Project Managment (IT) 2020

PROJECT MANAGEMENT (IT)
(FOR PRIVATE CIRCULATION ONLY)

2018
PROGRAMME COORDINATOR
Prof. Sonali Karale
COURSE DESIGN AND REVIEW COMMITTEE

Ms. Nidhi Khare Dr. Manisha Kumari
Ms. Kausar Biyabani Dr. Manisha Chopade
Mr. Lalit Kathpalia Mr. Atul Kahate
COURSE WRITER
Mr. Yogesh Ghalsasi
EDITOR
Ms. Neha Mule
Published by Symbiosis Centre for Distance Learning (SCDL), Pune

July, 2011 (Revision 03, 2018)
Copyright © 2018 Symbiosis Open Education Society

All rights reserved. No part of this book may be reproduced, transmitted or utilised in any form or by any
means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval
system without written permission from the publisher.
Acknowledgement
Every attempt has been made to trace the copyright holders of materials reproduced in this book. Should any
infringement have occurred, SCDL apologises for the same and will be pleased to make necessary corrections
in future editions of this book.
PREFACE
Project Management was practiced in Civil Engineering branch since long and was thought suitable
to software industry also. Software projects had been showing disappointing statistics of failure, so it
became very important to manage the software projects in a disciplined way to make them successful.
So learning the software project management skills is a must for every software practitioner - whether
a team member or a leader.
This SLM introduces the discipline of software project management and its practices in detail.
Although the success of the project greatly depends on the individuals skills to handle the project and
the team, knowledge of the processes described in this SLM will certainly help the practitioners to
handle the projects successfully.
The SLM starts with the introduction and takes the learners through the various processes and
ultimately discusses the current trends. Appropriate examples are used, wherever applicable, to
reinforce the theoretical concepts. The SLM also includes the samples of some documents used in
practical software project management. Every unit includes self-assessment questions and activities,
which give ample opportunities to the learners to check their progress. The language is kept as self-
explanatory as possible to help a distance learner.
Suggestions and feedback from the readers on the contents of the SLM are welcome.
Yogesh Ghalsasi
iii
ABOUT THE AUTHOR
Mr. Yogesh Ghalsasi has almost two decades of rich experience in software development. He started
his career with academics, but he realised that mere theoretical knowledge is inadequate to train
the aspirants in the field of information technology; hence, he switched to industry and worked in
diversified domains such as Textile, Autocomp, FMCG and manufacturing.
Within this tenure, he played various roles from programmer, systems analyst, implementation lead,
support lead, project lead to Project Manager and has hands-on experience in Microsoft and Oracle
technology. He has led a textile company as IT Head for 10 years.
He has handled various projects, small to large. The client names include Parle Products, MicroInk,
Coziplast, BAPL, SEKL etc.
He is passionate about developing integrated personalities in the challenging field of information
technology. He displays a blend of industrial, IT and educational experience.
He has delivered lectures in engineering college. Presently he is working as a consultant in Enterprise
Resource Planning (ERP) and Software Project Management (SPM). He strongly believes that one
can learn anything that someone else can and with this philosophy, he himself has learnt many things
such as music, yoga and spirituality. He is working with various age groups to share the experience
and learn from others.
iv
CONTENTS
Unit No. TITLE Page No.

1 Software Project Management Concepts 1 - 28
1.1 Introduction
1.2 Economic Impact of Software Project Management
1.3 Project Management Challenges in Modern Software Industry
1.3.1 Managing Global Projects
1.4 Software Project
1.5 Project Management
1.6 Software Project Management
1.7 Organisational Structure
1.8 Project Life Cycle and Phases
1.9 Stakeholders and their Influence on the Project
1.10 Knowledge and Skills of a Project Manager
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading
2 Project Initiating 29 - 50
2.1 Introduction
2.2 Project Integration Management
2.3 Project Initiation
2.4 Project Charter Development
2.5 Use of Tools
2.6 Develop Preliminary Scope Statement
2.7 Software Project Management Plan
2.8 Project Execution, Monitor and Control
Summary
Key Words
Suggested Reading
v
3 Managing Scope of the Project 51 - 72
3.1 Introduction
3.2 Scope: Meaning
3.3 Software Scope Management Plan
3.4 How to define Scope
3.5 Work Breakdown Structure (WBS)
3.6 Controlling the Scope
3.7 Scope Verification
Summary
Key Words
Suggested Reading
4 Estimating and Scheduling 73 - 96
4.1 Introduction
4.2 Software Measurement
4.3 Software Estimation
4.4 Software Project Scheduling
Summary
Key Words
Suggested Reading
5 Managing Cost 97 - 120
5.1 Introduction
5.2 Cost Management Overview
5.2.1 Basics of Costing
5.2.2 What is Project Cost Management
5.2.3 Types of Costing
5.2.4 Estimating Cost
5.3 Preparing Budget of the Project
5.4 Controlling Cost of Software Projects
5.4.1 Cost Controlling Techniques
Summary
Key Words
Suggested Reading
vi
6 Managing Quality 121 - 150
6.1 Introduction
6.2 What is Quality
6.2.1 Quality Principles
6.2.2 Software Quality Factors
6.3 Quality Planning
6.4 Quality Assurance and Quality Control
6.4.1 Quality Assurance
6.4.2 Quality Control (QC)
6.4.3 Difference between Quality Assurance and Quality Control
6.5 Cost of Quality
6.6 Quality Management Tools
6.7 Industry Quality Standards/ Models
Summary
Key Words
Suggested Reading
7 Managing Team 151 – 174
7.1 Introduction
7.2 Team
7.2.1 Pillars of Team
7.3 Building Team
7.4 Motivating Team
7.4.1 Maslow’s Hierarchy of Needs
7.4.2 Herzberg’s Motivation-Hygiene Theory
7.4.3 Douglas McGregor’s Theory of Motivation
7.4.4 The Equity Theory
7.5 Project Human Resource Planning
7.6 Team Structure
7.7 Managing Conflicts
7.8 Influencing
Summary
Key Words
Suggested Reading
vii
8 Managing Communication 175 – 202
8.1 Introduction
8.2 Importance of Effective Communication
8.3 Meaning of Communication
8.4 Process of Communication
8.5 Components of Communication
8.6 Barriers to Communication
8.7 Types of Communication
8.7.1 Types of Communication Skills
8.7.2 Different Types of Communication
8.8 Communication Planning
8.9 Managing Meetings
8.9.1 Types of Meetings
8.9.2 Tips for conducting Effective Meetings
8.10 Complementary Skills for Effective Communication
Summary
Key Words
Suggested Reading
9 Managing Risks 203 – 228
9.1 Introduction
9.2 Meaning of Risk
9.3 Types of Risks
9.4 Software Project Risks
9.5 Risk Management
9.6 Risk Management Models
9.6.1 Project Management Institute’s Risk Model
9.6.2 Barry Boehm’s Risk Management Model
9.6.3 Software Engineering Institute’s Risk Management Model
9.7 Steps in Risk Management Process
9.7.1 Risk Identification
9.7.2 Risk Analysis
9.7.3 Risk Resolution
9.7.4 Risk Response Planning
Summary
Key Words
Suggested Reading
viii
10 Software Configuration Management (SCM) 229 – 244
10.1 Introduction
10.2 Multiple Versions of Software
10.3 Traceability and Impact Analysis
10.4 Capability to build any Past Version
10.5 SCM Concepts
10.6 Role of Librarian and Automated Tools
Summary
Key Words
Suggested Reading
11 Update yourself: Current Trends 245 – 266
11.1 Introduction
11.2 Global Nature of Software Projects with respect to India
11.3 Tools used in managing Global Projects
11.4 Challenges in managing Global Projects
11.5 Challenges due to New Software Development Models
Summary
ix
x
Software Project Management Concepts
UNIT
1
Structure:
1.1 Introduction
1.2 Economic Impact of Software Project Management
1.3 Project Management Challenges in Modern Software Industry
1.4 Software Project
1.5 Project Management
1.6 Software Project Management
1.7 Organisational Structure
1.8 Project Life Cycle and Phases
1.9 Stakeholders and their Influence on the Project
1.10 Knowledge and Skills of a Project Manager
Summary
Key Words
Suggested Reading
Software Project Management Concepts 1

Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
• Understand the importance of project management
----------------------
• Describe software project management
---------------------- • Explain the terms used in software project management
---------------------- • Discuss the organisation structure
---------------------- • Recognise essential skills of a project manager

• Elaborate on the importance of stakeholders
----------------------
• Differentiate a project from ongoing operation
----------------------
---------------------- 1.1 INTRODUCTION

----------------------
Software project management is the art and science of planning and leading
---------------------- software projects. It is a sub-discipline of project management, in which software
projects are planned, implemented, monitored and controlled. Software are
---------------------- useful and often necessary, but the true art in software project management is
applying the correct method and then using tools to support the method. Without
----------------------
a method, tools are worthless.
---------------------- Recently, the software development processes got stabilised and matured to
such an extent that applying scientific management technique to this process
---------------------- has become possible.
---------------------- In this unit, we will be exploring various concepts of software project
management and their importance. Software engineering talks about the
---------------------- software development process such as analysis, design, coding and testing,
---------------------- while prime focus of project management is to manage the software engineering
processes effectively and efficiently. Managing process means choosing
---------------------- appropriate process model, allocating resources, estimating the time and cost
and continuous monitoring of process. Project Management is critical and is
---------------------- treated as a supporting discipline in software development. Project management
---------------------- spans over all the processes in software engineering.
Technical knowledge, e.g. designing and coding, is essential but not enough
---------------------- to efficiently deliver projects. Project management is more concerned about
the planning, controlling, performing and coordination of the resources in an
----------------------
efficient manner so as to deliver the outcome of project in time, within the cost
---------------------- and as per expectation of the customer.
We will discuss the elements of software project environment that will make
---------------------- you familiar and confident enough to work in the project environment.
---------------------- We will also discuss why projects are important and what various challenges in
managing the projects in the modern software industry are. This will give insight
---------------------- into these challenges, the ways to tackle them in advance and the essential
2 Project Management (IT)

skills of an effective project manager so that one can practice and enhance Notes
them. Software project management is a subject of practice and application of
knowledge and skills. ----------------------
----------------------
1.2 ECONOMIC IMPACT OF SOFTWARE PROJECT
MANAGEMENT ----------------------
We are living in information age. Almost everything around us is computerised. ----------------------

Information Technology advancement is accelerating our economy. The IT ----------------------
literacy, number of information consumers and use of software is growing
rapidly. Statistics show that various countries are annually spending billions of ----------------------
dollars in thousands of software projects. Unfortunately, there is a gap between
demand and supply. Compared to the huge investments in software projects, the ----------------------
rate of project success is very low. ----------------------
We are losing thousands of dollars due to project failures and cost overruns.
Most of the project failures are attributed to weak project management and ----------------------
hence project management has a considerable impact on economy. ----------------------
Taking this as a challenge, various innovative project management methodologies
----------------------
are being practiced and they also claim their success rate. Even lean principles
of manufacturing are being implemented in software project management. ----------------------
Due to high demand of software worldwide and scarcity of trained software
professionals, project management will bear a phenomenal economic impact on ----------------------
knowledge-based economy.
----------------------
If we agree with the high rate of project failures due to weak project management
and hence high demand of competent software project management ----------------------
professionals, it is imperative for them to deliver software projects in time, with
----------------------
high quality and within a given budget. We can strengthen our economy by
continuous delivery of successful projects. It is essential that we should polish ----------------------
the skills and knowledge and integrate our experience in handling global as
well as domestic software projects. ----------------------
----------------------
Check your Progress 1
----------------------
State True or False. ----------------------
1. Most software projects fail due to lack of cash.
----------------------
2. Project management has a considerable impact on economy.
----------------------
----------------------
Activity 1
----------------------
Find out five industrial sectors, which cannot be computerised. ----------------------
----------------------

Notes 1.3 PROJECT MANAGEMENT CHALLENGES IN
MODERN SOFTWARE INDUSTRY
----------------------
---------------------- Software industry is facing manifold challenges today. Broadly, there are two
types of challenges, technical and non- technical. A project manager has to cope
---------------------- with both types of challenges.
---------------------- Technical Challenges: Every project is different and needs to be managed

differently. The methodologies used in software development, expectations of
---------------------- stakeholders, the type of project (Product/Service), ever-changing technologies
introduce a lot of complexity. Different compliances exist in different parts
---------------------- of the globe, which need to be considered in executing the projects in such
---------------------- environments.
Non-Technical Challenges: In today’s world, projects are managed in a global
---------------------- environment. Managing and motivating techies from different countries is
---------------------- also a challenge. The time differences become significant in globally managed
projects. Most of the non-technical challenges are directly related to project
---------------------- management and have considerable impact on the project cost, scope, quality
and overall performance.
----------------------
----------------------
Due to advancement in internet technology, large projects are being managed
---------------------- globally where the software project team and other stakeholders of the project are
dispersed across the globe. The native language, culture, time differences, local
---------------------- government rules and policies, business and process priorities and preference
are different among countries because of socio-economic differences. These
----------------------
factors add complexity in managing projects.
---------------------- Measurement and Estimation
---------------------- Unlike other commodities, measurement of software is not an easy task.
Quantifying the amount of work done or to be done is a challenging task. Though
---------------------- various estimation techniques are available, their usage and adaptability is
---------------------- considerably less in software industry. Correct estimation needs past estimation
and project data, experience and judgement. Still, adjustment to the adapted
---------------------- estimation standard is inevitable.
---------------------- Another challenge is cost estimation .As Software is an intellectual commodity,

cost estimation is not a straightforward task.
----------------------
With rapid spending on IT project, top managements have become more cautious
---------------------- and they want to know the worth of every single penny they are investing in an
IT project. Like other projects, customers are asking for return on investment.
---------------------- In spite of having various tools available to measure the return on investment
and payback period, it is still a challenge to measure and present return on
----------------------
investment (ROI) satisfactorily to the customers.
----------------------
----------------------

HR Management Notes
People in software industry are knowledge workers. Due to high education,
----------------------
global exposure, highest pay packages and global demand, the attrition rate is
very high as compared to other industries. Hiring and retaining good people ----------------------
becomes a challenging task, therefore.
----------------------
Emerging domains such as biotechnology and emerging needs of business such
as knowledge management, business intelligence, information security etc. are ----------------------
posing challenges in recruiting right people with the right skills.
----------------------
Check your Progress 2 ----------------------
Match the following. ----------------------
i. Technical challenges a. Knowledge workers ----------------------

ii. Non technical challenges b. Native language and culture ----------------------
iii. Managing global projects c. Challenges related to project
management ----------------------
iv. HR Management d. Estimation tools ----------------------
e. Technological changes
----------------------
Activity 2 ----------------------
----------------------
1. What do you think are the technical challenges in software project
management apart from the ones discussed above? ----------------------
2. Find out the non-technical challenges in software project ----------------------
management other than discussed above.
----------------------
3. List the factors that affect the global management software.
----------------------
1.4 SOFTWARE PROJECT ----------------------
A ‘project’ is a sequence of unique, complex and connected activities having ----------------------

one goal or purpose and that must be completed by a specific time, within
----------------------
budget and according to specification.
Since a project is a planned undertaking, being planned assumes that to a large ----------------------
extent we can determine how we are going to carry out a task before we start.
----------------------
The characteristics that distinguish projects can be summarised as follows:
----------------------
1. Non-routine tasks are involved.
----------------------
2. Planning is required.
3. Specific objectives are to be met. ----------------------
4. The project has a pre-determined time span. ----------------------

Notes 5. Work involves several specialisations.
6. Work is carried out in several phases.
----------------------
7. The resources that are available for use on the project are constrained.
----------------------
8. The project is large or complex.
---------------------- A project can create the following:
---------------------- • A product that can be either component of another item or an end item in
itself
----------------------
• A capacity to perform service
----------------------
• A result such as an outcome or document (e.g. a research project that
---------------------- develops knowledge that can be used to determine whether a trend is
present or a new process)
----------------------
Before understanding project and its management, we must know the
---------------------- organisational environment and the activities performed differently in different
organisations. Organisations can be classified into three categories based on
---------------------- the major activities they perform such as product development organisation,
manufacturing organisation and service organisation. However, you may
----------------------
also see combination of all the three categories in a single organisation. This
---------------------- classification helps us to identify the differences and similarities of activities they
perform, for example, product development organisations are into development
---------------------- of new products or new versions of products, which do not exist before, while
manufacturing organisations are engaged into production of the same products.
----------------------
Every organisation performs these activities to make profit by providing services
---------------------- or selling products. Hence making profit is a unique characteristic among all of
---------------------- them.
Product Vs. Services
----------------------
Products are commodities, which the customer purchases with total ownership
---------------------- of that product and he can use the product for specific purpose, e.g. Microsoft
Windows is a product we purchase to run the computer system. In services,
----------------------
a customer pays value for the service he is getting from the service provider.
---------------------- Ownership of the product and infrastructure remains with service provider, e.g.
internet service, telephone service, software as a service.
----------------------
A software product may fall into any one of the following categories:
---------------------- 1. System software
---------------------- 2. Application software
---------------------- 3. Software development tools

4. Software solution
----------------------
5. Software: Generic product for general requirements
----------------------
Software tools: Automation, printing, processing, report writing, screen
6.
---------------------- generation etc.

Project Vs. Production Notes
Projects are carried out to develop unique product, service of result. However,
----------------------
the production activities are carried out to produce large number of products
so that more customers can avail them. Project is a one-time activity for single ----------------------
products; that means for different products, different projects can be initiated
simultaneously or at different times and once the product is developed, that ----------------------
project is closed and the next may start. While production is an ongoing activity,
----------------------
it produces the same product repeatedly till the demand is satisfied. It clears
every bug in the project as per customer’s satisfaction. For example, installation ----------------------
and configuration of software products, taking backups, generating reports etc.
are ongoing operations. ----------------------
A project is a product in making whereas a product is a project that has been ----------------------
completed successfully. Example: When a new software is under development,
it is called a project; once the software is completely developed, implemented ----------------------
and running successfully, it is called a product.
----------------------
Definition of Software Project
----------------------
Software project is a time bound undertaking, which delivers unique product
or service. For example, development of banking software, development of ----------------------
insurance software etc.
----------------------
Characteristics of Software Project
There are three important characteristics of project with the help of which you ----------------------
can easily identify whether the given undertaking is a project or an ongoing ----------------------
operation.
----------------------
i. Uniqueness: The activities in a project must be unique. Each software
product is unique in some aspect such as features, services, processes or ----------------------
environment, for example, development of a new compiler for C language.
In this example, the compiler of C language already exists. That does mean ----------------------
that new version of C compiler is production or ongoing activity because
----------------------
the internal logical structure of the new version, the output generated by
new version, even the development team may be different. ----------------------
Another popular example can be development of a new website. Although
----------------------
website is developed using existing languages and web technologies
and the development team knows how to develop a website, every new ----------------------
website development is treated as a new project since the features and
customers are different for different websites. ----------------------
Similarly, same ERP products implemented in different companies are ----------------------
treated as a separate project since the business processes, rules and
policies and the end user are different. ----------------------
On the contrary, if you install MS Windows or any Antivirus software in ----------------------
the same company on different computers or reinstall the software, it may
not be considered as a project because the operation is repeated and not ----------------------
unique. ----------------------

Notes ii. Temporary and Time bound: Projects are time bound, means they must
have definite beginning and end date. This date can be self-imposed by
---------------------- management or specified by a customer. It indicates a finite tenure for
the project, which is flexible. Project tenure is finite; however, the use of
---------------------- software need not be finite. Once the product is developed, the project is
---------------------- closed and the user can use the product for longer time unless and until
the product and services are matching with business goals. For example,
---------------------- developing products such as MS Office or MS Windows are time-bound
projects, but you can use these products for longer time and there is no
---------------------- time limit on its use.
---------------------- iii. Progressive elaboration: All software projects are progressively
elaborated. Progressive elaboration means more details are available
----------------------
when we progress further. This is a very important characteristic & needs
---------------------- to be under stood properly. Due to unique nature of the product, we do
know every minute detail such as exact requirements of customers, the
---------------------- way the team can approach for a solution. For example, product training
is generally provided to end user &if the end users are dispersed across
----------------------
the globe and you need to make a training plan, you cannot just proceed
---------------------- on the training requirement.
Initially, you are unaware of the user characteristics such as expertise,
----------------------
number of users, user location, training language etc. In such situations,
---------------------- instead of investing more time in detailing, you can start with the initial
phases and eventually get a clearer idea about the user characteristics
---------------------- when stakeholder analysis or functional analysis begins. In most of the
projects, there will be progressive elaboration of varying degrees that you
----------------------
will have to face.
---------------------- We are studying these characteristics because it has considerable impact on the
overall project management processes. If projects are not unique, then there is
----------------------
no need of detailed planning since you have done a similar project or if project
---------------------- does not have time limitation, you have flexibility of time and schedule. Though
these terms are simple to understand, sometimes they create confusion. For
---------------------- example, progressive elaboration is confused with scope creep. If you have not
properly understood the minute difference, then the project may get a different
----------------------
direction and land in a crisis thereby.
---------------------- Scope creep means addition in requirements while progressive elaboration
---------------------- means detailing of the given scope as you proceed. For example, a customer
wants to add new information (field) in the report since it was not captured in the
---------------------- requirement gathering, as initially you do not have all field level information at
hand. This can be considered as progressive elaboration, while, if the customer
---------------------- wants to add new report to the initial scope, it has a considerable impact on cost
---------------------- and schedule. Hence, it is treated as scope creep and not progressive elaboration.
Problems with software projects
----------------------
o Poor estimates and plans
----------------------
o Lack of quality standards and measures

o Lack of guidance about making organisational decisions Notes
o Lack of techniques to make progress visible
----------------------
o Poor role definition, i.e. who does what
----------------------
o Incorrect success criteria
o Management ignorance of IT ----------------------
o Narrow scope of technical expertise ----------------------

o Lack of quality control ----------------------
Software Project Vs other types of Project
----------------------
i. Invisibility: When a physical artifact such as a bridge or road is being
constructed the progress being made can actually be seen. With software, ----------------------
progress is not immediately visible.
----------------------
ii. Complexity: Software products contain more complexity than other
engineered artifacts. ----------------------
iii. Conformity: The ‘traditional’ engineer is usually working with physical ----------------------
systems and physical materials like cement and steel. These physical
systems can have some complexity, but are governed by physical laws that ----------------------
are consistent. Software developers have to conform to the requirements ----------------------
of human clients. Organisations may have lack of collective or common
approach and / or in-effective decision making can lead to a chaotic ----------------------
situation that developers have to cater for.
----------------------
1.5 PROJECT MANAGEMENT ----------------------
Project management is the application of knowledge, skills, tools and techniques ----------------------
to project activities to meet project requirements. Project management is
accomplished through application and integration of the project management ----------------------
processes of initiating, planning, executing, monitoring, controlling and closing. ----------------------
Managing a project includes:
----------------------
• Identifying requirements
----------------------
• Establishing clear and achievable objectives
• Balancing the competing demands for quality, scope, time and cost ----------------------
• Adapting the specifications, plans and approach to the different concerns ----------------------
and expectations of the various stakeholders
----------------------
High quality project delivers the required product, service or result within
scope, on time and within budget. The relationship among these factors is such ----------------------
that if any one of the three factors changes, at least one other factor is likely to
be affected. ----------------------
The key to successful project management is management of nine knowledge ----------------------

functional areas, which are discussed below.
----------------------

Notes 1. Scope: Scope management defines the requirements that, when delivered,
will be the successful conclusion of the project.
----------------------
2. Time: Time management means estimating the time for project completion
---------------------- and time for each activity in the project; scheduling the activities of
the project using activity time and monitoring the activity progress to
---------------------- complete the project on time, as agreed with the customer.
---------------------- 3. Cost: Cost management means estimating the effort and resources
required, costing them for budgeting and controlling them throughout the
---------------------- project duration in order to keep project’s profit margin intact.
---------------------- 4. Quality: Quality management means producing the quality of all
deliverables as expected by customers and stakeholders.
----------------------
5. Human Resource: HR Management means managing people and their
---------------------- skills effectively as estimated to deliver quality projects within cost and
time.
----------------------
6. Communications: Communication Management means capturing all
---------------------- aspects of the data on the project and its activities, processing the data
and distributing it to the people concerned so as to respond effectively to
---------------------- meet the commitments.
---------------------- 7. Risks: Risks management means identification, analysis and building
monitoring and mitigation plans to control the risk.
----------------------
8. Procurement: Procurement identification means identifying procurement
---------------------- requirements, such as development and engineering services, hardware
and software as a support to the project.
----------------------
9. Integration: Integration management means integrating various tasks
---------------------- in scope to produce project deliverables as per the expectations of the
customer within cost and time budgets.
----------------------
---------------------- Check your Progress 3

----------------------
State True of False.
----------------------
1. Project management requires only skills; no experience is required.
---------------------- 2. Quality control has no role in software project management.
----------------------
---------------------- Activity 3
----------------------
1. Give five examples of progressive elaboration.
---------------------- 2. List any 5 categories of software.
---------------------- 3.
List any 5 knowledge functional areas for software project
management.
----------------------

1.6 SOFTWARE PROJECT MANAGEMENT Notes
Software project management (SPM) is a supporting discipline in software ----------------------
development projects. Software development is an intensely people- and
process-driven activity. Hence, software project management deals with the ----------------------
efficient use of people and processes that they follow. There are two types of
----------------------
processes, viz. software engineering process models such as waterfall, spiral,
component based etc., which are highly technical in nature and management ----------------------
processes such as planning, team management, communication, risk, out
sourcing, requirement management, estimation etc. Technical and management ----------------------
processes are integrated with each other.
----------------------
Software project management deals with lots of managerial activities such as
appropriate election of above-mentioned process models, selection of team and ----------------------
planning & monitoring. As each project is unique in its gravity of complexity, it ----------------------
is the sole discretion of the project management team to decide what processes
and methodologies to choose. Project management is the sole responsibility of ----------------------
the project manager and he is accountable for success or failure of the project.
----------------------
Previously, software development was considered a highly technical activity that
deals with software engineering processes such as design, coding and testing ----------------------
but now, other disciplines such as stakeholder management, communication
management and estimations have become equally important. Project ----------------------
management places more emphasis on efficient management of process. Various ----------------------
project management methodologies are available, which provide a framework.
Two popular methodologies are Project Management Methodology developed ----------------------
by PMI (Project Management Institute USA) and Prince 2 Methodology.
----------------------
Software project management is a combination of general management
knowledge and skills and the unique processes that are applicable to software ----------------------
development such as estimation, configuration and communication. As software
----------------------
is a human-driven activity, more emphasis is placed on management of human
resources. ----------------------
Software Project Management is a method and set of techniques based on the
----------------------
accepted principles of management used for planning, estimating and controlling
work activities to reach a desired end result, on time, within the budget. ----------------------
Software project management methodologies ensure that the project has a clear
----------------------
vision, it earns profit through productivity of resources and factors affecting
both the project and the product are controlled, Software project management ----------------------
is hard work. It requires dedication and commitment to a goal.
----------------------
Effective SPM practices focus on four factors:
1. People ----------------------
2. Product ----------------------
3. Process ----------------------
4. Project
----------------------

Notes Processes and Software Project Management
A software project has two main activities: engineering and project management.
----------------------
The engineering dimension deals with building system and focuses on issues
---------------------- such as how to design, test, code and so on. Project management deals with
properly planning and controlling the engineering activities to meet project
---------------------- goals for cost, schedule and quality.
---------------------- If a project is small, it can be executed informally. In case of large projects, each
engineering task must be done carefully by following well-tried methodologies
---------------------- and the work products must be properly documented so that others can review
them. The task in the project must be carefully planned and allocated to project
----------------------
personnel and then tracked as the project executes. Technically, a process for a
---------------------- task comprises a sequence of steps that should be followed to execute the task.
• Processes represent collective knowledge. Using them increases the
----------------------
chances of success.
---------------------- • A process may have some extra steps, but one will not always know
---------------------- beforehand which ones are not needed and which are a must.
• Without processes, you cannot predict much about the outcome of your
---------------------- project.
---------------------- • Processes lower the anxiety level. The checklist inevitably covers 80
percent of what needs to be done. Hence, the task reduces to working out
---------------------- the remaining 20 percent.
----------------------
----------------------
---------------------- Multiple Choice Multiple Response

1. Software projects have 2 main activities:
----------------------
i. Scope definition
----------------------
ii. Project management
---------------------- iii. Engineering
---------------------- 2. Effective SPM practices focus on four factors; they are:
i. Pressure
----------------------
ii. People
---------------------- iii. Product
---------------------- iv. Project
v. Process
----------------------
----------------------
Activity 4
----------------------
---------------------- Give examples of various resources used in a project development.

1.7 ORGANISATIONAL STRUCTURE Notes
Organisation structure represents the organisation as a whole, describing staffing ----------------------
level, communication and reporting system, staff hierarchy etc. Organisation
structure gives you an idea about the people and their authority level. The first ----------------------
important step you must take before accepting the project is to understand the
----------------------
organisation structure and culture of your own organisation as well as your
customer’s organisation. ----------------------
Organisations are unique in their working styles, culture, hierarchies, hire & ----------------------
fire policies, work ethics etc. Managing software project involves a great deal
of management of human resources and their communication and reporting ----------------------
requirement. While doing communication planning and HR planning, you need
to know the characteristics of the organisation and accordingly, you can plan a ----------------------
team and reporting structure. ----------------------
President ----------------------
----------------------
----------------------
Research and
Engineering Manufacturing ----------------------
Development
If you know your stakeholders, internal as well as external, you can manage ----------------------
the project effectively since you would know whom to communicate and how
to communicate. You must therefore understand various organisation types and ----------------------
structures. ----------------------
Organisation Types
----------------------
Broadly, software industry is divided into two categories, product development
companies and service provider companies. Product companies develop ----------------------
solutions for different domains and business entities while service companies
----------------------
provide services such as simple maintenance of third party software or knowledge
outsourcing or data management services. One more category in relation to ----------------------
software development, which we can find, is in-house software development
where the organisation develops software for their internal requirement and ----------------------
they do not sell it outside.
----------------------
Projectised Organisations
----------------------
Most of the IT companies are project-based organisations. Projectised
organisations are basically engaged in development of new software product or ----------------------
services. As the characteristics of software perfectly apply to the definition of
a project, the organisation structure is made suitable to carry out project work. ----------------------
Unlike other industries, there is no ongoing activity performed. In projectised ----------------------
organisation, the project manager is solely responsible for the project and is the
highest level of authority in the organisation. Various other departments such as ----------------------
Accounts and Human Resources report to the project manager.
----------------------

Notes The project manager is usually responsible for managing one project and if
the organisation is performing many projects, they can have separate project
---------------------- managers for each project. Depending on the size of the organisation, there can
be a single team responsible for carrying out various tasks such as coding, testing
---------------------- or there can be separate teams responsible for carrying out specific tasks such
---------------------- as Quality and Testing Team, Design Team, Implementation and Support Team
etc. Team structure generally includes Team Leaders, Analyst, Consultants,
---------------------- Subject Matter Experts, Programmers etc. Teams are not permanent and exist
till the project exists. Once the project is over, the team members are released.
----------------------
Project Managers in these types of organisations are responsible for planning,
---------------------- organising and motivation & controlling of the project team. Team leaders
and project leaders are responsible for day-to-day technical issues and team
----------------------
handling. In projectised organisation, the project manager decides the structure
---------------------- of the team. Scope, time and budget are the main constraints for this type of
organisation.
----------------------
Functional Organisation
---------------------- The main focus of the functional organisation is to produce or serve something
related to their domain. You may know that most of the organisations such
----------------------
as Automobile, Electronics, Engineering, Insurance, Healthcare etc. are
---------------------- functional organisations. These organisations are generally engaged in ongoing
and repetitive tasks. Though they are engaged in production activities due to
---------------------- various business needs, market demands, technology advancement, they initiate
various projects in their organisation, e.g. designing of new car, bike etc. Few
----------------------
of the functional organisations have their own software development team
---------------------- and develop new software for their functional departments such as customer
relationship management (CRM), production and planning.
----------------------
In functional organisations, usually the role of the project manager is played by
---------------------- the IT manager. As compared to a projectised organisation, an IT manager in a
functional organisation has limited authority. The team is small as compared to
---------------------- the core IT organisations. If a new project is not there, then the team is engaged
---------------------- in software maintenance and support activities. Some organisations prefer to
purchase customised software while others prefer to develop in-house software
---------------------- as per the requirement of the organisation. The main constraints of functional
organisation are time and quality while there is no specific cost budget for
---------------------- software. The IT manager has to manage the given project with available staff
---------------------- in IT department. There is limit on staff hiring because additional resources may
remain idle till next project. Instead of adding resources, such organisations
---------------------- may think of outsourcing few development activities.
---------------------- Matrix Organisation

Matrix organisations are a combination of functional and projectised
---------------------- organisations. It maintains the hierarchical structure of functional organisation
---------------------- and techniques of good project management. Employees in this type of
organisations report to both functional as well as project managers. Depending
---------------------- on the authority level matrix, an organisation can be further classified into

strong matrix, which is similar to projectised organisation and weak matrix, Notes
which is similar to functional organisation and balance matrix.
----------------------

1. Matrix organisations cannot be classified as strong or weak matrix. ----------------------
The main focus of the functional organisation is to produce or serve
2. ----------------------
something related to their domain.
----------------------
Activity 5 ----------------------
----------------------
1. Identify and access the organisation structure of your organisation.
(If you are not employed, discuss the same with a friend who is ----------------------
employed.)
----------------------
2. What organisation structure do you think is appropriate for the
following: ----------------------
a. Manufacturing Industry ----------------------
b. IT/Software Development Company ----------------------
c. IT-enabled companies such BPO/KPO
----------------------
d. Construction Industry
----------------------
e. Manufacturing industry involved in new product development
----------------------
1.8 PROJECT LIFE CYCLE AND PHASES ----------------------
A project life cycle is the series of phases that a project passes through from ----------------------
its initiation to its closure. The phases are generally sequential, and their
----------------------
names and numbers are determined by the management and control needs
of the organisation or organisations involved in the project, the nature of the ----------------------
project itself and its area of application. The phases can be broken down by
functional or partial objectives, intermediate results or deliverables, specific ----------------------
milestones within the overall scope of work or financial availability. Phases are
----------------------
generally time bound, with a start and ending or control point. A life cycle can
be documented within a methodology. The project life cycle can be determined ----------------------
or shaped by the unique aspects of the organisation, industry, or technology
employed. ----------------------
While every project has a definite start and a definite end, the specific deliverables ----------------------
and activities that take place in between will vary widely with the project. The
life cycle provides the basic framework for managing the project, regardless of ----------------------
the specific work involved.
----------------------

Notes Each project has a certain life, which means it has a certain beginning and as it
achieves its objective, life of a project reaches an end. The project exists till the
---------------------- release of the product or service. Once the product is released, the project will
be closed. During the life of the project, it goes through various developmental
---------------------- stages called as project phases. Collection of the phases is together called project
---------------------- life cycle, e.g. initiation phase, requirement phase, design phase, coding phase,
testing phase. These are the phases of system development life cycle. Typical
---------------------- project management phases are initiation, intermediate (planning, execution
and control) and closure. However, the project manager decides the phases of
---------------------- project, depending upon the complexity and manageability of the project.
----------------------
Initiation
----------------------
----------------------
Intermediate
----------------------
---------------------- Closure
----------------------
Fig. 1.1: Typical Project Management Phases
----------------------
Phase is nothing but a collection of logically related activities. For example,
---------------------- initiation phase includes activities such as project scope definition, charter
development, project selection etc. These phases are usually sequential,
----------------------
meaning if the previous phase is over, the next phase may start. The decision
---------------------- to transit from one phase to another is usually taken at the end of each phase.
Project phasing helps in managing a large project into smaller logically related
---------------------- activities.
---------------------- The project manager decides the phases of the project life cycle. He decides what
is to be delivered in each phase, who is involved, how the control is established
---------------------- and finally how each deliverable is verified and reviewed. At the beginning of
---------------------- the project, the project manager decides the life cycle model of the project.
There are various software development life cycle models available such as
---------------------- Rapid Application Development Model, Incremental Model, Waterfall Model
and Spiral Model. The phases are also dependent on software development life
---------------------- cycle model and project management methodology, which you are going to
---------------------- adopt.
At the end of each phase, deliverables are reviewed and technical outputs are
---------------------- passed on to the next phase. Phase review also determines whether the project
---------------------- can transit into the next phase or terminate there itself.
----------------------
----------------------
----------------------

Notes
----------------------
1. Logically related activities are together called a phase.
----------------------
2. Collection of various phases is together called project phase.
----------------------
3. Phases can be broken down by partial objectives.
----------------------
1.9 STAKEHOLDERS AND THEIR INFLUENCE ON ----------------------

THE PROJECT ----------------------
All human resources are called stakeholders of the project. Stakeholders can ----------------------
be individuals or organisations who participate in the project. Stakeholders can
be internal or external. Internal stakeholders are usually internal staff of the ----------------------
performing organisation, such as project manager, team lead, programmers,
----------------------
analysts etc., while external stakeholders comprise of project sponsors,
customers, end users etc. Project management must take care of both of these ----------------------
stakeholders.
----------------------
Stakeholders are important in projects because they can influence a project
positively or negatively. Different stakeholders may have different views ----------------------
towards the same project, for example, the top management may decide to
implement software in their factory to speed up the process while the end users ----------------------
may believe that the new software shall degrade their importance. These are
----------------------
individual perceptions and may have an influence on project execution.
Stakeholders are people who have a stake or interest in the project. It is important ----------------------
that they be identified as early as possible, because you need to set up adequate ----------------------
communication channels with them right from the start. The project leader also
has to be aware that not everybody who is involved with a project has the same ----------------------
motivation and objectives. The end users might, for instance, be concerned
about the ease of use of the system while their managers might be interested in ----------------------
the staff savings that the new system will allow. ----------------------
Stakeholder identification is a continuous process throughout the entire project
lifecycle. Identifying stakeholders, understanding their relative degree of ----------------------
influence on a project and balancing their demands, needs and expectations ----------------------
are critical to the success of the project. Failure to do so can lead to delays,
cost increases, unexpected issues and other negative consequences, including ----------------------
project cancellation. An example is late recognition that the legal department is
a significant stakeholder, which results in delays and increased expenses due to ----------------------
legal requirements to be met before the project can be completed. ----------------------
----------------------
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
---------------------- Fig. 1.2: Basic Stakeholders in a Project
Let us understand various stakeholders and their roles and responsibilities.
----------------------
1. Project Sponsors: A project sponsor can be an individual or an
---------------------- organisation that provides the financial resources to the project.
---------------------- 2. Project Manager: The project manager is responsible for the overall
success of the project- an individual who is ultimately responsible for
---------------------- project delivery. Project managers are responsible for project planning,
organising, monitoring and controlling. They need not be necessarily
----------------------
technical experts but having technical competency is an added advantage.
---------------------- 3. Team Members: Team members must have trust in one another. These
---------------------- are actual performers of planned task, for example programmers, testers
etc. They apply their technical skills to deliver the product.
---------------------- 4. Customers: Customers are the ultimate beneficiaries of the project.
---------------------- Customers provide requirements for the project undertaken.
5. End Users: They are actual users of the product delivered by the project.
----------------------
6. Consultants and Subject Matter Experts: They are individuals who
---------------------- are expert in handling business issues. They are subject matter experts in
their domain. They provide technical or domain specific guidance to the
----------------------
project team.
---------------------- 7. Support Staff: The role of support staff is generally activated after
release of product. They help customers in solving their technical as well
----------------------
as non-technical queries regarding the installation of the new software.
----------------------
----------------------
----------------------

Notes
----------------------
Fill in the blanks. ----------------------
1. __________ are important because they influence the project
----------------------
negatively or positively.
2. SME stands for _____________________. ----------------------
3. Team members are _____________of planned task. ----------------------
4. People or organisations who provide finance are called project ----------------------
_______.
----------------------
Activity 6 ----------------------
----------------------
Group the following into internal and external stakeholders:
----------------------
Project manager, customer, team lead, end user, government agency,
consultants ----------------------
----------------------
1.10 KNOWLEDGE AND SKILLS OF A PROJECT MANAGER
----------------------
Software project management is the application of knowledge and skills. ----------------------
Every project manager must possess some of these skills and try to acquire the
knowledge in his respective domain. As a main stakeholder, he plays various ----------------------
roles during project execution.
----------------------
----------------------
Manager
----------------------
----------------------
Mentor Leader
----------------------
Project ----------------------
Manager
----------------------
Problem ----------------------
Coach
Colver
----------------------
Coordinator ----------------------
----------------------
Fig. 1.3: Role of a Project Manager ----------------------

Notes Roles of a Project Manager
A project manager must possess essential skills so as to be successful in the
----------------------
project management career. In order to coordinate and complete a project
---------------------- successfully, a project manager assumes the following roles in the various
phases of the project.
----------------------
The project manager must rely on people management, good judgements,
---------------------- interpersonal skills and personal intuition.
---------------------- • Manager
---------------------- This is the main role of the project manager. His prime responsibility includes
planning, organising, motivating and controlling. For each of the managerial
---------------------- activity - planning, organising, motivating - he should have necessary skills in
that field, for example planning skill, organising skills, motivation skills.
----------------------
As a manager, he should ensure that all processes are properly defined and
---------------------- followed. PM is also responsible for performance monitoring and status
reporting to project sponsors. A project manager should have a great command
---------------------- and control over the team. He should establish strong self and group discipline.
---------------------- As a manager, his focus should be getting the work done with optimum
utilisation of resources. Being a manager, he should conform and comply with
---------------------- various standards, rules and regulations. He should maintain the integrity and
work ethics in a team.
----------------------
• Leader
----------------------
The leader’s role is different than the manager’s but they are often confused
---------------------- with each other. Leaders have the responsibility for part of the project. A
manager’s job is to plan and assign tasks to the people, while leadership deals
---------------------- with influencing and persuading people to do what you want them to do. People
in the software industry are creative knowledge workers; they do not like
----------------------
detailing of task and want work freedom and empowerment. However, doing so
---------------------- may be sometimes risky for the project. Here the project manager has to act like
a leader. With influencing skills and persuasion strategy, he makes people do
---------------------- things, which are right for the project. To get the maximum creative work from
his people, he should empower the people without losing control. He builds
----------------------
continuous rapport and trust with team members since people always follow the
---------------------- leader they trust. It is essential for a leader to read the trend and understand his
followers. By knowing this, he can motivate and direct his team for achieving
---------------------- the objectives of the project.
---------------------- • Coach and Mentor
---------------------- Each project is a new learning activity for a team member. As an experienced
Project Manager, you have to transfer the knowledge to your team members.
---------------------- Team members always seek guidance and support of their project manager.
Here the project manager acts like a good coach and trainer. He should
---------------------- continuously understand the knowledge requirements of individuals. As a team
---------------------- player, he should know what the skills required are and accordingly arrange

formal trainings and workshops or conduct informal training activities. He Notes
must motivate the team to learn and practice new technologies. He should also
provoke group learning. ----------------------
• Problem Solver ----------------------
During project execution, technical as well as non-technical issues may arise
----------------------
and need to be attended immediately. Clear understanding of the problem is very
essential. After defining a problem, the project manager finds out alternative ----------------------
ways and provides solution to the problem. Sometimes people need support
to solve critical problems. In that case, the project manager has to give moral ----------------------
support to his team. The project manager should not pressurise the team in
----------------------
critical cases. He has to tackle the situation tactfully. He should be flexible in
approach and needs to remain under control in highly stressful situations. ----------------------
• Coordinator
----------------------
Project managers spend most of their time in communicating and coordinating
with the stakeholders. As team size increases, number of communication ----------------------
channels increase, leading to more confusion and chaos. In order to deal with ----------------------
such a situation, project managers must efficiently coordinate the resources of
the project. ----------------------
Project managers must continuously analyse the gaps in communication and fill ----------------------
the gaps by effective coordination. They will often manage project managers
on very complex or multi-project undertaking. People in a team need proper ----------------------
information from time to time, either written or in oral form. It is the job of the
manager to see that all stakeholders’ information requirements are satisfactorily ----------------------
fulfilled and there are no conflicts or communication issues across the team. ----------------------
Essentials Skills
----------------------
Successful project managers are a blend of knowledge and skills.
----------------------
Knowledge is a collection of experiences. If the experiences repeatedly occur,
we may formulate them as theory. By practicing and applying knowledge, you ----------------------
can develop the skills. Mere knowledge is not enough. You may read and have
knowledge of swimming but unless and until you throw yourself in water, you ----------------------
cannot swim.
----------------------
Project management is a matter of practice. The knowledge and skills we
discuss here are just guidelines. However, on-field situation may be different for ----------------------
different projects and you need to handle them creatively and tactfully. Actual ----------------------
skill will help you in managing projects. Let us see the different skills that every
project manager must possess. ----------------------
• General Management Skills ----------------------
General management skills define the ability with which you can perform
various project management activities such as planning, organising, controlling, ----------------------
monitoring etc. Along with these skills, the general knowledge of finance and ----------------------
accounting, human resource and legal compliance is essential.
----------------------

Notes • Communication
Communication is the most common and widely used skill in project management.
----------------------
There are various means of communication. Effective communication ensures
---------------------- that the message communicated by the sender is properly understood by the
message receiver. Communication becomes more complex in large, complex
---------------------- projects where the team is dispersed across the globe. One must understand
the barriers of communication and try to break those barriers. Some of the
----------------------
communication barriers are language, culture, education, gender and hierarchical
---------------------- level in an organisation.
• Planning and Organising
----------------------
Planning is deciding the future course of action to achieve the set target.
---------------------- Without planning, you cannot direct and control your team. A plan keeps
you focussed on the target. Plans are always progressively elaborated. Thus
----------------------
planning becomes a continuous and repetitive activity. Planning needs vision
---------------------- and deep understanding of environment, i.e. people and processes. A good
plan is actionable and will be implemented effectively. If our vision is limited,
---------------------- we cannot think much beyond. Thus, vision is a very crucial thing in project
planning. Planning is not an isolated activity. It goes hand in hand with other
----------------------
activities such as organising and controlling.
---------------------- Organising means integrating and coordinating the resources as per the plan.
---------------------- Two main aspects of organisations are how you organise available human
resources and the documents. Organisation means arranging things in a manner
---------------------- to improve the effect and efficiency of the team. A good time management
sense is essential for better organisation. Planning decides what to do while
---------------------- organising decides who can do the specified task better. During the project, lots
---------------------- of information and documents such as reports, memos, quotations and contracts
are generated and you need to organise them properly so that you access the
---------------------- right information at the right time.
---------------------- • Influencing and Negotiating

Influencing is the ability of a person to convince others of his idea in an
---------------------- effective manner. People in the team (internal as well as external stakeholders)
---------------------- generally follow their own instinct and quite often, they disagree with the
project management decisions and opinions. Appropriate application of
---------------------- influencing skill will help in managing conflicts and compelling your decision.
If stakeholders do not agree with each other, the project manager can use his
---------------------- power either positively or negatively to influence them. Influencing skills can
---------------------- be used to motivate people. Naturally, team members are influenced by the
personality and character of the project manager. They follow the leader who
---------------------- makes an impact on them.
---------------------- Negotiating is a process of reaching mutual agreement. Negotiation may
happen with groups or individuals inside or outside the organisation. Many
---------------------- a times, during the project execution, the project manager needs to apply
skills. For example, when the customer adds new requirements, which may
----------------------

not be in scope, it may affect the schedule and budget. With negotiation skills, Notes
the project manager can fruitfully make the customer agree to pay extra for
additional requirement or with negotiation skills, he can convince the customer ----------------------
how schedule and budget will be affected by new requirement and make the
customer agree with the existing scope. Sometimes, team members do not ----------------------
agree with the time frame or a specific approach or documentation they have ----------------------
to prepare. With negotiation skills, the project manager can convince his team
about the importance of his decision. ----------------------
• Estimation and Budgeting ----------------------
Estimation attempts to determine how much money, how much effort, how
----------------------
many resources and how much time it will take to build a specific software-
based system or product. Effort and cost estimation are challenging activities ----------------------
in project management. Due to the unique nature of projects and human-
based activity, it becomes difficult to estimate how much time and cost will ----------------------
be taken to accomplish the project. Estimation and budgeting is a skill and can
----------------------
be developed with experience and application of various methods, tools and
techniques. Knowledge of accounts and finance will be an added advantage and ----------------------
will support in taking accurate financial decisions.
----------------------
• Problem Solving Skills
Projects exist because problems exist; problem is an opportunity that initiate ----------------------
project. Problems could be business-related or technology-related or may be ----------------------
related to the management of process. The prime objective of any project is to
give a solution to the business problem. Apart from this problem, there could ----------------------
be problems related to project execution such as scope creep, wrong estimation,
incomplete requirements, stakeholder communication, schedule and budget of ----------------------
the project, which must be resolved. ----------------------
Problem solving uses decomposition technique in which the first problem is
defined. Symptoms and causes are separated out and alternative solutions are ----------------------
suggested. Problem solving needs experience, good understanding of business ----------------------
and technical expertise. There are various problem solving techniques available,
for example Cause- Effect Diagram, Strength-Weakness-Opportunity- Threat ----------------------
(SWOT) Analysis, Flow Charts etc.
----------------------
• Leadership
----------------------
Leadership means ability of a leader to influence the thinking or action or both
of a team. By influencing, he can motivate the team, get desired performance ----------------------
out of his team and achieve the project objective. Leadership is a combination
of various skills. A good leader must possess certain qualities such as ----------------------
motivation, energy, knowledge, social skills, communication and influencing
----------------------
skills, decisiveness and courage and ability to relax in highly stressful situation.
Some of the qualities of a leader may be inherited such as personality, energy, ----------------------
intelligence, while other can be learned, e.g. communication skills, motivation
skills. A good leader is always energetic and very positive in attitude. His ----------------------
presence encourages others. Social skills help him to understand the behaviour
----------------------

Notes of the people and he can build a good team. A leader must be decisive and firm in
his decision. Good leaders have good judgement about the people and situations
---------------------- and they can resolve the conflict smoothly. Leaders need not be technically
competent but must possess motivating and influencing skills with which they
---------------------- can direct their project team.
----------------------
----------------------
---------------------- 1. Good leaders always

i. Are energetic
----------------------
ii. Have positive attitude
----------------------
iii. Are witty
---------------------- 2. Problem solving needs:
---------------------- i. Latest education qualification
---------------------- ii. Experience

iii. Good technical knowledge
----------------------
3. Documents generated during projects are
----------------------
i. Reports
---------------------- ii. Memos
---------------------- iii. Quotations
---------------------- iv. Resignations
----------------------
Activity 7
----------------------
---------------------- 1. Classify the following list into either of the categories as a project
or ongoing operation. Justify your answer.
----------------------
a. Developing a Customer Relationship Management (CRM) software
---------------------- b. Assigning access rights to individuals
---------------------- c. Configuring ERP software as per the needs of an organisation
---------------------- d. Developing a front end for an application in the form of a website
e. Installation of operating system on all the 50 machines in a user
----------------------
environment
---------------------- f. Setting up a network and securing it for a small enterprise
---------------------- g. Migrating a software written in COBOL to Java
---------------------- h. Delivering product training to the end users

Notes
2. In the following situations, explain which of the roles of the project
manager will be critical according to you. Support your choice with a ----------------------
reason.
----------------------
a. The project is in the final phase. Suddenly there is a critical
requirement from the user side, which is asking for more ----------------------
commitment from the team members.
----------------------
b. Mr. Amit is a critical resource in your project. You understand that
your project depends largely on him. One fine morning, you see ----------------------
the resignation letter from Amit.
----------------------
c. You as a project manager and your team are experienced in Finance
Domain. A new project is being assigned to you, which is from ----------------------
Healthcare domain. You have personally worked on such a project
----------------------
as a team member in healthcare domain 5 years back, whereas
your team is totally novice to the new domain. ----------------------
----------------------
Summary
----------------------
●● Software project management is facing lots of challenges in areas such as
----------------------
measurement and productivity.
●● Delivering software in time, cost and quality is still a challenge and it is ----------------------
found that weak project management is the root cause.
----------------------
●● Project failures are attributed to weak project management than to
technical improvements. ----------------------
●● Knowledge of organisation culture, policies and hierarchy guides us in ----------------------
choosing the right approach for better management of projects.
●● Projects are unique, time bound and have progressively elaborating ----------------------
endeavours and deliver unique product or services. ----------------------
●● Stakeholders play a very important role in software project management.
----------------------
●● A project manager is responsible for management and execution of the
project. He selects appropriate management processes for execution of ----------------------
a project. Basic function of any project manager is to plan, organise,
execute and control project-related activities. ----------------------
●● Knowledge can be learned from experience while skills need continuous ----------------------
practice. A good project manager possesses various skills such as
communication, influencing, problem solving, organising, leadership and ----------------------
team building. ----------------------
----------------------
----------------------
----------------------

Notes Keywords
----------------------
●● System software: Software, which is a link between the hardware and
---------------------- application programs
●● Application software: Graphical User Interface serves as a link between
---------------------- users and computers
---------------------- ●● Software tools: Software programs available, which help users carry out
routine and non-routine tasks
----------------------
●● Technical Challenges: Challenges that come due to change in technology
---------------------- ●● Non-technical challenges: Challenges, which come due to non-technical
---------------------- reasons, for example change in management, stakeholders withdrawing
support etc.
----------------------
---------------------- Self-Assessment Questions
---------------------- 1. List the three unique characteristics of project.

2. Explain project management.
----------------------
3. What factors are included in managing a project?
----------------------
4. List down any five problems associated with software projects.
---------------------- 5. What type of managerial activities does software project management
---------------------- deal with?
---------------------- Answers to Check your Progress

State True or False.
----------------------
1. False
----------------------
2. True
----------------------
---------------------- Match the following.

i. –e
----------------------
ii. –c
----------------------
iii. –b
---------------------- iv. –a
----------------------
----------------------
----------------------

Check your Progress 3 Notes
State True of False.
----------------------
1. False
----------------------
2. False
----------------------
Multiple Choice Multiple Response ----------------------
1. Software projects have 2 main activities:
----------------------
ii. Project management
----------------------
iii. Engineering
2. Effective SPM practices focus on four factors; they are: ----------------------
ii. People ----------------------

iii. Product ----------------------
iv. Project
----------------------
v. Process
----------------------

1. False ----------------------
2. True
----------------------
----------------------
1. True ----------------------
2. False ----------------------
3. True
----------------------
----------------------
Fill in the blanks.
1.
Stakeholders are important because they influence the project negatively ----------------------
or positively. ----------------------
2. SME stands for Subject Matter Expert.
----------------------
3. Team members are performers of planned task.
----------------------
4. People or organisations who provide finance are called project sponsors.
----------------------

Notes Check your Progress 8
Multiple Choice Multiple Response
----------------------
1. Good leaders always
----------------------
i. Are energetic
---------------------- ii. Have positive attitude
---------------------- 2. Problem solving needs:
---------------------- ii. Experience

iii. Good technical knowledge
----------------------
3. Documents generated during projects are
----------------------
i. Reports
---------------------- ii. Memos
---------------------- iii. Quotations
----------------------
Suggested Reading
----------------------
1. Jalote, Pankaj. Software Project Management in Practice.
----------------------
2. Jawadekar, Vaman S. Software Engineering Principles and Practice.
---------------------- 3. Mulay, Pravin. Software Project Management.
---------------------- 4. Pressman, Roger S. Software Engineering.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Project Initiating
UNIT
2
Structure:
2.1 Introduction
2.2 Project Integration Management
2.3 Project Initiation
2.4 Project Charter Development
2.5 Use of Tools
2.6 Develop Preliminary Scope Statement
2.7 Software Project Management Plan
2.8 Project Execution, Monitor and Control
Summary
Key Words
Suggested Reading
Project Initiating 29
Notes
Objectives
----------------------
----------------------
• Understand various software project management processes
----------------------
• Explain how the processes are integrated
----------------------
• Elaborate on the importance of integration process
---------------------- • Develop project charter and preliminary scope statement
---------------------- • Develop software project management plan
---------------------- • Describe project execution, monitoring and control process
----------------------
---------------------- 2.1 INTRODUCTION

---------------------- Software project management is “the application of knowledge, skills, tools and
techniques to project activities in order to meet project requirements”. It begins
---------------------- with project initiation and ends at project closure. In between project initiation
---------------------- and project closure, there are various technical and managerial processes. These
processes are logical processes and are not isolated from each other. Every
---------------------- process is integrated with each other. Some processes are sequential, meaning
you can start the next one after completion of the first, for example, without
---------------------- completion of project initiation, you cannot start project planning and execution.
---------------------- However, due to progressive elaborated nature of project, processes may not
be executed 100 percent sequentially. In sequential process execution, the next
----------------------
process totally depends on the previous one and without completion of previous
---------------------- process, we cannot start the next process. In project planning, details are not
available and you cannot ask your team to wait till all the details are available.
---------------------- The only option available is to prepare the first version of plan and start less
critical activities. As you move ahead, you will have more information at hand
----------------------
and can plan accurately. This nature implies that after execution, there are
---------------------- chances that you may revise the plan. Due to this interactive nature, effective
integration of all processes is required.
----------------------
There are various management processes such as preliminary scope and charter
---------------------- development, estimation and planning, monitoring and controlling project
execution, controlling changes and finally project closure. These processes
---------------------- again comprise of various activities.
---------------------- For example, in planning, you may need to prepare various plans such as risk
plan, finance & budgetary plan, quality plan and human resource plan. For the
---------------------- sake of understanding, these individual processes are grouped into four process
---------------------- groups such as initiating processes, planning processes, execution processes,
monitoring and control processes and closure processes. Project is nothing but
----------------------

the collection of all these processes and effective project management means Notes
putting all these individual processes in synchronisation to achieve the common
objective of the project. ----------------------
In this unit, we shall also study how a project initiates and how projects are ----------------------
authorised. We shall also study the importance of project planning. Project
integration includes seven main processes - develop project charter, develop ----------------------
preliminary project statement, develop project management plan, direct and
----------------------
manage project execution, monitor and control project work, integrate change
control and project closer. ----------------------
2.2 PROJECT INTEGRATION MANAGEMENT ----------------------
Project Integration Management Knowledge Area includes the processes and ----------------------
activities needed to identify, define, combine, unify and coordinate the various ----------------------
processes and project management activities within the project management
process groups. Integration includes characteristics of unification, consolidation, ----------------------
articulation and integrative actions that are crucial to project completion,
successfully meeting customer and other stakeholders’ requirements and ----------------------
managing expectations. Integration, in the context of managing a project, is ----------------------
making choices about where to concentrate resources and efforts, anticipating
potential issues and coordinating work for overall project. ----------------------
It is concerned with effectively integrating the various project management ----------------------
processes that stem from the project management process groups to accomplish
the project objectives. The Project Integration is an effort that helps formulate ----------------------
strategies to this transition and make the changes go smoother for all concerned.
----------------------
Project Integration gives the project a clearer picture of where the project is
actually heading. It also encompasses documentation of what changes need to ----------------------
take place in the methodology, in the workflow, user job roles etc.
----------------------
When we integrate knowledge areas into the life cycle development, it is ensured
that their contribution is effectively absorbed in the project and product, helping ----------------------
to complete the project successfully.
----------------------
Project comprises of various processes, stakeholders and theirs skills, knowledge
and experience. These individual parts interact with each other. Project ----------------------
integration ensures that all individual parts are working with each other and ----------------------
maintain the coordination and balance of each part. If any part is imbalanced,
the project may fail, no matter how perfectly well each part is doing. ----------------------
For example, your planning process is complete but the execution is not as per ----------------------
plan or does not have control on other parts; then all efforts may be waste. Hence,
it is the job of a project manager to keep all these parts together. Following ----------------------
figure illustrates the interaction of various parts of the project.
----------------------
----------------------
----------------------
Notes
----------------------
Planning
----------------------
----------------------
---------------------- Stake Execution Skills &

holders Knowledge
----------------------
----------------------
---------------------- Control
----------------------
----------------------
Fig. 2.1: Project Integration
----------------------
First customer or sponsor initiates the project, then project team prepares
---------------------- plan and gets the management approval. After getting management approval,
---------------------- project execution starts (all software engineering activities such as analysis,
design, coding, testing and documentation). During execution, whether team is
---------------------- performing as per plan, is monitored and deviation is controlled.
---------------------- Once the product is ready, it is released to the customer and project is officially
closed. This is the basic sequence that every project follows; however, as
---------------------- project size and complexity increases, management of these processes becomes
crucial. There is no single way to manage a project.
----------------------
Project managers apply project management knowledge, skills and processes in
---------------------- different orders and degrees of rigor to achieve the desired project performance.
The project manager and his team must address every process and the level of
---------------------- implementation for each process must be determined for each specific project.
---------------------- After planning, actual execution starts, meaning project team is formed and
they can start actual execution, such as requirement analysis and elicitation,
----------------------
high-level designs, program specification, actual coding and testing etc. For
---------------------- each process, the effort estimation and quality expectations are given in plan.
During project execution, the project manager monitors that defined processes
----------------------
are being followed; he also checks the status of the project and controls
---------------------- any deviation that occurs. During execution, the customer may change his
requirements that affect the schedule and cost. Hence, all these changes need to
---------------------- be incorporated into all corresponding plans, for example, due to changes, your
original scope document changes and that will change the WBS and schedule.
----------------------
The project deliverables also need to be integrated with ongoing operations of
---------------------- either the performing organisation or the customer’s organisation or with the
long-term strategic planning that takes future problems and opportunities into
----------------------
consideration.
Notes
----------------------
1. There are multiple ways to manage a project.
----------------------
2. The individual parts of a project may or may not interact with each
other. ----------------------
3. Project integration gives the project a clearer picture of where the ----------------------
project is actually heading.
----------------------
----------------------
Activity 1
----------------------
Take up a small project in your organisation and identify its stakeholders
----------------------
and their contribution in the project.
----------------------
2.3 PROJECT INITIATION ----------------------
Project initiation is the starting point of every project. In this step, we document ----------------------
the assumptions, constraints, user expectations, business requirements,
----------------------
technical requirements, project deliverables, project objectives and everything
that defines the final product requirements. Initiation is a process that commits ----------------------
that organisation to start the project and come out with a project document
giving a broad view of the project. Various activities take place in imitation ----------------------
phase before actual execution of project.
----------------------
We know that “Well Begun is half done”. Similarly, if project initiation process
starts well, chances of project success will be high. Initiation activity provides ----------------------
numerous inputs to various project processes. Due to this integration point of
----------------------
view, initiation becomes important.
Most of the projects fail not because of lack of technical competency, but due to ----------------------
lack of knowledge of why the project is initiated and what the motive behind the
----------------------
project is. If project objectives and underlying problem is not clear, all further
efforts may go in different directions, which means providing right solution to ----------------------
wrong problem.
----------------------
To avoid this, we must understand why the project initiated before accepting
any project. The initiation of a project involves determining its requirements to ----------------------
some degree of detail, outlining candidate solution approaches and an assessment
of whether to proceed with the project. ----------------------
Business head or the top authority in that organisation decides whether to initiate ----------------------
the project. Every organisation operates in a socio-economic environment.
Every change in external environment has an effect on the functioning of the ----------------------
organisation and the top management is proactive to such changes. If the top ----------------------
Notes management does not react appropriately, they have to bare the consequence or
in extreme cases, they have to shut down their unit.
----------------------
Hence, every project need is intense and needs to be addressed carefully and
---------------------- immediately. To resolve the issues, management decides to initiate project and
determines whether the project is to be executed within the organisation or
---------------------- given to some external agency.
---------------------- Depending on the organisation culture, need and complexity, projects are
either formally or informally initiated. Usually projects are disclosed in a
---------------------- meeting, called project kick-off meeting. Before initiating any project, the top
management carries out cost benefit analysis of the project. If management is
----------------------
confident that the expected benefits of the project are more than the costs of the
---------------------- project, they give a green signal to project.
During the project kick-off meeting, the project needs are discussed and further
----------------------
elaborated in to preliminary scope document. To summarise the initiation
---------------------- process, the projects are initiated to resolve the underlying problem or satisfy
the need of the organisation. Based on the availability of funds and priorities,
---------------------- projects are selected and an official document called the Project Charter is
released; it announces the official selection of project and project manager.
----------------------
We know that projects exist due to problems or needs. It is worth to know the
---------------------- sources of these problems and needs. It will give a better understanding of the
---------------------- project.
Sources of Problems and Needs
----------------------
Every business entity operates in a very dynamic and continuously changing
---------------------- environment. These external environmental factors continuously affect business
operations. To stay competent in business, each organisation has to satisfy needs
---------------------- and demands posed by these factors. It is the duty of the management to see that the
---------------------- organisation meets the needs of its customer and business, which can be influenced
by other factors such as technology advancement, government policies etc.
----------------------
Now let us understand different types of needs that initiate projects. Six basic
---------------------- types of needs trigger project initiation.
1. Business Need: To sustain business or to expand the business and to
----------------------
stay competent in market, organisations always enhance their existing
---------------------- processes. Most of the IT projects initiate due to business need, for
example, automation of existing manual processes. Improvement in
---------------------- Productivity and quality and reduction in cost are other major demanding
needs of business. These are internal needs of the business.
----------------------
2. Market Demand: Market refers to a group of consumers or organisations
---------------------- interested in the product. These consumers enforce demand and these
---------------------- demands need to be addressed by the performing organisations. Business
needs are internal to the business while market demands are external
---------------------- demands. Internet banking is the example of market demand. Through
internet, customers can do various banking transactions, for example
---------------------- paying utility bills, fund transfer etc.

3. Customer Requests: These requests come from the internal as well as Notes
external customers, for example individual department’s needs. Planning
department (Internal customer) may request for planning and productivity ----------------------
optimisation software; HR department may ask for Pay Processing
Software. Difference between market demand and customer request is ----------------------
that market demand is collective request of hundreds of customers, while ----------------------
customer request is specific to a single customer.
----------------------
4. Technology Advancement: In IT industry, both hardware and software
technologies are changing rapidly. These changes have considerable impact ----------------------
on the organisation. The change in technology gives more features with
improved speed with high and remote processing capabilities. Though ----------------------
organisations have existing software, after certain period they may ask for
----------------------
new versions with advanced capabilities, for example, due to advancement in
internet technology, most of the organisations replaced their old client server ----------------------
application with the latest multi-tier internet applications.
----------------------
5. Legal Requirement: Every organisation operates in a big environment
in which government agencies and legislative authorities force new rules ----------------------
and policies. Organisations need to comply with such rules and standard
procedures enforced by legislative authorities; such a change initiates new ----------------------
project. For example, the change in Tax structure and various duties paid
----------------------
to the government need changes to be incorporated in many modules.
If the organisations are multi-located across the various states, local ----------------------
government policy may differ.
----------------------
6. Social Need: Each organisation operates in social environment and needs
to address the demands of society and community. E-governance projects ----------------------
are initiated due to such needs of society with which government can
provide faster and transparent service to the citizens. ----------------------
----------------------
----------------------
i. Business needs a. Business flourishes ----------------------
ii. Social needs b. Specific to a single customer
iii. Legal requirements c. To stay competent in business ----------------------
iv. Customer requests d. New rules and policies are forced ----------------------
e. Addresses demands of community
f. Work Breakdown Structure ----------------------
----------------------
Activity 2 ----------------------
1. What do you think would be the agenda of kick-off meeting? ----------------------

2. List any three internal customers. ----------------------
Notes 2.4 PROJECT CHARTER DEVELOPMENT
---------------------- A project charter is a document that formally authorises a project; it formally
recognises the existence of a project and provides direction on the project’s
---------------------- objectives and management. Project charter is a document that officially
announces the commencement of a new project it includes the business needs,
----------------------
the product description and major assumptions.
---------------------- Many organisations follow formal chartering process in which formal charter
---------------------- document is released while few organisations informally announce a project
without any charter document. Usually, small projects are executed without
---------------------- formal chartering. Chartering is not merely a project announcement process.
Charter briefly gives the high-level requirement and tentative budget of the
---------------------- project.
---------------------- Charter is the outcome of lots of exercises that every organisation performs
before project announcement, such as cost benefit analysis, organisation
---------------------- strategic policy and viability of the project etc. The formatting of charter
---------------------- document varies with organisations and the complexity and size of the project.
Though the outcome of charter development process is a single document,
----------------------
the organisation performs various activities to arrive at a project decision. We
---------------------- know that a project exists due to some problems, opportunities or business
requirements, which can be internal or external to the organisation. They compel
---------------------- the management to take action. This is the point where actual project initiation
process begins. Now what is required is some information from customers
----------------------
such as problem or need, objective of the project, major deliverables, major
---------------------- constraints and assumptions and budget.
Many a times, it so happens that a customer may have many demands that can
----------------------
initiate different projects and the top management of the customer wants to
---------------------- prioritise and select out of them. For project selection, various activities need to
be performed, which address where to utilise funds and how much funds should
---------------------- be released. Once the project selection is over, the performing organisation
identifies the project manager who can successfully deliver the project. During
----------------------
the process, the top management assesses technical and financial viability of
---------------------- the project.
During technical feasibility, it checks whether existing team with existing
----------------------
technology and infrastructure can solve customer problems or new technology
---------------------- needs to be purchased. After technical and operational feasibility, the project
is discussed with all key stakeholders, including project sponsors, project
---------------------- manager, customer project manager etc. Once all stakeholders agree with the
project budget and other contents, the project sponsor officially releases the
----------------------
project charter.
---------------------- Quite often, there are demands of many projects and shortage of funds to
---------------------- execute all projects at a time. Hence, the project sponsor has to select the right
project that aligns with the strategic goals of the organisation.
----------------------

Projects are selected based on cost/benefit analysis and the priorities. Once the Notes
project is selected, funds can be released to the project. Project charter is also
used as a basis for project selection. The purpose of a charter is to concisely ----------------------
represent the project at a high level, to get management approval and support
(Signature). ----------------------
The charter may sometimes be called by other names such as the project ----------------------
initiation document (PID), scope baseline or just contract (usually for external
----------------------
work). It may be produced in many forms, such as a narrative document, a fill-
in-the-blank form or spreadsheets for extensive financial justification. ----------------------
The charter contains the why and what of the project processes; it should contain
----------------------
a brief statement about the following:
Objectives: What the desired outcomes are ----------------------
Functions: Major features and/or processes ----------------------
Performance: Generalised specifications ----------------------
Constraints: Limitations of the environment
----------------------
Scope: Boundaries of the project
----------------------
Cost / benefits: Rough order of magnitude estimates
Project Charter Contents ----------------------
The contents of the charter vary with organisation and the levels of details ----------------------
required by the stakeholders. The following template shows the generic project
charter. ----------------------
Specimen of Project Charter ----------------------

Project Charter ----------------------
Project Title Planned Start Date: ----------------------
Project Sponsor Name: Planned Project Delivery Date:
----------------------
Project Mission/Objective Tentative Budget
1. ____________________________________________________ ----------------------
2. ____________________________________________________ ----------------------
3. ____________________________________________________
----------------------
Need: ______________________________________________________
----------------------
Assumptions: ______________________________________________________
Constraints: ______________________________________________________ ----------------------
Major Deliverables: ----------------------
1. ________________________________________________________________
----------------------
2. ________________________________________________________________
3. ________________________________________________________________ ----------------------
----------------------
Notes Many organisations club the preliminary scope document with charter. This
document gives authority and official responsibility to deploy and utilise project
---------------------- resources. This document acts as scope baseline for an entire project and can
even be used as a legal document between the customer and the performing
---------------------- organisation. The components of the specimen Charter are described below:
---------------------- Project Title: A name given to a project, which uniquely identifies the project.
---------------------- Project Sponsor Name: The name of sponsor. It can be the name of an
individual or a funding organisation.
----------------------
Project Mission/Objective: Brief description of desired outcome of the
---------------------- project. For example, after implementation of CRM, sales should increase by
20%, increase in customer service level by 10% etc.
----------------------
Need: Brief description of why the project is initiated.
---------------------- Assumption: Assumptions are source of risk, hence carefully identified and
---------------------- must be written in all corresponding documents, for example, all end users are
computer literate and know how to operate basic functions of a computer.
---------------------- Constraints: Any limitation imposed, for example, project must go live in the
---------------------- next financial year.
Major Deliverables: Exhaustive list of various functional modules to be
----------------------
considered in project, that is, list of documents and training provided.
---------------------- This document is generally prepared by the project sponsor or the agency, which
is external to the project.
----------------------

----------------------
----------------------
1. A project charter can also be called
---------------------- i. Configuration Management document
---------------------- ii. The project initiation document (PID)
---------------------- iii. Scope baseline

2. The purpose of a charter is to
----------------------
i. Concisely represent the project at a high level
----------------------
ii. Get management approval
---------------------- iii. Append the organisations software library
----------------------
---------------------- Activity 3
----------------------
Collect any three specimens of a project charter.
----------------------

2.5 USE OF TOOLS Notes
Project managers use two drivers in the use of tools: the life cycle and the model ----------------------
for process improvement. Software project managers must understand the
maturity level of the organisation developing the software product. Providing ----------------------
tools to an immature organisation merely allows the developers to produce the
----------------------
wrong product faster. Power tools require maturity to be used effectively.
Table 2.1: Tools Categorisation ----------------------
Tool Class Specific Tool Type ----------------------

Software requirement tools Requirements modeling ----------------------
Traceability
Software design tools Design verification ----------------------
Design optimisation
----------------------
Software construction tools Program editors
Compilers ----------------------
Interpreters
Debuggers ----------------------
Software testing tools Test generators ----------------------
Test execution frameworks
Test evaluation ----------------------
Test management
Performance analysis ----------------------
Software maintenance tools Comprehension ----------------------
Re-engineering
Software engineering process Process modeling ----------------------
tools Process management ----------------------
Integrated CASE environments
Process-centered software engineering ----------------------
environment
----------------------
Software quality tools Inspection
Static analysis ----------------------
Software configuration Defect , enhancement, issue and problem
management tools tracking ----------------------
Version management
----------------------
Release – and – build
Software engineering Project planning and tracking ----------------------
management tools Risk management
Measurement ----------------------
Infrastructure support tools Interpersonal communication ----------------------
Information retrieval system
Administration and support ----------------------
Miscellaneous tools issues Tool integration techniques ----------------------
Meta tool
Tool evaluation ----------------------
Notes
----------------------
---------------------- i. Software quality tools a. Comprehension

ii. Configuration management tools b. Test generators
---------------------- iii. Software maintenance tools c. Time Period
---------------------- iv. Software testing tools d. Version management
e. Static analysis
---------------------- f. Interpersonal
---------------------- communication
----------------------
Activity 4
----------------------
---------------------- List down any five tools used by software developing organisation.
----------------------
---------------------- 2.6 DEVELOP PRELIMINARY SCOPE STATEMENT

---------------------- Preliminary scope statement is a document generally prepared by a customer
---------------------- and it is a handover to the project sponsor before the release of the project
charter. As this is a preliminary document, only high-level requirements are
---------------------- described in this document.
---------------------- It is developed from information provided by the initiator or sponsor. The

project management team, in the scope definition process, further refines the
---------------------- preliminary project scope statement into a project scope statement.
---------------------- Inputs → Project charter, Project statement of work, Enterprise environmental

factors, Organisational process assets
---------------------- Tools and Techniques → Project management methodology, Project
---------------------- management information system, Expert judgment
Output → Preliminary project scope statement
----------------------
Contents of Preliminary Scope Document
---------------------- Goal-Objective
---------------------- The goal defines the outcome or end result of your project. Project management
is the discipline of defining and achieving a set of goals while optimising the
---------------------- use of allocated resources (time, money, people, space etc.). Defining a proper
---------------------- goal is a very important activity and responsibility of the project manager. Quite
often, projects may have multiple goals and may contradict with each other.
---------------------- Different stakeholders have different views on the objectives of the project and
---------------------- need to be addressed. Goals should address the needs/problems defined in the

project charter. Goals give direction to the project. Goals should be measurable, Notes
specific, unambiguous and achievable.
----------------------
Let us consider the following example statement describing the goal of the
project; “Build library system for a university and successfully implement ----------------------
before the starting of the next academic year, which will provide online access
to its subscriber”. ----------------------
If goals are not clear, the team may develop solutions that may not meet ----------------------
customer expectations.
----------------------
Scope
Scope defines the boundary of the project. Every project operates in a broad ----------------------
environment; however, every project may or may not consider interaction with ----------------------
other system. Hence, it must be a necessity to explicitly define what parts of
the system the project is going to consider and the parts that the project will ----------------------
not consider. For example, consider a company decided to replace the existing
legacy system into a new ERP system. ----------------------
Most of the time, the customer assumes that the project will transfer the existing ----------------------
data from the legal system into the new system. However, it is not practically
possible to transfer the data. If data migration is explicitly defined in project ----------------------
scope, technical team can take care while designing new software. However, if it ----------------------
is not within the scope and the customer is demanding it, conflicts may be created.
Constraints ----------------------
Every project management resource such as man, machine, material, money ----------------------
has its own capacity. We cannot use them beyond their limit. This limiting
----------------------
factor is called as constraint. For example, if a project sponsor asks to develop a
project in one million dollar and within six months, then the project constraints ----------------------
are Project Budget and Duration. These constraints need to be identified and
quantified. Constraints help in making schedule, budget and risk planning. ----------------------
Assumptions ----------------------
We have certain assumptions in our mind. We expect that these assumptions ----------------------
be true and we take certain decisions based on these assumptions. However, in
reality, our assumptions may fail and accordingly decisions based on them will ----------------------
also fail. Hence, assumptions are treated as a great source of risk. Assumptions
are based on guesswork. Wrong assumptions lead to project risk; hence, ----------------------
assumptions need to be properly documented. There is no harm in assuming ----------------------
but it should be noted down in the scope document so that others can see and
analyse their impact on project. ----------------------
Project Requirements ----------------------
These requirements pertain to and are applicable to project activities. For example,
the customer may have specific communication and reporting requirements. He ----------------------
may ask you to present information in a specific format. Project requirement ----------------------
generally considers the deliverables of the project and not the product. Project
deliverables could be various plans, work break down structures, schedules etc. ----------------------
Notes Product Requirements
Product requirements are nothing but the expectation, needs and desires of
----------------------
stakeholders from the product. Broadly, requirements can be classified into
---------------------- functional and non-functional requirements. Functional requirements include
actual functions expected from the product, for example, pay process module
---------------------- should process the pay data every month etc., while non-functional requirements
include quality aspects such as data security, performance, user friendliness,
----------------------
documentation needs etc.
---------------------- We have discussed some of the major contents of preliminary project scope
statement. However, contents may vary as per organisation and project needs.
----------------------
Some of the other contents that can be included in scope statements are major
---------------------- milestones, potential risks, tentative cost and effort estimates.

----------------------
Fill in the blanks.
----------------------
1. Preliminary scope statement is prepared before the release of __________.
----------------------
2. Preliminary scope statement is further refined into __________.
---------------------- 3. Time, money, people, space are considered _________.
----------------------
---------------------- Activity 5
----------------------
State three goals for library management system.
----------------------
----------------------
2.7 SOFTWARE PROJECT MANAGEMENT PLAN
----------------------
In large and complex projects, hundreds of human resources perform a variety
---------------------- of tasks. They share information with each other. It is not practically possible to
---------------------- closely monitor each resource and guide them. Handling such projects without
proper documentation and guidelines can be a major risk. Hence, every activity
---------------------- is planned in advance before execution.
---------------------- Software project management plan is the most important document of a

project; it defines how the project is supposed to be executed and what it is
---------------------- going to produce. It also defines what activity needs to be performed and how
each activity will be performed. This document acts like a control tool and
---------------------- helps in avoiding deviations. The contents and level of details vary as per the
---------------------- organisation and project need and the style and personality of the planner. Some
plans are exhaustive and some just contain the need to know details.
----------------------
----------------------

The software project management plan should contain definitive project Notes
information that includes the following:
----------------------
Table 2.2: Project Information
Charter Elements from the project charter that define the ----------------------
project, including deliverables
----------------------
Organisation How the project will be organised and executed
to produce the deliverables ----------------------
Process Details of the managerial and technical processes
that will be used during the project ----------------------
Work Breakdown Structure Work breakdown and work package details
----------------------
Schedule Schedule, dependencies and resources
Budget Budgetary and definitive estimates ----------------------
All of these items are related and the SPMP actually evolves over a period of
----------------------
time as the various items come together. The process usually starts, though, with
incorporating the elements of the approved charter into the SPMP. Because the ----------------------
project is approved beyond the concept stage, it can proceed to the definition
(what) and planning (how) stage, where the detailed planning takes place. When ----------------------
completed and approved, the SPMP becomes the benchmark for controlling the
----------------------
project execution.
Due to progressive elaborative nature of the project, the project management ----------------------
plan evolves over the time and may be revised many times during execution.
----------------------
The changes to the project management plan are updated through proper change
control mechanism. ----------------------
Project management planning is an exhaustive and time-consuming task.
----------------------
You can improve project management planning only through practice and
learning experience of others. Main challenge is to decide the contents of the ----------------------
document since you can write a plan for every activity and you need to choose
those activities, which have considerable impact on a project. You can also ----------------------
study project plans of similar projects or get expert advice. There are various
----------------------
guidelines and templates available for writing project management plan.
The Contents of Software Project Management Plan (SPMP) ----------------------
The contents of project management plan vary with the organisations. Project ----------------------
management plan can be made as per the requirement of a project and
stakeholders. Following template describes the contents of sample project ----------------------
management plan derived from IEEE SA1058-1998 Standard for Software ----------------------
Project Management Plans.
Sample Project Management Plan ----------------------
1. Introduction ----------------------
You can write here the overview of the project. ----------------------
1.1 Project Overview
----------------------
Here you can write the summary of project objectives, major activities
and milestones, required manpower and budget. ----------------------
Notes 1.2 Project Deliverables
List of primary deliverable to the customer, for example, list of modules,
---------------------- reports, features and functionality etc. to be delivered.
---------------------- 1.3 SPMP Evolution
---------------------- Describe how this plan will be executed and how the changes to plan are
controlled.
----------------------
1.4 Reference Materials
---------------------- Here you can provide complete list of all documents and other sources of
information referenced in this plan. For easy access, other details can be
----------------------
provided such as report or document title, version no., release date, name
---------------------- of author and publishing organisation.
1.5 Definition and Acronyms
----------------------
All new terms and terminology are defined in this section so as to avoid
---------------------- confusion.
---------------------- 2. Project Organisation
This section specifies the process model for the project and its organisation
----------------------
structure.
---------------------- 2.1 Process Model
---------------------- Which process model the project is going to adopt, such as waterfall
model, prototype, rapid application development, spiral etc. Process
---------------------- model must include roles and responsibilities, activities, entry and exit
---------------------- criteria for project initiation, product development, product release and
project termination.
---------------------- 2.2 Organisation Structure
---------------------- Describe the internal management structure of the project. This can be
effectively shown by using the line of authority chart.
----------------------
2.3 Organisation Interfaces
---------------------- Here you can show the administrative and managerial entities.
---------------------- 2.4 Project Responsibilities
---------------------- Here you can write the major activities and the person responsible for
carrying out this task.
---------------------- 3. Managerial Process
---------------------- This section describes the management process for the project.
---------------------- 3.1 Management Objectives and Priorities
Describe the philosophy, goals and priorities for managing this project.
----------------------
3.2 Assumptions, Dependencies and Constraints
----------------------
We already discussed the terms constraints and assumptions. Dependency
---------------------- checking means checking whether the activity depends on any other
activity.
3.3 Risk Management Notes
Here you can describe the identified risk and the ways to mitigate the risk.
----------------------
The risk can be contractual, technological, related to size and complexity,
human resource etc. and for every such risk, contingency plan needs to be ----------------------
documented.
----------------------
3.4 Monitoring and Controlling Mechanism
Here you can describe various reports, formats, audits and review ----------------------
procedures.
----------------------
3.5 Staffing Approach
----------------------
Here you can describe the required skill set, recruitment guidelines,
training etc. ----------------------
4. Technical Process ----------------------
How the technical process such as design, coding, testing etc. will be
----------------------
executed is described in this section.
4.1 Tools and Techniques ----------------------
Various tools and techniques that can be used in a project are explicitly ----------------------
written in this section, for example, you can use MS Visio for designing
and Win runner for testing purpose. Along with these tools, you can ----------------------
include various methods such as coding templates, use of unified modeling
----------------------
language etc.
4.2 Software Documentation ----------------------
This is one of the most important sections of the SPMP. It describes how ----------------------
the documentation for different process will be maintained. Some of the
main documents are Software Requirement Specification (SRS), Software ----------------------
Design Description (SDD), Software Test Plan etc. ----------------------
4.3 User Documentation
----------------------
User documentation includes user manual, user guides, installation and
setup procedures. Here the plan and format of each document is described ----------------------
in detail.
----------------------
5. Training and Support
----------------------
Training and support needs of end user will be described in this section,
which includes the training schedule. ----------------------
6. Budget, resource requirements, schedules are also included in the project ----------------------
management plan.
----------------------
----------------------
----------------------
----------------------
Notes
----------------------
---------------------- State True or False.

1. How the project is supposed to be executed and what it is going to
----------------------
produce is specified in the project phases.
---------------------- 2. SPMP actually evolves over a period of time, as the various items
come together.
----------------------
3. Project management planning is exhaustive and done immediately.
----------------------
----------------------
Activity 6
----------------------
1. Interview a project manager and find more details about
----------------------
a. Deviation
----------------------
b. Quality
---------------------- c. Customer communication
---------------------- d. Teamwork
---------------------- e. Risks
2. Try to understand the SPMP and apply to your academic project.
----------------------
Describe at what extent this is applicable to your project.
----------------------
---------------------- 2.8 PROJECT EXECUTION, MONITOR AND CONTROL

---------------------- Managing Project Execution process requires the project manager and the
project team to perform multiple actions to execute the project management
---------------------- plan to accomplish the work defined in the project scope statement. Some of
---------------------- these actions are:
• Perform activities to accomplish project objective.
----------------------
• Expend efforts and spend funds to accomplish the project objects.
----------------------
• Staff, train and manage the project team members assigned to the project.
---------------------- • Obtain quotation, bids, offers or proposals as appropriate.
---------------------- • Select sellers by choosing from among potential sellers.
---------------------- • Obtain, manage and use resources including material, tools, equipment
and facilities.
---------------------- • Implement the planned methods and standards.
---------------------- • Create, control, verify and validate project deliverables.
---------------------- • Manage risks and implement risk response activities.

• Manage sellers and adapt approved changes into the projects scope, plans Notes
and environment.
----------------------
• Establish and manage project communication channels, both external and
internal to the project team. ----------------------
• Collect project data and report cost, schedule technical and quality
----------------------
progress and status information to facilitate forecasting.
• Collect and document lessons learnt and implement approved processes ----------------------
improvement activities.
----------------------
The project manager, along with his team, directs the performance of the
planned project activities and manages the various technical and organisational ----------------------
interfaces that exist within the project. This process is most directly affected by ----------------------
the project application area.
Project execution also requires implementation of the following: ----------------------
• Approved corrective actions that will bring anticipated project performance ----------------------
into compliance with the project management plan.
----------------------
• Approved preventive actions to reduce the probability of potential
negative consequences. ----------------------
• Approved defect repair request to correct product defects found by the ----------------------
quality process.
----------------------
Monitor and control project work
Monitor and control project work is performed to monitor project process ----------------------
associated with initiating, planning, executing and closing. Corrective or ----------------------
preventive measures are taken to control project performance. Monitoring is
an aspect of project management performed throughout the project. Monitoring ----------------------
includes collecting, measuring and disseminating performance information and
assessing measurements and trends to effect process improvements. Continuous ----------------------
monitoring gives the project management team insights into the progress of the ----------------------
project and chances to identify deviations, if any.
----------------------
Summary
----------------------
●● In between project initiation and project closure, various activities are ----------------------
being performed. These activities are highly integrated; that means we
cannot execute some of the activities in 100 percent isolation. ----------------------
●● The success of a project depends on effective integration of activities with
----------------------
each other and smooth coordination between them.
●● It is the responsibility of the project manager to keep all individual people ----------------------
and processes together and to maintain the balance. Project initiates
----------------------
to resolve underlying problems or to satisfy the needs. The needs and
problems can be imposed by internal or external factors. ----------------------
----------------------
Notes ●● Project Charter document officially announces the commencement of a
new project and gives authority to a project to utilise the project resources
---------------------- for project work.
---------------------- ●● Software industry is an external agency that provides solution to various
customers. Project initiation activity begins with the official request from
---------------------- customers; generally, it is included in the contract document.
---------------------- ●● Preliminary scope document contains high-level requirements of the
project. Project management plan defines how the project is to be executed
---------------------- and what is going to be produced.
---------------------- ●● Software Project Management plan also provides guidelines for scope,
quality, risk, cost and communication management.
---------------------- ●● Monitoring and controlling of a project is extremely essential in order to
ensure that there are not deviations.
----------------------
---------------------- Keywords
---------------------- ●● Proactive: Anticipating what will come next and being prepared for it
---------------------- ●● Organisation culture: Environment, which exists within the organisation,
mannerism or the style in which an organisation functions
----------------------
●● Constraints: Limited resources, which are available with the organisation.
----------------------
----------------------
---------------------- 1. Explain various tools. How do they facilitate project management?

2. Explain briefly the project charter development process.
----------------------
3. Explain the importance of process integration in project management.
----------------------
4. List various software engineering process models.
---------------------- 5. Explain why a project initiates.
---------------------- 6. Prepare project management plan for library management system.
---------------------- 7. Identify scope, constraints and assumptions of admission management

system.
---------------------- 8. What do you understand by control and monitoring?
---------------------- 9. Explain project execution along with essential processes involved in it.
---------------------- 10. Explain with the help of an example how input of one process will be
output of another process.
----------------------
11. As a project manager, how will you respond if the customer requests for
---------------------- changes after the execution of the project has already begun?
---------------------- 12. Explain the relationship between organisation culture and project
management.
---------------------- 13. State the importance of feasibility study and its effect on a project.

14. Being a project manager, how will you work with constraints surrounding Notes
the project?
----------------------
15. Give three examples of project constraints and assumptions.
16. Providing tools to an immature organisation merely allows the developers ----------------------
to produce the wrong product faster. Power tools require maturity to be
----------------------
used effectively. Do you agree with this statement? Justify your answer.
17. How does a project manager decide on the scope of a project? ----------------------
18. Explain the scope of inventory management system. ----------------------
19. What do you understand by scope creep? ----------------------
20. If the output is preliminary scope statement, state its input and tools and
techniques. ----------------------
----------------------
----------------------
----------------------
----------------------
1. True
2. False ----------------------
3. True ----------------------
----------------------
----------------------
Match the following.
----------------------
i. c
ii. e ----------------------
iii. d ----------------------
iv. b ----------------------
----------------------
----------------------
1. A project charter can also be called ----------------------
ii. The project initiation document (PID) ----------------------
iii. Scope baseline ----------------------
2. The purpose of a charter is to
----------------------
i. Concisely represent the project at a high level
----------------------
ii. Get management approval
----------------------
----------------------
i. e
----------------------
ii. d
---------------------- iii. a
---------------------- iv. b
----------------------
----------------------
Fill in the blanks.
----------------------
1. Preliminary scope statement is prepared before the release of project
---------------------- charter.
---------------------- 2. Preliminary scope statement is further refined into project scope statement.
3. Time, money, people, space are considered resources.
----------------------
----------------------
---------------------- 1. False
---------------------- 2. True
3. False
----------------------
---------------------- Suggested Reading

---------------------- 1. Futrell, Robert, Donald Shafer, Linda Shafer. Quality Software Project
---------------------- management.
----------------------
3. Pressman, Roger S. Software Engineering.
----------------------
4. A guide to the Project Management Body of Knowledge.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Managing Scope of the Project
UNIT
3
Structure:
3.1 Introduction
3.2 Scope: Meaning
3.3 Software Scope Management Plan
3.4 How to define Scope
3.5 Work Breakdown Structure (WBS)
3.6 Controlling the Scope
3.7 Scope Verification
Summary
Key Words
Suggested Reading
Managing Scope of the Project 51

Notes
Objectives
----------------------
----------------------
• Explain how to manage the scope of the project
----------------------
• Define the scope of the project
---------------------- • Create work breakdown structure
---------------------- • Identify how to control changes in scope
---------------------- • Discuss how to verify the scope of the project
---------------------- 3.1 INTRODUCTION

---------------------- In this unit, we shall be discussing the scope of a project and ways to manage the
---------------------- scope. Defining the scope of a project is crucial to the further activities related to
the project. Thus, the scope document is the base document for all such project
---------------------- management activities. Many activities depend on scope, for example, without
scope, we cannot estimate effort, without estimate, we cannot schedule and
---------------------- prepare budget and without budget and schedule, we cannot execute the project.
---------------------- Scope not only needs to be defined but also requires to be controlled because a
single change in the scope may change the budget and schedule of the project.
---------------------- The objective of every organisation is to make the project successful and earn
---------------------- profit. If the scope is not controlled properly, it may reduce the profit of the
organisation. Continuous changes in the scope may imbalance the project and
---------------------- ultimately may fail. Hence, scope management becomes a very important
activity. Scope management includes requirement gathering, analysis and
---------------------- elicitation of requirement, controlling changes to scope and verification of
---------------------- scope when product is ready.
Let us first understand what scope is and then we shall look at how to control
----------------------
change.
----------------------
3.2 SCOPE: MEANING
----------------------
Scope refers to all the work involved in creating the products of the project and
---------------------- the processes used to create them. We know that in order to begin any work, we
---------------------- need some information. Managing the scope of a project includes the processes
required to ensure that the project includes all the work required and only the
---------------------- work required to complete the project successfully. Managing the project scope
is primarily concerned with defining and controlling what is and is not included
---------------------- in the project.
---------------------- To construct an ERP software needs high-level requirements. Therefore,
constructing an ERP software only initiates the thinking process. We cannot
----------------------
build software on such small requirement. Hence, we further drill down the
---------------------- requirement to a sufficient level with which we start building the software.

However, the detailing process becomes overwhelming because any single Notes
system does not work completely in isolation. It interacts with other parts
of the system; hence, we must define what part this project will cover and ----------------------
exclude. To reduce overwhelming requirements, we put boundary and confine
our requirements within that boundary. For example, to construct a building, ----------------------
we first define the square footage area of the building. Similarly, in software ----------------------
development, the scope is defined first. There is a slight difference in scope
and requirement. Scope defines the boundary while requirement defines the ----------------------
detailed specification of the product or project. Scope clearly defines what is to
be delivered and not delivered as a deliverable of the project. ----------------------
We are studying project management; hence, our main concern is how to ----------------------
manage various processes such as planning, estimation and budgeting. But for
----------------------
technical project management, only scope is not sufficient. We require detailed
requirement document called Software Requirement Specification document ----------------------
(SRS).
----------------------
Scope Management process for a project includes the following activities:
1. Collect requirements: It is the process of defining and documenting the ----------------------
needs of the customers to meet the objectives of the project.
----------------------
2. Defining the scope: This process involves developing a detailed description
of the project and product. ----------------------
3. Creating Work Breakdown Structure (WBS): This process involves ----------------------

subdividing project deliverables and project work into smaller, more
manageable components. ----------------------
4. Verifying the scope: It is the process of formalising acceptance of the ----------------------

completed project deliverables.
----------------------
5. Controlling the scope: This process involves monitoring the status of the
project and product scope and managing changes to the scope baseline. ----------------------
Type of scope ----------------------
Scope can be defined for project as well as product. In the context of a project, ----------------------
the scope can be of the following type.
Project Scope: ----------------------
Project scope defines the work to be performed to deliver the software. In ----------------------
order to develop a software, we perform various activities such as planning,
monitoring and control, budgeting, scheduling, communicating, reporting and ----------------------
documentation. Each such activity is clearly defined in the project scope. As ----------------------
each project is unique, project requirement varies in detailing, for example,
communication and reporting requirements may vary with customer. ----------------------
Product Scope: ----------------------
Product scope defines the expectations of the customer from the product.
----------------------
Product scope broadly consists of functional and non-functional requirements
of the software. Functional requirements include various application specific ----------------------

Notes functionalities such as payroll processing, ledger posting, stock update etc.
Non-functional requirements describe the quality and security requirements
---------------------- such as user authorisation, backup and restore, processing speed and response
time etc. Product scope document acts as a base document for managing
---------------------- software development activities such as requirement gathering, analysis and
---------------------- design, coding and testing etc. Product scope is generally further elaborated
into comprehensive software requirement specification (SRS) document. SRS
---------------------- document is usually prepared after preliminary scope definition.
----------------------
----------------------
State True or False
----------------------
1. Product scope defines the work to be performed to deliver the
---------------------- software.
---------------------- Fill in the blanks.
---------------------- 1.
Product scope broadly consists of _____________ and
_________________ requirements of the software.
----------------------
---------------------- Activity 1
----------------------
1. For an ATM system, identify the functional and non-functional
---------------------- requirements.
---------------------- 2. List 10 functional requirements of library application software.
---------------------- 3. List 10 non-functional requirements of banking software.
----------------------
3.3 SOFTWARE SCOPE MANAGEMENT PLAN
----------------------
In the initial stage, during scope definition phase, the customer has influence on
---------------------- the project and the project team may not have a clear vision about the scope of
---------------------- the product; many a times, the customer is not sure what is to be documented in
the scope. The result is incomplete scope document. Incomplete scope in initial
---------------------- stage adds requirements in later stages of development. Poorly managed scope
leads to cost and schedule overruns. In order to avoid this, we must plan how
---------------------- we are going to manage the scope. An output of initiation processes is a project
---------------------- charter, which is a key document for formally recognising the existence and
providing a broad overview of a project.
---------------------- Scope management plan is a detailed document, which describes how we are
---------------------- going to define the scope, what tools we are using to manage the scope, how we
are going to control the scope and how we are going to verify the scope.
---------------------- Scope management plan and scope statement provides common understanding
---------------------- within the team. This plan provides guidelines to document the project scope.

The scope management plan further guides how the work break down structure Notes
will be developed.
How you document the scope is important since your team is a discrete ----------------------
combination of techno-functional stakeholders. Inherent documentation ----------------------
cannot provide each and every detail about the project and solve the queries
of the stakeholders. Scope management plan provides guidelines on how the ----------------------
scope document, which includes the outline of document and description of
each content etc., is maintained. Generally, scope management plan contains ----------------------
descriptive language and is decomposed into manageable activities. ----------------------
This decomposition is presented in a hierarchical structure called Work Breakdown
Structure (WBS). Scope management plan provides guideline on how the WBS ----------------------
is developed and maintained. Developing scope management plan from scratch ----------------------
is a time-consuming activity. You need some information at hand to develop such
a plan. An easy way to find such information is to refer to the previous project ----------------------
scope management plan or use templates. Asking the experts who have developed
similar projects helps to understand critical points in the current project. ----------------------
Scope management plan is generally created as a subsidiary plan of project ----------------------
management plan. If detailed guidelines are provided in project management
plan, then there is no need to rewrite the same. You can directly refer these ----------------------
guidelines from project management plan. Other relevant information essential ----------------------
for developing scope management plan can be accessed from the project charter,
preliminary scope statement. ----------------------
While developing the scope management plan, you must take into consideration
----------------------
the existing infrastructure and human resources. Your existing infrastructure or
your team may not be capable of delivering everything asked by the customer. ----------------------
For example, the customer may ask you to use embedded technology to provide
mobile computing but your team may not have sufficient hands-on experience ----------------------
in this technology. The scope that cannot be delivered through available
----------------------
infrastructure and resources need not be accepted as a part of the scope and
clearly excluded from the project scope. ----------------------
Controlling the scope is another important activity. The scope management plan
----------------------
provides guidelines on how the scope is controlled. Someone rightly said, “If
project is allowed to change freely, the rate of change will exceed the rate of ----------------------
progress”. Despite your careful and detailed planning, your scope is likely to
change. These changes need to be properly managed and controlled. Request for ----------------------
change directly affects project schedule and cost. Well-defined change control
----------------------
process can smoothly handle such changes.
Ultimate aim of any project is to deliver the product or service that satisfies the ----------------------
expectations and need of the customer. To ensure that the delivered product is
----------------------
acceptable to the customer, the project scope plan must provide the guidelines,
which describe how the product deliverables are verified. Verification process ----------------------
evaluates a product or service and involves processes such as review meetings,
checklists, standards and organisational conventions, requirements and ----------------------
specifications. The guidelines for verification process are described in the scope
----------------------
management plan.

Notes
----------------------

1. Verification process involves which of the following processes?
----------------------
i. Review meetings
----------------------
ii. Project plan
---------------------- iii. Scope management plan
---------------------- iv. Checklists
---------------------- v. Standards and organisational conventions
Fill in the blanks.
----------------------
1. ___________________ provides guidelines on how the WBS is
---------------------- developed and maintained.
----------------------
---------------------- Activity 2
----------------------
Discuss with professionals (Project Managers) in the IT field as to how
---------------------- they mange the scope of the project before beginning the development.
----------------------
3.4 HOW TO DEFINE SCOPE
----------------------
Defining scope is the process of developing a detailed description of the project
----------------------
and product. Preparation of a detailed project scope statement is critical to the
---------------------- success of a project and builds upon the major deliverables, assumptions and
constraints that are documented during project initiation. During planning,
---------------------- the project scope is defined and described with greater specificity, as more
information about the project is known. Existing risks, assumptions and
----------------------
constraints are analysed for completeness; additional risks, assumptions and
---------------------- constraints are added as required.
---------------------- Defining scope involves subdividing the major project deliverables into smaller,
more manageable components (WBS). Defining scope is the process in which
---------------------- all high level requirements defined in the preliminary scope statement are
further elaborated to sufficient details so that the team can easily understand
---------------------- and execute requirement. You can refer the guidelines on how to define and
---------------------- control scope, as defined in the scope management plan. In practice, request
for change always occurs during execution; these change requests need to be
---------------------- properly updated into the scope statement.
---------------------- Scope definition process begins after the scope planning process and requirements
gathering. A customer may give ample requirements but all may not match with
---------------------- the stated objective of the project. Defining scope means filtering out those

requirements, which are extra and cannot fit in the approved budget and time. Notes
Sometimes, a customer may insist on including specific requirements. In that
case, the project manager has to negotiate with the customer and make him ----------------------
agree with the scope.
----------------------
Scope definition is an interactive process and while defining scope, original
plan may revise. While making scope definition, two documents are mainly ----------------------
used, namely the Project Charter and preliminary scope statement documents,
----------------------
as input to the scope definition process. All detailed requirements are checked
with the budget, time and quality requirements described in project charter and ----------------------
preliminary scope statement. What is mentioned in charter and preliminary
scope is not sufficient. You have to check whether the project can be executed ----------------------
with the available team and infrastructure. For example, the customer may ask
----------------------
to provide RFID technology to track the material in logistics or may ask for
image processing for specific application; however, you may not have technical ----------------------
expertise on this technology or necessary software to implement; in that case,
you will have to negotiate with the customer. ----------------------
While defining scope, you should keep in mind that you are providing only ----------------------
required things to the customer to achieve the objective of the project. Anything
extra than required is called as ‘gold plating’. A good project manager and his ----------------------
team should always avoid such gold plating. Work excluded from the project
----------------------
scope need to be clearly defined. Various tools and techniques such as product
analysis, stakeholder analysis and alternative identification are used in this ----------------------
process.
----------------------
The output of scope definition process is project scope statement. This document
contains more details than the preliminary scope statement. Once the scope is ----------------------
defined, it is further detailed into Software Requirement Specification (SRS)
document. SRS describes requirements in detail while scope statement just ----------------------
provides requirements in terms of deliverables. The scope document becomes
----------------------
an input to SRS development for detailing requirement.
Generally, project scope document includes the following: ----------------------
1. Project Objective: Objective of project is the definite purpose behind ----------------------

the initiation of the project. The objective gives direction to the project. A
project can have multiple objectives. Very few organisations specifically ----------------------
define the objective of the project; most of the time, objectives are ignored. ----------------------
A project manager must define the objective of the project. Defining
project objectives needs skill and clarity about the purpose. Ability to ----------------------
visualise the work undertaken with possible gains and losses improves the
quality of the work. Quite often, the objectives are stated as a formality. ----------------------
Such objectives never help the project team. A well-stated objective can ----------------------
decide whether the project is a success or a failure.
2. Technique for setting Goal/Objective: Setting goal or objective means ----------------------
writing desired outcome of the project. Our tendency to think in general ----------------------
terms adds vagueness to the objective. Vague objectives neither support
any direction nor help in planning the activities to achieve the desired ----------------------

Notes purpose. To set clear and precise objective, SMART technique can be
used. Let us understand the meaning of the word SMART in defining the
---------------------- objective.
---------------------- ●● ‘S’ stands for Specific. Specificity helps you to visualise your objective.
●● ‘M’ stands for measurable. Your objective should be measurable.
----------------------
●● ‘A’stands for Achievable. Your capacity determines how much you can
---------------------- achieve in a given time frame. You should always take into consideration
your (in case of Project-Project Team) core strength.
----------------------
●● ‘R’ stands for realistic. Can you achieve an unreal goal?
---------------------- ●● ‘T’ stands for time bound. While setting your goal, you should define the
---------------------- target date at which you want to achieve the desired result. Here you can
state the start and end date in your objective.
---------------------- 3. Product Scope Description: Let us quickly overview the contents of
product scope description.
----------------------
●● Project Requirement: This section describes the project level
---------------------- requirement and not product requirements. Project level requirements
---------------------- could be related to project planning, budgeting, schedule and estimation
and communication. For example, use of automated tools such as MS
---------------------- Project or any other project management software could be project-level
requirement.
----------------------
●● Project Deliverables: Once we understand project and product
---------------------- requirement, we have to convert these requirements into deliverables.
Deliverable is the actual output or end result delivered to the customer. We
---------------------- must understand the difference between deliverables and requirements.
---------------------- For example, you are assigned, as a Project Manager, to deliver the
word editing software; then main deliverable of the project is word-
---------------------- editing software. However, providing facilities such as spell-checking,
printing, mail connectivity in your editing software are the requirements
---------------------- of the product. Deliverables are nothing but collective requirements.
---------------------- Deliverables comprise of requirements.
●● Project Boundary: Project boundary explicitly states what is included
---------------------- and excluded from the project. For example, in ERP implementation
project, you can explicitly state that historic legacy data migration is
----------------------
excluded from the scope of the project work, since many a times the
---------------------- migration becomes a separate project and it heavily consumes your time
and cost. If you do not explicitly define what is excluded from the project,
---------------------- your stakeholders may assume that you are supposed to deliver.
---------------------- ●● Product acceptance criteria: Product acceptance criteria define how the
delivered product is accepted by the customer. It defines various processes
---------------------- and procedures and guidelines for accepting criteria. Once your product is
ready, it needs to be formally accepted by the customer for releasing the
----------------------
payment. Before accepting a product, the customer may want to check
----------------------

quality, fitness for use and features of the product as per scope. Notes
●● Project constraints: In order to deliver a product, we are utilising various
resources. These resources directly or indirectly affect the performance ----------------------
of the project. The main constraints are scope, budget, schedule, human ----------------------
resources and technology. Each of these resources has a limitation with
respect to the project. We cannot exploit these constraints beyond their ----------------------
limitation.
----------------------
●● Time constraint: When projects are limited by specific time frames, you
cannot delay or exceed that time limit. For example, some projects need ----------------------
to be finished in a specific time; after that time, there is no importance for
that project, e.g. implementation of electoral voting system to be finished ----------------------
before the declared date of election. ----------------------
●● Budget constraint: Budget constraint defines total budget sanctioned for
the project. If project exceeds beyond the budget, the customer may not ----------------------
be liable for paying the extra amount; hence, enough care should be taken ----------------------
while defining the scope of the project so that only required things are
delivered to the customer within the given budget. ----------------------
●● Schedule constraint: A constraint that affects or delays your project
----------------------
activities is called scheduled constraints. For example, organisations
have only one software architect assigned early on some project and he ----------------------
is not available for the project next two months. The availability of a
software architect can delay your project schedule by two months. Here ----------------------
the architect is the source of schedule constraint.
----------------------
●● Technology Constraint: In IT industry, new technologies are always
emerging and project team may not have hands-on experience in the newest ----------------------
technology. You cannot afford to have team expertise in every technology
----------------------
and you need to manage the project with available technology. Many a
times, the technology itself has limitation, for example, the capacity of ----------------------
a database to store huge data, support for new features such as object-
oriented technology. These constraints are called technology constraints ----------------------
and are written explicitly.
----------------------
●● Project Assumptions: Assumptions are the things that you believe to
be true. With your prior experience, you assume that something will go ----------------------
in a particular way but in reality, it may not be true. In a project, you
----------------------
assume that the key resource is available till the project completion but
in reality, he may leave the project prior to completion. Another most ----------------------
common assumption could be that the team will grasp new technology in
short time. These assumptions are possible sources of risk and need to be ----------------------
mitigated to avoid project failure.
----------------------
----------------------
----------------------
----------------------

Notes
----------------------

---------------------- 1. The objective gives direction to the project.
----------------------
i. Project Deliverables a. Explicitly states what is included and
---------------------- excluded from the project
---------------------- ii. Project Boundary b. Things that you believe to be true
iii. Project Constraints c. Actual output or end result delivered to
---------------------- the customer
---------------------- iv. Project Assumptions d. Resources that directly or indirectly
affect the performance of the project
----------------------
----------------------
Activity 3
----------------------
1. Use SMART technique and define objective for the library system.
----------------------
2. Prepare a broad outline of product scope document for a system of
---------------------- your choice. Ensure that you take into consideration all the attributes
of the product scope.
----------------------
----------------------
3.5 WORK BREAKDOWN STRUCTURE (WBS)
----------------------
WBS is the process of subdividing project deliverables and project work into
---------------------- smaller, more manageable components. WBS is the hierarchical breakup of work
to be executed either in team or by a single person to accomplish the project
---------------------- objectives and create the required deliverables, with each descending level of
---------------------- the WBS representing an increasingly detailed definition of the project work.
The WBS organises and defines the total scope of the project and represents the
---------------------- work specified in the current approved project scope statement.
---------------------- Work break down structure is the center of many project management activities.
It is a bridge between project scope statement and project execution. It is a map
---------------------- that guides us on how to reach to the destination of project.
---------------------- Can we plan the project if we do not know what different activities need to
be performed? Surely, we cannot. WBS defines all the work that needs to
---------------------- be performed to complete the project. It is the heart of the planning process
and interacts with other processes such as estimation, scheduling, budgeting,
---------------------- verification and controlling as shown in the following figure.
----------------------
----------------------

Verification & Notes
Controlling
----------------------
Estimating Budgeting ----------------------
WBS ----------------------
----------------------
Scope Planning
----------------------
Scheduling ----------------------
Fig. 3.1: WBS Process ----------------------
Let us assume that you are developing a word-editing software. In the ----------------------
scope statement of word-editing software project, it only mentions the main
----------------------
functionalities of the word-editing software such as file editing facility, printing
and formatting facility etc. However, in order to deliver word-editing software, ----------------------
you need to perform various processes such as further requirement detailing,
preparing data flow diagram or UML diagrams such as use case, designing ----------------------
architecture of the product, coding, testing, preparation of online documentation
----------------------
etc. We cannot manage the entire project as whole or single activities. We need
to break down the project further into manageable activity. ----------------------
WBS is usually prepared before the planning; however, it may be revised as
----------------------
WBS serves many purposes to many people of the team. It can be used as
input to planning, estimation, scheduling, scope verification, status reporting. It ----------------------
acts as a communication tool and ensures the common understanding of project
scope amongst all stakeholders. ----------------------
We can manage small projects without WBS because we know what work needs ----------------------
to be done and who will do what since the team is small. You can simply keep
all relevant data in your memory or diary and manage the project. However, in ----------------------
large and complex projects, hundreds of employees are working on thousands ----------------------
of tasks. In that case, you need diagrammatically presented work decomposition
so that you can share work activities information across the team. ----------------------
WBS can be created separately for product scope or project scope or a ----------------------
combination of both. Products WBS generally decompose the product-related
activity and project WBS decompose project activities. Generally, WBS is ----------------------
shown in hierarchy as depicted in the following diagram.
----------------------
----------------------
----------------------
----------------------
----------------------

Notes Project deliverables
----------------------
---------------------- Milestones
----------------------
Work Packages WBS dictionary
----------------------
----------------------
ACtivities
----------------------
Fig. 3.2: WBS Hierarchy
----------------------
Let us understand various components of sample WBS structure. The following
---------------------- figure shows the WBS for an ERP project.
Project Deliverable
---------------------- ERP Project
----------------------
Milestones
----------------------
Analysis Design Development Testing
----------------------
----------------------
Work packages
---------------------- Design Design Design
Database Screens Reports
----------------------
Activities
---------------------- Design Login
Screen
---------------------- Create Normalize
Structure Structure
Design Master
---------------------- Screen
---------------------- Fig. 3.3: WBS Structure for ERP System
---------------------- • Project Deliverable
---------------------- Project deliverable is the final output to be delivered to the customer. As seen in
Figure 3.3, the ERP project is the deliverable.
----------------------
• Milestones
---------------------- Milestones are shown at the first level of WBS diagram and top node in the
hierarchy. Fig. 3.3 shows typical milestones of software engineering activity
----------------------
such as analysis, design, coding and testing. However, you may add project
---------------------- management activities such as planning, scheduling and budgeting in the same
diagram or prepare separate WBS if the diagram is too much crowded.
----------------------
Milestone is a significant event in a project. Milestone is not an activity to
---------------------- be performed; rather it is an outcome of many activities. Hence, milestones

are also called as zero duration activities. When the project progresses ahead, Notes
we will reach many milestones. For example, requirements gathered, prototype
finished are the major milestones. To reach to the milestones, you may have ----------------------
to perform many individual activities. Milestone helps to identify whether the
project is leading in the right direction. After each milestone is reached, the ----------------------
project manager can take a review meeting with his team members. ----------------------
• Work Package
----------------------
Next to milestone, work packages are shown at the second level of WBS
diagram. Here design milestone is decomposed into three work packages such ----------------------
as database design, screen design and report design. These work packages may
----------------------
be further divided into small activities. For example, work package could be to
gather requirement; design screens can be further decomposed to activity level ----------------------
such as designing screen for login, design screen for master etc. Activities are at
the lowest level in the WBS and need not be decomposed further. ----------------------
WBS dictionary: WBS dictionary is a supporting document for WBS. WBS ----------------------
dictionary contains the details of work package and is generally made for each
work package. As WBS is a graphical presentation, we cannot show detailed ----------------------
information in the diagram. Just a brief description of work package such as
----------------------
“Design logon screen” is not sufficient for the team member to execute the
task. Hence, further details such as work description, deliverables, acceptance ----------------------
criteria, assumptions, expected date of delivery, duration of task are added
in the WBS dictionary, as shown in the following WBS dictionary template. ----------------------
You may add any further information that you think relevant to the package.
----------------------
WBS dictionary is linked with WBS by Work package number. Related work
packages are grouped and given control number. That control number will be ----------------------
helpful in controlling the cost of the project.
----------------------
Table 3.1: WBS Dictionary
----------------------
WBS Dictionary
Project # Project Title ----------------------
Work package No Control Account No
----------------------
Date of creation Date of revision
Work package description ----------------------
Deliverables
----------------------
Acceptance Criteria
Assumptions ----------------------
Duration Expected date of delivery
----------------------
Resource assigned Resource responsible
Approved by: Project Manager ----------------------
How to create WBS? ----------------------

The main purpose of creating WBS is to ensure that all activities required for ----------------------
delivering projects are captured and nothing is missed out. During a project,
your team may be executing hundreds of technical and managerial activities. ----------------------

Notes With the help of hierarchical WBS diagram, you can show major activities so
that you can check with your team if anything is missing. WBS only describes
---------------------- major tasks and it is not a “to do” list, which provides every minute detail.
---------------------- Creating WBS is a team activity in which the Project manager, along with the
team, defines major activities or deliverables of the project and decomposes
---------------------- them in small manageable activities called as work packages. The decomposition
technique helps you to identify the various activities of the project.
----------------------
Now you may ask why to create WBS every time if the project executes a
---------------------- similar task? You are right because usually, many of the technical tasks such as
coding, testing, designing are there in every project though projects are unique.
----------------------
However, work packages may differ hence you need to create WBS and WBS
---------------------- dictionary for every project. If projects are similar, you can use WBS templates
of previous projects and make necessary changes instead of recreating the
---------------------- entire WBS. However, you should not lose out on the basic purpose of the WBS
while using templates. WBS can be created in various ways and there is not any
----------------------
unique method for creating WBS. WBS is generally represented in tree-like
---------------------- hierarchical structure where top node of WBS represents main deliverable of
the project and the last leaf in the tree is called work package. Sometimes, work
---------------------- elements are so huge in number that you cannot easily draw in tree-like format.
In that case, WBS will be represented as an indented text in the Excel sheet.
----------------------
WBS can be presented in many forms. You may choose what is appropriate,
---------------------- what suits the project and can be understood by everyone in the team. Before
creating WBS, you must make sure of the following:
----------------------
●● First decide the approach of creating WBS, meaning the way you are
---------------------- defining hierarchies.
---------------------- ●● Second, decide the depth of the tree. For better control, the level in WBS
should not exceed the 5th level. If it goes beyond the 5th level, it becomes
---------------------- complex to manage and control.
---------------------- ●● The third thing is to decide which activities should be shown on the WBS.
It is advisable to show the activities, which require minimum one week
---------------------- of duration to complete, thereby automatically excluding all your day-to-
day activities.
----------------------
Another advantage of showing week duration activity is that you can monitor
---------------------- and update the weekly status of the project easily. With WBS, you can ask your
team to submit the status in numbers of activities completed.
----------------------
WBS Techniques:
----------------------
There is no specific way of creating WBS. Same project scope may be
---------------------- decomposed in many different ways. To have more clarity, we will discuss the
two different ways in which you can create WBS.
----------------------
----------------------
----------------------

The following diagram describes the sample WBS for Word-editing software. Notes
Word Editor Word Editor
----------------------
File utility Printing Graphics Requirements Design Coding ----------------------
----------------------
Requirements Design Coding File utility Printing Graphics
----------------------
Figure A Figure B
----------------------
Fig. 3.4: Sample WBS for Word Editing Software
----------------------
Generally, activities are arranged in top down manner. The 0 level of the activity
is the highest node in hierarchy. It describes the name of the project or the ----------------------
main deliverable of the project written in a short and meaningful way. First
level in hierarchy usually represents the milestones, meaning this activity is the ----------------------
outcome of other activity. Here you can show two approaches, either you can
show the major deliverables or modules of the project such as, in this case, File ----------------------
Utility, Printing, Graphics in first level as shown in Figure A or you can show ----------------------
software engineering tasks such as requirements gathering, design, coding in
first level as shown in Figure B. ----------------------
For each module, say, for example, file utility module, you need to perform three ----------------------
activities- collect the requirements for file utility module, design that module
and code that module. You can show these software engineering activities in ----------------------
2nd level as shown in Figure A. In the second approach, you can decompose
software engineering activities in various modules as shown in Figure B. Both ----------------------
the approaches are the same and they do not make any practical difference in
----------------------
how you execute tasks. It is your personal way of looking and managing how to
organise work. Another question that may come to your mind is how to sequence ----------------------
the activities. Here you should note that WBS does not signify any sequence.
----------------------
Activity 4 ----------------------
Prepare a work breakdown structure for the following projects: ----------------------
a. Library management system ----------------------

b. Order processing system ----------------------
c. Flight reservation system
----------------------
----------------------
3.6 CONTROLLING THE SCOPE
----------------------
Scope controlling is an important activity and needs to be performed throughout
the project. The process ensures that scope is within budget and schedule. Scope ----------------------
controlling process is generally performed after the execution process. In this
----------------------
process, the deliverables generated in execution process are measured against
the scope baseline. Scope baseline consists of project scope statement, WBS ----------------------
and WBS dictionary.
Notes Controlling scope means preventing unnecessary changes. In order to control
the changes one must know how and why changes occur during the project
---------------------- and how to control them. There are various reasons behind change request; it
is possible that your requirements are not properly captured, end user has not
---------------------- completely transferred knowledge to you or the deliverables are not matching
---------------------- with the expectations of the customer. Once you know the possible causes
behind the change, you can take corrective actions. For example, you can use
---------------------- techniques such as using case diagrams for capturing requirements, freezing
requirements by signing of SRS etc.
----------------------
Another thing you need to control is scope creep. It may occur due to additional
---------------------- requirements of the customer or sometimes your team players may add extra
features, which are initially not in scope. For example, many times, programmers
---------------------- want to experiment new things that they recently learnt and accordingly, they
keep on adding new features to the project. However, these features are not in
----------------------
the project scope. This may add to problems in later stages of implementation.
---------------------- Hence, such changes need to be controlled tactfully. You need to maintain a
balance between the creativity and experimentation of a programmer and the
---------------------- scope and schedule of the project.
---------------------- Various techniques such as change control system, variance analysis, re-
planning and configuration management system etc. can be used for controlling
---------------------- scope. Let us have an overview of these techniques.
---------------------- • Change control system: Every requested change should be executed
through the change control system, wherein you can ask your team to
---------------------- implement only approved changes. The change control system will
continuously monitor and control through feedback loop. The feedback
---------------------- loop provides facility to correct the deviation from standard.
---------------------- • Variance Analysis: This tool measures the difference between what
was defined in the scope baseline and what was actually created. It also
---------------------- determines the cause of variance and accordingly corrective action can be
---------------------- taken.
• Re-planning: Change does not come alone. Only correcting changes
---------------------- in source code is not sufficient. You need to check the impact of these
---------------------- changes on schedule and budget. Re-planning tool is used to evaluate the
impact of change on cost, quality, schedule and risk. After evaluation, the
---------------------- changes are updated into WBS and WBS dictionary. This further changes
the estimation and needs re-planning.
----------------------
• Configuration management system: Every change needs to be reflected
---------------------- in various components of the project such as source code files, design
documents, testing documents, planning documents etc. Configuration
---------------------- management system is a methodic way to keep track of various changes
to documents and source codes. Various software tools are available
----------------------
to manage the configuration of project. Also you can manually track
---------------------- changes in an Excel sheet. Most of the technologies today provide inbuilt
configuration management system, for example, Microsoft provides
---------------------- Visual Source Safe (VSS) for controlling versions of source code.

Notes
----------------------
1. Controlling scope means preventing ________ changes.
----------------------
Multiple Choice Single Response
----------------------
1. Which tool measures the difference between what was defined in the
scope baseline and what was actually created? ----------------------
i. Change Control system ----------------------
ii. Variance Analysis
----------------------
iii. Re-planning
----------------------
iv. Configuration Management system
----------------------
----------------------
Activity 5
----------------------
1. With the help of internet, prepare a list of five change management
----------------------
tools.
2. By surfing the internet, find out features of various configuration ----------------------
management systems.
----------------------
----------------------
3.7 SCOPE VERIFICATION
----------------------
Scope verification process involves formal acceptance of the project scope by
the stakeholders. It verifies that software product meets the objectives of the ----------------------
project defined in scope statement and that each deliverable of the product is
as per the acceptance criteria defined in the scope management plan. If all the ----------------------
deliverables meet the acceptance criteria, the customer formally accepts the ----------------------
product.
Before scope verification, it is ensured that the deliverables meet the quality ----------------------
requirements. Quality control checks whether the project meets the quality ----------------------
requirement of the product, as described in the quality plan. Scope verification
is generally performed after the quality control process. ----------------------
Scope verification process begins when the execution is over and deliverables ----------------------
are ready for final acceptance testing. Scope verification process checks each
deliverable at work package level. Scope verification process refers project ----------------------
management plan, WBS and WBS dictionary. Project scope management plan
----------------------
contains the details about how the scope is verified, at what level scope should
be verified, how customer is going to accept the scope etc. You can get the ----------------------
details of work package and deliverables in work breakdown structure and
project scope statement. ----------------------

Notes The outputs of the scope verification process are accepted deliverables,
requested changes and recommended corrective action. During inspection, the
---------------------- stakeholders suggest some changes or corrective actions and these changes
need to be handled with integrated change control system.
----------------------
The main tools that can be used to verify the scope are reviews, inspections and
---------------------- walkthroughs.
---------------------- Reviews
Review, also called a walkthrough, is the manual process in which problems are
----------------------
uncovered through the direct examination of each component of the product.
---------------------- There is a team of reviewers. Each member plays a specific role. All team
members are formally trained and know how to conduct reviews. Reviews can
---------------------- be conducted in various ways and formatted as per the organisation policy and
nature of the project. Reviews could be formal reviews or informal. A properly
----------------------
managed review ensures early detection of problems, which further minimises
---------------------- overall project cost.
---------------------- Another type of review is Peer Review. It involves methodical examination

of deliverables. The activities of peer review should be well planned and the
---------------------- defects in software deliverables should be identified and removed.
---------------------- Peer review is a defined key process area for CMM (capability maturity model)
level 3. As per CMM,
---------------------- Inspection
---------------------- Inspection includes activities such as measuring, examining and verifying
to determine whether work and deliverables meet requirements and product
----------------------
acceptance criteria.
---------------------- Walkthrough
---------------------- This review is facilitated by the producer of the material being reviewed. The
participants are led through the material in one of two formats: the presentation
---------------------- is made without interruptions and comments are given at the end or comments
---------------------- are made throughout. In either case, the issues raised are captured and published
in a report distributed to the participants. Possible solutions for uncovered
---------------------- defects are typically not discussed during the review.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
1. Which of the following are the tools used to verify scope?
----------------------
i. Reviews
----------------------
ii. Inspections
iii. Quality control ----------------------
iv. Change control ----------------------

v. Walkthroughs ----------------------
----------------------
Activity 6 ----------------------
----------------------
Conduct an interview with at least three software project managers from
different organisations, focussing on the techniques they used for scope ----------------------
verification. Prepare a brief report of your study.
----------------------
----------------------
Summary
----------------------
●● Scope is the description of the work to be delivered to the customer.
●● Scopes are divided into two types- Product Scope and Project Scope. ----------------------
●● Project scope defines the deliverables / activities of the project while ----------------------
product scope defines detailed description of product features and
functionality. ----------------------
●● Scope management plan is the document that describes how the scope of ----------------------
the project is defined, managed and controlled.
----------------------
●● Scope defines the boundary of the project, which describes what is
included in and excluded from the project. ----------------------
●● Scope is one of the important documents since all project activities such
as planning, estimation, costing etc. are based on the scope. ----------------------
●● WBS is a hierarchical structure that describes the breakup of the project ----------------------
into deliverables and manageable activities. The smallest unit in WBS is
called work package. ----------------------
●● WBS dictionary is another document maintained along with WBS, ----------------------

which describes the details of activities such as work description, person
responsible, estimated duration, quality requirement etc. ----------------------
●● Scope statement along with WBS and WBS dictionary is called scope ----------------------
baseline. Scope baseline is used for measuring the performance of the
project. ----------------------

Notes ●● Scope controlling is an important activity and needs to be performed
throughout the project. Controlling scope means preventing unnecessary
---------------------- changes.
---------------------- ●● Techniques such as change control system, variance analysis, re-planning
and configuration management system etc. can be used for controlling
---------------------- scope.
---------------------- ●● After planning, controlling, managing and executing the scope,
deliverables are ready for deployment. The completeness of all deliverables
---------------------- is checked in scope verification process. A project is successful when all
stakeholders formally accept the deliverables; hence, scope verification is
---------------------- a very important activity.
---------------------- ●● Tools such as inspection, reviews etc. are used in scope verification
process.
----------------------
---------------------- Keywords
---------------------- ●● Scope: It refers to all the work involved in creating the products of the
project and the processes used to create them.
----------------------
●● Scope management plan: It is a detailed document, which describes
---------------------- how we are going to define the scope, what tools we are using to manage
the scope, how we are going to control the scope and how we are going
---------------------- to verify the scope.
---------------------- ●● Defining Scope: Process of developing a detailed description of the
project and product.
----------------------
●● Work Breakdown Structure: WBS is the process of subdividing project
---------------------- deliverables and project work into smaller, more manageable components.
It displays the breakup in a hierarchical structure.
----------------------
●● Milestone: It is a significant event in a project. Milestones are also called
---------------------- zero duration activities.
●● Scope baseline: It is used for measuring the performance of the project.
----------------------
Scope baseline consists of project scope statement, WBS and WBS
---------------------- dictionary.
●● Scope verification: The scope verification process involves formal
---------------------- acceptance of the project scope by the stakeholders.
----------------------
----------------------
1. What is scope? Explain different types of scope.
----------------------
2.
What is scope definition? What are the various constraints faced while
---------------------- defining the scope?
---------------------- 3. What is WBS and how is it created?
----------------------

4. Explain WBS with an example. Notes
5. Discuss the importance of scope management plan.
----------------------
6. Explain the contents of scope management plan.
----------------------
7. Differentiate between product scope and project scope.
8. What are the techniques used for controlling the scope? ----------------------
9. Write short notes on: ----------------------

a. Scope baseline ----------------------
b. Milestone
----------------------
c. WBS Technique
----------------------
d. Scope Verification
----------------------
----------------------
----------------------
State True or False
----------------------
1. False
1.
Product scope broadly consists of functional and non-functional ----------------------
requirements of the software.
----------------------
----------------------
1. Verification process involves which of the following processes? ----------------------

i. Review meetings ----------------------
iv. Checklists
----------------------
v. Standards and organisational conventions
----------------------
Fill in the blanks.
1.
Scope management plan provides guidelines on how the WBS is developed ----------------------
and maintained. ----------------------
----------------------
----------------------
1. True
----------------------
----------------------
----------------------

Notes Match the following.
i. –c
----------------------
ii. –a
----------------------
iii. –d
---------------------- iv. –b
----------------------

Fill in the blanks.
----------------------
1. Controlling scope means preventing unnecessary changes.
----------------------
---------------------- 1. Which tool measures the difference between what was defined in the
---------------------- scope baseline and what was actually created?
ii. Variance Analysis
----------------------
----------------------
---------------------- 1. Which of the following are the tools used to verify scope?
---------------------- i. Reviews
ii. Inspections
----------------------
v. Walkthroughs
----------------------

---------------------- 1. Hughes, Bob & Mike Cotterell. Software Project Management. Tata
McGraw Hill Publishing Company Limited.
----------------------
2.
Pressman, Roger. Software Engineering – A Practitioner’s Approach.
---------------------- MCGraw Hill Publication.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Estimating and Scheduling
UNIT
4
Structure:
4.1 Introduction
4.2 Software Measurement
4.3 Software Estimation
4.4 Software Project Scheduling
Summary
Key Words
Suggested Reading
Estimating and Scheduling 73

Notes
Objectives
----------------------
----------------------
• Understand concept of software measurement
----------------------
• Compare and apply the appropriate estimation technique
----------------------
• Estimate effort using COCOMO model
---------------------- • Explain the fundamentals of scheduling
---------------------- • Develop schedule using critical path method
----------------------
4.1 INTRODUCTION
----------------------
In the last unit, we understood what scope is and how it is defined and managed.
---------------------- We also learned how to create WBS, i.e. how to decompose the given scope into
manageable activities. Now these manageable activities are used as basis for
----------------------
schedule development. Once schedule is developed, activities can be assigned to
---------------------- resources and mapped with the available time frame. The process of sequencing
the activities in a given time frame is called scheduling. Scheduling process
---------------------- is one of the important components of time management process. Schedule
ensures the effective management of the time constraint.
----------------------
Time is one of the most important and crucial resources in project management.
---------------------- We must therefore understand the impact of time management on the other two
constraints of the project. The following diagram represents the triple constraint
----------------------
of the project.
---------------------- We might find that we can meet one of these at the expense of the others.
---------------------- The edges of the triangle represent the constraints: time, cost and scope. The
figure illustrates that if we change one edge of the triangle, then we need to
---------------------- change the other two sides of the triangle to keep the triangle in shape. Simply,
---------------------- we can say if there is change in scope, then it will change the time and cost or if
we change time, then it will change the cost and scope. For example, if you add
---------------------- any extra feature of module to the scope of the project, it will take more time
and accordingly more cost.
----------------------
----------------------
Time Cost
---------------------- We might find that we
can meet one of these
---------------------- at the expense of the
others.
----------------------
Scope
----------------------
---------------------- Fig 4.1 Triple Constraint of the Project

Projects are dynamic systems that must be kept in equilibrium. Project time Notes
management deals with efficient utilisation of time and involves balancing of
the triple constraint. Most of the software projects’ failure, cost overruns and ----------------------
delays are attributed to lack of effective time management.
----------------------
To ensure the completion of the project in given time, we need to focus on two
aspects of time management - developing accurate schedule and adherence of ----------------------
team to project schedule.
----------------------
Developing accurate schedule and increasing productivity are the primary
concerns of time management. The basis for scheduling and productivity is ----------------------
sizing and estimation of the software. Unlike other industries, software industry
----------------------
is not matured enough in measurement and estimation of software. Thus, it
is imperative for us to understand the basic concepts of software sizing and ----------------------
estimation.
----------------------
Sizing is the prediction of coding needed to fulfill requirements. Estimation
is the prediction of resources needed to complete a project of predicted size, ----------------------
taking into account factors of calendar time, staff and budget constraints.
----------------------
Estimates are carried out at various stages such as strategic planning, feasibility
study, system specification and project planning of a software project. At each ----------------------
stage, the reasons for the estimate and the methods used will vary.
----------------------
In this unit, you will learn the basics such as software measurement, estimation
and schedule development. As scheduling is based on mathematics, we will ----------------------
come across various formulas. Scheduling can be as simple as listing activities
with start and end date and resource/s assigned; it may get complicated by ----------------------
considering the precedence of the activities and their interdependence etc. ----------------------
Now-a-days, various scheduling software are available and one can use that if
one is not comfortable in using the mathematical formulas. Even if you are not ----------------------
an expert in handling mathematical calculations, you can use various tools such
as MS project, which does all complex calculations for you. However, in this ----------------------
unit, we will study only manual schedule development process. ----------------------
4.2 SOFTWARE MEASUREMENT ----------------------
Imagine that you go to a big city mall to buy a perfume. There are several ----------------------
brands available and you have to choose the best one to fit in your budget. So ----------------------
you start comparing the net quantity and quality verses the price. These two are
the measurable properties of perfumes. Can you go to a software consulting ----------------------
firm and ask for software, which can be specified quantitatively as in the above
example? Certainly not. ----------------------
Software can be measured in different ways unlike other commodities. Software ----------------------
can be measured in terms of units such as lines of code, number of function
points etc. In real life, software projects demand a quantitative specification, ----------------------
which can be measured in terms of time and efforts. Software measurement ----------------------
helps in size and effort estimation, productivity analysis and improvement,
quality control and overall project management. ----------------------

Notes Software engineering is a stable, quantitative engineering disciple. Its stability
arises from the wide range of metrics developed by software engineers to
---------------------- measure various aspects of the software. The advantage of metrics is that one
can measure in quantitative terms the different aspects of software that need
---------------------- evaluation on an ongoing basis for estimation. It then helps of develop standards
---------------------- for software development.
Importance of software measurement
----------------------
In order to understand the importance of software size, let us relate to our day-
---------------------- to-day experience. Assume that you are the host of a program and have invited
twenty guests for lunch. Accordingly, you placed an order of twenty dishes
----------------------
to the hotel manager. As a sponsor, you are interested in the quality of food
---------------------- and fast service. However, the hotel manager is concerned with fast delivery
(productivity), quality and size of the order. You may understand from the
---------------------- scenario that the size of the order is critical for the hotel manager, whereas you,
as a sponsor, are looking at the time and the cost only.
----------------------
Simulate the same example to software development and you will be able to
---------------------- appreciate the importance that software size estimation holds for you, as a
project manager. Software size is very important in many project management
----------------------
areas such as planning, estimation, budgeting, quality, risk etc. Your customer
---------------------- may not be much interested in software size but you, as a project manager, must
know the size of the project.
----------------------
Software Size
---------------------- Predicting the size of a software system becomes progressively easier as the
---------------------- project advances. Near the end of a software development project, there are
fewer tasks remaining and stable specifications, allowing for far more accurate
---------------------- estimation. Of course, we cannot wait until near the end to provide estimate –
we are required to estimate cost, calendar time and efforts way too early. Go/
---------------------- no go decisions are made, contracts are won and lost and jobs appear and fade
---------------------- away based on estimates.
Software size determines how much coding will be required to fulfill the
---------------------- requirement. Size is a physical measure and we can determine the size of a
---------------------- thing based on observable dimensions. Similarly, to measure the software size,
the observable dimension could be number of lines of code, total functions,
---------------------- modules, number of database files used etc., which can be measured physically.
---------------------- Since software is a logical commodity unlike other physical commodity, we
cannot totally rely only on the physical dimensions of software. Only physical
---------------------- dimensions such as lines of code will not be able to tell how complex the project
is. For that matter, we need to consider the other intangible aspects such as
----------------------
the complexity, execution speed, memory requirement and functionality of
---------------------- the software. Functionality of software can be measured with number of input
variable required, number of control structures required (if-then etc), number of
---------------------- database files required, number of outputs generated etc.
----------------------

There are various tools and techniques with which we can measure the size of Notes
the software. While determining size, we must consider other factors such as
the language, experience of the programmer etc. ----------------------
The lines of code depend on language used for development. For example, ----------------------
a function to add two numbers requires few lines of code in vb.net while
same function may require hundred lines of code in COBOL. Another point ----------------------
that is to be considered in software sizing is the style of programmer and
----------------------
his intellectual capacity. The same function written by two programmers in
two different programs are never the same unless they are copied. Similarly, ----------------------
intellectual capacity of two programmers may not be the same. For example,
one programmer can write a complex program in few lines of code while other ----------------------
one may take many lines.
----------------------
There are two major steps in determining how long a project will take and how
much it will cost. The first is to estimate its size; the second is to use size along ----------------------
with other environmental factors to estimate effort and its associated cost.
----------------------
----------------------
1. COBOL requires less LOC as compared to VB. ----------------------
2. Predicting the size of a software system becomes progressively easier ----------------------

as the project advances.
----------------------
3. While determining size, we cannot consider other factors such as the
language, experience of the programmer etc. ----------------------
----------------------
Activity 1 ----------------------
----------------------
Take an example from a software developing organisation and write
down the steps of converting the software system from one programming ----------------------
language to another.
----------------------
4.3 SOFTWARE ESTIMATION ----------------------
Software estimation is the process in which the size of the software is ----------------------
determined in terms of measurable quantity such as LOC, function points etc. ----------------------
The estimations are generally given by programmers. The project manager
analyses the estimates alongside the budget and scope. If he finds any variation, ----------------------
he negotiates with programmers and reduces the estimate. There are various
ways of estimation. Each organisation follows its own standard for estimation. ----------------------
Estimation is more of skill and judgement. Most of the estimations are based on ----------------------
the past experiences.
----------------------

Notes The bases of software estimation are as follows:
a. The need for historical data
----------------------
b. Measure of work
----------------------
c. Complexity
---------------------- Let us quickly review some of the most common estimation techniques available.
---------------------- 1. LOC based estimation
---------------------- The LOC based estimation is a commonly used and widely accepted technique
of size estimation. LOC is a measure of the length of code the software engineer
---------------------- will write to deliver software requirement. This type of estimate determines how
many lines of code are required to fulfill the requirement. It is very clear that we
---------------------- cannot accurately predict LOC estimate of the software, which is not developed
---------------------- yet. However, as estimation is given prior to execution (writing source code), we
need to take the help of experts and the historical data of similar projects. This
---------------------- is called as estimation by analogy, in which estimation data for each component
is taken from similar projects done in the past. This is a rough-cut estimate and
---------------------- no one can exactly tell you how many lines of code will be required since in
---------------------- software development, no two projects are exactly alike.
The LOC estimate can be derived for each work package of WBS. For
----------------------
determining size, we have to consider the WBS. WBS gives us the breakup of
---------------------- main software application into various modules and components. For example,
consider the WBS of login module. Login module is an interface, which takes
---------------------- user ID and password from the user and validates. Upon successful validation,
the user is authenticated. For login, you need a formatted screen to capture data,
----------------------
code to transfer and validate data from the screen and send it to the database
---------------------- table to store the user data. With this breakup of activity of login module,
you can guess and roughly estimate lines of code required for developing the
---------------------- module. By summation of all the individual modules’ lines of code, you can
derive the total LOC estimate for the main project. This type of estimation is
----------------------
called bottom-up estimate.
---------------------- For estimation, you can refer to the historical record of similar projects. From
the historical data, you can find out how many lines of code are required for
----------------------
developing similar functionality and add to them extra lines for additional
---------------------- functionality.
---------------------- The popular units used to express lines of code are:

1. SLOC - Source lines of code: The actual lines of code written by the
---------------------- programmer before compiling is counted and called as SLOC.
---------------------- 2. KLOC - Kilo lines of code: Used on a larger scale when code exceeds
thousand lines
----------------------
1 KLOC = 1000 LOC
----------------------
----------------------

Drawback of LOC based estimation Notes
The LOC based estimates are simple to derive and widely accepted but have a
----------------------
few drawbacks:
1. LOC based estimates cannot measure the complexity of the functions. ----------------------
2. Productivity measured in terms of LOC may encourage the programmer ----------------------
to produce more lines of code; however, software should ideally be having
thin code with minimum defects. ----------------------
To overcome these drawbacks, other estimation techniques emerged such as ----------------------
function point, Model Blitz, Feature Point and Delphi Technique. Though there
are various techniques available and each one with pros and cons, you need to ----------------------
select the appropriate techniques that suit your organisation’s policy and project ----------------------
needs.
2. Three-point estimate ----------------------
For better accuracy, three-point estimation formula is used. In three-point ----------------------

estimation technique, the pessimistic (P), optimistic (O) and most likely (M)
estimates are taken from the programmers and values are substituted in the ----------------------
following formula. ----------------------
Estimate = P + 4M + O/6
----------------------
Consider that the values of pessimistic, optimistic and most likely estimates are
200, 400, 300 respectively. Therefore, ----------------------
200 + (300 x 4) + 400/6 = 300 LOC ----------------------
General Guidelines ----------------------
Although there is no standard method to count the number of lines, following
guidelines can help in better estimation: ----------------------
1. Only executable statements (lines) are counted and comments are ignored. ----------------------
2. All executable statements separated by semicolon on single line are ----------------------
counted as separate line of code.
----------------------
3. All data definitions are counted once.
4. Do not count the temporary code written for testing purpose. ----------------------
5. Do not count code used for reused functions. ----------------------
6. Assembly language equivalent can be used to compare estimation of ----------------------
different languages.
----------------------
3. Function point estimate
Function point estimate measures the size of the software based on the ----------------------
functionality and complexity of the software, rather than just lines of code.
----------------------
The function point estimate was first published by A.J. Albrecht at IBM for
transaction-oriented system in 1970. Function point technique measures ----------------------
systems from a functional perspective. Function points are independent of
any underlying technology. Regardless of language, development method or ----------------------

Notes hardware platform used, the number of function points for a system will remain
constant. The only variable is the amount of effort needed to deliver a given
---------------------- set of function points. FPA is useful in estimating projects, managing change
of scope, measuring productivity and communicating functional requirements.
----------------------
FPA is a popular method for estimating and measuring the size of the software.
---------------------- The basis for FPA is functionality of the software from the user’s point of view.
It considers user’s requirements for software and its logical design. The size of
----------------------
the functionality is calculated in terms of Function Point Count (FPC).
---------------------- To understand the Function point, let us understand the example given below:
Suppose you want to purchase a software engineering book from a bookstore,
----------------------
what do you look for? Are you interested just in the size of the book or the
---------------------- contents? Some might be interested in size but not many. We look for the
contents, the case studies given, the style, language etc.
----------------------
This analogy depicts the size vs. functional aspect of the software. Here, size
---------------------- of the book resembles LOC while the contents resemble the functional aspects.
---------------------- The function point estimate counts the number of functional points such as
inputs, outputs, file structure, interfaces to capture data and interfaces to display
---------------------- results. Each functional part is further analysed with the complexity such as
simple, average or complex.
----------------------
How to estimate using function points
---------------------- I. Count the occurrences of each category:
---------------------- o Number of inputs: Inputs are the number of forms that we use to
pass the external data into system, for example, data entry forms
----------------------
for customer information, data entry form for product information.
---------------------- How many such input forms are required is calculated.
o Number of user outputs: Output means processed data that can be in
----------------------
the form of reports, screens, error messages etc. For example, salary
---------------------- report, ledger etc.
---------------------- o Number of inquiries: Inquiries are usually smaller reports and

the output of inquiry is generally processed online and shown
---------------------- immediately to the user on the screen. For example, number of
orders processed in the specified period.
----------------------
o Number of files: The data generated during processing need to
---------------------- be stored for future use. This data is generally stored in a logical
structure called as file/tables.
----------------------
o Number of external interfaces: Sometimes data needs to be fetched
---------------------- from other media, for example, disk, tape, CDs etc. External
interface provides facility to capture data from external resources.
----------------------
II. Calculate the complexity of each category: The complexity of each
---------------------- category can be simple, average, complex. For example, the input form
for customer information is relatively simple, while the input form for
----------------------
Bill of material entry is comparatively complex.

III. Decide the weighing factor for each category in each complexity. Notes
IV. For each category, multiply the count of function points by the
----------------------
corresponding weighing factor of complexity. Then for each category,
add the products of simple, average and complex as shown in column and ----------------------
total function points in the following table.
----------------------
V. Finally, add all function points in the last column; that will give you total
function points. ----------------------
Table 4.1: Calculation of Total Function Points
----------------------
Function Simple Simple Average Average Complex Complex Total
Category Function ----------------------
Points
Count WF Count WF Count WF
----------------------
No. of I/P 1 3 1 4 1 6 13 ----------------------
No. of O/P 1 4 1 5 1 7 16
No. of Inq. 1 3 1 4 1 6 13 ----------------------
I/P
No. of Inq. 1 4 1 5 1 7 16 ----------------------
O/P
No. of 1 7 1 10 1 15 32 ----------------------
Files
No. of 1 5 1 7 1 10 22 ----------------------
Interfaces
----------------------
Total 112
The above table shows the sample calculation of function point. In the above ----------------------
table, WF stands for Weighting Factor, I/P = Inputs, O/P = Outputs. Here, for
----------------------
simplicity of calculation, each functional category is counted as one. Thus, total
function points in the above example are 112. ----------------------
The function point estimation was initially developed for business information
----------------------
system applications. This model is further extended to estimate a more complex
system. ----------------------
4. Feature point estimation ----------------------
Feature point estimation is the extension of function point estimation. Feature
point is a superset of the function point measure that can be used for /in more ----------------------
advanced applications such as systems and engineering software applications. ----------------------
The feature point measure accommodates the application in which algorithmic
complexity is high, such as Real time systems, Process control and embedded ----------------------
software. In feature point estimation, the algorithmic characteristics of software
are counted and the rest of the process is the same as that of function point ----------------------
estimate. ----------------------
5. Object point
----------------------
This estimation model is useful in estimating the size of the software, which
is developed using object oriented technology. In this estimate, object point is ----------------------
assigned to each unique class or object. The rest of the process is the same as
----------------------
function point, as described above.

Notes 6. Delphi technique
Delphi technique is a group forecasting technique, generally used for future
----------------------
events such as technological developments projects. This is a disciplined method
---------------------- of using the experience of several people to reach an estimate. This is very
popular and simple to implement. This technique does not require historical
---------------------- data and can be used for high level and detailed estimation. The results obtained
from these techniques are more accurate as compared to LOC.
----------------------
Effort estimation
----------------------
Once the size of software is known, we can estimate the effort required to
---------------------- accomplish the task. Effort estimation is an important activity because it tells
us how much resources are required and the time they will take to complete the
---------------------- project. Effort estimates are mainly used for planning, scheduling and budgeting
purpose. The cost of software mainly depends on the effort estimate. We can
----------------------
directly relate the cost of human resource to effort and prepare the cost estimate
---------------------- for budget purpose.
---------------------- What is Effort?

The main resource in software development is human resource. The amount
---------------------- of time a person invests to perform a task is called as effort. Effort can be
---------------------- measured in various units such as person-years, person-months, person-weeks,
person-days and person-hours. One person-year means one person working for
---------------------- one year to complete a task. Two person-year means either two persons can
complete the task in one year or one person works for two years to complete
---------------------- the task.
---------------------- The unit of effort is man-month. Secondly, productivity varies from organisation
to organisation, project to project and size to size. So a good estimate is the one
---------------------- that is computed using an organisation’s productivity measure. To arrive at such
---------------------- a measure, the organisation should build the measure using the size of projects
successfully completed versus efforts taken. One should measure it with FPC of
---------------------- each project and efforts taken to complete it.
---------------------- COCOMO Model
The COCOMO stands for Constructive Cost Model. This model is based on
----------------------
regression analysis. Regression analysis is a tool that statistically interprets the
---------------------- historical data and describes the mean and other statistical relationship between
other variables. This model was developed by Dr. Barry W. Boehm in 1970. He
---------------------- analysed the data of 63 projects of various types and sizes. The projects were
observed for actual size (LOC), actual effort and actual duration of the project.
----------------------
Boehm used scatter diagram to plot the equation.
---------------------- Scatter diagram such as shown here is used for deriving the equation. From this
diagram, a linear equation can be derived, which takes the form a + b x where a
----------------------
and b are constants. This equation is the basis for predicting the effort.
----------------------
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
Fig 4.2: Scatter Diagram ----------------------
Based on the complexity of projects, COCOMO model is further classified into
----------------------
organic mode, semi-detached mode and embedded mode.
●● Organic Mode: This category considers projects of small size and simple ----------------------
to develop, such as payroll, store management system etc. The team
----------------------
working on the project is small in size. The projects under this category
are general-purpose projects and do not have tight constraints such as ----------------------
time and budget.
----------------------
●● Semi-detached mode: This category considers projects that are higher
in size and complexity than organic mode projects. Team size is medium ----------------------
and constraints are moderate. The project that requires high innovation
pertains to this category, for example, projects such as data base systems, ----------------------
compilers.
----------------------
●● Embedded mode: This category considers the projects, which are largest
in size and complexity as compared to the previous two modes. These ----------------------
projects need high level of innovation. The project must be developed
within a set of tight hardware, software and operational constraints. ----------------------
Examples of the projects are air traffic control system, automated banking ----------------------
system, nuclear control system etc. All real time projects fall in this
category. ----------------------
In addition to the above mode, Boehm defined three hierarchical levels of ----------------------
COCOMO model, as described below:
----------------------
●● Basic Level: Basic level computes effort of software development as a
function of program size expressed in estimated lines of code. It is useful ----------------------
for rough-cut estimate of small to medium size project. The basic level is
used when fast estimation of effort is required. ----------------------
●● Intermediate Level: Intermediate level computes software development ----------------------
effort as a function of program size and a set of fifteen cost drivers that
include subjective assessments of personnel, project attributes, product ----------------------
and hardware.
----------------------
●● Advanced Level: This is an extended version of intermediate level. It
considers the impact of cost drivers on each software engineering steps ----------------------
(analysis, design, coding).
----------------------

Notes Example of Basic Level Estimation
Let us understand how to calculate effort, duration, persons and productivity of
----------------------
project when the size of the project is given.
---------------------- Effort (E) = a x (Size) b
---------------------- Duration (D) = 2.5 x (Effort) c
---------------------- Person required (N) = E/D

Productivity (P) = Size/Effort
----------------------
where a, b and c are the constants derived from regression analysis and depend
---------------------- on the project. Size is measured in thousand lines of code (KLOC) and E is effort
applied in person-months. As most of the organisations do not have enough data
---------------------- to perform regression analysis, they can use the following table that describes
---------------------- the values of a, b and c for three modes of basic COCOMO model.
---------------------- Mode Value of a Value of b Value of c

Organic Mode 2.4 1.05 0.38
---------------------- Semi-detached 3.0 1.12 0.35
---------------------- Embedded 3.6 1.20 0.32
In order to calculate effort, duration, number of person and productivity of a
---------------------- project, simply put the value of size in the above equations. Let us say the
---------------------- project is simple and project size is 100 KLOC.
As the project is simple, you use values of a, b given for organic mode in the
----------------------
above table and substitute these values in the formula E = a x (size) b
---------------------- Thus Effort (E) = 2.4 x (100) 1.05
---------------------- E = 2.4 x 125.8925
---------------------- E = 302.1421 Person-months

Duration of project (D) calculated by using the formula D = 2.5 X (E) c
----------------------
D = 2.5 X (302.1421) 0.38
----------------------
D = 2.5 x 8.7595
---------------------- D = 21.89 Months
---------------------- Number of person (N) required can be calculated as follows:
---------------------- N = E/D
N = 302/21
----------------------
N = 14 person required
----------------------
Productivity P = Size/Effort
---------------------- First convert KLOC to LOC; thus 100 KLOC = 100000 LOC
---------------------- P = 100000/302
---------------------- P = 331 LOC/Person-month

You can calculate the effort, duration, person required for various projects using Notes
the formulas and the corresponding values of a, b, c given above.
----------------------

1. The basis for software estimation are ----------------------
i. LOC ----------------------
ii. The need for historical data
----------------------
iii. Measure of work
----------------------
iv. Complexity
2. Most common estimation technique available ----------------------
i. Object Point ----------------------
ii. Delphi techniques ----------------------
iii. Feature point estimation
----------------------
iv. Project scope
----------------------
----------------------
Activity 2
----------------------
1. Identify any five software projects / products where COCOMO was
----------------------
used and find out why.
2. Identify any five software project / products where FPA has been ----------------------
used and state its advantages.
----------------------
----------------------
4.4 SOFTWARE PROJECT SCHEDULING
----------------------
The next step after estimation is schedule development. Software Project
Management is an activity that distributes estimated effort across the planned ----------------------
project duration by allocating the effort to specific software engineering tasks.
----------------------
Schedule tells us how we are going to execute the plan in terms of days and
activity. Schedule is an elaboration of your plan with respect to time frame and ----------------------
resources used.
----------------------
The schedule is derived from WBS and includes activity duration, significant
milestone, work products to be produced and person responsible for them. ----------------------
Good scheduling requires technique and is almost an art similar to the creation
of WBS. Plan tells what is to be done while schedule defines what activities are ----------------------
performed when and by whom. Schedule is usually shown in a tabular or in a
----------------------
graphical chart called as Gantt chart.
----------------------

Notes For effective utilisation of time, we must know how much time each activity
requires and the dependency of each activity on the other activity. For example,
---------------------- coding activity can be started after completion of design activity, i.e. coding
depends on design.
----------------------
In order to develop a schedule, we must know various activities that need to
---------------------- be performed to complete the project, the sequence of each activity, duration
of each activity and resources needed as per the skill set required to complete
----------------------
the activity. Here resources are usually human resources such as architect,
---------------------- programmers, testers, quality persons etc. Scheduling process takes into
consideration the company calendar, which describes the actual days and hours
---------------------- available to carry out the tasks. Scheduling is not a one-time process; for effective
time management, the schedule needs to be updated to control and track the
----------------------
changes that occur during execution. Developing schedule is a technique. It
---------------------- needs experience as well as knowledge of mathematics. Sometimes complex
algorithms can be used for time optimisation.
----------------------
Now let us understand various processes and terms associated with scheduling.
---------------------- Define Activity: This process decomposes the work packages defined in WBS
to manageable activity. An activity is the smallest task that can be estimated,
----------------------
managed and performed by one person. For example, the work package could
---------------------- be to develop payroll module that can be further decomposed to activity level
such as table creation, screen development etc.
----------------------
For each activity, attributes are assigned. Activity attribute gives additional
---------------------- information about the activity. For example, attributes could be person
performing the activity, instruction that need to be followed for the activity etc.
----------------------
Network Diagram: All defined activities are further shown in the Network
---------------------- diagram. Network diagram is a graphical representation of activities. This
diagram represents the sequence of the activities as per their order of execution.
---------------------- Sequencing helps us to understand the logical relationship between the activities.
---------------------- Network diagram also shows the activity name, duration and precedence. The
following diagram represents network diagram consisting of five different
---------------------- activities along with their sequence.
---------------------- A C
Start E End
----------------------
B D
----------------------
Fig. 4.3: Network Diagram
----------------------
Network diagram can be drawn with different techniques. Most popular
---------------------- diagramming techniques are Precedence Diagramming Method (PDM), Arrow
---------------------- Diagramming Method (ADM) and GERT method.
Precedence Diagramming Method (PDM): This method graphically represents
---------------------- the scheduling activities. Activities are represented by node (rectangles) and
---------------------- arrow represents the dependence that exists between the activities. Usually

activities are presented by alphabets and are shown inside the rectangle and the Notes
duration is shown above the rectangle, as shown in the figure.
5 3 ----------------------
A C
----------------------
Start E End
----------------------
2 B D
1
----------------------
Fig. 4.4: PDM
----------------------
In the above networking diagram, Activity A takes 5 days, B takes 2 days and
so on. ----------------------
Arrow Diagramming Method (ADM): This is another method to represent the ----------------------
scheduling activities. Unlike PDM, here activities are represented by arrows,
and nodes represent connecting points. Instead of rectangles, here nodes are ----------------------
represented by circles in order to differentiate with PDM. The method is also
----------------------
called as activity on arrow. The illustration below represents a network diagram
for activity on arrow. ----------------------
4
A C ----------------------
5 2
----------------------
Start End
----------------------
7
E D
2 ----------------------
3
----------------------
Fig. 4.5: ADM
----------------------
With ADM, we can show zero duration activity. Zero duration activities are
called dummy activities and are usually represented by dashed lines. In the ----------------------
above figure, AD is a dummy activity. For example, to take sign of customer on
requirement document (SRS) is a dummy activity. This activity does not take ----------------------
much time or does not require any resource. It shows the dependency of other ----------------------
activities on dummy activity.
GERT Method: GERT stands for Graphical Evaluative Review Technique. ----------------------
Sometimes schedules need to be technically presented. Technical presentation ----------------------
shows loops and branches between activities. You can show repeat process and
if-then conditions with this diagramming technique, which is not possible with ----------------------
ADM and PDM.
----------------------
The following figure illustrates that activity A can be repeated after completing
Activity B, ----------------------
Activity A Activity B ----------------------
----------------------
Fig. 4.6: Repeat Process ----------------------

Notes Types of logical relationships
The activities defined in the schedule are not totally independent. They are
----------------------
integrated with each other. For example, we cannot perform designing and
---------------------- coding in isolation; we cannot start coding before the design completes. Such
logical relationship helps in sequencing the activity dependence. There are four
---------------------- basic types of logical relationships between activities, as described below:
---------------------- Finish to Start (FS)
This relationship represents that predecessor activity must finish before the
----------------------
successor can start. This is the most common relationship found across all
---------------------- projects. For example, gather requirements activity needs to be performed
before design activity. This can be shown as below.
----------------------
Design Gather Requirements
----------------------
Fig. 4.7: FS Example of Predecessor Activity
----------------------
Start to Start (SS)
---------------------- Let us consider that you are developing an ERP software and your team has
---------------------- only two designers and 6 programmers. Now two designers cannot give their
design at a time so that six programmers can start coding. Till the entire design
---------------------- is complete, do you allow other programmers to wait? Not affordable. What
you generally do is first complete the design of an independent module and
---------------------- assign to the first pair of programmer who can start coding and give the next
---------------------- design to remaining pairs. In the above scenario, predecessor activity can be
started before the successor activity.
----------------------
Design
----------------------
----------------------
Coding
----------------------
---------------------- Fig. 4.8: Example of SS

Finish to Finish (FF)
----------------------
This type of relationship represents that predecessor activity finishes before
---------------------- the completion of successor activity. For example, user acceptance testing
activity should be finished before the completion of documentation. Once the
----------------------
documentation is finished, you cannot again test.
----------------------
Testing
----------------------
----------------------
Documentation
----------------------
Fig. 4.9: Predecessor Activity finishes before the Completion of Successor
---------------------- Activity

Start to Finish (SF) Notes
This rarely found relationship represents that an activity must start before the
----------------------
successor can finish.
Types of dependency: ----------------------
We have seen various cases of logical dependence, which tell us which activity ----------------------
depends on the other. However, in real life, to adjust the schedule, we need
to consider which activities are really dependent and which activities can be ----------------------
executed parallel. This can be well understood by determining the type of
----------------------
dependencies. There are three types of dependencies; let us understand them.
i. Mandatory Dependency: This is sort of compulsory dependency. For ----------------------
example, you must dig before you plant a tree. We cannot skip the first ----------------------
activity and proceed with the second. This is also called as hard logic
dependency. ----------------------
ii. Discretionary Dependency: In this type of dependency, the team can ----------------------
decide the sequence of activities. At the discretion of the team, the
sequence of activity can be changed. This type of dependency is used ----------------------
in fast tracking to shorten the duration of the project. For example,
in construction projects, we can start furniture and electrical work ----------------------
simultaneously. The sequence of activities is based on priorities. The ----------------------
activities in this type of relationships are independent of each other. This
type of dependency is also called preferred logic or soft logic. ----------------------
iii. External dependency: These types of dependencies are influenced by ----------------------
factors outside the project, for example, if testing activity is outsourced,
then debugging activity becomes dependent on activities of outsourcing ----------------------
party. If outsourcing is delayed, debugging activity is delayed.
----------------------
Lead and Lags
----------------------
Quite often, we have to start certain activities earlier in the project, provided
there is no mandatory dependence. For example, we can start the coding activity ----------------------
few days prior to the completion of the design activity. Lead represents the
time between the start of successor activity and start of precedence activity. For ----------------------
example, if design activity starts on 1st and finishes on 10th and if we start coding
----------------------
on 7th in the same month, then lead is 7 days.
Lag is the waiting time gap between two activities that represents the amount ----------------------
of time for which the successor activity can be delayed. For example, after
----------------------
completion of SRS preparation, we need to wait for SRS signoff and then only
we can start design activity. Here the time gap between SRS preparation and ----------------------
design activity is called as lag.
----------------------
Developing Schedule
We understood what is network diagram and various terms associated with ----------------------
network diagram. Network diagramming is the first step in scheduling; in ----------------------
scheduling, network diagrams are analysed further. Network diagram only
shows the sequence and duration of the activity. However, to assign and keep ----------------------

Notes track of the schedule, we need to identify the start and finish date of each activity
and total project duration.
----------------------
The next step after creation of network diagram is to analyse and determine the
---------------------- planned start and finish date of activities. During analysis, we study whether
activities can be finished in a given time constraint. Schedule analysis is based
---------------------- on mathematics. The most widely used analysis tools are critical path method,
critical chain method, what-if analysis and resource levelling.
----------------------
Critical Path Method
----------------------
The critical path method is a mathematical tool used for schedule analysis.
---------------------- Schedule analysis determines the duration of the project by analysing the
precedence of the activities. This method determines the critical path. The
---------------------- critical path is the longest duration path that ultimately determines the duration
of the project. This method identifies the sequence of activities that has the
----------------------
least amount of schedule flexibility. Critical path method is an activity-oriented
---------------------- method, which means it focuses only on the activities and not on the availability
of the resource. This method uses Forward Pass and Backward Pass techniques
---------------------- to calculate the float, earliest start and finish time, latest start and finish time.
---------------------- Let us understand the basic concepts used in the critical path method.
---------------------- Path
Path represents the sequence or route each activity follows from starting activity
---------------------- to ending activity.
---------------------- The following network diagram shows two paths as follows:
---------------------- Path 1 Start-A-B-D-E-Finish
---------------------- Path 2 Start-A-C-E-Finish

Forward Pass
---------------------- 3 2
B D
----------------------
2 7
----------------------
Start A E Finish
----------------------
8
---------------------- C
---------------------- Backward Pass

---------------------- Fig. 4.10: Critical Path Method
---------------------- Duration of Path
Duration of path is the amount of time each activity on the path takes to
----------------------
complete. Path is calculated by adding duration of each activity on that path.
---------------------- Generally, durations are shown above rectangles. Thus duration of path 1 is
14 (2+3+2+7=14) and duration of second path is 17 (2+8+7). Comparing the
---------------------- duration of the two paths, we can say that path 2 is longest path.

Critical path Notes
The longest duration path is called the critical path. In the above figure, path
----------------------
2 (Start-A-C-E-Finish) is the critical path. The activities on critical path are
not flexible; hence, the path with zero flexibility is also called the critical path. ----------------------
This path is important because if everything goes according to schedule, its
length gives the shortest possible completion time of the overall project. The ----------------------
critical path determines completion of the project in a given time. The total time
----------------------
the project will take depends on the critical path. If critical path activities are
delayed, the project is delayed; however, the project duration will not be affected ----------------------
if any activity is delayed on the non-critical path. Hence, while scheduling, the
critical path becomes important and the activities on the critical path need to be ----------------------
managed properly. If you are able to manage the activities on the critical path
----------------------
and complete within the estimated time, your project will finish in the given
time. ----------------------
Float (Slack)
----------------------
Float is the amount of time an activity can be delayed without delaying the project
end date. Float is also called as slack. Activities on the critical path always have ----------------------
zero float because duration of the critical path decides the total duration of the
----------------------
project and delaying a single activity on the critical path will delay the project.
In any project, certain activities are critical and certain activities are flexible. ----------------------
With float, we can determine the activities that can be delayed without delaying
the schedule. Identification of non-critical activity will help you in assigning ----------------------
resources. For example, your team may not always have experienced resources.
----------------------
Sometimes you need to use less experienced available resource. In this case, if
you know the critical and non-critical activities, you can assign the less critical ----------------------
activity to the less experienced resource so that your project schedule will not
be delayed. ----------------------
Float is calculated as below. ----------------------
Float = Late Start – Early Start or ----------------------
Float = Late Finish – Early Finish
----------------------
Early Start (ES)
----------------------
Early start determines how early an activity can start. Forward pass technique
is used to calculate the early start of each activity on schedule. In forward pass, ----------------------
the duration of the activity is counted from the start activity, for example, in the
above figure, the early start of activity D is calculated as (Start-A-B = 0+2+3=5), ----------------------
meaning activity D can start in the 5th week.
----------------------
Early Finish (EF)
----------------------
Early Finish determines how early an activity can be finished. The same forward
pass technique is used for calculation of early finish. Early finish is calculated ----------------------
as early start + duration of that activity, for example, duration of activity D
shown in the above figure is 5+2=7, since activity D can start on the 5th and it ----------------------
takes 2 weeks to complete the activity. ----------------------

Notes For better understanding, the result of the calculation can be written above each
activity.
---------------------- Duration
---------------------- ES EF
----------------------
---------------------- Activity
Float
----------------------
----------------------
LS LF
----------------------
Fig. 4.11: Float
----------------------
Late Finish (LF)
----------------------
Late Finish determines how late an activity can be finished. The method to
---------------------- calculate late start is opposite to forward pass and is called as backward pass.
The backward pass uses the duration of the critical path as the late finish of
---------------------- the last activity or activities (There can be more than one activity at the end of
---------------------- the network diagram). In Fig. 4.10, E is the last activity and as the duration of
critical path is 17, activity E can finish as late as on 17.
---------------------- Late Start (LS)
---------------------- Late start determines how late an activity can be started. This is calculated as
latest finish time minus the duration of activity. For example, in Fig. 4.10, the
---------------------- last finish of activity E is 17 and duration is 7; thus, the late start of activity is
---------------------- calculated as 17 - 7 = 10.
Float calculation
----------------------
Float of activity C can be calculated as shown below.
---------------------- First calculate the early start and late start of Activity C:
---------------------- Early start = 2
Late start = 2
----------------------
Float = Late Start - Early Start
----------------------
Substituting the values, we get
---------------------- Float = 2-2 = 0
---------------------- Float of activity D can be calculated as shown below:
First calculate the early start and late start of Activity D:
----------------------
Early start = 5
---------------------- Late start = 8
---------------------- Float = Late start - Early Start
Substituting the values, we get
----------------------
Float = 8 - 5 = 3
Notes
----------------------
i. Late start a. Activities are represented by nodes ----------------------
(Rectangles)
ii. Network diagram b. This method is also called activity on arrow ----------------------
iii. PDM c. Determines how late an activity can be
----------------------
started
iv. ADM d. Graphical representation of activities ----------------------
----------------------
Activity 3
----------------------
1. Assume that your exams are starting on October 20, 2018. Today is ----------------------
the October 1, 2018. What will be your approach towards planning-
----------------------
forward planning or backward planning? Explain with the help of a
GNATT chart. ----------------------
2. You are a software project manager. What steps will you take to
----------------------
ensure that the project activities do not slip on the network diagram?
----------------------
Summary ----------------------
●● In software project management, there are three major constraints: time, ----------------------
cost and scope. If there is change in scope, then it will change the time
and cost or if we change time, then it will change the cost and scope. ----------------------
●● Software can be measured in terms of units such as lines of code, number ----------------------
of function points.
----------------------
●● Predicting the size of a software system becomes progressively easier as
the project advances. ----------------------
●● There are various tools and techniques with which we can measure the ----------------------
size of the software. While determining size, we must consider other
factors such as the language and experience of the programmer. ----------------------
●● Software estimation is the process in which the size of the software is
----------------------
determined in terms of measurable quantity such as LOC, function points
etc. ----------------------
●● Function Point Analysis considers the functional complexity of the
----------------------
software and is independent of language.
●● COCOMO is an effort estimation technique. Based on complexity, ----------------------
COCOMO model is further classified as organic, semi-detached and
----------------------
embedded.
----------------------

Notes ●● Various network diagramming techniques such as Arrow Diagramming
and Precedence Diagramming are used. Activities are dependent on each
---------------------- other and their type such as start to start, start to finish etc.
---------------------- ●● Scheduling analysis is one of the important tools, which mathematically
determines the critical path that has a considerable impact on the schedule
---------------------- of the project. In the Critical path method, we studied how to calculate
early and late start and finish dates, float and critical path of the schedule.
----------------------
---------------------- Keywords
---------------------- ●● Coding: Software lines of code written syntactically in any programming
language
----------------------
●● Modules: Subsystem; a larger system broken down into smaller systems
---------------------- ●● Input: Data accepted by the computer from the user in terms of data entry
----------------------
----------------------
1. Explain the importance of software size.
----------------------
2. Explain various techniques used to measure the software size.
----------------------
3. Discuss the advantage of function point over LOC.
---------------------- 4.
Compute the function point value for a project with the following
information:
----------------------
o Number of user inputs: 32
----------------------
o Number of user outputs: 60
---------------------- o Number of user inquiries: 24
---------------------- o Number of files: 8
---------------------- o Number of external interfaces: 2

Assume that the complexity adjustment values are average.
----------------------
5. Using the COCOMO model, calculate the effort, duration, number of
---------------------- persons and productivity of a project. The project is simple and of size
250 KLOC.
----------------------
6. The programmer has given pessimistic (P) estimate as 8600, optimistic
---------------------- (O) estimate as 4600 and most likely (M) estimate as 6900 to complete
the given programming assignment. Calculate the average estimate using
----------------------
3-point estimate technique.
---------------------- 7. Compare various size estimation techniques you have learnt.
---------------------- 8. Consider the following data and perform the task asked
---------------------- Successor Activity Preceding Activity Activity Duration

A Start 3
----------------------

B A 4 Notes
C B 8
----------------------
D A 6
E D 7 ----------------------
F C, E 5
----------------------
End F 6
----------------------
a. Draw the network diagram.
b. Find out the critical path. ----------------------
c. Calculate the duration of each path. ----------------------
d. Calculate the early and late start and finish of each activity using ----------------------
forward and backward pass techniques.
----------------------
----------------------
----------------------
----------------------
1. False
2. True ----------------------
3. False ----------------------
----------------------
----------------------
----------------------
1. The basis for software estimation are
ii. The need for historical data ----------------------
iii. Measure of work ----------------------

iv. Complexity ----------------------
2. Most common estimation technique available ----------------------
i. Object Point
----------------------
ii. Delphi techniques
----------------------
iii. Feature point estimation
i. –c ----------------------
ii. –d
----------------------
iii. –a
----------------------
iv. –b

Notes
Suggested Reading
----------------------
1. Futrell, Robert, Donald Shafer, Linda Shafer. Quality Software Project
---------------------- management.
2. Hughes, Bob and Mike Cottrell. Software Project Management.
----------------------
3. Jalote, Pankaj. Software Project Management in Practice.
----------------------
----------------------
----------------------
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Managing Cost
UNIT
5
Structure:
5.1 Introduction
5.2 Cost Management Overview
5.2.1 Basics of Costing
5.2.2 What is Project Cost Management
5.2.3 Types of Costing
5.3 Preparing Budget of the Project
5.4 Controlling Cost of Software Projects
Summary
Key Words
Suggested Reading
Managing Cost 97
Notes
Objectives
----------------------
----------------------
• Explain the importance of project cost management
---------------------- • Manage the cost of the project
---------------------- • Prepare the project budget
• Apply cost controlling techniques to software projects
----------------------
---------------------- 5.1 INTRODUCTION

---------------------- Once the size of the software (FPC or LOC) is estimated, the next important
parameter is the cost of development. Few examples of cost to be considered
----------------------
are personnel costs, hardware costs, software costs, communication, travel and
---------------------- stay costs, training costs, administrative costs etc.
In software project time management unit, we studied how to measure the size
----------------------
of the software and now we are able to estimate the effort required to deliver
---------------------- the project. You are now familiar with the time management concepts such
as activity, duration, WBS and schedule. Understanding of these concepts is a
---------------------- prerequisite for managing cost. Cost is one of the other important constraints
that each project manager has to control. It is the prime responsibility of the
----------------------
project manager to manage the project in the given budget. Project sponsor/
---------------------- customer approves the tentative budget in initiation stage; however, the detailed
scope may not be available at the time of approval of tentative budget. During
---------------------- project scope detailing, some changes may occur in scope and will have impact
on the initial budget.
----------------------
Most of the disputes and conflicts may arise due to weak management of cost.
---------------------- To avoid the cost related conflicts in future, one must analyse whether he can
---------------------- execute the project within the given scope and cost budget. Accordingly, the
project manager informs the project sponsor/customer whether he can carry out
---------------------- the project in the given budget or may require more funds.
---------------------- You might think that cost management is a one-time activity, but in reality,
due to dynamic behaviour of software, various changes may occur in different
---------------------- stages of development. These changes will affect all the plans, schedules and
budget; hence, cost management becomes an ongoing activity and need to be
---------------------- performed throughout the project.
---------------------- In software development projects, major costs are the cost of resources, training
cost, travelling cost, hardware upgradation and software licensing cost. As the
---------------------- project size increases, cost management becomes more rigorous.
---------------------- Software professionals are experts in technology than in the financial
aspect of project management. Lack of financial knowledge may result in
----------------------
misinterpretation of the cost estimates, causing cost conflicts. Thus, it is
----------------------

imperative for us to understand the basics of cost management. In this unit, you Notes
will learn various financial aspects of project management. This unit covers the
basics of cost management and will generate cost awareness and understanding ----------------------
of fundamentals essential for effective project cost management.
----------------------
In most of the software industries, there are specific costing and financial
professionals who look after the cost management aspect of the project. Still, ----------------------
understanding of cost management is not an exception for software project
----------------------
managers and you must have a clear understanding of the process of cost
estimation. ----------------------
5.2 COST MANAGEMENT OVERVIEW ----------------------
In software projects, cost is inherent, non-negotiable, and depends on the ----------------------

scope. However, since work-time estimates can be negotiated, we do not get an ----------------------
accurate picture of the cost. When the worker knows that the work-hours will
be negotiated by the boss, s/he pads the estimate to cover up unforeseen delays. ----------------------
(Padding means adding extra time in estimation). Knowing that the estimate is
padded, project managers try to reduce time estimation to as low as possible. ----------------------
Here, both (PM and his/ her team) miss the point that estimates have to be based ----------------------
on facts and not on the negotiation skills of two parties. Both need to understand
that costs cannot be negotiated; they are the expenses necessary to get the work ----------------------
done.
----------------------
Most of the concepts used in cost management are based on the financial
accounting and cost accounting. ----------------------
5.2.1 Basics of Costing ----------------------
Before proceeding into cost management, we must understand various financial
----------------------
terms such as cost, price, estimate, budget etc.
What is price? ----------------------
In general terms, price is the result of an exchange or transaction that takes ----------------------
place between two parties and refers to what must be given up by one party (i.e.
buyer) in order to obtain something offered by another party (i.e. seller). ----------------------
Yet this view of price provides a somewhat limited explanation of what price ----------------------
means to participants in the transaction. In fact, price means different things to
different participants in an exchange. For example, price is commonly confused ----------------------
with the notion of cost as in “I paid a high cost for buying my new mobile ----------------------
handset”. Technically, though, these are different concepts, price is what a buyer
pays to acquire products from a seller. Cost concerns the seller’s investment ----------------------
(e.g. development expenses, manufacturing expense) if the product is being
exchanged with a buyer. For marketing organisations seeking to make a profit, ----------------------
the hope is that price will exceed cost so the organisation can see financial ----------------------
gain from the transaction. In this unit, we are mainly focusing on the cost
management of the project and not the price. ----------------------
----------------------
Managing Cost 99
Notes What is cost?
A cost is a resource sacrificed or forgone to achieve a specific objective. A cost
----------------------
is the value of money that has been used up to produce something or we can
---------------------- simply say that expenses incurred to carry out the task. For example, the amount
paid to the programmer for coding, amount invested in hardware and software
---------------------- setups, amount paid for documentation, amount paid for implementation and
training etc.
----------------------
In a project, we perform various tasks and the cost is associated with each task.
---------------------- There is no task having zero cost. Few tasks and cost we can share among
multiple projects. Cost takes various forms and hence it is further classified into
----------------------
various types.
---------------------- Classification of costs
---------------------- Costs are classified into various types such as fixed cost, variable cost, direct
cost and indirect cost.
----------------------
Let us understand these types.
---------------------- i. Fixed Cost: Fixed costs are expenses that are not directly dependent on
---------------------- the activities of the project. They tend to be time-related, such as office
rents being paid per month. Fixed costs are defined as expenses that do
---------------------- not change in proportion to the activity of a project. That means you
have to pay full rent irrespective of the number of hours you utilised the
---------------------- office. Other example could be the cost of hardware and software setup.
---------------------- While costing, some percentage of the total fixed cost is applied to total
cost of the activity. Policy to apply proportionate fixed cost varies with
---------------------- organisation.
---------------------- ii. Variable Cost: In contrast to fixed cost, this cost varies in proportion to
the activities of the project. Duration and type of the activity decides the
---------------------- cost. For example, hours spent on coding, hours spent on testing. In this
example, the hourly rate varies with the types of activity and the rate of
----------------------
resource performing the activity.
---------------------- iii. Direct Cost: Quite often, projects incur direct expenses such as fees paid
to external consultant or special equipment bought for the projects etc. are
----------------------
billed directly to the project.
---------------------- Indirect Cost: Indirect costs are expenses that can be shared and allocated
iv.
across all projects, for example, salary of the senior project manager
----------------------
who is managing multiple projects. The total cost of the project can be
---------------------- calculated by adding all the above costs. However, the proportion of each
cost type is decided by the management. As a software project manager,
---------------------- you must be able to identify and estimate various costs. Before presenting
the final cost estimate, the project manager should consult with a financial
----------------------
expert and the project to ensure the accuracy of his estimate.
----------------------
----------------------

5.2.2 What is Project Cost Management Notes
Cost management deals with controlling of project resources to perform within
----------------------
agreed budget. Cost management is a three-step process. In step one, cost of
each scheduled activity is estimated; in step two, the aggregate budget for ----------------------
overall project is prepared. These two steps are performed in project planning
stage while the third step is cost controlling, which is performed throughout the ----------------------
project. Project cost management includes the processes required to ensure that
----------------------
the project is completed within an approved budget.
Each organisation has its own cost management policy that deals with ----------------------
specification of estimation methods, level of accuracy of the estimate, rules for
----------------------
measuring cost performance etc. The project manager must know and very well
understand the cost management policy before proceeding further. As projects ----------------------
are unique in nature, no one can accurately estimate the total final cost of the
project at the beginning of the project. Software project budgets are an integral ----------------------
part of business strategy and top management needs to know the funding
----------------------
requirements of the project well in advance.
Depending on the needs of the organisation, the project manager has to estimate ----------------------
the cost for various purposes. He has to select the appropriate estimate type.
----------------------
One of the widely used estimation type is order of magnitude, which is usually
prepared during project initiation phase. Order of magnitude estimation may ----------------------
vary from -50% to +100%; that means if your order of magnitude estimate is ----------------------
100 USD, then actually it can vary from 50 to 200 USD. Conceptual estimates
range from -30% to +50%. Preliminary estimates may range from -20% to ----------------------
+30%; definitive estimates range from -15% to +20% and control estimates
range from -10% to +15%. These are basic five estimation types based on the ----------------------
accuracy of the range. ----------------------
Project cost estimating is usually performed by summing estimates for
individual project elements into a project total. The pieces can vary in size and ----------------------
number from a few large chunks of a project with known costs to hundreds ----------------------
or thousands of discrete tasks or individual work packages. The main outputs
of the cost estimating process are cost estimates, supporting details and cost ----------------------
management plan.
----------------------
The best way to estimate project cost is to prepare a detailed project schedule
using Microsoft Project (or a similar tool) and to use the resource management ----------------------
features of that software to identify the types, quantities and phasing of different
types of labour. ----------------------
If you estimate only the requirements you are sure of, your estimate will usually ----------------------
be low. If your estimate for the number of source lines of software is uncertain,
----------------------
you may want to add an uncertainty factor to the estimate (15-35%). It is wise
to add a contingency factor to compensate expected changes or to allocate ----------------------
management reserves to deal with unforeseen event.
----------------------
Cost estimates are done for different reasons and the purpose of the estimate
usually imparts a basis to the numbers. “Marketing estimates” are likely to be ----------------------
Managing Cost 101

Notes low, while good “budget estimates” are likely to be high. When judging the
accuracy of an estimate, you need to know the source of the estimate and the
---------------------- purpose for which it was derived. Cost estimates that hinge on assumptions
about staff or asset availabilities or schedule dependencies outside the manager’s
---------------------- control should be considered areas of cost risk and managed accordingly.
---------------------- As a project manager, you need to understand if your cost estimates are sound
or if you are buying into an inevitable cost overrun due to underestimating. The
----------------------
adverse consequence of a cost estimate, which is too conservative, is that it can
---------------------- kill an otherwise viable project by making it look unaffordable.
Good cost estimating requires a supportive environment in the organisation.
----------------------
One way to help this is to develop projects using standard work breakdown
---------------------- structure categories and then collect actual costs in a historical cost database.
A cost database for software, for instance, could be used to collect data related
---------------------- to cost per line of code, software sizing algorithms, costs for function points or
cost data from bottom-up functional descriptions and tasks.
----------------------
A well-structured cost estimate can become unmanageable after the third or
---------------------- fourth “what-if” iteration unless each change is meticulously documented.
Even after knowing this fact well, experienced cost estimators are constantly
----------------------
reminded of it when trying to reconstruct or explain cost estimates that were
---------------------- prepared some months or years back. It seems that one can never document
a cost estimate too well or record assumptions too thoroughly. An aid to this
---------------------- process is using a PC spreadsheet to prepare your estimate, and then keeping
all the important data and adjustment factors visible in cells, rather than hidden
----------------------
in formulas. If the assumptions, risk factors and data sources are not obvious in
---------------------- your cost estimate documentation, then it is not done yet.
---------------------- Validation of cost estimated

Estimates need validation before they are used for any decision. Based on
---------------------- estimates, the pricing and profitability of the software development is decided.
---------------------- Normally, the project manger makes the estimates and arrives at cost. A third
party review is necessary to confirm the estimates. A review calls for looking
---------------------- into the following aspects of the software:
---------------------- a. Software requirements and specifications (scope, features, deliverables)
b. Design, architecture and platform (technical review)
----------------------
c. Process model (development strategy)
----------------------
d. Resource allocations (availability, suitability etc.)
---------------------- e. Outsourcing, training, new purchases, if any
---------------------- f. Risk analysis
---------------------- The objective of such review is to ensure that all inputs to the estimates are
reasonably accurate. Allocation of resources has a considerable impact on the
---------------------- success of the software in terms of quality, deliverables and implementation.
This review is absolutely necessary to ensure that the organisation does not
----------------------
lose business on technical, managerial and price grounds. The review shall to

consider alternative approaches to software development, which may lead to Notes
changes in design, architecture, methology and strategy, affecting the cost and
then the price. ----------------------
5.2.3 Types of Costing ----------------------
You should also know two more concepts, namely life cycle costing and value
----------------------
analysis. These two concepts are related to cost management and understanding
of them will help you in making cost related decision. ----------------------
i. Life Cycle Costing
----------------------
Product life cycle and project life cycle are two different things. Every product
goes through various stages during its life. These stages are called life cycle ----------------------
phases. Product life cycle begins with concept exploration and goes through ----------------------
various stages such as requirement, design, implementation, installation,
operations and support, maintenance and finally product becomes obsolete, ----------------------
called retirement stage. In life cycle costing, the cost of whole life of the
product will be taken into consideration. For example, you can estimate a ----------------------
project without considering more time for design reviews; here you may cut ----------------------
down design review cost but during maintenance, you may have to pay extra
cost due to poor design. Ultimately, the whole cost of the product remains the ----------------------
same. As a project manager, you need to focus on all aspects before giving the
final cost estimation. ----------------------
ii. Value Analysis ----------------------

Value analysis is sometimes referred to as value engineering. It involves finding ----------------------
a less costly way to do the same work. Value analysis requires the systematic
use of techniques to identify the required project functions, assign values to ----------------------
these functions and provide functions at the lowest overall cost without loss of
performance. If a team is looking at decreasing project cost but maintaining the ----------------------
same scope, they are performing value analysis. ----------------------
Value engineering is the practice of trying to get more out of the project in
----------------------
every possible way. Value analysis improves the “value” of goods or products
and services by using an examination of function. Value, as defined, is the ratio ----------------------
of function to cost. Value can therefore be increased by either improving the
function or reducing the cost. In value engineering, the basic functions are to be ----------------------
preserved and not be reduced as a consequence of pursuing value improvements.
----------------------
In most cases, this practice identifies and removes unnecessary expenditures,
thereby increasing the value to its customers. ----------------------
----------------------
It involves developing an approximation or estimate of the costs of the resources
needed to complete a project. Project cost is the total cost of the project. ----------------------
The project cost is calculated by aggregating cost of all individual activities ----------------------
performed in a project. For estimating cost of the project, we need to breakdown
the projects into smaller manageable activities. We studied how to decompose ----------------------
project activities using WBS (Work Breakdown Structure). Once you create
WBS, you need further details of each activity and duration of activity so that ----------------------
Managing Cost 103

Notes you can calculate the effort required to accomplish that activity. For example,
to design a payroll module, you need 120 hours of java programmer. Here you
---------------------- can calculate the cost of the activity by multiplying effort and the hourly rate of
a java programmer.
----------------------
Effort estimation is a prerequisite to cost estimation. In software projects, major
---------------------- portion of cost is consumed by the effort a human resource puts to deliver that
task. Accuracy of the effort determines the accuracy of the cost estimate; hence
----------------------
more emphasis is placed on effort estimation. To ensure correctness in effort
---------------------- estimation, we studied various empirical models such as COCOMO in time
management unit.
----------------------
Estimating cost for an activity is simpler than effort estimation and is calculated
---------------------- by multiplying effort in hours by hourly rate of the human resource performing
the activity. Every organisation follows different practices for rate determination,
---------------------- for example, some organisation may take actual rate (the current salary rate of
specific resource of that organisation) of the human resource and others may
----------------------
take standard rate (based on market conditions and salary surveys). You may
---------------------- think what the great deal in estimating cost is; however, in reality you need to
take into consideration lots of other factors such as constraints and assumptions,
---------------------- potential unknown risks etc.
---------------------- For accurate estimation, you need to think in advance about every aspect of
the project. Since estimations are given prior to project execution, you may
---------------------- not have complete information at hand at the time of estimation. As the project
progressively elaborates, you will have more confidence about the estimate.
----------------------
Few documents such as project scope statement, work breakdown structure,
---------------------- WBS dictionary, cost management plan etc. need to be considered while doing
---------------------- cost estimation.
Knowing how to estimate cost is not just enough. Depending on the type of the
---------------------- project, you need to select a methodical approach to estimate cost of an activity.
---------------------- For large projects, where thousands of activities are performed by hundreds of
human resource, you can use project management software such as Microsoft
---------------------- Project where you can easily record WBS, Resource information. These tools
provide you ample utilities such as resource calendar where you can check the
---------------------- availability of resource, various rate options such as hourly rates, monthly rates,
---------------------- one time consulting charges etc.
In large projects, costs are being managed at the control account level and not
---------------------- on small individual activity level. For simplicity of understanding, we can say
---------------------- that control account is the main group activity and all other related sub activities
are grouped under that control activity. For example, you can have coding as
---------------------- control account, which can consolidate the individual coding activities.
---------------------- Cost of Quality is one of the other important factors that need to be considered
while estimating. We will study more about cost of quality in the Quality
---------------------- Management unit. Cost of the quality is the cost that will be released in order to
achieve quality. In contrast to this, the costs of the items that are not conformant
----------------------
to quality standards are known as “Cost of poor quality”.

If the performing organisation does not have formally trained project cost Notes
estimators, then the project team will need to supply both the resources and the
expertise to perform project cost estimation activities. ----------------------
Tools & Techniques for estimating Costs ----------------------
Tools are the methods or procedures that you can use for simplifying your jobs.
Few commonly used estimation tools are analogous estimation, bottom up ----------------------
estimation and parametric estimation and reserve analysis. ----------------------
i. Bottom up estimation
----------------------
Bottom-up estimating involves estimating individual work items and
summing them to get a project total. Bottom up estimation is an extremely ----------------------
useful and widely used technique for cost estimation. The technique works
on the individual activity level and thus provides more refined estimate of the ----------------------
particular component of the project. In this technique, each activity is broken
----------------------
down into smaller tasks and then each individual task estimates are developed
to determine what specifically is needed to meet the requirements of each of ----------------------
these smaller components of the work.
----------------------
The estimates for the smaller individual components are then aggregated to
develop a larger estimate for the entire task as a whole. In doing this, the estimate ----------------------
for the task as a whole is typically far more accurate, as it allows for careful
consideration of each of the smaller parts of the task and then combining these ----------------------
carefully considered estimates rather than merely making one large estimate,
----------------------
which typically will not as thoroughly consider all of the individual components
of a task. ----------------------
Bottom up estimate provides more accuracy and involves the team who is
----------------------
performing the actual task. It has few disadvantages such as it takes more time
since it works on the detailed analysis of individual task. Involvement of team ----------------------
can cause overestimation since team members usually add extra time to their
estimates. ----------------------
ii. Analogous estimation ----------------------
Analogous estimation, also called as top-down estimates, is a technique for
estimating a variety of project parameters and measures of scale. The project ----------------------
parameters that can be measured include those of project cost, project budget, ----------------------
scope of the project and expected project duration. The project measures that
can be estimated using this technique can range from the size of the project to ----------------------
the project weight to the complexity. The estimates are made by comparing the
current activity to a smaller activity that took place previously and drawing ----------------------
comparisons in proportion to that. It is frequently used to estimate the size of ----------------------
a particular parameter when information as to that particular parameter within
the current project is limited or unavailable until a later date. This estimates ----------------------
technique uses the actual data of previously done projects of similar nature,
they are typically easier to use and the accuracy of the estimate depends on how ----------------------
similar the two projects actually are. ----------------------
These estimates are more reliable when the previous projects are similar in
fact and not just in appearance and the project team members preparing the ----------------------
Managing Cost 105

Notes estimates have the needed expertise. Analogous estimates are less costly to
create since you have most of the data from the previous project ready; you
---------------------- only need to properly compare the task of the current project with similar task
of previous projects. It needs good understanding and experience to relate the
---------------------- task. Disadvantage of analogous estimate is that as the two projects are not
---------------------- exactly similar, it becomes difficult to compare.
iii. Parametric estimation
----------------------
Parametric estimation is a technique that is essential for any project management
---------------------- team and/or project management team leader, as the use of parametric estimation
provides an invaluable service in the course of the project. Parametric modeling
----------------------
provides an estimate of per line of code for a software development project
---------------------- based on the programming language of the projects using the level of expertise
of the programmers, the size and complexity of the data involved. Parametric
---------------------- estimating refers primarily to an estimation technique, which utilises the
statistical relationship that exists between a series of historical data and a
----------------------
particular delineated list of other variables. Some examples of these variables
---------------------- are the number of lines or code that exists in a software application and other
similar variables. This information is then implemented for the purposes of
---------------------- calculating and demonstrating an estimate for the entire activity parameters.
One valuable aspect of parametric estimation is the higher levels of accuracy
----------------------
that can be built into it, depending on how sophisticated the original data is.
---------------------- Parametric estimates work best when the project being undertaken is highly
similar to previous projects and there is significant historical information
---------------------- available within your organisation.
---------------------- iv. Determine Resource Cost Rates
---------------------- The person determining the rates or the group preparing the estimates must
know the cost rates, such as staff cost per hour and bulk material cost per cubic
---------------------- yard, for each resource to estimate schedule activity cost. Gathering quotes is
one method of obtaining rates. Obtaining data from commercial databases and
---------------------- seller published price list is another source of cost rates. If the actual rates are
---------------------- not known, then the rates themselves will have to be estimated.
v. Vendor Bid Analysis
----------------------
Other cost estimating methods include vendor bid analysis of what the project
---------------------- should cost. In cases where projects are won under competitive processes,
additional cost estimating work can be required of the project team to examine
---------------------- the price of individual deliverables and derive a cost that supports the final total
---------------------- project cost.
vi. Project Management Software
----------------------
Project management software, such as cost estimating software applications,
---------------------- computerised spreadsheets and simulation and statistical tools are widely used
to assist with cost estimating. Such tools can simplify the use of some cost
----------------------
estimating techniques and thereby facilitate rapid consideration of various cost
---------------------- estimate alternatives.

Notes
----------------------
1. When the worker knows that the work-hours will not be negotiated by
----------------------
the boss, s/he pads the estimate to cover up unforeseen delays.
2. Most of the concepts used in cost management are based on financial ----------------------
accounting and cost accounting.
----------------------
3. A cost is a resource sacrificed or forgone to achieve a specific
objective. ----------------------
1. Computerised spreadsheet is an example of ___________. ----------------------
2. A parametric estimation provides an estimate of ________.
----------------------
3. Analogous estimation is also called _____________.
----------------------
----------------------
Activity 1
----------------------
1.
Take an already estimated project and do validation of cost ----------------------
estimated. Write your comments and observations.
2. Gather a few Quotations / Cost estimate and check the cost of ----------------------
resources required for a project. ----------------------
----------------------
5.3 PREPARING BUDGET OF THE PROJECT
----------------------
As a project manager, it is your prime responsibility to prepare project budget
----------------------
and justify the same to the top management in case of budget conflicts. PM is
also responsible for managing the project in the given budget. Hence, you must ----------------------
thoroughly understand the basic concepts of budgeting.
----------------------
What is Project Budget?
Cost budgeting involves aggregating the estimated costs of individual schedule ----------------------
activities or work packages to establish a total cost baseline for measuring
----------------------
project performance. The project scope statement provides the summary budget.
However, schedule activity or work package cost estimates are prepared prior ----------------------
to the detailed budget requests and work authorisation.
----------------------
----------------------
----------------------
----------------------
Managing Cost 107

Notes Table 5.1: Cost Budgeting: Inputs, Tools & Techniques and Outputs
Inputs Tools & Techniques Output
----------------------
---------------------- 1. Project scope 1. Cost aggregation 1. Cost baseline

statement 2. Reserve analysis 2. Project funding
----------------------
2. WBS 3. Parametric requirements
----------------------
3. Activity cost estimating 3. Cost management
---------------------- estimates 4. Funding limited (Updates)
---------------------- 4. Activity cost reconciliation 4. Requested changes

estimates supporting
---------------------- details
---------------------- 6. Project schedule
7. Resource calendars
----------------------
8. Contract
----------------------
9. Cost management
---------------------- plan
---------------------- Budget is nothing but a list of all planned expenses. It is a plan describing how
you are going to spend money over time. We can also say that budget is time-
---------------------- phased allocation of money. In other terms, a budget is an organisational plan
stated in monetary terms. The purpose of budgeting is to provide a forecast of
---------------------- expenditures, i.e. construct a model of how the project will perform financially
---------------------- and how certain activities of the project and plans are carried out. Budget also
enables top management to measure the actual financial performance of the
---------------------- project against the forecast.
---------------------- Budgets are generally prepared in the planning stage of the projects. Certain
information needs to be at hand before preparing the budget, e.g. cost estimates,
---------------------- project schedule and risk management plan. Budget is not just the total cost
of the project. Funds are usually released in time phases. For example, your
---------------------- projects need to setup high capacity hardware at the time of implementation;
---------------------- then while budgeting, the amount of hardware setup cost is shown along with
when that cost is required. Funds to procure new hardware are only released
---------------------- prior to the actual procurement of new hardware.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
Cost Budget Total budget=$530
----------------------
Management reserve MR=$30 ----------------------
----------------------
Cost Baseline CB=$500
----------------------
Contingency reserve CR=$50 ----------------------
----------------------
Proect Estimate PE=$450
----------------------
Control account ----------------------
estimate CAI=$250 CA2=$200
----------------------
Work package WP1=$150 WP2=$100 WP3=$200
estimate ----------------------
A1 A2 A3 A4 ----------------------
Activity Estimate
$50 $75 $25 $100
----------------------
Fig. 5.1: Use of Cost Aggregation to prepare Budget
----------------------
How cost aggregation is used to prepare budget is shown in the above figure.
First, all activity level estimates are calculated. These activities are further ----------------------
grouped to work at package level, for example, your work package could be
----------------------
to develop payroll modules, which include three activities- analysis, design
and coding. You can have number of work packages in a project. However, ----------------------
managing cost at the individual level is difficult; hence, control accounts are
created. These control accounts further control individual work packages. ----------------------
You can define coding, design, testing as control accounts. The summation
----------------------
of all control accounts will give you the total cost of the project. After this,
contingency reserves are added to the cost of the project (detailed explanation ----------------------
of reserve analysis is given below). That will give you the cost baseline of the
project. ----------------------
The term baseline used here is a tool to measure how the performance of the ----------------------
project deviates from the original plan. All known risks are generally covered
in cost baseline; however, to handle unknown risks, some management reserves ----------------------
are set aside to mitigate the unknown risks. Adding management reserve to cost
----------------------
baseline will give you the total budget of the project. In budget, along with the
cost, the expected date on which the fund will be utilised is also shown. ----------------------
Cost Budgeting: Tools and Techniques ----------------------
Cost Aggregation
----------------------
Schedule activity cost estimates are aggregated by work packages in accordance
with the WBS. The work package cost estimates are then aggregated for the ----------------------
Managing Cost 109

Notes higher component levels of the WBS such as control accounts and ultimately
for the entire project.
----------------------
• Reserve Analysis: Reserve analysis is a tool used in budgeting for
---------------------- managing the risk. Almost all projects maintain a financial reserve to
protect them against cost overrun. In real life, project budget may exceed.
---------------------- There could be various reasons for budget overruns, such as a key person
leaving the project, new technology not completely understood, which
----------------------
could delay the project. Hence while budgeting, you should take enough
---------------------- care of the potential risk and make necessary arrangements for managing
that risk. You cannot mitigate risk if you do not have sufficient funds in
---------------------- hand. To avoid such circumstances, it is wise to make arrangements of
reserve funds. Two types of funds can be added- contingency reserve and
----------------------
management reserve.
---------------------- • Contingency Reserve: The term contingency reserve refers primarily to
the amount or quantity of funds or other financial resources that is required
----------------------
to be allocated at and above the previously designated estimate amount
---------------------- to reduce the risk of overruns to an acceptable level for the financially
responsible organisation. However, contingency reserve need not refer
---------------------- exclusively to monetary terms. It can also refer to a specific quantity
of time in man-hours that must be allocated beyond the previously
----------------------
determined quantity of hours required to assure that any overtime or other
---------------------- unexpected hours of work required can be properly compensated for.
Typically, the contingency reserves, in terms of both finance and time, are
----------------------
determined at the outset of a project. However, as a project is ongoing, if
---------------------- it appears that the project will require additional funds or time allocation
to complete, contingency reserves can be instituted or modified at any
---------------------- time to better prepare the organisation for the possibility of their usage at
some point in a project’s life.
----------------------
• Management Reserve: Management reserves are any extra funds to be
---------------------- set aside to cover unforeseen risks or changes to the project. The difference
---------------------- between contingency reserve and management reserve is that contingency
reserve will take care of any known risk that arises. As an example, suppose
---------------------- one of your key persons leaves the job. Then you can arrange another
person and for that, you may have to pay extra time and cost. However,
---------------------- in real life, certain things, the occurrence of which we cannot predict, are
---------------------- called unknown risk. Such unknown risks have considerable impact on
the project. For example, you cannot predict that flood or earthquake will
---------------------- destroy your hardware or attack of unknown virus can potentially damage
your source data. Nowadays, floods, earthquakes are considered as known
---------------------- risks and most of the organisations keep contingency plans ready.
---------------------- How to prepare a budget
---------------------- The most basic cost control technique is to develop a project budget and then
track spending against it. On a small project, this can be as simple as having a
---------------------- target cost goal for the total project. You could monitor project costs and sound

the alarm if the percent of money spent exceeds the percent completion estimated Notes
for the project. You could also prepare a time-phased budget, as shown in the
figure below, breaking the overall budget goal into intervals of weeks, months, ----------------------
quarters or years. This can provide a budget baseline for tracking actual costs
against periodic budget targets. When the cumulative budgets of estimated ----------------------
project costs are plotted graphically over time, they usually result in the shape ----------------------
illustrated, which is sometimes called an S-curve, since it looks like an inclined
‘S’ ----------------------
Budget Spend Plan Tracking ----------------------
A simple technique for tracking project costs is to develop a weekly or monthly
----------------------
cumulative budget spend plan and then track actual costs against the plan. The
slope of the spend plan indicates the project expenditure rate, sometimes called ----------------------
the ’burn rate’. By plotting actual costs against the budget spend plan, you can
see differences between actual spending and the spend plan. This technique ----------------------
provides a simple, top-level view of project financial performance that can be
----------------------
useful for executive briefings, especially where you want to match expenditures
to a funding stream. ----------------------
----------------------
Management
Budget Reserve ----------------------
Ceiling
Spend ----------------------
Plan
Dollars ----------------------
----------------------
Actuals ----------------------
----------------------
----------------------
Months
Fig. 5.2: Planning of Software Project Management ----------------------
The spend plan can be generated using a project management software tool. ----------------------
This can also be used to establish a performance measurement baseline of the
budgeted cost of work scheduled. If the project is on schedule, the spend plan ----------------------
method provides the needed budget status information. If the project shown
----------------------
were behind the schedule, the project manager would no longer be able to
understand project status from this graph. The budget picture would be worse ----------------------
than it looks, but it would be impossible to quantify.
----------------------
When a project is sufficiently large or complex and when it is unclear which
project elements are contributing to deviations from the budget plan, a more ----------------------
rigorous approach to cost and schedule tracking should be employed. The above
diagram links cost and schedule performance and presents them in a form that ----------------------
facilitates management analysis and presentation. ----------------------
Managing Cost 111

Notes

----------------------
----------------------
1. Inputs to cost budgeting:
---------------------- a. Cost aggregation
---------------------- i. WBS
---------------------- ii. Resource calendar
iii. Contract
----------------------
2. Tools and techniques used
----------------------
i. Funding limited reconciliation
---------------------- ii. Parametric estimating
---------------------- iii. Reserve analysis
---------------------- iv. Project schedule
3. Output of cost budgeting:
----------------------
i. Cost baseline
----------------------
ii. Reserve analysis
---------------------- iii. Cost management
---------------------- iv. Requested changes
----------------------
---------------------- Activity 2
---------------------- 1. You are working as the assistant project manager. What sort of help
---------------------- will you provide in preparing budget for a software project?
2. Speak to a project manager and collect details of various tools and
---------------------- techniques used for cost budgeting.
---------------------- 3. In which situation will you utilise contingency reserve? Explain
with example.
----------------------
----------------------
5.4 CONTROLLING COST OF SOFTWARE PROJECTS
----------------------
Once the estimation and budgeting task is over, your project can start actual
---------------------- execution and utilisation of the allocated funds. The main objective of any
successful project is to complete the project in the given budget. In reality, cost
---------------------- tends to deviate from the budget and you need to control the cost of the project.
---------------------- Controlling cost of the project is not a one-time activity; you have to frequently
check whether your project is on the track. The frequency of checking usually
depends on complexity and size of the project. However, usually during the Notes
planning phase, cost controlling takes place monthly and in the execution phase,
it can be performed weekly. Generally, cost controlling process is performed ----------------------
when maximum portion of the project budget is being utilised. Controlling
processes measure what was executed against what was planned. If the results ----------------------
are deviating from the cost baseline, then appropriate action needs to be taken ----------------------
to bring back the project on track.
----------------------
Controlling is one of the measure functions of project management. Project cost
control includes monitoring cost performance, ensuring that only appropriate ----------------------
project changes are included in a revised cost baseline and informing the project
stakeholders of authorised changes to the project that will affect costs. In project ----------------------
cost management, focus is on cost controlling.
----------------------
Controlling is an integrated activity. If one of your team members is not
performing well on the given task, you have to take corrective actions from the ----------------------
cost controlling point of view; you need to analyse why this team member is not
----------------------
performing well. There could be various reasons, such as lack of interest and
motivation, lack of understanding, lack of communication or other HR-related ----------------------
problems. The controlling process in such a scenario interacts with the HR and
communication management. Control can be established by using various tools ----------------------
such as progress reporting, performance measurement analysis, performance
----------------------
reviews, forecasting, variance management, meetings etc.
Project cost control includes the following: ----------------------
• Influencing the factors that create change to the cost baseline ----------------------
• Ensuring requested changes are agreed upon ----------------------
• Managing the actual changes when as they occur
----------------------
• Recording all appropriate changes accurately against the cost baseline
----------------------
• Informing appropriate stakeholders of approved changes
Project cost control searches out the causes of positive and negative variances ----------------------
and is a part of Integrated Change Control. ----------------------
----------------------
We will study two most commonly used cost controlling techniques: progress
reporting and earn value management. ----------------------
1. Progress Reporting ----------------------
The progress reporting tool is usually used for controlling time and cost of the
----------------------
projects. The progress report is a very comprehensive document that describes
what the original plan was, what the current status of the project is and what the ----------------------
direction and corrective actions for future activities might be. It helps to track
the rate at which work is being completed (productivity) and the quality of work ----------------------
being done.
----------------------
Many project managers determine how much work has been accomplished by
asking team members for an estimate of percentage completed for each activity ----------------------
Managing Cost 113

Notes they are performing. However, the percentage will not give the exact status of
the work being performed. The process is also time-consuming. If your project
---------------------- is planned as per WBS, then instead of percentage, you can use some thumb
rules as below.
----------------------
ctivity Completion Rule: By crediting different figures for activity beginning
A
---------------------- and completion, you can measure the progress of project activities. Usually
50/50, 20/80 or 0/100 figures are taken for measuring the progress. For instance,
----------------------
as soon as an activity begins, activity gets credit of 50 and only after completion,
---------------------- activity will get full credit of balance 50. There is no credit in between the
percent. Depending on the project, you can decide what percentage needs to be
---------------------- given to begin an activity and complete an activity.
---------------------- Instead of just relying on the percentage and guesswork, you can use one more
effective tool to control the cost of the project. The technique is known as Earn
---------------------- Value Management technique (EVM). This technique uses various formulas.
Earned value management is a project performance measurement technique
----------------------
that integrates scope, time and cost data.
---------------------- 2. Earn Value Management
---------------------- If your budget spend plan shows you are over spending and your schedule
shows milestones slipping, you can know that you may be in trouble, but you
---------------------- will have no way to make a quantitative assessment of how bad the trouble is.
---------------------- EVMS solves this problem by providing an accurate picture of spending and
accomplishments related to a baseline plan. This enables you to quickly form
---------------------- conclusions about the project team’s staffing levels and productivity, as well
as giving an insight into areas of the WBS where the problems are occurring.
---------------------- Earned Value Management provides an integrated view of cost and schedule
---------------------- performance.
Budget at Completion (BAC)
----------------------
This defines the original total cost of the project. For example, your original
---------------------- budget for developing an application could be $130, which includes activities
such as dataset design, interface design, coding and testing.
----------------------
Planned Value (PV): Planned value is the budgeted cost for the work scheduled
---------------------- to be completed on an activity or WBS component.
---------------------- Earned Value (EV)
---------------------- You planned that by today, your team will finish all of the three activities of
the project but in reality, your team only finished database design activity. That
---------------------- means, from the planned value example we can say that the project only earned
30$ value from database design activity. Earn value describes the value of the
---------------------- work actually accomplished.
---------------------- Actual Cost (AC)
---------------------- Actual cost is nothing but the actual money you spent on performing the activity.
Though ideally, planned value and actual cost should be the same, in reality
---------------------- they are not same. Sometimes you may spend extra or less. Suppose that your

team takes 10% extra time than planned, then your actual cost will exceed by Notes
10% for that activity.
----------------------
Cost Variance (CV)
Cost variance is the difference between what we expected to spend and what ----------------------
was actually spent and calculated as CV = EV – AC. For example, you expected
----------------------
that cost of database design is 30$ but you actually spend 40$, so the cost
variance will be 30 – 40 = -10. Negative variance indicates that your project ----------------------
is not performing well on the cost (i.e. project is running over budget) while
positive variance indicates that the project is under budget. ----------------------
Schedule Variance (SV) ----------------------
Schedule variance is the difference between where we planned to be in schedule ----------------------
and where we are actually in schedule. SV is calculated as SV = EV- PV. In the
above example, you planned that the team will finish all three activities (database ----------------------
design, interface design, coding) but as on date, the team only performed
database design activity. From the database design activity, the project earned ----------------------
30$ value but planned value was 100$; thus your schedule variance is SV = ----------------------
30 - 100 = -70. Here negative value indicates that the project is not performing
well on the schedule; it is lagging behind the schedule. It may happen that ----------------------
cost performance is not performing well on cost but performing well on the
schedule. By increasing resources, you may finish all activities as per the plan ----------------------
but it will increase the cost due to extra resources. ----------------------
Cost Performance Index (CPI)
----------------------
It is the ratio of earned value to actual cost. The cost performance index indicates
the rate at which the project performance is meeting the cost expectations ----------------------
during a given period of time. This is calculated as CPI = EV/AC. In the above
example, EV is 30$ and AC is 40$. Thus by substituting values, we can calculate ----------------------
CPI as 30/40=0.75. ----------------------
Schedule Performance Index (SPI)
----------------------
It is the ratio of earned value to planned value. SPI indicates the rate at which
your project is performing on schedule and is calculated as SPI=EV/PV; the SPI ----------------------
of the project described in the above example is SPI = 30/100 = 0.3.
----------------------
Estimate at Completion (EAC)
----------------------
It is an estimate of what it will cost to complete the project based on performance
to date. This estimate should not be confused with BAC since this estimation ----------------------
takes place during project execution while the BAC is estimated before
execution. Based on the performance of the project on current date, the EAC ----------------------
need to be re-estimated. EAC will tell you how much estimate you require ----------------------
current day onwards to complete the pending activities of the project. This can
be calculated as EAC = AC + (BAC - EV). ----------------------
In the above example, BAC is 130$, out of which only database design activity ----------------------
was over. Hence we earned only 30$ value while we spent actually 40$ to
complete the activity. Hence the new estimate to complete the project will be ----------------------
Managing Cost 115

Notes EAC = 40 + (130 - 30) = 140$. Here the new estimate increased due to more
time taken by the team in database design activity.
----------------------
Estimate to Complete (ETC)
---------------------- This will tell us how much more we will spend on the project. This is the
difference between new estimate and actual spend. Putting values, we will get
----------------------
figure ETC = EAC – AC = 140 – 40 = 100$.
---------------------- Analysis of Earn Value
---------------------- All the EVM basic calculations involve differences or ratios with respect to
Earned Value.
----------------------
You can figure out what is subtracted from what by remembering that positive
---------------------- variance is favourable (good) and negative is unfavourable (bad).
---------------------- You can figure out what is on top of an EVM ratio, by remembering that >1 is
favourable and <1 is unfavourable.
----------------------
If you have good productivity and slow progress, then you are understaffed.
---------------------- If you have low productivity, then either you have too much unplanned work
or you have estimated poorly and the project has more work content than you
----------------------
thought.
---------------------- Earned Value Implementation (Informal Approach)
---------------------- To determine earned-value performance measurements for your project, you
need to accomplish four steps:
----------------------
1. Establish a performance measurement baseline in dollars (or hours). (This
---------------------- will determine the ‘budgeted cost of work scheduled’ for the life of the
project.)
----------------------
2. Determine ‘earned value’ for work accomplished to date. (Earned value is
---------------------- the ‘budgeted cost of the work performed’.)
---------------------- 3. Relate earned value to the budgeted cost of work scheduled.
4. Relate ‘actual cost of work performed’ to earned value.
----------------------
These four steps provide data to present a comprehensive picture of project cost
---------------------- and schedule performance.
---------------------- Implementation of such a process can be scaled to fit projects of varied size
and complexity. One should select the appropriate level of the WBS for data
---------------------- gathering and appropriate means for determining earned value. This can range
---------------------- from a few top-level categories where earned-value is determined from percent
completion estimates to projects where earned value determination is pre-
---------------------- planned, based on the assignment of dollar values to completion of specific
milestones or subtasks within tasks.
----------------------
After the performance measurement baseline is determined, project status
---------------------- should be evaluated to assess earned value for tasks in progress and completed.
Rules for determining earned value for each work package may be established
---------------------- during initial cost/schedule control system implementation.

Earned Value Management Example Notes
Consider that you are the project manager and working on a software project
----------------------
comprising of four major activities: Analysis, Design, Coding and Testing. The
budgeted cost of completion is 100$. Following figure illustrates the various ----------------------
tasks and percentage of their completion. Highlighted dark vertical line shows
the date on which project progress is measured. ----------------------
Total duration of the progress
----------------------
(D)day on which progress is measured ----------------------
----------------------
Analysis 100% 30$
Design 80% complete 40$ ----------------------
Coding 70% 80% 20$
----------------------
Testing 15% 10$
----------------------
Fig. 5.3: Example of Earned Value Management ----------------------

The percentage of task completion is shown inside the box of each activity. Let ----------------------
us say budgeted cost of activity Analysis = 30$, Design = 40$, Coding = 20$
and Testing = 10$. From the figure, we can understand that activity analysis & ----------------------
design should be completely finished on date D. (D is the date on which the ----------------------
progress was measured), while 80% of coding and 15% of testing activity was
expected to be finished on date D. However, at the time of project reporting, ----------------------
activity analysis was 100% complete, 80% design activity complete, 70%
coding activity complete and testing was not yet started. ----------------------
Planned value can be calculated by summing values of all activities to be ----------------------

completed till the date D. Hence looking at the figure, we can straightaway say
that planned value of analysis and design is to be taken as 30 and 40 respectively ----------------------
since they expected to be finished before date D. 80% of coding activity is ----------------------
expected to be finished; hence, planned value of coding is 80% of $20, i.e.
16. Further, 15% of testing activity was planned to complete on date D; thus ----------------------
planned value of testing activity is 15% of $10, i.e. 1.5.
----------------------
Hence total planned value of the project is PV = 30 + 40 + 16 + 1.5 = $87.5; by
rounding we get $88. ----------------------
(Here, for simplicity we rounded but in practice, how much to round, at what ----------------------
level to round etc. will be decided as per the cost management plan.)
----------------------
As Analysis activity was 100% complete, project earned value is $30.
As design activity was only 80% complete, we earned only 80% of $40, that is ----------------------
$32. As coding activity was only 70% complete and as 80% was expected to be
----------------------
finished, we earned value of $14 and as testing is not yet started, we earned 0
value from testing activity. ----------------------
----------------------
Managing Cost 117

Notes Thus, by adding all the earned values, we get total earn value = EV = 30 + 32
+ 14 + 0 = $76. Actual cost is taken from the actual money spent on the project
---------------------- till date. Let us say project actual cost was $85.
---------------------- From all the above figures, we can calculate further SV, SPI, CV & CPI, ETC,
EAC.
----------------------
Schedule variance SV= EV- PV = 76-88 = -12
---------------------- Schedule performance index = SPI = EV/PV = 76/88 = 0.86
---------------------- Cost variance = CV= EV- AC =76 - 85 = -9
---------------------- Cost performance index = CPI = EV/AC = 76/85 = 0.89

Estimate at completion = EAC = AC + (BAC-EV) = 85 + (100-76) = 109
----------------------
Estimate to Complete = ETC = EAC- AC = 109 - 85 = 24
----------------------

---------------------- i. Earn Value a. Difference between what we expected
Management to spend and what was actually spent
----------------------
ii. Budget at completion b. Provides an integrated view of cost and
---------------------- schedule performance
iii. Actual cost c. Describes the value of the work actually
----------------------
accomplished
---------------------- iv. Cost variance d. Defines the original total cost of the
project
---------------------- e. It is the ratio of earned value to actual
---------------------- cost
----------------------
Activity 3
----------------------
---------------------- 1. Interpret the EVM values of above illustrated example and comment
on the project progress.
----------------------
2. For a project, earned value = 350, actual cost = 400 and planned
---------------------- value = 325. Calculate the cost variance, schedule variance and
cost & schedule performance index. Interpret how the project is
---------------------- performing on cost and schedule.
----------------------
----------------------
----------------------
----------------------

Summary Notes
●● Managing a project in the given budget is the responsibility of the project ----------------------
manager. In the planning stage, the estimation and budgeting part of the
----------------------
project is performed while cost controlling activity is usually performed
throughout the project. ----------------------
●● There are various cost estimation tools and techniques such as bottom
----------------------
up estimation, analogous estimation and parametric estimation. An
appropriate application of the tool is the responsibility of the PM and ----------------------
based on the project size, complexity and available date, he can choose
the right tool. ----------------------
●● Cost management is not a standalone process; it interacts with other ----------------------
activities such as communication and time management.
●● Budget is a time-phased allocation of funds that we spent on a project. ----------------------
Budgets are prepared by aggregating the cost of individual activities of ----------------------
the WBS. To mitigate known and unforeseen risks, some reserves are kept
aside for managing the consequences of the risk. Two types of reserves ----------------------
are kept aside- management reserve and contingency reserve.
----------------------
●● Cost of the project can be controlled by taking reviews, meetings,
performing performance analysis and progress reporting. ----------------------
●● EVM tool is used for performance analysis. ----------------------
Keywords ----------------------
●● Estimation: Assessment of project ----------------------
●● Validation: Confirmation of application ----------------------

●● Project Cost: The amount that is got after summing up all values ----------------------
●● Decompose: Breakdown of processes
----------------------
Self-Assessment Questions ----------------------
1. Explain the importance of project cost management. ----------------------

2. Comment on the need of reserve analysis. ----------------------
3. Compare the advantages and disadvantages of each estimation type.
----------------------
4. What information do you require to prepare the budget?
----------------------
5. Discuss the factors to be considered while preparing the budget.
6. Briefly explain the EVM technique along with the interpretation of EVM ----------------------
results. ----------------------
----------------------
----------------------
Managing Cost 119

Notes Answers to Check your Progress

1. False
---------------------- 2. True
---------------------- 3. True

1. Computerised spreadsheet is an example of project management software.
---------------------- 2. A parametric estimation provides an estimate of per line of code for a project.
---------------------- 3. Analogous estimation is also called top down approach.

----------------------
1. Inputs to cost budgeting:
---------------------- ii. WBS
---------------------- iii. Resource calendar
iv. Contract
----------------------
2. Tools and techniques used
---------------------- i. Funding limited reconciliation
---------------------- ii. Parametric estimating
iii. Reserve analysis
----------------------
3. Output of cost budgeting:
---------------------- i. Cost baseline
---------------------- iii. Cost management
iv. Requested changes
----------------------
---------------------- i. –b
---------------------- ii. –d
---------------------- iii. –c
iv. –a
----------------------

---------------------- 1. Hughes, Bob and Mike Cottrell. Software Project Management.
---------------------- 2. Jawadekar, Vaman S. Software Engineering Principles and Practice.
---------------------- 3. A Guide to the Project Management Body of knowledge

Managing Quality
UNIT
6
Structure:
6.1 Introduction
6.2 What is Quality
6.2.1 Quality Principles
6.3 Quality Planning
6.4 Quality Assurance and Quality Control
6.4.2 Quality Control (QC)
6.4.3 Difference between Quality Assurance and Quality Control
6.5 Cost of Quality
6.6 Quality Management Tools
6.7 Industry Quality Standards/ Models
Summary
Key Words
Suggested Reading
Managing Quality 121

Notes
Objectives
----------------------
----------------------
• Describe the basics of quality management
---------------------- • Discuss the importance of quality planning and its tools
---------------------- • Differentiate between quality assurance and quality control
• Explain quality management tools
----------------------
• Describe various quality management standards
----------------------
---------------------- 6.1 INTRODUCTION

---------------------- In this unit, we will explore the concepts of software quality management and
study the various tools and techniques used to manage the quality of software.
----------------------
Let us first understand the importance of quality. Can you imagine the frustration
---------------------- of a customer when his application software does not work in an important
meeting? Or when he is not able to connect to the internet when he desperately
---------------------- needs it? We come across such situations many a times. The root cause of this
---------------------- entire problem is lack of quality. Due to advancement in technology day by
day, we rely totally upon the use of computers. Everything from buying pizza
---------------------- to booking online tickets (travel/movies etc.) to internet banking can be done
with a single click of the button. Therefore, we cannot afford delays, erroneous
---------------------- results due to poor quality. It wastes our valuable time as well as money. Hence,
---------------------- without proper quality management, giving high quality product is a difficult
task.
----------------------
One needs to understand the reasons behind deterioration of quality. How do
---------------------- defects originate? How can we control defects? Can we get high quality product
in less amount? Such are the basic concerns of quality management. These
---------------------- problems need to be addressed in quality management. Quality deteriorates
basically due to variation in parameters, process etc. Variation means no
----------------------
two things are exactly alike. Variation is inherent in every human creation.
---------------------- For instance, a program written for adding two numbers developed by two
programmers is not alike, unless and until it is copied. Though their output
---------------------- is the same, we can find variation in their execution speed. These variations
become more apparent when we perform large and complex calculations. A
----------------------
small defect in applications such as internet banking will cause loss of thousand
---------------------- million dollars. Similarly, in applications such as nuclear control, life saving
equipment, air traffic control etc., quality cannot be compensated for any other
---------------------- benefits.
---------------------- Quality is integral to every product we make or buy. Software products are
not an exception to this. Our customers always expect the best quality of the
---------------------- product. For the customer, quality is the satisfaction, comfort and reliability.
----------------------

Better quality can be achieved by proper quality planning, quality control and Notes
quality assurance.
----------------------
Due to competitive advantage, importance of quality is recognised by every
industry. Various quality theories have been developed by Joseph Juran, W. ----------------------
Edwards Deming and Philip Crossby. Quality management is continuous
improvement process; hence new theories, standards, tools and techniques are ----------------------
always emerging in software industry to manage the quality of software. In this
----------------------
unit, we will study the basic processes of quality management- quality planning,
quality control and quality assurance along with various tools. ----------------------
6.2 WHAT IS QUALITY ----------------------
A product is a quality product if it is defect free. ----------------------
There are different views of quality. From the developer’s perspective, quality ----------------------
means meeting requirements that define the product. The producer’s view of
----------------------
quality has these four characteristics: Doing the right thing; doing it the right
way; doing it right the first time and doing it on time without exceeding cost. ----------------------
The customer’s view on quality states that quality means meeting the customer’s
needs, regardless of whether the requirements were met. This is referred to as ----------------------
fit for use.
----------------------
In simple terms, Quality means the characteristics or attributes of software. As
a user, we have specific expectations about the software product we are using. ----------------------
These expectations are usually expressed in terms of explicit requirement,
----------------------
for example, we expect that a ‘calculator’ application should perform all
computation. If your calculator application does all computations accurately, ----------------------
we can say that the application meets the quality. Here only one requirement
has been mentioned. ----------------------
However, in reality, there could be lot of implicit and explicit requirements, ----------------------
for example, the precision and the length and size of input data, features such
as scientific and engineering calculations. If the customer has concrete ideas, ----------------------
he can explicitly mention them. However, he cannot explicitly express certain
----------------------
expectations, for which he is not sure e.g. how the interface (graphical user
interface) should be, what buttons it should have etc. ----------------------
The totality features of a product, process or service bear on its ability to satisfy ----------------------
the stated or implied needs.
Unlike physical entity, measurement of software characteristic is somewhat ----------------------
challenging. Software being an intellectual entity, it becomes difficult to ----------------------
identify the characteristics of the software. For example, we can easily identify
the characteristics of physical entity such as length, width, height, grade of ----------------------
material, colour etc.
----------------------
As software technology will grow mature, we will have more concrete methods
to identity and measure the characteristics of software. Many researchers in ----------------------
this field developed theories and provided guidelines in software quality
management with which we can measure the quality of the software. ----------------------

Notes 6.2.1 Quality Principles
Everyone is responsible for quality, but it is the responsibility of the senior
----------------------
management to emphasise and initiate the quality improvement process and
---------------------- then take it down through the organisation to the individual employees.
The following are three essential quality principles that must be in place for
----------------------
quality to happen:
---------------------- 1. Management is responsible for quality: Quality cannot be delegated
effectively. Management must accept the responsibility for the quality
----------------------
of the products; otherwise, quality will not happen. A quality function is
---------------------- only a catalyst in making quality happen. It assists the management in
building quality information systems by monitoring quality and making
---------------------- recommendations to management about areas where quality can be
improved. As the quality function is a staff function, not management, it
----------------------
cannot dictate quality for the organisation. Only management can make
---------------------- quality happen.
---------------------- 2. Producers must use effective quality control: All of the parties and
activities involved in producing a product must be involved in controlling
---------------------- the quality of those products. This means that the members in the project
team will be actively involved in the establishment of their own standards
---------------------- and procedures.
---------------------- 3. Quality is a journey, not a destination: The objective of the quality
program must be continuous improvement. The end objective of the
---------------------- quality process must be customer satisfaction.
---------------------- Perception on principles of quality varies from organisation to organisation and
hence it becomes difficult to uniquely define the quality principle of software.
---------------------- However, we can apply certain guidelines that are generally accepted and that
---------------------- can help us in better management of software quality. These are:
●● All software must meet the explicit and implicit requirements of the
----------------------
customer. Prevention over Inspection approach should be taken to avoid
---------------------- quality defects than to inspect and correct defects. Correcting changes
later on in software will have considerable impact on the project.
---------------------- ●● Maintain the quality of product as well as the project. Avoid gold plating:
---------------------- It means giving additional things to customer than required. Giving extra
things does not mean you are giving extra quality. Gold plating should not
---------------------- be confused with the quality. It is important to give only what is required
and it is most important to deliver a defect-free software.
----------------------
●● Quality principle should align with the principles of the organisation.
---------------------- Involvement of stakeholders from top to bottom management and at
certain point of time the involvement of your customers.
----------------------
---------------------- Before you start planning quality, you must know what different factors can affect
---------------------- software quality. McCall and his colleagues proposed a useful categorisation of
factors that affect software quality. Some of these factors are:
a. Correctness: It is the extent to which a program satisfies its specifications Notes
and fulfills the customer’s mission objectives.
----------------------
b. Reliability: It is the extent to which a program can be expected to perform
its intended function with required precision. ----------------------
c. Efficiency: The amount of computing resources and code required
----------------------
by a program to perform a function; how fast the software can run the
application with available resources such as memory, processor, disk etc. ----------------------
We know that processing speed of the application can be increased to a
certain extent with the speed of processor and memory; however, efficient ----------------------
programs will give equal speed with the available resources.
----------------------
d. Integrity: It is the extent to which unauthorised access to software or data
can be prevented. ----------------------
e. Usability: It is the effort required for learning, operating, preparing ----------------------
input and interpreting output of a program. The higher the usability of
the software, lesser is the operational complexity. This factor has more ----------------------
concern with the end user than the technical person who is developing the ----------------------
software.
f. Maintainability: It is the effort required for locating and fixing an error ----------------------
in an operational program. Maintainability is the immediate concern ----------------------
of the organisation that is developing software. Over the period, the
software undergoes changes due to change in business logic or changes in ----------------------
customer process or because the customer may need extra features. In all
cases, previously written program needs to be re-written. If the program ----------------------
is not properly written or not well documented, it becomes difficult for ----------------------
the same programmer or other programmers to remember the logic and
implement changes. Highly maintainable programs are well documented ----------------------
and structured.
----------------------
g. Testability: It is the effort required for testing a program to ensure that it
performs the intended function. ----------------------
h. Flexibility: It is the effort required for modifying an operational program. ----------------------
Tightly integrated modules restrict flexibility. To make changes in one
place, you have to make changes in many other places that are integrated ----------------------
with that process.
----------------------
i. Portability: It is the effort required for transferring a program from one
hardware configuration and/or software system environment to another. ----------------------
j. Reusability: It is the extent to which a program can be used in other ----------------------
applications related to the packaging and scope of the functions that
program performs. For example, customer class is required in most of the ----------------------
transactions. Your program should allow you to reuse the same code in ----------------------
other modules.
k. Interoperability: It is the effort required to couple one system with ----------------------
another. ----------------------

Notes After studying the quality factors, we also need to understand what software
quality means.
----------------------
According to Pressman, software quality is defined as, “Conformance
---------------------- to explicitly stated functional and performance requirements, explicitly
documented development standards, and implicit characteristics that are
---------------------- expected of all professionally developed software.”
----------------------
----------------------

1. Customer’s perspective on quality means meeting requirements that
---------------------- define the product.
---------------------- 1. Which of the following are the key principles of quality?
i. Management is responsible for quality.
----------------------
ii. Developers are responsible for quality.
----------------------
iii. Gold plating is essential.
---------------------- iv. Producers must use effective quality control.
---------------------- v. Quality is a destination, not a journey.
---------------------- vi. Quality is a journey, not a destination.
----------------------
i. Integrity a. It is the effort required for modifying an
---------------------- operational program.
---------------------- ii. Usability b. It is the effort required to couple one system
with another.
---------------------- iii. Flexibility c. It is the effort required for learning, operating,
---------------------- preparing input and interpreting output of a
program.
---------------------- iv. Reusability d. It is the extent to which unauthorised access
to software or data can be prevented.
----------------------
v. Interoperability e. It is the extent to which a program can be
---------------------- used in other applications.
----------------------
Activity 1
----------------------
---------------------- List the quality factors that you will assess for a search engine.
----------------------
----------------------

6.3 QUALITY PLANNING Notes
Quality planning is an essential process in quality management. Quality ----------------------
planning process ensures that the resulting product is of acceptable quality.
Without proper plan, you cannot establish control and measure the progress of ----------------------
the project. Quality planning gives clear direction to the project and you will
----------------------
have more visibility towards your objective.
Planning is a process that addresses two questions: What is quality objective of ----------------------
the project? And how am I going to achieve that objective? For example, one ----------------------
of your quality objective could be ‘all source code should be maintainable’. To
maintain the source code, you need to perform various activities such as detailed ----------------------
specification about how you can maintain source code. Here, you can ask your
team to use standard source code template and use standard program structure ----------------------
such as convention for writing variables, comments etc. Designing standards ----------------------
template, conducting source code reviews, checking whether program written
by one team could be modifiable by other team etc. can be decided in quality ----------------------
planning.
----------------------
Now when should you perform the quality planning process? To answer the
questions, you need to know what information you require to perform quality ----------------------
planning. Most important information that you need to define quality plan is
the requirement specification, customer’s quality expectations, quality policy ----------------------
of your organisation etc. You can get customer’s functional as well as quality ----------------------
requirements, acceptance criteria etc. in the project preliminary scope statement.
Hence, the quality planning process generally starts after requirement gathering ----------------------
phase and before execution.
----------------------
We just discussed about creating a standard template. Let us now understand
what standards are. ----------------------
Standards are basically guidelines or procedures. By applying the standards, ----------------------
we can assure that quality can be achieved. These standards do not provide
you what should be quality of your project. However, standards provide you ----------------------
how to standardise the process so that you can achieve desired quality. You
----------------------
can adopt standards such as ISO or develop your own organisational standards.
For example, you can set standards like following standard templates for ----------------------
documenting the project, number of defect per line of code and well-defined
change management process. Once the standards have been identified or ----------------------
created, you must define how you will meet those standards. You can write the
----------------------
detailed procedure to maintain the standard. You can provide templates along
with the description of how to use those templates. ----------------------
A lot of information is generated during the quality planning process, which in
----------------------
turn generates various output documents. Let us have a look at these.
Outputs of Quality Planning ----------------------
Following information will be generated as the output of quality planning: ----------------------
----------------------

Notes • Quality Management Plan (QMP): QMP describes how the project
management team will implement the quality policy defined in planning
---------------------- process. As per organisation and project needs, a broad plan will be
defined.
----------------------
• Quality Metric: Quality metrics specifically define how quality will be
---------------------- measured. For example, instead of just saying that system should give
quick response to end user queries, quality metric might specify that a
----------------------
system must respond within two seconds to 99% of all requests up to 100
---------------------- concurrent users.
• Quality Checklist: A checklist is a quality planning output created to
----------------------
ensure that all steps were performed in proper sequence and no step was
---------------------- skipped. In a quality plan, only checklists are defined; however, actual
processes are checked in quality control process.
----------------------
• Quality Baseline: The quality baseline includes the quality objectives
---------------------- and plan for achieving those objectives.
---------------------- Let us discuss various tools and techniques that you can use in the quality
planning process:
---------------------- 1. Cost-Benefit Analysis
---------------------- Cost-benefit analysis can be used to decide the norms of the quality. Quality
never comes free; you need to pay extra cost for achieving the quality. The cost
---------------------- applied to achieve quality should be less than benefits of quality. For example,
---------------------- the ideal products provide a benefit of say thousand dollars per month and to
achieve the quality, you need to spend extra 10000 dollars. Here, the cost of
---------------------- quality is more than benefits of quality. Such comparison needs to be done in
quality planning process.
----------------------
2. Benchmarking
----------------------
Benchmarking can be used to generate ideas for quality improvement by
---------------------- comparing specific project practices or project characteristics to those of other
projects or products within or outside the performing organisation.
----------------------
Benchmarking is the process of comparing the business processes and
---------------------- performance metrics, including cost, cycle time, productivity or quality, to another
business process that is widely considered an industry standard benchmark or
---------------------- best practice. Benchmarking provides a snapshot of the performance of your
---------------------- business and helps you understand where you are in relation to a particular
standard. It is most used to measure performance using a specific indicator(cost
---------------------- per unit of measure, productivity per unit of measure, cycle time of x per unit
of measure or defects per unit of measure) resulting in a metric of performance
---------------------- that is then compared to others.
---------------------- Over the years, many organisations with significant development experience
and mature processes have collected metrics on the various software
---------------------- development projects. These include the time and effort required to develop
---------------------- applications on various platforms and in various business domains. Based on

this data, benchmarks are created. There is no single methodology available for Notes
benchmarking. The wide appeal and acceptance of benchmarking has led to the
emergence of various benchmarking methodologies. ----------------------
Usually, following benchmarking processes are followed: ----------------------
a. Select the parameters for benchmarking. For example, number of defects
----------------------
per thousand lines of code.
b. Identify partners or projects with whom you want to compare your ----------------------
standards.
----------------------
c. Get the data relevant to the parameters.
----------------------
d. Communicate new benchmarking goals with team.
e. Review and adjust. ----------------------
f. Implement new standards in your organisation. ----------------------

3. Design of Experiments ----------------------
Design of experiment is a statistical method that helps in identifying factors ----------------------
that influence specific variables of a product or process under development. The
most important aspect of this technique is that it provides statistical framework ----------------------
for systematically changing all of the important factors instead of changing the
factors one at a time. ----------------------
----------------------
----------------------
1. _________ process ensures that the resulting product is of acceptable
----------------------
quality.
2. __________ are basically guidelines or procedures. ----------------------
Multiple Choice Single Response ----------------------
1.
Which of the following techniques compares project practices/ ----------------------
characteristics to those of other projects or products within or outside
the performing organisation? ----------------------
i. Cost Benefit analysis
----------------------
ii. Benchmarking
iii. Design of experiments ----------------------
iv. Quality metrics ----------------------
----------------------
Activity 2
----------------------
As a Quality Assurance manager, what are the various steps you will take ----------------------
to prepare an effective quality plan?
----------------------

Notes 6.4 QUALITY ASSURANCE AND QUALITY CONTROL
---------------------- We have seen that quality plan defines how each process in the software
development life cycle is executed, what standards are to be applied to the
---------------------- process etc. We will now discuss what quality assurance and quality control is.
---------------------- Let us begin with an example. You may decide that requirement gathering
team should follow the standard template for collecting requirement in proper
---------------------- format, coding team should follow the standard programming template where
---------------------- variable declaration and naming standards etc. are mentioned. These and other
standards are defined in the quality plan. However, in reality, one needs to see
---------------------- whether these standards are giving desired quality results; if not, there is need
for process improvement.
----------------------
Only planning is not sufficient to ensure that the project under development will
---------------------- achieve desired quality. There is need to check whether the team is following
standards. Many a times, it so happens that the team may not properly understand
---------------------- how to use those templates. It involves taking responsibility for quality during
---------------------- the project as well as at the end of the project.
----------------------
Quality Assurance (QA) ensures that defined standards are being followed.
---------------------- Sometimes, processes need to be revised. Thus, quality assurance is a continuous
process executed throughout the life cycle of the project. QA is an application
----------------------
of planned systematic quality activities to ensure that the project will employ all
---------------------- process needed to meet the desired quality.
According to IEEE definition, Software quality assurance is “a planned and
----------------------
systematic pattern of all actions necessary to provide adequate confidence that
---------------------- an item or product conforms to established technical requirements”. Thus,
Quality Assurance consists of the following:
----------------------
1. A set of planned systematic activities that are essential to ensure that
---------------------- a component, module or system conforms to established technical
requirements.
----------------------
2. All actions that are taken to ensure that the development organisation
---------------------- delivers project / products that meet performance requirements and adhere
to standards and procedures.
----------------------
3. The policy, procedures and systematic actions established in an
---------------------- organisation for providing and maintaining some degree of confidence in
data integrity and accuracy throughout the life cycle of the data.
----------------------
4. The actions, planned and performed, to provide confidence that all systems
---------------------- and components that influence the quality of the product are working as
expected individually and collectively.
----------------------
Quality assurance performs quality audits and process analysis techniques to
---------------------- ensure quality.
----------------------

• Quality Audit: Quality audit is the process of conducting structured and Notes
independent technical reviews. Review is a way of using the diversity
of a group of people to point out needed improvements in the product ----------------------
of a single person or team. Confirm those parts of products in which
improvement is either not desired or not needed. Many different types of ----------------------
reviews can be conducted, for example, an informal meeting with your ----------------------
team members to discuss technical problems. A formal presentation of
software design to an audience of customers, management and technical ----------------------
staff is also a form of review. Formal review is sometimes also called as
Technical Walkthrough. ----------------------
• Process Analysis: Process analysis is a part of continuous process ----------------------

improvement. In this process, each process is analysed as per the process
----------------------
improvement plan and suggestions are given for further improvement.
This analysis also examines the problems experienced. Process analysis ----------------------
uses root cause analysis technique to determine the underlying cause that
leads to poor quality. ----------------------
6.4.2 Quality Control (QC) ----------------------
We know that quality deteriorates due to variation. Controlling variation is
----------------------
the main objective of quality control. Thus, quality control is the series of
inspections, reviews and tests. These activities are performed throughout the ----------------------
life cycle of the project. For example, during project planning, quality control
might measure how long it takes to plan the project or measure other areas ----------------------
of planning performance. However, much of the quality control occurs at the
----------------------
time of monitoring during execution. Quality control includes a feedback loop
to the process that created the work product. The feedback loop is essential to ----------------------
minimise the defect produced.
----------------------
During quality control, all actual specifications are measured against standard
specification through inspection. Quality control activities may be fully ----------------------
automated, entirely manual or a combination of automated tools and human
interaction. ----------------------
A QC system is designed for the following: ----------------------
• To provide regular check to ensure data correctness, completeness and ----------------------
integrity.
----------------------
• To distinguish the errors and to address them.
• To document and record all the quality control processes. ----------------------
The Quality Control Processes use various tools to study the work completion. ----------------------
If the work completion is found unsatisfactory, it may be sent back to the
development team for fixes. Changes to the development process may be done ----------------------
if necessary. If the work completed meets the standards defined, then the work
----------------------
completion is accepted and released to the clients.
----------------------
----------------------

Notes 6.4.3 Difference between Quality Assurance and Quality Control
Quality Assurance is an activity that establishes and evaluates the processes that
----------------------
produce the products. Quality Control is an activity that verifies whether the
---------------------- product produced meets the standards.
Let us see a few differentiating points between QA and QC.
----------------------
Table 6.1: Difference between QA and QC
----------------------
Quality Assurance Quality Control
---------------------- i. Relates to establishing i. Relates to a specific product or
processes service
---------------------- ii. Sets up measurement programs ii. Verifies whether particular
---------------------- to evaluate processes attributes exist or do not exist in a
specific product or service
---------------------- iii. Identifies weaknesses in iii. Identifies defects for the primary
processes and improves them purpose of correcting defects
---------------------- iv. Is a management iv. Is the responsibility of the
responsibility, frequently developer
----------------------
performed by a staff function
----------------------
----------------------
---------------------- 1. Quality Control system is designed for which of the following?

i.
To provide regular check to ensure the data correctness,
----------------------
completeness and integrity
---------------------- ii. To perform quality audits and process analysis to ensure quality
---------------------- iii. To distinguish the errors and to address them
---------------------- iv. To document and record all the quality assurance processes
Fill in the blanks.
----------------------
1. _________________ is a part of continuous process improvement.
----------------------
---------------------- 1. Quality assurance relates to a specific product or service.
---------------------- 2. Quality control identifies defects for the primary purpose of correcting
defects.
----------------------
3. Quality assurance is a management responsibility.
----------------------
---------------------- Activity 3
----------------------
Using internet, find out various quality control techniques used in the IT
---------------------- industry to minimise the defects and ensure that the project is free of defects.

6.5 COST OF QUALITY Notes
A customer is never ready to pay extra cost for high quality and it is the ----------------------
responsibility of the project manager and his team to manage the project in the
given budget and deliver high quality. During the project, you need to balance ----------------------
the additional cost of quality. Initially, quality was considered an integral
----------------------
responsibility of the development team. No additional activities were carried
out for maintaining quality. Due to lack of quality procedures, the project cost ----------------------
considerably increased for removing the defects in later stages. Over the period,
software industry realised that there is a need to maintain separate quality ----------------------
activities to ensure quality and minimise defects. Quality helps in increasing
----------------------
customer satisfaction as well as reducing cost of project owing to less rework.
Thus, Cost of Quality is a term used to quantify the total cost of prevention and ----------------------
appraisal and costs associated with the production of software. ----------------------
Cost of quality is defined as, “Cost of Quality = Cost of Prevention + Cost of
Appraisal + Cost of Failure”. ----------------------
Additional quality activities such as quality training, technical reviews etc. ----------------------
need more resources that lead to additional cost burden on the project. Hence,
----------------------
it becomes important to know the cost of quality. Cost of quality is broadly
divided into two types - Cost of conformance and Cost of non-conformance. ----------------------
Cost of conformance: In order to meet the quality standard, additional
1.
----------------------
activities need to be carried out, e.g. quality training, quality planning,
conducting formal technical reviews, maintaining documentation. These ----------------------
activities need extra resources and incur cost; that cost is called cost of
conformance. These costs primarily go to preventing defects that can be ----------------------
found in later stages of projects. This preventive cost may reduce your
----------------------
cost of reworks and repairs in later stages.
Cost of Non-conformance: This is sometimes also called failure cost.
2. ----------------------
That means if we are not able to prevent defects, we have to pay extra
----------------------
cost on fixing the defects. This cost is further divided into two parts as
internal failure cost and external failure cost. Internal failure costs are ----------------------
incurred when we detect an error in our product prior to shipment; such
cost includes cost of rework and repair. External failure costs are the costs ----------------------
associated with defects found after the product has been shipped to the
----------------------
customer. Examples of external failure costs are complaint resolution,
product return and replacement, support etc. ----------------------
Based on the data collected by Boehm, he observed that the relative cost to find ----------------------
and repair a defect increases dramatically as we go from prevention to detection
and from internal failure to external failure. As a rule, we must know that the ----------------------
cost of conformance should be less than cost of non-conformance. We cannot
afford to pay 1000 dollars to prevent a defect of 100 dollars. ----------------------
----------------------
----------------------

Notes
----------------------

1. Cost of Non-conformance is sometimes also called failure cost.
----------------------
----------------------
1. The definition of cost of quality consists of which of the following
---------------------- costs?
---------------------- i. Cost of prevention

ii. Cost of appraisal
----------------------
iii. Cost of defect
----------------------
iv. Cost of rework
---------------------- v. Cost of failure
----------------------
----------------------
Activity 4
---------------------- Prepare a report on cost of quality for a web-based sales system.

----------------------
---------------------- 6.6 QUALITY MANAGEMENT TOOLS

---------------------- There are seven basic quality management tools that you can use in your project
to control the quality. We will now discuss these in brief.
----------------------
1. Cause and Effect Diagram
----------------------
Cause and effect diagrams were proposed by Kaoru Ishikawa in the 1960s. He
---------------------- pioneered quality management process in the Kawasaki shipyards and in the
process, became one of the founding fathers of modern quality management.
---------------------- Due to his work, these diagrams are also known as Ishikawa diagrams. They
are also known as fishbone diagrams because of their fishbone-like shape.
----------------------
These diagrams show how different factors relate and might be tied to potential
---------------------- problems. In quality control, cause and effect diagrams are used as a part of
an approach to improve quality by identifying quality problems and trying to
---------------------- uncover the underlying causes.
---------------------- Following diagram illustrates how a fishbone diagram helps in identifying
potential defects in system installation.
----------------------
----------------------
----------------------
----------------------

Conflicting System Software Notes
OS Compatibility ----------------------
Legacy System
Installation Method ----------------------
----------------------
HW Installation
----------------------
SW Installation Less Primary & Secondary Memory
----------------------
Lack of Training Hardware
----------------------
Fig 6.1: Example of Cause and Effect Diagram ----------------------
Some of the root causes that make software installation fail are conflicting
systems (for example, your new software does not establish connectivity with ----------------------
existing legacy system due to data incompatibility), lack of training causing ----------------------
incorrect hardware and software installation and the new version of the
application software not being supported by existing operating system. Also ----------------------
due to insufficient memory and hard disk capacity, new system may not be
installed. ----------------------
Once you identify the root cause/s, you can easily remove it. Pictorial ----------------------
representation will help the team in organising thoughts and help in stimulating
thinking; further, such a representation can be understood by everyone during ----------------------
discussion. ----------------------
2. Control Charts
----------------------
Control charts are mainly used in statistical quality control. This chart helps
in deciding whether the process needs to be controlled. If the process is in the ----------------------
statistical limit, then it need not be corrected. Control charts depict whether the
----------------------
process is in the limit or out of control. In this technique, sample data is taken
and plotted on the graph as shown in this figure. ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig 6.2: Sample Data plotted on the Graph ----------------------

Notes Let us quickly look at the different parts of the diagram.
• Upper and lower control limits: These limits indicate the acceptable
----------------------
range of variation of process. These limits are generally shown in dotted
---------------------- lines on a control chart. The acceptable range of measurement between
upper and lower control limit is usually set by the project manager or
---------------------- the stakeholders based on the organisation quality standards. Data
points within this range indicate that the quality is within control. Data
----------------------
range outside this range means process is out of control and needs to be
---------------------- corrected.
• Mean: The middle bold line in control chart indicates mean. Mean
----------------------
indicates acceptable range of variation.
---------------------- • Specification limits: Every organisation has their own standards that
define the limits of quality variation. However, sometimes customers also
----------------------
explicitly mention defect tolerance limits; for example, a customer may
---------------------- mention that only two minor errors are allowed per module. As these
limits are provided by the customer, they may appear inside or outside the
---------------------- upper and lower limits that your organisation has set for the project.
---------------------- • Out of control: The basic purpose of the control chart is to understand
which process is out of control and this can be analysed from the control
---------------------- chart. In two types of circumstances, process is said to be out of control
---------------------- when all data points fall outside the upper and lower control limit.
Rule of seven: The rule of seven is a rule of thumb or heuristic. If seven non-
---------------------- random data points appear in series on one side of mean, then the process may
---------------------- be out of control since.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
---------------------- Fig 6.3 : Rule of Seven
---------------------- Above figure shows total seven points appearing in series. These points are not
random and though they appear within upper control limit, still the process may
---------------------- be out of control and need to be corrected from deviation.
----------------------

3. Flow-charting Notes
While planning quality, you need to know what the processes are, how they are
----------------------
interlinked with each other and what the inputs and outputs of the process are.
All this information can be pictorially shown by using flow-charting. A flow ----------------------
chart graphically represents a process. Flow-charting technique can be used in
many places in software development. With this, you show the logical flow of ----------------------
the system. With proper flow chart, we can determine where potential quality
----------------------
defect may appear.
4. Histogram ----------------------
Histogram is another statistical tool used in quality control. It shows data such ----------------------
as number of severe defects, minor defects in bar charts. Each bar represents
an attribute or characteristic of a problem or situation. The height of a bar ----------------------
represents the relative frequency of the characteristics. Based on height and
----------------------
width of the bar, we can identify root causes of the problem. When measuring
a process, it often occurs that the measurements vary within a range of values. ----------------------
By understanding how these measurements vary, the effects of the process and
changes made to it can be better understood. ----------------------
The Histogram shows the frequency distribution across a set of measurements ----------------------
as a set of physical bars. The width of each bar is constant and represents a
fixed range of measurements (called a cell, bin or class). The height of each ----------------------
bar is proportional to the number of measurements within that cell. Each bar ----------------------
gives a visual impression of the number of measurements in it and together
the bars show the distribution across the measurement range. The figure below ----------------------
shows how the distribution of measurements can be seen far more clearly in the
Histogram than in a table of numbers. ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig. 6.4: Distribution of Measurements seen in a Histogram
----------------------
In drawing the Histogram, there must be sufficient number of measurements
to be able to give a usable shape to the distribution. The number and width ----------------------
of the bars are also important; if the bars are too narrow, then insufficient
measurements will fall into each bar to give it significant height. Similarly, if ----------------------

Notes the bars are too wide, there will be too few bars to give a useful shape to the
distribution.
----------------------
Problems may be indicated by the distribution being naturally non-bell-shaped
---------------------- or by problems with the measurement. When a distribution differs from the
expected shape, the underlying process should be examined to find real causes
---------------------- of this.
---------------------- 5. Pareto Chart
Vilfredo Pareto developed the Pareto chart to analyse the problem. This chart
----------------------
is similar to the histogram; additionally, it contains line graphs. The bars
---------------------- display the values in descending order from left to right and the line graph
shows the cumulative total of each category. The left vertical axis represents
---------------------- the frequency of occurrences and right vertical axis represents the cumulative
total of occurrences.
----------------------
The Pareto diagrams are conceptually related to Pareto’s Law, which holds
---------------------- that a relatively small number of causes will typically produce a large majority
---------------------- of defects or problems. This is also referred as the 80/20 principle, where 80
percent of the problems are due to 20 percent of the causes.
---------------------- Given a set of recurring problems, it is unlikely that each problem will occur
---------------------- the same number of times in any one period. In fact, it is common that a few
problems will occur far more often than the rest put together. This unequal
---------------------- distribution occurs in many situations and can be used to single out the ‘vital
few’ from the ‘trivial many’.
----------------------
The following diagram shows a typical Pareto chart. The Pareto Chart is simply
---------------------- a Bar Chart in which the bars are sorted into size order, with the highest bar on
the left, as shown below.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig. 6.5: Pareto Chart
----------------------
This not only shows the absolute priority of each bar, through its position in
---------------------- the chart, but also its relative priority, through its height as compared with the
other bars.
----------------------
As the Pareto chart is often used for decision-making, it is an important part
---------------------- of building a Pareto chart to identify the right item to measure and show on
the chart, as different measures may well result in the bars to be ordered quite
----------------------

differently. The purpose of the Pareto chart is to highlight the most important Notes
among a (typically large) set of factors. In quality control, it often represents
the most common sources of defects, the highest occurring type of defect or the ----------------------
most frequent reasons for customer complaints and so on.
----------------------
In a stable process, the order of the bars may be expected to remain constant.
Thus, if the order of the bars changes with successive measurements, this may ----------------------
indicate an unstable process (or an insufficient number of measurements).
----------------------
Improvements (i.e. changes in the process) will often result in the order of
the bars changing. If the improvements are maintained, the new bar order will ----------------------
remain stable.
----------------------
Pareto Charts may have different overall ‘shapes’. The ‘spiky’ Pareto Chart is
the most useful, as it enables an easy selection of items to carry forward for ----------------------
further action.
----------------------
6. Run Chart
A run chart, also known as a run-sequence plot is a graph that displays observed ----------------------
data in a time sequence. Often, the data displayed represent some aspect of the ----------------------
output or performance of a manufacturing or other business process.
If you want to look at the history and pattern of variation, you can use run chart. ----------------------
A run chart is a line graph that shows data points plotted in the order in which ----------------------
they occur. Over time, a process undergoes some changes, some processes are
further improved and some need to be improved. These trends can be shown ----------------------
and analysed with the help of a run chart. Trend analysis involves mathematical
treatment to data to forecast future outcomes based on historical results. Trend ----------------------
analysis can be used to monitor the cost, schedule and technical performance. ----------------------
7. Scatter diagram
----------------------
When investigating problems, typically when searching for their causes, it may
be suspected that two items are related in some way. For example, it may be ----------------------
suspected that the number of defects in software is related to the amount of
----------------------
overtime that people are working.
The Scatter Diagram helps to identify the existence of a measurable relationship ----------------------
between two such items by measuring them in pairs and plotting them on a
----------------------
graph, as below. This visually shows the correlation between the two sets of
measurements. ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
---------------------- Fig. 6.6: Scatter Diagram

---------------------- If the points plotted on the Scatter Diagram are randomly scattered, with no
discernible pattern, then this indicates that the two sets of measurements have
----------------------
no correlation and cannot be said to be related in any way. If, however, the
---------------------- points form a pattern of some kind, then this shows the type of relationship
between the two measurement sets.
----------------------
A Scatter Diagram shows correlation between two items for three reasons:
---------------------- a. There is a cause and effect relationship between the two measured items,
where one is causing the other (at least in part).
----------------------
b. The two measured items are both caused by a third item. For example,
---------------------- a Scatter Diagram, which shows a correlation between requirements
---------------------- and coding of software because changes in both are caused by how each
process is documented.
---------------------- c. Complete coincidence. It is possible to find high correlation of unrelated
---------------------- items, such as the change in requirements and new technology adopted.
Note: Scatter Diagrams may be used to give evidence for a cause and effect
---------------------- relationship, but they alone do not prove it. Usually, it also requires a good
---------------------- understanding of the system being measured, and may require additional
experiments. ‘Cause’ and ‘effect’ are thus used to indicate that although they
---------------------- may be suspected of having this relationship, it is not certain.
---------------------- When evaluating a Scatter Diagram, both the degree and type of correlation
should be considered.
----------------------
●● The proximity of the cause and effect: There is better chance of a high
---------------------- correlation if the cause is directly connected to the effect than if it is at
the end of a chain of causes. Thus, a root cause may not have a clear
---------------------- relationship with the end effect.
---------------------- ●● Multiple causes of the effect: When measuring one cause, other causes
are making the effect vary in an unrelated way. Other causes may also
---------------------- be having a greater effect, swamping the actual effect of the cause in
question.
----------------------

●● Natural variation in the system: The effect may not react in the same Notes
way each time, even to a close major cause.
----------------------
----------------------

1. Who amongst the following proposed the cause and effect diagrams? ----------------------
i. Barry Bohem
----------------------
ii. Kaoru Ishikawa
----------------------
iii. Vilfredo Pareto
----------------------
iv. Edwards Deming
1. The rule of seven is a rule of thumb or _________________. ----------------------
----------------------
Activity 5
----------------------
Identify a friend or colleague or an acquaintance who works in an IT ----------------------

company as a Quality Assurance Manager and discuss with him/her the
----------------------
use of various quality management tools.
----------------------
6.7 INDUSTRY QUALITY STANDARDS/ MODELS ----------------------
The quality movement began in 1940; since then various theories have ----------------------
continuously evolved. The major contribution of quality movement belongs to
quality theorists, namely Joseph Juran, W. Edwards Deming and Philip Crossby. ----------------------
Various quality standards and models help in defining the basic task an ----------------------
organisation must do in order to join the quality ladder. Knowing these standards
is essential; however, the organisation quality policy decides which standard has ----------------------
to be adopted. These standards are available for specific areas such as Process
----------------------
Standard, Safety standard, Quality Assurance Standards etc.
Let us understand some of the basic popular standards: ----------------------
1.
Software Engineering Institute Capability Maturity Model ----------------------
Integration (CMMI)
----------------------
The CMMI is a framework developed by Software Engineering Institute (SEI)
at Carnegie Mellon University. The framework is based on the best practices in ----------------------
software and other organisations. It reflects the collective process experience of
many companies. CMMI is used to evaluate the software processes and identify ----------------------
deficiencies. The CMMI framework provides five levels of the process as per ----------------------
the level of maturity. These five levels are:
----------------------

Notes 1. Initial
2. Repeatable
----------------------
3. Defined
----------------------
4. Managed
---------------------- 5. Optimising
---------------------- Continuously 5. Optimising
Improving Focus on process
Process improvement
----------------------
4. Managed
---------------------- Predictable
Process measured and
Process
controlled
---------------------- Standard 3. Defined
Consistent
Process Process characterized,
---------------------- fairly well understood
2. Repeatable
---------------------- Disciplined
Can repeat previously
Process mastered tasks
---------------------- 1. Initial
Unpredictable and poorly
---------------------- controlled
---------------------- Figure 6.7: Capability Maturity Model Integration

---------------------- In the initial stage, processes are immature or ad hoc, meaning these processes
are not clearly defined and outcome of these processes largely depends on the
---------------------- capability of the team and project leader. From level 2 to 5, processes are more
---------------------- refined and as we go up one scale, processes become more matured. In mature
processes, each process is well defined and outcome of the process does not
---------------------- depend on the team but on the process. The more mature the process, the more
quality we can expect. Let us study each of these levels.
----------------------
Level 1: Initial
----------------------
At this level, the organisation does not provide a stable environment for
---------------------- developing and
maintaining the software. The process capability at Level 1 is considered ad
----------------------
hoc because the software development process constantly changes as the work
---------------------- progresses. Schedules, budgets, functionality and product quality are generally
unpredictable.
----------------------
Level 2: Repeatable
---------------------- At Level 2, organisations have installed basic management controls. The
---------------------- capability of Level 2 organisations is summarised as disciplined, because the
ability to successfully repeat planning and tracking of earlier projects results
---------------------- in stability. For organisations to be certified at Level 2, they must document
(define), practice, enforce, train, measure and improve the following six key
---------------------- process areas:
----------------------

a. Requirements Management Notes
b. Software Project Planning
----------------------
c. Software Project Tracking
----------------------
d. Software Subcontract Management
e. Software Quality Assurance ----------------------
f. Software Configuration Management ----------------------

Level 3: Defined ----------------------
The standard engineering and management processes for developing and
----------------------
maintaining software across an organisation are documented and these processes
are integrated as a whole. The capability of Level 3 organisations is summarised ----------------------
as standard and consistent because engineering and management activities are
stable and repeatable. Product lines, cost, schedule and functionality are under ----------------------
control and quality is tracked. Process definition and deployment focus on the
----------------------
following key process areas:
a. Organisation Process Focus ----------------------
b. Organisation Process Definition ----------------------
c. Training ----------------------
d. Integrated Software Management
----------------------
e. Software Product Engineering
----------------------
f. Inter-group Coordination
g. Peer Reviews ----------------------
Level 4: Managed ----------------------
At Level 4, the organisation sets quantitative quality goals for both software ----------------------
products and processes. The capability of Level 4 organisations is summarised
as predictable because the process is measured and operates within measurable ----------------------
limits. Quantitative Process Management and Software Quality Management
are the two key process areas of Level 4. ----------------------
Level 5: Optimising ----------------------

At Level 5, the entire organisation is focused on continuous process improvement. ----------------------
The capability of Level 5 organisations is characterised as continuously
improving, because projects strive to improve the process capability and process ----------------------
performance. The key process areas of Level 5 are:
----------------------
a. Defect Prevention
----------------------
b. Technology Change Management
c. Process Change Management ----------------------
----------------------
----------------------

Notes 2. ISO 9000
The International Organization for Standardization (ISO) developed the family
----------------------
of standards for software. The family of ISO 9000 includes standards such as
---------------------- ISO 9001, 9002 and 9003. These standards are continuously being evolved and
applicable to various disciplines.
----------------------
ISO provides only framework and every organisation has to prepare various
---------------------- documents as per the guidelines of the selected standard. An organisation needs
to apply for the certification. Once applied, third party auditors scrutinise the
---------------------- company’s quality system and operations for compliance to the standards. Upon
successful completion of scrutiny, registration body represented by auditors can
----------------------
issue certificate to the performing organisation.
---------------------- ISO 9000 quality assurance model emphasises the network of interconnected
processes such as requirement gathering, design, coding and testing. For a
----------------------
quality system to be ISO- compliant, each process must be well documented
---------------------- and followed as described. Process documentation helps an organisation in
many ways such as improved understanding and control. Well-defined processes
---------------------- make the process person independent. ISO enables a consensus to be reached
on solutions that meet both the requirements of business and the broader needs
----------------------
of society.
---------------------- The ISO 9000 framework describes quality assurance elements, which includes
---------------------- organisational structure, procedures, processes and resources needed to
implement quality planning, quality assurance and quality control.
---------------------- Some of the elements covered in ISO 9000-3 are management responsibility,
---------------------- quality system, design control, document and data control, process control,
inspection and testing, corrective and preventive action, control of quality
---------------------- records, internal quality audits, training and statistical techniques.
---------------------- To become registered to ISO 9000 organisation, a company must establish

policies and procedures to address each of the requirements stated in the above
---------------------- paragraph and then be able to demonstrate that the policies and procedures are
being followed.
----------------------
3. Six Sigma
----------------------
Six Sigma is a methodology of quality management. Motorola developed a
---------------------- concept called “Six Sigma Quality” that focuses on defect rates, as opposed
to percent performed correctly. Six Sigma derived its name from the statistical
---------------------- term ‘standard deviation’ and is denoted by letter ó sigma (A Greek notation)
that defines the degree of variance. Six Sigma focuses on achieving high levels
----------------------
of quality by controlling the process and reducing defects. Now let us quickly
---------------------- recall the term standard deviation.
Standard Deviation (SD) is a statistical calculation used to measure and describe
----------------------
how data is organised. The following figure illustrates the bell-shaped standard
---------------------- deviation.
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig. 6.8: Bell-shaped Standard Deviation
----------------------
To calculate SD, mean is first calculated by averaging all data points. Then
difference is calculated between each data point and mean. Then each difference ----------------------
is squared and total sum of squares of all differences are calculated and divided
----------------------
by number of data points minus one. Finally, this number’s square root is taken
and you will get the standard deviation. ----------------------
We know from our previous discussion that quality deteriorates due to ----------------------
variation. Hence, Six Sigma puts a primary focus on quantifying, measuring
and controlling quality of the product. There are six levels defined in Six Sigma ----------------------
methodology. At the Six Sigma statistical level, only 3.4 items per million are
outside of the acceptable level. Thus, the Six Sigma quality level means that out ----------------------
of every one million items counted, 999,996.6 will be correct and not more than ----------------------
3.4 will be defective. Hence, Six Sigma ensures the highest quality.
----------------------
----------------------

1. Who amongst the following are quality pioneers? ----------------------
i. Joseph Juran
----------------------
ii. Barry Bohem
----------------------
iii. W. Edwards Deming
iv. Philip Crossby ----------------------
----------------------
----------------------

Notes
Activity 6
----------------------
---------------------- 1. With the help of the internet, find out Software companies certified
at level 5, 4 and 3.
----------------------
2. Using the internet, find out the list of ISO certified software
---------------------- companies.
---------------------- 3. Study the IEEE standard used for software documentation.
----------------------
Summary
----------------------
●● Quality has utmost importance in software industry. The main objective
---------------------- of software quality management is to reduce the number of defects and
---------------------- increase customer satisfaction.
●● Software quality factors can be measured directly as well as indirectly. These
---------------------- are correctness, reliability, efficiency, integrity, usability, maintainability,
---------------------- testability, flexibility, portability, reusability and interoperability.
●● Tools and techniques such as cost benefit analysis, benchmarking and
---------------------- design of experiments are used in the quality planning process.
---------------------- ●● Quality assurance is an umbrella activity that ensures that all processes
being executed follow the norms defined in quality plan and adhere to the
---------------------- standards. Quality needs to be monitored and controlled throughout the
software development life cycle.
----------------------
●● Quality Assurance is an activity that establishes and evaluates the
---------------------- processes that produce the products. Quality Control is an activity that
verifies whether the product produced meets standards.
----------------------
●● Cost of quality is defined as “Cost of Quality = Cost of Prevention + Cost
---------------------- of Appraisal + Cost of Failure”.
---------------------- ●● Cost of quality is broadly divided into two types - Cost of conformance
and Cost of non-conformance.
---------------------- ●● Some of the quality management tools such as Cause Effect Diagram,
---------------------- Control Charts, Flow-charting, Histogram, Pareto Chart, Run Chart and
Scatter Diagram can be used to control quality.
---------------------- ●● Capability maturity model integration consists of five levels – initial,
---------------------- repeatable, defined, managed and optimising.
●● Software organisations can use standards such as CMMI, ISO and Six Sigma.
----------------------
●● Quality comes from continuous improvement, learning and by experience.
---------------------- Quality is the prime responsibility of the team and a customer expects
quality free of cost.
----------------------
----------------------

Keywords Notes
----------------------
●● Quality: It is defined as “conformance to requirements” or “fit for use”
●● Standards: These are basically guidelines or procedures. ----------------------
●● Quality Assurance: QA is an application of planned systematic quality ----------------------
activities to ensure that the project will employ all processes needed to
meet the desired quality. ----------------------
●● Quality Control: QC is an activity that verifies whether the product ----------------------
produced meets standards.
●● Cost of quality: COQ is defined as Cost of Quality = Cost of Prevention ----------------------
+ Cost of Appraisal + Cost of Failure. ----------------------
●● Cause and Effect Diagram: It shows how different factors relate together
and might be tied to potential problems. ----------------------
●● Pareto diagrams: This is also referred as the 80/20 principle, where 80 ----------------------
percent of the problems are due to 20 percent of the causes.
----------------------
●● CMMI: It is used to evaluate the software processes and identify
deficiencies. It consists of five levels – Initial, Repeatable, Defined, ----------------------
Managed and Optimising
----------------------
●● Six Sigma: It focuses on achieving high levels of quality by controlling
the process and reducing defects. ----------------------
----------------------
----------------------
1. Define quality. State and explain the quality factors.
2. Discuss the importance of quality planning. Explain the tools and ----------------------
techniques used in quality planning. ----------------------
3. What are QA and QC? Differentiate between QA and QC.
----------------------
4. What are the quality standards used in IT industry? Explain in brief.
----------------------
5. Explain the levels of CMMI in details.
6. Write Short notes on: ----------------------
a. Benchmarking ----------------------
b. Cost of Quality ----------------------
c. Cause effect diagram
----------------------
d. Pareto charts
----------------------
----------------------
----------------------
----------------------

Notes Answers to Check your Progress

1. False
----------------------
----------------------
---------------------- 1. Which of the following are the key principles of quality?
---------------------- i. Management is responsible for quality.
---------------------- iv. Producers must use effective quality control.

vi. Quality is a journey, not a destination.
----------------------
----------------------
i. -d
---------------------- ii. -c
---------------------- iii. -a
---------------------- iv. -e
v. -b
----------------------
----------------------
---------------------- Quality planning process ensures that the resulting product is of acceptable
1.
quality.
----------------------
2. Standards are basically guidelines or procedures.
----------------------
---------------------- Multiple Choice Single Response

---------------------- 1.
Which of the following techniques compares project practices/
characteristics to those of other projects or products within or outside the
---------------------- performing organisation?
---------------------- ii. Benchmarking
----------------------
----------------------
----------------------
----------------------
----------------------

----------------------
1. Quality Control system is designed for which of the following?
----------------------
i. To provide regular check to ensure the data correctness, completeness
and integrity ----------------------
iii. To distinguish the errors and to address them ----------------------
----------------------
Fill in the blanks.
----------------------
1. Process analysis is a part of continuous process improvement.
----------------------
1. False ----------------------
2. True
----------------------
3. False
----------------------

1. True ----------------------
----------------------
----------------------
1. The definition of cost of quality consists of which of the following costs?
i. Cost of prevention ----------------------
ii. Cost of appraisal ----------------------
v. Cost of failure ----------------------
----------------------
----------------------
1. Who amongst the following proposed the cause and effect diagrams? ----------------------
ii. Kaoru Ishikawa ----------------------
----------------------
----------------------
----------------------
----------------------

Notes Fill in the blanks.
1. The rule of seven is a rule of thumb or heuristic.
----------------------
----------------------
---------------------- 1. Who amongst the following are quality pioneers?
---------------------- i. Joseph Juran

iii. W. Edwards Deming
----------------------
iv. Philip Crossby
----------------------

---------------------- 1.
Godbole Nina S. 2004. Software Quality Assurance Principles and
Practice. New Delhi: Narosa Publishing House.
----------------------
2. Hughes, Bob & Mike Cotterell. Software Project Management. Tata
---------------------- McGraw Hill Publishing Company Limited.
---------------------- 3. Pressman, Roger. Software Engineering – A Practitioner’s Approach.
McGraw Hill Publication.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Managing Team
UNIT
7
Structure:
7.1 Introduction
7.2 Team
7.3 Building Team
7.4 Motivating Team
7.4.2 Herzberg’s Motivation-Hygiene Theory
7.4.4 The Equity Theory
7.5 Project Human Resource Planning
7.6 Team Structure
7.7 Managing Conflicts
7.8 Influencing
Summary
Key Words
Suggested Reading
Managing Team 151

Notes
Objectives
----------------------
----------------------
• Discuss the meanings of a team
---------------------- • Describe the process of team formation
---------------------- • Explain various motivation theories
• Elaborate on the importance of planning human resource in software
----------------------
projects
---------------------- • Define roles and responsibilities
---------------------- • Detail out various team structures
• Identify conflict resolution techniques
----------------------
• State the power of a project manager in influencing the team
----------------------
---------------------- 7.1 INTRODUCTION
---------------------- In this unit, we will discuss one of the important resources in software
development- human resource. The management of the human resources on a
---------------------- project has a major impact on the project’s success or failure. Human resources
are strongly influenced by the human resource policies and procedures of the
---------------------- performing organisation. Broadly, human resource management deals with
---------------------- recruiting, leading, communicating, delegating, motivating, team building,
appraising etc. Project team size varies with the project size and complexity.
----------------------
A large team needs careful application of right human resource development
---------------------- strategy. The needs of human resources in terms of set of their skills and
experience varies with stages of project life cycle. In the initial stage, less
---------------------- number of people is sufficient to carry out the task; however, as the project
progresses into execution, more team members are needed. Human resource
----------------------
management processes must recognise and address these changing needs.
---------------------- In this unit, we will discuss various behavioural and motivation theories such
as McGregor’s X & Y theory and Maslow’s hierarchy of needs. This unit also
----------------------
introduces how to build teams, how to motivate and achieve peak performance
---------------------- and how to resolve conflicts.
---------------------- 7.2 TEAM

----------------------
Meaning and importance of team is hidden in the word “TEAM” itself.
---------------------- ’T’ = ‘Togetherness’
---------------------- ‘E’ = ‘Each’
‘A’ = ‘Achieve’
----------------------
‘M’ = ‘More’.
---------------------- Thus, TEAM means Together Each Achieve More.

Software development is a team effort. If the team is highly motivated and Notes
properly coordinated, it gives high quality and productivity. Software Project
team includes project sponsors, project managers, programmers, architects, ----------------------
testing and quality personnel, documentation team, customer representatives
etc. Each team member plays a unique role in the software development process. ----------------------
Every human being is complex and unique in nature. Every individual possesses ----------------------
different skills, knowledge, experience and many other factors such as attitudes,
personality types, beliefs etc. Managing a team involves consideration of all ----------------------
aspects of human nature.
----------------------
Team development is a continuous process. To keep all team members together
is one of the main objectives of the project manager. As we know, every team ----------------------
member performs a different task; his involvement and performance may affect
----------------------
the performance of other team members. For example, if one of the programmer
delays his job, all other modules and processes that depend on his module get ----------------------
delayed. As a leader, the project manager has to compensate the weakness of such
a team member and keep the entire team on track. Without knowledge of team ----------------------
dynamics and various skills such as motivation, communication, negotiation,
----------------------
influence and conflict management, one cannot lead the team effectively. It is
therefore essential to understand the basics of teaming. ----------------------
----------------------
Great teams are built upon the four strong pillars of Mutual Trust, Honesty,
Transparency and Coordination. If anything is missing, no one can build a ----------------------
proper team.
----------------------
Trust: Trust is the most important factor in team development. For
1.
effective team management, one must try to gain the confidence of other ----------------------
team members. Building trust is an ongoing process and cannot be done ----------------------
in a single day. Trust is a vital force behind any motivation. People do
work to satisfy their needs. They assume that working in a team will ----------------------
accomplish their needs and give them essential security. If that part is
missing, no one can work together. People build their trust by watching ----------------------
the behaviours in various occasions and hence it is the responsibility of ----------------------
the team leader to keep to the words and commitments given. He should
build confidence in his team that they will be appropriately rewarded for ----------------------
their work.
----------------------
Honesty: Honesty helps in building mutual trust. During the project, lots
2.
of information is being generated and communicated to the stakeholders ----------------------
and it is not always practically possible to check the sanctity of the
information. It is assumed that people are reporting actual facts and not ----------------------
dummy data to save their face. Honesty and sincerity improves the quality ----------------------
and productivity of the work. Honest people get respect from others.
Honesty helps them to climb up the success ladder. Honest people can ----------------------
objectively criticise their performance and improve further.
----------------------
Transparency: Transparency means openness in communication and
3.
overall behaviour. It is based on the principle that no one is superior in ----------------------
Managing Team 153

Notes everything. People seek guidance and information from others. If they
cannot openly talk to each other due to fear of criticism or fear of risk, their
---------------------- progress is stagnated. Good leaders always try to make the environment
as open as possible where people can share their thoughts and opinions
---------------------- freely. Transparent environment encourages them to take more risks.
---------------------- Transparency does not mean access to every bit of information. A leader
should share only relevant information and not sensitive information.
---------------------- One must be very careful in implementing such a strategy since there are
few people who can take undue advantages of such environment.
----------------------
Coordination: Though team members perform individually, they are
4.
---------------------- integrated with each other through a common objective. The performance
of one may affect the performance of others; hence, by proper coordination,
----------------------
the team leader maintains the balance of the speed. During execution,
---------------------- people are struck due to lack of information or incompletion of previous
activity, so it is the prime responsibility of the team leader to see that all
---------------------- resources are having proper information at hand to proceed further. He
needs to organise the team as per the skills and roles. Coordination is also
----------------------
a continuous activity. Coordination is an activity in which team leader
---------------------- closely interacts with team members to find any gaps & fill the gaps.

----------------------
Fill in the Blanks.
----------------------
1. ______ is a vital force behind any motivation.
---------------------- 1. Which of the following are the pillars of a team?
---------------------- i. Honesty
ii. Dedication
----------------------
iii. Transparency
----------------------
iv. Cooperation
----------------------
v. Coordination
----------------------
---------------------- Activity 1
----------------------
Identify examples / business scenarios for each pillar of a team.
----------------------
---------------------- 7.3 BUILDING TEAM

---------------------- Building a team is an important activity in software project management. Right
people with matching skills are crucial for project success. Right people with
----------------------
right skills are not easily available to a project. In software industry, human
resources are shared resources. When new project begins, free resources are Notes
taken up on project and may be released after their work is over or they are not
performing well. Due to the temporary nature, software teams are not permanent ----------------------
teams; team size keeps on changing. Some people form different teams for
different projects at different times. Hence, team-building activity needs to be ----------------------
performed for every project. In small companies or small teams, this activity ----------------------
may not have much importance. But for large projects, managing thousands
of people is really a big challenge. If the team size increases, HR management ----------------------
becomes more complex.
----------------------
It is essential to know how a team is formed. Most of the time, the teams are
formed through informal ways. In projects, teams are formed as per the roles in ----------------------
the organisation structure. Let us understand the basis of team-building activity.
----------------------
The model of group development was first suggested by Bruce Tuckman in
1965. This model depicts how a team is formed with four stages. These are ----------------------
Forming, Storming, Norming and Performing. He believed that all these four
----------------------
stages are inevitable for team growth, facing challenges, tackling problems,
finding solutions and in planning and delivering results. This model has become ----------------------
the basis for other subsequent models. Let us study the four stages of team
formation. ----------------------
1. Forming ----------------------
Forming is the first stage in team building in which forming of the team takes ----------------------
place. The team meets and learns as to what they are supposed to do, i.e. their
roles, responsibilities and challenges and then agrees on roles and begins to ----------------------
tackle the tasks. Team members tend to behave quite independently. They may
be motivated but are usually relatively uninformed of the issues and objectives ----------------------
of the team. Team members are usually on their best behaviour but very focused ----------------------
on themselves. Mature team members begin to model appropriate behaviour
even at this early phase. Sharing the knowledge of the concept of “Teams - ----------------------
Forming, Storming, Norming, Performing” is extremely helpful to the team.
----------------------
Initially the team is not fully aware of its role. Leaders should provide necessary
guidance in this phase. ----------------------
During formation, team members get to know each other, share their experiences, ----------------------
likes and dislikes and make friends. This is also a good opportunity to see how
each member of the team works as an individual and how they respond to ----------------------
pressure.
----------------------
2. Storming
----------------------
This is a bit tensed stage. There is no consensus on goals and how to achieve the
goals or tackle the problems at hand. The team addresses issues such as what ----------------------
problems they are really supposed to solve, how they will function independently
and together and what leadership model they will accept. Team members open ----------------------
up to each other and confront each other’s ideas and perspectives. In some
----------------------
cases, storming can be resolved quickly. In others, the team never leaves this
stage. The maturity of some team members usually determines whether the ----------------------
Managing Team 155

Notes team will ever move out of this stage. Some team members will focus on ins
and outs to avoid real issues.
----------------------
The storming stage is necessary for the growth of the team. It can be debatable,
---------------------- unpleasant and even painful to team members who want to avoid conflict.
Tolerance of each team member and their differences need to be emphasised.
---------------------- Without tolerance and patience, the team will fail. This phase can become
destructive to the team and will lower the motivation if allowed to get out of
----------------------
control.
---------------------- Team leaders during this phase may be more accessible but still need to be
directive in their guidance of decision-making and professional behaviour. The
----------------------
groups will therefore resolve their differences and group members will be able
---------------------- to participate more comfortably; they will not feel that they are being judged in
any way and will therefore share their own opinions and views.
----------------------
3. Norming
---------------------- After Storming, the team may enter into the norming stage. Team members
---------------------- adjust their behaviour to each other as they develop work habits that make
teamwork seem more natural and fluid. Team members often work through
---------------------- this stage by agreeing on rules, values, professional behaviour, shared methods
and working tools. During this phase, team members begin to trust each other.
---------------------- Motivation increases as the team is more acquainted with the project.
---------------------- Team leaders during this phase tend to be more participative than in the earlier
stages. The team members can be expected to take more responsibility for
---------------------- making decisions and for their professional behaviour.
---------------------- As team members get to know each other better, their views of each other begin
to change. The team feels a sense of achievement for getting so far; however,
---------------------- some members may begin to feel threatened by the amount of responsibility they
---------------------- have been given. They would try to resist the pressure and revert to storming
again.
----------------------
4. Performing
---------------------- In performing stage, the group is ready to focus attention on task accomplishment.
Issues of interpersonal relations, roles and responsibilities are settled. These
----------------------
high-performing teams are able to function as a unit as they find ways to get
---------------------- the job done smoothly and effectively without inappropriate conflict or the
need for external supervision. Team members have become interdependent. By
---------------------- this time, they are motivated and knowledgeable. The team members are now
competent, autonomous and able to handle the decision-making process without
----------------------
supervision. Team leaders during this phase are almost always participative.
---------------------- The team will make most of the necessary decisions. Even the most high-
performing teams will revert to earlier stages in certain circumstances. Many
---------------------- long-standing teams will go through these cycles many times, as they react to
changing circumstances. For example, a change in leadership may cause the
----------------------
team to revert to storming, as the new people challenge the existing norms and
---------------------- dynamics of the team.

Notes
----------------------
i. Forming a. Team members have become interdependent. ----------------------
ii. Storming b. Team members begin to trust each other.
iii. Norming c. Team members tend to behave quite ----------------------
independently.
----------------------
iv. Performing d. Team members open up to each other and
confront each other’s ideas and perspectives. ----------------------
----------------------
7.4 MOTIVATING TEAM ----------------------
For teams to function effectively, it is important that the team members are ----------------------
motivated. Motivation plays a very important role; it is essential for personal
achievement or success of a project. Let us now study the various motivational ----------------------
theories.
----------------------
Motivation keeps team members moving. To perform is the responsibility of a
team member; however, to keep the team highly motivated is the responsibility ----------------------
of a project manager. It does not matter how well you plan, how accurately
you schedule and how less your budget is. Unless and until your team starts ----------------------
working, you will not reach the project goal. Hence, one must possess the ----------------------
motivation skills, as it helps in personal growth as well as team growth. Let us
understand what motivation is and which theories and techniques can be used ----------------------
in motivation.
----------------------
What is motivation?
----------------------
Motivation means removing inertia and putting one into action. Actions
accelerate because we want to gain something or we want to avoid something. ----------------------
You will understand the importance of motivation when you ask your team to
maintain documentation. Programmers are generally lazy in documentation and ----------------------
you need to motivate them.
----------------------
We will overview some of the motivation theories.
----------------------
In 1960, psychologist Maslow developed the theory of human needs. According ----------------------
to him, human needs are hierarchical in nature, which means people get ----------------------
motivated to satisfy their basic needs first and once these needs are satisfied,
they strive for satisfying next higher need and that keeps them continuously ----------------------
motivated till they satisfy the top need in hierarchy, i.e. self-actualisation need.
Maslow’s hierarchical needs include 5 levels as shown in the figure below. ----------------------
----------------------
----------------------
Managing Team 157

Notes Self
Actualisation
----------------------
Self-Esteem
----------------------
Belongingness and
---------------------- Love
---------------------- Safety
---------------------- Physiological
----------------------
Fig. 7.1: Maslow’s Hierarchy of Needs
---------------------- 1. Physiological needs
---------------------- Physiological need is the basic need. This is the strongest need for which every
human being strives. They are the literal requirements for human survival. If
---------------------- these requirements are not met (with the exception of clothing and shelter), the
---------------------- human body simply cannot continue to function. Hence, this need comes first
in hierarchy. Some of the physiological needs include breathing, water, food,
---------------------- clothes and shelter.
---------------------- 2. Safety needs

Once all the physiological needs are satisfied, the individual’s safety needs take
----------------------
over and dominate their behaviour. These needs have to do with people’s thirst
---------------------- for a secure and orderly life in which injustice and inconsistency are under
control. In the world of work, the safety needs manifest themselves in such
---------------------- things as preference for job security, personal security, financial security, health
and well being, insurance against accidents and protection from threats such as
----------------------
storm, riots etc.
---------------------- 3. Social needs
---------------------- After physiological and safety needs are fulfilled, the third layer of human needs
is social. This psychological aspect of Maslow’s hierarchy involves emotionally
---------------------- based relationships in general, such as friendship, togetherness, family support
etc.
----------------------
Humans need to feel a sense of belonging and acceptance, whether it comes
---------------------- from a large social group, such as clubs, office culture, religious groups,
---------------------- professional organisations, sports teams or small social connections such as
family members, intimate partners, mentors, close colleagues. They need to
---------------------- love and be loved by others. In the absence of these elements, many people
become susceptible to loneliness and social anxiety. This need for belonging
---------------------- can often overcome the physiological and security needs, depending on the
---------------------- strength of the peer pressure. It has more importance in team because first two
needs are not directly concerned with team behaviour; however, an isolated
---------------------- person may not work well.
----------------------

4. Esteem Need Notes
Esteem need is a higher psychological need. All humans have a need to be
----------------------
respected, to have self-esteem, self-respect. People need to engage themselves
to gain recognition and have an activity or activities that give the person a ----------------------
sense of contribution, to feel accepted and self-valued, be it in a profession or
hobby. Imbalances at this level can result in low self-esteem or an inferiority ----------------------
complex. People with low self-esteem need respect from others. They may seek
----------------------
fame or glory, which again depends on others. It may be noted, however, that
many people with low self-esteem will not be able to improve their view of ----------------------
themselves simply by receiving fame, respect and glory externally, but must
first accept themselves internally. ----------------------
Most people have a need for stable self-respect and self-esteem. Maslow noted ----------------------
two versions of esteem needs, a lower one and a higher one. The lower one is
the need for the respect of others, the need for status, recognition, fame, prestige ----------------------
and attention. The higher one is the need for self-esteem, strength, competence,
----------------------
mastery, self-confidence, independence and freedom. The last one is higher
because it rests more on inner competence won through experience. ----------------------
5. Self-actualisation
----------------------
This is the topmost need in Maslow’s hierarchy of needs. Very few people
reach to this stage. People will strive for self-actualisation needs when and only ----------------------
when all previous needs are fully satisfied. Self-actualisation need is more of ----------------------
a philosophical need and the realisation of one’s potential to do that, which a
person was “born to do”. Consider the example of Microsoft owner Bill Gates. ----------------------
He achieved everything but that does not mean he cannot be motivated further.
He is still motivated for achieving more; he is doing more for society. ----------------------
7.4.2 Herzberg’s Motivation-Hygiene Theory ----------------------
Fredrick Herzberg conducted studies to quantify what factors influence ----------------------
satisfaction at work and he recognised two factors that affect the attitudes of
employee towards the work. These two factors are Motivation and Hygiene. ----------------------
If these two factors are properly managed, a team can achieve high levels
of performance. He stated that these two factors contribute to employee’s ----------------------
behaviour at work. He found that presence of certain factors does not motivate ----------------------
but the absence of these factors can de-motivate employees. This factor is called
‘hygiene factor’ or ’dissatisfiers’. ----------------------
Motivators ----------------------
Motivators influence satisfactions based on fulfillment of higher-level needs.
----------------------
The higher level needs could be achievement, recognition, the work itself,
responsibility, advancement and growth. These factors have long lasting impact ----------------------
on the performance of an employee.
----------------------
Hygiene Factors
These factors are related to work condition and environment in which employee ----------------------
is working. In good working environment, people work even better. Some ----------------------
Managing Team 159

Notes of the factors that affect the performance are company policy, supervision,
interpersonal relations, working conditions, salary, status, security, personal
---------------------- life. According to the theory, absence of job can create job dissatisfaction;
however, presence does not motivate or create satisfaction. The effects of
---------------------- Hygiene factors are temporary. For example, salary rise will have its impact for
---------------------- a short period, while if you provide growth and recognition, its impact will be
longer on employee’s performance.
----------------------
---------------------- Douglas McGregor, an American social psychologist, proposed the famous X-Y
theory. In this theory, he describes two fundamental approaches to managing
----------------------
people. Many managers tend towards theory X and generally get poor results
---------------------- while other managers use theory Y, which produces better performance and
results and allows people to grow and develop.
----------------------
Theory X (Authoritarian Management Style)
---------------------- This theory states that average people dislike work and will try to avoid work if
---------------------- they can. This theory assumes that people are inherently lazy and follow the path
of least resistance. Therefore, people must be forced to work with the threat of
---------------------- punishment and need to be motivated by money and positions, to work towards
organisational objectives. These people need to be directed and controlled. The
---------------------- authoritarian style of management works well with lazy people.
---------------------- Theory Y (Participative Management Style)
---------------------- This theory states that people will put their effort in work as natural as they play.
People will apply self-control and self-direction in the pursuit of organisational
---------------------- objectives, without external control or the threat of punishment. Commitment
to objectives is a function of rewards associated with their achievement. People
---------------------- usually accept and often seek responsibility. The capacity to use a high degree
---------------------- of imagination, ingenuity and creativity in solving organisational problems is
widely, not narrowly, distributed in the population. In industry, the intellectual
---------------------- potential of the average person is only partly utilised.
---------------------- Theory Z - William Ouchi (Japanese Management Style)
This theory is developed by William Ouchi in 1981. Theory Z is more popular
----------------------
in Japan and hence often referred to as the ‘Japanese’ management style. Theory
---------------------- Z essentially advocates a combination of all that is best about theory Y and
modern Japanese management, which places a large amount of freedom and
---------------------- trust with workers and assumes that workers have a strong loyalty and interest
in team working and the organisation. According to this theory, workers want
----------------------
to use their productive time in obtaining more rewarding experiences. They
---------------------- would like to be a part of the enterprise goal and contribute their efforts. If
the organisation culture is aligned accordingly, they will be able to achieve
---------------------- goals. Some of the key characteristics of Japanese organisations are lifetime
employment that gives them job security, slow promotions and infrequent
----------------------
evaluations, non-specialised career paths and collective decision-making and
---------------------- responsibility. By implementing the Z theory, Japanese led their high quality
products in the world.
7.4.4 The Equity Theory Notes
Motivating and retaining teams is a challenge. Employee turnover is quite high
----------------------
in IT industry except during recession. Why people move? The basic reasons are
more monetary gains and higher work opportunities. To retain good employees, ----------------------
we must understand the equity principle. We studied Maslow’s hierarchy of
needs and other factors but one more factor can influence the behaviour of an ----------------------
employee- the feeling of equity that means everyone expects that he/she should
----------------------
be treated equally and fairly. It is a very common behaviour that employees
discuss among each other and compare their salaries. If they feel that their ----------------------
salary is less than the co-worker, their morale and performance can be seriously
affected and in extreme cases, the employee may leave the job. To retain the ----------------------
employee, management should treat everyone in a fair manner and the rewards
----------------------
should be based on their performance and not on individual relationship.
Employees compare their work and pay with the following: ----------------------
●● Compare salary of co-worker holding the same position.
----------------------
●● Compare salary of other companies for the same position.
●● Compare their salary with the rewards they get in different times. ----------------------
●● Compare their pay to other individuals holding different positions. ----------------------

In reality, the performance, responsibility, skills and experience are unique ----------------------
characteristics and due to this, it is not possible to decide the standard pay rate
for different positions. However, certain factors can be considered while fixing ----------------------
the salary of a person, such as deciding the level of performance expected
from employee, accessing the actual performance of employee, linking pay ----------------------
rate proportional to desired performance and analyzing conflicting situations. ----------------------
Overall, the project manager or HR manager should ensure that everyone is
treated equally and fairly. ----------------------
----------------------
----------------------
----------------------
i. Physiological needs a. Need to be respected, to have self-
esteem, self-respect ----------------------
ii. Safety needs b. Requirements for human survival ----------------------
iii. Social needs c. More of a philosophical need and the
realisation of one’s potential to do that, ----------------------
which a person was “Born to do”
----------------------
iv. Esteem needs d. Thirst for a secure and orderly life in
which injustice and inconsistency are ----------------------
under control
v. Self-actualisation e. Can often overcome the physiological ----------------------
needs and security needs, depending on the
----------------------
strength of the peer pressure.
----------------------
Managing Team 161

Notes
---------------------- 1. Theory X is called as Participative Management Style.
---------------------- 1. To retain good employees, we must understand the __________.
----------------------
---------------------- Activity 2
---------------------- Identify 10 hygiene factors that can decrease the performance of a team
member.
----------------------
----------------------
7.5 PROJECT HUMAN RESOURCE PLANNING
----------------------
The next important aspect for any organisation is to plan their resources for the
---------------------- project and the most crucial of these resources is the human resource. We will
now have a look into the human resource planning for the project.
----------------------
Project Human Resource Management consists of the processes required to
---------------------- organise, manage and lead the project team. The project team comprises of
---------------------- the people with assigned roles and responsibilities for completing the project.
The type and number of team members can change frequently as the project
---------------------- progresses. While the specific roles and responsibilities are assigned to the team
members, their involvement in project planning and decision-making plays a
---------------------- crucial role. The involvement and participation of team members in the earlier
---------------------- stages adds the benefits of their expertise during the planning process and
strengthens their commitment to the project.
---------------------- The Human resource plan contains
---------------------- ●● Total number of resources required for each role
---------------------- ●● Costing information and assumptions, including perks and allowances
●● The duration for which the resource is required
----------------------
●● Any special skills required over and above those that people in the
---------------------- specified role would normally be expected to have, as well as the required
level of proficiency and the relative importance of these skills
----------------------
●● Training requirements needed specifically for the project on new
---------------------- technologies.
●● Office and Hardware requirements
----------------------
●● Plans for team-building activities
----------------------
The project human resource plan supports resource planning, resource
---------------------- acquisition and supervising project-specific training activities. A summary of
the project human resource plan is created for the entire project and managed
---------------------- by the project manager.

The formality with which the project human resource plan is created and Notes
documented is a reflection of the size and complexity of the project. Typically,
small projects do not require a formal plan. On the other hand, large, multiyear, ----------------------
multilevel projects with many participants may require multiple formal plans.
The project human resource plan is based on the project schedule. ----------------------
The Project management schedule includes a summary of the effort by human ----------------------
resource category expressed in person hours, person days etc. that will be
----------------------
required to perform defined work units, as well as the time frames during
which the work units will be performed. For example, the project management ----------------------
schedule might indicate that 1000 hours of .Net programmers are needed for
three months from Jan to Mar. ----------------------
The project human resource plan uses the requirement for human resources ----------------------
to develop a plan for staff acquisition. There is usually iteration between the
development of the project management schedule and the human resource plan, ----------------------
as “reality” is applied during development of the human resource plan during
----------------------
the different phases of the project. For example, for a very large project, it may
be known that it is impossible to obtain the 100 programmers specified in the ----------------------
project management schedule during a particular time period. Therefore, the
project management schedule will need to be changed to reflect this. ----------------------
The project human resource plan may be revised when changes in the Project ----------------------
management schedule for a project organisational unit result in a change in
staffing requirements. Also, the results of recruiting activities could impact the ----------------------
human resource plan.
----------------------
The Project Human Resource Management process is as follows:
----------------------
Developing Human Resource Plan: Identifying and documenting
a.
project roles, responsibilities and required skills, reporting relationships ----------------------
and creating a staffing management plan.
----------------------
b. Acquiring Project Team: Confirming human resource availability and
obtaining the team necessary to complete project assignments. ----------------------
c. Developing Project Team: Focusing on improving the competencies, ----------------------
team interaction and the overall team environment for enhancing the
project performance. ----------------------
d. Managing Project Team: Tracking the team members’ performance in ----------------------
order to provide feedback, resolve issues and manage changes to optimise
project performance. ----------------------
The project management team is a subset of the project team and is responsible ----------------------
for activities such as initiating, planning, executing, monitoring, controlling and
closing the various project phases. For small projects, the project management ----------------------
responsibilities can be shared by the entire team or managed entirely by the ----------------------
project manager. The project sponsor works with the project management
team, typically assisting with matters such as project funding, clarifying scope, ----------------------
monitoring progress and influencing others so as to benefit the project.
----------------------
Managing Team 163

Notes
----------------------

1. Which of the following processes are involved in project human resource
----------------------
planning?
---------------------- i. Developing human resource plan
---------------------- ii. Acquiring project team
---------------------- iii. Developing project team

iv. Allocating task to project team
----------------------
v. Managing project team
----------------------
----------------------
Activity 3
----------------------
---------------------- Prepare a plan for human resource planning for a project of your choice.
----------------------
7.6 TEAM STRUCTURE
----------------------
The team structure defines the roles, responsibilities and reporting relationships
---------------------- of the people managing and working within a project organisational unit. Well-
---------------------- organised team structure will help to optimise the efforts of the team and the
success of the project. An inappropriate one can undercut the efforts of a hard
---------------------- working group of people and impede their success. This process is performed
during planning phase. Often, it is carried out by the functional managers/senior
---------------------- management responsible for the people who will staff the project.
---------------------- The project manager should influence the functional managers to ensure that
the team structure meets the requirements of the project. The first consideration
---------------------- in organising a team is the objective of the team. Has the team been asked
---------------------- to explore possibilities and alternatives? Is the team charged with solving a
complex, poorly defined problem? This is often the case with study projects
---------------------- or when implementing a new technology. Broadly, there are two different
organisational approaches. In the normal approach, each team is responsible
---------------------- for a specific set of activities and the work products move between the teams
---------------------- according to a predefined workflow. The team members all have similar skills.
In the multidisciplinary approach, each team is responsible for completing some
---------------------- of the work products. The team members have different skills and possibly are
---------------------- multi-skilled.
Certain project approaches favour certain team structures. For example, rapid
----------------------
application development (RAD) works best with multidisciplinary teams. It
---------------------- is necessary to have a team structure so that all the members of the project

understand their roles and their working and reporting relationships. However, Notes
all team structures introduce some measure of inflexibility. It is important to
understand that there is no “right” team structure for a project and that it usually ----------------------
depends on the organisational requirements and needs of the project.
----------------------
Roles and Responsibilities of people involved in a project
----------------------
Let us discuss some of the roles and their responsibilities.
• Sponsor ----------------------
A sponsor can be an individual or organisation who provides funds to the ----------------------
project. If the organisation is developing the project for external customer,
then the external customer may fulfill the role of the customer as well as the ----------------------
sponsor. Otherwise, senior management of the performing organisation acts as ----------------------
the sponsor if the project is initiated for a performing organisation. A sponsor
is a prime stakeholder of the project; hence, he can interact and intervene in all ----------------------
phases of projects from initiating to closing. The sponsor’s prime responsibility
includes funding, providing initial information regarding the initial scope of ----------------------
the project, determining priorities and constraints, acting as the spokesperson ----------------------
of the project, approving final project plan, guiding team on risk and providing
expert opinion, defining the reporting and communication requirement of senior ----------------------
management. During monitoring and controlling phase, he may enforce quality
policy and resolve conflicts that are beyond the control of the project manager. ----------------------
• Project Manager ----------------------

A project manager is responsible for the overall management of the project. ----------------------
He is accountable for project failure as well as project success. The Project
Managers responsibility includes project planning, direct execution, monitoring ----------------------
and control and formal closure.
----------------------
• Team
----------------------
Team means group of people responsible for actual execution of the project.
The team may include Architects, Programmers, Testing and Quality Personnel. ----------------------
The responsibility of the team includes identifying stakeholders, gathering
requirements, identifying constraints and assumptions, providing effort ----------------------
estimates, attending review meetings, performing actual task such as designing,
----------------------
coding, testing, documentation etc.
• Stakeholders ----------------------
Stakeholders are the individuals who are directly or indirectly associated with ----------------------
the project and who can negatively or positively influence the projects. The
stakeholder’s role is generally defined by the respective organisation, which ----------------------
means customer’s user roles are generally defined by their project managers. ----------------------
Stakeholders are responsible for preparing initial scope, requirement elicitation,
change management, risk management etc. ----------------------
Team Structure in Software Projects ----------------------
The major aim of a software team is to approach a Project as a team effort.
----------------------
There are three generic team structures in Software Projects. These are:
Managing Team 165

Notes ●● Democratic Decentralised Team / Structured Open Team [Egoless Team]
●● Controlled Decentralised Team
----------------------
●● Controlled Centralised Team
---------------------- ●● Democratic Decentralised Team / Structured Open Team [Ego less Team]
----------------------
----------------------
----------------------
----------------------
----------------------
---------------------- Fig. 7.2: Democratic Decentralised Team

Characteristics of a Democratic Decentralised Team / Structured Open Team
----------------------
[Ego less Team]
---------------------- ●● The goal of the team members is set by consensus and input of every
---------------------- member is taken for major decision.
●● There is no Permanent Team Leader.
----------------------
●● Communication is horizontal.
---------------------- ●● Informal atmosphere is the main characteristic of this team.
---------------------- ●● Complex nature problems are best handled by this team.
●● Suitable for long-term Research type projects, which do not have time
----------------------
constraint.
---------------------- Controlled Centralised Team / Chief Programmer Team
Chief Programmer
----------------------
----------------------
----------------------
……. .
---------------------- Back up Librarian Programmers
Programmer
----------------------
Fig. 7.3: Controlled Centralised Team
----------------------
Characteristics of Controlled Centralised Team / Chief Programmer Team
---------------------- ●● Communication is vertical.
---------------------- ●● Suitable for problems that are well understood.
●● It consists of :
----------------------
 Chief Programmer
----------------------
 Back up Engineer
----------------------  Technical Staff - Programmer

 Specialists Notes
 Librarian
----------------------
●● Suitable for simple projects with strict deadlines.
----------------------
Controlled Decentralised Team
Characteristics of Controlled Decentralised Team ----------------------
●● Combines the strengths of Democratic and Chief Programmer teams. ----------------------
●● Communication is horizontal as well as vertical.
----------------------
●● It has a team leader and number of secondary leaders.
----------------------
●● Problem solving is done at group level but implementation is the
responsibility of the sub groups. ----------------------
●● Suitable for large projects.
----------------------
----------------------
Fill in the blanks.
1. A __________ is responsible for the overall management of the ----------------------
project.
----------------------
----------------------
1. Which of the following is a characteristic of controlled centralised team?
i. Suitable for long-term Research type projects, which do not ----------------------
have time constraints ----------------------
ii. Suitable for simple projects with strict deadlines
----------------------
iii. Suitable for large projects
----------------------
iv. Suitable for short-term projects
----------------------
Activity 4 ----------------------
----------------------
Prepare a list of three software projects each for the type of team structures
you have studied. ----------------------
----------------------
7.7 MANAGING CONFLICTS
----------------------
When a team functions together, there are conflicts that may arise due to several
----------------------
reasons. Managing conflict is the responsibility of the project manager. Let us
understand conflicts and how conflicts can be managed. ----------------------
Every team member is performing as per the plan; customer is delighted and ----------------------
senior management is happy about the project performance; this is a very rare
and ideal situation in software development projects. Disagreement and conflict ----------------------
Managing Team 167

Notes management becomes regular for a project manager. No one wants conflicts and
tries to avoid them but that does not happen or is rare.
----------------------
Let us not take conflict in a negative way. Conflicts are good at times for
---------------------- improvement and are inevitable consequences of organisational interactions.
Most of the common sources of conflicts are schedules, priorities, resources,
----------------------
technical opinions, administrative procedures, budget and personality of a team
---------------------- member. For example, in global implementation of products, there are always
conflicts between priorities of different countries. Due to cultural differences and
---------------------- local government policies, there is always conflict of prioritisation. Managing
conflicts is the responsibility of the project manager; therefore, he must possess
----------------------
better communication and negotiation skills and techniques to resolve conflicts
---------------------- between either internal stakeholders or external stakeholders.
There are various ways to manage conflicts; let us have an overview of some
----------------------
of them:
---------------------- Confronting: Confrontation is the same as problem solving. In problem solving,
---------------------- we go to the root cause of the problem and resolve conflict at the root level. This
type of conflict resolution is highly favoured due to its proactive nature, as it
---------------------- deals with the root cause of the problem and not the person.
---------------------- Compromise: When two parties sacrifice something for the sake of reaching an
agreement, it is called as compromise. The technique involves finding solutions
---------------------- that bring some degree of satisfaction to both the parties. This is a Lose-Lose
situation since no party gets everything. For example, the customer may add
---------------------- one important change few days before the final implementation; this can delay
---------------------- the schedule, increase the risk and cost of the project. As a Project Manager,
you do not agree because it was not mentioned in the initial scope statement;
---------------------- however, after negotiation, the customer agrees to pay extra cost and accept
postponed schedule.
----------------------
Forcing: As the name implies, people are forced to abide by the decision.
---------------------- The manager does not have any options in certain compelling situations. This
technique is generally applied when other techniques fail. Forcing is considered
---------------------- to be the worst way to resolve conflicts. Forcing does not help resolve the
---------------------- underlying problems; it reduces the morale of the team.
Accommodating: This style indicates a willingness to meet the needs of others
----------------------
at the expense of the person’s own needs. The accommodator often knows
---------------------- when to give in to others, but can be persuaded to surrender a position even
when it is not warranted. This person is not assertive but is highly cooperative.
---------------------- Accommodation is appropriate when the issues matter more to the other party,
when peace is more valuable than winning or when you want to be in a position
----------------------
to bank on this “favour” you gave. However, people may not return favours and
---------------------- overall, this approach is unlikely to give the best outcome.
Withdrawal (Avoidance): This is not a special technique; rather it is a
----------------------
phenomenon. Most of the time people try to avoid conflicts and hope that the
---------------------- problem will go away by itself.

Notes
----------------------
1. Confrontation is the same as ___________.
----------------------
----------------------
1. When two parties sacrifice something for the sake of reaching an
agreement, it is called withdrawal. ----------------------
----------------------
Activity 5
----------------------
A project manager says this to his customer, “We all agree that this project ----------------------
is important. Let’s not fight over a few thousand dollars”. What conflict
resolution technique is this project manager trying to use? Explain in your ----------------------
words. ----------------------
----------------------
7.8 INFLUENCING
----------------------
How can a project manager maintain enthusiasm, teamwork and project
activities on schedule? It is here when the project manager needs to exercise ----------------------
influence on his team members while leading his/her team. Thus, another aspect
----------------------
in working together in a team is influencing. Let us see how a project manager
/ team leader can influence his team members. ----------------------
Influencing is a skill; it is, in fact, one of the important skills required of a ----------------------
project manager. It determines the impact of the project manager on his/her
team. You cannot become a leader just by reading and understanding various ----------------------
motivation theories and techniques of people management. All these skills are
important when you have sufficient power and authority. Influencing determines ----------------------
why people obey their leader and why the orders or even genuine suggestions ----------------------
of other leaders are just rejected by team members. Influence determines the
impact of an individual on his followers. The impact may be due to formal ----------------------
position, authority and power or the personality of the individual. Now we will
discuss various powers that a leader is required to exercise in managing people. ----------------------
• Reward Power ----------------------
The reward power refers to the authority and capacity of a leader to reward his ----------------------
subordinates. If the leader has more reward power, more people will obey him
and his influence on the team will likely increase. The rewards can be praise, ----------------------
recognition, support; such rewards are mostly attributed to the personality of
the leader. Every organisation authorises the leader to use the other rewards ----------------------
such as pay rises, promotions and other facilities at his capacity. ----------------------
----------------------
Managing Team 169

Notes • Coercive Power
Leaders can exercise this power by punishing their subordinates. This is the
----------------------
negative side of the authority. Leaders influence their subordinates positively
---------------------- by giving rewards or negatively by punishing. The degree of punishment a
leader can exercise varies with authority, the position given by the organisation
---------------------- and mostly depends on the situation and organisation culture.
---------------------- Some examples of coercive power are no praise and credit of work, holding
promotion and pay rise, insult and in extreme circumstances, termination. Most
---------------------- of the people are generally influenced by the fear of negative power of their
leaders.
----------------------
• Legitimate Power
----------------------
This power is legal power a leader can exercise to influence subordinates. The
---------------------- legitimate power is generally determined by the position and role of a leader
in the organisation. The organisation gives such power to various positions to
---------------------- maintain the organisation policies, norms and procedures. Subordinates are
---------------------- obligated to comply with such requests because of the norms accepted by all
members of the organisation as legitimate. This power is independent of the
---------------------- personal characteristics of the leader and he has to exercise this power in legal
framework.
----------------------
• Expert Power
---------------------- The power purely depends on the knowledge, and the level of experience
---------------------- the leader possesses in his domain. For example, a leader with vast hands-
on experience in latest technology can enjoy this power of influencing his
---------------------- subordinates. Subordinates expect guidance and expert advice many times
during execution. Subordinates follow their leaders and perform well if they
---------------------- find that their leader is competent and knowledgeable than themselves. In IT
---------------------- industry, due to the intellectual nature of work, this power is in high demand.
• Referent Power
----------------------
Referent power is a form of power that is based on respect or the charismatic
---------------------- personality of the manager. It is the ability of the leader to persuade his
subordinates. This power can be used by aligning the less powerful leader with
----------------------
more powerful leader. For instance, if the project manager is very close to the
---------------------- CEO of the company, his subordinates will follow him due to his closeness to
the CEO. This power is generally used in social and political campaigns. For
---------------------- example, the company uses referent power of the famous movie actor or famous
sportsmen in their advertisements; it is believed that due to the charismatic
----------------------
power of a leader, their sale will go up. This power is generally used by political
---------------------- parties to resolve the conflicts. However, this power has very less application
in IT industry.
----------------------
----------------------
----------------------

Notes
----------------------
1. Referent power is a form of power that is based on respect or the
----------------------
charismatic personality of the manager.
----------------------
Activity 6 ----------------------
----------------------
According to you, which power must a leader exercise in IT organisations?
Give appropriate justification. ----------------------
----------------------
Summary
----------------------
●● The essential factors in team formation are Mutual Trust, Openness, ----------------------
Honesty and Coordination.
●● The basic team formation model consists of the four stages of team ----------------------
building- forming, storming, norming and performing.
----------------------
●● Motivating team members is the prime responsibility of the team leader.
----------------------
●● In Maslow’s Hierarchy of Needs, Maslow arranged the needs in
hierarchical format that indicates that an individual will strive to satisfy ----------------------
the next higher need once his lower need is satisfied.
----------------------
●● According to Herzberg’s Motivation-Hygiene Theory, absence of
certain factors such as working conditions may demotivate and reduce ----------------------
the performance of an individual or team; however, its presence will
considerably increase the performance. ----------------------
●● McGregor suggested two theories X and Y. According to theory X, people ----------------------
are inherently lazy and do not want to work unless and until they are forced
and motivated. Theory Y suggests that people are naturally motivated. ----------------------
Theory Z is the combination of the Japanese style and theory Y.
----------------------
●● According to equity theory, every individual expects fairness and equality
in rewards. ----------------------
●● Project Human Resource Management consists of the processes required ----------------------
to organise, manage and lead the project team.
●● The project team comprises of the people with assigned roles and ----------------------
responsibilities for completing the project. ----------------------
●● The various team structures in software projects are Democratic
Decentralised Team / Structured Open Team, Controlled Decentralised ----------------------
Team and Controlled Centralised Team.
----------------------
----------------------
Managing Team 171

Notes ●● Managing conflicts within the team or outside the team is the responsibility
of a project manager.
---------------------- ●● There are various conflict management techniques such as Smoothing,
---------------------- Confrontation, Withdrawal and Compromise.
●● Influence of a leader in HR management plays a very important role in
---------------------- HR management. There are various types of power- expert, legitimate,
---------------------- coercive, reward and referent powers- that the leader can exercise to
influence his team.
----------------------
----------------------
Keywords
---------------------- ●● Motivation: Motivation means removing inertia and putting one into
action.
---------------------- ●● Team structure: It defines the roles, responsibilities and reporting
---------------------- relationships of the people managing and working within a project
organisational unit.
---------------------- ●● Influencing: Influencing is a skill that determines the impact the project
---------------------- manager has on his/her team.

---------------------- 1. What is a Team? Explain the basic model of team building.
---------------------- 2. Explain Maslow’s hierarchy of needs.
---------------------- 3. State and describe the various team structures.
4. Explain in detail Project Human Resource Planning.
----------------------
5. Write short notes on:
----------------------
a. Herzberg’s Motivation-Hygiene Theory:
---------------------- b. Douglas McGregor’s Theory of Motivation
---------------------- c. Equity theory
---------------------- 6. Discuss various conflict management techniques.
---------------------- 7. Discuss the power that a leader should exercise while managing people.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Answers to Check your Progress Notes
1. Trust is a vital force behind any motivation. ----------------------
----------------------
1. Which of the following are the pillars of a team?
----------------------
i. Honesty
iii. Transparency ----------------------
v. Coordination ----------------------
----------------------
i. c
----------------------
ii. d
iii. b ----------------------
iv. a ----------------------
----------------------
----------------------
----------------------
i. b
ii. d ----------------------
iii. e ----------------------
iv. a ----------------------
v. c
----------------------
----------------------
1. False
----------------------

1. To retain good employees, we must understand the equity principle. ----------------------
----------------------
----------------------
1. Which of the following processes are involved in project human resource ----------------------
planning? ----------------------
i. Developing human resource plan
----------------------
Managing Team 173

Notes ii. Acquiring project team
iii. Developing project team
----------------------
v. Managing project team
----------------------

---------------------- 1. A project manager is responsible for the overall management of the
project.
----------------------
---------------------- 1. Which of the following is a characteristic of controlled centralised team?
---------------------- i. Suitable for simple projects with strict deadlines
----------------------
----------------------
Fill in the blanks.
----------------------
1. Confrontation is the same as problem solving.
---------------------- 1. False
----------------------
----------------------
----------------------
1. True
----------------------
---------------------- 1.
Hughes, Bob & Mike Cotterell. Software Project Management. Tata McGraw
Hill Publishing Company Limited.
----------------------
2. Kekar, S.A. Software Project Management. New Delhi: PHI Learning
---------------------- Pvt. Ltd.
3. Lewis, James. Project Planning, Scheduling and Controlling, Tata
----------------------
McGraw Hill.
----------------------
----------------------
----------------------
----------------------
----------------------

Managing Communication
UNIT
8
Structure:
8.1 Introduction
8.2 Importance of Effective Communication
8.3 Meaning of Communication
8.4 Process of Communication
8.5 Components of Communication
8.6 Barriers to Communication
8.7 Types of Communication
8.7.1 Types of Communication Skills
8.7.2 Different Types of Communication
8.8 Communication Planning
8.9 Managing Meetings
8.9.1 Types of Meetings
8.10 Complementary Skills for Effective Communication
Summary
Key Words
Suggested Reading
Managing Communication 175

Notes
Objectives
----------------------
----------------------
• Explain the importance of communication in software project
---------------------- management
---------------------- • Outline the basics of communication process

• Analyse types of communication
----------------------
• Enhance and apply communication skills
---------------------- • Compare various communication theories
---------------------- • Identify the barriers to communication
----------------------
8.1 INTRODUCTION
----------------------
In the previous units, we have already studied project management, the various
---------------------- knowledge areas and the skills we must possess to be effective in software project
management. This unit covers the most important skill, i.e. communication, the
---------------------- skill that everyone must possess to be successful in every walk of life and in
---------------------- particular, knowledge-based industry such as information technology.
Communication is an exciting and truly challenging field of human interaction.
----------------------
We are familiar with the term communication and since our childhood, we have
---------------------- been using it in different ways for different purposes. Generally, we acquire
the knowledge first and then apply that knowledge and improve our skills to
---------------------- solve the problems. Since childhood, we have practiced ample communication
skill; we still do not have the basic knowledge of communication process. Our
----------------------
existing communication skills are limited only to convey our meaning either by
---------------------- spoken or written words. To be effective as a project manager, one must possess
these skills. If you are weak in communication, you will have very limited
---------------------- chances of making your project as well as your career successful; hence, the first
step is to understand the basics of communication and then practice and sharpen
----------------------
communication skills. Here we shall discuss the basics of communication and
---------------------- how its application varies with the person, society, culture. Communication is
a dynamic activity and one can communicate in a number of ways to number
---------------------- of people with the style appropriate to his requirement, personality and need of
the audience.
----------------------
In software development, we use communication most frequently unlike
---------------------- other activities such as planning, scheduling, risk management etc. Software
development being an intellectual activity unlike other products, the inputs
----------------------
and outputs to software are presented in terms of information. Without the aid
---------------------- of communication, we cannot give input to the software process. The main
role of communication in software project is to exchange information. In other
---------------------- words, we can say communication is a tool or an instrument that carries the
information/requirements/specifications to the software development process.
----------------------

A project manager must be able to exhibit his ability to think, write, observe and Notes
speak effectively. Communication problem is about the right perception, use
of information, analysis of situation, creation of impulses and finding ways to ----------------------
put across and handle messages. Communication can be fun as the interaction
takes place with others by exchanging facts, feelings, figures, emotions, ideas, ----------------------
opinions etc. ----------------------
8.2 IMPORTANCE OF EFFECTIVE COMMUNICATION ----------------------
To understand the importance of communication, we must pay attention to ----------------------

what the famous management guru Peter Ducker stated, “One’s effectiveness is ----------------------
determined by one’s ability to reach others through the spoken or written word.
Thus communication is perhaps the most important skill.” Through extensive ----------------------
research in many projects, it is found that projects can substantially fail due to
poor communication despite of technical competence. It is estimated that an ----------------------
effective project manager spends about 90% of his time on communication, out ----------------------
of which 50% of the time is spent on communication with the project team. That
means every team member- external stakeholders, project leads, quality persons, ----------------------
testing team, development team, analysts- spend most of their time in exchanging
information with one other. ----------------------
Broadly, we can say that project team activities are divided into two parts; one is ----------------------
communicating and the other is doing technical activities such as programming,
testing etc. As the major portion of your project’s duration is utilised in ----------------------
communication, if you cannot manage communication properly, the major portion ----------------------
of the project duration will be mere waste.
----------------------
Usually, communication happens between two or more persons. Due to
the complex and unique nature of human beings, one standard formula of ----------------------
communication will not fit and it will become a more dynamic activity. Thus,
communication becomes more of a psychological activity than logical activity. ----------------------
As your team grows in size and spreads across countries of different cultures,
----------------------
languages etc., the activity becomes more complicated.
Communication is not limited to mere exchange of information and reporting; ----------------------
it can further be used for forming and motivating the team, negotiating with
----------------------
stakeholders and maintaining documentation. It is proved that people (Project
Team) follow the leader (Project Manager). As a leader, a project manager must ----------------------
clearly communicate with his team, provide guidance, listen to their problems
and all this cannot be achieved without the proper combination of personality ----------------------
and communication skills.
----------------------
In software projects, we use communication to gather requirements, present the
project proposal, maintain documents, monitor and report status and manage ----------------------
stakeholders. Communication skills help project managers in resolving the
----------------------
conflicts and negotiating. Communication may occur with two persons situated
in one place or with hundreds of other team members located at different parts in ----------------------
a collaborative environment. Software industry has now realised its importance
----------------------

Notes and various theories and communication models are being continuously evolved
to manage communication effectively.
----------------------
In a nutshell, we can say that communication is an important skill in software
---------------------- project management because of its wide scope, integral and complex nature,
impact on time and budget, impact on team motivation and formation and
---------------------- importance in negotiation.
----------------------
----------------------

1. An effective project manager spends about 50% of his time on
---------------------- communication.
---------------------- 2. Project team activities are divided into two parts: communication
and technical activities.
----------------------
3.
In software project management, development phase is more
---------------------- important than communication.
----------------------
---------------------- Activity 1
----------------------
1. Find out how much time in a typical day you spend on talking and
---------------------- writing
2. What is the importance of using local language while communicating
----------------------
with subordinates? Explain with an example from your observation.
----------------------
---------------------- 8.3 MEANING OF COMMUNICATION

---------------------- The word communication has been derived from the Latin word ‘communis’,
which means common. Communication goes beyond commonality and it
---------------------- additionally incorporates the following three concepts- Transfer, Meaning and
---------------------- Information.
Understanding of the nature of communication is essential because it is the
---------------------- foundation of human interaction. Communication can be defined as, “the sum
---------------------- of all the things one person does when he wants to create understanding in the
mind of another. It involves a systematic and continuous process of telling,
---------------------- listening and understanding.”
---------------------- In our day-to-day life, many times we share our expressions, feelings, thoughts
with others with some intention. At the same time, we also provide feedback to
---------------------- others. The process of exchanging thoughts or information with others is called
communication. The communication takes various forms as per the situation.
---------------------- For example, if your project manager is presenting information about the project,
---------------------- then it is official and formal communication, while if you are sharing a movie

story with your friend, it is informal and personal communication. Generally, Notes
all communication has some specific intent behind it. In the above example,
your project manager wants to share how the project is going to be executed so ----------------------
that team members align themselves with the project. There are various reasons
communication is triggered; most of them are specific intents, feelings, access ----------------------
information, convey message, share information, give direction etc. ----------------------
In the communication process, we presume that the other person with whom
----------------------
we are sharing the information is not aware of the information; however, in
exceptional cases such as reminder notices, we may exchange same information ----------------------
repeatedly. We can convey our message or information through spoken word
or through written words or through proper body language. Communication ----------------------
involves all our five senses and their proper coordination is important for
----------------------
effective communication.
----------------------
----------------------
1. Communication incorporates the following concepts: ----------------------
i. Information
----------------------
ii. Transfer
----------------------
iii. Language
iv. Meaning ----------------------
2. Communication involves a continuous process of ----------------------
i. Understanding ----------------------
ii. Listening
----------------------
iii. Noting
----------------------
iv. Quoting
3. Communication is a process of exchanging ----------------------
i. Newspapers ----------------------
ii. Thoughts ----------------------
iii. Information
----------------------
iv. Addresses
----------------------
Activity 2 ----------------------
----------------------
Take a project as an example and discuss its pros and cons and list them
down. ----------------------
----------------------

Notes 8.4 PROCESS OF COMMUNICATION
---------------------- Communication is a two-way process. It needs at least two persons present,
without which communication is not complete and meaningful. For the sake of
---------------------- simplicity, we may call the persons as sender and receiver.
---------------------- For example, if two persons are communicating with each other, one of them
is the sender of the information and other is the receiver of the information.
---------------------- Sender and receiver are roles played by two persons and these roles can be
---------------------- interchanged interactively; that means the second person becomes the sender of
information and so on.
---------------------- Communication process is illustrated in the following figure:
---------------------- Sender Receiver
---------------------- Encoding Decoding
Encode Message Decode
----------------------
Write Read
---------------------- Feedback
Speak Listen
----------------------
---------------------- Fig. 8.1: Communication Process

In the process, the sender first encodes the message in a proper format, which is
---------------------- readable to the receiver and transmits it over some medium. Then the receiver
---------------------- receives the message and decodes it. The receiver can send feedback to the
sender and complete the communication process. Feedback is important in any
---------------------- communication. In the above figure, three lines are shown for feedback; first
line indicates receiver only received message, second line indicates the receiver
---------------------- understood the message and the third line indicates receiver acted upon the
---------------------- message.
An effective communication must possess all the processes depicted in the
----------------------
figure. All these processes are interactive in nature and involve many other
---------------------- things that cannot be shown in the figure, such as the level of understanding of
participants, style and form of communication, personal beliefs and attitudes etc.
---------------------- However, all such other parameters are important in effective communication.
For example, I am communicating with all of you about the knowledge and
----------------------
practices used in software project management. Here I assume that you have
---------------------- some basic knowledge and prior experience in software technology. Instead,
if I teach you some concepts of medical science, then you may not be able to
---------------------- understand or relate with your experience and the purpose of communication
may fail. Hence, before communicating, we must know that the receiver holds
----------------------
some relative knowledge.
---------------------- The two main functions of the communication process are encoding and
decoding.
----------------------
1. Encoding: In communication, the sender has to first create the message.
---------------------- For this, he must know what he wants to convey. Consolidating or

grouping of idea or thought or emotion into an understandable format Notes
is called encoding. We can encode and express our thoughts, ideas,
expressions in written words, spoken words or any form of body language. ----------------------
While encoding, the sender must ensure that the level of understanding
of the receiver and the encoded message is complete in all respects. ----------------------
For example, if you just say, “Today is my birthday”, what should the ----------------------
receiver understand from it? Do you expect him to greet you? Do you
want to invite him for a party? In the above example, the message is not ----------------------
completely encoded and may create confusion.
----------------------
2. Decoding: On the other hand, the receiver interprets the messages
received with prior experience, knowledge or relation with the sender. ----------------------
The language that we use in communication does not carry the full
----------------------
meaning and does not have full control on what others may interpret.
Hence, encoding and decoding play a very important role in effective ----------------------
communication.
----------------------
To understand the communication process, macro activities of the sender
and the receiver are described below. However, as these activities are very ----------------------
micro in nature, you cannot separate them out from each other during every
communication act. Our brain is habituated with all these activities, so we ----------------------
cannot able to visualise or sense in our day-to-day communication. You can use
----------------------
these activities to analyse your communication and improve any gaps to avoid
miscommunication. ----------------------
Activities of the sender
----------------------
The sender performs the following activities:
----------------------
1. Decides what he wants to convey.
2. Encodes the message. ----------------------
3. Decides the media to be used, for example, written words or spoken words ----------------------
or body language.
----------------------
4. Sends the message to the receiver.
----------------------
5.
Waits for feedback and reopens the communication or closes the
communication. ----------------------
Activities of the receiver ----------------------
1. Decides whether he wants to receive the communication.
----------------------
2. Decodes the received message.
----------------------
3. Prepares the feedback response.
The other processes are same as the sender because he is now communicating; ----------------------
he now becomes the sender and the other person becomes the receiver. The
----------------------
same communication loop may occur repeatedly till the objective of the
communication is achieved. ----------------------
----------------------

Notes
----------------------

1. Consolidating or grouping of ideas or thoughts or emotions into an
----------------------
understandable format is called _____.
---------------------- 2. _______ is responsible for decoding the message.
----------------------
---------------------- Activity 3
----------------------
1. List down the new words or phrases that you use whenever you are
---------------------- addressing your subordinates.
2. It is essential for the project manager to understand whether the
----------------------
receiver has understood him/her during the communication session.
---------------------- Relate this statement to one of your experiences.
----------------------
8.5 COMPONENTS OF COMMUNICATION
----------------------
Understanding of the elements of communication process will enable us to
---------------------- grasp and use the process better.
---------------------- 1. Encode: Translate thoughts or ideas into a language that is understood by
others.
----------------------
2. Channel: Without the presence of two or more persons, communication
---------------------- cannot take place.
---------------------- 3. Message: The output of encoding in the form of ideas, thoughts,
information, feelings etc.
----------------------
4. Medium: Communication needs some form of medium to pass on the
---------------------- message, for example, spoken words for voice, written words on paper,
electronic mail through internet etc.
----------------------
5. The code: The language used to convey the message, for example,
---------------------- English, French, Hindi or body language.
---------------------- 6. Relation: There is always some sort of logical relationship between the
sender and the receiver, for example, two friends can communicate with
---------------------- each other, project manager and his team, boss and subordinate, parents
and their child, teacher and students, speaker and audience etc.
----------------------
7. Noise: Anything that interferes with transmission and understanding of
---------------------- message.
---------------------- 8. Decode: Translates the message into meaningful thoughts or ideas.
----------------------

Ingredients of Communication: Notes
Communication is not just sending and receiving messages or reading and
----------------------
writing processes or speaking and listening in an activity. Communication
process involves some other visible and invisible factors and we must know ----------------------
them to be effective communicators.
----------------------
• Visible factors: Visible means we can sense, hear or see, e.g. voice,
words, actions, physical appearance etc. ----------------------
• Invisible factors: These are micro-factors that we cannot see, hear or
----------------------
sense and they are self-image, beliefs and values, emotions and thought
processes. ----------------------
----------------------
----------------------
i. Code a. Media to pass on the message
ii. Noise b. Language used to convey message ----------------------
iii. Medium c. Logical relationship ----------------------
iv. Visible factors d. Anything that interferes
----------------------
e. Actions
----------------------
Activity 4 ----------------------
----------------------
1. For how long can a person hear effectively? What happens after
that? ----------------------
2. You are discussing an important aspect of project and one of your ----------------------
team member yawns. How will you react?
----------------------
----------------------
8.6 BARRIERS TO COMMUNICATION
----------------------
Most of the time, we experience that the message that we want to convey is
not completely understood or interpreted by the receiver or we may not get ----------------------
appropriate response from the receiver through the feedback. Such scenarios
are symptoms of miscommunication. We must know what factors can affect ----------------------
the communication process. The factors that create obstacles in smooth
----------------------
communication are called barriers to communication. Once we know the
barriers, we can try to reduce these barriers. Barriers keep us away from ----------------------
understanding other ideas and thoughts. Barriers can appear at any time during
the communication process. Broadly, we can classify the barriers into two parts, ----------------------
internal and external.
----------------------
• Internal barriers: Examples of internal barriers are lack of interest in the
message, poor listening skills, attitude towards the sender or information, ----------------------

Notes fear, mistrust, negative attitude, past experience, lack of common
experience and emotions.
----------------------
• External barriers: Examples of external barriers include noise,
---------------------- distractions, internet problems, telephone line problems, disconnections
etc.
----------------------
The most common barriers observed are explained below.
---------------------- The language: Language is the main barrier to communication. Language
used by the participants should be the same; otherwise, the receiver cannot
----------------------
understand the message. For example, imagine what will happen if I write the
---------------------- textbook in Chinese language and assume that you know Chinese.
---------------------- Vocabulary: We generally use some technical jargon or specific words. If the
sender and receiver do not have common vocabulary, then that may lead to
---------------------- miscommunication. Suppose I asked what is NPV or BCWS, which stands for
Net Present Value and Budget Cost of Work Scheduled, the receiver may not be
---------------------- able to interpret it because he may not be familiar with the project management
---------------------- concepts. This may quite often happen with new and strange words; hence, it
needs to be avoided.
---------------------- Culture: Every country has its own cultural codes and symbols having special
---------------------- meaning. For example, when two Indians meet with each other, they say
“Namaskar”. If an Indian person says Namaskar to a person in America, he may
---------------------- not be able to interpret it. To avoid such problems when the team is dispersed
across nations, usually cultural awareness programs are conducted, which
---------------------- explain the code of conduct and etiquette of other countries to the participants.
---------------------- Context: The context about which you are communicating must be familiar
to the receiver. For example, the receiver may not be familiar with software
---------------------- development project management and you are communicating with him about
---------------------- various terms used in schedule development. The receiver must be familiar with
the current context and needs to have some relative prior experience; then and
---------------------- then only can the receiver decode the message completely and give you an
appropriate feedback.
----------------------
Voice: The quality of voice, pronunciation, accents etc. play a very important
---------------------- role in effective communication. For example, people in US/UK generally
speak faster and their accents and pronunciation, being different, may not be
----------------------
clear to other people outside their countries.
----------------------
----------------------
---------------------- 1. The quality of voice, pronunciation, accents plays a very important

role in effective communication.
---------------------- 2. Lack of interest in the message is an example of external barrier.
---------------------- 3. Not using common vocabulary can lead to miscommunication.

Notes
Activity 5
----------------------
1. Identify various barriers to communication that you come across ----------------------
while talking to you team members.
----------------------
2.
What initiative will you take to remove these barriers to
communication? ----------------------
----------------------
8.7 TYPES OF COMMUNICATION
----------------------
There are various ways, forms and styles of communication that we use in
----------------------
our day-to-day life as per the needs of the situation. For example, the formal
communication is used when the senior members or stakeholders are called for ----------------------
a presentation on new project. Informal communication is generally used when
the team is small in size and the team members are familiar with each other. ----------------------
Similarly, you can use different modes of communication, for example mobile
----------------------
for urgent call or SMS, e- mail for written communication, etc. You must know
various modes of communication and acquire skills in that particular type of ----------------------
communication. Some of you may be good at written communication but may
or may not be effective at oral communication or vice versa. ----------------------
8.7.1 Types of Communication Skills ----------------------
During software development, most of the project manager’s time is spent on ----------------------
reporting and communicating and he also needs other skills such as listening,
writing, presentation, soft skills, negotiation and influencing. All these skills are ----------------------
needed for effective communication.
----------------------
These skills are the key to executing good management skills. With good
management skills, you can have a team of members who together create an ----------------------
ambience of open communication, concise messages, probe for clarifications,
recognise non-verbal signals and mutual understanding. Good communication ----------------------
involves a set of complex skills. ----------------------
There are mainly three types of communication skills- expressive skills,
listening skills and skills for managing the overall process of communication. ----------------------
The skill fundamental to all these types of communication is emotional skills. ----------------------
●● Expressive skills are required to convey messages to others through
----------------------
words, facial expressions and body language. We cannot necessarily use
the same language for writing as well as speaking. There are various tribal ----------------------
languages, which do not have any script; they are only used for verbal
communication. Gesture can also be used for effective communication; ----------------------
rather gesture can increase the effectiveness of communication. Gestures
----------------------
entail the use of various parts of the body such as face, hands, neck, eyes,
lips etc. to express various emotions and non-verbal signals, for example, ----------------------
most of the people nod their heads while listening or speaking. This type
of communication is mostly used by parents to control their naughty ----------------------

Notes children in front of others. Also, gestures are used by the deaf and dumb
to ’talk’. Gestures are based on commonly accepted and understood
---------------------- protocols such as cupping your hand near your mouth for asking water or
you can use figure and thumb to show that there is a phone call. However,
---------------------- we cannot use gestures in every communication due to the limitation of
---------------------- body language. We cannot teach a subject to masses for longer durations
using only gestures.
---------------------- ●● Listening skills are skills that are used to obtain messages or information
---------------------- from others. These help to clearly understand what a person feels and
thinks about you or to understand the other person closely.
---------------------- ●● Skills for managing the overall process of communication help to recognise
---------------------- the required information and develop a strong hold on the existing rules
of communication and interaction.
---------------------- 8.7.2 Different Types of Communication
---------------------- After discussing the different communication skills, we will now go to different
types of communication, as explained below.
----------------------
1. Hierarchical Communication
----------------------
Every organisation has its own organisation structure that defines the hierarchy
---------------------- of its personnel. For example, who will report to whom (lower management
staff or the subordinates should report to their bosses)?
----------------------
a. The communication that flows from lower management to the middle
---------------------- management or middle management to top management is called upward
communication.
----------------------
b. Generally, orders or instructions are given by top management to middle
---------------------- and middle to lower management. The flow of communication is from top
to bottom; hence called downward communication.
----------------------
c. Many a times, you observe that employees seek information or share their
---------------------- information, opinions across their co-workers of the same rank; such type
of communication is called lateral or horizontal communication.
----------------------
In all of the communication, hierarchy acts as a barrier. Generally, subordinates
---------------------- are not open to their bosses and as a project manager, you need to establish a
proper rapport. Unlike other industries, there is not much hierarchy in software
---------------------- industry. Usually, all team members express their opinions and suggestions
---------------------- freely.
2. Formal and Informal Communication
----------------------
In software project management, many a times you have to access the
---------------------- information from your co-workers and put them in proper format and report
to customer or top management. Though accessing information and presenting
----------------------
information are part of communication, they differ on the approach adopted to
---------------------- perform such activity.
a. Formal communication: Formal communication is structured and pre-
----------------------
planned. That means what to communicate, whom to communicate, when
to communicate etc. is already pre-defined. It includes standard language, Notes
reporting templates and maintains the hierarchy. For example, various
status and progress reports etc. are usually communicated through formal ----------------------
methods. Formal communication executes in controlled environment.
Most of the time, decisions are based on the facts received from formal ----------------------
communication. Formal communication increases the reliability of the ----------------------
information.
----------------------
b. Informal communication: It is not always possible to access information
through formal channels. For example, to find out more about employee ----------------------
morale you need to discuss with them openly. You cannot ask direct
questions; you need to be more informal. Then and then only, employees ----------------------
share sensitive information. As compared to formal communication,
----------------------
informal communication is less formal, less controlled and more open.
Generally, this type of communication is used to access preliminary ----------------------
information. Informal communication does not follow hierarchy of
information. The organisation culture is so open, that any subordinate can ----------------------
discuss something with any senior. It is found that informal channel gives
----------------------
more information and because of open environment, employees can share
their information freely without any barriers. ----------------------
3. Oral and Written Communication
----------------------
a. Oral communication is direct face-to-face communication between
two or more persons. In oral communication, the sender and ----------------------
receiver exchange their thoughts or ideas verbally either in face-to-
----------------------
face discussion or through any mechanical or electrical device like
a telephone. ----------------------
In oral communication, the conveying person can ask questions ----------------------
or sometimes when the communication is not understandable in
a proper manner, he can clarify its meaning. He can use different ----------------------
gestures and postures to convey meaning. Oral communication
is generally possible where there can be either a direct contact ----------------------
or message to be conveyed is of temporary nature. Meetings and ----------------------
conferences, lectures and interviews are some examples of oral
communication. ----------------------
Advantages of oral communication ----------------------
●● It has the distinct advantage of being quick and prompt. It provides the
opportunity to both the sender and receiver of the message to respond directly. ----------------------
●● Oral communication facilitates close contact and thus promotes mutual ----------------------
exchange of thoughts, information, understanding and support.
----------------------
●● Oral communication, through direct contact, undeniably inculcates a
sense of self-importance in the subordinates, which successively acts as ----------------------
an inspiring element.
----------------------
●● It also helps in bringing a responsive and supportive morale among
employees of an organisation. ----------------------

Notes ●● Oral communication further allows the superior to make a rapid evaluation
of subordinate’s action as well as reaction to any message transmitted.
---------------------- Disadvantage of oral communication
---------------------- ●● Due to the dynamic nature of oral communication, there could be a
possibility of variety in the language used. Variation could be from
---------------------- geographical or social and cultural differences. As compared to written
---------------------- communication, it is less organised and less controlled.
●● As it is an ongoing process, the receiver needs to comprehend it fast.
---------------------- Otherwise, the receiver may miss some part of the speech and that can
---------------------- create confusion.
●● We cannot use oral communication as evidence in case of conflicts unless
---------------------- and until every speech is recorded and it is not practically possible to
---------------------- record every oral communication.
●● Oral communication is not useful to convey messages to widely dispersed
---------------------- teams with different languages and cultures.
---------------------- b. Written Communication
---------------------- Communication through words may be in writing or oral. Written communication

entails transmission of message in black and white. It mainly consists of
---------------------- diagrams, pictures, graphs etc. Reports, policies, rules, orders, instructions,
agreements etc. have to be conveyed in written form for proper functioning of
---------------------- the organisation.
---------------------- Written communication guarantees that everyone concerned has the same
information. It provides a long-lasting record of communication for future.
---------------------- Written instructions are essential when the action called for is crucial and
---------------------- complex. To be effective, written communication should be understandable,
brief, truthful and comprehensive.
----------------------
Advantages of written communication
---------------------- ●● There is no fear of interruption from the audience and you can take your
own time.
----------------------
●● It ensures transmission of information in a uniform manner.
---------------------- ●● It provides a permanent record of communication for future reference.
---------------------- ●● It is an idealistic way of conveying long messages.
---------------------- ●● It ensures little risk of unauthorised alteration in the message.
●● It tends to be comprehensive, obvious and accurate.
----------------------
●● It is well suited to express messages to a large number of persons at the
---------------------- same time.
●● It can be quoted as legal evidence in case of any disputes.
----------------------
●● It allows use of graphics such as diagrams, pictures and graphs.
----------------------
----------------------

Disadvantages of written communication Notes
●● Immediate feedback is absent in written communication.
----------------------
●● Non-reciprocal nature of written communication makes it more difficult
to learn. ----------------------
●● The writer cannot judge the reactions of audience and change the contents ----------------------
instantly.
●● Written communication is costly and time consuming. ----------------------
●● It becomes difficult to maintain privacy about written communication. ----------------------
●● Written communication is very formal and lacks personal touch.
----------------------
●● It may be represented in a different way by different people.
----------------------
●● We can express thoughts or convey ideas in a more organised way and
there is less chance of omission. ----------------------
●● You can reread and rewrite the contents, which is not possible in oral
----------------------
communication.
----------------------
----------------------
1. Messages in black and white come under _________ communication. ----------------------
2. ________ communication is structured and pre-planned.
----------------------
3. ________communication has the distinct advantage of being quick
and prompt. ----------------------
----------------------
Activity 6 ----------------------
1. As a project manager, what would you be more comfortable with- ----------------------
oral or written communication and why? ----------------------
2. You are the project manager and you want to hire programmers.
Which form of communication would you use to communicate ----------------------
your resource requirements to the HR manager? ----------------------
3. Which mode of communication would you adopt in the following
cases? ----------------------
a. You want to convey status of the project to stakeholders. ----------------------

b. You are in design phase and you want to brainstorm ideas. ----------------------
c. You want to call an urgent meeting.
----------------------
d. You want to resolve the conflict between two programmers.
----------------------
----------------------

Notes 8.8 COMMUNICATION PLANNING
---------------------- By now, you are familiar with the concept of communication and the parts
of communication process. You are also familiar with various types of
---------------------- communication and the barriers to communication. In this section, we will
discuss how to manage communication in large projects.
----------------------
Imagine the difference when you talk to a known person or your team and when
---------------------- you talk to a stakeholder, including customers and team members from various
---------------------- countries.
As the team size grows, number of channels increases and that adds complexity
---------------------- to your communication. During project execution, you have to select and apply
---------------------- combinations of skills that we have discussed in the first part of this unit.
Collectively, communication management is a process of communication
----------------------
planning, information gathering and distribution, information storage and
---------------------- retrieval and reporting.
Communication planning might be a totally new concept for you. We indulge
----------------------
in day-to-day communication that may not require a detailed communication
---------------------- plan. To avoid conflicts and misunderstanding, effective communication insists
on making a plan before you communicate.
----------------------
The main objective of communication management process is to provide
---------------------- only required information and with the right format at the right time. Every
stakeholder has various information requirements from the project. For
---------------------- example the customer is interested in knowing the status of the project,
whether change request is properly incorporated, whether documentation is
----------------------
self-explanatory etc.; your team may have information requirements such as
---------------------- software requirement specification, design documents etc.; the project sponsor
needs to know the progress of the project, how funds are being utilised, whether
---------------------- project can finish in time and given budget etc. Sometimes you may need to
pass on the information to an outside agency who is outsourcing and some
----------------------
information to government authorities and auditors etc. Above all, the project
---------------------- manager is responsible for communicating not only with every stakeholder,
but with the entire team involved in the communication process. However, the
---------------------- overall responsibility remains with the project manager.
---------------------- Imagine a team of 200 people spread throughout the world, speaking many
different languages with many different cultural ways of communicating and
---------------------- you will realise how planning is worth doing and the time that you require
---------------------- to communicate across such a huge team. As the team and its information
requirement grows in size, it becomes necessary to define the following:
---------------------- ●● Who will communicate with whom?
---------------------- ●● What information will be included in project communication?
---------------------- ●● Which project stakeholders will receive the information?

●● How often the information is distributed & updated?
----------------------

●● What technology is used to transfer the information broadly defined in the Notes
project communication plan?
Communication Channels ----------------------
The first thing you need to do in communication planning is to identify the ----------------------
number of channels that exist. The communication channel defines the possible
paths of communication across the project team. Communication channels ----------------------
determine the complexity of communication. Adding just a single resource in ----------------------
the existing team increases the number of communication paths; hence, you
must know how to calculate the number of channels. ----------------------
The number of channels is calculated as Channels = n(n-1)/2 ----------------------
Where n is the number of people on the project.
----------------------
Now let us calculate the number of channels that exist in a team of 200 people.
By substituting value of n = 200 we will get ----------------------
Channels = 200(200-1)/2 = 19900 ----------------------
If your team size is 200, then you have total 19,900 channels open for ----------------------
communication. This is quite a big figure for imagination, but in reality,
it is there for large projects. All channels may not be necessarily active at a ----------------------
time. Some of them are official channels and you need to formally respond to
them. It is not practically possible to control all paths; however, with proper ----------------------
communication management plan, you can control any large team information. ----------------------
The figure below illustrates the communication paths that exist in a team of four
resources. ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig. 8.2: Communication Path ----------------------
As per the formula, the number of channels that exist in a team of four people
= 4(4- 1)/2 = 6. Total six channels exist and are shown by lines in the above ----------------------
figure. ----------------------
The next thing you need to do is analyse the communication requirements of
the stakeholders, for example, your customer may ask you to provide status ----------------------
reports. Here you will have to analyse what information should be included in ----------------------
status format and the frequency, for example, initially weekly status report can
be generated. As reporting is a time-consuming process, you cannot generate it ----------------------

Notes or decide in what format status is reported and you have to make sure that every
week, the customer will get the status report. Once stakeholders’ information
---------------------- requirements are frozen, you will have to next decide the appropriate
communication technology used as a means of communication. Some of the
---------------------- questions described below will help you to determine the appropriate selection
---------------------- of technology:
●● Would it be better to communicate the information through an e-mail or
----------------------
telephone call?
---------------------- ●● What technology is the team familiar and comfortable with, for example,
video conferencing, chatting, etc.?
----------------------
●● Should I send a letter through mail, since most of the time people ignore
---------------------- emails and do not respond to them? However, it becomes compulsory for
them to respond to receipt of conventional mail through post.
----------------------
●● How quickly do I need to communicate the information?
---------------------- After doing communication requirement analysis, all the gathered information
---------------------- is presented in tabular format called as communication management plan. The
sample communication form is shown below:
----------------------
What needs to be Purpose To Method of Frequency By Whom
---------------------- communicated whom Communication
----------------------
----------------------
----------------------
----------------------
---------------------- The communication plan can be more exhaustive. You can even add templates
or formats that you want to communicate. In ’Frequency’, you can write if it is
---------------------- weekly, monthly etc. or you may write specific due date of the document. ‘To
whom’ describes the name of the person who is going to use the information
----------------------
and ‘By whom’ is the person responsible for sending the information. In the first
---------------------- column, you can write the brief contents of the report or name of the standard
report. Inclusion of ’Purpose’ will add quality. Most of the time people generate
---------------------- lots of redundant information. This redundancy can be avoided if you mention
purpose. Redundancy is a time wasting activity for sender as well as receiver
----------------------
of the information.
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
i. Redundancy a. Gathered information in ----------------------
tabular form
ii. Communication planning b. Might be a new concept ----------------------
iii. Communication Channel c. Stakeholders
----------------------
iv. Communication management plan d. Time wasting activity ----------------------

e. Determines the complexity of ----------------------
communication
----------------------
Activity 7 ----------------------
----------------------
1. Assume that 5 new resources are added to your existing team of 5
resources. Calculate the total number of communication paths or ----------------------
channels.
----------------------
2. Find out more information on Video conferencing and Web
Meetings. ----------------------
3. What do you suggest to avoid redundancy in communication? ----------------------
4. What other information do you require to prepare communication
----------------------
management plan?
----------------------
8.9 MANAGING MEETINGS ----------------------
Meetings are one of the important and essential activities in project management. ----------------------
The project starts with a kick-off meeting and during project execution, many
a times, team members and customer representatives are called for meetings. ----------------------
It is found that on an average 25% to 75% time is spent on attending meetings.
----------------------
Managing meeting is one of the important skills that every manager must
possess. Communication skills play a very important role in managing meetings. ----------------------
In large software projects, these meetings are planned during communication
management planning. ----------------------
Meetings are generally called to officially convey some messages or exchange ----------------------
information, to discuss some important issues, to make unanimous decisions.
Meetings are conducted many a times during project execution. Meetings ----------------------
are generally held before the beginning and ending of each phase and major
----------------------
milestones achieved. Meetings help in planning and evaluation can be used to
make all the stakeholders aware of how the project is progressing. Each meeting ----------------------
has a specific purpose and various meetings such as status meeting, review
meetings, group meetings can be called during project execution. ----------------------

Notes 8.9.1 Types of Meetings
Broadly, meetings are classified into two types: one to one meetings and group
----------------------
meetings.
---------------------- One to one meetings: These meetings are more informal and the project
a.
leader can meet the team member individually. These are short meetings
----------------------
and are called when individual opinions are important. These meetings
---------------------- are generally held to convey confidential or sensitive information. Many a
times, such a meeting is conducted to gather individual opinions because
---------------------- people generally do not share their opinions in public.
---------------------- Group meetings: In formal meetings, generally more than one person
b.
is involved. As a group is involved, more communication paths are
---------------------- open; hence group or formal meetings are more structured, planned and
generally last longer. There is a chairperson or facilitator required to
----------------------
control the group meetings.
---------------------- Role of a Facilitator: The facilitator is responsible for the overall success of
---------------------- meetings. His main job is to control the meeting and keep people on track when
they deviate from the main objective. His main tasks include selecting and
---------------------- inviting participants for meetings, deciding the agenda, recoding opinions of
participants on paper, concluding the meetings and closing meeting in a fruitful
---------------------- manner. Depending upon the situation, he can get an assistant to help him in
---------------------- showing slides, taking notes, writing on the white board etc.
Role of Participants: Meeting participants are generally expert or executors,
---------------------- who can offer suggestions, share their views and help in generating alternatives.
---------------------- Generally, participants are related to the subject of the meeting. For example,
in design review meetings, participants could be chief architects, database
---------------------- designer, subject matter experts etc. They play an active and responsible role
needed in information sharing, problem solving and decision-making.
----------------------
Coach: Coach is a role and usually can be played by the facilitator of the
---------------------- meeting. The role of a coach is optional. Depending on the needs and maturity
of participants, separate coach is invited to guide the meeting. The role of a
---------------------- mentor is to improve the quality of meeting. He provides unbiased views and
---------------------- notes the behaviours of the participants that make the meeting go well or totally
fail.
----------------------
---------------------- Provide an Agenda ahead of Time
---------------------- Before calling a meeting, decide the purpose of the meeting and agenda of the
meeting and send it to participants before the actual meeting so that participant
---------------------- can prepare well and present necessary facts in the meeting. Most of the time,
meetings are called all of a sudden and purpose of the meeting cannot be
----------------------
mitigated. The thumb rule is that people get frustrated with such unmanaged
---------------------- meetings and tend to avoid if such meetings become a routine of their work.
----------------------

Set a time limit and keep to it Notes
As per the need and purpose, fix the duration and time for the meeting. One
----------------------
hour is usually sufficient for routine meetings; however, for brainstorming and
problem solving sessions, meetings may last longer than hours. The time of ----------------------
meeting is also important. It is observed that energy levels of team members are
not constant throughout the day. Usually performance is slow after lunch hours ----------------------
and mid afternoon. If you call a meeting in this period, most of the participants
----------------------
may not be hundred percent attentive.
Bring the right people together ----------------------
Before the meeting, decide who needs to be invited, who can make the meeting ----------------------
fruitful and whether the participants have enough expertise in the related field.
Many a times, it is found that the meeting room becomes a war room due to ----------------------
unexpected behaviour of the participants. Not all the participants possess right
----------------------
communication skills to express their views and draw conclusions.
Stick to the agenda ----------------------
Most of the time, during discussion, people surf from one point to another and ----------------------
lead the meeting in different directions. It is the responsibility of all participants
to express only relevant views and not divert the discussion. In case such a ----------------------
situation arises, the facilitator must intervene and get back to the main agenda. ----------------------
Let people know their responsibility in advance
----------------------
People are generally not aware why they are called for a meeting. Roles and
responsibility make their thinking clear about what is to be done. Once they ----------------------
know their roles, accordingly they can share their views. For example, suppose
----------------------
you called a meeting to decide the budget of the project and the participants
are not aware that they are supposed to share their views on budget. Then they ----------------------
would not even speak a single word and your meeting will serve no purpose.
----------------------
Document meetings
Document every minute of the discussion, decisions and deliverables. Include ----------------------
the list of participants along with their roles and responsibility, venue of the
----------------------
meeting, date and time of the meeting. Take the signature of the participant on
minutes of the meeting. This documentation can be used for future reference in ----------------------
case of disagreement among the participants.
----------------------
Define rules of the meeting and lead accordingly
Formal meetings are well planned and structured. Before calling a meeting, ----------------------
decide the rule of meetings such as purpose of the meeting, expected duration of ----------------------
the meeting, expected deliverables, roles and responsibilities of the participants,
the level of freedom given to participant to share their views etc. ----------------------
Assign deliverables to participants ----------------------
Once the discussion is over, write down actions to be taken and deliverables
----------------------
preferably with time frames. At the end, conclude meeting with positive
outcomes and objectives achieved. ----------------------

Notes
----------------------

1. Most of the time, during discussion, people surf from one point to
----------------------
another and lead the meeting in different directions.
---------------------- 2. Before the meeting, decide who is needed to be invited, who can
make the meeting entertaining.
----------------------
3. When more than one person is involved, it is called as informal meeting.
----------------------
----------------------
Activity 8
----------------------
1. Prepare an agenda for technical review meeting.
----------------------
2. Prepare a format for minutes of the meeting.
----------------------
---------------------- 8.10 COMPLEMENTARY SKILLS FOR EFFECTIVE

---------------------- COMMUNICATION
---------------------- Basic communication skills include one’s ability to speak, read, write and listen.
Usually we possess these four skills for one or more languages. However, to
---------------------- be effective, you need to optimise those skills. Some important skills that are
complementary to communication skills are presentation skills and listening
---------------------- skills. We will quickly look at each of them.
---------------------- Presentation Skills
---------------------- The presentation skills deal with how you present your ideas to the audience.
Presentation skills can be used to present your product feature to customers
---------------------- or project presentation to the sponsors. There are so many occasions where
you need to present your ideas. Presentation carries the impression of your
----------------------
product and organisation and builds the perception of the product. The quality
---------------------- of a presentation boosts the confidence of customer in your product. People are
more inclined towards the perception than acts. A good presentation helps in
---------------------- better comprehension of the idea conveyed. Unlike meetings, here the presenter
presents the idea first and if required, question and answer session can be kept
----------------------
at the end of the presentation.
---------------------- A good presenter must possess certain qualities and abilities such as proper use
of body language, confidence, controlled use of humour, use of graphics and
----------------------
voice modulation.
---------------------- Tips for effective presenting
---------------------- To be effective at presentations, you need to have a combination of skills. Some
skills are inherent; however, few of them you can learn. Remember that practice
---------------------- makes a man perfect.

1. Positive attitude and confidence is a must for effective presentation. If you Notes
are not confident about what you are saying and carry negative feelings,
you will not be able to generate the interest of audience in what you are ----------------------
talking.
----------------------
2. Keep presentation time short. 20 to 40 minutes are sufficient for conveying
your ideas. ----------------------
3. Make yourself acquainted with the infrastructure in the conference room. ----------------------
Check whether the microphone and overhead projector are working well.
----------------------
4. If you are using PowerPoint, keep all slides organised and do not exceed
bullets. Average 5 points per slide are reasonable. ----------------------
5. Adjust and modulate your voice. Monotonous speech bores the audience; ----------------------
to avoid this, change the pitch of sound.
6. Logically organise the structure of your presentation. ----------------------
7. Assess the knowledge and experience level of your audience before the ----------------------
presentation. Try to map their knowledge level and give appropriate
examples, if required. ----------------------
8. Get feedback from the audience and make sure that everything discussed ----------------------
is clear to them.
----------------------
Listening skills
----------------------
We know that effective communication requires that the communication loop
be completed. That means the receiver has understood what the sender is talking ----------------------
about. There is a difference between hearing and listening. While studying, you
may be hearing various sounds or may be hearing some music but your attention ----------------------
is concentrated on study. ----------------------
Effective listening means paying attention or concentrating on what we are
hearing. Only hearing words does not guarantee that you have understood the ----------------------
message. People are generally preoccupied with their thoughts and they may ----------------------
not be actively listening. Active listening involves our mind, all senses and our
attitudes and belief system. Active listening process entails hearing, focusing ----------------------
on message, comprehension and interpretation, analysis and response.
----------------------
Listening is a significant part of communication process. Communication
cannot take place until and unless a message is heard and retained thoroughly ----------------------
and positively by the receivers/listeners. Listening is a dynamic process.
Listening means attentiveness and interest noticeable in the posture as well ----------------------
as expressions. Listening implies decoding (i.e. translating the symbols into ----------------------
meaning) and interpreting the messages correctly in communication process.
----------------------
----------------------
----------------------
----------------------

Notes
----------------------

1. Only hearing words does not guarantee that you have _____ the
----------------------
message.
---------------------- 2. People are generally _______ with their thoughts and they may not be
actively listening.
----------------------
3. Listening is a ________ process.
----------------------
---------------------- Activity 9
----------------------
1. Information overloading is one of the main reasons why people get
---------------------- inattentive during hearing. Comment with examples.
---------------------- 2.
Justify the connection between positive attitude and good
presentation with the help of an example.
----------------------
----------------------
Summary
----------------------
●● The communication process is important in software development.
---------------------- Communication can be defined as, “the sum of all the things one person
does when he wants to create understanding in the mind of another. It
---------------------- involves a systematic and continuous process of telling, listening and
understanding.”
----------------------
●● The basic communication model comprises of sender, receiver and
---------------------- encoding and decoding of message.
---------------------- ●● Communication is said to be complete and effective when the receiver
has completely understood the message.
----------------------
●● Communication is a two-way process. It needs at least two persons
---------------------- present, without which communication is not complete and meaningful.
For the sake of simplicity, we may call the persons as sender and receiver.
---------------------- ●● In large projects, communication requirements of stakeholders are
---------------------- gathered and accordingly, the communication plan is prepared, which
describes what is to be communicated, frequency, purpose, responsibility
---------------------- etc.
---------------------- ●● Barriers keep us away from understanding other ideas and thoughts.
Barriers can appear at any time during the communication process.
---------------------- Broadly, we can classify the barriers into two parts, internal and external.
---------------------- ●● In large teams, number of communication paths increases, as the team
size increases and that further adds to the complexity.
----------------------

Keywords Notes
----------------------
●● Barriers: Something that stops or does not allow passing across
●● Skills: Ability to do something ----------------------
●● Modulate: Change in pitch of voice ----------------------
Self-Assessment Questions ----------------------
----------------------
1. Find out other skills complementary to communication skills.
2. Search for more information about listening skills on net. ----------------------
3. Name five things that you need to do to improve presentation skills. ----------------------
4. What information do you think needs to be gathered from the customer ----------------------
for effective communication planning?
5. Find out how much time project managers spend in meetings and how ----------------------
often meetings are conducted? ----------------------
6. How important are technical skills for a project manager?
----------------------
7. Explain the importance of informal communication.
----------------------
8. What communication type would you choose in the following situations?
a. Making notes regarding a telephonic conversation ----------------------
b. Trying to solve a complex problem ----------------------

c. Informing team members for poor performance ----------------------
d. Trying to discover the root cause of a problem
----------------------
e. Making changes to contract
----------------------
f. Holding review meetings
g. Conducting bidder conference ----------------------
----------------------
----------------------
----------------------
1. False ----------------------
2. True ----------------------
3. False ----------------------
----------------------
----------------------
----------------------

----------------------
1. Communication incorporates the following concepts:
----------------------
i. Information
---------------------- ii. Transfer
---------------------- iv. Meaning
---------------------- 2. Communication involves a continuous process of

i. Understanding
----------------------
ii. Listening
----------------------
3. Communication is a process of exchanging
---------------------- ii. Thoughts
---------------------- iii. Information
----------------------
----------------------
Fill in the blanks.
----------------------
1. Consolidating or grouping of ideas or thoughts or emotions into an
---------------------- understandable format is called encoding.
---------------------- 2. Receiver is responsible for decoding the message.
----------------------
----------------------
---------------------- i. b
---------------------- ii. d
---------------------- iii. a
iv. e
----------------------
----------------------
---------------------- 1. True
---------------------- 2. False
3. True
----------------------
----------------------
----------------------

Fill in the blanks.
----------------------
1. Messages in black and white come under written communication.
----------------------
2. Formal communication is structured and pre-planned.
3. Oral communication has the distinct advantage of being quick and prompt. ----------------------
----------------------
----------------------
i. d
----------------------
ii. b
iii. e ----------------------
iv. a ----------------------
----------------------
----------------------
----------------------
1. True
2. False ----------------------
3. False ----------------------
----------------------
----------------------
Fill in the blanks.
----------------------
1.
Only hearing words does not guarantee that you have understood the
message. ----------------------
2.
People are generally preoccupied with their thoughts and they may not be ----------------------
actively listening.
----------------------
3. Listening is a process.
----------------------
----------------------
Suggested Reading
----------------------
1. Rayudu, C.S. Communication
2. Rai, Urmila & Rai. Business Communication. ----------------------
3. Davis, Gordon B., Margrethe H. Olson. Management Information System. ----------------------
----------------------
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Managing Risks
UNIT
9
Structure:
9.1 Introduction
9.2 Meaning of Risk
9.3 Types of Risks
9.4 Software Project Risks
9.5 Risk Management
9.6 Risk Management Models
9.6.2 Barry Boehm’s Risk Management Model
9.6.3 Software Engineering Institute’s Risk Management Model
9.7 Steps in Risk Management Process
9.7.1 Risk Identification
9.7.2 Risk Analysis
9.7.3 Risk Resolution
9.7.4 Risk Response Planning
Summary
Key Words
Suggested Reading
Managing Risks 203

Notes
Objectives
----------------------
----------------------
• Discuss the characteristics of risk
---------------------- • Identify different types of risk
---------------------- • Explain software project risk
• Describe various models of risk management
----------------------
• Discuss the steps in the risk management process
----------------------
• Identify and analyse risk
---------------------- • Discuss the risk resolution and response planning
----------------------
9.1 INTRODUCTION
----------------------
In this unit, we will discuss the risks that can occur during project execution
---------------------- and the ways to manage them. We will study various risk management tools and
techniques.
----------------------
Let us understand the importance of managing risks. As you may be aware, risks
---------------------- are directly related to cost and time. Risks have substantial impact on these two
important aspects related to the project. Thus, an effective risk management
----------------------
strategy will save your time and money.
---------------------- We know that projects are unique in nature and progressively elaborated;
most of the times, we are not sure about the future outcome of the projects
----------------------
due to various uncertainties. As we do not have knowledge of future, problems
---------------------- may occur. Risk management deals with avoiding such problems by careful
planning. As we move ahead in the project development, we will have more
---------------------- knowledge related to various aspects of the project, thereby predicting the
appropriate outcome; more knowledge about the future will help us in reducing
----------------------
uncertainty. Though uncertainty reduces as we move ahead, we cannot say risks
---------------------- are over now. In the initial stage of software development, risk is high because
uncertainty is high.
----------------------
Unforeseen events may have adverse impact on project cost, schedule and quality.
---------------------- If risk is not carefully planned and mitigated, the project may fail. Although we
cannot predict the future, we can still minimise the impact of risk by careful
---------------------- risk management. We can reserve some budget to handle such a situation. As
---------------------- software projects are large and complex in nature and the loss may be many
million dollars more, emphasis is given to formal approach to risk management.
---------------------- Risk varies from project to project and organisation to organisation. The formal
---------------------- approach provides guidelines, with which we can systematically identify, analyse
and mitigate the risk. Risk management is integral to a project and needs to be
---------------------- managed from project initiation till its closure. The capability, experience and
judgement of the project team and the project manager are crucial for managing
---------------------- the risks.

In this unit, we will discuss what risk is and how to manage- identify and assess- Notes
risks. We will also discuss various models of risk management. So let us begin
our discussion with what risk is. ----------------------
----------------------
9.2 MEANING OF RISK
----------------------
Let us begin with the definition of risk. A risk is defined as anything, which
possesses a threat to an organisation. ----------------------
Risk is an uncertain event or condition that, if occurs, has a positive or negative ----------------------
effect on a project’s objectives. Risks are future unforeseen and uncertain events.
Risks are probabilistic in nature, meaning such event may or may not occur ----------------------
and, if it occurs, it may have one or more impacts. Every risk has two common
characteristics- uncertainty and loss or impact. For example, an unknown virus ----------------------
wipes out the entire data of the project. In this example, we do not know the ----------------------
kind of virus that will attack and when it will attack. However, it is obvious that
due to such attack, you will have to lose valuable data. Other example could be ----------------------
your project need to be integrated with third party software. If the third party
does not provide their modules and necessary support in time, your project may ----------------------
be delayed. ----------------------
All risks may not always have negative impact on the project. Such risks are called
----------------------
‘opportunity risks’. If we take that risk, we gain the benefits either in monetary
terms or improvement in process and performance. In project management, we ----------------------
need to take such risks, for example, hiring experienced and costly resources.
Though we are paying high costs, experienced resources can finish the task 10 ----------------------
times early than non-experienced resource. Here we are paying extra cost than
----------------------
usual as a premium to avoid the schedule failure. On the contrary, the risk that
may have a negative impact will be called as ‘threats’. ----------------------
It is not enough to just know what a risk is. In order to analyse, plan and mitigate
----------------------
the risks, we must know the details of the risks. These details can be expressed
as characteristics of the risk. We discussed a few characteristic of risk such ----------------------
as risks being probabilistic and uncertain in nature. These two characteristics
will help us in the identification of risk. For example, you can list down those ----------------------
activities, which are uncertain. For example, though you know that a virus
----------------------
attack will corrupt important data, you are not sure whether it will affect your
system. Once you list those uncertain activities, you can find the probability of ----------------------
their occurrence. Other things you need to know about the risk are impact of
risk, the timing of risk and frequency of risk. ----------------------
Characteristics of Risk ----------------------
Risk characteristics are the attributes of the risk and these characteristics play ----------------------
an important role in risk management.
The other characteristics of risk are: ----------------------
• Impact: Impact is the extent to which the risk can affect the project. A ----------------------
risk can be financial loss, for example, due to delay, the customer may
charge penalty or even in extreme cases, he may terminate the project. ----------------------
Managing Risks 205

Notes Sometimes reputation of a business will be at stake due to mismanagement
of the project.
----------------------
• Time: The timing defines at what stage and when the risk will occur. The
---------------------- impact of risk may vary with respect to time.
• Frequency: The frequency of risk determines how frequently a risk can
----------------------
occur. Though the chances are less, the same risk may appear many times.
---------------------- • Risk tolerance: Every organisation has certain capacity to withstand the
impacts of risk, for example, management may tolerate 5 to 10% increase
----------------------
in the initial schedule and budget. This capacity defines the tolerance
---------------------- limit of the risk. If the impact of the risk crosses this limit, it becomes
unacceptable. This extreme limit is called as threshold of the risk.
----------------------
As risks are unforeseen and uncertain, we may not get every detail such as time
---------------------- and frequency for every risk. However, one should try to get the details. The
focus of risk management is to minimise the knowledge gap of the future event
---------------------- and minimise the impacts.
---------------------- Another important nature of risk is that it may induce another risk, for example,
if your estimation fails, it will further fail your schedule and budget.
----------------------

----------------------
---------------------- 1. Which of the following is not the characteristic of risk?
---------------------- i. Impact
ii. Time
---------------------- iii. Frequency
---------------------- iv. Risk Avoidance
v. Risk Tolerance
----------------------
----------------------
Activity 1
----------------------
Identify the risk that may occur due to virus attack on your system.
----------------------
----------------------
9.3 TYPES OF RISKS
----------------------
We discussed that we cannot exactly predict the future event; however, we can
---------------------- determine the chances of such an event. Risks can be categorised into external
risk and internal risk. External risks are usually beyond our control. Some of
---------------------- the examples of external risks are delays caused by third party vendor, natural
---------------------- calamities such as earthquakes, cyclones, heavy rain and floods, diseases like
swine flu etc. These risks can cause heavy monetary loss, time loss and may
---------------------- result into decreased employee morale.

Another category of risk is usually within our control. These risks are Notes
predictable and are mostly concerned with what we have done in the past and
its future consequences. We can minimise the impact of such risks by effective ----------------------
controlling of the processes. For example, huge employee turnover, increase in
number of defects etc. By applying proper motivation strategy, we can reduce ----------------------
employee turnover; by applying proper quality management techniques, we can ----------------------
improve quality by reducing defects.
----------------------
Over a period of time and with sufficient past project experience, we can imagine
where and what may go wrong but we are not sure whether all such events will ----------------------
occur. Therefore, risks are further classified as:
----------------------
1. Known-Known risk
2. Known-Unknown risk ----------------------
3. Unknown-Unknown risk ----------------------
The following diagram depicts these three risks along with the level of ----------------------
uncertainty and the technique used to mitigate the risk.
----------------------
Project Contigency Management
Estimate Reserve Reserves ----------------------
----------------------
----------------------
----------------------
Known-Known Known-Unknown Unknown-Unknown
----------------------
----------------------
Uncertainty
----------------------
Fig. 9.1: Risk Types ----------------------
1. Known-Known Risks ----------------------
Most of the time, we know what will generally happen and about its probability
----------------------
to happen in the current project. In other words, we know the types of risk as
well as the impact of the risk. Here both the parts are known; hence it is called ----------------------
known-known type of risks. We can get the knowledge of such events from
our experience or others’ past experiences. As we know well in advance the ----------------------
occurrences of such events and we have complete information about what may
----------------------
go wrong, we can mention such information in the project management plan
and keep ready the risk mitigation plan to minimise the negative impact of such ----------------------
events.
----------------------
Most of such risks are themselves constraints, for example, improper
documentation and incorrect requirements that could delay the project ----------------------
schedule. Once you know that similar risk may exist in your current project,
you can prepare a project management plan and make it compulsory to your ----------------------
Managing Risks 207

Notes team to adhere to standard templates, conduct timely reviews and get customer
signature on requirement specifications.
----------------------
2. Known-Unknown Risks
---------------------- Many a times, we do not have complete access to the full information about
any particular event. We know only a little part of such an event based on our
----------------------
prior knowledge. For example, we know certain events, e.g. a key employee
---------------------- may leave the job prior to project completion, increase in number of defects
can delay the project schedule and cause cost overrun, system may crash due to
---------------------- hardware failure or virus threat. However, in all of the above examples, though
we know what type of risks could occur, the possibility, frequency and volume
----------------------
of the risk is unknown to us.
---------------------- For example, how many employees will leave the job and when or number of
defects that can be found etc. We know the type of risk but do not know about
----------------------
the probability and volume of loss. Hence, such types of risks are called as
---------------------- Known-Unknown risk. Such types of risk are generally taken into consideration
in risk management planning and are clearly described in the risk management
---------------------- plan. Most of the risks are assumptions and need to be noted. The unknown part
adds complexity to the management of such risks. For instance, how can one
----------------------
exactly predict the number of defects that can be found in the present project?
---------------------- In such cases, we can rely only on the experience, judgement and confidence of
the project management team and the project manager.
----------------------
3. Unknown-Unknown Risks
---------------------- In unknown-unknown risk, we are completely unaware of anything that can
---------------------- happen. We cannot identify such risk in advance since we do not know the kind
of risk that may appear and the probability of its occurrence. Managing such a
---------------------- risk is really a challenge. These risks can cause severe to less severe damage to
the project. However, there is one way to cope with such an event and it is the
---------------------- contingency budget. This budget will help us in managing such risks. We cannot
---------------------- avoid such risks but we can cope with the losses owing to the contingency plan.
Once such an event happens, then it becomes the known-known or known-
---------------------- unknown and is usually recorded in lessons learned document for future
---------------------- reference.

----------------------
Fill in the blanks.
----------------------
1. __________________ are usually beyond our control.
---------------------- 1. In unknown-unknown risk, we are very little aware of anything that
can happen.
----------------------
----------------------

Notes
Activity 2
----------------------
1. Identify various risks that are likely to occur for the following ----------------------
applications:
----------------------
a. Library management system
b. Online sales system ----------------------
c. ERP system ----------------------
2. Find out the characteristics of identified risks for the above systems. ----------------------
----------------------
9.4 SOFTWARE PROJECT RISKS
----------------------
Risk can occur any time during the project development. There can be few risks
or a large number of risks. Further, the risk can occur at any stage during the ----------------------
software development process. The occurrence of risk can affect the schedule,
----------------------
budget, quality of the project; hence, it must be important for us to understand
the types of risks and the potential sources of risk. While understanding the ----------------------
software project risk, we need to look at various sources of potential risk. The
sources of risk could be project risk, technical risk and business risk. Let us ----------------------
look into each one.
----------------------
1. Project Risk: Potential source of project risk could be from various
project processes such as project planning, execution, controlling etc. ----------------------
Projects are complex undertakings and due to their unique nature, the
----------------------
project plan may itself be a risk. Some of the potential project risks are
project estimation, budget and schedule. ----------------------
2. Technical Risk: The great source of technical risk is technology itself. ----------------------
Technical risk has serious impact on the quality and schedule of the project.
For example, a project team working with new technology such as object- ----------------------
oriented programming may delay the project schedule due to not having
enough hands-on experience with the new technology. Technical risk ----------------------
could arise due to over-optimistic attitude of the team. Often the novice ----------------------
programmers working on new technology experiment with new features.
These features may not be fully supported by the software vendor, causing ----------------------
bugs in the software.
----------------------
3. Business Risk: Business risk considerably affects the revenue of the
business. New developed software not fitting with the core strategies of ----------------------
the business, newly launched software product not appreciated by the
customer or product failure due to weak marketing are the examples of ----------------------
business risk. ----------------------
Unlike the hazards of daily living, the risks in software projects must often be
learned without the benefit of lifelong exposure. A more deliberate approach ----------------------
is required. Such an approach involves studying the experiences of successful ----------------------
Managing Risks 209

Notes project managers as well as keeping up with the leading writers and thinkers
in the field. Dr. Barry W. Boehm, in his article Software Risk Management:
---------------------- Principles and Practices, has listed the following top 10 software risk items:
---------------------- 1. Personnel shortfalls
2. Unrealistic schedules and budgets
----------------------
3. Developing the wrong functions and properties
----------------------
4. Developing the wrong user interface
---------------------- 5. Gold-plating – giving extra than required
---------------------- 6. Continuing stream of requirements changes
---------------------- 7. Shortfalls in externally furnished components
8. Shortfalls in externally performed tasks
----------------------
9. Real time performance shortfalls
----------------------
10. Straining computer-science capabilities
----------------------
----------------------

---------------------- 1. Which of the following are the potential software project risks?
i. Project risk
----------------------
ii. Schedule risk
----------------------
iii. Technical risk
---------------------- iv. Business risk
---------------------- v. Budget risk
----------------------
Activity 3
----------------------
---------------------- For Online Banking system, identify the potential source of project risk,
technical risk and business risk.
----------------------
---------------------- 9.5 RISK MANAGEMENT

---------------------- Why do we have risk? The answer could be two-fold. One reason is that no one
---------------------- can possess complete knowledge of future events, specifically about when an
event will occur. The other reason could be our past or present mistakes that
---------------------- may pose a risk for tomorrow.
---------------------- Over a period, software industry has matured enough and is able to identify
potential risks. Many common sources of risks are known, such as virus threats,
---------------------- hardware failure, power outage etc.

However, we cannot predict when that event will occur. For example, we Notes
cannot predict when power will go off or predict when the hard disk will crash.
Both of these events are risks since they can cause huge potential loss. If we ----------------------
possessed complete knowledge, we need not bother about risks, as we would
know certainly what is going to happen in the future and accordingly we could ----------------------
plan and try to minimise the impact of consequences. ----------------------
Now let us understand how our past and present mistakes or indecisiveness
----------------------
can trigger risk in future. Assume that despite issuing many warnings, if one of
your programmers could not perform well, then you need to replace him with ----------------------
another efficient programmer. If you do not take appropriate action, your project
schedule may be delayed. Here your project schedule is at risk. Another most ----------------------
common scenario is that if requirements are not properly taken, your project
----------------------
may have potential risk of project failure. In both the examples, if you control
the present situation, you could probably minimise the impact of the risk. ----------------------
The main objective of risk management is to minimise the potential impact
----------------------
of risk when it materialises. Usually, risks can be dealt with proactive as well
reactive strategy. ----------------------
Reactive Strategy
----------------------
Most of the projects fail because they do not have risk management plans.
Project teams adopt wait and watch approach. If anything bad happens, they ----------------------
start working around with trials and errors. Reactive strategy is not advisable. ----------------------
Imagine that you are handling one of the very large and complex projects. Your
team leader assumes that as a hardware system is recently installed, there will ----------------------
not be any hardware failures. He/she does not bother to take the backup of the
source and the documentation and unfortunately, a new virus attack corrupts ----------------------
the entire data. ----------------------
Proactive Strategy
----------------------
----------------------
Plan Analyze Mitigate ----------------------
----------------------
Fig. 9.2 Proactive Approach of Risk Management
----------------------
To systematically manage the project, one should adopt the formal proactive
approach to risk management in which risks are well ahead planned. The risk can ----------------------
be proactively managed by risk planning, risk assessment and risk mitigation.
----------------------
Let us take an example and explore how the risk can be managed. Assume that
you are the project manager of a small software start-up company and you are ----------------------
developing software for the client who resides outside your city. As a part of the
end user training, you invited all customers’ key employees for attending the ----------------------
entire day training program. Now what risk do you think will occur and cause ----------------------
potential loss to carry the training activity? Let us think what may go wrong.
For that, what you need to do first is make a list of the basic things that you need ----------------------
Managing Risks 211

Notes to carry out for a successful training program. The list items could be activities,
constraints or assumptions. For example, you need to have one conference hall,
---------------------- computer, software and projector (if required) and most importantly, the trainer
and customer’s end user. If anything fails, your activity may totally fail and
---------------------- your position will be at stake.
---------------------- Usually we organise and coordinate the components of the activity. But imagine
what will happen if all of a sudden the power goes off or the trainer cannot
----------------------
reach in time due to traffic or in extreme cases, if the trainer cannot come due to
---------------------- illness. Imagine the frustration of the customer and loss of his employee’s time.
Most of the end users are top management executives and they cannot afford
---------------------- loss even of one day, just because of power failure.
---------------------- In this case, risk is power failure and loss could be customer’s valuable time and
probably you may not get repeat orders from the same customer in the future.
---------------------- As a good project manager, you should behave like a good risk taker and not as
a fire fighter. It is our tendency to assume that such an event will happen rarely
----------------------
and we take it casually. If you have a proper risk management strategy, you
---------------------- can save the customer’s time if such an event occurs. The simple strategy is to
identify all potential risks such as power failure, trainer not reaching, software
---------------------- crash during training etc. Once all such risks are listed out, you can analyse and
prioritise because there could be a number of risks and you cannot plan them
----------------------
with equal priority. In the above case, power failure is the highest risk and needs
---------------------- to be planned in top priority.
Once risks are prioritised, what you can do next is develop a risk mitigation
----------------------
plan. For example, to mitigate power failure risk, you need to identify and
---------------------- analyse the alternatives such as arranging generator backup on rent or search for
conference hall equipped with battery backup. You can also think of purchasing
---------------------- UPS/inverter for your company. Likewise, you can keep other trainers ready
and ask them to carry out training without computer aid. Each such alternative
----------------------
is further analysed for cost. The purpose of the analysis is that you should not
---------------------- spend much cost on risk mitigation. The risk mitigation cost should always be
less than the cost of risk due to losses; otherwise, what is the point in doing risk
---------------------- management?
----------------------
----------------------

1. Risk can be proactively managed with the help of:
----------------------
i. Risk planning
----------------------
ii. Risk assessment
---------------------- iii. Risk control
---------------------- iv. Risk coordination
---------------------- v. Risk mitigation

Notes
Activity 4
----------------------
If you are a Project Manager for developing an SMS banking system, ----------------------
what will be your proactive strategy for risk management?
----------------------
9.6 RISK MANAGEMENT MODELS ----------------------
----------------------
The Project Management Institute, the Software Engineering Institute and Dr.
B. Boehm suggested models for risk management, which are popular among ----------------------
globally accepted practices. Let us discuss each of these models.
----------------------
The following diagram illustrates the basic risk model derived from the Project ----------------------
Management Institute risk model.
----------------------
Project Risk Management
----------------------
----------------------
Risk Risk Response Monitoring & ----------------------
Identification Analysis Planning Control
----------------------
----------------------
Qualitative Qualitative
Analysis Analysis ----------------------
Fig. 9.3: Basic Risk Model ----------------------
Project Management institute’s Risk Model consists of six processes namely ----------------------
risk management planning, risk identification, quantitative analysis, qualitative
----------------------
analysis, response planning and risk monitoring and control.
●● Risk management planning process decides how to approach and ----------------------
conduct the risk management activities of a project.
----------------------
●● Risk identification process identifies the sources of risk, potential risk
events and symptoms of risk. This process answers the question “What ----------------------
are the risks?”
----------------------
●● Risk Quantification: Subjective risk information is not enough and
need to be further quantified. By applying qualitative and quantitative ----------------------
techniques, value of risk mitigation versus value of loss is calculated.
That means, how much value of the opportunities is to be pursued by ----------------------
avoiding potential threats. ----------------------
●● Risk Response Planning: The process determines how to mitigate the
risk by identifying the reserves required in both dollars and in terms of ----------------------
efforts. This process answers the question “What should be done about ----------------------
the risk?”
Managing Risks 213

Notes ●● Risk Monitoring and Control: Once planning is over, project execution
begins. During execution, the planned risk may or may not occur. All
---------------------- these changes are continuously monitored and controlled in this process.
This process evaluates the action taken, documents the risk results and
---------------------- repeats the cycle of identification, quantification and response.
---------------------- 9.6.2 Barry Boehm’s Risk Management Model
---------------------- Dr. Barry Boehm presented his first tutorial on risk management in IEEE
computer society press in 1989. The following figure describes the basic process
---------------------- discussed in Boehm’s Risk Management Model.
Risk Identification
----------------------
Risk Assessment
Risk Analysis
----------------------
Risk Prioritization
----------------------
Risk Management
---------------------- Risk Management Planning
---------------------- Risk Resolution

Risk Control
---------------------- Risk Monitoring
---------------------- Fig. 9.4: Barry Boehm’s Risk Management Model

Boehm’s risk model comprises of two main activities, namely risk assessment
----------------------
and risk control. Risk assessment is further divided into risk identification, risk
---------------------- analysis and risk prioritisation activities. Risk control activity is further divided
into risk management planning, risk resolution and risk monitoring activities.
----------------------
• Risk Assessment: In risk assessment, you have to identify the potential
---------------------- risks. Risk identification can be accomplished with various information
gathering tools such as checklist analysis, decision driver analysis and
---------------------- problem decomposition. If the project team has experience in executing
similar projects, then known-known risks can be identified with a
----------------------
checklist. If project domain is totally a new decision, driver analysis and
---------------------- problem decomposition can be used. Identified risks are further analysed
for qualitative and quantitative factors. After risk analysis, the risk priority
---------------------- is decided, based on the relative potential for occurrence and impact of
identified risk on project.
----------------------
• Risk Control: Risk control process comprises of risk management
---------------------- planning, risk resolution and risk monitoring. Risk management can
---------------------- be accomplished with the help of tools, e.g. consulting risk experts,
risk avoidance, risk transfer etc. Risk avoidance is a means of finding
---------------------- a way to avoid the risk and risk transfer means transferring part of the
risk to the insurance agency by paying the premium. Risk resolution is
---------------------- accomplished through prototypes, simulations, benchmarking etc. During
---------------------- the risk monitoring process, all risks are tracked and corrective actions
can be taken.
----------------------

9.6.3 Software Engineering Institute’s Risk Management Model Notes
The Carnegie Mellon University’s Software Engineering Institute developed a
----------------------
software risk model. The model is based on Shewhart-Deming Plan-Do-Check-
Act Cycle. The model provides information and feedback on the risk activities, ----------------------
current risk and emerging risks. SEI risk model comprises of five processes as
described below. ----------------------
Control ----------------------
----------------------
----------------------
Track Identify
----------------------
----------------------
Paln Analyze ----------------------

----------------------
Fig. 9.5: Software Engineering Institute’s Risk Management Model ----------------------
●● Identify: Advance searching of risk before it is materialised.
----------------------
●● Analyse: Transfer risk data into decision-making information and evaluate
impact, probability, timeframe and classification and prioritisation of risk ----------------------
done in risk analysis process.
----------------------
●● Plan: Plan describes the risk information data along with mitigation plan
and the ways to implement those action plans. ----------------------
●● Track: In this process, risk indicators and mitigation actions are ----------------------
continuously monitored.
●● Control: During project execution, if anything deviates from the risk ----------------------
management plan, it is to be corrected during control process.
----------------------
----------------------
Fill in the blanks.
1. Boehm’s risk model comprises of two main activities, namely ----------------------
______________ and ____________. ----------------------
----------------------
1. Identify the processes of the SEI risk model.
i. Identify ----------------------
ii. Analyse ----------------------
iii. Manage
iv. Monitor ----------------------
v. Control ----------------------
Managing Risks 215

Notes
Activity 5
----------------------
---------------------- Study the Shewhart-Deming Plan-Do-Check-Act Cycle.
----------------------
9.7 STEPS IN RISK MANAGEMENT PROCESS
----------------------
After studying risk management, let us discuss the various steps involved in
---------------------- risk management process:
---------------------- 9.7.1 Risk Identification
---------------------- Risk identification means identifying what may go wrong during the project.
The methods that can be followed to identify the risk are checklist of potential
---------------------- risk, project survey, brainstorming and problem decomposition. Checklist is a
document that describes what the risks on the past projects that have occurred
---------------------- were and what to check during the project execution. For example, the checklist
---------------------- may contain checkpoints such as check for hardware configuration, sufficient
power backup, whether data is archived, whether proper document is maintained.
---------------------- From these checkpoints, you can identify most common risks that can occur in
the project.
----------------------
Historical records from past projects can help to identify the risks. Every
---------------------- organisation prepares one document called lesson-learned-document, which is
prepared after completion of the project. It broadly describes learning from
---------------------- experience. Experience may be good or bad. It also explains how the project
---------------------- team tackled any risk. You can refer to this document to identify the risk.
Brainstorming and review of project survey also help if the project domain is
---------------------- new to the project team. During risk identification process, you must understand
the company culture and the risk tolerance limit of the organisation.
----------------------
Company culture can also be a source of risk, for example, many organisations
---------------------- do not follow documentation and communication standards, they do not have
well defined roles and responsibilities. This may create chaos and the blame
----------------------
game takes over. Knowing the project background and project scope statement
---------------------- and charter are prerequisite for accurate risk identification. The list is endless.
Depending on the complexity of the project, you can add or eliminate the potential
----------------------
sources of risk. Most of the project managers tend to identify risk themselves;
---------------------- instead, they should involve their team members in risk identification process.
As the team is a discrete composition, team members can come with risk
---------------------- related to their task. Programmers, for example, can share technical risk more
effectively than a separate source for identifying all such risks.
----------------------
We will look at some common sources of risks such as business impact, customer
---------------------- characteristics, process definition, development environment, technology and
human resource. With the help of these categories, you can find out sources of
----------------------
risk by asking relevant questions in that category. For example, if your projects
---------------------- are using rational unified framework, you can check whether your team is

having sufficient hands-on experience; otherwise, it becomes a technological Notes
risk.
----------------------
Business impact of risk
Impact of risk on business can be identified with the following checklist: ----------------------
1. Effect of product on company revenue ----------------------
2. Government constraints specific to the product ----------------------
3. Cost of delay
----------------------
4. Whether product aligns with customer needs and the level of sophistication
----------------------
5. Compatibility of the product with other software
These are some of the checkpoints with which you can find out the business ----------------------
risk.
----------------------
• Customer risk
----------------------
As each customer is unique, they have different sets of needs. The organisation
culture, the domain of the customer, their needs for the product can be different ----------------------
for different customers. Hence, you need to carefully consider all such aspects
while identifying the risk since they can be a potential risk to your project. Some ----------------------
of the common risks associated with the customer are the past experiences with ----------------------
the customer. If the customer is new, the risk is comparatively higher than the
existing customer. ----------------------
Customer’s knowledge about the product and the ability to explicitly define the ----------------------
product requirement is needed. If customer is not clear with the requirements,
your project may be at high risk. Availability of customer time and his willingness ----------------------
to share the knowledge etc. are some of the areas that need to be given attention
during risk identification. ----------------------
• Process risk ----------------------

Major percentage of risk is related to the processes that are followed for software ----------------------
development. If processes are not well defined and cannot be controlled, they
can be a great source of project risk. To assess process-related risks, you ----------------------
can check up whether your organisation has a written policy statement that
----------------------
emphasises the importance of standard processes for software development.
Is there a written description of the process that explains how to execute the ----------------------
process and measure the process? Does your organisation provide formal
training on process standards and team’s compliance with the standards? Is ----------------------
there any process for tracking and reviewing the performance of third party
----------------------
vendors? Is there any configuration management system followed to maintain
consistency among software processes? Does your organisation follow regular ----------------------
formal technical reviews to improve the process further and remove deficiency
if any? All these are process-related concerns. The answers to these questions ----------------------
will tell you the maturity level of the process. Immature processes are a big
----------------------
source of potential risk.
----------------------
Managing Risks 217

Notes • Human resource related risk
Let us quickly look at the questions suggested by Boehm to assess the risk
----------------------
associated with staff experience and size.
---------------------- • Are the best people available to execute the project?
---------------------- • Do the people have right combination of skills?
---------------------- • Are enough people available?

• Is the staff committed for the entire duration of the project?
----------------------
• Does the staff have the right expectations about the job at hand?
----------------------
• Has the staff received necessary training?
---------------------- • Will turnover among the staff be low enough to allow continuity?
---------------------- If the answer to any of these questions is “no”, further investigation should be
undertaken to assess the risk potential.
----------------------
Risk identification tools
---------------------- Let us discuss the tools that can be used in risk identification.
---------------------- Broadly, risk can be identified with documentation reviews, information
gathering techniques, diagramming techniques, checklists and assumption
----------------------
analysis, Delphi technique and SWOT analysis. These tools are generally used
---------------------- for information gathering.
• Delphi technique
----------------------
Quite often, during risk management, there is no consensus about the identified
---------------------- risk across the project stakeholders and dispute on what to be included as a risk.
To help resolve this issue, Delphi technique can be used. Delphi technique is
----------------------
used to build consensus of experts who participate anonymously. The technique
---------------------- is based on the principle that the opinions of structured group are more accurate
than those of unstructured group.
----------------------
Delphi technique is a method for structuring a group communication process
---------------------- so that the process is effective in allowing a group of individuals as a whole
to deal with a complex problem. In this technique, a request for information is
---------------------- sent to the experts. Then the experts answer the questionnaires in two or more
---------------------- rounds. After each round, a facilitator provides an anonymous summary of the
experts’ answers including forecast from previous round as well as reasons they
---------------------- provided for their judgements. Thus, experts are encouraged to revise their
earlier answers in light of the replies of the other members of their panel. It is
---------------------- believed that during the process, the range of the answers will decrease and the
---------------------- group will converge towards the correct answer. The process is stopped after
the predefined criteria such as number of rounds, achievements of consensus,
---------------------- stability of results etc. Delphi technique helps to reduce bias in the data and
keep any one person from having undue influence on the outcome.
----------------------
----------------------

• SWOT analysis Notes
SWOT analysis is the most common and widely accepted tool developed by
----------------------
Albert S. Humphrey. This tool is mainly used in decision-making and planning.
It can be presented in many ways, as in four Quadrant diagram. SWOT analysis ----------------------
tool is generally used to analyse the Strengths, Weaknesses, Opportunities and
Threats of a particular risk. ----------------------
SWOT analysis is a flexible concept that can be used in various scenarios from ----------------------
assessing projects or business ventures, making decisions, solving problems,
evaluating candidates for a position to marketing strategy formulation and in ----------------------
our project management for risk planning. In the SWOT analysis technique,
----------------------
each risk is plotted in the four quadrants, namely Strengths, Weaknesses,
Opportunities and Threats. The Quadrants where the weaknesses and threats are ----------------------
the highest and the quadrants where strengths and opportunities are the lowest
will represent the highest risk on project. ----------------------
Carrying out a SWOT analysis involves identifying internal strengths and ----------------------
weaknesses as well as examining external opportunities and threats and then
seeing how they relate to each other. This interesting insight alerts you to ----------------------
your weaknesses so that no threat can catch you unaware any longer. With
----------------------
little thought, you can understand your strengths and uncover the greatest
opportunities that you are well placed to take advantage of and thus achieve ----------------------
your goals.
----------------------
Let us understand how to take an inventory of the four components.
Strengths: These are the internal attributes that add value and give you a ----------------------
competitive edge over others. If you have enough strength, you can easily cope ----------------------
with a risk. For example, if your team is technically competent, you can manage
technical risks easily. In order to identify the strength of the team, you can ----------------------
explore the questions like where does your team do well, what advantages you
have over others and what relevant resources you have access to. ----------------------
Weaknesses: Weakness is generally a gap in or lack of capacity and capability. ----------------------

In order to cope with the risk, you need to reduce your weakness and increase
the strength. You can identify weak areas with the help of probing questions ----------------------
such as what are you not doing well, what should you improve, what should you ----------------------
avoid etc. Usually, the weakness of one team member can be compensated by
another. Examples of weakness could be poorly defined process model, inability ----------------------
to achieve results, lack of experience, inferior service, damaged company
reputation or poor communication. ----------------------
Opportunities: Opportunities are external factors. Sometimes it is risky to ----------------------

handle a technically complex project but it opens an opportunity for future
----------------------
projects. Your team will have an opportunity to learn on new technology that
they can use in other projects. ----------------------
Threats: Threats are external obstacles in your path that are largely beyond
----------------------
your control. They are characterised by unfavorable trends like employee
turnover, system crash and obsolescence, competitors with superior skills/ ----------------------
Managing Risks 219

Notes products, changing requirements and changing technology. Yet, what constitutes
opportunities and threats is largely subjective; a situation of ‘an unfulfilled
---------------------- consumer need’ can be an opportunity for a company that can meet that need
while a threat to another company that cannot.
----------------------
On the whole, a formal SWOT analysis not only increases your awareness of
---------------------- the unique situation you or your firm is in but it will also provide you a roadmap
to maintain, build and leverage your strengths as well as deter or eliminate
----------------------
weaknesses so as to pursue, exploit and capitalise on the opportunities even
---------------------- while avoiding, countering or at least defending against potentially devastating
threats.
----------------------
9.7.2 Risk Analysis
---------------------- Once you have identified the risk, the next task to be performed is analysis of
the risk. Can you manage every identified risk in available time and budget?
----------------------
In reality, a project has time and budget constraints. Practically, you cannot
---------------------- mitigate every identified risk within these constraints. To manage the available
budget effectively, you need to set the priority of the risk such as high priority,
---------------------- moderate, critical, low risk etc. Top management generally sets the criterion for
priority. Risk analysis process helps us to set the priority of all identified risks.
----------------------
In risk analysis, all identified risks are further analysed for their qualitative and
---------------------- quantitative aspects.
---------------------- • Qualitative analysis

The main objective of qualitative analysis is to set the priority of all identified
---------------------- risks so that you can filter out top priority risk to a manageable level. Qualitative
---------------------- analysis process comprises activities such as identification of risk characteristics,
qualitative analysis of data, categorisation of risk and prioritisation based on
---------------------- available data. Qualitative analysis is an iterative process and may occur many
times during project execution.
----------------------
i. Identification of risk characteristics: We know that to measure qualitative
---------------------- aspect, we should know the characteristics of that object. Hence, in order
to perform qualitative analysis, we must identify the characteristics of
---------------------- the risk. The characteristics of the risk will help us to distinguish one risk
---------------------- from other. Once we distinguish risk based on their characteristics, we
can analyse and set the priority. The characteristics of a risk are generally
---------------------- decided by the organisation. Some of the examples of characteristics are
probability of a risk, impact of a risk on project objective, category of the
---------------------- risk, time frames, risk tolerance, etc.
---------------------- ii. Qualitative analysis of data: Once characteristics of risks are identified,
qualitative data for each risk is collected through interview, reference
----------------------
data of past projects. Once data is collected, every risk is assessed for
---------------------- its probability and impact on the project. While collecting data, enough
precaution needs to be taken to protect data from the bias of individual.
----------------------
----------------------

iii. Risk prioritisation: Risk priority can be defined as the degree of risk Notes
exposure of the risk on project. The risk exposure can be calculated as
product of probability of risk and the loss or impact of the risk, Risk ----------------------
Exposure = Probability x Impact.
----------------------
Assume that probability of power failure is one and the loss (here major
loss is time loss) is 10000 dollars due to power failure, thus by substituting ----------------------
values, we can calculate the risk exposure for power failure risk as RE
----------------------
= 1x10000 = 10000 dollars. You can calculate risk exposure for each
identified risk and give priority as per the degree of risk exposure. ----------------------
iv. Categorisation of risk: We have seen various categories or sources of
----------------------
risk in risk identification process. During risk categorisation process, all
risks along with the priority are grouped as per their categories and further ----------------------
analysed. Categorisation helps in relative study of the risk that leads to
the better understanding of possibility and magnitude of risk in similar ----------------------
categories.
----------------------
• Quantitative Risk Analysis
----------------------
The main objective of quantitative analysis is to provide the overall risk
estimation of the project to the management. In qualitative analysis, we only ----------------------
focus on individual risk. However, these qualitative details need to be compiled
and given to the management. ----------------------
Management basically needs to know whether the project can meet the specified ----------------------
objective, how much contingency reserves are required to provide the level
of certainty based on risk tolerance, what risk areas threaten maximum loss ----------------------
etc. This kind of information can be generated after the quantitative analysis ----------------------
of qualitative data. Quantitative risk analysis covers all the risks. Quantitative
analysis is generally performed after qualitative analysis. However, in a small ----------------------
project, both qualitative and quantitative analyses are done simultaneously after
risk identification. ----------------------
Tools and Techniques ----------------------

For quantitative analysis, two types of techniques are used. Data is first gathered ----------------------
and represented. Once data is gathered, it can be further modeled and analysed.
For analysis and modeling, techniques such as sensitivity analysis, expected ----------------------
monetary value analysis, decision tree analysis and Monte-Carlo analysis could
----------------------
be used. All these techniques are based on mathematical and statistical methods.
Prior knowledge of statistics will help you to understand the techniques in ----------------------
more detail. Few techniques such as Monte-Carlo are rarely used in software
project management. The knowledge of these tools becomes essential when the ----------------------
project is quite complex and large. Knowledge would be beneficial but it is not
----------------------
necessary that you should use all these tools in all projects.
9.7.3 Risk Resolution ----------------------
The main purpose of overall project risk management is to effectively cope up ----------------------
with risk with minimum loss to the project. With proper risk resolution strategy,
we can mitigate the risk. Once you have identified all risks and analysed the ----------------------
Managing Risks 221

Notes impact of risk qualitatively and quantitatively, you can plan what you are going
to do to mitigate that risk. This plan is called as ‘risk response plan’ or ‘risk
---------------------- mitigation plan’.
---------------------- Risk Resolution Strategy
Risk resolution is defined as the action taken to transfer, reduce or eliminate
----------------------
risks in a project. This is done by reducing the scope and quality without having
---------------------- any substantial impact on the objectives of the project. This is done to reduce
the impact of any uncertainty on a project caused by circumstances that have
---------------------- not been foreseen during its planning. A risk resolution strategy is a plan, which
takes the overall view to mitigate the risks and safeguard investment activities.
----------------------
The plan will detail the specific risks that will have to be dealt with and the
---------------------- action that has to be taken to carry out this risk resolution strategy. We will
discuss below most commonly used risk resolution strategies.
----------------------
• Proactive prevention
---------------------- Risk mitigation is a proactive strategy in which the actions are taken to reduce
---------------------- the impact of risk and minimise the probability of risk. For example, you can
hire or assign an experienced resource to handle the complex activities of the
---------------------- project. Though it will not avoid the risk, the impact can be substantially reduced.
If the project is too large and the team is dispersed across the globe, you can use
---------------------- automated tools to support software engineering and project management tasks.
---------------------- • Keep complex risk outside the scope
---------------------- Sometimes your team is not competent enough to handle technically complex
project and outsourcing is a risk. In that case, the only option that remains is to
---------------------- avoid that risk. You can negotiate with the customer and eliminate the complex
portion of the scope.
----------------------
• Outsource the risk
----------------------
If the above two options do not work and the customer insists on keeping the
---------------------- critical requirements in the scope, the only option remains is to transfer the risk
to some expert agency and get the work done from them. It is similar to the
---------------------- life insurance cover we get from insurance agency by paying a premium. In
outsourcing, you generally share some portion of the profit of the project like
----------------------
a premium. At the same time, the expert agency (other organisations that carry
---------------------- out the risky area of the project) bares the loss due to risk.
---------------------- As we discussed, sometimes we need to take risks that are beneficial. It is

like investing in share market. You must know various strategies to deal with
---------------------- positive risk or opportunities.
---------------------- • Invest More

In order to handle more complex projects and take the competitive advantage,
---------------------- you can hire more experienced personnel by paying them best of the industry
---------------------- pay package. You can keep reserve staff to handle more projects at a time. As
----------------------

you invest more in technology and resources or anything else, for example, Notes
maintain various standards such as CMMI, initially you have to invest but as
you invest, you will reap more benefits than your competitors. ----------------------
Co-creation ----------------------
We have discussed that some of the risks are basically constraints. For example,
----------------------
your organisation’s core area is to provide business solutions like ERP. However,
certain projects require system-level programming, which your organisation ----------------------
does not support; in that case, you can venture with other partners who are
experts in system programming. ----------------------
9.7.4 Risk Response Planning ----------------------
In risk response planning process, a response or strategy is developed for each ----------------------
item in the risk prioritisation list. It may include a primary choice and a backup
option. Responses to the risk can be further categorised in three methods: ----------------------
1. Accepting the consequences if the event occurs. In this, active acceptance ----------------------
would involve developing a contingency plan that would be executed if
the risk occurs. Passive acceptance would allow the risk event to occur ----------------------
(e.g. making less money if the project is a few weeks late).
----------------------
2. Avoiding the consequences by eliminating possibility of the event from
occurring. ----------------------
3. Mitigating the risk by minimising the probability of occurrence or ----------------------
minimising the value of the impact or by deflecting (or transferring) the
risk elsewhere (in a software project, this might mean passing the risk ----------------------
onto a subcontractor or to the customer).
----------------------
Typical responses for risk include procurement, contingency planning,
alternative strategies and insurance. With procurement, products or services are ----------------------
acquired from outside the project to help mitigate the risk (e.g. hire a consultant
----------------------
who has experience with the new technology being used). As mentioned above, a
contingency plan indicates active acceptance of the risk. Developing alternative ----------------------
strategies is one possible means of avoiding a risk (e.g. a different approach to
development may eliminate a risk). Bonding is an example of insurance, which ----------------------
minimises the impact of a risk. Once the strategies have been determined, they
----------------------
should be documented in a risk management plan or as part of the project plan.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Managing Risks 223

Notes
----------------------

1. ___________________ is used to build consensus of experts who
----------------------
participate anonymously.
---------------------- 1. To check whether your organisation has a written policy statement is
required for which of the following risks?
----------------------
i. Business impact risk
---------------------- ii. Process risk
---------------------- iii. Customer risk
---------------------- iv. Human resource risk
----------------------
1. For quantitative analysis and modelling, which of the following
---------------------- techniques are used?
---------------------- i. Sensitivity analysis
---------------------- ii. Delphi technique
iii. Expected monetary value analysis
----------------------
iv. Decision tree analysis
----------------------
v. SWOT analysis
---------------------- vi. Monte-Carlo analysis
----------------------
---------------------- Activity 6
---------------------- 1. As the project manager for a major software company, you have
---------------------- been asked to lead a team that is developing online bill payment
system. Identify, analyse and prepare the risk response table.
----------------------
2. Discuss with software project managers as to how they do the risk
---------------------- analysis and the techniques used for the same.
----------------------
Summary
----------------------
●● Software risk management is an essential and important activity in
---------------------- software project management.
---------------------- ●● Software development is complex in nature. It imposes various risks such
as cost and schedule overrun, technological and business risks.
----------------------

●● Risks are nothing but unforeseen events, which are probabilistic in nature. Notes
●● Risk may or may not occur but we need to make a risk contingency plan
to mitigate that risk. ----------------------
●● Risks are important because risks have negative impact on projects in ----------------------
terms of direct monetary loss or loss of reputation, project failure etc.
----------------------
●● Risks occur because of various constraints such as knowledge of future,
technical competency, resources and budgets etc. ----------------------
●● Risk should be treated negatively but sometimes risks reap benefits; such
----------------------
risks are called positive risk or opportunity while negative risks are called
threats. For example, viral threat can damage valuable data, a key person ----------------------
may leave the job, this can cause schedule delay etc.
----------------------
●● Based on the level of uncertainty, risks are classified as known-known
risk, known-unknown risk and unknown-unknown risk. ----------------------
●● In unknown-unknown risk, we are completely unaware of anything that
----------------------
can happen. We cannot identify such risk in advance since we do not know
the kind of risk that may appear and the probability of its occurrence. ----------------------
●● The sources of risk are project risk, technical risk and business risk.
----------------------
●● The three risk management models insist on proactive strategy of risk
identification, risk planning and risk mitigation. ----------------------
●● In the steps for the risk management process, we begin with risk ----------------------
identification. Then risks are qualitatively and quantitatively analysed
where we calculate risk exposure and other risk characteristics such as ----------------------
tolerance, priority etc. After that, the risk resolution strategies and risk
response plan is prepared. ----------------------
----------------------
Keywords
----------------------
●● Risk: Risk is defined as anything, which possesses a threat to an
organisation. ----------------------
●● Impact: Impact is the extent to which the risk can affect the project. ----------------------
●● Known-Known Risks: In this, we know the types of risk as well as the ----------------------
impact of the risk.
●● Known-Unknown Risks: In this, we know only a little part of such an ----------------------
event based on our prior knowledge. ----------------------
●● Unknown-Unknown Risks: In this, we are completely unaware of
anything that can happen. ----------------------
●● Risk Identification: This process identifies the sources of risk, potential ----------------------
risk events and symptoms of risk.
----------------------
●● SWOT analysis: This tool is generally used to analyse the Strengths,
Weaknesses, Opportunities and Threats of a particular risk. ----------------------
●● Risk Resolution: This plan is called as ‘risk response plan’ or ‘risk
----------------------
Managing Risks 225

Notes mitigation plan’. It is defined as the action taken to transfer, reduce or
eliminate risks in a project.
---------------------- ●● Risk response planning: in this process, a response or strategy is
---------------------- developed for each item in the risk prioritisation list.

----------------------
1. Discuss the importance of risk management in software development.
---------------------- 2.
Describe the difference between known-known and known-unknown
risks.
----------------------
3. Explain different types of project risks.
----------------------
4. What are the risk management models? Explain each one of them in brief.
---------------------- 5. Write short notes.
---------------------- a. SWOT analysis
---------------------- b. Proactive risk
c. Risk resolution
----------------------
---------------------- Answers to Check your Progress

---------------------- 1. Which of the following is not the characteristic of risk?

iii. Frequency
----------------------
----------------------
---------------------- 1. External risks are usually beyond our control.

1. False
----------------------
----------------------
---------------------- 1. Which of the following are the potential software project risks?
---------------------- i. Project risk
---------------------- iii. Technical risk

v. Budget risk
----------------------
----------------------

----------------------
1. Risk can be proactively managed with the help of:
----------------------
i. Risk planning
ii. Risk assessment ----------------------
v. Risk ----------------------
----------------------
----------------------
Fill in the blanks.
----------------------
1.
Boehm’s risk model comprises of two main activities, namely risk
assessment and risk control. ----------------------
1. Identify the processes of the SEI risk model.
----------------------
i. Identify
----------------------
ii. Analyse
v. Control ----------------------
----------------------
Fill in the blanks.
----------------------
Delphi technique is used to build consensus of experts who participate
1.
anonymously. ----------------------
To check whether your organisation has a written policy statement is
1.
----------------------
required for which of the following risks?
ii. Process risk ----------------------

1. For quantitative analysis and modelling, which of the following techniques ----------------------
are used?
----------------------
i. Sensitivity analysis
iii. Expected monetary value analysis ----------------------
iv. Decision tree analysis ----------------------
vi. Monte-Carlo analysis ----------------------
----------------------
----------------------
Managing Risks 227

Notes
Suggested Reading
----------------------
1. Hughes, Bob & Mike Cotterell. Software Project Management. Tata
---------------------- McGraw Hill Publishing Company Limited.
2. Lewis, James. Project Planning, Scheduling and Control. Tata McGraw
----------------------
Hill Edition.
---------------------- 3. Pressman Roger. Software Engineering – A Practitioner’s Approach.
Singapore: McGraw Hill International.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Software Configuration Management (SCM)
UNIT
10
Structure:
10.1 Introduction
10.2 Multiple Versions of Software
10.3 Traceability and Impact Analysis
10.4 Capability to build any Past Version
10.5 SCM Concepts
10.6 Role of Librarian and Automated Tools
Summary
Key Words
Suggested Reading
Software Configuration Management (SCM) 229

Notes
Objectives
----------------------
----------------------
• Discuss the factors that guide the software developers to come up
---------------------- with several versions of a software product
---------------------- • Explain the importance of traceability and impact analysis

• Describe the steps in Software Configuration Management (SCM)
----------------------
• List the roles and responsibilities of librarian in SCM
---------------------- • Elaborate on the SCM tools
----------------------
---------------------- 10.1 INTRODUCTION

----------------------
In the previous units, we have studied various technical aspects of software
---------------------- project development. In this unit, we will study some techno-managerial issues
related to version control. Software project undergoes a series of changes
---------------------- throughout the project development life cycle and while we incorporate these
changes, we create multiple versions of various documents such as software
----------------------
requirement specification or design documents etc. Also, multiple software
---------------------- builds are created in this process of change.
In order to manage this change, we require a robust system. In this unit, we will
----------------------
study the concept of Software Configuration Management (SCM) and learn of
---------------------- its importance in the software development process.
You will find that the capability to build any of the past versions is at the heart
----------------------
of SCM and that in turn, it boils down to the age-old concept of traceability.
---------------------- Towards this traceability, the software companies designate a person as a
librarian who keeps track of all the relevant details, obviously with an automated
---------------------- tool for the same.
----------------------
10.2 MULTIPLE VERSIONS OF SOFTWARE
----------------------
If you look at any software that has been reasonably stable in the market for a
---------------------- few years, you will quickly infer that it must have been a successful and popular
product, well received by the customers at large. Probably one might not be
----------------------
aware of the fact that there may be multiple versions of the same software
---------------------- product available with the same nucleus of functionality but with several
variations in the peripheral features. In some extreme cases, the version count
---------------------- may run into several dozens for one and the same software product. Let us try
to understand this scenario.
----------------------
There are two major reasons behind the multiple versions of a software product:
----------------------
----------------------

1. Increasing Customer Base Notes
As the software gets more and more popular among a growing clientele, there
----------------------
are certain factors that fuel the need for multiple versions. These factors could
be quickly summed up as follows: ----------------------
a.
Functional / Scaling Flavours: Some jumbo software products come
----------------------
in different varieties to appeal to different market segments. Multi-firm
accounting software may offer capabilities to record financial entries ----------------------
of multiple firms in the corporate group, whereas a simple version may
confine itself to just one single unit. ----------------------
b.
Statutory Needs: Laws of nations / states do differ substantially and ----------------------
hence require some functionality that is specific to that state. For digital
signatures, our Indian law recognises MD-5 and SHA-1 only as hashing ----------------------
solutions and others will not have a valid legal backing.
----------------------
c.
Work Culture: Due to large geographical differences, there are quite
a few distinct requirements to suit the work culture of every country or ----------------------
region. As the lunar calendar is still followed in countries like Nepal, ----------------------
software churning out date arithmetic like interest calculations based on
the typical solar calendar definitely will not fit well there. ----------------------
d.
Domain Specific Issues: Based on the functional area, the requirements ----------------------
might undergo some change making customisation a must. A pair of
scissors denoting the ‘cut’ operation in windows parlance has an altogether ----------------------
different significance in the medical field where it may be interpreted as
‘surgery’. ----------------------
e.
Accounting Practices: A vast variety in accounting principles and ----------------------
practices may give birth to multiple versions of software. Software may
have a version that is GAAP compliant on the international scenario. ----------------------
f.
Language Varieties: As the world is rapidly turning into be a global ----------------------
village, the software products reaching out to far off places do offer
----------------------
distinct versions in the respective regional languages. MS-Office is now
available in Tamil, for example. ----------------------
g.
Accessibility Options: Towards making operations easier for physically
----------------------
challenged persons, some software versions are produced with specific
provisions. For persons suffering from a hearing impairment, the software ----------------------
would produce a visual signal on the monitor rather than simply give an
audio beep. ----------------------
h.
Operational Platforms: Some software products are offered with a ----------------------
heterogeneous hardware and software platform to run on. Obviously,
there are different versions in such cases. Text processor software comes ----------------------
in two versions: one for Windows and another for Macintosh.
----------------------
i.
Customer Needs: Lastly, for some customers, some peculiar needs are
almost inevitable and hence have to be incorporated in the software. A ----------------------
bank having a unique deposit scheme may request its software solution ----------------------
provider to customise it.

Notes 2. Progressing Time Line
Apart from the above-mentioned factors contributing to a plethora of versions,
----------------------
now we will look into one more aspect of advancing time line. As time passes
---------------------- by, there are newer and newer versions frequently rolled out by the developer,
due to the following reasons:
----------------------
a.
Debugging: A software product without a single error or bug is a Utopian
---------------------- idea that does not exist in reality. Coming to the large software products,
there are quite a few bugs practically making it necessary that they are
---------------------- removed and a new rectified version is brought out. This corrective
maintenance adds more versions to the software.
----------------------
b.
Enhancements: Another reason behind the multi-versions is that with
---------------------- changing time, changing business environment forces more functionality
changes that have to be incorporated in the software on a regular basis.
----------------------
This adaptive maintenance also gives rise to the version count in a big
---------------------- way.
---------------------- Due to all these factors, there could be several versions for a single software
product. To control and manage this large number of versions for a software
---------------------- product, we need to have a system that is capable of handling this tedious task.
This is where Software Configuration Management (SCM) plays a vital role.
----------------------

----------------------
---------------------- 1. Identify which of the following are some of factors that fuel the need
for multiple versions among a growing customer base.
----------------------
i. Functional / Scaling Flavours
----------------------
ii. Domain Specific Issues
---------------------- iii. Enhancements
---------------------- iv. Language Varieties
---------------------- v. Debugging
----------------------
Activity 1
----------------------
---------------------- By surfing the Internet, try to find out different versions of software that
are available for any software of your choice.
----------------------
----------------------
10.3 TRACEABILITY AND IMPACT ANALYSIS
----------------------
Before we look into what is Software Configuration Management is, let us
---------------------- understand another important aspect related to traceability.

Look at a very generic example of a vehicle when it starts giving some problem Notes
and you need to take it to a garage. As a user of the vehicle, all you do is
just describe the symptoms of the malfunctioning as perceived by you. Before ----------------------
actually fixing the problem, the first job of the mechanic is to isolate the faulty
part in the automobile. He may take a trial drive and figure out that something ----------------------
is wrong in the fuel injection system. Next, he may conduct some tests and ----------------------
ultimately zero in to say that the carburetor is the real culprit. Then he may
dismantle the various gantries to reach out to that part, isolate it and test it ----------------------
to decide whether rework is good enough or a complete part replacement is
essential. ----------------------
This process – described in management parlance as isolating the troubling ----------------------

element in the system – runs parallel to the debugging procedure in software
----------------------
maintenance.
Obviously, like a mechanic possesses the competence to logically (and ----------------------
physically, too) dismantle the automobile to get through to the faulty part, the
----------------------
software engineer too needs the capability to logically (though not physically)
decompose the complete software with a guiding light of the symptoms of the ----------------------
bug. This decomposition is a gradual and iterative process that turn by turn
descends to sub-systems, modules, programs and finally the defective line of ----------------------
code in the program.
----------------------
A software development firm without such traceability skills would hardly
survive in this competitive world any longer than an auto-mechanic lacking the ----------------------
knack of pinpointing and fixing the vehicle problem. This capability is therefore
----------------------
quoted as one of the prime proficiencies of a software organisation.
Such traceability starts out with the end product of the software, as rolled out ----------------------
to customers and then gradually tracks back through the various SDLC phases ----------------------
of programming, designing, analysis and user requirements until the defect is
neatly located. Again, it will be worth noting that this process is to be followed ----------------------
not only for debugging or corrective maintenance, but also for enhancements or
adaptive maintenance. This point may look odd, but it would be clear once we ----------------------
see the proposed enhancement in the functionality as an error in the software, ----------------------
as if it was the left out point while developing the earlier version. With that
standpoint, it will be instantaneously appreciated that whether you want to ----------------------
remove a bug or to insert a new functionality, the traceability is the common
starting point. ----------------------
Another important aspect is related to impact analysis. It is interesting to note ----------------------

that merely identifying the exact problem area is just a starting point. You may
feel that once the defect is isolated, it could be fixed right away. Unfortunately, ----------------------
the fact is that there is one more laborious job called ‘Impact Analysis’ to be ----------------------
done before actually patching up the program.
During impact analysis, the software developers go ahead to systematically ----------------------
enlist all the possible artifacts of the software that would be influenced with the ----------------------
proposed modification. Such artifacts are twofold:
----------------------

Notes 1. Software Items
These cover the various work products of software, which are:
----------------------
1. Source programs & Process specifications
----------------------
2. Software design documents such as Data flow diagrams, UML
---------------------- diagrams etc
---------------------- 3. Table design & ERDs

4. Codification Schemes
----------------------
5. Input & Output Formats
----------------------
2. Allied Items
---------------------- These include the related items such as:
---------------------- 1. Complete Documentation
---------------------- 2. User / Operations Manuals

3. Training Material, if any
----------------------
4. Project Implications on Time & Cost
----------------------
All the above points are minutely studied, not just to enlist those getting
---------------------- affected by the proposed change, but also to find out what is the exact change
that each artifact needs to undergo to ensure a holistic and coherent working in
---------------------- the functionality of the software as a whole.
----------------------
----------------------

1.
During _______________, the software developers go ahead to
---------------------- systematically enlist all the possible artifacts of the software that
---------------------- would be influenced with the proposed modification.
----------------------
Activity 2
----------------------
---------------------- While developing the software, the requirements were missed and the
software application was given for testing to the test engineers. The testers
---------------------- found that in the software built, some requirements are missing. How will
you trace the error to find the gap in all the relevant documents?
----------------------
----------------------
10.4 CAPABILITY TO BUILD ANY PAST VERSION
----------------------
Software developers need to exhibit the capability to build any of the past
---------------------- versions of their software product. This is quite crucial for their own credibility
and their organisation’s reputation for the following reasons:
----------------------

1) Customer Request Notes
It may be possible that a customer needs a relatively older version for reasons
----------------------
like platform compatibility, ease and convenience of use, need for processing
the older data records and so on. To maintain their customer’s satisfaction, the ----------------------
organisation may need to build one of the previous versions, which is no longer
much used. ----------------------
2) Litigation ----------------------
As the software is utilised for some commercial application, there are high
----------------------
stakes and a heavy reliance on the software product. At times, the customer and
developer may not keep their rapport intact; in extreme cases, litigation is also ----------------------
not ruled out. For such exigencies, the software developer needs to demonstrate
a competence to build up that disputed version so that its functionality could be ----------------------
assessed.
----------------------

----------------------
----------------------
1. Software developers need to exhibit the capability to build any of the
past versions of their software product. ----------------------
----------------------
Activity 3
----------------------
Find out if there are any software used in your organisation, which are ----------------------
built upon some older version.
----------------------
----------------------
10.5 SCM CONCEPTS
----------------------
The rationale behind the capability to build any past version is now clear, but
a question that may arise in your mind is, “Why is there so much ado about ----------------------
it?” The reason is simple. It is a Herculean task to maintain a neat track of past
versions of software, particularly its components and their respective version ----------------------
numbers, as explained in this section. Complexities in real life are much more
----------------------
than what they appear to be in theoretical discussions.
Let us consider this example to help you further grasp the exact scope and ----------------------
complexity involved in handling multiple versions of software. Let us think of a ----------------------
banking software product that helps banks to maintain their customer database
comprising all types of accounts and to put through a variety of transactions ----------------------
across all branches of that bank.
----------------------
As we know by this time, there would be many versions of this software. Now
if we try to build up a matrix having version numbers to be put in columns and ----------------------
components in the rows, it may look somewhat like the two-dimensional Table
10.1, where all the cells show a version number of the respective component ----------------------

Notes (in the row) that goes into the final software product (marked as the column
header).
----------------------
Table 10.1: Versions of Software
---------------------- Software Product Version 1 Version 2 …. Version N
---------------------- 1. DFDs / UML diagrams
2. ERDs
----------------------
3. Flow Charts
---------------------- 4. Tables/ Files
5. Codification
----------------------
6. Input Formats
---------------------- 7. Output Format
---------------------- 8. Process Spec’s
…..
---------------------- …..
---------------------- Each of the items in the rows – DFD’s / UML diagrams, ERD’s, Table/ File
design etc. – has been indicated just as a category; in a real life scenario, each
----------------------
of them gets expanded into several rows, few dozens of tables and scores of
---------------------- report layouts and so on. Thus, the actual size of such a table would easily run
into several hundred rows (one each for a component going in to the software)
---------------------- and many dozens of columns (one each representing a specific version of the
software).
----------------------
The software developers, right from the beginning, neatly and meticulously
---------------------- manage this complete table. Initially, all the components (and the deliverable
end product, too) will bear the version number 1. Later on, as and when a new
----------------------
component in the software is added, a line would be added for the same and
---------------------- cells of that row on past columns will be marked as ‘Not applicable’ indicating
that the particular component was not on the scene for the earlier versions of
---------------------- the software.
---------------------- Likewise, whenever a new version of software is getting ready, a new column
would be added to the table with the column header bearing the new version
---------------------- number for that software product. All the values in the immediately preceding
---------------------- column would be copied onto this new column and the version number of only
those components (in this newly added column) would be incremented, where
---------------------- some modifications are done to the components; the remaining components
would retain their individual version numbers as per the preceding column.
----------------------
All these botherations are to be scrupulously tackled as the version numbers of
---------------------- the end product and components do not advance uniformly. On advancement of
any version of the software product, only those components that have undergone
---------------------- some change will simultaneously increment their respective version numbers,
---------------------- while the other components, which have not been altered, will carry their earlier
version number as in the past.
----------------------

This is the crux of the SCM and obviously, the software development Notes
organisation needs to plan the SCM process, devote certain resources to it and
regularly monitor this critical factor. ----------------------
The aim of Software Configuration Management (SCM) is to provide the best ----------------------
solution for handling changes in software projects. SCM identifies the functional
and physical attributes of software at various points in time during the software ----------------------
development. It also performs systematic control of changes to the identified
----------------------
attributes for maintaining software integrity and traceability throughout the
software development life cycle. ----------------------
The Software Configuration Management process defines the need to trace the
----------------------
changes, and the ability to verify that the final delivered software has all of the
planned enhancements that are supposed to be included in the software. ----------------------
For the software project to ensure that a sound SCM process is implemented, it
----------------------
follows the following steps. These are:
1. Configuration identification ----------------------
2. Configuration control ----------------------

3. Configuration status accounting ----------------------
4. Configuration audits
----------------------
• Configuration identification: It is the process of identifying the attributes
that define every aspect of a configuration item. A configuration item is a ----------------------
product (hardware and/or software) that has an end-user purpose. These
----------------------
attributes are recorded in configuration documentation and baselined.
When we create a baseline, an attribute forces formal configuration ----------------------
change control processes to be effected in the event that these attributes
are changed. ----------------------
• Configuration change control: It is a set of processes and approval stages ----------------------
required to change a configuration item’s attributes and to re-baseline it.
Configuration control involves managing and controlling changes to the ----------------------
SCIs, baselines and software releases throughout the software life cycle. ----------------------
It is an element of configuration management, consisting of evaluation,
coordination, approval or disapproval and implementation of changes ----------------------
to configuration items after formal establishment of their configuration
identification ----------------------
• Configuration status accounting: It is an element of configuration ----------------------
management, consisting of the ability to record and report on the
configuration baselines associated with each configuration item at any ----------------------
moment of time. ----------------------
• Configuration audits: Configuration audits are broken into functional
and physical configuration audits. They occur either at delivery or at the ----------------------
moment of effecting the change. A functional configuration audit ensures ----------------------
that functional and performance attributes of a configuration item are
achieved, while a physical configuration audit ensures that a configuration ----------------------

Notes item is installed in accordance with the requirements of its detailed design
documentation.
----------------------
----------------------

---------------------- 1. Which of the following is associated with configuration status
accounting?
----------------------
i. Identifies the attributes that define every aspect of a configuration
---------------------- item
---------------------- ii. Set of processes and approval stages required to change a
configuration item’s attributes and to re-baseline them
----------------------
iii. Occur either at delivery or at the moment of effecting the change
---------------------- iv. Consists of the ability to record and report on the configuration
baselines associated with each configuration item
----------------------
----------------------
Activity 4
----------------------
---------------------- Prepare a table similar to Table 10.1 to track the changes made to your
documents.
----------------------
---------------------- 10.6 ROLE OF LIBRARIAN AND AUTOMATED TOOLS

---------------------- In the modern world with large software projects, the specialised task of SCM
---------------------- has to be assigned to a skilled expert often called the ‘Librarian’. He is the
person who has authority over custody of all the software components that are
---------------------- tantamount to work-in-progress and finished goods and has an accountability
to build any of the past versions of the software products. A quick look at the
---------------------- librarian’s task list runs thus:
---------------------- 1. Custody of all software artifacts
---------------------- The librarian has complete possession of all the intermediate software products
(often referred to as work products) like:
----------------------
a. Source code for all the software products
---------------------- b. Test Suit consisting of various test transactions
---------------------- c. Design items like:
---------------------- i. Tables/ File Layouts & ERD’s

ii. Process specifications, flowcharts etc.
----------------------
iii. Input & output layouts
----------------------
iv. Codification schemes
d. Document related to Analysis done for user requirements Notes
e. Requirements collected from and signed off by users
----------------------
At any point in time, the librarian must have a full access and control over all
these artifacts across all versions of all software products. These articles in his ----------------------
custody are called configuration items.
----------------------
2. Check In / Out of Configuration Items
----------------------
Each member of the software development team is expected to work on some
software component and accordingly borrows that item from the librarian and ----------------------
returns it once the work is completed. Thus, a programmer may get design
specifications issued from the librarian (just a read access, as he is not expected ----------------------
to modify it) and the latest version of the program (with write access as he is ----------------------
expected to modify the program to take it to the next version). A designer may
request the librarian to issue the latest version of some specific item, say a ----------------------
particular data file / table design.
----------------------
3. Tracking the Lent out Items
The librarian has to maintain a complete inventory assigned to him for each ----------------------
software product. He also keeps a track of all the items lent out to various ----------------------
colleagues. This tracking includes:
----------------------
a. Work product item along with ID, Name and Version No.
b. Name of the borrowing member ----------------------
c. Purpose of Lending – Read, Review, Rework, Enhance ----------------------
d. Issue mode Read / Modify mode
----------------------
e. Date of Issue
f. Expected Date of Return ----------------------
g. Actual Date of Return ----------------------
h. New Version No. Assigned (If returned, duly modified)
----------------------
4. Inter-Relations among All Configuration Items
----------------------
From the earlier discussions, it would now be clear to you that the librarian needs
to maintain inter-relations among the configuration items for each software ----------------------
product. This is essential to avoid cases where two members simultaneously
handle an item disturbing the dependencies. Consider a scenario where a ----------------------
designer modifies a specific data file layout and at the same time, a programmer ----------------------
writes a program handling the older data file layout.
5. Building up a version of the software product ----------------------
As a paramount function, the librarian builds up a specific version of a particular ----------------------

software product as per the directions of the concerned project head. Obviously,
----------------------
at this point, there are no lent out items for that software product, as that may
lead to internal inconsistencies in the software. Once software ‘build’ takes ----------------------
place and is tested, the version number is frozen. All subsequent modifications
to any components would relate to the next version, not the frozen one. ----------------------

Notes 6. Drawing up a Status Report of Configuration Items
It is also one of the duties of the librarian to provide a current position of
----------------------
various library items to the concerned project heads to enable him to review and
---------------------- monitor the progress of the project and take any necessary actions of modifying
the schedules etc. that may be reflected in the librarian’s due date, wherever
---------------------- necessary.
---------------------- From all these discussions and also in view of the tremendous expanse of the
various software products and their many work products, the librarian’s job
---------------------- cannot be performed without automated tools at his disposal.
---------------------- Software Configuration Management Tools
---------------------- SCM Tools are the tools and utilities used in administering the source code,
building software, install packaging, defect tracking, change management and
---------------------- managing software configurations.
---------------------- Some SCM tools are available in the market. One of such tools is the Rational
ClearCase’s SCM Tools for revision control. It is developed by the Rational
---------------------- Software division of IBM. ClearCase forms the base of version control for
many large and medium sized businesses and can handle projects with hundreds
---------------------- or thousands of developers. Besides this, there are tools such as Concurrent
---------------------- Version System (CVS), Subversion (SVN), PVSC, MKS Integrity etc.
Such software utility tools prove helpful for the following tasks:
----------------------
1. Maintenance of list of all the software development team members
----------------------
2. Record keeping of all the software artifacts in soft copy form
---------------------- 3. Maintaining actual copies of each software artifact across all versions
---------------------- 4. Tracking the inter-dependencies of software artifacts
---------------------- 5. Validating the issue of software artifact for consistency / dependency

6. Recording the issues with details of members, artifact and work mode
----------------------
7. Recording returns of such software artifacts from members
----------------------
8. Providing a status report (date-wise, version-wise, member-wise etc.)
---------------------- 9. Assembling the desired components for software build
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
1. Which of the following are the roles of the librarian?
----------------------
i. Custody of all software artifacts
----------------------
ii. Check In / Out of Configuration Items
iii. Tracking the Lent out Items ----------------------
iv. Making revision to the documents ----------------------

v. Building up a version of the software product ----------------------
----------------------
1. Software utility tools help in keeping of all the software artifacts in
hard copy form. ----------------------
----------------------
Activity 5 ----------------------
----------------------
1. With the help of internet, find out various tools used in the IT
industry for software configuration management. ----------------------
2. Find out various open source SCM tools. ----------------------
----------------------
Summary
----------------------
●● An abundance of versions is very common for noted software products
----------------------
due to several reasons which makes it essential to have multiple versions
of the same software. ----------------------
●● Owing to customer requests for supply or the court directives in case of
----------------------
contingency of any litigation, version control is a critical issue for any
software developer who has to be able to build any version of the software ----------------------
products he offers. The software development team must meticulously
maintain a systematic and elaborate record of all the intermediate products ----------------------
across all the versions.
----------------------
●● The steps in the SCM process consist of Configuration identification,
Configuration control, Configuration status accounting and Configuration ----------------------
audits.
----------------------
●● Version control is possible with a dedicated expert called librarian, who
should be provided with the necessary software tools for automation of ----------------------
the task. The task of the librarian can be made easier with the help of
SCM tools. ----------------------
----------------------

Notes ●● SCM Tools are the tools and utilities that are for change management and
managing software configurations.
----------------------
---------------------- Keywords
---------------------- ●● Impact analysis: In this, the software developers systematically enlist

all the possible artifacts of the software that would be influenced with the
---------------------- proposed modification.
---------------------- ●● Software configuration management (SCM): It provides the best
solution for handling changes in software projects.
---------------------- ●● Configuration identification: It is the process of identifying the attributes
---------------------- that define every aspect of a configuration item.
●● Configuration change control: Configuration control involves managing
---------------------- and controlling changes to the SCIs, baselines and software releases
---------------------- throughout the software life cycle.
●● Configuration status accounting: It consist of the ability to record and
---------------------- report on the configuration baselines associated with each configuration
---------------------- item at any moment of time.
●● Configuration audits: Configuration audits are broken into functional
---------------------- and physical configuration audits.
---------------------- ●● Librarian: The person who has authority over custody of all the software
components that are tantamount to work-in-progress and finished goods
---------------------- and has an accountability to build any of the past versions of the software
products.
----------------------
●● Software Configuration Management Tools: Used in administering the
---------------------- source code, building software, install packaging, defect tracking, change
management and managing software configurations.
----------------------

---------------------- 1. State and explain the steps used in the implementation of SCM.
---------------------- 2. Discuss in detail the role of librarian in SCM.
---------------------- 3. What different tasks can be performed for configuration management
with the help of automated tools?
----------------------
4. Explain the following briefly:
---------------------- a. Traceability
---------------------- b. Impact Analysis
----------------------
----------------------
----------------------

Answers to Check your Progress Notes
1. Identify which of the following are some of factors that fuel the need for
multiple versions among a growing customer base. ----------------------
i. Functional / Scaling Flavours ----------------------

ii. Domain Specific Issues ----------------------
iv. Language Varieties
----------------------
----------------------
1. During impact analysis, the software developers go ahead to systematically ----------------------

enlist all the possible artifacts of the software that would be influenced
----------------------
with the proposed modification.
----------------------
1. True
----------------------
----------------------
1. Which of the following is associated with configuration status accounting? ----------------------
iv. Consists of the ability to record and report on the configuration ----------------------
baselines associated with each configuration item
----------------------

1. Which of the following are the roles of the librarian?
----------------------
i. Custody of all software artifacts
----------------------
ii. Check In / Out of Configuration Items
----------------------
iii. Tracking the Lent out Items
v. Building up a version of the software product ----------------------
----------------------
----------------------

Notes State True or False.
1. False
----------------------

---------------------- Pressman Roger. Software Engineering – A Practitioner’s Approach.
1.
---------------------- Singapore: McGraw Hill International.
----------------------
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----------------------

Update yourself: Current Trends
UNIT
11
Structure:
11.1 Introduction
11.2 Global Nature of Software Projects with respect to India
11.3 Tools used in managing Global Projects
11.4 Challenges in managing Global Projects
11.5 Challenges due to New Software Development Models
Summary
Update yourself: Current Trends 245

Notes
Objectives
----------------------
----------------------
●● Explain the current trends, issues in managing software projects.
---------------------- ●● Describe the dynamics of managing global software projects.
---------------------- ●● Apply the new techniques used in project management.
----------------------
---------------------- 11.1 INTRODUCTION
---------------------- So far we have understood what software projects are and what processes are
used for managing them. This gives the insider view of project management.
---------------------- But project management cannot be misunderstood as a static process. It also
has influence on the external world and gets in turn influenced by the changes
----------------------
in the external world.
---------------------- Earlier software projects consisted of software development which required
design and coding as the main activities. Soon the clients started demanding
----------------------
testing and analysis also from the development team. So consultancies as well
---------------------- as software development companies started supporting entire SDLC and all the
activities came under software project management umbrella. Recently software
---------------------- projects consist of end-to-end processes starting from problem identification till
the maintenance/governance.
----------------------
It is a common scene now-a-days that a software project may need contribution
---------------------- from people across the globe. The embedded software may be developed in
---------------------- Illinois, client specific software in UK, Prototype software and hardware in
Texas and application software in India. Because of this, the way the software
---------------------- projects were handled changed significantly over the years. In this unit, we are
going to discuss processes and its impact on software project management.
----------------------
---------------------- 11.2 GLOBAL NATURE OF SOFTWARE PROJECTS WITH

RESPECT TO INDIA
----------------------
The information technology revolution in the developed world had begun
---------------------- to take root and shortage of skilled programmers and IT professionals were
---------------------- beginning to develop. By this time, a number of Indians were working in very
substantial numbers in overseas firms. Some of them played an important,
---------------------- although as yet undocumented role, in bridging the gap and matching the buyers
in the overseas with the suppliers in India. Responding quickly to the growing
---------------------- demand, a number of Indian firms arose in quick time. Contrary to its normal
---------------------- practice, the State encouraged this growth by considerably simplifying the
process for obtaining the numerous clearances and permits that any firm in the
---------------------- organized sector in India typically needs. Finally, given the many weaknesses in
the Indian financial system, Indian entrepreneurs greatly benefited from the low
---------------------- levels of initial investment required to start a software service firm.

From very humble beginnings, the Indian IT Industry has grown at an Notes
exponential rate over the past 10 years doing Rs. 10,000 crore of export, fetching
for India valuable foreign exchange, propping up the Indian Stock Market with ----------------------
its share prices reaching dizzying heights before the scam, and employing
over 2 lakh professionals with this number poised to rise to around 20 lakh in ----------------------
another 3 years. India missed the Agrarian, Industrial and the early Computer ----------------------
Revolutions but became a global player in the IT revolution because of two
main factors - opening up of the markets and India’s cheap and vast manpower ----------------------
with knowledge of English. Right from 1991 to 2000, Indian companies grew at
a mind-boggling rate of 200-500% attracting lucrative projects from companies ----------------------
all over the world, especially the US. ----------------------
The global digital transformation market size is expected to rise at a CAGR
----------------------
of 18.56 per cent from US$ 1.2 trillion in 2017 to US$ 2 trillion in 2020. India’s
IT industry is increasingly focusing on digital opportunities as digital is poised ----------------------
to be a major segment in the next few years. It is also currently the fastest
growing segment, growing over 30 per cent annually. ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig. 11.1: Market Size of IT Industry in India
As a natural consequence of the growth in software development and in ----------------------
globalization, there has been a significant growth over recent years in global ----------------------
software development projects. These are projects that disperse software
development processes across national boundaries. ----------------------
The driving force behind the globalization of software projects is largely ----------------------
economic. Global dispersal of activities can take advantage of the cost savings
and labour availability offered by developing countries. It also reflects the ----------------------
globalization of businesses, which find themselves with software requirements
----------------------
and software personnel spread around the globe. All this has been enabled by
the global diffusion of information and communication technologies (ICTs). ----------------------
Globalization of software projects therefore brings benefits compared with one-
country projects. ----------------------

Notes The Indian labour is not only cheap but is technically skilled too to the world
class level. It is due to the Indian Education System that includes in its course
---------------------- curriculum the practical knowledge of the latest technology that is developed in
the world along with the fluency in English Language that imparts compatibility
---------------------- in an Indian technician to communicate and work throughout the world.
---------------------- Further, the geographical location of India serves it the advantage of being
exactly halfway round the world from the US west coast, which is another reason
----------------------
why India is a preferred destination of many big brands. Also, the presence of
---------------------- a large number of Indians, especially engineers, in the US gave India an easy
entry into the US software market.
----------------------
---------------------- Activity 1
---------------------- 1. State the advantages of software projects going global.

---------------------- 2. What are the drivers for global software projects?
----------------------
---------------------- 11.3 TOOLS USED IN MANAGING GLOBAL PROJECTS
---------------------- As the project infrastructure and team is distributed across the globe,
it becomes more challenging to manage such projects successfully. The
---------------------- tools used in project management in such situations should be standardized,
internationalized and compliant with the various policies specific to that country.
----------------------
1. Communication tools
----------------------
E-mail, teleconferencing, video conferencing are some of the tools used
---------------------- now-a-days for facilitating the communication among the global teams.
A frequency - may be once a week – is used for such a communication.
---------------------- There are messengers and tools like SKYPE which are used for text,
audio as well as video conferencing simultaneously.
----------------------
2. Project management tools
----------------------
Generally, in a typical global software project, the core technical team will
---------------------- be responsible for assigning high-level tasks to team leads, and team leads
create and assign individual tasks to their team members. Organizations
---------------------- must have tools to create, assign and manage tasks to the global team leads
---------------------- and to individual developers. Often, when requirement, responsibilities,
and priorities need changes in a project, the core team responsible for
---------------------- managing the project must have capabilities to reassign and move the
tasks among the team members to achieve the project milestones. At any
---------------------- given time, it should be possible for the project management to get the
---------------------- real-time status of the project’s progress.
3. Documentation tools
----------------------
The distributed documentation servers are employed for maintaining all
---------------------- documentation related to the project in a common repository which is

accessible to the entire team situated anywhere in the globe. The content Notes
management systems and knowledge management portals even help
in this aspect to provide a convenient support. Some such systems are ----------------------
developed by software companies for their internal use.
----------------------
4. Development tools
----------------------
Developers working in global teams often communicate with each other
to perform tasks like share source code snippet, conduct code review, ----------------------
perform test cases, design diagrams, share exception stack traces, etc,
on real-time. They may also remotely debug to solve a specific issue. ----------------------
Organizations must have tools to support this feature to achieve the full
----------------------
benefits of global team development. UML modelling tools and IDE tools
should be appropriately selected to suit the project environment. ----------------------
----------------------
Activity 2
----------------------
1. Explain the significance of project management tools in a global
scenario. ----------------------
2. List the various development tools used in global software projects. ----------------------
3. Explain the difficulties that will arise due to the lack of appropriate ----------------------
communication tools in managing global software projects.
----------------------
----------------------
11.4 CHALLENGES IN MANAGING GLOBAL PROJECTS
----------------------
There are numerous challenges in managing global projects ranging from
infrastructure to people management. Let us consider each one of them on the ----------------------
following parameters.
----------------------
1. Distributed working environment
----------------------
Inconsistent software development environment is a big issue in global
software development, here environment includes IDE, source code ----------------------
repository, database tools, application server, build and deploy tools,
testing tools, etc. Every developer working in the global team must have ----------------------
same version and release of software environment. The plug-in used by
----------------------
one developer may not be usable by other developers or it may be of
different version. Often times, these plug-in create “marker code” when ----------------------
checked into the source code control and if retrieved by other developers
may corrupt their IDEs. Individual software team members dealing with ----------------------
these types of issues will significantly reduce their productivity and
----------------------
thereby increase the overall project budget.
Generally, in a typical global software project, the core technical team will ----------------------
be responsible for assigning high-level tasks to team leads, and team leads
----------------------
create and assign individual tasks to their team members. Organizations
must have tools to create, assign and manage tasks to the global team ----------------------

Notes leads and to individual developers. Often, requirement, responsibilities,
and priorities change in a project; the core team responsible for managing
---------------------- the project must have capabilities to reassign and move the tasks among
the team members to achieve the project milestones. At any given time, it
---------------------- should be possible for the project management to get the real-time status
---------------------- of the project’s progress.
2. Time differences
----------------------
Time difference is one of the factors in offshore software development
---------------------- projects which can become a pro or a con depending on how it is managed.
It is imperative that a “common” time zone is mutually agreed on by you
----------------------
and the offshore vendor. This time should be used for communication
---------------------- and ironing out issues faced by the development team. Though it might
take some time to get used to getting into the office at 7AM, it pays
---------------------- good dividends in the long run. While working on different time zones,
it becomes really important for offshore team to understand time zone
----------------------
differences and plan the activities accordingly. In most of the cases it had
---------------------- been seen that the onsite team expects at least 2-3 hour time zone lap so
that both onsite and offshore team can participate in the meeting.
----------------------
3. Language barriers
---------------------- Although in India English is used for most of the official communication
---------------------- and people are comfortable using it, the same is not true when it comes
to eastern countries. Still various languages are used by them and even
---------------------- a translator has limitations in making you comfortable to communicate
with them. The potential for business exists in such countries. They also
---------------------- have skilled people to support the operations but in such a case to connect
---------------------- to the people in that country, language might prove as a barrier.
To overcome this problem, there are two way efforts required. There is an
---------------------- initiative seen in the non-English speaking countries for awareness and
---------------------- skills in English language. Also, you can find several foreign language
classes in India.
---------------------- 4. Cultural differences
---------------------- If your project team is spread all over the globe, you will sometimes scare
yourself with the amount of prejudice you have when dealing with people
----------------------
from different cultures. Humans have a tendency to categorize everything,
---------------------- including people. Different cultures result in different behaviours of
people. But before you try to draw conclusions about an entire continent,
---------------------- why not just start with the individual project team member instead. There
are following assumptions which I present here as representative once:
----------------------
i) Future - present - past orientation
----------------------
For some cultures history will determine the future, so the past is
---------------------- very important. Others, mainly South-American cultures, believe
the past cannot be changed, the future cannot be predicted, and
---------------------- only the present can be influenced. And then there are the Western

cultures who believe that with hard planning, proper preparation Notes
and thorough analysis, the future can be captured.
----------------------
ii) Time-plentiful versus time-is-money
There is a huge difference in life if you believe that time is an ----------------------
unlimited resource; the sun sets and will rise again, always, over
----------------------
and over again. Time is plentiful. Tomorrow the same amount of
time is left as today. If you put this world view in contrast with ----------------------
the idea that time is passing and will never come back, you might
see how the concept of deadlines can be confusing between some ----------------------
cultures.
----------------------
iii) Respect for the man
----------------------
In the Netherlands there is a problem with authority. People like to
see their bosses as equals, and tend to treat them as such. Respect is ----------------------
something that should be earned, and hierarchy and upbringing has
nothing to do with that. And even with respect, that doesn’t mean I ----------------------
have to treat someone differently. That is atleast the opinion of the ----------------------
majority of the Dutch people.
In other parts of our planet, upbringing and hierarchy have a lot to ----------------------
do with getting respect. And disagreement with a respected person ----------------------
is unthinkable. This is the widely known yes from Indian people
(yes, I know, the whole continent) that is misunderstood by their ----------------------
western colleagues.
----------------------
iv) Me versus us
----------------------
There is a world of difference if you behave from the idea that you
operate as an individual or that you operate as a small part of a ----------------------
collective.
----------------------
v) Spelling everything out versus its only natural
Even I learn something everyday. It is normal that everything ----------------------
is expressed in detail, information is explicitly provided, and ----------------------
everything is spelled out for you. And then there are the countries
where they assume that you have some shared knowledge, some ----------------------
intelligence and a mind of your own. For this latter culture, it is
almost insulting to get everything spelled out like that. ----------------------
vi) Doing everything at once or one thing after the other ----------------------
There is an old discussion that women are better in multi-tasking ----------------------
than men. This is about the fact that some cultures doing more
than one thing at a time is just normal. So if you are talking with ----------------------
someone and he is taking phone calls also at the same time, it might
be insulting in one culture, but it can also be just plain normal ----------------------
behaviour in another. ----------------------
With respect to the above points, it becomes necessary to consider
----------------------
these things while dealing with distributed project teams. Sometimes

Notes Indian software firms are proactive in training their employees
before sending them onto foreign assignments. There are several
---------------------- trainings available in the market for understanding and acquiring
etiquettes and manners in different parts of the globe.
----------------------
5. Acceptance to Indian teams
----------------------
It is quite evident from the above discussion that if you are interacting or
---------------------- working with someone from a different culture, obviously you will trust
that person 100% of the times, or may not find it comfortable dealing with
---------------------- him/her. The same is true for teams. Because of the preconceived notions,
people do not accept the teams, their ideas, and their working style. One
----------------------
work around for this problem is to standardize the processes followed on
---------------------- work and obey some international standards for project management such
as PMI or PRINCE2.
----------------------
6. Legal aspects
---------------------- By working on projects, firms are doing business in different countries.
---------------------- It is mandatory for them to abide by the policies of that country in which
they are operating. There are issues due to different currency rates,
---------------------- different licensing rules for same software in different countries. Different
countries have different compliances which need to be complied with.
----------------------
---------------------- Activity 3
----------------------
1. List down the challenges in managing global software projects.
---------------------- 2. What are the assumptions in the minds of people that become significant
in global environment?
----------------------
3. List the ways to overcome the language barriers.
----------------------
----------------------
11.5 CHALLENGES DUE TO NEW SOFTWARE
---------------------- DEVELOPMENT MODELS
---------------------- As we know, project management is the overall umbrella of processes to
---------------------- manage the software development and engineering, the two are interlinked.
By now, you must have learnt software development models and especially
---------------------- Rational Unified Process and Agile development. In this point, we are going
to see what differences have these process models made to the way projects
---------------------- are handled. Mainly the above mentioned two software development models
---------------------- demand a different approach to managing the projects.
Let us understand the two models first:
----------------------
1. Rational Unified Process (RUP)
----------------------
This is a process model designed and marketed by IBM Rational.
---------------------- According to IBM, it is a comprehensive process framework that provides

industry-tested practices for software and systems delivery and implementation Notes
and for effective project management. It is iterative development model.
----------------------
It has 4 phases, namely, Inception, Elaboration, Construction and
Transition. Each succeeding phase builds on the work accomplished in the ----------------------
previous phase and develops the program into a usable product that is likely to
attract the attention of end users. ----------------------
Software developers begin the Rational Unified process by entering into ----------------------
what is known as the inception phase. At this point, the focus is on defining the
purpose and function of the software. This includes the identification of what ----------------------
the software is intended to accomplish that is not being done by other programs
----------------------
on the market.
The second stage is known as the elaboration phase. Here the Rational ----------------------
Unified Process demands that the scope and purpose defined in the inception
----------------------
phase be scrutinized and broken down into the essential building blocks needed
to begin developing the specific architecture for the software program. Each ----------------------
aspect of the program is analyzed thoroughly and the relationship between
individual functions is defined. ----------------------
After completion of the elaboration phase, the construction phase of ----------------------
the Rational Unified Process begins. Here, all the building blocks that were
identified and created during the elaboration phase begins to be assembled into ----------------------
a workable product. It is here that the programmer begins to lay out the final ----------------------
application design and also refines the source code. Beta testing also takes place
during this phase. ----------------------
The final stage of the Rational Unified Process is known as the transition ----------------------
phase. This is simply the point at which the programmer’s work is essentially
done and the software is made available to end users. ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig. 11.2: Rational Unified Process Phases
----------------------

Notes There are several benefits of using RUP:
1. It enhances team collaboration
----------------------
IBM has several other tools for increased collaboration among the team
---------------------- such as Rational Team Unifying Platform which integrates with RUP to
provide the best possible team performance. You can easily determine if
----------------------
a RUP team is on track or not, and redirect them if required.
---------------------- 2. Addresses project risk with iterative processes
---------------------- Working incrementally allows higher risks to be addressed early. If there
is a question about whether or not a requirement can be met or a technical
---------------------- challenge can be overcome, it can be addressed in an early iteration. If
---------------------- it cannot be implemented or can be implemented but in a manner which
does not meet the stakeholders’ needs, the project can be refocused or
---------------------- cancelled outright.
---------------------- 3. Improved governance

As you can monitor the performance of the team and because of the
---------------------- iterative nature of the process, the governance metrics can be defined and
---------------------- managed easily.
4. Implement the actual requirements
----------------------
By developing systems in smaller iterations, you can react to any
---------------------- changes and thereby build software which meets the actual needs of your
stakeholders instead of their perceived needs which were documented
----------------------
months or years earlier. Changes in requirements that impact later
---------------------- iterations do not impact the work being done on the current iteration. In
addition, changes to requirements within the current iterations are easier
---------------------- to deal with because the scope of requirements in each iteration is smaller.
Changes to previous iterations are simply scheduled as new requirements
----------------------
in future iterations.
---------------------- Six best practices as described in the rational unified process is a paradigm
---------------------- in software engineering that lists six ideas to follow when designing any
software project to minimize faults and increase productivity. These
---------------------- practices are:
---------------------- ●● Develop iteratively: It is best to know all requirements in advance;

however, often this is not the case. Several software development
---------------------- processes exist that deal with providing solution on how to minimize
cost in terms of development phases.
----------------------
●● Manage requirements: Always keep in mind the requirements set
---------------------- by users.
●● Use components: Breaking down an advanced project is not
----------------------
only suggested but in fact unavoidable. This promotes ability to
---------------------- test individual components before they are integrated into a larger
system. Also, code reuse is a big plus and can be accomplished
---------------------- more easily through the use of object-oriented programming.

●● Model visually: Use diagrams to represent all major components, Notes
users, and their interaction. “UML”, short for Unified Modeling
Language, is one tool that can be used to make this task more ----------------------
feasible.
----------------------
●● Verify quality: Always make testing a major part of the project at
any point of time. Testing becomes heavier as the project progresses ----------------------
but should be a constant factor in any software product creation.
----------------------
●● Control changes: Many projects are created by many teams,
sometimes in various locations, different platforms may be used, ----------------------
etc. As a result, it is essential to make sure that changes made to a
system are synchronized and verified constantly. ----------------------
2. Agile Software Development ----------------------
The very meaning of the term agile is lively, alert, and responsive. In a ----------------------
way, this methodology tries to be an alert and responsive methodology
of project management. In 2001, this term was coined when the agile ----------------------
manifesto was formulated. This method is based on iterative development
and self-organizing team work. Agile project management takes the ideas ----------------------
from Agile software development and applies them to project management. ----------------------
Agile methodologies generally promote a project management process
that encourages stakeholder involvement, feedback, objective metrics ----------------------
and effective controls.
----------------------
Following methods are popularly used in Agile practices:
----------------------
1. Extreme Programming (XP)
It is intended to improve software quality and responsiveness to ----------------------
changing customer requirements. It advocates frequent releases in short
----------------------
development cycles, which is intended to improve productivity and
introduce checkpoints where new customer requirements can be adopted. ----------------------
Extreme Programming has been described as having 12 practices, grouped
into four areas: ----------------------
a. Fine scale feedback by the means of pair programming, planning game, ----------------------
test-driven development, whole team
----------------------
b. Continuous process which is exercised by continuous integration,
refactoring or design improvement and small releases ----------------------
c. Shared understanding for coding standards, collective code ownership, ----------------------
simple design, system metaphor
d. Programmer welfare i.e. sustainable pace ----------------------
----------------------
----------------------
----------------------
----------------------

Notes The concept is that programmers or software developers should not work
more than 40 hour weeks, and if there is overtime one week, that the next
---------------------- week should not include more overtime.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
---------------------- Fig. 11.3: Processes in extreme programming
---------------------- The methodology takes its name from the idea that the beneficial elements
of traditional software engineering practices are taken to “extreme” levels.
---------------------- 2. Feature Driven Development (FDD)
---------------------- FDD blends a number of industry-recognized best practices into a
cohesive whole. Its main purpose is to deliver tangible, working software
----------------------
repeatedly in a timely manner.
---------------------- A feature is a client-valued functionality. The process model is based on
the features at its centre. The best features used in FDD are listed below:
----------------------
a. Domain Object Modelling: Domain Object Modelling consists of
---------------------- exploring and explaining the domain of the problem to be solved.
The resulting domain object model provides an overall framework
----------------------
in which to add features.
----------------------
----------------------
----------------------

b. Developing by Feature: Any function that is too complex to be Notes
implemented within two weeks is further decomposed into smaller
functions until each sub-problem is small enough to be called ----------------------
a feature. This makes it easier to deliver correct functions and to
extend or modify the system. ----------------------
c. Individual Class (Code) Ownership: Individual class ownership ----------------------

means that distinct pieces or grouping of code are assigned to a single
----------------------
owner. The owner is responsible for the consistency, performance,
and conceptual integrity of the class. ----------------------
d. Feature Teams: A feature team is a small, dynamically formed team
----------------------
that develops a small activity. By doing so, multiple minds are
always applied to each design decision and also multiple design ----------------------
options are always evaluated before one is chosen.
----------------------
e. Inspections: Inspections are carried out to ensure good quality
design and code, primarily by detection of defects. ----------------------
f. Configuration Management: Configuration management helps with ----------------------
identifying the source code for all features that have been completed
to date and to maintain a history of changes to classes as feature ----------------------
teams enhance them.
----------------------
g. Regular Builds: Regular builds ensure there is always an up to date
system that can be demonstrated to the client and helps highlighting ----------------------
integration errors of source code for the features early.
----------------------
h. Visibility of progress and results: By frequent, appropriate, and
accurate progress reporting at all levels inside and outside the ----------------------
project, based on completed work, managers are helped at steering
a project correctly. ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
---------------------- Fig. 11.4: Process model of feature driven development
---------------------- 3. Dynamic System Development Method (DSDM)

Its goal is to deliver software systems on time and on budget while
---------------------- adjusting for changing requirements along the development process.
---------------------- DSDM is one of a number of Agile methods for developing software, and
it forms a part of the Agile Alliance.
---------------------- There are three phases in DSDM namely, the pre-project, the project
---------------------- life-cycle and the post-project phase. In turn, the project life-cycle has
four phases, the feasibility study, the business study, functional model
---------------------- iteration, design and builds iteration and implementation.

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig. 11.5: The processes followed in DSDM ----------------------
Following factors are identified as success factors; ----------------------

Factor 1: First there is the acceptance of DSDM by senior management ----------------------
and other employees. This ensures that the different actors of the project
are motivated from the start and remain involved throughout the project. ----------------------
Factor 2: The second factor follows directly from this and that is the ----------------------
commitment of management to ensure end-user involvement. The
prototyping approach requires a strong and dedicated involvement by end ----------------------
user to test and judge the functional prototypes.
----------------------
Factor 3: Then there is the project team. This team has to be composed
of skilful members that form a stable union. An important issue is the ----------------------
empowerment of the project team. This means that the team (or one or
more of its members) has to possess the power and possibility to make ----------------------
important decisions regarding the project without having to write formal ----------------------
proposals to higher management, which can be very time-consuming. In
order for the project team to be able to run a successful project, they ----------------------
also need the right technology to conduct the project. This means a
development environment, project management tools, etc. ----------------------
Factor 4: Finally DSDM also states that a supportive relationship between ----------------------
customer and vendor is required. This goes for both projects that are
released internally within companies or by outside contractors. An aid in ----------------------
ensuring a supporting relationship could be ISPL ----------------------
4. Scrum
----------------------
Scrum is a “process skeleton,” which contains sets of practices and
predefined roles. The main roles in Scrum are: ----------------------
●● The “ScrumMaster”, who maintains the processes (typically in lieu ----------------------
of a project manager);
----------------------
●● The “Product Owner”, who represents the stakeholders;
●● The “Team”, is a cross-functional group of about 7 people who do ----------------------
the actual analysis, design, implementation, testing, etc.
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig. 11.6: Scrum
----------------------
A key principle of Scrum is its recognition that during a project the
---------------------- customers can change their minds about what they want and need (often
called requirements churn), and that unpredicted challenges cannot be
----------------------
easily addressed in a traditional predictive or planned manner. As such,
---------------------- Scrum adopts an empirical approach - accepting that the problem cannot
be fully understood or defined, focusing instead on maximizing the team’s
---------------------- ability to deliver quickly and respond to emerging requirements.
---------------------- There are several implementations of systems for managing the Scrum
process, which range from yellow stickers and whiteboards, to software
---------------------- packages. One of Scrum’s biggest advantages is that it is very easy to
learn and requires little effort to start using.
----------------------
5. Lean principles in software development
----------------------
Lean manufacturing originated in manufacturing industry in late 1940s and
---------------------- is practiced successfully by Toyota. As software industry started getting
mature, the need was felt to optimize the processes used in developing
---------------------- and managing software. As we know
---------------------- Profit = price – cost,
---------------------- And we cannot increase price to make more profits. The only way is to
reduce the cost of developing the software if we have to make maximum
---------------------- profits. This is where lean principles can guide software development.
---------------------- The principles were studied and configured to suit software industry. The
principles are as follows:
----------------------
1. Eliminate waste
---------------------- In software development, waste can be in terms of extra features,
---------------------- requirements, extra steps, bugs not caught by testers, time wasted
waiting for decisions, handoffs/transformation.
----------------------
----------------------

2. Amplify learning Notes
Using short iteration cycles, mistakes can be detected at an early
----------------------
stage which can add to learning. Short feedback sessions with the
customers, help in determine the current and future features. ----------------------
3. Decide as late as possible
----------------------
Project keeps on elaborating progressively so it is better to delay
the decisions till late. In meanwhile, customers also get a better ----------------------
understanding of their own requirements. The costly rework can be
----------------------
avoided by this practice.
4. Deliver as fast as possible ----------------------
The sooner a feature is delivered without bugs, the sooner the ----------------------
feedback is received for further enhancements or changes. With the
advent of new technologies, it is possible to deliver the features ----------------------
fast. Everyday stand up meetings make it possible to review the ----------------------
deliverables on a continuous basis speeding up the delivery.
5. Empower the team ----------------------
Here the philosophy is to recognize the contribution made by each ----------------------

employee and treat them as human beings and not just resources.
----------------------
The practice of pair programming makes it possible to empower
the novice or less experienced employees to learn from their expert ----------------------
counterparts.
----------------------
6. Build integrity in
The customer needs to have an overall experience of the system – ----------------------
this is the so called perceived integrity: how it is being advertised,
----------------------
delivered, deployed, accessed, how intuitive its use is, price and
how well it solves problems. ----------------------
7. See the whole ----------------------
The larger the system, the more organizations that are involved in its
development and the more parts are developed by different teams, ----------------------
the greater the importance of having well defined relationships ----------------------
between different vendors, in order to produce a system with
smoothly interacting components. ----------------------
The principles are integrated in Agile project management practices ----------------------
also. In all, there are 22 tools defined on software development
processes to follow lean principles. ----------------------
Sr. No. Tool ----------------------
1 Seeing waste
----------------------
2 Value stream mapping
3 Feedback ----------------------
4 Iterations ----------------------

Notes 5 Synchronization
6 Set based development
----------------------
7 Options thinking
---------------------- 8 The last responsible moment
---------------------- 9 Making decisions
10 Pull systems
---------------------- 11 Queuing theory
---------------------- 12 Cost of delay
13 Self determination
----------------------
14 Motivation
---------------------- 15 Leadership
16 Expertise
----------------------
17 Perceived integrity
---------------------- 18 Conceptual integrity
---------------------- 19 Refactoring
20 Testing
---------------------- 21 Measurements
---------------------- 22 Contracts
---------------------- The advantages of lean software project management can be stated as:
1. The elimination of waste leads to the overall efficiency of the
---------------------- development process. This in turn speeds up the process of software
---------------------- development which reduces project time and cost. This is absolutely
vital in today’s environment. Anything which allows organizations
---------------------- to deliver more projects in the same timeframe is going to be
popular!
----------------------
2. Delivering the product early is a definite advantage. It means your
---------------------- development team can deliver more functionality in a shorter period
of time, hence enabling more projects to be delivered. This will not
----------------------
only please your finance department, but also the end customers.
---------------------- 3. Empowerment of the development team helps in developing the
decision making ability of the team members which in turn, creates
----------------------
a more motivated team. This benefit really cannot be overstressed
---------------------- enough. Developers hate nothing more than being micro-managed
and having decisions forced upon them. This way they can determine
---------------------- how best to develop the functionality which will usually result in a
much better end product.
----------------------
Major trends for project management professionals to be aware of are
---------------------- discussed below:
---------------------- 1. The migration to the EPMO model
---------------------- An Enterprise Project Management Office (EMPO) is a more

strategic project management office (PMO) that focuses on aligning
all project, program, and portfolio activities with company-wide Notes
objectives. According to a 2017 Project Management Institute
report, companies that have an established strategic Enterprise ----------------------
Project Management Office (EPMO) report that 38% more projects
meet their original goals and business intentions, and 33% fewer ----------------------
projects fail. From startups to SMBs, through to large organizations, ----------------------
the need to align projects with the broader goals and visions will
continue to pick up speed to improve project performance. The ----------------------
EPMO concept is typically associated with large organizations, but
in future, companies of all sizes and in all industries will choose ----------------------
to adopt the EPMO model to be project management champions ----------------------
instead of underperformers.
----------------------
2. Adopt formal project management and tools
With an increase in affordable web-based project management ----------------------
software and tools, startups will begin to use these solutions.
----------------------
Even the smallest of companies can leverage comprehensive and
integrated solutions to meet their project needs as they grow. Formal ----------------------
project management practices and tools help level the playing field,
reducing waste in already scarce resources and ambiguity in the ----------------------
linkage between projects and vision. In future, the adoption of
----------------------
formal project management processes and tools will continue to
grow; helping to reduce the number of startups that end in failure ----------------------
due to squandered resources, wasted time and missed objectives.
----------------------
3. The increased use of analytics
Business intelligence and business analytics tools are a fast- ----------------------
growing industry, and these tools are rapidly becoming recognized ----------------------
as necessary instead of ‘nice to have’ tools. Project teams are
recognizing that these tools enable them to more accurately pinpoint ----------------------
project trends, fast track the ability to identify potential risks,
and conduct complex scenario planning to improve project and ----------------------
team performance. These tools provide companies with valuable ----------------------
key performance indicator dash boarding that can be customized
based on user needs. More companies will leverage the powerful ----------------------
capabilities of these tools to keep projects moving in the right
direction and gain insight to help improve the execution of future ----------------------
projects. ----------------------
4. Remote Teams
----------------------
Remote project management is rapidly increasing in popularity,
both from an employer and employee perspective - especially with ----------------------
millennials. By 2020, millennials will make up half the global labor
force, and by 2030, they’ll account for 75%. As millennials are ----------------------
quickly becoming the largest component of the workforce in North ----------------------
America, their interest in achieving a work-life balance is creating
pressure on employers to offer remote or partially-remote working ----------------------

Notes arrangements. Employers are also recognizing the various benefits
of hiring remote workers, including a higher degree of employee
---------------------- satisfaction, a reduction in sick time, and reduced administrative
or logistical overheads. The benefits for both sides will continue to
---------------------- create a shift towards remote project teams that use technology to
---------------------- bridge communication and collaboration gaps.
5. Emotional Intelligence
----------------------
Self-awareness, self-regulation, empathy, motivation, and social
---------------------- skills are all hallmarks of emotional intelligence. According to Office
Team, a staffing agency and division of Robert Half, approximately
----------------------
95% of HR managers and 99% of workers agree that strong
---------------------- emotional intelligence is an important factor when considering
hiring. Project managers with this attribute create environments
---------------------- where team cohesion is higher, and this increases the chances of
successful project outcomes. It is expected that, recruiters will look
----------------------
for applicants who exhibit emotional intelligence in addition to
---------------------- project management skill sets.
6. The internet of things
----------------------
Internet of things is going to be one of the greatest project
---------------------- management trends. It will affect every part of business and projects
---------------------- that are not internet related. IoT will drive next opportunities and
bring a notable effect in project management software and in the
---------------------- project management role itself. It will change the face of project
management by allowing team collaboration, increase in project
---------------------- timelines, enhanced security and will allow remote controlling of
---------------------- objects.
7. Kanban Boards
----------------------
Kanban Board is increasingly being integrated into more structured
---------------------- project management. It is composed of a grid to manage workflow
that are smaller and solve all your performance of poor project
---------------------- by adding more control mechanism. It can be used well for those
---------------------- projects that are more likely to have changes for an efficient way
to limit work in progress and avoid multitasking. The adaptation
---------------------- of Kanban project management will let project managers embrace
innovation to manage their projects. It offers managers a centralized
---------------------- place to manage lists, tasks and files with wide packages that can be
---------------------- applied to every situation.
8. Artificial Intelligence (AI)
----------------------
Project managers face the challenges of resource constraints,
---------------------- especially human resource. To improve productivity, better use
of human resources is recommended. AI gives an opportunity to
----------------------
better deal with mundane rule-based tasks done by humans. So it
---------------------- improves the project process efficiency & productivity. It reduces

human dependencies for these routine repetitive tasks. With the Notes
help of robots (or simply bots) repetitive, rule-based actions can
be automated. All the while engaging human resources in more ----------------------
creative and innovative activities. Proper use of human power
combined with improved error-free processes are a by-product of ----------------------
AI. AI helps to enhance productivity if used efficiently in project ----------------------
work. Project Management professionals are taking interest to
realize the full potential of AI. This trend will continue to explore ----------------------
better opportunities for Project Management professionals.
----------------------
As per the recent report published by PMI on PMP job growth (Project
management 2017 – 2027), ----------------------
“By 2027 there will be a growing need of filling a major breakthrough of ----------------------
87.7 million PMP roles.”
----------------------
Hence, there will be high demand for Project Management professionals
across the industries. The above-mentioned Project Management trends ----------------------
are likely to continue in the future. They will even reach a level of high
maturity in all respective pointers. Future project managers will be ----------------------
expected to have diversified knowledge. They should exhibit hands-on
----------------------
experience in managing projects with the hybrid method. The demand for
cyber-security will continue in years to come. Automation, AI, Machine ----------------------
learning and wearable technologies will have better prospects in project
management, they have added support features and high accuracy. ----------------------
----------------------
Activity 4
----------------------
1. List the seven principles used in lean philosophy. ----------------------
2. List the tools used with reference to the principle “Empower the team”.
----------------------
----------------------
Summary
----------------------
●● In this unit, we discussed what the current trends in managing software
projects are. Managing global software projects needs a special skill set ----------------------
as well as special infrastructure. But with the invent of global projects, the
world has shrunk in its true sense and has become a global village. Now ----------------------
the best offers can be made to the customers with the competent costs ----------------------
as well as profit margins for the business are increasing with the global
market. ----------------------
●● Also, we have seen that the new software development models are ----------------------
designed in such a way that they support project management. So we can
conclude that the distinguishing line between software engineering and ----------------------
project management is diminishing.
----------------------
●● The software stream is also getting mature like manufacturing or civil
streams by following their respective best services. ----------------------

Notes
----------------------
1. Why do you need different project management tools for managing global
---------------------- software projects?
---------------------- 2. Why time differences become a major challenge in software project

management?
----------------------
3. Narrate your own experience of managing a software project.
---------------------- 4. Find out the similarities and differences in Scrum and Extreme
---------------------- Programming.
5. Explain the history of software projects in India.
----------------------
6. Do you think the overall software project quality will improve because of
---------------------- global software projects? Justify your answer.
---------------------- 7. Find out companies which are practicing Agile software development
practices.
----------------------
8. Explain your understanding of Lean principles.
----------------------
9. Compare and contrast various Agile software development practices.
----------------------
10. What is the difference between Rational Unified Process and Agile
---------------------- Process?
---------------------- 11. Try to find out the significance and usage of each tool mentioned in the
table for lean principles in software development.
----------------------
12. Explain the DSDM method of Agile software development in your own
---------------------- words.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

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PROJECT MANAGEMENT (IT)

(FOR PRIVATE CIRCULATION ONLY)

COURSE DESIGN AND REVIEW COMMITTEE

Published by Symbiosis Centre for Distance Learning (SCDL), Pune

Copyright © 2018 Symbiosis Open Education Society

Unit No. TITLE Page No.

Software Project Management Concepts 1

---------------------- • Recognise essential skills of a project manager

---------------------- 1.1 INTRODUCTION

2 Project Management (IT)

We are living in information age. Almost everything around us is computerised. ----------------------

Software Project Management Concepts 3

---------------------- Technical Challenges: Every project is different and needs to be managed

---------------------- Another challenge is cost estimation .As Software is an intellectual commodity,

4 Project Management (IT)

Match the following. ----------------------

i. Technical challenges a. Knowledge workers ----------------------

1.4 SOFTWARE PROJECT ----------------------

A ‘project’ is a sequence of unique, complex and connected activities having ----------------------

Software Project Management Concepts 5

---------------------- 3. Software development tools

6 Project Management (IT)

Software Project Management Concepts 7

8 Project Management (IT)

o Narrow scope of technical expertise ----------------------

The key to successful project management is management of nine knowledge ----------------------

Software Project Management Concepts 9

---------------------- Check your Progress 3

10 Project Management (IT)

Software Project Management Concepts 11

---------------------- Multiple Choice Multiple Response

---------------------- Give examples of various resources used in a project development.

12 Project Management (IT)

Software Project Management Concepts 13

---------------------- Matrix Organisation

14 Project Management (IT)

State True or False. ----------------------

1.8 PROJECT LIFE CYCLE AND PHASES ----------------------

Software Project Management Concepts 15

16 Project Management (IT)

1.9 STAKEHOLDERS AND THEIR INFLUENCE ON ----------------------

Software Project Management Concepts 17

18 Project Management (IT)

Fig. 1.3: Role of a Project Manager ----------------------

Software Project Management Concepts 19

20 Project Management (IT)

Software Project Management Concepts 21

---------------------- • Influencing and Negotiating

22 Project Management (IT)

Software Project Management Concepts 23

---------------------- Multiple Choice Multiple Response

---------------------- 1. Good leaders always

---------------------- ii. Experience

---------------------- iv. Resignations

---------------------- h. Delivering product training to the end users

24 Project Management (IT)

Software Project Management Concepts 25

---------------------- Self-Assessment Questions