IT Project Management (MIT P j tM t 507) 507)

Objective
Cover the five process groups and nine knowledge areas outlined in the Project g j Management Institutes Project Management Body of Knowledge (PMBOK). Understand the importance of project management for IT Projects. Understand the relationship between strategic Management & Project.

Course Outline

Introduction to Project j Management & Importance Strategic g Project Management Framework & Organizational Structure

Project Time Management j g Project Cost Management Project Quality Management Project Human Resource Management Project Communications Management Project Risk Management Project Procurement Management Project Management and the CMM

The Nature of Information Technology Projects

Project Management Process groups Project Integration Management Project Scope Management

Course Outline
MS office will be used in the Lab sessions.
Overview of Project 2007 j Use of project guide Customize the standard toolbar Different view options Creating a new project file Enter project information Developing Work Breakdown Structure (WBS) C ti S Creating Summary t k task Numbering task Enter Task Duration
Recurring task Entering Task Dependencies Adding Lead or Lag time Network Diagram Critical path calculation Cost Estimates Assigning resources to task Establishing a Baseline Plan View tracking Gantt chart Resource Calendar E Export information from MS Excel ti f ti f E l Project Summary

Books

Kathy Schwalbe Information Technology Project Schwalbe, Information Management, Thomson Course Technology, Pankaj Jalote Software Project Management In Jalote, Software Practice, Addission Wesley. Joseph Phillips, IT Project Management , IT Management, McGraw Hill Osborne. David I. Cleland & Lewis R. Ireland, Project Project Management Strategic Design & Implementation, McGraw-Hill International. Kathrin Koster, International Project g , g Management:, Sage Publication

Pedagogy

Lectures, Assignments, Discussions and Case studies would be used to explain the principles.

Assessment Details

Internal Theory Tests : 20% Assignments, Assignments Case Studies and Quiz: Studies, 30 % External University Exam : 50%

Course Website

www.manipalitdubai.com www manipalitdubai com

Module: 1
Introduction to Project Management

What i Project Wh t is P j t Management and Why? Software Crisis IT Project Management Project V O P j Vs. Operation i Program and Portfolio M t Management Project Management History Hi t Project Management Framework

Project M P j t Management t certifications & advantages Project Success Factors Project Management software Role of the project manager

Learning Objectives

Understand the growing need for better p j g g project management. g Importance of project management in IT projects. Explain what a project is, list various attributes of projects, and describe the constraint in projects.

Describe project management and discuss key elements of the project management framework. framework

Understand the relation between project, program, and portfolio management Describe the project management profession the role of professional g j g p organizations such as the Project Management Institute, the importance of certification and ethics.

Introduction

Computer hardware, software networks hardware software, networks, and the use of interdisciplinary and global work teams have radically changed the work environment The world as a whole spends nearly $10 trillion of its $40.7 trillion gross product on projects of all kinds p j More than 16 million people regard project g management as their profession

Project Management Statistics

Total global spending on technology goods services goods, services, and staff was projected to reach $2.4 trillion in 2008, an 8 percent increase from 2007 In the U.S. the size of the IT workforce topped 4 million workers for the first time in 2008 In 2007 the total compensation for the average senior project manager in U.S. dollars was $104,776 per year in the United States, $111,412 in Australia, and $120,364 in the United Kingdom The number of people earning their Project Management Professional (PMP) certification continues to increase

Project Management Statistics (IT)

IT Projects have a terrible track record A 1995 Standish Group study (CHAOS) found that only 16 2% of IT projects were successful in meeting 16.2% scope, time, and cost goals; over 31% of IT projects were canceled before completion A PricewaterhouseCoopers study found that overall, half of all projects fail and only 2.5% of corporations consistently meet their targets for scope, time, and cost goals for all types of project.

Source: The Standish Group, The CHAOS Report (www.standishgroup.com) (1995). Another reference is Johnson, Jim, CHAOS: The Dollar Drain of IT Project Failures, Application Development Trends (January 1995).

Project Management Statistics (IT)

Worldwide cost of IT failure: $6 2 trillion* $6.2 trillion According to the 2009 U.S. Budget, 66% of all Federal IT dollars are invested in projects that are at risk.

* Michael Krigsman, December 22, 2009 (www.zdnet.com)

Software Crisis : CHAOS Report

Year Successful Projects Challenged Failed Projects Projects

1995 2006 2009

16% 35% 32%

53% 46% 44%

31% 19% 24%

15

What is a Project?

A project is a temporary endeavor undertaken to produce a unique product or service A project is a temporary endeavor undertaken to accomplish a unique purpose.

Projects Vs Operations Vs.

Projects are temporary in nature and have definitive start dates and definitive end dates, dates whereas operations are ongoing and repetitive.
Characteristics of Operations
Ongoing Continuous cycle Repetitive Expected inputs and outputs

Characteristics of Projects
Temporary Definitive beginning and end U i Unique N New undertaking, unfamiliar ground d t ki f ili d

Question
The VP of marketing approaches you and requests that you change the visitor logon screen on the companys website to include a username with at least six characters. characters This is an example of project or operation

18

Successful Projects

Customer Requirements satisfied/exceeded Completed within allocated time frame Completed within allocated budget Acceptance by the customer A t b th t

Project Attributes

A project:
Has a unique purpose I temporary Is t Is developed using progressive elaboration
Specifications of the project are initially broad and then refined and more detailed as the project progresses

Requires resources, often from various areas resources Should have a primary customer or sponsor
The project sponsor usually provides the direction and funding for the project

Involves uncertainty
Unclear objectives, difficult to estimate time to complete and cost dependence on external objectives cost, factors

What is Project Management

Project Management is the application of skills, knowledge, tools and techniques to meet the needs and expectations of stakeholders for a project*
The purpose of p j p p project management is p g prediction and prevention, NOT recognition and reaction

*PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide)

What is Project Management

Discipline of organizing and managing resources in such a way that these resources deliver all the work required t k i d to complete a project within defined scope, time and scope time, cost constraints.

IT Project Management

A set of principles, practices and techniques principles applied to lead IT project teams and control IT project schedule, cost, scope, resources schedule cost scope and quality of deliverables.

Source: Project Management: The Managerial Process, Clifford F. Gray and Erik W. Larson

Example of IT Projects

A small software development team adds a new feature to an internal software pp p application for the finance department A college campus upgrades its technology p infrastructure to provide wireless Internet access across the whole campus A cross-functional task force in a company p y decides what Voice-over-Internet-Protocol (VoIP) system to purchase and how it will be implemented b i l t d

Misconception About Project Management

Project management is just a scheduling

25

The Triple Constraint

Time Cost

Quality/Scope

OR, IN PLAIN ENGLISH

Fast Cheap

Good

Triple Constraint Trade-Offs TradeCost

Quality/Scope

Constraint Change Shorter Time

Required Adjustment Alternatives (One or Combination of Both) Higher Cost Reduced Quality or Narrowed Scope Reduced Cost More Time Reduced Quality or Narrowed Scope Higher Quality or More Time Higher Cost Increased Scope p

Triple Constraint: Setting Priorities

Constraint Time Cost Quality/Scope 1 2
Priority Matrix

Measurement

Must be set by customer and sponsor near startup. May change over time, but a change is a significant event!

Co n s tra in t Time Cost C

E x a m pl e o f a C o m p l e te d P r i o r i ty M a tr i x fo r a C o n str u cti o n P r o je ct

X X X

Quality/Scope

Me a su re m e n t Building must be completed by October 31 of this year to accommodate corporate move. Costs for the project must not exceed $22.5 million. Must provide workspace for 120 call center staff.

If these are the established priorities and measurements, what are some of the implications for the project if the project starts running late or shows signs of exceeding budget?

Programs and Program Management

Group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually g g y (PMBOK Guide, Fourth Edition, 2008,). Examples of common p g p programs in the IT field include infrastructure, applications development, and user support Program management is the centralized coordinated management of a group of projects to achieve the programs strategic objectives and hi h i bj i d benefits.

Programs and Program Management

Program have a longer duration and requires more resources. Program is not limited to projects it can projects, also include non-project actions. Advantages:
Ensuring strategic alignment through the interdependency of objectives Reducing the complexity of large projects, by clearly breaking down into smaller, easy-toeasy to control projects.

Program Management Life Cycle

Fig: Program Management Cycle

Project Portfolio Management

The set of all projects and programs an organizations runs is called project portfolio.

Aim is relating all projects and program management cycles to strategic goals.

As part of project portfolio management, organizations group and management manage projects

and programs as a portfolio of investments that contribute to the entire enterprises success.

Portfolio managers help their organizations make wise investment g p g decisions by helping to select and analyze projects from a strategic perspective

The whole process of managing and directing the project portfolio is called governance.

Project Portfolio Management Process

Project Management comparison with Portfolio Management

Advantages of Using Formal Project Management

Better control of financial, physical, and h man financial ph sical human resources. Improved customer relations. Shorter development times. Lower costs. Higher quality and increased reliability. Higher profit margins. Improved productivity. Better internal coordination. Higher Hi h worker morale (l k l (less stress). t ) Increase business
35

Project Management Framework

Stakeholders Knowledge g Area Tools & Techniques

Project Management Framework

Stakeholders
Persons and organizations who are actively involved in the project or those whose interests may b positively or negatively i t t be iti l ti l affected by the performance or completion of the project project. Stakeholders includes:
Project Sponsor Project Manager Project team Project Management Office Support staff Customers/Users Suppliers Functional Managers Business Partners Opponents of the projects Others (public, regulators..)

Project Management Framework

Knowledge Areas
Describe the key competencies that project managers must develop develop.
Scope Management Time Management Cost Management Quality Management Human Resource Management Communication Management Risk Management Procurement Management P tM t

Integration Management

Project Management Framework

Tools & Techniques

Assist project managers and their teams in carrying out work in all nine knowledge areas. Specific tools and techniques include:
Project charters, scope statements, and WBS (scope). ( p ) Gantt charts, network diagrams, critical path analyses, critical chain scheduling (time). Cost estimates and earned value management (cost).

PM Tools: Software

Low-end
Basic features, tasks management, charting MS Excel, Milestones Simplicity Excel

Mid-market
Handle larger projects, multiple projects analysis projects projects, tools MS Project (approx. 50% of market)

High-end
Very large p j y g projects, specialized needs, enterprise p p AMS Realtime Primavera Project Manager

Tools: Gantt Chart

Tools: Network Diagram

PM Tools: Software

Visit www.infogoal.com/pmc to know more than 100 project management software.

General Management Vs. Project Management

Responsible for managing the status quo

Responsible for overseeing change Lines of authority fuzzy y y Ever-changing set of tasks Responsibility for cross functional cross-functional activities

Authority defined by management structure

Consistent set of tasks Responsibility limited to their own function

Predominately concerned with innovation

Works in permanent organizational structures

Main task is the resolution of conflict Success determined by achievement g of stated end goals.

Main task is optimization Limited set of variables Success determined by achievement

History of Project Management

Some people argue that building the Egyptian pyramids was a project, as g was building the Great Wall of China Most people consider the Manhattan

j p j Project to be the first project to use modern project management

This three-year, $2 billion (in 1946 dollars) y ( ) project had a separate project manager and a technical manager

Relation Between Strategic Management & Projects

Fig-a: Strategic Management cycle

Fig-b: Extended Strategic Management Cycle

Questions

IT Projects & Management

IT Projects: Facts & Statistics

As per the CHAOS report, published by Standish group report first time in 1994
Found that only 16 2 percent of IT projects were successful in 16.2 meeting scope, time, and cost goals. Over 31 percent of IT projects were canceled before completion, costing over $81 billion in the U.S. alone.* Worldwide cost of IT failure: $6.2 trillion* trillion According to the 2009 U.S. Budget, 66% of all Federal IT p j dollars are invested in projects that are at risk.

*The Standish Group, The CHAOS Report www standishgroup com) (1995) Another reference is Johnson Jim CHAOS: The Group The Report www.standishgroup.com (1995). Johnson, Jim, CHAOS: The Dollar Drain of IT Project Failures, Application Development Trends (January 1995).

IT Projects: Facts & j Statistics

Software Crisis : CHAOS Report
Year Successful Projects Challenged Failed Projects Projects

1995 2006 2009

16% 35% 32%

53% 46% 44%

31% 19% 24%

Factors for Successful, Challenged, and Impaired projects

Successful Projects Factors
User Involvement Executive M E ti Management t Support Clear Statement of Requirements Proper Planning Realistic Expectations Smaller Project Milestones Mil t Competent Staff Ownership Clear Vision & Objectives

Challenged Projects Factors

Lack of User Input

Impaired Project Factors

Incomplete Requirements

Incomplete Requirements L k of U I l t R i t Lack f User I Involvement l t & Specifications Changing Requirements & Specifications Lack of Executive Support Technology Incompetence Lack of Resources Lack of Resources Unrealistic Expectations Lack of Executive Support Changing Requirements & Specifications S ifi ti Lack of Planning Didn't Need It Any Longer

Unrealistic Expectations Unclear Objectives Unrealistic Time Frames

Lack of IT Management

IT Projects: Facts & Statistics

A PricewaterhouseCoopers study found that overall, half of all projects fail and only p y 2.5% of corporations consistently meet their targets for scope, time, and cost goals for all types of project

*Michael Krigsman,

December 22, 2009 (www.zdnet.com)

IT Projects: Facts & Statistics

BULL Survey (1998)

Cause of projects failure in U.K. finance sector as reported by top 100 managers a survey managers, conducted by BULL, a French computer y g manufacturer & system integrator are: Failed communication among parties (57%) Lack of planning ( p g (39%) ) Poor quality control (35%)

IT Projects: Facts & Statistics

Top five causes of project failure as per the OASIG study

A special interest group in the UK concerned with the social and g p organizational aspects of information technology
1. Lack of attention to human and organizational f t factors 2. Poor project management 3. Poor articulation of user requirements 4. Inadequate attention to business needs and goals 5. Failure to involve users appropriately

IT Projects: Facts & Statistics

The KPMG Canada Survey

Main cause of project failures are:
Poor project planning Weak business case Lack of top management involvement and support

Cost of a failed project is only the tip of the iceberg

project failure incurs both direct costs (the cost of the investment itself) and indirect ( pp y ) costs (the lost opportunity costs).

Examples of Project Failure

East Span San Francisco Bridge

Original estimated cost: $780,000,000 Original estimated time: in 2007 Actual estimated cost now is $6.3 billion and open to traffic in the year 2013 2013.

Magnetic train project to connect Berlin and Hamburg

185 billion dollar project cancelled due to environmental concerns after millions had concerns, been spend.

Examples of Project Failure

Sobey Inc. ERP System Inc

Canadas second largest grocery chain, abandoned attempts to implement a SAP designed enterprise system after a 5 day p y shut-down that affected the company business operations for almost a month. The damage was nearly $49 million. g y

FedEx B2B project to integrate supply chain

Project cancelled after two years and damage was $15 million

Examples of Project Failure

In 1988 hardware problems caused the Bank of America to 1988, lose control of several billion dollars of trust accounts. All the money was eventually found in the system but all 255 peopley y y p p i.e. the entire trust department was fired as all depositors withdrew their money.

In march 1997, the state of Washington killed the one of the biggest IT project, the License Application Mitigation Project (LAMP).
Project began in early nineties and was supposed to be online in 1995. Initial budget was &16 million, project cost climbed to $41.8 million in 1992, $51 million in 1993 and was estimated $67.5 million in 1997. when project was cancelled already $40 million has been spend.

Unique Features of Software Projects

Many of the techniques of general project management are applicable to software p j project management. g But products of software projects have certain characteristics which make them different.
Invisibility Complexity Conformity y Flexibility

Unique Features of IS Projects

Technological Context in which companies operate Difficulty of hiring and retaining experienced IT project employees Manage extensive user involvement Integration of established system development methodologies to project management framework Uniqueness: attempted solutions may never have been tried before. Managing p j g g project scope p Technology changes during project development

IS Project Complexities

Success Assessment for the IT Projects

Apart from meeting cost, scope and time cost goal there are other criteria that also g g projects defining the success at large for IT p j
An IT project can also fail by lack of growth and evolutionary capabilities of the solution it y p delivers. An IT project can also fail by lack of business sense. An IT project can also fail by lack of integration with its business environment. An IT project can also fail by lack of consistency between its means and its objectives.

What Went Right? Improved Project Performance

The Standish Groups CHAOS studies show Group s improvements in IT projects in the past decade:

The number of successful IT projects has more than doubled, from 16 percent in 1994 to 35 percent in 2006 The Th number of f il d projects d b f failed j t decreased f d from 31 percent t in 1994 to 19 percent in 2006 The United States spent more money on IT projects in 2006 th 1994 ($346 billi and $250 billi than billion d billion, respectively), but the amount of money wasted on challenged and failed projects was down to $53 billion in 2006 compared to $140 billion in 1994

Why the Improvements?

"The reasons for the increase in successful The projects vary. First, the average cost of a project has been more than cut in half. Better tools have been created to monitor and control progress and better skilled project managers with better management processes are being used. The fact that there are processes is significant in it lf * itself.*

*Standish Group, "CHAOS 2001: A Recipe for Success" (2001).

What the Winners Do Do

Recent research findings show that companies that excel in project delivery capability: Use an integrated project management toolbox (use standard/advanced PM tools, lots of templates) p ) Grow project leaders, emphasizing business and soft skills Develop a streamlined project delivery process Measure project health using metrics, like customer satisfaction or return on investment

Questions ?