activities sequencing can be done accurately and avoid delays. 11 8.2.2 Sequence Activities At this stage, the amount of time (work hours or due dates) to the activities are yet to be assigned. Instead, the focus is on the order in which all project activities should be done in an efficient flow. 12 8.2.3 Task Dependencies 13 8.2.3 Task Dependencies 14 8.2.4 Estimate Resources Estimate the resources (manpower, materials, tools etc.) needed for each project activity. The resource allocation will affect the schedule. For example, if the same team member is responsible for multiple tasks at once, there is a schedule conflict. 15 8.2.4 Estimate Resources To estimate resource availability, consider: Task sequence Time restrictions (team members’ vacations & other work, company holidays & office closures) Cost restrictions (the number, skill levels, & hourly requirements of team members under the budget) Skills & experience of team members affect their ability to complete work within certain time frames 16 8.2.5 Estimate Durations This is one of the hardest parts of project scheduling, but it’s also one of the most important since it has a huge impact on project cost. “Duration” refers to the number of working hours, days, weeks, or months expected to complete a task.  17 8.2.5 Estimate Durations One good way to estimate duration is to use data from similar previous jobs. If there is neither data to work from nor industry standard to refer, then an estimate can be based on the average of the best, worst, and most likely scenarios. 18 8.2.5 Estimate Durations Estimating duration correctly keeps clients happy (since work progresses on schedule) and team members happy (since they can easily meet deadlines). However, it is a common mistake to underestimate how long tasks will take. 19 8.2.5 Estimate Durations Project “frenzy” occurs when the team hurries to complete too much work in too little time, and the client has to be compensated with additional funds. In this case, quality suffers, and morale decreases on both sides. 20 8.2.5 Estimate Durations It is a common practice among project managers to keep some buffer time in the schedule. When things dont always go as planned, the buffer time helps to get things back on track. 21 8.3 Tools and Techniques for Activity Duration Estimating Six (6) tools and techniques: 1. Expert Judgment 2. Analogous Estimating 3. Parametric Estimating 4. Three Point Estimates 5. Reserve analysis 6. Group Decision Making Techniques 22 8.3.1 Expert Judgement Using experts who have knowledge of the related field and experience in estimating activity duration. It can be provided by a member or multiple members of the project management team. 23 8.3.2 Analogous Estimating It analyses a similar project completed in the past and makes a rough estimation for the current project by using the past project’s data. It makes duration calculations easier and faster but with less accuracy. It is useful when little information about the project is known, and management needs quick answers. 24 8.3.3 Parametric Estimating It is similar, but more accurate, than the analogous estimation. To use it, multiply the number of units you need by the time it takes to produce the units. Historical information about similar activities is needed to complete the estimate. The method is scalable. 25 8.3.3 Parametric Estimating For example, if the historical data shows that it takes 1 person an hour to produce 1 unit, we can reasonably estimate that 3 units can be completed by 3 workers within an hour. When this method is used, its important to account for all tasks that impact the activity. (For example, if the workers spend part of the time preparing materials, account for that time in the estimates). 26 8.3.4 Three Point Estimates Estimate Description Most Likely Estimate (Tm) This is the activity duration for most cases. Pessimistic Estimate (To) This is the activity duration in the worst-case scenario. Optimistic Estimate (Tp) This is the activity duration in the most favorable case. 27 8.3.4 Three Point Estimates Two popular formula: 1. Triangular distribution: Te = (To + Tm + Tp ) / 3 2. Beta (or PERT): Te = (To + 4Tm + Tp) / 6 28 8.3.4 Three Point Estimates For Activity A: To = 4 hours , Tm = 8 hours , Tp = 16 hours Triangular Distribution: Te = (4 + 8 + 16 ) / 3 = 28 / 3 = 9.3 hours Beta Distribution (PERT): Te = [4 + 4(8) + 16] / 6 = 52 / 6 = 8.7 hours 29 8.3.4 Three Point Estimates The beta distribution is a weighted average in which more weight is given to the most likely estimate and hence increase the accuracy of the estimate. Hence, Beta (PERT) distribution has been proven to be more accurate than the 3-Point triangular estimation. 30 8.3.4 Three Point Estimates Standard Deviation (SD) = (Tp-To)/6 Mean +/- 1 SD range – Probability is 68.4\% Mean +/- 2 SD range – Probability is 95.5\% Mean +/- 3 SD range – Probability is 99.7\%  31 8.3.4 Three Point Estimates 32 8.3.5 Reserve Analysis It is considered as a contingency reserve. Once the schedule for each activity is fixed, contingency reserve duration can be added. The contingency reserve duration can be changed depending on the situation. It helps the project team to manage schedule risks to minimise their impacts. 33 8.3.6 Group Decision Making Techniques Group decision making techniques can be used to estimate the duration of each activity. In this technique, the team members or experts are consulted to provide the best estimates for the project activities. 34 Questions? 35 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 9: Project Schedule Management – Part 2 1 Learning Objectives Use a Gantt chart for planning and tracking schedule information, find the critical path for a project. Describe how critical chain scheduling and the Program Evaluation and Review Technique (PERT) affect schedule development 2 Learning Objectives Discuss how reality checks and discipline are involved in controlling and managing changes to the project schedule. Describe how project management software can assist in project time management and review words of caution before using this software 3 9.1 Gantt Chart It is a bar chart that visualises the project schedule. It consists of a vertical task list on the left and a horizontal timeline on the right to present the break down structure of the project work and the relationship between the tasks. Use Gantt chart to track project progress contributes a lot to efficient team communication, clear accountability and specific work instructions. 4 9.1 Gantt Chart 5 9.1 Gantt Chart Advantages: Easy to understand even though it may contain a great deal of information. Easy to maintain though require frequent updating. Provide a clear picture of the current state of a project. Easy to construct. 6 Activity Immediate Predecessor (s) Time (Weeks) Activity Immediate Predecessor (s) Time (Weeks) A - 3 F D 4 B A 4 G C 3 C A 5 H E, G 5 D B 4 J H 3 E B 7  K F, J 5 9.1 Gantt Chart 7 9.1 Gantt Chart 8 The Critical Path Method (CPM) was developed in the 1950s to help project manager in scheduling, monitoring and controlling of large and complex projects. 9.2 Critical Path Method 9 CPM consists the following SIX (6) steps: Define the project scope/goals and prepare the work breakdown structure (WBS). Define the sequential or parallel relationships among the activities. Present the network diagram with all the activities connected. 9.2 Critical Path Method 10 For each activity, assign the time and/or cost estimates. Determine the critical path, the path with the longest time through the network. Use the network diagram to monitor and control the project progress. 9.2 Critical Path Method 11 When can the whole project be finished? Which are the critical or important activities to pay extra attention to? What are those non-critical activities that can afford to slack? Is the project ahead of schedule, on schedule, or behind schedule? 9.2.1 CPM answer these Questions 12 Are the expenditures less than, equal to, or more than the allocated budget? Are there sufficient resources available to ensure timely completion of the project? If the project duration need to be shortened, how to achieve this at the minimum cost? 9.2.1 CPM answer these Questions 13 9.2.2 Network diagram Activity on Activity Node (AON) Meaning (1) A B C (2) A C B When A is done, it is followed by B and then C. Both A and B must be done before starting C. 14 Activity on Activity Node (AON) Meaning (4) A B C D A and B must be done before C and D can start. (3) B A C When A is done, B and C can start. 9.2.2 Network diagram 15 Activity on Activity Node (AON) Meaning (6) A C D B B and C can start when A is done. D can only start when both B and C are done. (5) A B C D C can only start when both A and B are done; D can start when B is done. 9.2.2 Network diagram 16 9.2.3 Critical Path Analysis The critical path is the longest duration path through the network. The critical path determine the minimum time in which the project can be done. There shall be no delay in critical path activities, else the project will be delayed. 17 9.2.3 Critical Path Analysis 18 Earliest start time (EST) is the earliest possible time at which an activity can start. It is calculated by moving from first to last event in a network diagram.  Earliest finish time (EFT) is the earliest possible time at which an activity can finish. EFT = EST + duration of that activity. 9.2.3 Critical Path Analysis 19 Latest finish time (LFT) is calculated by moving from last event to the first event of the network diagram.  Latest start time is the latest possible time by which an activity can start. LST = LFT – duration of that activity.  9.2.3 Critical Path Analysis 20 Duration is the estimated or actual time required to complete a task or an activity. Float is the difference between time available for completing an activity and the time necessary to complete an activity. 9.2.3 Critical Path Analysis 21 9.2.3.1 Forward Pass Rules Earliest Start Time Rule:   When an activity has only ONE (1) immediate predecessor, its EST is equal to the EFT of the immediate predecessor. EST = EFT of the immediate predecessor   If an activity has TWO (2) or more immediate predecessors, its EST is the largest of all the EFT values of its predecessors.   EST = Max [EFT of all immediate predecessors] 22 Earliest Finish Time Rule:   The earliest finish time (EFT) of an activity is the earliest start time (EST) plus its own activity duration.   EFT = EST + Activity duration 9.2.3.1 Forward Pass Rules 23 9.2.3.2 Backward Pass Rules Latest Finish Time Rule:   When an activity is an immediate predecessor for just one single activity, its LFT is equal to the LST of the immediate successor. When an activity is an immediate predecessor to more than one activity, its LFT is the smallest of all the LST values of its successors.   LFT = Min [LST of all immediate successors] 24 Latest Start Time Rule:   The latest start time (LST) of an activity is the difference of its latest finish time (LFT) minus its own activity duration.   LST = LFT - Activity duration 9.2.3.2 Backward Pass Rules 25 Float is the length of time an activity can be delayed without delaying the entire project. Float = LST – EST Or Float = LFT - EFT 9.2.3.3 Calculating Float Time 26 9.2.3.4 CPM Example A B C D Activity Duration (Days) A 3 B 5 C 9 D 4 27 9.2.3.4 CPM Example 28 Activity Immediate Predecessor (s) Time (Weeks) Activity Immediate Predecessor (s) Time (Weeks) A - 3 F D 4 B A 4 G C 3 C A 5 H E, G 5 D B 4 J H 3 E B 7  K F, J 5 9.2.3 Critical Path Analysis 29 9.2.3 Critical Path Analysis 30 9.2.3 Critical Path Analysis 31 The project’s expected completion time is 27 weeks. Six (6) activities (A, B, E, H, J & K) are on the critical path. Four (4) activities (C, D, F & G) are not on the critical path and have float times. 9.2.3 Critical Path Analysis 32 9.3 PERT Another project time management technique is the Program Evaluation and Review Technique (PERT). It is a network analysis technique used to estimate project duration when there is a high degree of uncertainty about the individual activity duration estimates. 33 9.3 PERT PERT applies the critical path method (CPM) to a weighted average duration estimate. PERT uses probabilistic time estimates duration estimates based on using optimistic, most likely, and pessimistic estimates of activity durations instead of one specific or discrete duration estimate, as CPM does. 34 9.3 PERT O + 4ML + P 6 = 35 9.4 Crashing Project crashing is shortening the duration of a project by reducing the time of one or more tasks. It is done by increasing the resources to the project, which in turn reduces the time taken for the planned tasks. However, it adds cost to the overall project. Main objective is to shorten the project while also keeping costs at a minimum. 36 Achieved by: Introducing new and appropriate resources Approving overtime Expediting delivery to activities on critical path 9.4 Crashing 37 9.4 Crashing Project crashing can lead to a change of the critical path and the emergence of a new, different critical path. Project team needs to return to the project schedule to make sure they are aware of changes that have occurred there because of the project crashing. 38 9.5 Fast Tracking It compresses a project timeline and shortens the project duration. During fast-tracking, a planned activity partially or completely overlaps with another. Activities that were initially scheduled to be done one after another are rearranged to occur at the same time. 39 9.5 Fast Tracking 40 9.6 Crashing vs Fast Tracking 41 9.7 Project Management Software Specialised project management software is useful for large and complex project. It is particularly helpful in drawing project networks, identifying the project schedule, managing costs and other resources. Example: MS Project (Note: We will learn the basics of it in this course) 42 9.7 Project Management Software You need to understand the working of PERT and CPM before learning how to use the MS Project software or any project management software. Knowing such software gives you an edge over others in the job market. 43 Questions? 44 Activity123456789101112131415161718192021222324252627 A B C D E F G H J K Time Duration (Weeks) ESDurationEF LSFloat/SlackLF Activity No/Description IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 10: Use of Microsoft Project 1 Learning objectives Demonstrate how to use Microsoft Project to track IT projects a company is working on. Guide to using Microsoft Office Project to assist in performing project management functions. 2 10.1 What is Microsoft Project Microsoft Project is a Project Management software developed by Microsoft to assist project managers in their work. It has functionalities such as scheduling management, resource management, progress tracking, budget management, and analysing workloads. Comes in two editions, Standard and Professional File format is .mpp 3 10.2 History of Microsoft Project Software first released in 1984 for MS-DOS. Initially used as an internal tool to aid in the management of multiple software projects within the company A Windows and Macintosh version was released in the 1990’s Latest version for Windows is Microsoft Office Project 2019 4 10.3 How MS Project relates to PM processes MS Project can support in 13 processes across the different knowledge areas indicated in bold. 5 10.3 How MS Project relates to PM processes 6 10.4 User Interface 7 10.4 User Interface Section Name 1 Project Filename 2 Quick Access Toolbar 3 Window Sizing Buttons 4 Ribbon tabs, groups, and buttons 5 Timeline View 6 View Bar 7 Current Table/Tasks View 8 Current Timescale/Gantt View 9 Divider 10 Status Bar 11 View Buttons 12 Zoom Slider 2. Quick Access toolbar – can be customized 3. Window sizing buttons – Top will resize MS Project Application. The bottom will resize the current Project file. 4. Ribbon tabs, groups, and buttons – The ribbon has many tabs. Each tab has many groups that are made up of buttons and drop-down lists that are related to each other. 5. Timeline view – default view comes with the Timeline view. 6. View bar – displays the name of the current view. 7. Current table – displays the columns of the currently defined table. 8. Current timescale – can be either time-phased work or Gantt chart 9. Divider separating the current table and the timescale (Gantt chart). It can be moved to expand either the table or the time-phased chart. 10. Status Bar – Located on the bottom left corner of the window, it lets us know the status of the project file such as ready or calculating. It also lets us know if our tasks are being manually or automatically scheduled. 11. View buttons – quickly change views 12. Zoom slider – located on the bottom right of the window, it is used to adjust the timescale to zoom in and out. 8 10.5 Basic Navigation Create a new Project Project Information Calendar Views Task Views Resource View Tasks, Summary, Milestone 9 10.5.1 Create a New Project [File > New > Blank Project] 10 10.5.2 Project Information [Project > Project Information] 11 10.5.3 Calendar [Project > Change Working Time] Saturday & Sunday for standard calendar are considered non-working days. Exception days includes public holiday. 12 10.5.4 Views [View] 13 Task Creating a new specific work to perform Summary Collection of tasks Milestone Reference point of a major event in the project 10.5.5 Task, Summary, Milestone 14 10.6 Basic Functionalities Case Study Creating a Task Successors and Predecessors Milestones Critical Path Adding Resource Adding Cost Updating Completion Status Reports 15 10.6.1 Case Study Company XYZ is a brick and mortar store selling electronics products. With the introduction of Covid-19 pandemic, the sales of company has been affected. Company XYZ is exploring moving its products online to increase sales. To do so, the technology team proposes setting up an E-commerce site. The site should include basic user login, backend portal to manage products and the ability to checkout using online payment methods 16 10.6.1 Creating a Task List from WBS E-Commerce Project User Management Module Products Module Payment Module Create new User 4 days Forgotten Password 3 days Add new Product 5 days Insert Image to Product 3 days Integrate payment gateway 10 days 17 10.6.2 Creating a Task List Code Tasks Duration 1 User Management Module 1.1 - Create New User 4 days 1.2 - Forgotten Password 3 days 2 Products Module 2.1 - Add new Product 5 days 2.2 - Insert Image to Product 3 days 3 Payment Module 3.1 - Integrate Payment Gateway 10 days 18 10.6.2 Creating a Task List Create the tasks in Microsoft Project using the WBS. Conditions Start Date to be 2nd August 2021 Set all to be automatic scheduling tasks Constraint type – As soon as possible All silo tasks. No predecessors. 19 10.6.2 Creating a Task List [Double click on Task] Summary Task Information 20 10.6.2 Creating a Task List Notice how the tasks are all executed in silo. That is usually not the case for project management because some tasks cannot start prior to the completion of previous task (predecessors). 21 10.6.3 Successors and Predecessors [Continue from case study] The technology team has came up with new requirements. Some tasks needs to be completed prior to development indicated in the predecessors column. The values of the predecessors are referring to the WBS code. Code Tasks Duration Predecessors 1 User Management Module 1.1 - Create New User 4 days 1.2 - Forgotten Password 3 days 1.1 2 Products Module 2.1 - Add new Product 5 days 1.2 2.2 - Insert Image to Product 3 days 2.1 3 Payment Module 3.1 - Integrate Payment Gateway 10 days 22 10.6.3 Successors and Predecessors After inclusion of predecessors 23 10.6.4 Milestones Add a demo milestone after each module is developed. Demo date should be set on the last day of the module’s last task 24 10.6.4 Milestones Add a demo milestone after each module is developed. Constraint to finish no earlier than the finished date of the latest task for the module Milestones denoted by a diamond symbol in Gantt chart. 25 10.6.5 Constraint Type Constraint Description As Late As Possible (ALAP) The task starts as late as it can without delaying other tasks. This is the default constraint when you schedule from the project finish date. As Soon As Possible (ASAP) The task starts as soon as possible. This is the default constraint when you schedule from the project start date. Start No Earlier Than (SNET) The task starts on or after a specific date. Finish No Earlier Than (FNET) The task finishes on or after a specific date. Start No Later Than (SNLT) The task starts on or before a specific date. Finish No Later Than (FNLT) The task finishes on or before a specific date. Must Finish On (MFO) The task finishes on a specific date. Must Start On (MSO) The task starts on a specific date. 26 10.6.6 Critical Path [Format > Check Critical Tasks] All critical tasks will be highlighted red 27 10.6.7 Adding Resources Add the resources into the Project. Code Tasks Duration Predecessors Resource 1 User Management Module 1.1 - Create New User 4 days Marcus 1.2 - Forgotten Password 3 days 1.1 Marcus 2 Products Module 2.1 - Add new Product 5 days 1.2 Joel 2.2 - Insert Image to Product 3 days 2.1 Ken 3 Payment Module 3.1 - Integrate Payment Gateway 10 days Dorothy 28 [Resource > Assign Resources] Multiple resources could be assigned to each task 10.6.7 Adding Resources Select Resource and Click on “Assign” 29 10.6.7 Adding Resources After inclusion of Resource 30 10.6.8 Adding Cost [View > Resource Sheet] Add the costings to the respective resources Resource Cost Marcus $200/day Joel $20/hr Dorothy $250/day Ken $50/hr 31 10.6.8 Adding Cost Options to bill resource includes: After completion of task Before completion of task Prorated Task 1.1: 3 days * $200 = $600 Task 1.2: 4 days * $200 = $800 Total Cost: $600 + $800 = $1,400 32 10.6.9 Completion Updating the completion percentage of a task [View > Task Form] Select the task, update the \% Complete field 33 10.6.10 Reports Updating the completion percentage of a task [Project > Reports] 34 Questions? 35 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 11: Project Cost Management 1 Learning objectives Understand the importance of project cost management Explain basic project cost management principles, concepts, and terms Discuss different types of cost estimates and methods for preparing them Understand the processes involved in cost budgeting and preparing a cost estimate and budget for an information technology project 2 Learning objectives Understand the benefits of earned value management and project portfolio management to assist in cost control Describe how project management software can assist in project cost management 3 11.1 The importance of cost management Project success is often measured by how well the project meets the triple constraint (project scope, schedule, and budget) and provides quality deliverables. Cost overruns are a frequent element contributing to unsatisfactory project performance measurements. As many as 85\% of projects encounter cost overruns. 4 11.1.1 Basic Finance Cost is a resource sacrificed or foregone to achieve a specific objective or something given up in exchange. Costs are usually measured in monetary units like dollars ($) 5 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 $2 profit per $100 revenue  2\% profit margin 11.1.1 Basic Finance 6 11.1.2 What is cost management? Project cost management includes the processes required to ensure that the project is completed within an approved budget. Project managers must make sure their projects are well defined, have accurate time and cost estimates and have a realistic budget that they were involved in approving. 7 11.1.3 Basic principles of Cost management Cash flow analysis determines the estimated annual costs and benefits for a project and the resulting annual cash flow. Too many projects with high cash flow needs in the same year may not be able to be supported which will impact profitability. 8 Tangible costs or benefits are those costs or benefits that an organisation can easily measure in dollars. A task that was allocated $150,000 but actually cost $100,000 would have a tangible benefit of $50,000 if the assets allocated are used for other projects. 11.1.3 Basic principles of Cost management 9 Intangible costs or benefits are costs or benefits that are difficult to measure in monetary terms. Costs – resources used to research related areas of a project but not billed to the project. Benefits – goodwill, prestige, general statements of improved productivity not easily translated in dollars. 11.1.3 Basic principles of Cost management 10 Direct costs are costs that can be directly related to producing the products and services of the project. Example: Salaries, cost of hardware and software purchased specifically for the project Indirect costs are costs that are not directly related to the creating of products or services of the project, but are directly related to performing the project. Example: Cost of electricity, paper towels 11.1.3 Basic principles of Cost management 11 Sunk cost is money that has been spent in the past; when deciding what projects to invest in or continue, we should not include sunk costs. To continue funding a failed project because a great deal of money has already been spent on it is not a valid way to decide on which projects to fund. Sunk costs should be forgotten. 11.1.3 Basic principles of Cost management 12 11.1.3 Reasons why cost overruns Not emphasising the importance of realistic project cost estimates from the outset. Many of the original cost estimates for IT projects are low to begin with and based on very unclear project requirements. 13 Many IT professionals think preparing cost estimates is a job for accountants when in fact it is a very demanding and important skill that project managers need to acquire. Many IT projects involve new technology or business processes which involve untested products and inherent risks. 11.1.3 Reasons why cost overruns 14 11.2 Cost management processes There are 3 project cost management processes: Cost estimating: developing an approximation or estimate of the costs of the resources needed to complete a project Cost budgeting: allocating the overall cost estimate to individual work items to establish a baseline for measuring performance Cost control: controlling changes to the project budget 15 11.2 Cost management processes 16 11.3 Costs estimating After developing a good resource requirements list, PMs and their teams must develop several estimates of the costs for these resources PMs must take cost estimates seriously if they want to complete projects within budget constraints It’s important to know the types of cost estimates, how to prepare cost estimates, and typical problems associated with IT cost estimates 17 11.3.1 Rough Order of Magnitude A rough order of magnitude (ROM) estimate provides an estimate of what a project will cost. Also referred to as a ballpark estimate, a guesstimate or a broad gauge. Done very early in a project, often three or more years prior to project completion, or even before a project is officially started to help PMs make project selection decisions. 18 Its’ accuracy is typically (-50\% to +100\%), meaning the project’s actual costs could be 50\% below the ROM estimate or 100\% above. For example: A ROM estimates of an actual cost of $100,000 would range between $50,000 to $200,000. The accuracy range is often much wider for IT projects. Often IT project estimates for software development are doubled because of the history of cost overruns. 11.3.1 Rough Order of Magnitude 19 11.3.2 Budgetary Estimate Many organisations develop budgets at least two years into the future. Budgetary estimate is used to allocate money into an organisation’s budget. Budgetary estimates are made 1 to 2 years prior to project completion. Its’ accuracy is typically (-10\% to +25\%) For example: A budgetary estimate that actually costs $100,000 would range between $90,000 to $125,000. 20 11.3.3 Definitive Estimate A definitive estimate provides an accurate estimate of project costs (most accurate of the three types). Definitive estimates are used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs. 21 For example, if a project involves purchasing 1000 personal computers from an outside supplier in the next 3 months, a definitive estimate would be required to aid in evaluating supplier proposals and allocating the funds to pay the chosen supplier. Definitive estimates are made 1 year or less prior to project completion Accuracy range is normally (-5\% to +10\%) 11.3.3 Definitive Estimate 22 11.3.4 Comparisons of the 3 estimates 23 11.3.5 How to manage costs variances? A cost management plan is a document that describes how the organisation will manage cost variance on the project For example, how to respond to proposals from suppliers that are higher or lower than estimates 24 A large percentage of total project costs are often labor costs, so project managers must develop and track estimates for labor Many organisations estimate the number of people or hours they need by department or skill over the life cycle of a project 11.3.5 How to manage costs variances? 25 11.3.6 Cost Control Project cost control includes: Monitoring cost performance Ensuring that only appropriate project changes are included in a revised cost baseline Informing project stakeholders of authorised changes to the project that will affect costs Many organisations around the globe face challenges with cost control 26 Performance review meetings can be a powerful tool to help control project costs People will perform better if they need to report on the progress of the project. Performance measurement is another important tool for cost control There are many general accounting approaches for measuring cost performance but earned value management (EVM) is a tool unique to project management 11.3.6 Cost Control 27 11.3.7 Problems with IT cost estimates Estimates are done too quickly Many estimates must be done quickly, before clear system requirements have been produced. Lack of estimating experience The people developing the costs estimates often don’t have much experience, especially on large projects. There is not enough accurate, reliable project data available on which to base estimates. 28 Human beings are biased toward underestimation Senior team members make estimates based on their skill level but should take into account the junior people on the project Management desires accuracy but wants to spend less in order to win a bid or internal funding Top management never forgets the first estimate and rarely, if ever, remembers how approved changes affect the estimate. 11.3.7 Problems with IT cost estimates 29 11.4 Project Budgeting Process The process of determining budget for a project is an activity of aggregating the cost estimates of individual activities, or a work package, to develop the total cost estimate that allows setting a formal cost baseline. 30 11.4 Project Budgeting Process It involves 2 steps: The project cost estimate is allocated to the various work packages in the project WBS (work breakdown structure). The budget for each  work package is distributed  over the duration of the work package so thats possible to determine how much of its budget should have been spent at any point in time. 31 11.5 Earned Value Management EVM is a project performance measurement technique that integrates scope, time, and cost data Given a baseline (original plan plus approved changes), we can determine how well the project is meeting its goals 32 11.5 Earned Value Management Must enter actual information periodically to use EVM Was a WBS item completed or approximately how much of the work was completed? Actual start and end dates Actual cost More and more organisations are using EVM to help control project costs 33 11.5.1 Terminology in EVM Planned value (PV) is that portion of the approved total cost estimate planned to be spent on an activity during a given period. Actual cost (AC) is the total of direct and indirect costs incurred in accomplishing work on an activity during a given period. $20K AC to accomplish task over two weeks - $15K AC on week 1 and $5K on week 2 34 Earned value (EV) is an estimate of the value of the physical work that is completed. EV is based on the original planned costs for the project or activity and the rate at which the team is completing work on the project or activity to date. 11.5.1 Terminology in EVM 35 11.5.1 Terminology in EVM Cost Time Now EV PV AC 36 11.5.1 Terminology in EVM Scheduled Variance (SV) = EV – PV +ve: indicates ahead of schedule -ve: indicates behind schedule SV 37 11.5.1 Terminology in EVM Schedule Performance Index (SPI) = EV / PV <1 : Behind Schedule =1 : On schedule >1 : Ahead of schedule Cost Time Now EV PV 38 11.5.1 Terminology in EVM A project has a budget of $120,000. The PM calls for a review after 3 months. At this point, the value of work planned (PV) is $40,000 and the project is 40\% complete while 50\% of the budget has been spent to perform the work done to date. Compute the Earned Value (EV) & Scheduled Variance (SV) of the project at this time. Workings: Planned Budget = $120,000 Planned Value (PV) = $40,000 Project Budget Spent = $60,00 (50\% x 120,000) = Actual Cost (AC) Earned Value (EV) = $48,000 (40\% x 120,000) Scheduled Variance (SV) = EV – PV = $48,000 - $40,000 = + $8,000 39 11.5.1 Terminology in EVM Cost Variance (CV) = EV – AC +ve: indicates cost is not exceeded -ve: indicates cost is exceeded CV 40 11.5.1 Terminology in EVM Cost Performance Index (CPI) = EV / AC < 1 : Over spent = 1 : Spent according to plan > 1: Under spent Example: CPI = 0.5 means the project is earning 50 cents for every $1 spent. Cost Time Now EV AC 41 11.5.1 Terminology in EVM An one-year project with a budget of $200,000 has been in progress for 3 months. At this time, the PM calls for a review and found that the project has an Earned Value (EV) of $80,000 and Actual Cost (AC) of $120,000. Compute the Cost Variance (CV). Workings: Planned Budget = $200,000 Planned Duration = 12 months Planned Value (PV) = (6/12)* $200,000 = $100,000 Earned Value (EV) = $80,000 Actual Cost (AC) = $120,000 Cost Variance (CV) = EV – AC = $80,000 - $120,000 = -$40,000 42 Rate of performance (RP) is the ratio of actual work completed to the percentage of work planned to have been completed at any given time during the life of the project or activity. 11.5.1 Terminology in EVM 43 Rate of performance (RP) For example, suppose the server installation was halfway completed by the end of week 1; the rate of performance would be 50\% because by the end of week 1, the planned schedule reflects that the task should be 100\% complete and only 50\% of that work has been completed. The EV would thus be 50\% after week 1. 11.5.1 Terminology in EVM 44 Project portfolio management (PPM) is referred as “the centralised management of one or more project portfolios to achieve strategic objectives”. Projects are often connected in some way – budget, resources, or outputs. Rather than manage projects individually, PPM looks at all projects across all departments. 11.6 Project Portfolio Management 45 Project management software uses data to generate a detailed project budget. It accurately monitor the project’s financial performance and track actual costs while comparing them to budget. Project budget data can also be used to forecast financials for future projects as well. 11.7 PM Software in Cost Management 46 It has the tools for cost management planning across all phases of the project. Some PM softwares are cloud-based, so that project data is delivered in real time. Project manager can immediately gauge the accuracy of the cost estimates against the actual expenditure. 11.7 PM Software in Cost Management 47 Resource management feature is available to keep workload balanced, which reigns in costs. 11.7 PM Software in Cost Management Other feature such as “project dashboard” which tracks project costs in real time, so project manager can keep a close eye on the budget. 48 Questions? 49 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 12: Project Resource Management 1 Learning objectives Explain the importance of good human resource management on projects, including the current state and future implications of the global IT workforce Summarise key concepts for managing people by understanding the theories of Abraham Maslow, Frederick Herzberg, David McClelland, and Douglas McGregor on motivation, H. J. Thamhain and D. L. Wilemon on influencing workers, and Stephen Covey on how people and teams can become more effective 2 Learning objectives Define project human resource management and understand its processes Discuss human resource planning and be able to create a human resource plan, project organisational chart, responsibility assignment matrix, and resource histogram 3 Learning objectives Explain and apply several tools and techniques to help manage a project team and summarise general advice on managing teams Describe how project management software can assist in project human resource management 4 12.1 The Importance of Good HRM People determine the success and failure of organisations and projects Given the current business environment, there is a shortage of IT workers 5 12.2 Current state of the global IT workforce Many firms are struggling with how to increase the IT labor pool. Noted problems include: Many IT professionals work long hours and must constantly stay abreast of changes in the field Undesirable stereotypes that keep certain people away from the career field, like women The need to improve benefits, redefine work hours and incentives, and provide better human resource management 6 12.3 Concepts of Managing People Psychologists and management theorists have devoted much research and thought to the field of managing people at work Important areas related to project management include: Motivation Influence and Power Effectiveness 7 12.3.1 Maslow’s Hierarchy of Needs 8 Abraham Maslow developed a hierarchy of needs to illustrate his theory that people’s behaviors are guided by a sequence of needs. Maslow argued that humans possess unique qualities that enable them to make independent choices, thus giving them control of their destiny. 12.3.1 Maslow’s Hierarchy of Needs 9 12.3.2 Herzberg’s Motivational & Hygiene Factors Frederick Herzberg wrote several famous books and articles about worker motivation. He distinguished between: Motivational factors Hygiene factors 10 Motivational factors: achievement, recognition, the work itself, responsibility, advancement, and growth, which produce job satisfaction Hygiene factors: cause dissatisfaction if not present, but do not motivate workers to do more. Examples include larger salaries, more supervision, and a more attractive work environment 12.3.2 Herzberg’s Motivational & Hygiene Factors 11 12.3.2 Herzberg’s Motivational & Hygiene Factors 12 12.3.3 David McClelland – 3 Needs Theory 13 12.3.4 McGregor’s Theory X & Y Douglas McGregor popularised the human relations approach to management in the 1960s Theory X: assumes workers dislike and avoid work, so managers must use coercion, threats and various control schemes to get workers to meet objectives Theory Y: assumes individuals consider work as natural as play or rest and enjoy the satisfaction of esteem and self-actualization needs 14 12.3.4 McGregor’s Theory X & Y 15 12.3.4 McGregor’s Theory X & Y 16 12.3.5 Thamhain & Wilemon on influencing workers 17 12.3.5 Thamhain & Wilemon on influencing workers 18 12.3.6 Stephen Covey 7 Habits Project managers can apply Covey’s 7 habits to improve effectiveness on projects: 19 12.3.6 Stephen Covey 7 Habits No Habit Means 1 Be proactive Take initiative 2 Begin with the end in mind Focus on goals 3 Put first things first Set priorities 4 Always think Win/Win We win only when others win 5 Seek first to understand, then to be understood Communicate 6 Always synergise Cooperate 7 Sharpen the saw Reflect on and repair the deficiencies 20 Habit 3: Put First Things First 21 Habit 5: Seek First To Understand Good project managers are empathic listeners; they listen with the intent to understand. Before you can communicate with others, you have to have rapport Mirroring is a technique to help establish rapport IT professionals often need to develop empathic listening and other people skills to improve relationships with users and other stakeholders 22 Habit 5: Seek First To Understand 23 12.4 Tuckman’s Stages of Group Development 24 12.5 Project Resource Management Many corporate executives have said, “People are our most important asset.” People determine the success and failure of organisations and projects Project resource management is concerned with making effective use of the people involved with a project as well as physical resources (materials, facilities, equipment, and infrastructure) 25 12.5 Project Resource Management The main outputs produced as part of project resource management planning are: Project resource management plan (can be separated into a team management plan and a physical resource management plan) Team charter 26 12.5.1 Team Charter Many companies believe in using team charters to help promote teamwork and clarify team communications. After core project team members have been selected, they meet to prepare a team charter to guide how the team will function. It is crucial to emphasize the importance of the project team throughout the project’s life cycle, and the team charter should be updated as needed. 27 12.5.2 Sample Team Charter Code of Conduct/Values: As a project team, we will: Work proactively, anticipating potential problems and preventing their occurrence. Keep other team members informed of information related to the project. Focus on what is best for the entire project team. 28 Participation: We will: Be honest and open during all project activities. Provide the opportunity for equal participation. Be open to new approaches and consider new ideas. Let the project manager know well in advance if a team member has to miss a meeting or may have trouble meeting a deadline for a given task. 12.5.2 Sample Team Charter 29 Communication: We will: Keep discussions on track and have one discussion at a time. Use the telephone, e-mail, a project website, instant messaging, texts, and other media to assist in communicating. Have the project manager or designated person facilitate all meetings and arrange for phone and videoconferences, as needed. Work together to create the project schedule and related information and enter actuals, issues, risks, and other information into our enterprise project management system by 4 p.m. every Friday. 12.5.2 Sample Team Charter 30 12.6 Human Resource Planning Key components include: Human resource plan Project organisational chart Responsibility assignment matrix (RAM) Resource histogram 31 12.6.1 Human Resource Plan A human resource plan describes when and how people will be added to and removed from a project It describes the types of people needed to work on the project, the numbers needed for each type of person each month, and how these resources will be acquired, trained, rewarded, and reassigned after the project 32 12.6.2 Project organisation Chart Similar to a company’s organisational chart, a project organisational chart is a graphical representation of how authority and responsibility is distributed within the project The size and complexity of the project determines how simple or complex the project organisation chart. 33 12.6.2 Project organisation Chart 34 12.6.3 Responsibility Assignment Matrix A responsibility assignment matrix (RAM) is a matrix that maps the work of the project as described in the work breakdown structure (WBS) to the people responsible for performing the work For smaller projects, it is best to assign WBS activities to individuals; for larger projects, it is more effective to assign the work to organisational units or teams 35 RACI charts are a type of RAM that show: Responsibility (who does the task), Accountability (who signs off on the task or has authority for it), Consultation (who has information necessary to complete the task), Informed (who needs to be notified of task status/results) roles for project stakeholders 12.6.3 Responsibility Assignment Matrix 36 Sample RACI Chart Tasks Kristin Jamie Mohamed Supplier A Needs assessment A R C I Research of existing training I R, A C I Partnerships R, A I I C Course development A C C R Course administration I A R Course evaluation I A R I Stakeholder communications R, A C C C 12.6.3 Responsibility Assignment Matrix 37 12.6.4 Resource Histogram A resource histogram is a column chart that shows the number of resources required for or assigned to a project over time In planning project staffing needs, senior managers often create a resource histogram in which columns represent the number of people needed in each skill category. By stacking the columns, the total number of people needed each month can be seen After resources are assigned to a project, the resource histogram for each person can be seen on how his/her time has been allocated 38 12.6.4 Resource Histogram 39 PM 1 2 3 4 5 6 7 8 9 10 11 12 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 HR 1 2 3 4 5 6 7 8 9 10 11 12 1 1 1 1 1 1 1 1 1 1 1 1 SM 1 2 3 4 5 6 7 8 9 10 11 12 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 IT 1 2 3 4 5 6 7 8 9 10 11 12 0.25 0.5 0.5 0.5 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 Contracting 1 2 3 4 5 6 7 8 9 10 11 12 0 0 0.25 0.25 0.25 0.25 0.2 5 0.25 0.25 0.25 0.25 0.25 PMO 1 2 3 4 5 6 7 8 9 10 11 12 0 0.5 0.5 0.5 0.5 0 0 0 0 0 0 0 Miscellaneous 1 2 3 4 5 6 7 8 9 10 11 12 0.25 0.25 0.25 0.25 0.25 0.5 0.5 0.5 0.5 0.25 0.25 0.25 Month Number of People 12.7 Estimating Activity Resources Estimating activity resources involves estimating the type, quantity and characteristics of team resources and physical resources (i.e., materials, equipment, and supplies) required to complete the project. This process is closely related to estimating activity durations and costs. 40 12.7 Estimating Activity Resources It is important that the people who help determine what resources are necessary include people who have experience and expertise in similar projects and with the organisation performing the project. Resource estimates should be updated as needed during the project. 41 How difficult will it be to perform specific activities on this project? Is there anything unique in the project’s scope statement that will affect resources? Are there specific resources better suited to perform the activities? What is the organisation’s history in doing similar activities? Have they done similar activities before? What level of personnel did the work? 12.7 Estimating Activity Resources 42 Does the organisation have appropriate people, equipment, and materials available for performing the work? Are there any organisational policies that might affect the availability of resources? Does the organisation need to acquire more resources to accomplish the work? Would it make sense to outsource some of the work? Will outsourcing increase or decrease the amount of resources needed and their availability? What assumptions have been made or need to be made? 12.7 Estimating Activity Resources 43 Sample Activity Resource Requirements Information Activity Resource Requirements August 1 Project Name: Just-In-Time Training Project WBS Item Number: 3.1.1.1.2 WBS Item Name: Survey administration Resource Source: Internal staffing, hardware, and software from the IT department Description: The individuals must be knowledgeable in using our online survey software so they can enter the actual survey into this software. They must also know how to run a query to find the e-mail addresses of employees of grade level 52 or higher in the purchasing, accounting, engineering, information technology, sales, marketing, manufacturing, and human resource departments. 44 Sample Resource Breakdown Structure 45 Just-In-Time Training Project Internal Personnel Equipment Supplies External Personnel Training IT Training Classrooms Training Books Classroom Computers Level 1 Level 2 Level 1 Level 2 Projection Systems Questions? 46 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 13: Project Stakeholder Management 1 Learning objectives Explain the importance of project stakeholder management throughout the life of a project Discuss the process of identifying stakeholders, how to create a stakeholder register, and how to perform a stakeholder analysis Describe the contents of a stakeholder engagement plan 2 Learning objectives Describe the process of managing stakeholder engagement Explain methods for monitoring stakeholder engagement 3 13.1 Importance of project stakeholder management Effective stakeholder management is fundamental to the success of projects. Communication is one of the main mechanisms used in stakeholder management.  According to the Project Management Institute (PMI, 2013), amongst those organisations considered to be highly effective communicators, 80\% of projects meet original goals, 71\% deliver projects on time and 76\% within budget.  4 13.1 Importance of project stakeholder management PMI calculates that one in five projects fail because of ineffective communication. In the current COVID-19 pandemic economic climate where large group meetings and face-to-face discussions will be limited, it will be more difficult to communicate effectively. Hence the importance of effective stakeholder management, engagement, and communication. 5 13.2 Project Stakeholder Management Processes Identifying stakeholders: Identifying everyone involved in the project or affected by it and determining the best ways to manage relationships with them. Planning stakeholder management: Determining strategies to effectively engage the stakeholders 6 Managing stakeholder engagement: Communicating and working with project stakeholders to satisfy their needs and expectations, resolving issues, and fostering engagement in project decisions and activities Controlling stakeholder engagement: Monitoring stakeholder relationships and adjusting plans and strategies for engaging stakeholders as needed 13.2 Project Stakeholder Management Processes 7 13.2 Project Stakeholder Management Processes 8 13.3 Identifying Stakeholders Internal project stakeholders generally include the project sponsor, project team, support staff, and internal customers for the project. Other internal stakeholders include top management, other functional managers, and other project managers because organisations have limited resources 9 External project stakeholders include the project’s customers (if they are external to the organisation), competitors, suppliers, and other external groups that are potentially involved in the project or affected by it, such as government officials and concerned citizens 13.3 Identifying Stakeholders 10 www.projectstakeholder.com lists other stakeholders including: Program director Project manager’s family Labor unions Potential customers It is also necessary to focus on stakeholders with the most direct ties to a project, for example only key suppliers 13.3 Identifying Stakeholders 11 13.3.1 Stakeholder Register A stakeholder register includes basic information on stakeholders: Identification information: The stakeholders’ names, positions, locations, roles in the project, and contact information Assessment information: The stakeholders’ major requirements and expectations, potential influences, and phases of the project in which stakeholders have the most interest Stakeholder classification: Is the stakeholder internal or external to the organization? Is the stakeholder a supporter of the project or resistant to it? 12 13.3.1 Stakeholder Register 13 13.3.2 Classifying Stakeholders After identifying key project stakeholders, we can use different classification models to determine an approach for managing stakeholder relationships A power / interest grid can be used to group stakeholders based on their level of authority (power) and their level of concern (interest) for project outcomes 14 Power / Interest Grid 13.3.2 Classifying Stakeholders 15 Power / Interest Grid 13.3.2 Classifying Stakeholders 16 13.3.3 Stakeholder Analysis 17 13.3.3 Stakeholder Analysis 18 13.3.3 Stakeholder Analysis 19 13.3.4 Stakeholder Engagement Levels Unaware: Unaware of the project and its potential impacts on them Resistant: Aware of the project yet resistant to change Neutral: Aware of the project yet neither supportive nor resistant Supportive: Aware of the project and supportive of change Leading: Aware of the project 20 13.4 Planning Stakeholder Management After identifying and analysing stakeholders, project teams should develop a plan for management them The stakeholder management plan (SMP) can include: Current and desired engagement levels Inter-relationships between stakeholders Communication requirements Potential management strategies for each stakeholder Methods for updating the SMP 21 13.4.1 Sensitive Information Stakeholder management plan (SMP) often includes sensitive information, it should not be part of the official project documents, which are normally available for all stakeholders to review Often, only project managers and a few other team members should prepare the SMP Parts of the SMP are not written down, and if they are, distribution is strictly limited 22 13.5 Managing Stakeholder Engagement Project success is often measured in terms of customer/sponsor satisfaction Project sponsors often rank scope, time, and cost goals in order of importance and provide guidelines on how to balance the triple constraint This ranking can be shown in an expectations management matrix to help clarify expectations 23 13.5 Managing Stakeholder Engagement 24 13.5 Managing Stakeholder Engagement Expectations Management Matrix 25 Understanding the stakeholders’ expectations can help in managing issues Issues should be documented in an issue log, a tool used to document, monitor, and track issues that need resolution Unresolved issues can be a major source of conflict and result in stakeholder expectations not being met 13.5 Managing Stakeholder Engagement 26 13.5 Managing Stakeholder Engagement 27 Project managers are often faced with challenges, especially in managing stakeholders Sometimes they simply cannot meet requests from important stakeholders 13.5 Managing Stakeholder Engagement 28 Suggestions for handling these situations include the following: Be clear from the start Explain the consequences Have a contingency plan Avoid surprises Take a stand 13.5 Managing Stakeholder Engagement 29 13.6 Controlling Stakeholder Engagement While the stakeholders cannot be controlled, their level of engagement can be controlled. Engagement involves a dialogue in which people seek understanding and solutions to issues of mutual concern Many project managers are familiar with various techniques for engaging the stakeholders It is important to set the proper tone at the start of a project 30 Key stakeholders should be invited to actively participate in a kick-off meeting rather than merely attending it The project manager should emphasise that a dialogue is expected at the meeting, including texts or whatever means of communication the stakeholders prefer. 13.6 Controlling Stakeholder Engagement 31 The project manager should also meet with important stakeholders before the kick-off meeting The project schedule should include activities and deliverables related to stakeholder engagement, such as surveys, reviews, demonstrations, and sign-offs. 13.6 Controlling Stakeholder Engagement 32 13.7 Using Software to Assist in Project Stakeholder Management Productivity software, communications software, and collaboration tools can promote stakeholder engagement Social media can also help engage stakeholders. For example, LinkedIn has thousands of groups for project management professionals 33 Some project management software includes functionality like Facebook to encourage relationship building on projects, like giving high fives for a job well done 13.7 Using Software to Assist in Project Stakeholder Management 34 13.8 Social Media for Project Managers Elizabeth Harrin, author of Social Media for Project Managers provides advice for when to use social media and when not to use it As the saying goes, “A fool with a tool is still just a fool.” A lot of stakeholder engagement requires old-fashioned techniques like talking to someone! 35 13.9 Impact of COVID-19 The COVID-19 pandemic has complicated the challenge of stakeholder management.  Social distancing prevents large meetings, or even interpersonal contact. Advisable for project managers to put in greater effort to know the key stakeholders through smaller meetings, in person, or multiple online video meetings.  36 13.9 Impact of COVID-19 It is critical for initial contact when establishing a relationship with the stakeholders. Online video meeting allows the seeing of a person’s facial expressions and body language.  Once a sound relationship has been established with the key stakeholders, one can move to using other modes of communications other than in-person meetings, and online meetings. 37 Questions? 38 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 14: Agile PM with Scrum 1 Learning objectives Understand principles and values of Agile project management Discuss differences between Agile project management and traditional project management lifecycles Describe agile project management methodologies 2 Learning objectives Use Scrum methodology to simulate agile project (i.e.: define, initiate, plan, execute, monitor/control and close an IT project) Discuss agile project team roles and responsibilities 3 14.1 What is Agile Project Management? Agile Project Management (APM) is the process of breaking a project down into manageable steps with an emphasis on responsiveness and customer collaboration. This new and flexible style of project management is being adopted by many businesses. Faster products delivery can be achieved the implementation of APM. 4 14.1 What is Agile Project Management? APM releases benefits throughout the production process, not just at the end. It can be applied in all industries, although this framework gained popularity in the software sector. Some of its core values and principles relate directly to software development. 5 14.1.1 Core Values of Agile Project Management Individuals and interactions over processes and tools APM dictates that human interaction takes precedence over everything else. Check in with team members and the customer frequently to make sure everyone understands the project and is happy with the direction. 6 14.1.1 Core Values of Agile Project Management 2. Working software over comprehensive documentation Traditional project management requires extensive documentation in the form of written technical documents. APM values documentation but recommends the use of software to keep the necessary documents and records efficiently. 7 14.1.1 Core Values of Agile Project Management 3. Customer collaboration over contract negotiation The customers are included in the process of design and production. Their input throughout the project, rather than at the start and conclusion, will ensure that every action taken by the team is in the right direction. 8 14.1.1 Core Values of Agile Project Management 4. Responding to change over following a plan Be prepared and willing to adapt as the project demands. Use data to decide on the next action. Use formative assessments along the way to shift the process to create the best product, rather than to follow a predetermined set of steps to a conclusion and then assess the outcome. 9 14.1.2 Principles of Agile Project Management 12 Principles: The highest priority is to satisfy the customer through early and continuous delivery of valuable software (or whatever the product or output is). Welcome changing requirements, even late in development. Agile processes harness change for the customers competitive advantage. Deliver projects frequently, from a couple of weeks to a couple of months, with a preference for the shorter timescale. 10 14.1.2 Principles of Agile Project Management Coordinating team members must work together daily throughout the project. Build projects around motivated individuals. Give them the environment and support they need and trust them to get the job done. Face-to-face conversation is the most efficient and effective method of conveying information to and within different teams. 11 14.1.2 Principles of Agile Project Management The final product is the primary measure of progress. Agile processes promote sustainable development. All stakeholders should be able to maintain a constant pace indefinitely. Continuous attention to technical excellence and good design enhances agility. 12 14.1.2 Principles of Agile Project Management Simplicity - the art of maximising the amount of work not done - is essential. The best architectures, requirements and designs emerge from self-organising teams. At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly. 13 14.2 Traditional Project Management Waterfall is also called traditional project planning method. It relies on exhaustive analysis and data collection upfront. A plan is formed thereafter and a solution is also developed at the beginning. The steps followed looks like a waterfall. 14 It is a sequential (non-iterative) design process, used in software development processes, in which progress is seen as flowing steadily downwards (like a waterfall) through the phases of conception, initiation, analysis, design, construction, testing, production, implementation and maintenance. 14.2 Traditional Project Management 15 Advantages: Easy to understand, use and manage as stages are clearly defined. Easy to visualise cost, size and timeline for the project. Clients usually can follow easily the progress. Staff turnover is not impacting the project as documentation are strong. 14.2 Traditional Project Management 16 Disadvantages: It is too rigid and changes can’t be easily accommodated. Its success heavily dependent on initial analysis. If wrong, failure is often. The whole product is tested at the end of project cycle. The project plan does not take into account changing client business environment. 14.2 Traditional Project Management 17 14.2.1 Traditional vs Agile PM Traditional PM Agile PM Project team would set a specific goal, create a series of steps to reach that goal and then implement the process. Breaks a project down into small goals, or sprints, and utilises frequent assessments to reshape the steps and even possibly the end goal. Linear - Each step must be completed before the next can begin. Iterative - Steps can be worked on simultaneously and assessed at the same time. 18 14.3 Agile PM Methodologies Agile is a method that breaks down a project into smaller independent chunks and iterations. One iteration is sufficient to release product to a client. 19 The project plan is dynamic and embraces changes as it happens. Agile relies in the team “as a whole” for decision making. No hierarchy. Work is distributed by consensus, not delegation. Client is heavily involved during project stages. Work is delivered to client in frequent releases, allowing feedbacks. 14.3 Agile PM Methodologies 20 14.3 Agile PM Methodologies Agile project management has 6 steps. 1. Project planning The team determine the projects end goal which should be relatively broad, to account for revisions and improvements throughout the process. 2. Creating the project roadmap The roadmap is made up of all the features included in the final product. This is not a list of steps, but instead a list of elements that can be completed somewhat simultaneously. 21 14.3 Agile PM Methodologies 3. Release planning A release plan is a calendar of when prototypes or product elements will be delivered to the customer for review. The expectation is that individual pieces of the total project will be reviewed frequently, and the overall project updated as needed. 4. Sprint planning Sprints are short-cycle design times that end with a product release. Sprint planning should be detailed. Every team member should know what they are expected to accomplish during every day of the sprint. 22 14.3 Agile PM Methodologies 5. Daily meetings Start each workday during a sprint with a meeting. Team members will share successes and challenges from the previous day. Confirm tasks and goals for that workday. 23 14.3 Agile PM Methodologies 6. Sprint reviews and retrospective Sprint review : Presentation of the product element to the customer. The team will receive feedback and prepare to revise the element or adjust the long-term goal as directed by the customer. Sprint retrospect: The team will meet separately from the client and reflect on the sprint issues (workload imbalance, deadlines & communication) to be addressed and improved for the next sprint. 24 Agile Misconception “letting the programming team do whatever they need to with no project management, and no architecture, allowing a solution to emerge, the programmers will do all the testing necessary with Unit Tests…” 14.3 Agile PM Methodologies 25 14.3.1 Advantages of Agile It allows changes after project initiation stage. Its can add functional features as market changes. At the end of each iteration, product is assessed. Testing at end of each sprint or iteration ensures errors are corrected in timely manner. 26 14.3.2 Disadvantages of Agile The process is not suitable for complex projects. As changes are introduced at every stage of project life cycle, the end product may be grossly different than what was initially intended. 27 14.4 Scrum Framework Scrum is an agile framework for developing, delivering, and sustaining complex new products and services, with an initial emphasis on software development. At the same time, they can deliver products of the highest possible value in a productive and creative manner. 28 Scrum is: A subset of Agile Light weight Simple to understand Difficult to master One of the most popular Agile frameworks in use today 14.4 Scrum Framework 29 Scrum is based on the fact that product development is complex, highly unpredictable, and covered in many uncertainties. Scrum has no rules for upfront predictions of document types and deliverables to be produced or the time of their production. 14.4 Scrum Framework 30 Although Scrum represents a methodical approach, i.e. a disciplined application of empirical process control, Scrum has no exhaustive and formal prescriptions on how to design and plan the behavior of all product delivery actors against time, let alone how these designs and plans must be documented, signed, handed over, or stored. 14.4 Scrum Framework 31 The whole idea behind Agile Project Management with Scrum is to give the end users exactly what they want. This can be achieved through “Sprints” or continuous feedback and iterations. Sprints are meant to be short, but regular cycles of no more than 4 weeks for which a significant product increment is expected to be presented. 14.4 Scrum Framework 32 2-4 weeks 14.4 Scrum Framework 33 14.4.1 Sprint in Scrum A Sprint is usually limited to one calendar month (or 4 weeks). When a Sprint’s horizon is too long the definition of what is being built may change, complexity may rise, and risk may increase. A new Sprint starts immediately after the conclusion of the previous Sprint. 34 During the Sprint: No changes are made. Quality goals do not decrease. Scope may be clarified and re-negotiated between the Product Owner and Development Team as more is learned. Each Sprint may be considered a project with no more than a one-month horizon. Like projects, Sprints are used to accomplish something. Each Sprint has a goal of what is to be built, a design and flexible plan that will guide building it, the work, and the resultant product increment. 14.4.1 Sprint in Scrum 35 14.4.2 Sprint & Product Backlog The sprint backlog is like a subset of the product backlog. The sprint backlog comes from the product backlog is to be completed during each sprint. Unlike the product backlog, the sprint backlog is unchanged during the period of the sprint. 36 14.5 Roles & Responsibilities in Scrum These are the roles in a Scrum project: 37 Communicate 14.5 Roles & Responsibilities in Scrum 38 14.5.1 The Product Owner The product owner is the one in charge of the business side of the project and is held accountable when processes do not follow the right order. Being a primary stakeholder in the project, it is the Product Owner’s responsibility to have a vision for what he or she hopes to see. The ability to communicate that vision to the entire team also falls squarely on his/her shoulders. 39 The product owner is primarily responsible for driving iteration goals delivering the maximum business value. He/she must work with the team to delegate responsibilities and work among team members. His/her main role is simply one of clarification, communication, & motivation. 14.5.1 The Product Owner 40 14.5.2 The Scrum Master Scrum Master ensures team coordination and supports the progress of the project between individual team members. He/She takes the instructions from the Product Owner and ensure that the tasks are performed accordingly. He/She acts as a teacher and coach, verifying certain team members adhere to the theory and practices of Scrum. 41 The roles may involve: Facilitating the daily Scrum and Sprint initiatives. Communicating between team members about evolving requirements and planning. Coaching team members on delivering results. Handling administrative tasks such as conducting meetings, facilitating collaboration, and eliminating hurdles affecting project progress. Shielding team members from external interferences and distractions. 14.5.2 The Scrum Master 42 14.5.3 Development Members Members of the Scrum team are expected to report their daily progress, along with any successes and challenges to the Scrum team during daily stand-up meetings. The scrum team usually consists of Professionals: Self organising Communicates with Product owner 43 14.5.4 Stakeholders The Stakeholder may not be directly involved in the product development process but represents a range of key roles that impact the decisions and work of the Scrum team. The stakeholder may be: The end user of the product Business executives Production support staff Investors External auditors Scrum team members from associated projects and teams 44 14.5.5 Additional Roles Large projects may include these additional roles: Technical and domain experts with the knowledge of technology as well as a wide variety of stakeholder requirements or expectations. An independent testing and audit team may join the Scrum team members and work throughout the product development lifecycle. An Integrator may be required among large teams that work on independent but closely coordinated subsystems for a project. The responsibility for the Integrator would include integration of the subsystems as well as testing that may be performed by external testing teams. 45 Questions? 46 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 15: Project Quality Management – Part 1 1 Learning objectives Understand the importance of project quality management for information technology products and services. Define project quality management. Understand how quality relates to various aspects of information technology projects. 2 Learning objectives Describe quality planning and its relationship to project scope management. Discuss the importance of quality assurance (QA) Explain the main outputs of the quality control (QC) process. 3 15.1 What Is Quality? The International Organisation for Standardisation (ISO) defines quality as “the degree to which a set of inherent characteristics fulfill requirements” (ISO9000:2000) Other experts define quality based on conformance to requirements and fitness for use. 4 15.1 What Is Quality? Conformance to requirements means that the project’s processes and products meet written specifications. Fitness for use means that a product can be used as it was intended. The customer ultimately decides that the quality level is acceptable. 5 15.1 What Is Quality? Dimension Description Performance Will the product perform its intended function? Special Features Additional function to the product Perceived Quality What is the reputation of the company or its product? Conformance Is the product made exactly to the designer or customer requirements/specifications? Aesthetics How does the product look like? Reliability The probability that the product can function under stated condition without failure for a given period of time. Durability What is the lifetime of the product? Serviceability How easy is it to repair the product? Garvin (1987) proposed the following 8 dimensions of product quality 6 15.1.1 IT Projects Quality Dimensions Dimension Description Functionality The degree to which a system performs its intended function Features The system’s special characteristics that appeal to user Performance How well a product or service performs the customer’s intended use Reliability The ability of a product or service to perform as expected under normal conditions System outputs The screens and reports the system generates Maintainability The ease of performing maintenance on a product 7 15.1.2 Importance of Project Quality Management The triple constraint is always at the top of the project manager’s mind, but there is a 4th concern that is sometimes forgotten in the maelstrom of project management—quality. It doesn’t matter if we got the best software, met every milestone and completed the project under budget if the deliverable didn’t meet quality standards. That’s why project quality management is so important. 8 15.2 Quality Management Concepts Customer Satisfaction – Meeting or exceeding the expectations of the customer. Total Quality Management (TQM) - Management & employees focus on continually finding ways to improve quality of the products or processes. Continuous Improvement (Kaizen) - Making small and incremental improvement continuously. 9 15.2.1 Customer Satisfaction Without customer satisfaction there can be no quality. The deliverable must meet the requirements, or else the project has failed because the product of the project and the management of the project didn’t meet with the expectations of the customer or stakeholder. 10 15.2.2 Total Quality Management Total Quality Management (TQM) refers to a quality emphasis that encompasses the entire organisation, from supplier to customer. TQM stresses a commitment by management to have a continuous companywide drive toward excellence in all aspects of products and services that are important to the customer. 11 It is a never-ending process of continuous improvement that covers people, equipment, suppliers, materials and procedures. The basis of the philosophy is that every aspect of a project can be improved. 15.2.3 Continuous Improvement 12 Plan-Do-Check-Act (PDCA) Cycle 15.2.3 Continuous Improvement 13 15.2.3 Continuous Improvement 14 15.3 How Quality Relates to IT Project Many IT project managers face pressures to deliver systems and technologies which meet the customer’s ever-changing needs that quality suffers. Many of the problems occur due to the complexity of technology and the rapid pace of change. These dynamic conditions are not likely to abate; in fact, theyre accelerating at an alarming rate. 15 15.3 How Quality Relates to IT Project However, performance can be greatly improved by ensuring that tactical decisions in IT project focus on the quality aspects. Quality improvements in IT project delivery can be achieved by considering user satisfaction, integration and flexibility in the early stage of decision process and reinforcing them throughout the review process. 16 15.3 How Quality Relates to IT Project Although there are no perfect solutions, quality management helps to ensure standards are rigorously enforced and embedded into the thinking of the entire IT project team. One of the challenges for IT project is to tap on the past quality experiences and valuable lessons.  17 15.4 Project Scope & Quality Management Scope and quality are related—but they are in fact two different things. Project scope defines the fundamental “What” of a project. Project quality is a measure of “How Good” the project scope will be when completed. Quality requirements are essentially constraints that are placed on the delivered scope. 18 15.4 Project Scope & Quality Management Project scope and quality management go hand-in-hand in today’s project environment. The difference between scope and quality can be a little confusing for new project managers. 19 Both are concerned with the: Assurance that the project includes all the work required to complete the project successfully. Inclusion in the project of the processes required to ensure that the project will satisfy the needs for which it is undertaken. 15.4 Project Scope & Quality Management 20 The duality of project quality and process quality are united with change control through project scope and quality management. 15.4 Project Scope & Quality Management 21 15.5 Project Quality Management Project quality management encompasses the processes and activities that are used to figure out and achieve the quality of the deliverables of a project. For project management, quality is simply what the customer or stakeholder needs from the project deliverables. 22 15.5 Project Quality Management Project quality management ensures that the project will satisfy the stated or implied needs for which it was undertaken. Key outputs produced as part of project quality management include a quality management plan, quality metrics, and updates to the project management plan and project documents 23 Project quality management involves 3 main processes: Quality Planning (QP) Quality Assurance (QA) Quality Control (QC) 15.5 Project Quality Management 24 15.5 Project Quality Management 25 15.5 Project Quality Management 26 A good quality management plan starts with a clear definition of the goal of the project. These following questions help to identify and define quality requirements, allowing the project team to discuss the approach and plans needed to achieve those goals. 15.6 Quality Planning (QP) 27 The questions: What is the product or deliverable supposed to accomplish? What does it look like? What is it supposed to do? How do you measure customer satisfaction? How do you determine whether or not the project was successful? 15.6 Quality Planning (QP) 28 This includes assessing the risks to success, setting high standards, documenting everything, and defining the methods and tests to achieve, control, predict, and verify success. Be sure to include quality management tasks in the project plan and delegate these tasks to workgroups and/or individuals who will report and track quality metrics. 15.6 Quality Planning (QP) 29 15.6.1 Project Metrics Project Metrics are used to measure, monitor and control the project. They usually show how a project manager is able to estimate schedule and cost. 30 15.6.1 Project Metrics 31 15.6.1 Project Metrics They enable a software project manager to: Minimise the development time by making the adjustments necessary to avoid delays and potential problems and risks. Assess product cost on an ongoing basis & modify the technical approach to improve cost estimation. 32 How is software quality metrics looked at? Process - Measure the efficacy of processes. What works, what doesnt. Code quality Programmer productivity Software engineer productivity Requirements, Design, Testing and all other tasks done by software engineers 15.6.1 Project Metrics 33 Two software programmers are working on two similar modules. Programmers X and Y made 332 and 206 errors respectively during the software development, before releasing to clients. Which programmer do you think has better quality performance? 15.6.1 Project Metrics 34 How is software quality metrics looked at? Software Maintainability Usability And all other quality factors Management Cost estimation Schedule estimation, duration, time Staffing 15.6.1 Project Metrics 35 15.6.2 Sample Quality Metrics Many organisations use charts to keep track of metrics, such as a project dashboard — a graphical screen summarising key project metrics 36 15.6.3 Project Dashboard 37 15.7 Quality Assurance (QA) Quality assurance is the planned and systemic activities implemented in a quality system so that quality requirements for a product or service will be fulfilled. Use quality assurance to make sure the processes are in fact working towards making the project deliverables meet quality requirements. 38 15.7 Quality Assurance (QA) Performing QA is periodically evaluating overall project performance to ensure the project will satisfy the relevant quality standards. Two ways to accomplish this is by using a process checklist and a project audit. 39 15.7 Quality Assurance (QA) QA tests use a system of metrics to determine whether or not the quality management plan is proceeding in an acceptable manner. By using both qualitative and quantitative metrics, project manager can effectively measure project quality with customer satisfaction. 40 15.7 Quality Assurance (QA) These tests or quality audits will help to predict and verify the achievement of goals and identify the need for corrective actions. QA tests will help to map quality metrics to quality goals, allowing status report of quality at periodic project review meetings. 41 15.8 Quality Control (QC) QC involves operational techniques meant to ensure quality standards. This includes identifying, analysing, and correcting problems. While QA occurs before a problem is identified, QC is reactionary and occurs after a problem has been identified and suggests methods of improvement. 42 15.8 Quality Control (QC) QC monitors specific project outputs and determines compliance with applicable standards. It also identifies project risk factors, their mitigation, and looks for ways to prevent and eliminate unsatisfactory performance. 43 15.8 Quality Control (QC) QC can also ensure that the project is on budget and on schedule. Monitoring the project outputs can be done through peer reviews and testing. By catching deliverables that aren’t meeting the agreed upon standards throughout, we’ll be able to simply adjust the direction rather than having to entirely redo certain aspects. 44 15.8.1 Outputs of Quality Control (QC) The outputs of the QC process are: Measurements – the documented results of the activities done in the QC processes (e.g. data gathering, inspection, testing/product evaluations) Change requests – arises due to the recommendation from QC processes, which can affect the components or the project itself. 45 15.8.1 Outputs of Quality Control (QC) The outputs of the QC process are: Updates of project documents - Lessons learned register Issue log – for deliverables not meeting quality requirements Risk register – Update the new risks identified, especially causes of quality variance. 46 Questions? 47 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 16: Project Quality Management – Part 2 1 Learning objectives Understand the tools and techniques for quality control, such as the Seven Basic Tools of Quality, Statistical Sampling, Six Sigma, and Testing Describe how leadership, the cost of quality, organisational influences, expectations, cultural differences, and maturity models relate to improving quality in IT projects Discuss how software can assist in project quality management 2 16.1 Quality Control 7 Tools Check Sheet Scatter Diagram Cause-and-Effect Diagram Pareto Chart Flow Chart Histogram Statistical Process Control (SPC) Chart 3 16.1.1 Check Sheet It is used to easily collect data. Decision-making and actions are taken from the data. 4 16.1.2 Scatter Diagram It is a graphical tool that plots many data points and shows a pattern of correlation between two variables. 5 16.1.3 Cause-and-Effect Diagram It is used to figure out any possible causes of a problem. After the major causes are known, we can solve the problem accurately 6 16.1.4 Pareto Chart It is used to define problems, to set their priority, to illustrate the problems detected, and determine their frequency in the process. 7 16.1.5 Flow Chart It shows the process step by step. 8 16.1.6 Histogram It shows a bar chart of accumulated data and provides the easiest way to evaluate the distribution of data. 9 16.1.7 Statistical Process Control Chart 10 Upper Control Limit Lower Control Limit Mean 16.1.7 Statistical Process Control Chart 11 It provides control limits which are generally three standard deviations above and below average, whether or not a process is in control. Upper control limit Average value Lower control limit Time 3 3 16.1.7 Statistical Process Control Chart 12 Control charts attempt to distinguish between two types of process variation: Common cause variation: which is intrinsic to the process and will always be present. Special cause variation: which stems from external sources and indicates that the process is out of statistical control. 16.1.7 Statistical Process Control Chart 13 The above process is in control, all data points are within the control limits. 16.1.7 Statistical Process Control Chart 14 The 2 points marked by “X” are out of control. 16.1.7 Statistical Process Control Chart 15 How to Implement Quality Project Management Quality Control Every process needs a policeman, so to speak, to make sure that the rules are being following and that the expected quality is being met. Some ways to ensure that the required quality of the deliverables is being achieved is through peer reviews and testing. c 16 16.2 Six Sigma Six Sigma is a highly disciplined process that helps firms to focus on developing and delivering near-perfect products and services. Six Sigma ‘s target for perfection is the achievement of no more than 3.4 defects, errors, or mistakes per million opportunities (DPMO) An opportunity is defined as a chance for non-conformance, or not meeting the required specifications.  16.2 Six Sigma 18 Mean Lower limits Upper limits 3.4 defects/million 99.99966\% capable ±6 2,700 defects/million 99.73\% capable ±3 +6σ -6σ 16.2 Six Sigma 99.73\% => 0.27\% defects = 0.27 / 100 [x 10000] = 2700/1,000,000 =>2700 DPMO 99.99966\% => 0.00034\% defects = 0.00034 / 100 [x 10000] = 3.4/1,000,000 =>3.4 DPMO 16.2 Six Sigma Projects that use Six Sigma principles for quality control normally follow a five-phase improvement process called DMAIC (pronounced de-MAY-ick), which stands for Define, Measure, Analyse, Improve, and Control. 16.2 Six Sigma 21 16.2 Six Sigma 22 How Is Six Sigma Quality Control Unique? How does using Six Sigma principles differ from using previous quality control initiatives? Many people remember other quality initiatives from the past few decades such as Total Quality Management (TQM) and Business Process Reengineering (BPR) ANSWER: Using Six Sigma principles is an organization-wide commitment. 23 16.3 Testing of IT software A unit test is done to test each individual component (often a program) to ensure that it is as defect-free as possible. Unit tests are performed before moving onto the integration test. Integration testing occurs between unit and system testing to test functionally grouped components. It ensures a subset(s) of the entire system works together. 24 System testing tests the entire system as one entity. It focuses on the big picture to ensure that the entire system is working properly. User acceptance testing is an independent test performed by end users prior to accepting the delivered system. It focuses on the business fit of the system to the organisation, rather than technical issues. 16.3 Testing of IT software 25 Watts S. Humphrey, a renowned expert on software quality, defines a software defects as anything that must be fixed before delivery of the program. Testing does not sufficiently prevent software defects because: There are many ways to test a complex system. Users will continue to invent new ways to use a system that its developers never considered. 16.3 Testing of IT software 26 Humphrey suggests that people rethink the software development process to provide no potential defects when entering the system testing phase; developers must be responsible for providing error-free code at each stage of testing. 16.3 Testing of IT software 27 16.4 Improving IT Project Quality Suggestions: Establish leadership that promotes quality Understand the cost of quality Focus on organisational influences and workplace factors that affect quality Follow maturity models 28 16.4.1 Leadership “It is almost important that top management be quality-minded. In the absence of sincere manifestation of interest at the top, little will happen below” Joseph Juran In fact, a large percentage of quality problems are associated with management, not technical issues. 29 Quality doesn’t come free. The Cost of Quality (COQ) is the money spent dealing with issues during the project, and then after the project, to fix any failures. 16.4.2 Cost of Quality c 30 16.4.2 Cost of Quality The cost of quality is the cost of conformance plus the cost of non-conformance. Conformance – Delivering products or services that meet requirements and fitness for use. Non-conformance – Taking responsibility for failures or not meeting quality expectations 31 16.4.2 Cost of Quality 16.4.2 Cost of Quality Cost of conformance Prevention cost – Cost of planning and executing a project so it is error-free or within an acceptable error range. Example: training, quality planning, process studies etc. Appraisal cost – Cost of evaluating processes and their outputs to ensure quality. Example: testing, destructive testing loss and inspections. 33 16.4.2 Cost of Quality Cost of non-conformance Internal failure cost – Cost incurred to correct an identified defect before the customer receives the product. Example: rework and scrap, corrective actions etc. External failure cost – Cost that relates to all defects and problems after the customer has received the product. Example: Returned goods, customer complaint, warranty etc. 34 16.4.3 Organisational Influences, Workplace Factors and Quality Study by Demarco and Lister showed that organizational issues had a much greater influence on programmer productivity than the technical environment or programming languages. Programmer productivity varied by 100 to 1000\% across organisations, but only by 21\% within the same organisation. 35 16.4.3 Organisational Influences, Workplace Factors and Quality Study found no correlation between productivity and programming language, years of experience or salary. A dedicated workspace and a quiet work environment were key factors to improving programmer productivity. 36 16.4.4 Expectations and Cultural Differences in Quality Project managers need to understand and manage the stakeholder expectations. Expectations also vary by: Organisation’s culture Geographic regions 37 16.4.4 Expectations and Cultural Differences in Quality 38 16.4.5 Maturity Models Maturity models are frameworks for helping organisations improve their processes and systems. The Software Quality Function Deployment Model focuses on defining user requirements and planning software projects. 39 16.4.5 Maturity Models Quality function deployment (QFD) is a process used to determine product development characteristics that combine technical requirements with customer preferences. It is done using an integrated matrix known as the “house of quality”.  40 16.4.5 Maturity Models House of quality template 41 16.4.5 Maturity Models House of quality example 42 16.4.6 PMI’s Maturity Model PMI Maturity Model is based on market research surveys sent to more than 30,000 project management professionals and incorporates 180 best practices and more than 2,400 capabilities, outcomes and key performance indicators. Addresses standards for excellence in project, program and portfolio management best practices and explains the capabilities necessary to achieve those best practices 43 15.9 Using Software to Assist in Project Quality Management PM software helps to create Gantt charts and other tools to plan and track work related to quality management. Spreadsheet and charting software helps create Pareto charts, cause and effects diagrams etc. 44 15.9 Using Software to Assist in Project Quality Management Specialised software help manage Six Sigma projects or create quality control charts. Statistical software packages help to perform statistical analysis. 45 15.9 Using Software to Assist in Project Quality Management Bug tracking software: A software where bugs are reported, tracked, and then resolved. Automated testing software: While there is no substitute to human testing to ensure a very stable end product, automated testing can weed out the most common bugs and will make the human testing less stressful. 46 15.9 Using Software to Assist in Project Quality Management Collaboration software: The project manager and team members use to exchange information about the project. Team members can ask for help from other team members when facing challenges on their tasks. Team members building upon code that is written by other team members can inform the latter about errors in their codes. Testers can inform developers about their bugs. 47 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 17: Project Communication Plan 1 Learning objectives Understand the importance of good communications on IT projects Discuss the process of identifying stakeholders and how to create a stakeholder register and stakeholder management strategy Explain the elements of project communications planning and how to create a communications management plan 2 Learning objectives Describe various methods for distributing project information and the advantages and disadvantages of each Recognise the importance of managing stakeholder expectations Understand how reporting performance helps stakeholders stay informed about project progress 3 Learning objectives List various methods for improving project communications, such as managing conflicts, running effective meetings, using e-mail and other technologies effectively Describe how software can enhance project communications management 4 17.1 Importance of Good Communication The importance of communication in project management can’t be stressed enough, because it’s critical to project success. Good communication keeps conflict and confusion from bogging the project down by ensuring key players are aligned on project goals and know exactly what’s expected of them. It also helps build team-wide trust so everyone works better together from project start to finish. 5 Many experts agree that the greatest threat to the success of any project is a failure to communicate. Many project managers say that 90\% of their job is communicating, yet many project managers fail to take the time to plan for project communications. 17.1 Importance of Good Communication 6 The goal of project communications management is to ensure timely and appropriate: Generation, Collection, Dissemination, Storage, and Disposition of project information. 17.1 Importance of Good Communication 7 High-performing businesses communicate more frequently, while low-performing companies usually have poor records of communication. Poor communication contributes to project failure, which could spell massive financial loss to the company. 17.1 Importance of Good Communication 8 17.2 Processes in Project Communications Management There are five (5) main processes: Identifying stakeholders Planning communications Distributing information Managing stakeholders Reporting performance 9 17.2.1 Identifying Stakeholders 10 17.2.1.1 Process of Stakeholder Identification It should be done in a methodical and logical way to ensure that stakeholders are not easily omitted. Not all stakeholders have the same influence or effect on a project, nor will they be affected in the same manner. Can look for stakeholders organisationally, geographically, or by involvement with various project phases or outcomes. 11 17.2.1.1 Process of Stakeholder Identification Another way is to identify those who are directly impacted (e.g. project team members, customer etc.) by the project and those who may be indirectly affected (e.g. adjacent organisation, members of the local community). Directly affected stakeholders will usually have greater influence and impact of a project than those indirectly affected. 12 17.2.1.2 How to Create the Stakeholder Register? A stakeholder register is created in 3 steps: 1. Identifying the Stakeholders 2. Creating the register 3. Analysing stakeholders 13 17.3 Plan Communication A PM communication plan identifies how important information will be communicated to stakeholders throughout the project. It also determines who will be receiving the communication, How those people will receive it, When they’ll receive it, and How often they should expect to receive that information. 14 What must the communication plan include: The purpose or goals of the communication plan Information about stakeholders and their roles The types of information that needed to be shared with stakeholders The methods used to communicate The frequency that each stakeholder would like to receive information 17.3 Plan Communication 15 17.3 Plan Communication An illustration of the Communication Plan 16 A PM communication plan will help because it: Creates written documentation as a reference. Sets expectations on when stakeholders will receive updates. Increases stakeholders’ visibility into the project and its status. Provides opportunity for stakeholders’ feedback; detect issues early & decrease wasted work. Increases productivity during meetings. 17.3 Plan Communication 17 17.4 Distributing Information After answering key questions related to project communications, project managers and their teams must decide the best way to distribute the information. Important considerations for information distribution include the use of technology, formal and informal communications, and the complexity of communications. 18 17.4 Distributing Information Methods of distribution information: Face to Face communication (e.g. meeting, 1-to-1 conversation) Digital Communications (e.g. internet, mobile devices, email) Hard Copy communications (e.g. memo, reports, letters) Conferencing (e.g. online calls and videos, Skype, Zoom, Teams) 19 17.4 Distributing Information Advantages Disadvantages Suitable for group or individual meetings. Can be either formal or informal. Allows for instant feedback. Can be costly if participants have to be brought in from overseas or other places. Need time & resources to facilitate such meetings. Need a staff to ensure minutes are taken & distributed to all participants. 1. Face-to-Face Communications 20 17.4 Distributing Information Advantages Disadvantages Paper-less. Easy access to the Internet, computers & mobile devices. Communication via the Internet is faster, cheaper & easier to retain for record purposes. Can also maintain a project portal or intranet site to share project data. Risk of data loss or unauthorised access to confidential project information by hackers. 2. Digital Communications 21 17.4 Distributing Information Advantages Disadvantages They are visual & textual, can be edited & revised several times to shape them for maximum effect before being distributed. Provide a permanent record of the communication which can be archived for later retrieval. Need storage space. Need paper, which can be cumbersome to file and store in large quantities. Aging documents are susceptible to loss or damage can lead to difficulties in managing project records. 3. Hard Copy Communications 22 17.4 Distributing Information Advantages Disadvantages Can be used to pull a large group together. Allow for real-time video collaboration. Most video conferencing tools provide white boards & other options for document sharing and editing. Time zones - can be difficult to get everyone scheduled in a session depending on where they are in the world. Personal aspect of a conversation is taken away. Conferencing etiquette may not be observed by some users (e.g. late, not paying attention. 4. Conferencing 23 17.4 Distributing Information Distribute information through meetings: Set the agenda and distribute it among team members before the start of the meeting so that everyone is aware of it. Appoint someone to take meeting minutes. Minutes are important documents for referring to project updates & status reports at any time during the course of the project. Distribute project reports so that all team members are informed on the project status. 24 17.4 Distributing Information Barriers for distributing project Information through meetings: Late start of meetings Dominating speakers Deviating from agenda 25 17.4.1 Number of Communications Channels There is a simple formula for determining the number of communications channels as the number of people involved in a project increases. We can calculate the number of communications channels as follows: 26 17.4.1 Number of Communications Channels 27 17.5 Managing Stakeholders Project sponsors can usually rank scope, time, and cost goals in order of importance and provide guidelines on how to balance the triple constraint. This ranking is shown in an Expectation Management Matrix, which can help clarify expectations 28 17.5 Managing Stakeholders 29 17.5 Managing Stakeholders 30 17.5.1 Importance of Managing Stakeholder Expectations Managing stakeholders is communicating with stakeholders & managing their expectations & concerns for the purpose of meeting the stakeholder needs, addressing issues, resolving conflict situations, & achieving the project goals. The process is based on holding communications & taking change requests to gather feedback & make updates to project documentation. 31 17.5.1 Importance of Managing Stakeholder Expectations When expectations of the stakeholders are actively managed, the project gets a higher likelihood for success. The project manager should continuously negotiate & influence desires of the stakeholders to achieve strict conformity of project goals & expectations & maintain the project management effort. 32 17.6 Reporting Performance Performance reporting keeps stakeholders informed about how resources are being used to achieve project objectives. Work performance information and measurements, forecasted completion dates, quality control measurements, the project management plan, approved change requests, and deliverables are all important inputs to performance reporting. Two key outputs of performance reporting are performance reports and forecasts. Performance reports are normally provided as status reports or progress reports. 33 17.7 Improving Project Communication The following are some ways: Managing Conflicts Running Effective Meetings Use Online Communication Tools when Necessary Use a RACI Chart Pay attention to non-verbal communication 34 Conflicts can negatively affect the productivity of the group. The PM should : Listen for the underlying messages during the conversations. Personal agendas will create conflict if not carefully managed. Seek to understand where each person is coming from, and encourage participants to expand on their view so others can understand. Encourage all to listen and respect to the ideas or opinions of each person without passing judgment. 17.7.1 Managing Conflicts 35 17.7.1 Managing Conflicts Blake and Mouton (1964) delineated five (5) basic modes for handling conflicts: Each mode can be rated as high, medium, or low on two dimensions: importance of Task (T), and importance of Relationship (R) between the people having the conflict. 36 Confrontation or problem‐solving: Directly face a conflict (High T/High R) Compromise: Use a give‐and‐take approach (Medium T/Medium R) Smoothing: De‐emphasise areas of differences and emphasise areas of agreement (Low T/High R) Forcing: The win‐lose approach (High T/Low R) Withdrawal: Retreat or withdraw from an actual/potential disagreement (Low T/Low R) 17.7.1 Managing Conflicts 37 Confrontation or problem‐solving Compromise Smoothing Forcing Withdrawal 17.7.1 Managing Conflicts 38 Sadly, not many people know how to run meetings effectively and end up wasting time and not achieving much. If done properly, meetings can yield great results keeping everyone informed about progress and bottlenecks in a project. To conduct productive meetings, include an agenda, updated status reports, and the next course of action followed by a quick summary. Encourage others to voice their ideas and opinions in meetings to have a two-way dialogue and effective communication. 17.7.2 Running Effective Meetings 39 Face-to-face communication is nice, but not always possible, especially in the case of distributed teams (e.g. work from home) Online communication tools like Skype and Zoom give you the opportunity to bring a group of people together for a discussion in a more personalised way than that which is allowed by e-mail. 17.7.3 Use Online Communication Tools 40 RACI (“Responsible, Accountable, Consulted, and Informed.”) chart helps to determine who needs to be involved in which lines of communication. It helps to cut out unnecessary communication that may be inhibiting workflow. 17.7.4 Use a RACI Chart 41 17.7.4 Use a RACI Chart 42 17.7.4 Use a RACI Chart 43 17.7.5 Non Verbal Communication Pay attention to non-verbal communication. Effective communication isn’t just verbal but also non-verbal. In fact, more than half of the communication happens through our body language, actions, and gestures. 44 A big part of the PM role is making sure that everyone is aware of their personal responsibilities. It would be impossible to always check in with every team member to make sure their tasks are progressing as planned, & then to share that progress with the rest of the team. Project management software keeps the entire team on the same page throughout a project & streamline communication for a more efficient workflow. 17.8 Use Software to Enhance Project Communication Management 45 Questions? 46 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 18: Project Risk Management 1 Learning objectives Understand what risk is and the importance of good project risk management. Discuss the elements involved in risk management planning and the contents of a risk management plan. List common sources of risks on IT projects. Describe the process of identifying risks. 2 Learning objectives Explain the quantitative risk analysis process and how to apply decision trees, simulation, and sensitivity analysis to quantify risks. Discuss what is involved in monitoring and controlling risks. Describe how software can assist in project risk management. 3 PMI defines a project risk as an uncertainty that can have a negative or positive effect on meeting project objectives Note that some people only view risks as negative and call positive risks opportunities 18.1 What is Project Risk? 4 The goal of project risk management can be viewed as minimising potential negative risks while maximising potential positive risks. Known risks are risks that the project team have identified and analysed. Known risks can be managed proactively. Unknown risks, are risks that have not been identified and analysed, they cannot be managed. 18.1 What is Project Risk? 5 The main planning processes are: Planning risk management, Identifying risks, Performing qualitative risk analysis, Performing quantitative risk analysis, Planning risk responses. 18.2 Risk Planning Processes 6 18.2 Risk Planning Processes 7 A risk management plan documents the procedures for managing risk throughout the life of a project The general topics that a risk management plan should address include: Methodology for risk management, Roles and responsibilities, Budget and schedule estimates for risk-related activities, Risk categories, Probability and impact matrices, Risk documentation. 18.3 Planning Risk Management 8 18.3 Planning Risk Management 9 18.3 Planning Risk Management 10 18.3.1 Sample Risk Management Plan 1. Methodology The project team will review data available from the Phase I project and past training programs within Global Construction. They will also review information related to external projects similar to this one. The team will use several tools and techniques, including brainstorming, surveys, and risk-related checklists to assist in risk management. 11 2. Roles and Responsibilities The project manager will be responsible for leading the team and other stakeholders in performing risk-related activities. As detailed risk-related activities and deliverables are determined, the project manager will delegate those tasks to others as appropriate. 18.3.1 Sample Risk Management Plan 12 3. Funding and Timing As specific risk-related activities and deliverables are determined, budget and schedule information will be provided. Protocols for the application of contingency and management reserves will be reviewed with the project sponsor. 18.3.1 Sample Risk Management Plan 13 4. Risk Categories General categories and sub-categories for risk on this project include: Business risks (suppliers & cash flow), Technical risks (course content, hardware, software, & network), Organisational risks (executive support, user support, supplier support, & team support), Project management risks (estimates, communication, & resources). 18.3.1 Sample Risk Management Plan 14 5. Risk Probability and Impact Risk probability and impact will initially be estimated as high, medium, or low based on expert judgment. High means a 75-100\% probability or impact, low means 0-25\%, and medium is in between. If more advanced scoring is needed, the project team will determine an appropriate approach. 18.3.1 Sample Risk Management Plan 15 6. Stakeholder Risk Appetite Measureable risk thresholds for each project objective will be documented for key stakeholders. These thresholds determine the acceptable overall project risk exposure and influence the probability and impact ratings. 18.3.1 Sample Risk Management Plan 16 7. Risk Documentation All risk-related information will be summarised in a risk register. Detailed documentation will be available in a secure area on the project website. 18.3.1 Sample Risk Management Plan 17 18.4 Identifying Risks You cannot manage risks until you identify them. Identifying risks involves determining which risks are likely to affect a project and documenting the characteristics of each. The main outputs of this process are a risk register and a risk report. 18 Risk events refer to specific, uncertain events that may occur to the detriment or enhancement of the project. Negative risk events include the performance failure of a product produced as part of a project, delays in completing work as scheduled, increases in estimated costs, supply shortages, litigation against the company, and strikes (+ political turmoil, natural disasters). 18.4 Identifying Risks 19 Positive risk events include completing work sooner than planned or at an unexpectedly reduced cost, collaborating with suppliers to produce better products, and obtaining good publicity from the project. We can chart the probability and impact of risk events on a matrix. 18.4 Identifying Risks 20 Overall project risk is the effect of uncertainty on the project as a whole. Contents of a risk report include sources of overall project risk and summary information on risk events, such as number of risks, distribution across risk categories, metrics, and trends. The risk report is developed progressively during the entire risk planning processes. 18.4 Identifying Risks 21 Interviewing is a fact-finding technique for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions. Interviewing people with similar project experience is an important tool for identifying potential risks. Brainstorming is a technique by which a group attempts to generate ideas or find a solution for a specific problem by amassing ideas spontaneously and without judgment. 18.4 Identifying Risks 22 Mid-project change in scope. Changes in scope are frequent in IT projects. Suggestions for radical change can arise after the project implementation has started. Very unpleasant when it happens in the middle of the project. Choices are either to reject the changes or to trash the work done up to that point and implement the new requests.  18.4.1 Risks in IT Project 23 Going behind schedule due to unforeseen complications. Unforeseen technical complications can turn the project upside down. Surprises are still possible despite knowing the technologies well. Unfortunately, little can be done to avoid this common IT project risk but pray that it doesn’t happen to you.  18.4.1 Risks in IT Project 24 3. Technical inability for a given feature to be implemented. Technical complications lead to project delays and can affect the scope. If a given functionality can’t be implemented due to technical inability, the easiest solution is to skip this functionality but when other components depend on it, then it is not wise to do so. Having experienced technical people can lower the risk of unforeseen technical limitations but this risk is always present.  18.4.1 Risks in IT Project 25 4. No problems are reported. When everything is blissfully calm and no problems are reported, this should be worrying. It could mean that there are no problems to report, which is extremely rare, or that problems exist but nobody dares to report. Sometimes even brave guys and gals are cautious to be the messenger to report a severe problem as they know the “shoot the messenger” approach by the upper management. 18.4.1 Risks in IT Project 26 5. A key employee leaves. When a key employee quits, it can really shatter a project. Employees quit due to various reasons and generally they do serve a notice period. When a key employee is leaving soon, there is a need to rearrange the team. If there is no suitable person to take over the tasks of the leaving person, this can have serious disruptions. 18.4.1 Risks in IT Project 27 18.4.2 Risk Register A risk register is a document that contains the results of various risk management processes and is often displayed in a table or spreadsheet format. It is a tool for documenting potential risk events and related information. 28 It includes: An identification number for each risk event A rank for each risk event (usually high, medium, or low) The name of the risk event A description of the risk event The category under which the risk event falls The root cause: The real or underlying reason a problem occurs Triggers: Indicators or symptoms of actual risk events Potential responses to each risk event The risk owner, or person who will own or take responsibility The probability of the risk event occurring The impact to the project if the risk event occurs The status of the risk event 18.4.2 Risk Register 29 18.4.3 Risk Register Template 30 18.4.4 Risk Register Example Note: The components in the risk register differ in various projects. 31 18.5 Performing Qualitative Risk Analysis Results in prioritising risks as High, Medium, or Low. A probability and impact matrix is a good technique to help decide which risks are most important on a project. 32 Probability and Impact Matrix. 18.5 Performing Qualitative Risk Analysis 33 See next slide for the mapping of Risks 1 to 5. For illustration: 45 24 36 64 72 18.5 Performing Qualitative Risk Analysis 34 Probability and Impact Matrix. 18.5 Performing Qualitative Risk Analysis 35 18.6 Performing Quantitative Risk Analysis Large, complex projects involving leading-edge technologies often require extensive quantitative risk analysis. Data gathering often involves interviewing experts and collecting probability distribution information. 36 Quantitative risk analysis and modeling techniques include : Decision tree analysis, Simulation (e.g. Monte Carlo analysis) Sensitivity analysis. 18.6 Performing Quantitative Risk Analysis 37 For quantitative risk analysis, decision tree analysis is an important technique to understand. Expected Monetary Value (EMV) analysis is the foundational concept on which decision tree analysis is based. 18.6.1 Decision Tree Analysis 38 The formula for EMV of a risk is this: Expected Monetary Value (EMV) = Probability of the Risk (P) * Impact of the Risk (I) or simply, EMV = P * I 18.6.1 Decision Tree Analysis 39 EMV calculates the average outcome when the future includes uncertain scenarios — positive (opportunities) or negative (threats). Opportunities are expressed as positive (+) values, while threats have negative (-) values. Both the values will be considered by adding them together. 18.6.1 Decision Tree Analysis 40 Example:  For a work package, the negative risk (or threat) has a 10\% probability with an estimated loss of $50,000, while the positive risk (opportunity) has a 15\% probability with a potential return of $30,000. Should you execute the work package? Answer: EMV for the threat = P * I = 10\% * (-$50,000) = -$5000 EMV for the opportunity = P * I = 15\% * (+$30,000) = $4,500 Now, the EMV = – $5,000 + $4,500 = -$500 18.6.1 Decision Tree Analysis 41 18.6.1 Decision Tree Analysis Legend: 42 18.6.1 Decision Tree Analysis EMV for Chance Node 1, (the 1st circle): The net path value for the prototype with 70\% success = Payoff – Cost: = +$500,000 – $100,000 = +$400,000 The net path value, for the prototype with a 30\% failure = Payoff – Cost: = -$50,000 – $100,000 = -$150,000 EMV of chance node 1 = [70\% * (+$400,000)] + (30\% * (-$150,000)] = +$280,000 – $45,000 = +$235,000 43 18.6.1 Decision Tree Analysis EMV for Chance Node 2 (the 2nd circle): The net path value for the prototype with a 20\% success = Payoff – Cost: = +$500,000 – $0 = +$500,000 The net path value for the prototype with 80\% failure = Payoff – Cost: = -$250,000 – $0 = -$250,000 EMV of chance node 2 = [20\% * (+$500,000)] + (80\% * (-$250,000)] = +$100,000 – $200,000 = -$100,000 44 18.6.1 Decision Tree Analysis 45 18.7 Planning Risk Responses Negative risk responses Description Risk acceptance Passive acceptance: No action, and deal with the risks as they occur Active acceptance: Establish a contingency reserve to deal with the risk Risk avoidance Eliminate the threat entirely; Remove the causes that are creating risks Risk transference Shift some or all ownership of a threat to 3rd party who can better manage & control it Risk mitigation Reduce the impact and/or probability of threat 46 18.7 Planning Risk Responses Positive risk responses Description Risk acceptance Not actively pursuing, but willing to take the opportunity when it occur Risk exploitation Eliminate the uncertainties to ensure or increase the cause for the opportunity to happen Risk enhancement Increasing the probability and/or impact of the opportunity Risk sharing Allocate some or all the ownership of the opportunity to a 3rd party who can capture and take advantage of it 47 18.8 Monitor & Control Risks Identified risks may not materialise, or their probabilities of occurrence or loss may diminish. Previously identified risks may be determined to have a greater probability of occurrence or a higher estimated loss value. 48 18.8 Monitor & Control Risks New risks will be identified as the project progresses. Newly identified risks need to go through the same process as those identified during the initial risk assessment. A redistribution of resources devoted to risk management may be necessary because of relative changes in risk exposure. 49 18.9 How Software Assist Risk Management PM software can help identify areas of new risk while a project plan is being executed because it has features that can highlight the effect on future tasks of what has already happened. It is a good tool for managing project schedule and budget. 50 18.9 How Software Assist Risk Management When entering actual work effort expended so far on a task, the software can update its remaining duration and the new expected end date. It can also automatically recalculate the expected start and finish dates for the remaining tasks in the project plan. It analyses the final end date or any critical milestones or deadlines to see if they have been impacted or if there are any additional risks that should be analysed. 51 18.9 How Software Assist Risk Management When resource availability changes or a resource is pulled from the project, the software has a filter to determine what future tasks will be affected. By changing the percentage availability of the resource in the software, we can recompute the start and finish dates for tasks involving the resource and identify any additional risks introduced by this change of resource availability. 52 Questions? 53 IT Project Management Diploma in Information Technology Lesson 19: Overall Revision – Part 1 Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. 1 IT Project Management Diploma in Information Technology Topic 1: Introduction to Project Management Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. 2 1.2.1 Characteristics of a project It has an established objective. It is temporary with a defined lifespan (i.e. beginning and an end date). It involves several departments and professionals. It is typically unique or has never been done before. It has specific time, cost and performance requirements. 3 1.4 What is project management? Project Management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. 4 1.5 Triple constraints 3 main areas need to be managed in a project: Cost: How much money is to be spent? Time: How long the project will run before completion? Scope: What deliverables are to be achieved? 5 1.6 Project management framework Project management framework (PM framework) is a subset of tasks, processes, tools and templates used in combination by the management team to get insight into the major structural elements of the project in order to initiate, plan, execute, control, monitor, and terminate the project activities throughout the management life-cycle. PM framework allows using various methodologies and approaches to plan and schedule the major phases of the life-cycle. 6 1.6 Project management framework By Alphamu57 - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=3976594 7 1.7 Project, program & portfolio management A project may be managed in three separate scenarios: as a stand-alone project (outside of a portfolio or program), within a program, or within a portfolio. Multiple projects may be needed to accomplish a set of goals and objectives for an organisation. In those situations, projects may be grouped together into a program. 8 1.7 Project, program & portfolio management A program is defined as a group of related projects, subsidiary programs, and program activities managed in a coordinated manner to obtain benefits not available from managing them individually. Example: Managing the development of all e-commerce projects together can be a program. Program = Sub-programs + Projects and sub-projects. 9 1.7 Project, program & portfolio management A portfolio is defined as projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives. Example: Managing all types of website development related projects and programs can be a portfolio while managing all mobile Apps related projects and programs can be another portfolio. Portfolio = Sub-portfolios + Programs and sub-programs + Projects and sub-projects. 10 1.7 Project, program & portfolio management 11 1.8 Roles of a project manager 12 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 2: IT projects and the organisation 13 2.1.1 What is a system approach? System management addresses the business, technological, and organisational issues associated with creating, maintaining, and making changes to a system. A system approach takes into account the total environment the project exists and impacts. 14 An illustration Business Cost of system implementation? Cost to administer the system? Would it increase sale & productivity? Technological Which order tracking system? The network requirement? The DB management system? Organisational Time saved after Implementation? Will the management support? Who will be the users? Successful project 15 2.2.1 Functional organisation structure 16 2.2.2 Project organisation structure 17 2.2.3 Matrix organisation structure 18 19 2.4 Project life cycle 20 2.5.1 Globalisation Issues Communications Trust Common work practices Tools Suggestions Employ greater project discipline Think global but act local Keep project momentum going Use newer tools and technology 21 2.5.2 Outsourcing Organisations stay competitive by using outsourcing to their advantage, such as finding ways to reduce costs. Their challenge is to make strategic IT investments with outsourcing by improving their enterprise architecture to ensure that IT infrastructure and business processes are integrated and standardised. 22 2.5.3 Virtual teams Advantages: Increasing competiveness and responsiveness Lowering costs Increased expertise and flexibility Increased work/life balance Disadvantages: Isolation & Interpersonal Relationships Communication Problems Dependence on Technology 23 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 3: Project Management Process Groups 24 3.1 PM Process Groups 25 3.1.1 Initiation Process Group It is good practice to lay the following groundwork or pre-initiation tasks for a project before it officially starts. Determine the scope, time, and cost constraints for the project. Identify the project sponsor. Select the project manager. Develop a business case for a project. Meet with the project manager to review the process and expectations for managing the project. Determine if the project should be divided into two or more smaller projects. 26 3.1.2 Planning Process Group Planning processes include devising and maintaining a workable scheme to ensure that the project addresses the organisation’s needs. Projects include several plans, such as: Scope management plan Schedule management plan Cost management plan Procurement management plan 27 3.1.3 Execution Process Group It involves taking the necessary actions to complete the activities in the project plan. The products of the project are created during project execution, and it usually takes the most resources to accomplish this process. Executing processes include coordinating people and other resources to carry out the various plans and create the products, services, or results of the project or phase. 28 3.1.4 Monitoring and Controlling Process Group Measure progress against all plans Take corrective actions when there is deviation Ensure that progress meet project objectives Ensure that the project meets stakeholders’ needs and quality standards Reporting performance to stakeholders Stakeholder can identify any necessary changes to keep project on track 29 3.1.5 Closing Process Group It involves gaining stakeholder and customer acceptance of the final products and services and then bringing the project or project phase to an orderly end. It includes verifying that all of the deliverables are complete, and it often includes final project report and presentation. 30 3.1.6 Interactions among the Process Groups 31 3.2 PM Knowledge Areas (KA) 32 3.2 PM Knowledge Areas (KA) 33 3.2 PM Knowledge Areas (KA) 34 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 4: Project Integration Management – Part 1 35 4.1 Project Integration Framework Initiating Planning Executing Monitoring & Controlling Closing Scope Scope Schedule Schedule Cost Cost Quality Resource Risk Risk Communication Procurement Stakeholder Integration 36 4.1.1 Project integration management It involves coordinating all the other project management knowledge areas throughout a project’s life cycle. This integration ensures that all the elements of a project come together at the right times to complete a project successfully. 37 4.3.1 Benefit Measurement Methods 38 4.3.1 Benefit Measurement Methods 1. Benefit/Cost Ratio It gives us whether the benefits of the project are higher than the costs. Projects that have a higher Benefit-Cost Ratio are generally chosen over others. 2. Economic Model It is the performance metric that calculates the worth-creation of the organisation while defining the return on capital. It is also defined as the net profit after the deduction of taxes and capital expenditure. 39 4.3.1 Benefit Measurement Methods 3. Scoring Model It is an objective technique: the project selection committee lists relevant criteria, weighs them according to their importance and their priorities, then adds the weighted values. Once the scoring of these projects is completed, the project with the highest score is chosen. (See examples on the next 2 slides) 4. Payback Period It is the duration that the project will recover the money invested with its revenues. 40 Scoring Model 41 4.3.1 Benefit Measurement Methods 5. Net Present Value (NPV) This gives us the today’s value of the sum of all transactions (inbound and outbound) that will happen in future. When picking a project, one with a higher NPV is preferred. The advantage of considering the NPV over the Payback Period is that it takes into consideration the future value of money.  6. Discounted Cash Flow It is well-known that the future value of money will not be the same as it is today. For example, $20,000 won’t have the same worth ten years from now. Therefore, during calculations of cost investment and ROI, be sure to consider the concept of discounted cash flow.  42 4.3.1 Benefit Measurement Methods 7. Internal Rate Of Return (IRR) The IRR indicates how many percent of the investment will turn back as revenue in future. It is used to select the project with the best profitability; when picking a project, the one with the highest IRR is chosen. 8. Opportunity Cost It is the cost that is given up when selecting another project. During project selection, the project that has the lower opportunity cost is chosen. 43 4.4 Project charter The project charter is the 1st formal project document and generally signed & approved by the project sponsor. Provides a condensed, summary-level overview of the project. Allows stakeholders to document the agreed upon scope and objectives, approach, and major deliverables of the project. 44 45 4.5 Develop Project Management Plan Source: PMBOK, 6th Edition, pg 82. 46 4.6 Project Management Plan Content Scope management plan: How the scope will be defined, developed, monitored, controlled, and validated. Requirements management plan: How the requirements will be analysed, documented, and managed. Schedule management plan: Establishes the criteria and the activities for developing, monitoring, and controlling the schedule. Cost management plan: How the costs will be planned, structured, and controlled. Quality management plan: How an organisation’s quality policies, methodologies, and standards will be implemented in the project. 47 4.6 Project Management Plan Content Resource management plan: Provides guidance on how project resources should be categorised, allocated, managed, and released. Communications management plan: How, when, and by whom information about the project will be administered and disseminated. Risk management plan: How the risk management activities will be structured and performed. Procurement management plan: How the project team will acquire goods and services from outside of the performing organisation. Stakeholder engagement plan: How stakeholders will be engaged in project decisions and execution, according to their needs, interests, and impact. 48 4.7 Approaches for Project Management Plan Data-gathering techniques: Brainstorming: It is frequently used when developing the project management plan to gather ideas and solutions about the project approach. Attendees include the project team members although other subject matter experts or stakeholders may also participate. Checklists: Many organisations have standardised checklists available based in their own experience or use checklists from the industry. A checklist may guide the project manager to develop the plan or may help to verify that all the required information is included in the project management plan. 49 4.7 Approaches for Project Management Plan Data-gathering techniques: Focus groups: They bring together stakeholders to discuss the project management approach and the integration of the different components of the project management plan. Interviews: They are used to obtain specific information from stakeholders to develop the project management plan or any component plan or project document. 50 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 5: Project Integration Management - Part 2 51 5.1 Project Execution It involves taking the necessary actions to complete the activities in the project plan. The products of the project are created during project execution, and it usually takes the most resources to accomplish this process. Executing processes include coordinating people and other resources to carry out the various plans and create the products, services, or results of the project or phase. 52 5.2 Relationship between project execution & planning 53 5.3 Tools & Techniques in Managing Project Execution There are both manual & automated tools in project management. Commonly used techniques are: PERT – Project Evaluation & Review Technique CPM – Critical Path Method Gantt Chart 54 5.3.1 PERT It uses 3 types of time estimates: Optimistic time – Best possible time for completion of the activity. Most likely time – Highest probabilistic time for completion of the activity. Pessimistic time – Longest time for completion of the activity. 55 5.3.1 PERT The weighted average is calculated by the following formula: Expected Time = [Optimistic + (4 x Most Likely) + Pessimistic] / 6 56 5.3.2 CPM Critical path is the path with the longest duration in a project. It determines the total duration required for completion of the project. CPM is a deterministic model that is both time & cost-driven. The amount of time that activity can be delayed without delaying the project is called as slack time. 57 5.3.2 CPM The critical path of the project determines the following four parameters for each activity, which are calculated using the expected time for relevant activities: ES – Earliest Start EF – Earliest Finish LS – Latest Start LF – Latest Finish 58 5.3.3 PERT & CPM PERT & CPM help in the following: Identifying the critical activities (no slack) Identifying the non-critical activities (with slacks) Establishing project completion timelines. Deriving activities/tasks interdependencies Identifying resource requirements & limitations. 59 5.3.4 Gantt Chart Used to show calendar time task assignments in days, weeks or months. Uses graphic representations to show start, elapsed, and completion times of each task within a project. Ideal for tracking or monitoring progress. 60 5.3.4 Gantt Chart 61 5.6 Change Control System (CCS) Technically there are FOUR (4) change control systems: Scope Change Control System: This is the most common, as most project changes affect the project scope first and foremost. Cost Change Control System: When a scope change request is entertained then a corresponding concern is the cost of the scope change. It can be affected without changing the project scope when we consider how the cost of materials may change. 62 5.6 Change Control System (CCS) Schedule Change Control System: Scope changes can affect the project schedule as more deliverables may equate to more time needed to create them. Schedule changes can happen without affecting the project scope. Consider a delay by a supplier to ship the materials needed in a project. Contract Change Control System: Contracts typically have provisions for allowing changes or additional items to be entered into the contracted work, but not always. Changes to the project scope may directly affect the contracted work so the contract change control system is enacted. 63 5.7 Closing Process It involves gaining stakeholder and customer acceptance of the final products and services and then bringing the project or project phase to an orderly end. It includes verifying that all of the deliverables are complete, and it often includes final project report and presentation. 64 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 6: Project Scope Management - 1 65 6.1 Project Scope Management Project scope refers to all the work involved in creating the products of the project and the processes used to create them. Deliverables can be product-related, such as a piece of hardware or software, or process-related, such as a planning document or meeting minutes. 66 6.1.1 Why Do We Manage Scope? Its part of the Triple constraints Scope impact on the other two constraints TIME COST SCOPE Quality 67 6.1.2 Gold Plating Saying “No” to additional work not in the charter Preventing extra work/Gold plating* Gold plating: It means delivering more than customer’s requirement. It may result in increased cost and less chances of project success, hence it is considered as a bad practice. 68 6.1.3 Product vs Project Scope 69 1 2 3 4 5 6.2 Project Scope Management – 5 Main Processes 70 A well-composed project scope statement generally consists of these 8 areas: 1) Justification Reasons why the project is created. Important for stakeholders to understand project justification. 2) Product description All known characteristics of a result, product, service that will be produced. 3) Acceptance criteria Conditions that must be fulfilled before the acceptance of project deliverables. 6.3 Project Scope Statement 71 4) Deliverables (or objectives) What will be produced (result, product, service). Important for stakeholders to agree upon. 5) Exclusions Statements or any elements not included in a project. They help to prevent scope creep.  6) Constraints Any limitations a project faces due to various reasons: resources, funding, time etc. 6.3 Project Scope Statement 72 7) Assumptions They bring some uncertainties and risks to a project and need to be carefully analysed. All stakeholders should be aware and minimise them. 8) Cost estimates The cost estimates needed to complete a project. They may be unknown at first, but it is important to know accurate costs. 6.3 Project Scope Statement 73 Scope creep in project management happens when additional features, functions, requirements or work are added beyond the agreed-upon scope with no consideration to impacts on time, cost and resources or stakeholders/customer approval.  6.4 Scope Creep 74 Occurs due to: Unclear scope definition. Poor management of scope and requirements Not following the change management Inconsistent collection of project requirements Lack of sponsorship or stakeholder involvement Longer duration of a project, hence greater chance for scope creep. 6.4 Scope Creep 75 Tips to control scope creep: Set well defined scope and requirements Set clear, measurable objectives and focus on the deliverables Establish an effective change management process and follow it diligently Provide project updates and engage sponsor and stakeholders regularly Break down projects into smaller and manageable sub-tasks  6.4 Scope Creep 76 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 7: Project Scope Management - 2 77 78 Work Breakdown Structure (WBS) breaks a complex project into smaller tasks that are more manageable and approachable. It is an important project management document that integrates scope, cost and schedule baselines ensuring that project plans are aligned. 7.1 Work Breakdown Structure (WBS) 79 7.2 Methods of creating WBS Using guidelines The analogy approach The top-down approach The bottom-up approach The mind-mapping approach 80 Guidelines exist to provide form, content, and a project framework that is based upon meeting certain criteria and standards of the organization” (Schwalbe, 2011). Every company has own guidelines to obtain the best possible outcome of the project. 7.2.1 Using Guidelines 81 This technique uses a repository of WBS’s on file that already worked for similar kind of project in past. The project manager can review a previous project WBS for a new project at a new company, because it is the same method for all projects. 7.2.2 The Analogy Approach 82 The WBS is derived by decomposing the overall project into sub-projects or lower-level tasks. This decomposition is based on general project characteristics and not on detailed design elements. The decomposition continues until the tasks or work units reach a level where they can be accurately defined and estimated. 7.2.3 The Top-down Approach 83 Team members first identify as many specific tasks related to the project as possible. They then aggregate the specific tasks and organize them into summary activities, or higher levels in the WBS. Can be quite chaotic if the tasks identified by the team are not all at the same level. 7.2.4 The Bottom-up Approach 84 Mind minding describes the process of brainstorming by creating a branching structure that diagrams the thoughts and ideas associated with the project. Tasks are written into non-linear, branching format and then create the WBS structure. Once completed, the mind mapping can be used in developing a top-down or bottom-up approach WBS. 7.2.5 Mind-mapping Approach 85 7.2.5 Mind-mapping Approach 86 7.2.6 WBS Dictionary A WBS dictionary is a document that describes detailed information about each WBS item. It’s format can vary based on project needs. It might be appropriate to have just a short paragraph describing each work package. The approved project scope statement and its associated WBS and WBS dictionary form the scope baseline. Performance in meeting project scope goals is based on this scope baseline. 87 7.3 Scope Verification Scope verification involves formal acceptance of the completed project scope by the stakeholders. This acceptance is often achieved by a customer inspection and then sign-off on key deliverables. 88 7.3 Scope Verification 89 7.4 Scope Control The goal of scope control is to influence the factors that cause scope changes, assure changes are processed according to procedures developed as part of integrated change control, and manage changes when they occur. You cannot do a good job of controlling scope if you do not first do a good job of collecting requirements, defining scope, and verifying scope. 90 7.4 Scope Control 91 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 8: Project Schedule Management 92 The 6 processes of project time management 1 2 3 4 5 6 93 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 9: Project Schedule Management 94 8.2.3 Task Dependencies 95 8.2.3 Task Dependencies 96 8.3 Tools and Techniques for Activity Duration Estimating Six (6) tools and techniques: 1. Expert Judgment 2. Analogous Estimating 3. Parametric Estimating 4. Three Point Estimates 5. Reserve analysis 6. Group Decision Making Techniques 97 8.3.1 Expert Judgement Using experts who have knowledge of the related field and experience in estimating activity duration. It can be provided by a member or multiple members of the project management team. 98 8.3.2 Analogous Estimating It analyses a similar project completed in the past and makes a rough estimation for the current project by using the past project’s data. It makes duration calculations easier and faster but with less accuracy. It is useful when little information about the project is known, and management needs quick answers. 99 8.3.3 Parametric Estimating It is similar, but more accurate, than the analogous estimation. To use it, multiply the number of units you need by the time it takes to produce the units. Historical information about similar activities is needed to complete the estimate. The method is scalable. 100 8.3.3 Parametric Estimating For example, if the historical data shows that it takes 1 person an hour to produce 1 unit, we can reasonably estimate that 3 units can be completed by 3 workers within an hour. When this method is used, its important to account for all tasks that impact the activity. (For example, if the workers spend part of the time preparing materials, account for that time in the estimates). 101 8.3.4 Three Point Estimates Estimate Description Most Likely Estimate (Tm) This is the activity duration for most cases. Pessimistic Estimate (To) This is the activity duration in the worst-case scenario. Optimistic Estimate (Tp) This is the activity duration in the most favorable case. 102 8.3.4 Three Point Estimates Two popular formula: 1. Triangular distribution: Te = (To + Tm + Tp ) / 3 2. Beta (or PERT): Te = (To + 4Tm + Tp) / 6 103 8.3.4 Three Point Estimates For Activity A: To = 4 hours , Tm = 8 hours , Tp = 16 hours Triangular Distribution: Te = (4 + 8 + 16 ) / 3 = 28 / 3 = 9.3 hours Beta Distribution (PERT): Te = [4 + 4(8) + 16] / 6 = 52 / 6 = 8.7 hours 104 8.3.5 Reserve Analysis It is considered as a contingency reserve. Once the schedule for each activity is fixed, contingency reserve duration can be added. The contingency reserve duration can be changed depending on the situation. It helps the project team to manage schedule risks to minimise their impacts. 105 8.3.6 Group Decision Making Techniques Group decision making techniques can be used to estimate the duration of each activity. In this technique, the team members or experts are consulted to provide the best estimates for the project activities. 106 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 9: Project Schedule Management 107 CPM consists the following SIX (6) steps: Define the project scope/goals and prepare the work breakdown structure (WBS). Define the sequential or parallel relationships among the activities. Present the network diagram with all the activities connected. 9.2 Critical Path Method 108 For each activity, assign the time and/or cost estimates. Determine the critical path, the path with the longest time through the network. Use the network diagram to monitor and control the project progress. 9.2 Critical Path Method 109 9.2.2 Network diagram Activity on Activity Node (AON) Meaning (1) A B C (2) A C B When A is done, it is followed by B and then C. Both A and B must be done before starting C. 110 Activity on Activity Node (AON) Meaning (4) A B C D A and B must be done before C and D can start. (3) B A C When A is done, B and C can start. 9.2.2 Network diagram 111 Activity on Activity Node (AON) Meaning (6) A C D B B and C can start when A is done. D can only start when both B and C are done. (5) A B C D C can only start when both A and B are done; D can start when B is done. 9.2.2 Network diagram 112 9.2.3 Critical Path Analysis The critical path is the longest duration path through the network. The critical path determine the minimum time in which the project can be done. There shall be no delay in critical path activities, else the project will be delayed. 113 9.2.3 Critical Path Analysis 114 Earliest start time (EST) is the earliest possible time at which an activity can start. It is calculated by moving from first to last event in a network diagram.  Earliest finish time (EFT) is the earliest possible time at which an activity can finish. EFT = EST + duration of that activity. 9.2.3 Critical Path Analysis 115 Latest finish time (LFT) is calculated by moving from last event to the first event of the network diagram.  Latest start time is the latest possible time by which an activity can start. LST = LFT – duration of that activity.  9.2.3 Critical Path Analysis 116 Duration is the estimated or actual time required to complete a task or an activity. Float is the difference between time available for completing an activity and the time necessary to complete an activity. 9.2.3 Critical Path Analysis 117 9.2.3.1 Forward Pass Rules Earliest Start Time Rule:   When an activity has only ONE (1) immediate predecessor, its EST is equal to the EFT of the immediate predecessor. EST = EFT of the immediate … IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 20 : Overall Revision – Part 2 1 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 11: Project Cost management 2 11.1.2 What is cost management? Project cost management includes the processes required to ensure that the project is completed within an approved budget. Project managers must make sure their projects are well defined, have accurate time and cost estimates and have a realistic budget that they were involved in approving. 3 Direct costs are costs that can be directly related to producing the products and services of the project. Example: Salaries, cost of hardware and software purchased specifically for the project Indirect costs are costs that are not directly related to the creating of products or services of the project, but are directly related to performing the project. Example: Cost of electricity, paper towels 11.1.3 Basic principles of Cost management 4 Sunk cost is money that has been spent in the past; when deciding what projects to invest in or continue, we should not include sunk costs. To continue funding a failed project because a great deal of money has already been spent on it is not a valid way to decide on which projects to fund. Sunk costs should be forgotten. 11.1.3 Basic principles of Cost management 5 11.1.3 Reasons why cost overruns Not emphasising the importance of realistic project cost estimates from the outset. Many of the original cost estimates for IT projects are low to begin with and based on very unclear project requirements. 6 Many IT professionals think preparing cost estimates is a job for accountants when in fact it is a very demanding and important skill that project managers need to acquire. Many IT projects involve new technology or business processes which involve untested products and inherent risks. 11.1.3 Reasons why cost overruns 7 11.2 Cost management processes There are 3 project cost management processes: Cost estimating: developing an approximation or estimate of the costs of the resources needed to complete a project Cost budgeting: allocating the overall cost estimate to individual work items to establish a baseline for measuring performance Cost control: controlling changes to the project budget 8 11.2 Cost management processes 9 11.3 Costs estimating After developing a good resource requirements list, PMs and their teams must develop several estimates of the costs for these resources PMs must take cost estimates seriously if they want to complete projects within budget constraints It’s important to know the types of cost estimates, how to prepare cost estimates, and typical problems associated with IT cost estimates 10 11.3.1 Rough Order of Magnitude A rough order of magnitude (ROM) estimate provides an estimate of what a project will cost. Also referred to as a ballpark estimate, a guesstimate or a broad gauge. Done very early in a project, often three or more years prior to project completion, or even before a project is officially started to help PMs make project selection decisions. 11 11.3.2 Budgetary Estimate Many organisations develop budgets at least two years into the future. Budgetary estimate is used to allocate money into an organisation’s budget. Budgetary estimates are made 1 to 2 years prior to project completion. Its’ accuracy is typically (-10\% to +25\%) For example: A budgetary estimate that actually costs $100,000 would range between $90,000 to $125,000. 12 11.3.3 Definitive Estimate A definitive estimate provides an accurate estimate of project costs (most accurate of the three types). Definitive estimates are used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs. 13 11.3.4 Comparisons of the 3 estimates 14 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 12: Project Resource Management 15 12.3.1 Maslow’s Hierarchy of Needs 16 12.3.2 Herzberg’s Motivational & Hygiene Factors 17 12.3.3 David McClelland – 3 Needs Theory 18 12.3.4 McGregor’s Theory X & Y 19 12.3.5 Thamhain & Wilemon on influencing workers 20 12.3.5 Thamhain & Wilemon on influencing workers 21 12.3.6 Stephen Covey 7 Habits Project managers can apply Covey’s 7 habits to improve effectiveness on projects: 22 12.3.6 Stephen Covey 7 Habits No Habit Means 1 Be proactive Take initiative 2 Begin with the end in mind Focus on goals 3 Put first things first Set priorities 4 Always think Win/Win We win only when others win 5 Seek first to understand, then to be understood Communicate 6 Always synergise Cooperate 7 Sharpen the saw Reflect on and repair the deficiencies 23 12.4 Tuckman’s Stages of Group Development 24 12.6.3 Responsibility Assignment Matrix A responsibility assignment matrix (RAM) is a matrix that maps the work of the project as described in the work breakdown structure (WBS) to the people responsible for performing the work For smaller projects, it is best to assign WBS activities to individuals; for larger projects, it is more effective to assign the work to organisational units or teams 25 RACI charts are a type of RAM that show: Responsibility (who does the task), Accountability (who signs off on the task or has authority for it), Consultation (who has information necessary to complete the task), Informed (who needs to be notified of task status/results) roles for project stakeholders 12.6.3 Responsibility Assignment Matrix 26 Sample RACI Chart Tasks Kristin Jamie Mohamed Supplier A Needs assessment A R C I Research of existing training I R, A C I Partnerships R, A I I C Course development A C C R Course administration I A R Course evaluation I A R I Stakeholder communications R, A C C C 12.6.3 Responsibility Assignment Matrix 27 12.6.4 Resource Histogram A resource histogram is a column chart that shows the number of resources required for or assigned to a project over time In planning project staffing needs, senior managers often create a resource histogram in which columns represent the number of people needed in each skill category. By stacking the columns, the total number of people needed each month can be seen After resources are assigned to a project, the resource histogram for each person can be seen on how his/her time has been allocated 28 12.6.4 Resource Histogram 29 PM 1 2 3 4 5 6 7 8 9 10 11 12 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 HR 1 2 3 4 5 6 7 8 9 10 11 12 1 1 1 1 1 1 1 1 1 1 1 1 SM 1 2 3 4 5 6 7 8 9 10 11 12 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 IT 1 2 3 4 5 6 7 8 9 10 11 12 0.25 0.5 0.5 0.5 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 Contracting 1 2 3 4 5 6 7 8 9 10 11 12 0 0 0.25 0.25 0.25 0.25 0.2 5 0.25 0.25 0.25 0.25 0.25 PMO 1 2 3 4 5 6 7 8 9 10 11 12 0 0.5 0.5 0.5 0.5 0 0 0 0 0 0 0 Miscellaneous 1 2 3 4 5 6 7 8 9 10 11 12 0.25 0.25 0.25 0.25 0.25 0.5 0.5 0.5 0.5 0.25 0.25 0.25 Month Number of People IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 13: Project Stakeholder Management 30 13.2 Project Stakeholder Management Processes Identifying stakeholders: Identifying everyone involved in the project or affected by it and determining the best ways to manage relationships with them. Planning stakeholder management: Determining strategies to effectively engage the stakeholders 31 Managing stakeholder engagement: Communicating and working with project stakeholders to satisfy their needs and expectations, resolving issues, and fostering engagement in project decisions and activities Controlling stakeholder engagement: Monitoring stakeholder relationships and adjusting plans and strategies for engaging stakeholders as needed 13.2 Project Stakeholder Management Processes 32 13.2 Project Stakeholder Management Processes 33 Power / Interest Grid 13.3.2 Classifying Stakeholders 34 13.3.4 Stakeholder Engagement Levels Unaware: Unaware of the project and its potential impacts on them Resistant: Aware of the project yet resistant to change Neutral: Aware of the project yet neither supportive nor resistant Supportive: Aware of the project and supportive of change Leading: Aware of the project 35 13.4 Planning Stakeholder Management After identifying and analysing stakeholders, project teams should develop a plan for management them The stakeholder management plan (SMP) can include: Current and desired engagement levels Inter-relationships between stakeholders Communication requirements Potential management strategies for each stakeholder Methods for updating the SMP 36 13.4.1 Sensitive Information Stakeholder management plan (SMP) often includes sensitive information, it should not be part of the official project documents, which are normally available for all stakeholders to review Often, only project managers and a few other team members should prepare the SMP Parts of the SMP are not written down, and if they are, distribution is strictly limited 37 13.5 Managing Stakeholder Engagement Expectations Management Matrix 38 13.5 Managing Stakeholder Engagement 39 Suggestions for handling these situations include the following: Be clear from the start Explain the consequences Have a contingency plan Avoid surprises Take a stand 13.5 Managing Stakeholder Engagement 40 13.8 Social Media for Project Managers Elizabeth Harrin, author of Social Media for Project Managers provides advice for when to use social media and when not to use it As the saying goes, “A fool with a tool is still just a fool.” A lot of stakeholder engagement requires old-fashioned techniques like talking to someone! 41 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 14: Agile with Scrum 42 14.1 What is Agile Project Management? Agile Project Management (APM) is the process of breaking a project down into manageable steps with an emphasis on responsiveness and customer collaboration. This new and flexible style of project management is being adopted by many businesses. Faster products delivery can be achieved the implementation of APM. 43 14.1.1 Core Values of Agile Project Management Individuals and interactions over processes and tools APM dictates that human interaction takes precedence over everything else. Check in with team members and the customer frequently to make sure everyone understands the project and is happy with the direction. 44 14.1.1 Core Values of Agile Project Management 2. Working software over comprehensive documentation Traditional project management requires extensive documentation in the form of written technical documents. APM values documentation but recommends the use of software to keep the necessary documents and records efficiently. 45 14.1.1 Core Values of Agile Project Management 3. Customer collaboration over contract negotiation The customers are included in the process of design and production. Their input throughout the project, rather than at the start and conclusion, will ensure that every action taken by the team is in the right direction. 46 14.1.1 Core Values of Agile Project Management 4. Responding to change over following a plan Be prepared and willing to adapt as the project demands. Use data to decide on the next action. Use formative assessments along the way to shift the process to create the best product, rather than to follow a predetermined set of steps to a conclusion and then assess the outcome. 47 14.1.2 Principles of Agile Project Management 12 Principles: The highest priority is to satisfy the customer through early and continuous delivery of valuable software (or whatever the product or output is). Welcome changing requirements, even late in development. Agile processes harness change for the customers competitive advantage. Deliver projects frequently, from a couple of weeks to a couple of months, with a preference for the shorter timescale. 48 14.1.2 Principles of Agile Project Management Coordinating team members must work together daily throughout the project. Build projects around motivated individuals. Give them the environment and support they need and trust them to get the job done. Face-to-face conversation is the most efficient and effective method of conveying information to and within different teams. 49 14.1.2 Principles of Agile Project Management The final product is the primary measure of progress. Agile processes promote sustainable development. All stakeholders should be able to maintain a constant pace indefinitely. Continuous attention to technical excellence and good design enhances agility. 50 14.1.2 Principles of Agile Project Management Simplicity - the art of maximising the amount of work not done - is essential. The best architectures, requirements and designs emerge from self-organising teams. At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly. 51 14.2.1 Traditional vs Agile PM Traditional PM Agile PM Project team would set a specific goal, create a series of steps to reach that goal and then implement the process. Breaks a project down into small goals, or sprints, and utilises frequent assessments to reshape the steps and even possibly the end goal. Linear - Each step must be completed before the next can begin. Iterative - Steps can be worked on simultaneously and assessed at the same time. 52 14.3 Agile PM Methodologies Agile project management has 6 steps. 1. Project planning The team determine the projects end goal which should be relatively broad, to account for revisions and improvements throughout the process. 2. Creating the project roadmap The roadmap is made up of all the features included in the final product. This is not a list of steps, but instead a list of elements that can be completed somewhat simultaneously. 53 14.3 Agile PM Methodologies 3. Release planning A release plan is a calendar of when prototypes or product elements will be delivered to the customer for review. The expectation is that individual pieces of the total project will be reviewed frequently, and the overall project updated as needed. 4. Sprint planning Sprints are short-cycle design times that end with a product release. Sprint planning should be detailed. Every team member should know what they are expected to accomplish during every day of the sprint. 54 14.3 Agile PM Methodologies 5. Daily meetings Start each workday during a sprint with a meeting. Team members will share successes and challenges from the previous day. Confirm tasks and goals for that workday. 55 14.3 Agile PM Methodologies 6. Sprint reviews and retrospective Sprint review : Presentation of the product element to the customer. The team will receive feedback and prepare to revise the element or adjust the long-term goal as directed by the customer. Sprint retrospect: The team will meet separately from the client and reflect on the sprint issues (workload imbalance, deadlines & communication) to be addressed and improved for the next sprint. 56 2-4 weeks 14.4 Scrum Framework 57 14.4.1 Sprint in Scrum A Sprint is usually limited to one calendar month (or 4 weeks). When a Sprint’s horizon is too long the definition of what is being built may change, complexity may rise, and risk may increase. A new Sprint starts immediately after the conclusion of the previous Sprint. 58 14.5 Roles & Responsibilities in Scrum These are the roles in a Scrum project: 59 Communicate 14.5 Roles & Responsibilities in Scrum 60 14.5.1 The Product Owner The product owner is the one in charge of the business side of the project and is held accountable when processes do not follow the right order. Being a primary stakeholder in the project, it is the Product Owner’s responsibility to have a vision for what he or she hopes to see. The ability to communicate that vision to the entire team also falls squarely on his/her shoulders. 61 14.5.2 The Scrum Master Scrum Master ensures team coordination and supports the progress of the project between individual team members. He/She takes the instructions from the Product Owner and ensure that the tasks are performed accordingly. He/She acts as a teacher and coach, verifying certain team members adhere to the theory and practices of Scrum. 62 14.5.3 Development Members Members of the Scrum team are expected to report their daily progress, along with any successes and challenges to the Scrum team during daily stand-up meetings. The scrum team usually consists of Professionals: Self organising Communicates with Product owner 63 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 15: Project Quality Management - 1 64 15.1 What Is Quality? Dimension Description Performance Will the product perform its intended function? Special Features Additional function to the product Perceived Quality What is the reputation of the company or its product? Conformance Is the product made exactly to the designer or customer requirements/specifications? Aesthetics How does the product look like? Reliability The probability that the product can function under stated condition without failure for a given period of time. Durability What is the lifetime of the product? Serviceability How easy is it to repair the product? Garvin (1987) proposed the following 8 dimensions of product quality 65 15.1.1 IT Projects Quality Dimensions Dimension Description Functionality The degree to which a system performs its intended function Features The system’s special characteristics that appeal to user Performance How well a product or service performs the customer’s intended use Reliability The ability of a product or service to perform as expected under normal conditions System outputs The screens and reports the system generates Maintainability The ease of performing maintenance on a product 66 15.2.2 Total Quality Management Total Quality Management (TQM) refers to a quality emphasis that encompasses the entire organisation, from supplier to customer. TQM stresses a commitment by management to have a continuous companywide drive toward excellence in all aspects of products and services that are important to the customer. 67 Plan-Do-Check-Act (PDCA) Cycle 15.2.3 Continuous Improvement 68 15.2.3 Continuous Improvement 69 15.3 How Quality Relates to IT Project Many IT project managers face pressures to deliver systems and technologies which meet the customer’s ever-changing needs that quality suffers. Many of the problems occur due to the complexity of technology and the rapid pace of change. These dynamic conditions are not likely to abate; in fact, theyre accelerating at an alarming rate. 70 15.3 How Quality Relates to IT Project However, performance can be greatly improved by ensuring that tactical decisions in IT project focus on the quality aspects. Quality improvements in IT project delivery can be achieved by considering user satisfaction, integration and flexibility in the early stage of decision process and reinforcing them throughout the review process. 71 15.3 How Quality Relates to IT Project Although there are no perfect solutions, quality management helps to ensure standards are rigorously enforced and embedded into the thinking of the entire IT project team. One of the challenges for IT project is to tap on the past quality experiences and valuable lessons.  72 15.5 Project Quality Management 73 15.5 Project Quality Management 74 A good quality management plan starts with a clear definition of the goal of the project. These following questions help to identify and define quality requirements, allowing the project team to discuss the approach and plans needed to achieve those goals. 15.6 Quality Planning (QP) 75 15.6.1 Project Metrics 76 15.6.3 Project Dashboard 77 15.7 Quality Assurance (QA) Quality assurance is the planned and systemic activities implemented in a quality system so that quality requirements for a product or service will be fulfilled. Use quality assurance to make sure the processes are in fact working towards making the project deliverables meet quality requirements. 78 15.8 Quality Control (QC) QC involves operational techniques meant to ensure quality standards. This includes identifying, analysing, and correcting problems. While QA occurs before a problem is identified, QC is reactionary and occurs after a problem has been identified and suggests methods of improvement. 79 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 16: Project Quality Management 2 80 16.1.1 Check Sheet It is used to easily collect data. Decision-making and actions are taken from the data. 81 16.1.2 Scatter Diagram It is a graphical tool that plots many data points and shows a pattern of correlation between two variables. 82 16.1.3 Cause-and-Effect Diagram It is used to figure out any possible causes of a problem. After the major causes are known, we can solve the problem accurately 83 16.1.4 Pareto Chart It is used to define problems, to set their priority, to illustrate the problems detected, and determine their frequency in the process. 84 16.1.5 Flow Chart It shows the process step by step. 85 16.1.6 Histogram It shows a bar chart of accumulated data and provides the easiest way to evaluate the distribution of data. 86 It provides control limits which are generally three standard deviations above and below average, whether or not a process is in control. Upper control limit Average value Lower control limit Time 3 3 16.1.7 Statistical Process Control Chart 87 Control charts attempt to distinguish between two types of process variation: Common cause variation: which is intrinsic to the process and will always be present. Special cause variation: which stems from external sources and indicates that the process is out of statistical control. 16.1.7 Statistical Process Control Chart 88 The above process is in control, all data points are within the control limits. 16.1.7 Statistical Process Control Chart 89 The 2 points marked by “X” are out of control. 16.1.7 Statistical Process Control Chart 90 16.2 Six Sigma 91 16.3 Testing of IT software A unit test is done to test each individual component (often a program) to ensure that it is as defect-free as possible. Unit tests are performed before moving onto the integration test. Integration testing occurs between unit and system testing to test functionally grouped components. It ensures a subset(s) of the entire system works together. 92 System testing tests the entire system as one entity. It focuses on the big picture to ensure that the entire system is working properly. User acceptance testing is an independent test performed by end users prior to accepting the delivered system. It focuses on the business fit of the system to the organisation, rather than technical issues. 16.3 Testing of IT software 93 16.4.2 Cost of Quality 16.4.2 Cost of Quality Cost of conformance Prevention cost – Cost of planning and executing a project so it is error-free or within an acceptable error range. Example: training, quality planning, process studies etc. Appraisal cost – Cost of evaluating processes and their outputs to ensure quality. Example: testing, destructive testing loss and inspections. 95 16.4.2 Cost of Quality Cost of non-conformance Internal failure cost – Cost incurred to correct an identified defect before the customer receives the product. Example: rework and scrap, corrective actions etc. External failure cost – Cost that relates to all defects and problems after the customer has received the product. Example: Returned goods, customer complaint, warranty etc. 96 15.9 Using Software to Assist in Project Quality Management Bug tracking software: A software where bugs are reported, tracked, and then resolved. Automated testing software: While there is no substitute to human testing to ensure a very stable end product, automated testing can weed out the most common bugs and will make the human testing less stressful. 97 15.9 Using Software to Assist in Project Quality Management Collaboration software: The project manager and team members use to exchange information about the project. Team members can ask for help from other team members when facing challenges on their tasks. Team members building upon code that is written by other team members can inform the latter about errors in their codes. Testers can inform developers about their bugs. 98 IT Project Management version 1.0 Diploma in Information Technology Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved. Lesson 17: Project Communication Plan 99 17.2 Processes in Project Communications Management There are five (5) main processes: Identifying stakeholders Planning communications Distributing information Managing stakeholders Reporting performance 100 What must the communication plan include: The purpose or goals of the communication plan Information about stakeholders and their roles The types of information that needed to be shared with stakeholders The methods used to communicate The frequency that each stakeholder would like to receive information 17.3 Plan Communication 101 17.3 Plan Communication An illustration of the Communication Plan 102 17.4 Distributing Information Advantages Disadvantages Suitable for group or individual meetings. Can be either formal or informal. Allows for instant feedback. Can be costly if participants have to be brought in from overseas or other places. Need time & resources to facilitate such meetings. Need a staff to ensure minutes are taken & distributed to all participants. 1. Face-to-Face Communications 103 17.4 Distributing Information Advantages Disadvantages Paper-less. Easy access to the Internet, computers & mobile devices. Communication via the Internet is faster, cheaper & easier to retain for record purposes. Can also maintain a project portal or intranet site to share project data. Risk of data loss or unauthorised access to confidential project information by hackers. 2. Digital Communications 104 17.4 Distributing Information Advantages Disadvantages They are visual & textual, can be edited & revised several times to shape them for maximum effect before being distributed. Provide a permanent record of the communication which can be archived for later retrieval. Need storage space. Need paper, which can be cumbersome to file and store in large quantities. Aging documents are susceptible to loss or damage can lead to difficulties in managing project records. 3. Hard Copy Communications 105 17.4 Distributing Information Advantages Disadvantages Can be used to pull a large group together. Allow for real-time video collaboration. Most video conferencing tools provide white boards & other options for document sharing and editing. Time zones - can be difficult to get everyone scheduled in a session depending on where they are in the world. Personal aspect of a conversation is taken away. Conferencing etiquette may not be observed by some users (e.g. late, not paying attention. 4. Conferencing 106 17.4.1 Number of Communications Channels There is a simple formula for determining the number of communications channels as the number of people involved in a project increases. We can calculate the number of communications channels as follows: 107 17.4.1 Number of Communications Channels 108 17.7.1 Managing Conflicts Blake and Mouton (1964) delineated five (5) basic modes for handling conflicts: Each mode can be rated as high, medium, or low on two dimensions: importance of Task (T), and importance of Relationship (R) between the people having the conflict. 109 Confrontation or problem‐solving: Directly face a conflict (High T/High R) Compromise: Use a give‐and‐take approach (Medium T/Medium R) Smoothing: De‐emphasise areas of differences and emphasise areas of agreement (Low T/High R) Forcing: The win‐lose approach (High T/Low R) Withdrawal: Retreat or withdraw from an actual/potential disagreement (Low T/Low R) 17.7.1 Managing Conflicts 110 Confrontation or problem‐solving Compromise Smoothing Forcing Withdrawal 17.7.1 Managing Conflicts 111 Sadly, not many people know how to …