Project Management presentation - UnivAQ Management... · Communicating with all the stakeholders Tracking team members performance Using a change control process to control the scope

Project Management

Focus on Key AreasSergio Cavaliere

IBM Global Business Services

Project Management – Focus on Key AreasL’Aquila - January 14, 2008

Agenda

� Basic Definitions� Assessing and Validating opportunities� Establishing Relationships� Organizing the Project� Working Breakdown Schedule� Estimating and Scheduling� Project Control� Change Management� Schedule and Cost Control� Attachments

Basic Definitions - 1

� Program:� a group of interrelated projects managed together

� Project:� a finite endeavor that

� has a definite beginning and a definite end� is unique� consumes resources

� Subproject:� part of a project with a level of independence

Basic Definitions - 2

� Project Management:� applying knowledge, skills, methods and tools to project activities, subprojects and programs to meet or exceed stakeholder needs and expectations

� Project Management involves managing:� Communication� Coordination� Integration� Execution� Planning� Budgeting� Control� Teams

Assessing and Validating Opportunities -1

� Understanding objectives

� Ensure alignment of opportunity to objectives

� Validation during project life

� Understand business measurements used in opportunity selection and validation process

Assessing and Validating Opportunities - 2

� Identifying Opportunities

Wants and Needs

Understandenvironmentand perform

segmentation

PerformPortfolioAnalysis

DevelopStrategies and

Plans

Optimize Plansand AssessPerformance

Assessing and Validating Opportunities - 3

� Project Selection Methods

Numeric• Portfolio analysis

• Opportunities•Future•Perceived

• Profitability measures• Return on sales (ROS)

• Return on investments (ROI) / Return on assets (ROA)• Gross Profit (GP)• Net present value (NPV)

Non Numeric• Operating necessity• Product / Activity extension• Competitive necessity

Establishing Relationships - 1

� Definitions

� Contract

� Elements of a Contract

� Contract management

An agreement that establishes an enforceable legal relationship betweentwo parties

Agreement (offer / Acceptance)Competent PartiesMutual ConsiderationLegal Purpose

The process of planning, forming and administering an agreement to buyan/or sell goods and/or services from one party to another

Establishing Relationships – 2

� Major Contract Types

� Firm-fixed-price (FFP)The buyer pays the seller a set amount, regardless of the seller’s cost

� Cost-Plus (FFP)The buyer reimburses the seller for the seller’s allowable costs plus a fixed amount of profit (fee) (CPFF), or the buyer sets an incentive fee (CPIF) for performance

� Time-and-materials (T&M)The buyer reimburses the seller for labor expended (negotiated price/unit of time) and cost of materials provided

� Level-of-effort (LOE)Is generally characterized by a uniform level of activity over a specific period of time for a negotiated pric

� Indefinite delivery, indefinite quantity (IDIQ)Fixed unit price for any quantity; may include minimum guarantees


� Contract Types / Performance Measurements vs Risks

Types of Contracts

Fixed-Price T&M(*) Cost-reimbursement

FFP FP/EPA FPI CR CPIF CPAF CPFF CPPC

Low

High

High

Low

Buyer’s risk

Seller’’s risk

* T&M contracts typically involve higher levels of risk for buyers


� Major Contract Payment Approaches

$

T

100%Substantially allat completion(purchase of commerciallyavailableproducts)

$

T

100%

Billing ascosts incurr

$

T

100%Agreedincrementsover time

$

T

Equalincrementsover time

$

T

100% Agreedincrements at completeddeliverables

100%

$

T

100%

Substantiallyall at start-up

Organizing the Project - 1

Responsibilities of a Project Manager - 1

Plan the Project� Technical activities� Project Management activities

Initiate the project kichoff

Manage the triple constraints to client/project sponsor satisfaction�Schedule�Cost�Specification

Organize the project, which includes:�Forming the project plan�Setting up the systems to document the project�Setting up project plans and processes by which the project will be controlled�Confirming the project charter


Responsibilities of a Project Manager - 2

Manage / direct the project by:� Tracking the technical performance aspects of the project schedule and cost� Tracking the financial performance of the project� Assessing and managing the project risk factors� Dealing with issues and problems that occur during the project� Tracking suppliers’ performance against their contracts� Ensure client/project sponsor satisfaction� Building and maintaining the morale of the project team� Communicating with all the stakeholders� Tracking team members performance� Using a change control process to control the scope

Follow defined processes that enable to plan, organize and managethe project


Influence of Organizational Structure

Project Characteristics

OrganizationType Functional

Little or none

Virtually none

Part-timeProject manager’s role

Project manager’s autority

Percentage of performingorganization full-time assigned personnel

Common titles forproject manager role

Project coordinator / Project Leader

Project coordinator / Project Leader

Matrix

Weak Balanced Strong

Projectized

Limited Low tomoderate

Moderate tohigh

Project management administrative staff

0-25% 15-60% 50-95% 85-100%

High toalmost total

Part-time Full-time Full-time Full-time

Project manager / Project Officer

Project manager / Program manager

Project manager / Program manager

Part-time Part-time Part-time Full-time Full-time


Projects in a Matrix Organization

Team members are drawn from various line or functional units in a hierarchical organization

The project organization is superimposed on the functionalorganization

Matrix organization usually allow more efficient use of resources butare complex and present significant challenges to the project manager

Challenges involve:� Authority/Responsibility of the Project manager and the Functional

Manager� Communication flows (within the team and to/from other groups)� Global membership� Virtual team interaction� Team allocation of the team members


Projects in a Matrix Organization: Team Charter

Sets performance objectives

Sets roles and responsibilities for the project team members

Sets the ground operations rules including:� Administration guidelines� Conflict management (Decision Making)� Escalation� Communication (Meeting Protocols, Points of Contact, etc.)� Status Reporting

Work Breakdown Structure - 1

Defining the Scope of Work

Needs – Client/project sponsor requests, ideas and business requirementsRequirements – Statements of desire for a future systemExclusions – Statements of not-included for a future systemRequirements Baseline – Statements of committment for a future system (alsoreferred to as specifications or specifications baseline

RequirementsBaseline

Needs

Esclusions

Requirements

Work Breakdown Structure -2

Pitfalls in Defining the Requirements Baseline

� Dealing with inherently unclear requirements

� Dynamic nature of requirements� Uncertainty regarding who will use the product

� Identifying solutions prematurely

� Addressing requirements of multiple clients/project sponsors

� Developers’ values may affect and distort requirements

� Selective filtering of requirements


WBS - A family-tree division of activities (work tasks) that completelydefine the project. Size and number of levels vary with project.


WBS – The WBS must be completed to relate alla elements to one anotherand to the total product.


Characteristics of a WBS Work Element

� Each work element results in a deliverable

� External – given to client /project sponsor � Internal – used by the project

� Delivers a distinct, identifiable product o result

� Has definitive, verifiable completion criteria

� Can be clearly assigned as the sole responsibility of a single organizational unit or individual

� Identifies the work that will be done

Level of detail should reflect level of control


WBS Dictionary

� Contents of a WBS Dictionary

� Work element ID� Work package title� Description of work� Work to be accomplished� Deliverable/Objective� Completion criteria� Ownership/Participation� Predecessor/Successor

� Benefits of a WBS Dictionary

� Clarifies ownership of each element � Clarifies content an boundaries of each element� Helps to identify “hidden issues” and leads to greater accuracy and completeness of

the WBS� Points out information needed to formulate estimates� Serves as a comprehensive WBS information repository

Estimating – 1

Definitions

� Estimating: evaluating the resources (labor, equipment, facilities) needed to complete project activities

� Cost Estimating: evaluating the cost of the resources needed to complete project activities

� Cost Budgeting: allocating the costs estimated to individual project components tomake them measurable and manageable

� What is an estimate?

� An assessment of the likely quantitative result� Usually applied to project cost factors and schedule� Should include some indication of accuracy (e.g. +- percent)� Usually used with a modifier (e.g. preliminary, conceptual, feasibility)

Estimating - 2

Items to consider

� Utilization factor: amount of time a FTE (Full Time Equivalent) can be used for the length of the project

� Hours available/Year: (Exam 2.080 (52 w X 5 d X 8 h)

� Duration parameters:� Working Time: Activity duration based on number of hours a workday or a workweek� Effort Hours: Hours required to complete a task� Elapsed Time: Calendar Duration including weekends, holidays and breaks� Productivity: rate at which work is produced� Availability: resource present and ready to work� Contiguous duration: work time that is not interrupted� Interruptible duration: work time that may be interrupted� Level of Effort: computed uniform rate of activity

� Some formulas

Cost =Effort Hours

ProductivityX Unit Cost Resource duration =

Effort / Productivity

Availability

Estimating - 3

Possible approaches

� Top-down: � High-level estimate of projects or their summary tasks� Estimates allocated downward to individual work items� Considered generally to be less costly and accurate than other

techniques

� Bottom-up:� Estimating the effort of individual work items in hours� Then summarizing up the individual work items to get a project total� Cost and accuracy driven by the size of the individual work items

Estimating - 4

Methods of estimating� Parametric: specific measures used to estimate the effort required to complete a particular task or produce a particular work product

� Every task must have at least one Estimating Unit (EU)� An EU can apply to more than one task� More than three EUs per task is unwieldy� All EUs must be categorized in terms of:

� Count: numers of items to be estimated� Scaling Factor: size and complexity� Fixed range; fixed amount or range for the estimate

� Analogy/Comparison:

� Expert Judgement Estimate: provided by any group or individuals with specializedknowledge or training

EvaluateProject

FindComparable

Project

Assesscomparable

qualities

Evaluate costs of the previous

Project

Apply to the new Project

Scheduling - 1

The set of planned dates for performing activitiesand for meeting milestones. It is used to:

� Determine whether you meet or beat your objectives� Track and communicate your project progress and status� See how a possible change can affect the project

Identification of the Critical Path� The longest of all path through the project� The path with zero float time� The shortest time to complete the project

Scheduling - 2

Adjusting the schedule to meet objectives:

� Change the relationships among tasks so that the criticalpath is shorter (fast-tracking)

� Do tasks in parallel not in sequence� Change approach to work to create a different set of

interrelated tasks with a shorter critical path (note: this maychange the WBS)

� Change finish-start relationships to finish-finish ones� Change a date constraint so that a task on the critical pathcan start or end sooner

� Crash the network to decrease the project total durationafter alternatives and use of resources

Scheduling - 3

Analizing the schedule implies examining:� Roles

� Is there a complete set of roles for each task?� Action: add roles where needed

� People� Who will fill the roles?� Action: assign people

� Skills� Do people own the required skills?� Action: add or change people or reestimate the duration to allow time to

improve skill levels

� Availability� When will people really be available?� Action: reschedule taking into account nonavailable time – Change

utilization assumptions to adjust duration – add more people

Project Control - 1

Overview

Project Control

Budget

Scope Schedule

CustomerContract

Suppliers

Quality

Risks

ProblemManagement

IssueManagement

ChangeManagement

Project Control - 2

Stages of Control

� Establish standards through plans and procedures

� Collect actual performance Information

� Compare actual and planned performance

� Take corrective action

Project Control - 3

Compare Actual vs Planned using Metrics

� Resource Utilization� Number of Risk events passed or completed� Number of changes over time� Earned Value� Defect� Tasks start/finish (planned vs actual)� Milestones� Technical control point� Deliverables

Change Management - 1

Managing and controlling BaselinesA Baseline:

� Incorporates the original plans for a project plus or minus approvedchanges

� Serves as the basis to manage changes and ensuring that the project iscomplete

� Defines the scope of the project� Must be signed and approved

Required Baselines:

Requirements

Schedule Cost


Change Management Procedure

Identifychange

Clarifychange

Estimate Complexity / Price of investigation

Accept

Document and communicate

IdentifyImpacts

Evaluate costsand benefits

Selectalternative

Price

Accept

Update Project Documents

Implement

Document and communicate

File

Y

YN

N


Changes comes in many forms – all require the same attention

Technical Changes Contractual Changes-Implementation of solution - Ts an Cs

- Scope of work- Requirements- Schedule- Costs

- Usually internal - Usually external- Usually in scope - Usually out of scope

ChangeManagement

Process

A formal change management process must be established and used

Schedule and Cost Control - 1

Considering the Earned Value

� Allows objective assessment of variance

� Allows common understanding of the amount of work actually done

� Is incorporated in major project management SW packages

� Allows point-in-time analysis

� Allows forecast of future performance

� Can be determined at different levels (work element, summary, project)


Earned Value Definitions

�Budgeted Cost of Work Scheduled (BCWS): planned expenditure of each work package scheduled to be accomplished as of the status reporting date on the baseline schedule

�Actual Cost of Work Performed (ACWP): actual expenditure of each work package as of the status reporting date

�Budgeted Cost of Work Performed (BCWP): percentage complete of each work package as of the status reporting date multiplied by the baselined budget of that work package

�Budget at completion (BAC): the sum of all the baselined budgtes allocated to the project work packages


Earned Value – Variance Analysis

� Cost Variance (CV): � The difference between what was accomplished and what was spent to accomplish it

� CV = BCWP – ACWP

� Negative CV denotes overexpenditure of budget for work done

� Positive CV denotes underexpenditure of budget for work done

� Schedule Variance (SV): � The difference between what was accomplished and what was planned or scheduled to be

accomplished

� SV = BCWP – BCWS

� Negative CV denotes budget needed to catch up on work scheduled

� Positive CV denotes budget used for work accomplished earlier than planned


Earned Value – Performance Index Analysis

� Cost Performance Index (CPI = BCWP/ACWP): � Denotes past performance on the money spent as of the status reporting date

� Schedule Performance Index (SPI = BCWP/BCWS) � Denotes past performance on the money spent as of the status reporting date

� Percentage complete vs. Percentage spent: � Percentage complete (BCWP/BAC)

� Percentage spent (ACWP/BAC)


Forecasting Project Performance

� How much will it take to finish = estimate to complete (ETC): � Alternatives

� ETC = Sum of new estimates of unfinished work (may be very accurate but also very time consuming)

� ETC = Sum of budgets of unfinished work

� ETC = BAC/CPI – ACWP

� Show how much it will cost when done (EAC) � EAC = ETC + ACWP


Forecasting Project Performance

� Efficiency level required to finish within budget = To-Complete-

Performance-Index (TCPI) :� TCPI = (BAC-BCWP) / (BAC – ACWP)

� Denotes the performance required for the remaining work in order to get the project back on track (with no change)

� Is not and indicator of required overtime

� If the project is on schedule and on budget TCPI = 1

� IF TCPI > 1, efficiency required might be unachievable� Determine feasible TCPI and recalculate EAC


The End


Attachment – 1Reuse Model – Macro design

Investigazione e Selezione

Risorse Disponibili

Re Use Factory

Catalogazione

ModularizzazioneStaging

Analisi e Metriche

Software Factory

Analisi Requisiti

Progettazione

Realizzazione e Test

Iterazione Sviluppo 1

Iterazione Sviluppo N

Analisi Requisiti

Progettazione


Investigazione e Selezione

Risorse Disponibili

Re Use Factory

Catalogazione

ModularizzazioneStaging

Analisi e Metriche

Software Factory

Analisi Requisiti

Progettazione


Iterazione Sviluppo 1

Iterazione Sviluppo N

Analisi Requisiti

Progettazione


Recupero Software Riusabile

Repository


Attachment – 2SLA – SW Development

Caratteristica: FUNZIONALITÀ Sotto-caratteristica Indicatore Metrica Valore

soglia Momento di rilevazione

Adeguatezza

Rispondenza funzionale del software a quanto richiesto dall’utente (copertura funzionale)

% di funzioni sviluppate rispetto a quelle approvate nel “Documento di definizione dei requisiti”

100% Fine realizzazione

Adeguatezza Tasso di prodotti consegnati

% dei prodotti consegnati rispetto a quelli previsti dal Piano di Progetto


Accuratezza Copertura funzionale del test

% di casi di test presenti nel piano di test (progettazione) rispetto alle funzioni presenti nelle Specifiche di progettazione

100% Fine progettazione

Accuratezza Copertura del test % di casi di test eseguiti in fase di test rispetto a quelli progettati nelle specifiche di test


Accuratezza Test eseguiti con successo (lato fornitore)

% di casi di test eseguiti con successo, rispetto al n° di test previsti nelle specifiche di test


Accuratezza Scostamento durata

Data consegna effettiva ultimo prodotto di realizzazione – Data consegna prevista nel piano di progetto

0 Fine realizzazione

Aderenza

Rispetto degli standard (anche relativamente all’uso di strumenti)

Numero rilievi relativi al rispetto degli standard

<=2 ogni 100 FP

Fine realizzazione

Aderenza Aderenza al modello dell’architettura applicativa

Numero rilievi relativi al rispetto degli standard

<=5 ogni deliverable

Fine progettazione

n° di informazioni riservate con accesso limitato rispetto al n° di informazioni riservate con accesso limitato specificate nella documentazione di progettazione


Sicurezza

Tasso di copertura sicurezza informazioni n° di informazioni riservate che

dispongono di “log” di accesso rispetto al n° di informazioni ri-servate specificate nella documentazione che prevedono “log” di accesso



Attachment – 3

Risk Plan