3.4 Estimation methods – Delphi method (II)
not model based other
Systematic – Interactive – Iterative
not model based – other
Based on independent inputs of selected experts
Recognizes the value of expert opinion, experience and intuition
Implies statistical analysis
Collective judgement of experts
Benefits Need to find qualified experts
Disadvantages
more objective than individual statements
No limitations of face-to-face meetings (social domination, reduction of ‘group think’ …)
Exclusion of certain experts with different mentality
Time intensive (1 Round ≈ 3 Weeks) Drop out of experts during processeduct o o g oup t )
Highly structured, powerful Multi staged poll to reach
consensus Computerized procedure possible
Drop out of experts during process For some questions there are other
(better) ways to find answers …
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 1
Computerized procedure possible
3.4 Further links for planning and estimation
http://www.laatuk.com/tools/effort_estimation_tools.html
http://www.geocities.com/lbu_measure/estim/effort.htm
http://www.iese.fhg.de/network/ISERN/pub/technical_reports/isern-00-05.pdf
http://www.cis.gsu.edu/~emclean/Function%20Point%20Analysis.ppt
http://vizyon2023.tubitak.gov.tr/etkinlikler/delphicalistay/keenan.ppt
http://www saem org/download/lewis1 pdfhttp://www.saem.org/download/lewis1.pdf
http://www.iit.edu/~it/delphi.html
http://www futurovenezuela org/ curso/5 delphi pdfhttp://www.futurovenezuela.org/_curso/5-delphi.pdf
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 2
3.4 Project time management – Capacity Plan
Acron ms
Example for an estimation result:(rough cut capacity plan)
Acronyms:FTE = Full time equivalent (net capacity)UOM = Unit of measureH/C = HeadcountOH = OverheadDBA = Database AdministratorMY = Man Year (net capacity)Y = Years
Estimated total effort: 33,5 [MY]
Y = Years
Site UOM SME Funct IT IT dev OH DBA TOTAL
Kingston [FTE] 12,00 5,00 7,00 1,00 0,50 25,50H/C 19,76 8,24 7,00 2,00 1,00 38,00S d [%] 0 61 0 61 1 00 0 50 0 50 0 67
Why is contracting between IT &
Spread [%] 0,61 0,61 1,00 0,50 0,50 0,67Montego Bay [FTE] 2,75 2,90 4,00 2,30 0,50 12,45H/C 12,00 5,00 7,00 3,00 2,00 29,00Spread [%] 0,23 0,58 0,57 0,77 0,25 0,43Barbados [FTE] 6,60 2,10 1,70 1,00 0,50 11,90
Business so important?
CompareH/C 11,00 3,00 3,00 2,00 1,00 20,00Spread [%] 0,60 0,70 0,57 0,50 0,50 0,60Cuba [FTE] 0,30 0,45 0,75H/C 2,00 3,00 0,00 0,00 0,00 5,00Spread [%] 0 15 0 15 #DIV/0! #DIV/0! #DIV/0! 0 15
Compare sites: MD/ MY/ HC/ FTE
Spread [%] 0,15 0,15 #DIV/0! #DIV/0! #DIV/0! 0,15TOTAL [FTE] 21,65 10,45 12,70 4,30 1,50 50,60H/C 44,76 19,24 17,00 7,00 4,00 92,00Spread [%] 0,48 0,54 0,75 0,61 0,38 0,55Duration (vs elapsed effort) [Y] 0,66
Check distribution of effort
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 3
1 MY = 220 MD, 1 H/C = 0,7 MY, FTE = Full Time Equivalent @ 40 hrs / week
3.4 Project time management – Consistency check
Simplified formula for a capacity consistency check:- not looking at Critical Path and project content dependenciesg p j p- not looking at required skills / capacity vs. skills / capacity available
Minimal project duration = Estimated, required net capacity / Committed net capacity/ time Minimal project duration = Estimated, required net capacity / Committed net capacity/ time
- Other approaches:
SM = 3 PM1/3SM = 3 PM1/3SM = 3 PM1/3
SM = Schedule MonthPM = Person MonthPM: 64 -> SM: 12, PM 125 -> SM: 15
SM = 3 PM1/3
SM = Schedule MonthPM = Person MonthPM: 64 -> SM: 12, PM 125 -> SM: 15
SM = FPa
FP = Functional Pointsa = exponent depending on kind of software and project productivity
3 0 f i i 0 42 SM 12
SM = FPa
FP = Functional Pointsa = exponent depending on kind of software and project productivity
3 0 f i i 0 42 SM 12
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 4
e.g. 350 function points, power = 0.42 -> SM = 12e.g. 350 function points, power = 0.42 -> SM = 12
3.5 Project cost management
“The Project Cost jManagement includes the processes involved in planning estimatingplanning, estimating, budgeting, and controlling costs so that the project can be completed within the approved budget.”
(Source PMBOK p.157)
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 5
3.5 Project cost management – Processes
backup
Develop cost approximation of the resources needed to complete activities Consideration of possible causes of variation of cost estimation Consideration of various costing alternatives Generally expressed in currency unit to facilitate comparisons
Cost Estimating Generally expressed in currency unit to facilitate comparisons
Benefits form refinement during the course of the project (see “the cone”) By formally trained cost estimator or highly experienced project team
Estimating
Aggregating the estimated costs of individual activities or work packages Based on the project scope statement that provides the summary budget Establish a total cost baseline plan for project measuringCost Budgetingra
ctio
n
p p j g Project funding requirements (total and periodic)
Inte
r
Influencing factors for cost variances +controlling changes to the project budget Searches out the causes of variances Part of Integrated Change Control Cost change control system / performance measurement (EVM)
Cost Control
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 6
g y p ( )
3.5 Project cost management – Dependencies
Return-On-Investment calculations Net-Present-Value
Source: htt
et ese t a ue Life cycle costing: calculates the cost of
a system/ product over entire life span)
tp://ww
w.12207.co
Later transaction and data volume -> H/W sizing, scalability
Cross project synergies m/Live%
20Cycle%
Cross project synergies Quality of estimation (impact of under- /
overestimation on cost) %20cost.htm
) Cost impact of schedule compression
Time phased budget: Underlying WBS / Timelines / Milestone dates
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 7
3.5 Prj. Cost Mgmt – Earned Value Management
EVMThe EV-Technique measures performance of the project as it
f j t i iti ti
The EV-Management methodology provides means
t f t f t fmoves from project initiation towards project closure
to forecast future performance based on past performance
Project Controlling
Forecasting techniqueControlling technique
Performance measurement analysis
Outlook towards project end
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 8Source: PMBOK p.95, 172, http://evm.nasa.gov/definition1a.html
measurement analysis on certain status date
project endBack to PM-standards
3.5 Prj. Cost Mgmt – Why using the EVM?
Course corrections i h
70% of projects are:are easier when you have time to make small adjustments
Over budget Behind schedule
52% of all projects finish at 189% of their initial budget
EVM provides an And some, after huge
investments of time and money, are simply never
EVM provides an “Early Warning” signal for prompt y, p y
completed(Source: The Standish Group, CHAOS Reports)
corrective action!
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 9
3.5 Prj. Cost Mgmt – EVM Basic concept (I)
Question Answer AcronymHow much work should be done? Planned Cost PC (or BCWS*)( )
How much work is done? Earned Value EV (or BCWP**)
How much did the ‘is done’ work cost? Actual Cost AC (or ACWP**)
What was the total job supposed to cost? Budget at completion
BAC
What do we now expect the total job to cost?
Estimate at completion
EAC
Using the following example to explain EVM:
A project consisting of one work package, a initial Backup
EVM (I)
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 10
* WS= Work Scheduled, **WP= Work Performed
budget of 82 €, 12 month duration, status data date is the 1st of Sept
3.5 Prj. Cost Mgmt – EVM Planned Cost
Answering the Question:80
100
Planned CostBeginning the project St
art
End Project
PlanningHow much work should be done?
20
40
60
Euro PC = BCWS
e pl
anni
ng
0
20
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
NOW
Bas
elin
Budget at completion (BAC) = Sum of all PC’s
1. Initial planning
Determination of goals, assembling the team
WBS, work packages -> Project framework
2. Scheduling:
f Network diagram, Estimation of duration, assignment of resources
3. Bottom-up cost allocation
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 11
p
Budgeting: Draw a baseline plan-> Planned Cost {budgeted cost for work scheduled}
3.5 Prj. Cost Mgmt – EVM Earned Value
80
100
Earned Value PC Answering the Question:
Running the project Star
t
End Project
Controlling
20
40
60
Euro
How much work is done?
0
20
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
EV = BCWP
4. Calculating Earned Value Actual completion: the real work Actual completion: the real work
performed, expressed in %-completion of work package(s) at the date of reporting
R f th k f d ith th
NOW
82 €Work package
Reference the work performed with the budgeted Planned Cost
The Earned Value EVx [Currency] is the
75%Target Completion
61 5 €Target x [ y]budgeted cost for work performed
To calculate the overall EV: Sum up all the budgeted cost that were generated through
48%Actual Completion
61,5 €Value
BUT: Performance measurement indicates:
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 12
budgeted cost that were generated through all work packages corresponding to WBSEarned
Value 38 €
3.5 Prj. Cost Mgmt – EVM Actual Cost
80
100
Actual Cost PC Answering the Question:
Running the project Star
t
End Project
Controlling
20
40
60
Euro
AC= ACWP How much did the ‘is done’ work cost?
0
20
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
NOW
5. Actual Cost {actual cost of work performed}82 €Work package
Sum up the cost that incurred
For all past project activitiesActual
C 78 €
75%Target Completion
Until status date (t=x) 48%Actual
Completion
Cost 78 €
Cost variance
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 13
Earned Value 38 €
Cost variance Next step:
Calculate variances to analyze the performance
3.5 Prj. Cost Mgmt – EVM Analysis
80
100
SV-Analysis PCAC Answering the Question:
Project Controlling
Running the project Star
t
End
20
40
60
Euro Schedule
Variance = EV - PV
Answering the Question:How to analyze the project variance?
Schedule variance:0
20
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
EV (= BCWP) Schedule variance:• The difference between work performed
and work scheduled (negative = behind schedule)
NOWschedule)
• SV = EV – PC
• Example SV = 38€ - 61,5€ = - 23,5€100
CV A l iRunning the project St
art
End
Cost variance:• The difference between actual cost and40
60
80
Euro
CV-Analysis PCAC
Cost Variance = EV- AC • The difference between actual cost and
budgeted cost of work performed (negative = cost overrun)
• CV = EV AC0
20
40
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
E
EV (= BCWP)
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 14
• CV = EV – AC
• Example CV = 38€ - 78€ = - 40€NOW
3.5 Prj. Cost Mgmt – EVM Indices & Visualization
Schedule Performance Index (SPI) to analyze the time efficiency
SPI = EV / PCExample: SPI = 38€ / 61,5€ = 0,62
Cost Performance Index (CPI) to analyze the cost efficiencyCPI = EV / ACExample: CPI = 38€ / 78€ = 0,49
Source: pmbok
Backup
Cost Schedule Index (CSI) to analyze the probability of project recovery
SPI or CPI…=1 project on target
3,0
Backup Multi-PM
p j y
CSI = CPI x SPIThe further CSI is from 1.0, the less likely project recovery becomes.
target
>1 Means better than planned
<1 Means worse than planned
1,0on schedule
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 15
CSI = 0,62 x 0,49 = 0,30than planned
Source: Example by Primavera
0,0
3.5 Prj. Cost Mgmt – EVM Example
Program: Open Motorola Office in Warszawa P j t T i t ll f M t l W
Control & analyze the project! Budgeted Cost (01-15: 10.000€)
Transformation
Project: To paint walls of Motorola Warszawa Work package N° 32: Paint walls on level 12 (square of 500 m²)
in 6 Weeks Status Date of measurement: 12/24/05
Budgeted Cost of Work Scheduled (on Status Date) PC = 5.000€
Actual Cost: Budget for WP N°32: 10.000€ 200 m² are painted on Christmas eve Project plan: Polish painters are scheduled to create value of
5.000€
AC = 6.000€ Fulfillment of task: 40% Earned Value:
But: Highly qualified Indian painters are doing the job instead, which causes 1.000€ of additional costs!
EV = 10.000€ x 40% = 4.000€ SPI = 4000€/ 5000€ = 0,80 CPI = 4000€/ 6000€ = 0,67 CSI = 0 80 x 0 67 = 0 54Findings: early warning CSI = 0,80 x 0,67 = 0,54
To slow: Task is behind schedule: Less value has been earned than expected!
To expensive : Task is also over budget!
g y g
8000
10000
o
PC
p gMore cost has been incurred than was planned!
Project recovery most likely endangered! Initiate counter measures, immediately!
2000
4000
6000
Euro AC
EV
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 16
The earlier in a project's life cycle you identify such discrepancies between PC, AC and EV, the sooner you can take steps to remedy the problem.
0Dez-01 Dez-24 Jan-15
Status Date
3.5 Prj. Cost Mgmt – Forecasting with EVM
Project Estimation
What will be the final cost of the project?
EAC: Estimation cost At Completion
What will be the expected cost to finish the scheduled activity/ WBS/ project?the scheduled activity/ WBS/ project?
ETC: Estimation To Complete
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 17
3.5 Prj. Cost Mgmt – Forecasting Concept
Project EstimationEAC:
100% + X
Estimated project overrun based on
actual development of project
100% X
Hidden reserve
project
V EAC
100%
C =
BA
C -
EV E
com
plet
ion
ue tueET
C
Bud
get a
t c
Targ
et v
alu
Act
ual c
ost
Earn
ed V
al
0%
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 18
Actuals at status date Project planETC: Estimation To Complete
EAC: Estimation At Complete
3.5 Prj. Cost Mgmt – Forecasting ETC
Answering the Question:
Project Estimation
What do we now expect the remaining job to cost?
Estimated costs To Complete (ETC) Estimate for completing the remaining work
PMBOK defines three methods for calculation
Method N°1: Method N°2: Method N°3:
Based on EV Data
Method N 1:
“Based on a new estimate” The ETC equals the revised
estimate for the work remaining,
“Based on atypical variances”
Budget at completion minus
Method N 3:
“Based on typical variances” Method N°2 adjusted by
cumulative performance factor as determined by the performing organization
Independent, non-calculated estimate to complete all the work
i i id i lit
cumulative Eared Value, at the status date
Used when current variances not expected to occur again
(e.g. CPI) considering
Used when current variances expected to occur again
ETC = (BAC – EV) / CPI
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 19
remaining, considering reality
ETC = updated estimation ETC = (BAC – EV) E.g.: ETC = (82€ - 38€) = 44€
ETC (BAC EV) / CPI E.g.: ETC = (82€ - 38€)/ 0,49= 90€
3.5 Prj. Cost Mgmt – Forecasting EAC
Answering the Question:
Project Estimation
Estimated costs At Completion (EAC)What do we now expect the total job to cost?
Forecast of most likely total value
Based on project performance and risk quantification
For a schedule activity, WBS component or entire project
Method N°1: Method N°2: Method N°3:
Based on EV Data
Method N 1:
“Using a new estimate” Common approach, when the
original estimate assumptions
Method N 2:
“Using budget remaining ” Current actual costs plus the
budget required to complete the
Method N 3:
“Using the current CPI” Method N°2 modified by
performance factor (e.g. CPI)flawed or no longer relevant due to change in conditions
EAC = AC + ETC
remaining work
Used when current variances expected not occur again (Atypical variance)
Used when current variances expected to occur again (Typical variance)
EAC = AC + (BAC – EV) / CPI
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 20
EAC = AC + (BAC – EV) EAC = 78€ + (82€ - 38€) = 122€
EAC AC + (BAC EV) / CPI EAC= 78€+(82€ - 38€)/ 0,49= 168€
3.5 Prj. Cost Mgmt – Estimation findings
“Hmm, didn’t this Motrolan tell me something about a
Cone of Uncertainty?”
Once a project is 10% complete, the overrun at completion will not be pless than the current overrun.
Once a project is 20% complete, the CPI tend not vary from its current
l b th / 10%value by more than +/- 10%.
The CPI and SPI are statistically accurate indicators of final cost results.
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 21Sources: Defense Acquisition University / Computerworld 04-03-2006
3.5 Prj. Cost Mgmt – EVM Requirements & shortcomings
Requirements Threat to EVMBackup
EVM (II)
Definition of requirements & scope
Proper design of WBS Identify Activities / WP
Progress is not reported correctly
Deadlines are Identify Activities / WP
Identify dependencies
Identify relationships between activities
Deadlines are systematically not met
Definition of monster ti iti i factivities
Reasonable effort/ time estimation
Draw one (!) project baseline plan
activities, ranging from project start to end
No precise description of Draw one (!) project baseline plan Based on budgeted activities
Usually a network plan, displayed as Gantt Diagram
p pthe results achieved
…Gantt Diagram
Work measurement by control account/ time tracking
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 22
Good project management practices
http://www.4managers.de/10-inhalte/asp/earnedvalueanalyse.asp
3.5 Project cost management - Exercise
Students explain to students these basic terms:
B d t BudgetRun rate
o Impact of depreciation and e pense on r n rate?
Cost of capital
CostExpense
expense on run rate?
ROI
Cost
ofixed vs. variable
Asset o What states an asset in
Germany?
ROI
Savings
variable
oone time vs. i
Capital
Germany?o What happens in the GL
when you buy an asset?o Cost savings
o Productivity savings
o Cost avoidance
ongoing
Capital
Interest rate
o Cost avoidance
Depreciation
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 23
o How do we depreciate computing equipment in Germany?
3.5 Project cost management
IT project cost types: Capital Project Ongoingexpense expense
- H/W Servers Installation H/W vendor serviceStorage Support, Facility costMiscellaneous Networks (if applicable)
- S/W S/W license fee Installation S/W service fee
- Internal resources Pay roll, Bonus Pay roll, Bonus (support)
- Consulting / Contracting Custom S/W General Post go live consulting
Training User / IT training- Training User / IT training
- Documentation Documentation
- Travel Travel
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 24
3.5 Project cost management – Balance SheetConsol idated Balance Sheet of XYZ, Ltd. as at 31 December 2005
ASSETS
Non-Current AssetsProperty plant and equipment
Long term assets ResidualEK = AV+UV-FK
backup
Property, plant and equipment Goodwill Other intangible fixed assetsInvestments in associatesDeferred tax assets
Current Assets
U
InventoriesAccounts receivableInvestments held for tradingCash and cash equivalentsOther current assets
K nyEQUITY AND LIABILITIES
Capital and reserves Share capitalC i l
US/
UK
Ger
man
Capital reservesRevaluation reserveTranslation reserveRetained earningsMinority interest
Non Current Liabil i t iesNon-Current Liabil i t ies
Bank loansIssued debt securitiesDeferred tax liabilityProvisions
Current l iabil i t ies Short term assets
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 25
Current l iabil i t iesAccounts payableCurrent income tax liabilitiesShort-term part of bank loansShort-term provisionsOther current liabilities
Short term assets
3.5 Project cost management – Income Statement
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 26
Source: http://media.corporate-ir.net/media_files/nsd/amzn/news/q1_02/IncomeStatement.gif
3.6 Project quality management
“The Project Quality j yManagement processes include all the activities of the performing organization thatperforming organization that determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken ”undertaken.
(Source PMBOK p.179)
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 27
3.6 Project quality management – Overview
“Quality is the degree to which a set of inherent
Q-Standards: ISO 8402
ISO 9000
Planning
characteristics fulfill requirements”
PMBOK 2004, p. 180
Q Approaches:
ISO 9000
…
Q lit
Q-Approaches:
Six sigma
TQM
Assuranc
Quality Failure mode
Cost of quality
Assurance Control Effect
analysis
…
Business impact of poor quality:
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 28
Changes made by IT cause 80% of downtime/outages (Source: Gartner Group) Cost of poor quality: Re-work issues consume up to 33% of IT employee’s time
3.6 Project quality management – Processes
backup
Identification of relevant quality standards One of the key processes of Planning Process GroupQuality
Planning One of the key processes during development of the project planPlanning
Application of planned, systematic quality activities Ensure deployment of all processes to meet requirements Performed/ Supported by a quality assurance department Continuous Process Improvement: Increase effectiveness and reduce of
Perform Quality
Assuranceract
ion
Continuous Process Improvement: Increase effectiveness and reduce of waste and non-value-added activities
Assurance
Inte
r
Monitoring of results & determination of compliance with quality standards Statistical evaluation of outputs Performed throughout the project
P f d/ S d b li d
Perform Quality Control
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 29
Performed/ Supported by a quality assurance department
3.7 Project human resource management
“The Project Human Resource jManagement includes all the processes that organize and manage the project team ”manage the project team.”
(Source PMBOK p.199)
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 30
3.7 Project HR management – General
Step 1: Definition of roles Project planning stage, by initial project team Function/ skills required to accomplish activity Abstract
Project planning
False estimations during project planning occur
Project planning
planning occur
Early participation: Adds expertise &
strengthens the
Step 2: Human resources Project planning/ execution stage Replace roles with additional project members
commitment
The potential team members
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 31
Replace roles with additional project members Responsibilities ceded Defined
3.7 Project HR management – Processes
Identification & document of HR requirementsD t i ti f j t l d ibiliti
backup
Determination of project roles and responsibilities Reporting relationships Creation of staffing management plan (who-how-when, training needs, OD
impacts, rewards, compliance, release criteria...
HR Resource Planning
Obtaining the human resources to complete the project Recommended to involve project management team in the process
A i t f i t l t l b l t h d l littl l t t
Acquire Project Team
Assignment of virtual teams: global team, shared goal, little personal contactTeam
Improving the competencies and interaction of team members To enhance performancetio
n
To enhance performance, Improvement of team members’ skills Improvement of trust and cohesiveness (so called Teamgeist) The earlier the better, throughout entire project life cycle
Develop Project Team
Inte
ract
Manage Project T
Measures during execution stage to ensure/ enhance performance Performance tracking
Resolving issues & providing feedback
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 32
Team Resolving issues & providing feedback Coordination of changes
3.7 Organizational Structure (I)
Finance
Top management
Division nLogistic IT
Classic functional organization
Staff members grouped by specialty; coordination at the top level Finance
Deptmt 1
Deptmt 2
Division n
Team A
Team B…
Logistic
Deptmt 1
Deptmt 2
IT
Deptmt 1
Deptmt 2
level
Projects are department of a division & no other division involved
For projects with a very
Project A
Deptmt 3
Project n
Team C
…
Deptmt 3
Project B
Deptmt 3 For projects with a very
functional orientation
Project staff works also in line
Projectized organizationTop management
PMO Team members often collocated
In an organization a very high degree of project work required
Great deal of independence and
Project Manager
Staff
Project Manager
Staff
Project Manager
Staff
Project Manager
Staff
PMO
Great deal of independence and authority for project managers
Project managers often report directly to the CEO
PM supported by PMO
Staff
Staff
Staff
…Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 33Source: Prof. Mach, VL Projektmanagement, TU Berlin
PM supported by PMO… …… …
3.7 Organizational Structure (II)
Top managementComposite organization
Based on existing functional division
Finance
Deptmt 1
Deptmt 2
Project Team
PJ-Manager
PJ-Manager…
Logistic
Deptmt 1
Deptmt 2
IT
Deptmt 1
Deptmt 2
division
Approach for modern organiza-tions to handle critical projects
For each project a discrete
…
Deptmt 3
…
PJ-Manager
…
p
Deptmt 3
…
p
Deptmt 3project team is built out of the business organization, that may operate outside functional line
PM as staff function
Finance
Top management
Division n
Project Team A
Logistic IT
Project Team B Project Team is the project
manager and his support
Project manager coordinates Finance
Deptmt 1
Deptmt 2
Division n
Deptm 1
Deptm 2…
Logistic
Deptmt 1
Deptmt 2
IT
Deptmt 1
Deptmt 2
j gproject members
Staff function must be situated on top level to succeed through this powerful promotion
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 34
…
Deptmt 3
…
Deptm 3
…
Deptmt 3
…
Deptmt 3 Typical for line organizations
with few strategic projects
Source: Prof. Mach, VL Projektmanagement, TU Berlin
3.7 Organizational Structure (III)
Matrix PM
Possible due to certain forms of business organization:
Top management
business organization: divisional, matrix or tensor organization required
Blend of functional & projectized characteristics
Finance
Deptmt 1
Deptmt 2
Division n
Deptmt 1
Deptmt 2…
Logistic
Deptmt 1
Deptmt 2
IT
Deptmt 1
Deptmt 2ojec
t ea
m
p j
Project operates independently of business division
Affected departments directly responsible to project manager
…
p
Deptmt 3
…
p
Deptmt 3
…
Deptmt 2
Deptmt 3
…
Deptmt 2
Deptmt 3
Pro Te
responsible to project manager
Synonym: Like working with a loom – “Warp and weft”
Responsible for multiple constraintsResponsible for how work will be done by whom
Strong Matrix: Direct reporting to top management or centralized PM-Division
Balanced Matrix: Project Manager situated as line function. Reports to functional manager
Weak Matrix: Project manager di t l k f
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 35Source: Prof. Mach, VL Projektmanagement, TU Berlin/ pmbok 2004
coordinates, lack of power, almost functional organization
3.7 Organizational Structure – Pros & Cons
Projectized organization PM as staff function Matrix PM Classic functional PM
PM: Straight leadership
Distinct responsibility for project
Job assignment and
Project teams easily integrated in operating business units without creating major problems
Flexible integration of project collaborators
Professional responsibility rests with project manager
Interdivisional reasonability may speed project up
Job assignment and executive competence united
Flexible HR allocation
Comparatively good utilization of HR capacity
p j g
Pros
Inflexible organization
High amount of overhead
Lack of authority
Project manager lacks all-
Difficult to draw the outline of competency
Not designed to involve department of other divisionsg
Incorporation of temporal limited SME workforce
j gembracing responsibility for his project
Project manager’s integration back in the line organization after
Conflicts between “the project” and “the line”: departments loyalty to division or project?
Con
s
divisions
Set work priority to line or project
termination of the project might be difficult
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 36Source: Prof. Mach, VL Projektmanagement, TU Berlin
3.7 Project HR management – Job roles
Steering committee
Project sponsor(s)
g
Program ManagementIT and Business
The IT Job Roles: Architect
Business systems analyst
IT Projectmanager
BusinessProject
Manager
P j t T
Business systems analyst
Client system analyst
Configuration mgmt analyst
DB admin
Knowledge Analyst
Project Team
ITSubjectMatter
IT-Manager
Network engineer
Project manager
Quality manager
Security engineerIT MatterExpert
DocumentationSystems analyst
Process Design
SW engineer
IT-Strategist
Systems engineer
Systems operations analyst
Vendor relationship managerSystems analystSupportTechnical DesignSystem ArchitectureCodingProcurementProject Admin.Training of SME
Process DocumentationTraining of UsersTestingUATImplementation inBusiness
Vendor relationship manager
Specialist IT
Specialist DB
Technician
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 37
Project stakeholders Back to decision matrix
3.7 Project HR management
Practical expertise:p
Business process driven SME structure B i li t > f ti l PM f > Business process list -> functional PM for process area ->
SME / process design owner -> functional IT person Start to finish …
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 38
3.8 Project Communications Management
“The Project Communications jManagement is the Knowledge Area that employs the processes required to ensureprocesses required to ensure timely and appropriate generation, collection, distribution, storage, retrieval and ultimate disposition of project information ”project information.
(Source PMBOK p.221)
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 39
3.8 Project Communications Management
Information DistributionCommunications Planning
CommunicationsManagement
Performance Reporting Manage Stakeholders
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 40
Source: PMBOK
3.8 Project Comm. Management – Processes
Determining the information & communication needs of project’s stakeholdersWh d h t i f ti Wh Wh H ?
backup
Who needs what information. When, Why, How? Strongly influenced by organizational structure Process done by the earliest project phases Regularly reviewed throughout the project
Communications Planning
Making needed information available in a timely manner Implementing the communications management plan
R di t t d t f i f ti
Information Distribution
Responding to unexpected requests for informationDistribution
Collecting & distributing performance information Includes how resources are being used to achieve project objectivestio
n
Includes how resources are being used to achieve project objectives Generally provides information on cope, quality, cost, schedule Sometimes also on risk & procurement Preparation of reports comprehensively or by exception
Performance Reporting
Inte
ract
Manage St k h ld
Managing communications to satisfy the stakeholders’ requirements Usually project’s managers responsibility
Li it ti f di ti d i j t
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 41
Stakeholders Limitation of disruptions during project Enhances the ability of persons to operate synergistically Risk reduction of veering off track because of unresolved stakeholder issues
3.8 Project Comm. Management – Skills
Sender/Receiver model
Technical/ human/ organizational
Feedback loops
Obstacles to communication
Choice of media: which type serves best for distinct purpose? Email, phone, fax or personal meeting?a o pe so a eet g
Writing style: active/ passive/ sentence structure/ word choice
Presentation techniques: body language/ visual aids (Flipchart, Whiteboard,..)q y g g ( p , , )
Meeting management techniques: preparing an agenda, dealing with conflict
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 42
3.8 Project Comm. Management – Complexity
The more people are involved, the more complex the system getsthe more important becomes a good communication plan !
Complexity C = N° Relations / N° Elemets
3 People3 PathsC= 1
5 People10 PathsC= 2(12 People)
4 Teams
Reduce complexity
4 Teams6 Paths C= 1,5
10 People
by comm-unication between teams
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 43
p45 PathsC= 4,5
Alternate communication strategy
3.8 Project Comm. Management – Team Size
Time
Communication structure
Model: “Star”
Implication of communication effort
Project duration considering
communication
Time units
PM
Model: Star
Staff StaffStaff
Effort for communication
Best practice: projects become most effective with a
team size of four people
PM
Model: “All channel”
Theoretical project duration without communication
Staff
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 44
N° of team members
StaffStaff
3.9 Project risk management
“Project risk is an uncertain jevent or condition that, if it occurs, has a positive or a negative effect on at leastnegative effect on at least one project objective (scope/ time/ cost/ quality)”(Source PMBOK p.238)
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 45
3.9 Project risk management – Processes
Risk management planningHow to approach, plan, conduct risk related activities• To enhance the success of the other risk processes• To provide sufficient resources & time
Sh ld b l t d d i l j t h
1
Controlling
mt p
lan
backup backup
Risk identificationDetermining and documentation of risks • Encourage all project personnel to identify risk!
I i h h i lif l2
• Should be completed during early project phase
Ris
k m
gmr
Qualitative risk analysisPrioritizing the risks for further analysis/ action
3
• Iterative process throughout entire life cycle• Well-defined risk responsibility Output:
• Risk register updates
• Requested changesRis
k re
gist
er
Quantitative risk analysis
• To apply the most effective measures• Rapid, cost-effective means of establishing priorities• Revisited during project life cycle to stay current
3• Recommended corrective actions
• Organizational process updates
• Project Management Plan updates
Upd
ates
yProbability & consequences of risk, impact estimation• Performed on prioritized risks• Decision making in the presence of uncertainty • Use the tools to check out risk reduction
4
Risk monitoring & controldate
s
Risk response developmentProcedures to enhance opportunities/ reduce threats• Develop options, determine actions • Addresses the risks by priority• Inserts resources & activities into project plan
5
Pl i
Risk monitoring & control• Keep track of identified risks• Identify, analyze, planning for new
arising risks• Trend analysis, validation,
contingency reserve planning
6
Upd
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 46Source: PMBOK, p.237 ff
• Inserts resources & activities into project plan• Must be appropriate, realistic, timely, cost-effectivePlanning
Executing
contingency reserve planning• Ongoing process for LC
Updates
3.9 Project risk management – Categories
Project management risksTechnical, quality, performance risks
- e.g. poor usage of PM skills- e.g. using new technology or new releases- underperforming project
Risk categories
Organizational risks
R fli t
External risks
Cli t S li C tit- Resource conflicts- Cost, time, scope
- Clients, Suppliers, Competitors- Regulatory agencies, politics
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 47
Source: PMBOK
3.9 Project risk management – SW Projects
Implementation of formal risk management impeded by:
Emerging risk factors & lacking ability to provide accurate risk estimation
Early project break-up Creeping
User RequirementLack of reuse
Silver Bullet Syndrome
Requirements
Excessive Schedule PressureMost
Excessive Time to Market
Malpractice of Project
Management
serious risk factors
Inaccurate Metrics
Inadequate Low
Low Quality
g
qMeasurement Productivity
Risk survey by Caspar Jones, 1994:Risk survey by Caspar Jones, 1994: Back: Why projects fail
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 48
Assessment of several hundreds of organizations -> 100 risk factors identified
Few projects had more than 15 simultaneous active risk factors
Most projects had about 6 risk factors at any one time
Assessment of several hundreds of organizations -> 100 risk factors identified
Few projects had more than 15 simultaneous active risk factors
Most projects had about 6 risk factors at any one time
Source: http://www.goldpractices.com/practic
es/frm/index.php
3.9 Project risk management – Risk Matrix
Probability and Impact Matrix Quantitative Risk Analysis Technique Quantitative Risk Analysis Technique
To prioritize risks for further analysis
The risk score helps guide risk responses The risk score helps guide risk responses
Made up for different objectives (Cost, Time, Scope, Size, …)
Assign risk ratings based on their assessed probability & impact
Evaluation of each risk’s importance on objectives
P i it f tt ti i t Priority for attention is set by using the matrix
High Risk -> largest numbers ->may require priority action and aggressive response strategies
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 49
Source: Pmbok, p.252f
g g y q p y gg p g
Low Risk -> lowest numbers ->may not require proactive management action, keep on watchlistMedium Risk -> in-between numbers ->may require subordinated management action
3.9 Project risk management – Analysis
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 50
3.10 Project procurement management
“Project procurement j pmanagement includes the processes to purchase or acquire the productsacquire the products, services, or results needed from the outside the project team to perform the work”(Source PMBOK p.269)
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 51
3.10 Project procurement management
Documentingrequirements and potential
Plan contracting
requirements and potential sources
P t Procurement
Plan purchases & acquisitions
-requirements
-M/B, timing
g
Request seller responses -Bid & Quote
-Advertisement
Procurement plan
Procurement documents
Contract
Procurement Qualified sellers listClosed contract
-Screening systemContract closure
Contract documentation
Change requestContract
Resource availability
Select sellersg y
-Expert judgement
-Rating systems
Contract d i i t ti
yadministration
- Claim management
- Inspections & audits
- Payment system
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 52
Source: PMBOK 2004
- Payment system
Table of Contents
3 1 Overview
Basics of IT Project Management3.
3.1 Overview
3.2 Environmental Scan: Trends in IT
3 3 IT P j t Lif C l3.3 IT-Project Life Cycle
3.4 Project phases
3.5 Knowledge areas of project management
3.6 Key process areas of IT projects
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 53
IT PM IT PM IT PM
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 54
Table of Contents
3 1 Overview
Basics of IT Project Management3.
3.1 Overview
3.2 Environmental Scan: Trends in IT
3 3 IT P j t Lif C l3.3 IT-Project Life Cycle
3.4 Project phases
3.5 Knowledge areas of project management
3.6 Key process areas of IT projects
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 55
3.1 Overview
IT unspecific elements IT specific elements
1. Generic project management Processes Skills
p
1. Processes around S/W engineering
2. Dependencies on infrastructure
p
Skills
2. Conversation Always involved: Business Organizational - at least process
services in the project
3. Strong interaction between IT people and non IT people
Organizational - at least process, sometimes also hierarchy 4. Product of the project is an IT
solution
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 56
3.2 Environmental Scan: General Trends in IT
Cost/ Risk Organization/ Business Technology
IT cost main topic for the last 3 years
Currently, IT spending
Centralization Global player vs.
International player
Standardization Increasing interaction with
outsourcers on y gslightly increasing / stabilizing
More IT cost cutting than business driven
Ri k f i d IT
y More regional than local,
more global than regional Less make - more buy More powerful CIO's
infrastructure, desktop, networks and software engineering
Technology changes: Decreasing revenue for S/W
Risk of over engineered IT work controls
More powerful CIO s More control over budgets,
project release & portfolio Outsourcing gets more and
more questioned: Negative
Decreasing revenue for S/W and H/W vendors
Service Orientated Architecture
more questioned: Negative experiences and disadvantages becamemore transparent
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 57
3.2 Trends in IT - Conclusion
Factors Impact Conclusion
Complexity
Global and international
Factors Impact Conclusion
IT-Projects
IT personnel needs to be more
managerial, Better processes and discipline g ,process
orientated,International,
Business
Requirements Better skills levels, project managers and
management support, language skills
Concepts for organizational development
orientated Support models
Growing shadow ITRisk Slow down, inflexibilities, growing
complexity and hidden cost increases
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 58
Table of Contents
3 1 Overview
Basics of IT Project Management3.
3.1 Overview
3.2 Environmental Scan: Trends in IT
3 3 IT P j t Lif C l3.3 IT-Project Life Cycle
3.4 Project phases
3.5 Knowledge areas of project management
3.6 Key process areas of IT projects
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 59
3.3 IT project life cycle – Findings
Tremendous amounts of project live cycles and S/W development approaches available!
Concisely defined
Requirement against project life cycle
Allows to be faster and better than without Self explanatory wherever possible Business approval and buy in elements built in
Model
Process - not forms - orientated, defined & documented on working level
Flexible to changes within the project Requires little overheadq Combines engineering and non engineering workforceImplementation
Usable in practice = not overly complicated or formal Using standard terms and language Understandable still for non IT employees Project has to support line function processes during and after project!
Practice
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 60
Organized handover and project closure process
3.3 IT project life cycle: The layer concept
Business problem
Functional specification
Organizationp
DP concept
Implementation
Functional ifi i
Functional ifi iFunctional
DP concept
specification
DP concept
specificationFunctional specification
DP concept
Implementation ImplementationImplementation
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 61
Data FunctionSource: A.W. Scheer p. 17
Controlling
3.4 SW Development life cycle (I)1 2 3 4 51 2 3 4 5
Development Cycle Employment Cycle
≈
30%
Problem Analysis and
Requirement Definition
130%
Design
215-20%
Implementation
315-20%
Testing
45%
Installation
5
Utilization
6 ≈
Quantity and TimeOutline
Feasibility
Project Guidelines
Requirements Document
System Design(Modularization,
Interfaces)
Modul Developement(Structure, Data,
Procedures)
Programming
Coding
Application Test
System Test
Integration Test
Acceptance Test
Introduction
Maintenanceand
Service
q
Discovery of Failures 42%
Error Rate 36%Error Rate 64%
Discovery of Failures 58%
Relative Cost for Bug Fixing (related to Implementation Phase)
0.2 0.5 1 2 5 10 - 20Effort
for bug fixing
Present cost
Cost
Present cost function
Desirable cost function ≈
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 62
40% of Production Cost 20% of Production Cost 40% of Production Cost min. 200% of Prod. Cost
Time
≈≈
3.3 IT project life cycle – Project phases
Project phases1 2 3 4 5
Evaluation Preparation Cutover Post go Main-Evaluation Preparation Cutover glive tenance
SW development
life cycle
IT projects are not always equivalentIT projects are not always equivalent to the development of technical software
P j t lif l S ft d l t lif l
Linkage to strategy and programs etc.
Project life cycle
Do not address all issues to be solved around a project
Software development life cycle
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 63
Social issues e.g. OD, rewards Generic project life cycles might be to unspecific
3.3 IT project life cycle: Cycle for entire project
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 64
1 2 3 4 5
3.4 SW development models (I)
1 2 3 4 5
Spiral Reuse /
Models specific to
ERPUSDP /
RUP
1 2 3 4 5
V models
Spiral models
Sawtooth
Reuse / UML
Software development
Software development SharktoothWaterfall
model pmodels
pmodels
XPSequentialmodels
Most popular approaches*
*S 3 P 127 148 2 P 12 18 4 47 49 4
Further models:• Prototyping
E t i
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 65
*Sources: 3: Page 127 – 148, 2: Page 12 – 18, 4: 47 – 49, 4http://collaboration.csc.ncsu.edu/CSC326/Website/lectures/process_10_23.ppthttp://www.cs.hmc.edu/courses/2004/spring/cs121/lectures/02.methods.pdf
• Extreme programming
• Agile processes
• Chaos Model …
3.4 Software development models (II)1 2 3 4 5
ProjectInitiationProcess
ConceptExploration
Process
SystemRequirementsElicitation
PrototypeDemo 1
PrototypeDemo 2
Client
Manager
DesignReview
ClientAcceptance
SystemIntegration
& Test
1 2 3 4 5
RequirementsProcess
SystemAllocationProcess
DesignProcess
Implementation
SystemDesign
ObjectDesign
RequirementsAnalysis
UnitTest
DeveloperComponentIntegration
& Test
pProcess
InstallationProcess
Operation &Support Process
Verification& Validation
ProcessImplementation
Waterfall Model Sharktooth Model
Determine objectives,alternatives, & constraints
Evaluate alternatives,identify & resolve risks
Riskanalysis
SystemRequirements
AnalysisOperation
i
Riskanalysis
Riskanalysis
Prototype1Prototype2
Prototype3
y
C f
P1
Preliminaryi
SoftwareRequirementsElicitation
ClientAcceptance
RequirementsAnalysis
SystemIntegration
& Test
ComponentIntegration
Develop & verifynext level producPlan next phase
Requirements
Development
Integration
plan
plan
plan
Requirements
Design
validation
validation
Software SystemProduct
Concept ofoperation
RequirementsDesign
Code
Unit Test
DetailedDesign
P2
Implementation
Design
DetailedDesign
UnitTest
g& Test
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 66
pIntegration & Test
AcceptanceTest V- ModelSpiral Model
3.4 Software development models (III)1 2 3 4 5
SystemRequirementsElicitation
PrototypeDemo 1
PrototypeDemo 2
Client
Manager
DesignReview
ClientAcceptance
SystemIntegration
& Test
ProjectInitiationProcess
ConceptExploration
Process
1 2 3 4 5
SystemDesign
ObjectDesign
RequirementsAnalysis
UnitTest
DeveloperComponentIntegration
& TestRequirementsProcess
SystemAllocationProcess
DesignProcess
Implementation
Implementation
Waterfall Model Sharktooth ModelExercise: ‚Informatik‘ students to present a 2 i t ti f h f th
pProcess
InstallationProcess
Operation &Support Process
Verification& Validation
Process
Determine objectives,alternatives, & constraints
Evaluate alternatives,identify & resolve risks
Risk
Riskanalysis
Riskanalysis
SystemRequirements
Analysis
SoftwareRequirements
Operation
Client
2 min presentation for each of these
Requirementsplan Software System
Product
Riskanalysis
Prototype1Prototype2
Prototype3
Concept ofoperation
RequirementsDesign Detailed
Design
P1
PreliminaryDesign
equ e e tsElicitation Acceptance
RequirementsAnalysis
SystemIntegration
& Test
ComponentIntegration
& Test
Develop & verifynext level producPlan next phase
Development
Integration
plan
plan
Requirements
Design
validation
validation
g
Code
Unit Test
Integration & TestAcceptance
Design
P2
Test
Implementation
DetailedDesign
UnitTest
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 67
V- ModelSpiral Model
Table of Contents
3 1 Overview
Basics of IT Project Management3.
3.1 Overview
3.2 Environmental Scan: Trends in IT
3 3 IT P j t Lif C l3.3 IT-Project Life Cycle
3.4 Project phases
3.5 Knowledge areas of project management
3.6 Key process areas of IT projects
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 68
3.4 Project phases – Evaluation
1 2 3 4 5
Steps of evaluation phase
1 2 3 4 5
01. Project team and org
02. Resourcing02. Resourcing
03. Funding
04 Definition of project processes04. Definition of project processes
05. High level approach
06 High level plan06. High level plan
07. Scope definition
08 R ibiliti M t i08. Responsibilities Matrix
09. Communication Plan
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 69
10. High Level Design
3.4 Project phases – Evaluation1 2 3 4 5
A s is s i tu a t io n a n a ly s is
W o rk in g s e s s io n s1 . . . .n
n = f ( p r o je c tc o m p le x it y )
1 2 3 4 5
P ro c e s s to b e (R e ) -d e s ig n e d
W e a k n e s s e s o f a s is Study world classBenchmark
( ) gS c o p e = H ig h le v e l
A lte rn a t iv e s o lu t io n s(H ig h le v e l c o n c e p t )
1 . . . .m a l t m < 5
Baseline for processperformance
S c o r in g c r i te r ia
E x p e r t g ro u pS c o re s a n d e s t im a te s
S c o p e p o te n t ia l c h a n g e se g .
R e s o u r c in gR is k sC y c le t im eF u n d in g
1 . . .z c r i t e r ia z < 2 0
D e c is io n m a t r ix
P re fe r re d a lte rn a t iv e to b e p ro p o s e di l 1 d t
R e s u lts
1 . . . .nin la y e r 1 d o c u m e n t
L a y e r 1 D o c u m e n t
P ro p o s e dp ro je c t
d e f in it io n P ro p o s e dh ig n le v e l
d e s ig n
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 70
A p p ro v a l / S ig n o f f p ro c e s s
3.4 Project phases – Preparations
1 2 3 4 5
Steps of preparations phase
1 2 3 4 5
01. Planning and coordination
02. Functional Designg
03. Development
04 Infrastructure and Databases04. Infrastructure and Databases
05. Preparation of Cutover Phase
06 Preparation of Post Going Live Phase06. Preparation of Post Going Live Phase
07. Preparation of Maintenance Phase
08 L t h t d d t ti ti08. Legacy systems phase out and record retention preparations
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 71
3.4 SW Development life cycle (II)1 2 3 4 5
Proper work supported by adequate tools and methods is required during the initial phases
1 2 3 4 5
during the initial phases
because early phase errors have such a tremendous impact on consequential costs
Time Cost Defect detection
q
More than half of project time is required before the implementation phase
So you’d rather start
Project Cost: 40-20-40 Rule Defect Cost: Double from
phase to phase!
58% of all defects detected during utilization phase
Requirement of So you d rather start coding after you know all the requirements and after set up the design
Referred to implementation phase, bug fixing during utilization phase requires 10 to 20 times more effort
Shifting focus to first two
Requirement of structured and proper work during development cycle!
Shifting focus to first two phases does not mean a project gets more expensive: compare grey areas!
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 72
Increasing maintenance & service costs accelerate deposition/ retirement
3.4 Software development models - Findings
1 2 3 4 5
Don‘t mix up S/W package implementation with S/W
1 2 3 4 5
p p g pdevelopment
Models Sequential models are good to explain and plan the sequence
of events in the project. Iterative models are more realistic but more complicated to Iterative models are more realistic but more complicated to
plan for, but will be used in practice
Different approaches are partially overlapping Overlap of generic project management and IT-specific p g p j g p
approaches
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 73
Recommendation: Use mixture for different purposes!
3.4 Project phases – Cutover
1 2 3 4 5
Steps of cutover phase
1 2 3 4 5
01. Execute cutover plan
02. Go Live decision
03. Execute Contingency plan OR
04 Go Live04. Go Live
05. Have external resources stand by
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 74
3.4 Project phases – Decision Matrix
1 2 3 4 51 2 3 4 5
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 75Go Decision Conditionally Go Decision No-Go Decision
3.4 Project phases – Cutover
1 2 3 4 5
Cutover = Transition Period to S t Prep Phase Cutover
1 2 3 4 5
new System
Go/ No-Go-Decision based on Decision-Matrix and No
Prep Phase Cutover
Go/NoGo-Decision
Management-Go Is the System ready?
P i l t t d C t PlCutOver Plan
Execution Previously tested Cutover Plan
N Dry Runs
Issue Resolution Process
Issue Resolution
Y I l d? Issue Resolution Process
Contingency Plan
Go life Decision
No Yes
No
Issues solved?
Go life Decision
Go life Decision Did the Cutover work ok?
Contingency PlanGo life
Yes
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 76
3.4 Project phases – Purpose of decision matrix
1 2 3 4 5
Practical expertise: Used to commit responsible project members to the delivered
1 2 3 4 5
Used to commit responsible project members to the delivered result (process/ task)
Active manner to ensure participation & to turn abstract into very personal responsibility
Serves as a tool to track project progress and readiness/ health status to go live with the softwareg
Final Go-Live Decision made in a meeting of the project’s steering committee
Quality assurance: the responsible person is asked directly by the project manager about his/her opinion on the Go-Live readiness in front of the project owner
It is strongly recommended to interact and communicate with the responsible BEFORE the final Go-Live-question is asked!
( )
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 77
Finally the responsible IT Project manager(s) AND the management hold a vote about the Go-Live-Decision Steering
committee
3.4 Project phases – Post Going Life
1 2 3 4 5
Steps of post going life phase
1 2 3 4 5
01. Fix remaining issues
02. Run prioritization and pissue tracking processes
03. Resource focus
04. Requires short cycle times on issue resolution
05. Defined project end criteria
06 P t t / l06. Post mortem / lessons learned
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 78
3.4 Post Project – Maintenance
1 2 3 4 51 2 3 4 5
IT related steps: Business related steps:
01. Run system and related IT processes
02. Audit Production System
p
08. Determine future Business Direction
p
y
03. Measure System Performance
04. Monitor & Report to System Problems
09. Execute new processes
10. Use maintenance and not project related IT processes for changes.
05. Decommission former System
06. Refine Production System
related IT processes for changes.
07. Propose future Technical Direction
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 79
3.5.1 Proj. Int. Mgmt – Practical Expertise (I)
Development process
Recommendations for small & midsize IT projects:
Overhead for planning must correspond with project’s size: PMBOK recommends lots of partial plans -> be careful!
p p
p p Don‘t overcomplicate planning with too many documents, etc.
High level plans can be made initially but are not as accurate Detailed plan:
Only after materials for project definition are nearly complete Create detailed plan one time Create detailed plan one-time Derive milestone date targets. Team members to deliver the estimates and be mainly involved
Assumptions + constraints, expectation management, be very clear and document! (But these get usually forgotten later…)
The leading project manager as well as the core team should agree that the
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 80
The leading project manager as well as the core team should agree that the plan is feasible and a formal approval should take place
3.5.1 Proj. Int. Mgmt – Practical Expertise (II)
Execution Control
Recommendations for small & midsize IT projects:
Date commitments only after detailed plan and resource estimates and commitments are done
Pre-structure your control structure and related mediadone
Drive completion against milestones against detailed action lists
and related media
Report against milestones and
Plan rework 1 or 2 times max throughout the project, basically use baseline plan.
C h k
rollup tasks using progress trackers
Cross check Estimated capacity vs. committed capacity
Against cycle time based plan Against cycle time based plan
Usage of tools recommended, but take care of overhead
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 81
Baseline the plan to report plan deviations (also look at EVM)
Table of Contents
3 1 Overview
Basics of IT Project Management3.
3.1 Overview
3.2 Environmental Scan: Trends in IT
3 3 IT P j t Lif C l3.3 IT-Project Life Cycle
3.4 Project phases
3.5 Knowledge areas of project management
3.6 Key process areas of IT projects
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 82
P d Product Product PProcessesocesses
Carlo Selwat: International IT project management SYSEDV/ITPM SS 2005/www.sysedv.tu-berlin.de 83