CHAPTER 3

PROJECT MANAGEMENT

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Chapter Objectives • Explain project planning, scheduling, monitoring and

reporting• Describe work breakdown structures, task patterns and

critical path analysis• Explain techniques for estimating task completion times

and costs• Describe various scheduling tools, including Gantt charts

and PERT/CPM charts• Analyze task dependencies, durations, start dates, and

end dates• Identify examples of project management software and

explain how these programs can assist you in project planning, estimating, scheduling, monitoring, and reporting

• Discuss the importance of project risk management• Understand why projects sometimes fail

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Overview Of Project Management

• Project Management includes planning, scheduling, monitoring, and controlling and reporting an information system development

• A successful project must be completed on time, within budget, and deliver a quality product that satisfies users and meets requirements

• Project manager or project leader-usually a senior system analyst or an IT department manager (if large project)

• Analyst, programmer/analyst-manage small project• Project coordinator-handles administrative

responsibilities for the team and negotiates with users who might have conflicting requirements or want changes that would require additional time or expense.

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If one factor changes, adjustment must be made to keep things in balance

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Budget

Time

Quality

Project Success

•Project managers typically perform four main tasks:▫Project planning-identifying all project tasks and

estimating the completion time and cost of each

▫Project scheduling-involves the creation of a specific timetable, usually in the form of charts. Selecting and assigning staff to specific tasks

▫Project monitoring and controlling-guiding, supervising and coordinating the project team’s workload

▫Project reporting-regular progress reports to management, users and the project team itself.

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Project Activities and Planning Steps

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3 key steps in project planning:Step 1: create a work breakdown

structure•Breaking a project down into a series of

smaller tasks.•Should understand 2 chart types:

▫Gantt chart▫PERT/CPM chart

Gantt Charts

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PERT/CPM Charts• The Program Evaluation Review Technique

(PERT) • Critical Path Method (CPM) • The distinctions between the two methods have

disappeared over time, and today the technique is called either PERT, CPM, or PERT/CPM

• PERT/CPM is called a bottom-up technique because it analyzes a large, complex project as a series of individual task.

• Once you know the tasks, their duration, and the order in which they must be performed, you can calculate the time that it will take to complete the project

• PERT chart are more useful for scheduling, monitoring and controlling the actual work.

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Identifying tasks in a work breakdown structure

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•A work breakdown structure must clearly identify each task and include an estimated duration•Task or activity : any work that has a beginning and end and requires the use of company resources ( people, time, money)•Event or milestone: recognizable reference point that you can use to monitor progress.

E.g.: Task and events that might be involved in the creation, distribution and tabulation of questionnaire.

Steps in WBS• Listing the task

▫Highlighting the individual task▫Adding bullet to with column for task number,

description,duration and predecessor tasks.

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• Estimating Task Duration▫Person-day: represents the work that one

person can complete in one day▫Some tasks can be divided evenly so it is

possible to use different combinations of time and people, up to a point

▫In most systems analysis tasks, however, time and people are not interchangeable

▫Formula (B+4P+W) 6

Example: a project manager estimate that a file conversion task could be completed in as few as 20 days or could take as many as 34 days,but most likely will require 24 days. Calculate the expected task duration.

Answer: (20+(4*24)+34)=256

▫Factors affecting Duration: Project size Human resources Experience with similar projects Constraints

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B=best-case estimateP=probable -case estimate

W=pessimistic/worst –case estimate

Displaying the WBS –Gantt Chart

•Task pattern: task in a work breakdown structure that arranged in a logical sequence

•Main type of Task Patterns▫Dependent Tasks-when task must be completed one

after another▫Multiple successor tasks-when several tasks can

start at the same time Concurrent task Predecessor task Successor task

▫Multiple Predecessor Tasks-a task requires two or more prior tasks to be completed before it can start

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Step 2:Identifying Tasks Pattern

PERT/CPM Charts

• PERT/CPM Tasks▫Task box▫Task ID▫Task name▫Task Duration▫Start Day/Date▫Finish Day/Date

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Dependent task:

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1 2

Dependent task & multiple successor tasks:

1 23

4

5

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Dependent task, multiple successor and multiple predecessor task tasks:

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1

73

4

5

6 82

•Complex Task Patterns▫When various task patterns combine, you

must study the facts carefully in order to understand the logical sequence

▫A project schedule will not be accurate unless the underlying task pattern is logically correct

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Step 3: Calculate the Critical Path▫ Critical path is a series of task if delayed, would

affect the completion date of the overall project▫If any task along the critical path falls behind

schedule, the entire project is delayed▫A critical path includes all tasks that are vital to the

project schedule▫If necessary, a project manager can reassign

resources to keep the project on schedule▫Slack time –amount of time that the task could be

late without pushing back the completion date of the entire project.

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•A PERT/CPM Example with Five Tasks

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Project Monitoring and Control• The project manager must keep track of tasks

and progress of team members, compare actual progress with the project plan, verify the completion of project milestones, and set standards and ensure that they are followed

•Monitoring and Control Techniques▫Structured walkthrough-review the work of

other systems analyst, programmers review the work of other programmers as a form of peer review

▫Called design reviews, code reviews, or testing reviews

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•Maintaining a Schedule▫Maintaining a project schedule can be a

challenging task▫The better the original plan, the easier it will

be to control the project▫If enough milestones and frequent

checkpoints exist, problems will be detected rapidly

▫Project managers often spend most of their time tracking the tasks along the critical path

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•Project status meeting▫Project managers schedule regular meetings

to update he team and discuss project status, issues problems and opportunities.

▫The session give team members an opportunity to share information, discuss common problems and explain new techniques.

▫Also give the project manager an opportunity to seek input and conduct brainstorming sessions

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Project Reporting

Project Reporting

•Project Status Reports▫A project manager must report regularly to

his or her immediate supervisor, upper management, and users

▫Should explain what you are doing to handle and monitor the problem

▫Most managers recognize that problems do occur on most projects; it is better to alert management sooner rather than later

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Members of the team regularly report their progress to the project manager ,who in turn reports to management and users.

•Project Status Meetings

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Project Management Example•PERT /CPM •Steps to create PERT/CPM chart:

▫Step1:create the work breakdown structure Identify tasks, determine task dependencies,

enter task name,ID and task duration▫Step 2: enter start and finish times

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•Transforming a Task List into a PERT/CPM Chart

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•Transforming a Task List into a PERT/CPM Chart

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•Software driven example:▫A Sample Project Using Microsoft Project

and Open Workbench

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▫A Sample Project Using Microsoft Project and Open Workbench

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Risk Management•Every IT project involves risks that

systems analysts and project managers must address

•A risk is an event that could affect the project negatively.

•Risk management is the process of identifying, analyzing, anticipating and monitoring risks to minimize their impact on the project

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MS Excel XY chart type can be used to display a risk matrix that shows risk probability and potential impact

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Project Risk Management

• Steps in Risk Management▫Develop a risks management plan▫Identify the risk▫Analyze the risk

Qualitative risk analysis Quantitative risk

▫Create a risk response plan▫Monitor risks

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Risk Management Software Tools▫Most project management software programs, such

as Microsoft Project, contain various tools that a project manager can use

▫The IT team can make a recommendation regarding the risks

▫Depending on the nature and magnitude of the risk, the final decision might be made by management

• Project Management Software Examples▫Microsoft Office Project ▫Open Workbench▫Open-source software

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Managing for Success•When a project develops problems, the

reasons typically involve business, budget or schedule issues

Business Issues▫The major objective of every system is to

provide a solution to a business problem or opportunity

▫A system that falls short of business needs also produces problems for users and reduces employee morale and productivity

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Budget Issues▫Cost overruns typically result from one or

more of the following: Unrealistic estimates Failure to develop an accurate TCO forecast Poor monitoring of progress and inadequate

reaction to early signs of problems Schedule delays due to unanticipated factors Human resource factors

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Schedule Issues▫Problems with timetables and project

milestones can indicate a failure to recognize task dependencies, confusion between effort and progress, poor monitoring and control methods, personality conflicts among team members, or turnover of project personnel

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The Bottom Line•Successful Project Management

▫When problems occur, the project manager’s ability to handle the situation becomes the critical factor

▫Sometimes, when a project experiences delays or cost overruns, the system still can be delivered on time and within budget if several less critical requirements are trimmed

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• Successful Project Management– If a project is in trouble because of a lack of

resources or organizational support, management might be willing to give the project more commitment and higher priority

–A typical response is to push back the completion date

–Option only if the original target date is flexible and the extension will not create excessive costs or other problems

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Chapter Summary• Project management is the process of planning,

scheduling, monitoring and controlling, and reporting upon the development of an information system

• Begins with identifying and planning all specific tasks or activities

• Can use graphical tools such as Gantt charts and PERT/CPM charts to assist in the scheduling process

• Project managers are responsible for risk management

• Every successful information system must support business requirements, stay within budget, and be available on time

• Sound project management involves the same skills as any type of management

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Review question

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1. What is project management and what are its main objectives?

2. What are the key steps in project planning?3. Define the following terms: best case estimate,

probable case estimate, and worst case estimate4. What is critical path, and why is it important to

project managers? 5. What are some project reporting and

communication techniques?6. What is risk management and why is it important?7. State the steps in risk management.