SOFTWARE

SOFTWARE PROJECT
PROJECT
MANAGEMENT
MANAGEMENT
(KOE-068)
(KOE-068)
Faculty: Mayank Raj
Course: B.Tech 6th Semester
Session 2022-23
Department of Computer Science & Engineering
07/16/2024 1
 University Syllabus
Unit-1: Project Evaluation and Project Planning : :
Importance of Software Project Management – Activities – Methodologies – Categorization of Software Projects – Setting
objectives – Management Principles – Management Control – Project portfolio Management – Cost-benefit evaluation technology
– Risk evaluation – Strategic program Management – Stepwise Project Planning.
Unit-2: Project Life Cycle and Effort Estimation:
Software process and Process Models – Choice of Process models – Rapid Application development – Agile methods – Dynamic
System Development Method – Extreme Programming– Managing interactive processes – Basics of Software estimation – Effort
and Cost estimation techniques – COSMIC Full function points – COCOMO II – a Parametric Productivity Model .
Unit-3: Activity Planning and Risk Management:
Objectives of Activity planning – Project schedules – Activities – Sequencing and scheduling – Network Planning models –
Formulating Network Model – Forward Pass & Backward Pass techniques – Critical path (CRM) method – Risk identification –
Assessment – Risk Planning –Risk Management – – PERT technique – Monte Carlo simulation – Resource Allocation – Creation
of critical paths – Cost schedules.
Unit-4: Project Management and Control:
Framework for Management and control – Collection of data – Visualizing progress – Cost monitoring – Earned Value Analysis –
Prioritizing Monitoring – Project tracking – Change control –Software Configuration Management – Managing contracts –
Contract Management.
Unit-5: Staffing in Software Projects:
Managing people – Organizational behavior – Best methods of staff selection – Motivation – The Oldham – Hackman job
characteristic model – Stress – Health and Safety – Ethical and Professional concerns – Working in teams – Decision making –
Organizational structures – Dispersed and Virtual teams – Communications genres – Communication plans – Leadership.
07/16/2024 2
Text books:
1. Bob Hughes, Mike Cotterell and Rajib Mall: Software Project Management – Fifth
Edition, McGraw Hill, New Delhi, 2012.
2. Robert K. Wysocki ―Effective
Software Project Management – Wiley Publication, 2011. 3.
Walker Royce: ―Software Project Management- Addison-Wesley, 1998.
4.Gopalaswamy Ramesh, ―Managing Global Software Projects – McGraw
Hill Education (India), Fourteenth Reprint 2013.

07/16/2024 3
 Project
Project Evaluation
Evaluation and
and Project
Project Planning
Planning

Faculty: Mayank Raj

Department of Computer Science &
Engineering

07/16/2024 4
 What is a project?
Some dictionary definitions:
“A specific plan or design”
“A planned undertaking”
“A large undertaking e.g. a public works scheme”
Longmans dictionary

Key points above are planning and size of task

07/16/2024 5
Jobs versus projects

‘Jobs’ – repetition of very well-defined and well understood tasks with

very little uncertainty
‘Exploration’ – e.g. finding a cure for cancer: the outcome is very uncertain
‘Projects’ – in the middle!
6
What is Project?
A complex, nonroutine, one-time effort limited by time, budget ,
resources, and performance specifications designed to meet
customer needs. “ A project is defined as a sequence of tasks
that must be completed to attain a certain outcome. According
to the Project Management Institute (PMI), the term Project
refers to ” to any temporary endeavor with a definite beginning
and end”. Depending on its complexity, it can be managed by a
single person or hundreds.

07/16/2024 7
Major Characteristics of projects
A task is more ‘project-like’ if it is:
 Non-routine
 Planned
 Aiming at a specific target
 Has an established objective.
 Work carried out for a customer
 Involving several specialisms
 Has a defined life span with a beginning and an end.
 Made up of several different phases
 Typically requires across-the-organizational participation.
 Involves doing something never been done before.
 Constrained by time and resources
 Large and/or complex
 Has specific time, cost, and performance requirements.
07/16/2024 8
 Are software projects really different
from other projects?
Not really! …but…
• Invisibility
• Complexity
• Conformity
• Flexibility
make software more problematic to build than
other engineered artefacts.
07/16/2024 9
Activities Covered by Project Management

The feasibility study/plan/execution cycle

Feasibility study
Is project technically feasible and worthwhile from a business point of view?
Planning
Only done if project is feasible
Execution
Implement plan, but plan may be changed as we go along 10
The software development life-cycle (ISO 12207)

11
 ISO 12207 life-cycle
Requirements analysis
– Requirements elicitation: what does the client need?
– Analysis: converting ‘customer-facing’ requirements
into equivalents that developers can understand
– Requirements will cover
• Functions
• Quality
• Resource constraints i.e. costs

07/16/2024 12
 ISO 12207 life-cycle
• Architecture design
– Based on system requirements
– Defines components of system: hardware, software,
organizational
– Software requirements will come out of this
• Code and test
– Of individual components
• Integration
– Putting the components together
07/16/2024 13
 ISO12207 continued....
• Qualification testing
– Testing the system (not just the software)
• Installation
– The process of making the system operational
– Includes setting up standing data, setting system
parameters, installing on operational hardware
platforms, user training etc
• Acceptance support
– Including maintenance and enhancement
07/16/2024 14
 Some ways of categorizing projects

Distinguishing different types of project is

important as different types of task need
different project approaches e.g.
• Information systems versus embedded systems
• Objective-based versus product-based

07/16/2024 15
 What is management?
This involves the following activities:
• Planning – deciding what is to be done
• Organizing – making arrangements
• Staffing – selecting the right people for the job
• Directing – giving instructions
• Monitoring – checking on progress
• Controlling – taking action to remedy hold-ups
• Innovating – coming up with solutions when problems emerge
• Representing – liaising with clients, users, developers and other
stakeholders

07/16/2024 16
 Problems with Software Projects
Traditionally, management has been seen as the preserve of a distinct class within
the organization. As technology has made the tasks undertaken by an organization
more sophisticated, many management tasks seem to have become dispersed
throughout the organization: there are management systems rather than managers.
A survey of managers published by Thayer, Pyster and Wood identified the
following commonly experienced problems:
• poor estimates and plans;
• lack of quality standards and measures;
• lack of guidance about making organizational decisions;
• lack of techniques to make progress visible;
• poor role definition - who does what?
• incorrect success criteria.

07/16/2024 17
 Problems with Software Projects
The list of the problems identified by a number of students on a degree
course in Computing and Information Systems who had just completed a
year's industrial placement:
• inadequate specification of work;
• management ignorance of IT;
• lack of knowledge of application area;
• lack of standards;
• lack of up-to-date documentation;
• preceding activities not completed on time - including late delivery of
equipment;
• lack of communication between users and technicians;

07/16/2024 18
 Problems with Software Projects
• lackof communication leading to duplication of work;
• lack of commitment - especially when a project is tied to one person
who then moves;
• narrow scope of technical expertise;
• Changing statutory requirements;
• Changing software Environment;
• Deadline Pressure;
• lack of quality control;
• Remote Management;

07/16/2024 19
 Setting objectives
• Answering the question ‘What do we have to do to
have a success?’
• Need for a project authority
– Sets the project scope
– Allocates/approves costs

• Could be one person - or a group

– Project Board
– Project Management Board
– Steering committee

07/16/2024 20
 Objectives should be SMART
S – specific, that is, concrete and well-defined
M – measurable, that is, satisfaction of the objective can be objectively
judged

A – achievable, that is, it is within the power of the individual or group

concerned to meet the target

R – relevant, the objective must relevant to the true purpose of the project
T – time constrained: there is defined point in time by which the objective
should be achieved

07/16/2024 21
 Goals/sub-objectives
These are steps along the way to achieving the objective. Informally, these can be
defined by completing the sentence…

Objective X will be achieved

IF the following goals are all achieved
A……………
B……………
C…………… etc

Often a goal can be allocated to an individual. Individual may have the capability of
achieving goal, but not the objective on their own e.g.

Objective – user satisfaction with software product

Analyst goal – accurate requirements
Developer goal – software that is reliable
07/16/2024 22
 Measures of effectiveness
How do we know that the goal or objective has been
achieved?
By a practical test, that can be objectively assessed.

e.g. for user satisfaction with software product:

• Repeat business – they buy further products from us
• Number of complaints – if low etc
07/16/2024 23
 Stakeholders
These are people who have a stake or interest in the project
In general, they could be users/clients or developers
/implementers

They could be:

• Within the project team
• Outside the project team, but within the same organization
• Outside both the project team and the organization

07/16/2024 24
 Management control
Data – the raw details
e.g. ‘6,000 documents processed at location X’

Information – the data is processed to produce something that is

meaningful and useful
e.g. ‘productivity is 100 documents a day’

Comparison with objectives/goals

e.g. we will not meet target of processing all documents by 31 st March
continued…..
07/16/2024 25
 Management control - continued
Modelling – working out the probable Outcomes of
various decisions
e.g. if we employ two more staff at location X how
quickly can we get the documents processed?

Implementation – carrying out the remedial actions

that have been decided upon
07/16/2024 26
 Project Control Cycle

07/16/2024 27
 What is project Portfolio Management?
 Project Portfolio Management (PPM) is NOT Project
Management
 Project Portfolio Management is a significant advance over
traditional PM methods, (which focuses primarily on project
execution).
 What are we trying to fix?
PPM addresses a common problem where scarce resources
(money, people, facilities) are allocated to the wrong projects.

07/16/2024 28
 What is project Portfolio Management?
 PPM, therefore, goes beyond the art of "managing
projects right" and focuses on "doing the right projects".
 The objective of PPM is to create the mix of projects
most likely to support the achievement of the
organization's goals, aligned with the preferred
strategies, and within the organization's resource
(people and funding) constraints.

07/16/2024 29
 Symptoms calling for PPM

07/16/2024 30
 Project Portfolio Life Span
 Project Portfolio Life Span (PPLS) consists of the
following phased components:
 1.Identification of needs and opportunities
 2.Selection of best combinations of projects (the
portfolios)
 3.Planning and execution of the projects (project
management)
 4.Product launch (acceptance and use of deliverables)
 5. Realization of benefits
07/16/2024 31
 Organizing for PPM
 Organizing for PPM Bridges the Gap between Projects
Management(PM) and Operations Management (OP)
 PM: Schedule/Time, Project Cost, Performance,
Stakeholder Satisfaction, Scope/Change Control
 OP: Objectives, Goals, Strategies, Project Selection &
Mix, Cash Flow, ROI
Different people, different goals, different rewards,
different languages

07/16/2024 32
 Organizing for PPM
 Key involved parties (in addition to the PMO) are
senior managers or their designees
 May include CEO, COO, CFO, CIO, Strategic
Planners, VP-Operations, etc.
 The Challenge: How do we get these different
disciplines involved and on the same track?
 And … How do we communicate with them?

07/16/2024 33
 Organizing for PPM
 Calls for establishment of a PPM Governance
Council, with representatives of aforementioned
management areas.
 Governance Council works in conjunction with
(and is supported by) the Project Management
Office (PMO).
 Decisions (project selection & de-selection) are
made by the Governance Council

07/16/2024 34
PPM Challenges

35
Benefits of PPM

36
 PPM Limitation
 Adds another layer of bureaucracy to organizations
 Difficult to perform in environments marked by frequent change
 Tendency to rely too heavily on PPM tools / software for decisions
 May cause conflict, confusion and stress
(eg. due to shifting priorities and resources)
 Could require a “cultural change” in the organisation (overcoming
resistance by some managers and getting sustained commitment by
senior management)
 Good project selection requires large amounts of quality information
which is often not always available at the beginning of pre-selection
stage
 Cannot be effective without well-documented project plans, accurate
estimates of resource requirements and resources consumed
37
 Cost-benefit
Cost-benefit Evaluation
Evaluation Technology
Technology

Faculty: Mayank Raj

Department of Computer Science &
Engineering

07/16/2024 38
 PROJECT EVALUATION
 Project evaluation is normally carried out in step 0 of stepwise Project
Planning
 Project evaluation is a step by step process of collecting, recording and
organizing information about

Project results
 short - term outputs (immediate results of activities or project deliverables)
 Long – term outputs (changes in behavior , practice or policy resulting from the
result.

39
 COST BENEFIT ANALYSIS
 It is one of the important and common way of carrying “economic
assessment” of a proposed information system.
 This is done by comparing the expected costs of development and
operation of the system with its benefits.
 So it takes an account:
Expected cost of development of system
Expected cost of operation of system
Benefits obtained
 Assessment is based on:
Whether the estimated costs are executed by the estimated income.
And by other benefits
 For achieving benefit where there is scarce resources, projects will be
prioritized and resource are allocated effectively.
 The standard way of evaluating economic benefits of any project is
done by “cost benefit analysis” 40
 COST BENEFIT ANALYSIS
 Cost benefit analysis comprises of two steps:

Step-1: identifying and estimating all of the costs and benefits of carrying
out the project.
-It includes
-Development cost of system.
-Operating cost of system.
-Benefits obtained by system
-When new system is developed by the proposed system, then
new system should reflect the above three as same as proposed
system.
Example: Sales order processing system which gives benefit
due to use of new system.
41
 COST BENEFIT ANALYSIS
Step-2: expressing these costs and benefits in common units.
-Calculates net benefit.
-Net benefit = total benefit - total cost.
-cost should be expressed in monetary terms.

Three types of cost :

Development costs: includes salary and other employment cost of staff
involved.
Setup costs : includes the cost of implementation of system such as
hardware, and also file conversion, recruitment and staff training.
Operational cost : cost require to operate system, after it is installed.
42
 COST BENEFIT ANALYSIS
Three categories of benefits:
1) Direct benefits : directly obtained benefit by making use of/operating
the system.
Example: reduction of salary bills, through the introduction of a new ,
computerized system.
2) Assessable indirect benefits : these benefits are obtained due to
updation / upgrading the performance of current system. It is also
referred as “secondary benefits”.
Example: “use of user – friendly screen”, which promotes reduction in errors,
thus increases the benefit.
3) Intangible benefits: these benefits are longer term, difficult to quantify.
It is also referred as “indirect benefits”.
Example: enhanced job interest leads reduction of staff turnover, in turn
leads lower recruitment costs. 43
 CASH FLOW FORCASTING
It estimate overall cost and benefits of a product with respect to time
 -ive cashflow during development stage.
 +ive cashflow during operating life.
During development stage
 Staff wages
 Borrowing money from bank
 Paying interest to bank
 Payment of Salaries
 Amount spent for installation, buying h/w and s/w
Income is expected by 2 ways.
 Payment on completion
 Stage payment 44
 Cost Benefit Evaluation Techniques
It consider
o the timing of the costs and benefits
o the benefits relative to the size of the investment

Common method for comparing projects on the basic of their cash flow
forecasting.

1) Net profit
2) Payback Period
3) Return on investment (ROI)
4) Net present Value (NPV)
5) Internal rate of return (IRR)

45
 1. Net Profit
 calculated by subtracting a company's total expenses from total
income.
 showing what the company has earned (or lost) in a given period of
time (usually one year).
 also called net income or net earnings .

Net profit=Total Income-Total Cost

46
1. Net Profit …

47
1. Net Profit …

48
 2. Pay Back Period
 The payback period is the time taken to recover the initial
investment.
or
 is the length of time required for cumulative incoming returns to
equal the cumulative costs of an investment

Advantages
 simple and easy to calculate.
 It is also a seriously flawed method of evaluating investments

Disadvantages
 It attaches no value to cash flows after the end of the payback period.
 It makes no adjustments for risk.
 It is not directly related to wealth maximization as NPV is.
 It ignores the time value of money . 49
2. Pay Back Period..

50
 Pay Back Period
Payback Period :
Project1 = 10,000+10,000+10,000+20,000+1,00,000 =1,50,000
Project 2= 2,00,000+2,00,000+2,00,000+2,00,000+3,00,000 =11,000,00
Project 3= 30,000+30,000+30,000+30,000 + 75,000 =1,95,000

 It ignores any benefits that occur after the payback period and, therefore,
does not measure profitability.
 It ignores the time value of money.

51
 3. Return on Investment
It provides a way of comparing the net profitability to the investment
required.
Or
A performance measure used to evaluate the efficiency of an investment or
to compare the efficiency of a number of different investments
Disadvantages:
It takes no account of the timing of the cash flows.
Rate of returns bears no relationship to the interest rates offered or
changed by bank.

52
 Return on investment (ROI)
ROI = Average annual profit X 100
Total investment
In the previous example
• average annual profit
= 50,000/5
= 10,000
• ROI = 10,000/100,000 X 100
= 10%
53
• Calculate ROI for project 1.
Ans: Total investment =1,00,000
Net Profit = 50,000
Total no. of year = 5

Average annual profit=50,000/5=10,000 Rs

ROI= (10,000/1,00,000) *100 = 10%
 4. Net Present Value (NPV)
Discounted Cash Flow (DCF) is a cash flow summary adjusted to reflect the
time value of money. DCF can be an important factor when evaluating or
comparing investments, proposed actions, or purchases. Other things being
equal, the action or investment with the larger DCF is the better decision.
When discounted cash flow events in a cash flow stream are added together,
the result is called the Net Present Value (NPV).
When the analysis concerns a series of cash inflows or outflows coming at
different future times, the series is called a cash flow stream. Each future cash
flow has its own value today (its own present value). The sum of these present
values is the Net Present Value for the cash flow stream.
The size of the discounting effect depends on two things: the amount of time
between now and each future payment (the number of discounting periods)
and an interest rate called the Discount Rate.
55
4. Net Present Value (NPV)

56
4. Net Present Value (NPV)

57
4. Net Present Value (NPV)

58
The example shows that:
As the number of discounting periods between now and the cash arrival
increases, the present value decreases.
As the discount rate (interest rate) in the present value calculations
increases, the present value decreases
.
 Discount factor
Discount factor = 1/(1+r)t
r is the interest rate (e.g. 10% is 0.10)
t is the number of years

In the case of 10% rate and one year

Discount factor = 1/(1+0.10) = 0.9091
In the case of 10% rate and two years
Discount factor = 1/(1.10 x 1.10) =0.8294

60
 Applying discount factors
Year Cash-flow Discount factor(discount Discounted cash flow
rate 10%)

0 -100,000 1.0000 -100,000

1 10,000 0.9091 9,091
2 10,000 0.8264 8,264
3 10,000 0.7513 7,513
4 20,000 0.6830 13,660
5 100,000 0.6209 62,090
NPV 618

The figure of RM618 means that RM Click618

for more would be made than if the
money were simply invested at 10%. An NPV of RM0 would be the same
amount of profit would be generated as investing at 10%. 34 34
 Example: Comparing Competing Investments with NPV.
Consider two competing investments in computer equipment. Each calls for an initial
cash outlay of $100, and each returns a total a $200 over the next 5 years making net
gain of $100. But the timing of the returns is different, as shown in the table below
(Case A and Case B), and therefore the present value of each years return is different.
The sum of each investments present values is called the Discounted Cash flow (DCF)
or Net Present Value (NPV). Using a 10% discount rate
CASE A CASE B
Discount
Timing Rate(10%) Net Cash Flow Present Net Cash Flow Present Value
Value
Now 0 1 – $100.00 – $100.00 – $100.00 – $100.00
Year 1 0.9091 $60.00 $54.54 $20.00 $18.18
Year 2 0.8264 $60.00 $49.59 $20.00 $16.52
Year 3 0.7513 $40.00 $30.05 $40.00 $30.05
Year 4 0.6830 $20.00 $13.70 $60.00 $41.10
Year 5
0.6209 $20.00 $12.42 $60.00 $37.27

Total Net CFA = $100.00 NPVA = $60.30 Net CFB = $100.00 NPVB = $43.12
 5. Internal Rate of Return (IRR)
Discounted Cash Flow (DCF) is a cash flow summary adjusted to reflect the
time value of money. DCF can be an important factor when evaluating or
comparing investments, proposed actions, or purchases. Other things being
equal, the action or investment with the larger DCF is the better decision.
When discounted cash flow events in a cash flow stream are added together,
the result is called the Net Present Value (NPV).
When the analysis concerns a series of cash inflows or outflows coming at
different future times, the series is called a cash flow stream. Each future cash
flow has its own value today (its own present value). The sum of these present
values is the Net Present Value for the cash flow stream.
The size of the discounting effect depends on two things: the amount of time
between now and each future payment (the number of discounting periods)
and an interest rate called the Discount Rate.
64
 5. Internal Rate of Return (IRR)
The IRR compares returns to costs by asking: "What is the
discount
• rate that would give the cash flow stream a net present
value of 0?"
CASE A CASE B
Discount
Timing Rate(10%) Net Cash Flow Present Net Cash Flow Present Value
Value
Now 0 1 – $100.00 – $100.00 – $100.00 – $100.00
Year 1 0.9091 $60.00 $54.54 $20.00 $18.18
Year 2 0.8264 $60.00 $49.59 $20.00 $16.52
Year 3 0.7513 $40.00 $30.05 $40.00 $30.05
Year 4 0.6830 $20.00 $13.70 $60.00 $41.10
Year 5
0.6209 $20.00 $12.42 $60.00 $37.27

Total Net CFA = $100.00 NPVA = $60.30 Net CFB = $100.00 NPVB = $43.12
IRR asks a different question of the same two cash flow streams. Instead of
proposing a discount rate and finding the NPV of each stream (as with NPV),
IRR starts with the net cash flow streams and finds the interest rate
(discount rate) that produces an NPV of zero for each. The easiest way to
see how this solution is found is with a graphical summary:
oThese curves are based on the Case A and Case B cash flow figures in the table
above. Here, however, we have used nine different interest rates, including 0.0
and 0.10, on up through 0.80.
oAs you would expect, as the interest rate used for calculating NPV of the cash
flow stream increases, the resulting NPV decreases.
oFor Case A, an interest rate of 0.38 produces NPV = 0, whereas Case B NPV
arrives at 0 with an interest rate of 0.22.

Case A therefore has an IRR of 38%, Case B an IRR of 22%.

IRR as the decision criterion, the one with the higher IRR is the better
choice.
 LECTURE-4
LECTURE-4

Risk
Risk Evaluation
Evaluation

Faculty: Mayank Raj

Department of Computer Science &
Engineering
07/16/2024 68
 Risk Evaluation
Risk evaluation is meant to decide whether to proceed with the project or not,
and whether the project is meeting its objectives.
Risk Occurs:
•When the project exceed its original specification
•Deviations from achieving it objectives and so on.
.

Risk Identification and ranking

46
 Risk Identification and ranking
Identify the risk and give priority.
• Could draw up draw a project risk matrix for each project to assess risks
• Project risk matrix used to identify and rank the risk of the project

• Example of a project risk matrix

47
 Risk profile analysis
 It compares the sensitivity of each factor of project profiles by varying
parameters which affect the project cost benefits.
 Eg: Vary the original estimate This make use of “risk profiles” using
sensitivity analysis.
 mates of risk plus or minus 5% and re-calculate the expected cost benefits.
 By studying the results of a sensitivity analysis we can identify those factors
that are most important to the success of the project.
 We then need to decide whether we can exercise greater control over
them or otherwise mitigate their effects. If neither is the case, then we must
live with the risk or abandon the project.
Risk profile analysis
 LECTURE-5
LECTURE-5

Stepwise
Stepwise Project
Project Planning
Planning

Faculty: Mayank Raj

Department of Computer Science &
Engineering
07/16/2024 90
 Introduction to Project Planning
3
 Project planning
 guides the execution of the project, coordinating the activities.
 facilitates better communication between the project Stakeholders.
 provides a means of tracking and monitoring the progress.
 provides a detailed documentation regarding planning decisions .
 Project planning is of significant importance for the
success of the project.
 Careful planning helps prevent costly mistakes.
 Good planning is the key to meet the project objectives within
defined time and budget.
07/16/2024 92
 Step 0: Select Project
• Called Step 0 because it is actually outside the main project
planning steps.
• While feasibility study suggests that there is a business case
for the project, it would still need to be established that it
should have priority over other projects.
• This evaluation can be part of project portfolio management.

07/16/2024 93
 Step 1: Identify Project Scope and Objectives
• 1.1. Identify objectives and practical measures of the effectiveness in meeting
those objectives
How do we know we are successful?
• 1.2: Establish a project authority
Who is the boss?
• 1.3. Stakeholder analysis – identify all stakeholders in the project and their
interests
Who does what?
• 1.4. Modify objectives in the light of stakeholder analysis
What shall we do for the commitment of stakeholders to the project?
• 1.5. Establish methods of communication with all parties
– How do we stay in touch and informed?

07/16/2024 94
• Step 2 : Identify project infrastructure
Step 2.2 : Identify installation standard and procedures
Step 2.3 : Identify project team organization

• Step 3 : Analyse project characteristics

Step 3.1 : Distinguish the project as either objectives- or product-driven.
Step 3.2 : Analyse other project characteristics
Step 3.3 : Identify high-level project risks
Step 3.4 : Take into account use requirements concerning implementation
Step 3.5 : Select development methodology and life-cycle approach
Step 3.6 : Review overall resource estimates

07/16/2024 95
 Step 4: Identify Project Products & Activities
 4.1. Identify and describe project products (or deliverables)

07/16/2024 96
 4.2. Document generic product flows

07/16/2024 97
 4.3. Recognize product instances
 4.4. Produce ideal activity network

07/16/2024 98
 4.5. Modify the ideal to take into account need for stages
and checkpoints
• Assumption of ideal activity network:
 an activity will start as soon as the preceding ones upon which it
depends have been completed.
• But we need to divide the project into stages and introducing
checkpoint activities
 to check that products of preceding activities are compatible.

• Milestones represent the completion of important stages of the

project of which managers would want to take particular note.
 Checkpoint activities are often useful milestones.

07/16/2024 99
 Step 5: Estimate Effort for Each Activity
17
 5.1. Carry out bottom-up estimates
Estimates for each activity is produced about
 staff effort required
 probable elapsed time
 non-staff resources

Elapsed time is different from effort!

 Effort is the amount of work that needs to be done.
 Elapsed time is the time between the start and end of a task.
 5.2. Revise plan to create controllable activities
 breakup very long activities into a series of smaller ones
 bundle up very short activities
 Step 6: Identify Activity Risks
18  6.1. Identify and quantify activity-based risks
Look at each activity in turn and assess the risks to its successful
outcome.
The damage that each risk could cause and the likelyhood of its
occurrence must be evaluated.
 6.2. Plan risk reduction and contingency measures where appropriate
Contingency plans specify action that is to be taken if a risk
materializes.
 6.3. Adjust overall plans and estimates to take account of risks
 Step 7: Allocate Resources
19  7.1. Identify and allocate resources
 7.2. Revise plans and estimates to take into account resource
constraints
 Step 8: Review/Publicize Plan
20  8.1. Review quality aspects of the project plan
Each task should have quality criteria.
These quality checks have to be passed before the activity can be
“signed off” as completed.
 8.2. Document plans and obtain agreement
Plans should be carefully documented.
All the parties to the project must understand and agree on the
plan.
21
Steps 9/10: Execute Plan/Lower Levels of Planning
 Once the project is under way, plans will need to be drawn up in greater
detail for each activity as it becomes due.
 Detailed planning of the later stages will need to be delayed because
more information will be available nearer the start of the stage.
 It is necessary to make provisional plans for the more distant tasks.
21

Thank You