CHAPTER 5 – PROJECT MANAGEMENT

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TOPICS COVERED
❖The necessity of Project Management
❖The project management Process
❖Some project management technique
❖Risk management

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SOFTWARE PROJECT MANAGEMENT
❖Concerned with activities involved in ensuring that software is
delivered on time and on schedule and in accordance with the
requirements of the organisations developing and procuring the
software.
❖Project management is needed because software development is
always subject to budget and schedule constraints that are set by
the organisation developing the software.

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SUCCESS CRITERIA
❖Deliver the software to the customer at the agreed time.
❖Keep overall costs within budget.
❖Deliver software that meets the customer’s expectations.
❖Maintain a coherent and well-functioning development team.

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SOFTWARE MANAGEMENT DISTINCTIONS
❖The product is intangible.
 Software cannot be seen or touched. Software project managers cannot see
progress by simply looking at the artefact that is being constructed.
❖Many software projects are 'one-off' projects.
 Large software projects are usually different in some ways from previous
projects. Even managers who have lots of previous experience may find it
difficult to anticipate problems.
❖Software processes are variable and organization specific.
 We still cannot reliably predict when a particular software process is likely
to lead to development problems.

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FACTORS INFLUENCING PROJECT MANAGEMENT
❖Company size
❖Software customers
❖Software size
❖Software type
❖Organizational culture
❖Software development processes
❖These factors mean that project managers in different organizations may
work in quite different ways.

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UNIVERSAL MANAGEMENT ACTIVITIES
❖Project planning
 Project managers are responsible for planning. estimating and scheduling
project development and assigning people to tasks.
❖Risk management
 Project managers assess the risks that may affect a project, monitor these
risks and take action when problems arise.
❖People management
 Project managers have to choose people for their team and establish ways
of working that leads to effective team performance.

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MANAGEMENT ACTIVITIES
❖Reporting
 Project managers are usually responsible for reporting on the progress of a
project to customers and to the managers of the company developing the
software.
❖Proposal writing
 The first stage in a software project may involve writing a proposal to win a
contract to carry out an item of work. The proposal describes the objectives
of the project and how it will be carried out.

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 PROJECT MANAGEMENT PROCESS
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THE PROCESS
Project process are performed by people and generally fall into TWO categories:
❖Project management processes – describe, organize and complete the work of the
project. The project management processes that are applicable to most project, most
of the time.
❖Product oriented process – specify and create the project product. Product-oriented
process are typically defined by the project life cycle and vary by application area.

Both categories overlap and interact throughout the project. For example the scope of
project cannot be defined in the absence of some basic understanding of how to
create the product
THE PROCESS
Major process groups generally include:
❖Initiation – authorizing the project or phase
❖Planning – defining and refining the objectives and selecting the best of the alternative
courses of action to attain the objectives that the project was undertaken to address.
❖Production or execution – coordinating people and other resources to carry out the plan
❖Monitoring and controlling – ensuring that the project objectives are met by monitoring and
measuring progress regularly to identify variances from plan so that corrective action can be
taken when necessary
❖Closing – formalizing acceptance of the project or phase and bridging it to an orderly end.
THE PROCESS

Figure 1. Project Management Process

INITIATION
❖The initiating processes determine the nature and scope of the project.
❖If this stage is not performed well, it is unlikely that the project will be successful in meeting
the business’ needs.
❖The key project controls →understanding of the business environment and making sure that
all necessary controls are incorporated into the project.
❖Any deficiencies should be reported and a recommendation should be made to fix them.
❖The initiating stage should include a plan that encompasses the following areas:
 analyzing the business needs/requirements in measurable goals
 reviewing of the current operations
 financial analysis of the costs and benefits including a budget
 stakeholder analysis, including users, and support personnel for the project
 project charter including costs, tasks, deliverables, and schedules
PLANNING
❖After the initiation stage, the project is planned to an appropriate level of detail . The
main purpose is to plan time, cost and resources adequately to estimate the work
needed and to effectively manage risk during project execution.
❖Project planning generally consists of:
▪determining how to plan;
▪developing the scope statement;
▪selecting the planning team;
▪identifying deliverables and creating the work breakdown structure;
▪identifying the activities needed to complete those deliverables and networking the activities in their
logical sequence;
▪estimating the resource requirements for the activities, time and cost for activities;
▪developing the schedule and budget;
▪risk planning;
▪gaining formal approval to begin work.
PLANNING
❖Additional processes, such as planning for communications and for scope
management, identifying roles and responsibilities, determining what to
purchase for the project and holding a kick-off meeting are also generally
advisable.
❖For new product development projects, conceptual design of the operation
of the final product may be performed concurrent with the project planning
activities, and may help to inform the planning team when identifying
deliverables and planning activities.
PRODUCTION OR EXECUTION
❖The execution/implementation phase ensures that the project management
plan's deliverables are executed accordingly.
❖This phase involves proper allocation, co-ordination and management of
human resources and any other resources such as material and budgets.
❖The output of this phase is the project deliverables
MONITORING AND CONTROLLING
❖Monitoring and controlling consists of those processes performed to observe project
execution so that potential problems can be identified in a timely manner and
corrective action can be taken, when necessary, to control the execution of the project.
❖The key benefit is that project performance is observed and measured regularly to
identify variances from the project management plan.
❖Monitoring and controlling includes:
▪ Measuring the ongoing project activities ('where we are');
▪ Monitoring the project variables (cost, effort, scope, etc.) against the project management plan and the
project performance baseline (where we should be);
▪ Identifying corrective actions to address issues and risks properly (How can we get on track again);
▪ Influencing the factors that could circumvent integrated change control so only approved changes are
implemented.
MONITORING AND CONTROLLING
❖In multi-phase projects, the monitoring and control process also provides
feedback between project phases, in order to implement corrective or
preventive actions to bring the project into compliance with the project
management plan.
❖Project maintenance is an ongoing process, and it includes:[6]
▪Continuing support of end-users
▪Correction of errors
▪Updates to the product over time

❖In this stage, auditors should pay attention to how effectively and quickly
user problems are resolved.
CLOSING
❖Closing includes the formal acceptance of the project and the ending thereof.
Administrative activities include the archiving of the files and documenting
lessons learned.
❖This phase consists of:
▪Contract closure: Complete and settle each contract (including the resolution of any open
items) and close each contract applicable to the project or project phase.
▪Project close: Finalize all activities across all of the process groups to formally close the
project or a project phase

❖Also included in this phase is the Post Implementation Review.

❖This is a vital phase of the project for the project team to learn from
experiences and apply to future projects. Normally a Post Implementation
Review consists of looking at things that went well and analyzing things that
went badly on the project to come up with lessons learned.
 SOME PROJECT MANAGEMENT
TECHNIQUES
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WORK BREAKDOWN STRUCTURE (WBS)
❖The purpose of work breakdown structure (WBS) is to help plan effectively for a project by
breaking key task or activities down in to more manageable and smaller units of work.
❖WBS produces a detail list of task to be performed for a project, helping to deliver better
costing, scheduling and resource planning for a project
❖Cost breakdown structure (CBS) list every item classified and its expenditure for the project in
order to get more detail estimate cost or expenditure
❖Benefits of using WBS:
▪ Can be used to allocate and delegate responsibility to help accomplish different tasks or activities e. g control
through greater accountability
▪ Can help sequence and schedule the timing of different events to improve effectiveness of how time is allocated e.
g the most efficient sequence of accomplishing activities can be understood,.
▪ Improves resource planning and the efficiency of how resources are consumed e.g. accurate forecast for project
staffing to save cost
▪ Can be used as a basis of financial “exception reporting” e.g. actual vs budget cost allowances and also forecast
more accurately the project cost
▪ Can be used for risk management e.g. Identify and monitoring risk
WORK BREAKDOWN STRUCTURE (WBS)
GANTT CHART
❖Is a horizontal bar chart used for project scheduling. Each activity or task is
depicted as a block over time, actual performance is recorded in real time
and compared to planned deadlines necessary for achieving completion
❖The use of Gantt Charts as a tool:
▪Can be used to plan time scale for a project
▪Can be used to estimate resource required
▪Graphical illustration of a schedule of task to complete
▪Help to plan, coordinate and tract specific task for a project
▪Good for small projects when the number of task of activities are small and not complex
GANTT CHART
CRITICAL PATH ANALYSIS OR NETWORK ANALYSIS
❖Network (or critical path) analysis cab display more logically the sequence
and timing of each activity (defined in Gantt Chart), they communicate
interdependency and a more effective time management tool for large and
complex project
❖The use of critical path (network) analysis as a tool:
▪Good visual communication and planning tool for effective time management
▪Display clearly interdependent relationships that exist between the different activities or
task to be completed
▪Arrange task or activities into an optimum sequence of events allowing a project to be
completed in the most efficient time possible
▪Elapsed time (estimated time) to complete the project can be calculated
▪Highlight those activities which are ‘critical activities’
▪Enables more effective resource planning, resources can be diverted away from non-critical
to critical activities
▪Highlight ‘float tines’ for all activities
CRITICAL PATH ANALYSIS OR NETWORK ANALYSIS
 RISK MANAGEMENT
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RISK MANAGEMENT
Risk management is concerned with identifying risks and drawing up plans to
minimise their effect on a project.
Software risk management is important because of the inherent uncertainties
in software development.
 These uncertainties stem from loosely defined requirements, requirements changes due to
changes in customer needs, difficulties in estimating the time and resources required for
software development, and differences in individual skills.

You have to anticipate risks, understand the impact of these risks on the
project, the product and the business, and take steps to avoid these risks.

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RISK CLASSIFICATION
There are two dimensions of risk classification
 The type of risk (technical, organizational, ..)
 what is affected by the risk:
Project risks affect schedule or resources;
Product risks affect the quality or performance of the software
being developed;
Business risks affect the organisation developing or procuring the
software.

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 EXAMPLES OF PROJECT, PRODUCT, AND BUSINESS RISKS
Risk Affects Description
Staff turnover Project Experienced staff will leave the project before it is finished.
Management change Project There will be a change of organizational management with different
priorities.
Hardware Project Hardware that is essential for the project will not be delivered on
unavailability schedule.
Requirements Project and product There will be a larger number of changes to the requirements than
change anticipated.
Specification delays Project and product Specifications of essential interfaces are not available on schedule.
Size underestimate Project and product The size of the system has been underestimated.
CASE tool Product CASE tools, which support the project, do not perform as anticipated.
underperformance
Technology change Business The underlying technology on which the system is built is superseded by
new technology.
Product competition Business A competitive product is marketed before the system is completed.

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THE RISK MANAGEMENT PROCESS
Risk identification
 Identify project, product and business risks;
Risk analysis
 Assess the likelihood and consequences of these risks;
Risk planning
 Draw up plans to avoid or minimise the effects of the risk;
Risk monitoring
 Monitor the risks throughout the project;

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THE RISK MANAGEMENT PROCESS

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RISK IDENTIFICATION
May be a team activities or based on the individual project
manager’s experience.
A checklist of common risks may be used to identify risks in a
project
 Technology risks.
 Organizational risks.
 People risks.
 Requirements risks.
 Estimation risks.

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 EXAMPLES OF DIFFERENT RISK TYPES
Risk type Possible risks
Estimation The time required to develop the software is underestimated. (12)
The rate of defect repair is underestimated. (13)
The size of the software is underestimated. (14)
Organizational The organization is restructured so that different management are responsible for the project. (6)
Organizational financial problems force reductions in the project budget. (7)

People It is impossible to recruit staff with the skills required. (3)

Key staff are ill and unavailable at critical times. (4)
Required training for staff is not available. (5)
Requirements Changes to requirements that require major design rework are proposed. (10)
Customers fail to understand the impact of requirements changes. (11)
Technology The database used in the system cannot process as many transactions per second as expected. (1)
Reusable software components contain defects that mean they cannot be reused as planned. (2)
Tools The code generated by software code generation tools is inefficient. (8)
Software tools cannot work together in an integrated way. (9)

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RISK ANALYSIS
Assess probability and seriousness of each risk.
Probability may be very low, low, moderate, high or very high.
Risk consequences might be catastrophic, serious, tolerable or insignificant.

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 RISK TYPES AND EXAMPLES
Risk Probability Effects

Organizational financial problems force reductions in the project budget (7). Low Catastrophic

It is impossible to recruit staff with the skills required for the project (3). High Catastrophic

Key staff are ill at critical times in the project (4). Moderate Serious
Faults in reusable software components have to be repaired before these Moderate Serious
components are reused. (2).
Changes to requirements that require major design rework are proposed Moderate Serious
(10).
The organization is restructured so that different management are High Serious
responsible for the project (6).
The database used in the system cannot process as many transactions per Moderate Serious
second as expected (1).
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 RISK TYPES AND EXAMPLES
Risk Probability Effects

The time required to develop the software is underestimated (12). High Serious

Software tools cannot be integrated (9). High Tolerable

Customers fail to understand the impact of requirements changes (11). Moderate Tolerable

Required training for staff is not available (5). Moderate Tolerable

The rate of defect repair is underestimated (13). Moderate Tolerable
The size of the software is underestimated (14). High Tolerable
Code generated by code generation tools is inefficient (8). Moderate Insignificant

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RISK PLANNING
Consider each risk and develop a strategy to manage that risk.
Avoidance strategies
 The probability that the risk will arise is reduced;

Minimization strategies
 The impact of the risk on the project or product will be reduced;

Contingency plans
 If the risk arises, contingency plans are plans to deal with that risk;

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WHAT-IF QUESTIONS
What if several engineers are ill at the same time?
What if an economic downturn leads to budget cuts of 20% for the project?
What if the performance of open-source software is inadequate and the only expert
on that open source software leaves?
What if the company that supplies and maintains software components goes out of
business?
What if the customer fails to deliver the revised requirements as predicted?

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 STRATEGIES TO HELP MANAGE RISK
Risk Strategy

Organizational financial Prepare a briefing document for senior management showing how the project
problems is making a very important contribution to the goals of the business and
presenting reasons why cuts to the project budget would not be cost-
effective.
Recruitment problems Alert customer to potential difficulties and the possibility of delays; investigate
buying-in components.
Staff illness Reorganize team so that there is more overlap of work and people therefore
understand each other’s jobs.
Defective components Replace potentially defective components with bought-in components of
known reliability.
Requirements changes Derive traceability information to assess requirements change impact;
maximize information hiding in the design.
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 STRATEGIES TO HELP MANAGE RISK
Risk Strategy

Organizational restructuring Prepare a briefing document for senior management

showing how the project is making a very important
contribution to the goals of the business.

Database performance Investigate the possibility of buying a higher-

performance database.
Underestimated development time Investigate buying-in components; investigate use of a
program generator.

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RISK MONITORING
❖Assess each identified risks regularly to decide whether or not it
is becoming less or more probable.
❖Also assess whether the effects of the risk have changed.
❖Each key risk should be discussed at management progress
meetings.

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 RISK INDICATORS
Risk type Potential indicators

Estimation Failure to meet agreed schedule; failure to clear reported defects.

Organizational Organizational gossip; lack of action by senior management.

People Poor staff morale; poor relationships amongst team members; high staff turnover.

Requirements Many requirements change requests; customer complaints.

Technology Late delivery of hardware or support software; many reported technology problems.

Tools Reluctance by team members to use tools; complaints about CASE tools; demands
for higher-powered workstations.

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KEY POINTS
KEY POINTS
❖Project Management plays an important role in software development process
❖Project management involved five processes: Initiation, Planning, Production or
execution, Monitoring and controlling and Closing.
❖Example of project management techniques include Work Breakdown Structure,
Gantt Chart and Network (Critical Path) Analysis.
❖Risk management is now recognized as one of the most important project
management tasks.
❖Risk management involves identifying and assessing project risks to establish the
probability that they will occur and the consequences for the project if that risk does
arise. You should make plans to avoid, manage or deal with likely risks if or when
they arise.