ELE4402. Software Engineering Project Management. Study Book. Faculty of Engineering & Surveying. Bachelor of Software Engineering.

Transcription

1 ELE4402 Software Engineering Project Management Faculty of Engineering & Surveying Bachelor of Software Engineering Study Book Written by Dr Wei Xiang BEng, MEng, PhD Lecturer in Computer System Engineering Faculty of Engineering & Surveying The University of Southern Queensland

2 Published by University of Southern Queensland Toowoomba QLD 4350 Australia < University of Southern Queensland, (1st edn), (2nd edn). Copyrighted materials reproduced herein are used under the provisions of the Copyright Act 1968 as amended, or as a result of application to the copyright owner. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without prior permission. The camera-ready PDF file is produced using PDFL A T E X by the author. Style file supplied by Ted Siebuhr, DEC. The following L A T E X 2ε packages were utilized: hyperref (hyperlinking for Acrobat PDF format); tabularx (tables); xcolor (table colors). AMS font system used for some mathematics, METAPOST used for the EPS figure drawing.

3 TABLE OF CONTENTS PAGE Module 1 Software Engineering Project Management Course Overview 0 Module 2 Introduction to Project Management Introduction What is a project What is project management How project management relates to other disciplines History of project management The Project management profession Project management careers, research, certification and ethics Project management software 9 Module 3 The Project Management and Information Technology Context A system view of project management Understanding organisations Stakeholder management The importance of top management commitment Project phases and the project life cycle Product life cycles Context of information technology projects Suggested skills for a project manager 8

4 Module 4 The Project Management Process Groups: A Case Study Project management process groups Developing an information technology project management methodology Case study: JWD consulting s project management intranet site project Project initiation Project planning Project executing Project controlling Project closing 8 Module 5 Project Integration Management What is project integration management Project plan development Project plan contents Using guidelines to create project plans Stakeholder analysis and top management support Project plan execution Integrated change control The integrated change control process Change control system Using software to assist in project integration management 10 Module 6 Project Scope Management What is project scope management Project initiation: strategic planning and project selection Methods for selecting projects Project charters Scope planning and the scope statement 8

5 6.4 Scope definition and the work breakdown structure Work breakdown structure Approaches to developing work breakdown structures Advice for creating a WBS Scope verification and scope change control Suggestions for improving user input Suggestions for reducing incomplete and changing requirements Using software to assist in project integration management 13 Module 7 Project Time Management Importance of project schedules Activity definition Activity sequencing Dependencies Network diagrams Activity duration estimation Schedule development Gantt charts Critical path method Critical chain scheduling Program evaluation and review technique (PERT) Controlling changes to the project schedule Using software to assist in project time management 14

6 Module 8 Project Cost Management Importance of project cost management Basic principles of cost management Resource planning Cost estimating Types of cost estimates Cost estimation tools, techniques and typical problems Cost budgeting Cost control Earned value management Project portfolio management Using software to assist in project cost management 12 Module 9 Project Quality Management What is project quality management Quality planning Quality assurance Quality control Tools and techniques for quality control Pareto analysis Statistical sampling Six sigma Quality control charts and the seven run rule Testing Modern quality management Improving information technology project quality Leadership The cost of quality Organisational influences, workspace factors, and quality Maturity models Using software to assist in project quality management 18

7 Module 10 Project Human Resource Management The importance of human resource management What is project human resource management Keys to managing people Motivation theories Influence and power Improving effectiveness Organisational planning Project organisational charts Responsibility assignment matrices Staff management plans and resource histograms Project staff acquisition Resource assignments Resource loading Resource levelling Team development Training Team-building activities Reward and recognition systems and general advice on teams Using software to assist in human resource management 14 Module 11 Project Communications Management The importance of project communications management Communications planning Information distribution Using technology to enhance information distribution Formal and informal methods for distributing information Understanding human and individual communications needs 6

8 Determining the number of communication channels Performance reporting Administrative closure Suggestions for improving project communications Using communication skills to manage conflict Developing better communication skills Running effective meetings Using effectively Using templates for project communications Developing a communications infrastructure Using software to assist in project communications 13 Module 12 Project Risk Management Importance of project risk management Risk management planning Common sources of risk on information technology projects Risk identification Qualitative risk analysis Using probability/impact matrixes to calculate risk factors Top ten risk item tracking Expert judgement Quantitative risk analysis Decision trees and expected monetary value Simulation Risk response planning Risk monitoring and control Results of good project risk management Using software to assist in project time management 13

9 Module 13 Project Procurement Management Importance of project procurement management Procurement planning Procurement planning tools and techniques Types of contracts Statement of work (SOW) Solicitation planning Solicitation Source selection Contract administration Contract close-out Using software to assist in project communications 11

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11 Module 1 SOFTWARE ENGINEERING PROJECT MANAGEMENT COURSE OVERVIEW

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13 Module 1 Software Engineering Project Management Course Overview 1.1 This course ELE4402 Software Engineering Project Management teaches you essential concepts, principles, and techniques relating to the project management aspects of software engineering. Software project management is of paramount importance to the success of software development projects. As revealed by the 2004 CHAOS Report from US analysts the Standish Group < com>, there was US$55 billion in waste, US$38 billion in lost value and US$17 billion in cost over-runs for information technology projects in the U.S. in In Australia, as described in an article titled Software Calamities Come at a High Price in The Australian on 30 Nov. 2004, the potential of software project failure due to improper project managment is formidable. For example, the National Australia Bank announced in Nov that it would write off $409 million in value from its key information technology systems. Earlier in 2004, Melbourne s RMIT University announced that they would spend $11 million re-implementing a failed student enrolment system. If that is not enough, Sydney Water wrote off $61 million on its now-abandoned customer records system last year due to its failure to understand the complexity of its customer implementation and billing service. All these data reveal one fact, that is, project management is tremendously important to the success of software development projects. That is the theme of this study book. This study book introduces a well established framework for project management, i.e., the Project Management Body of Knowledge (PMBOK Guide 2004) by the Project Management Institute (PMI). The study book focuses on the project management aspects of software development projects of various sizes. It covers all nine project management knowledge areas (project integration, scope, time, cost, quality, human resource, communications, risk and procurement management), and five process groups (initiating, planning, executing, controlling, and closing). The purpose of this study book is to serve as a study guide for students enrolled in ELE4402 Software Engineering Project Management. It consists of the following thirteen modules. Each module except Module 1 (Course Overview) has the following components: ➊ Objectives: this section describes the concepts and techniques you will learn in this section. It indicates what you should be able to do upon successful completion of the module. ➋ Learning resources: this section provides required and recommended learning resources relating to the module. ➌ Module overview: this section provides an overview introduction to the module. ➍ Activity: this section is the feature of the study book. Several activities are usually scattered in each module. The intention of the activities is to provide you with indepth activities relevant to important topics in the modules to consolidate their understanding of principles. You should attempt all activities. ➎ Reading: this section specifies which chapters/sections of the prescribed text or recommended texts you are required or recommended to read for each module. In order to fulfil the module s objectives, you have to read the reading materials marked as required. In order to gain additional and better understanding on

14 1.2 ELE4402 Software Engineering Project Management the topics, you are encouraged to read the reading materials marked as recommended. However, you are not disadvantaged in the examination of the course if you do not read the recommended materials. ➏ Review questions: this section provides some review questions for you to self test whether you fulfill the module s objectives. ➐ Exercises: this section provides some exercises relating to the topics covered in the module. It requires comprehensive understanding of the topics to complete the exercises. ➑ Minicase: at the end of modules 3 13, a minicase is provided as the case study of the module. You are encouraged to attempt all minicases. The overview structure of the modules covered in the study book is depicted in Figure 1.1. It is noted that the boxes numbered from one to nine in the figure correspond to Modules 5 to 13 in the study book. You should refer to the study timetable in the introductory book for the schedule to complete each module. You should attempt all activities as they are encountered, then complete all review questions and exercises at the end of each module. This study book has several distinctive features. First, it features many activities throughout the study book to foster your problem-solving abilities in the real world of project management. Second, it emphasises the application of project management theories and principles to software development projects. Third, case studies are a large element of this study book. At the end of Modules 3 13, there are minicase assignments for you to practise. Last, it encourages you to use various software tools to solve project management problems by having a dedicated section on this topic at the end of each module. The prescribed text of this course is Schwalbe, K. 2006, Information technology project management, 4th edn, Thomson Course Technology. It is bundled with a 120-day free trial version of Microsoft Project at no extra charge. The lecturer of this course maintains a course homepage at < ELE4402.html>. The course homepage provides various additional resources relating to the course including the lecture notes, journal articles, etc. There are some other recommended texts, such as Hughes, B. & Cotterell, M. 2002, Software Project Management, 3rd ed, McGraw-Hill, and Royce, W. 1998, Software Project Management: A Unified Framework, Addison-Wesley. The study book is largely based on materials in the prescribed text. As a result, you should use it in conjunction with Schwalbe s text. The study book presents essential principles, techniques, and tools in relation to software project management in Schwalbe s text in a concise and easy-to-understand way. Moreover, it provides many useful activities throughout the study book that expose you to practical software project management problems. Some extra materials not found in the prescribed text are also provided in the activities and selected readings. The structure of the study book is organised as follows:

15 Module 1 Software Engineering Project Management Course Overview 1.3 Figure 1.1: Overview of project management knowledge areas (source: PMBOK Guide 2004, p. 11)

16 1.4 ELE4402 Software Engineering Project Management Module 1 Course Overview: provides the course overview of this course. Module 2 Introduction to Project Management: provides an overview of the field project management, and an introduction to the project management profession. Module 3 The Project Management and Information Technology Context: provides a context for project management in general and software development projects in particular. Module 4 The Project Management Process Groups: describes the project management process groups, i.e., initiating, planning, executing, controlling, and closing. It also provides a matrix that relates the process groups to each knowledge area. Module 5 Project Integration Management: covers the details of the project integration management knowledge area. Module 6 Project Scope Management: covers the details of the project scope management knowledge area. Module 7 Project Time Management: covers the details of the project time management knowledge area. Module 8 Project Cost Management: covers the details of the project cost management knowledge area. Module 9 Project Quality Management: covers the details of the project quality management knowledge area. Module 10 Project Human Resource Management: covers the details of the project human resource management knowledge area. Module 11 Project Communications Management: covers the details of the project communications management knowledge area. Module 12 Project Risk Management: covers the details of the project risk management knowledge area. Module 13 Project Procurement Management: covers the details of the project procurement management knowledge area.

17 Module 2 INTRODUCTION TO PROJECT MANAGEMENT

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19 Module 2 Introduction to Project Management 2.1 Objectives On successful completion of this module, you should be able to: ➀ understand the growing need for better project management, especially for information technology projects ➁ explain what a project is and provide examples of information technology projects ➂ describe what project management is and discuss key elements of the project management framework ➃ discuss how project management relates to other disciplines ➄ understand the history of project management ➅ describe the project management profession, including recent trends in project management research, certification, and software products. Learning resources Text Chapter 1, Schwalbe (4th edition) Selected reading Selected reading 2.1: Appendix A, Hughes and Cotterell (3rd edition) Module overview This module is the introduction to project management. It starts with the definitions of projects and project management, and then explains how project management relates to other disciplines. This module also reviews the brief history of project management. The current development of the project management discipline and profession are discussed, including careers, research, certification, ethics, and the software of project management. In the following sections, we briefly summarise the key concepts and principles contained in this module.

20 2.2 ELE4402 Software Engineering Project Management 2.1 Introduction Project management originated from, and primarily focused on providing services to the military and construction industries until the 1980s. Now, project management has widely spread into almost every industry including the software and information technology (IT) industries. The following statistics demonstrates the significance of project management in today s society: the U.S. spends $2.3 trillion on projects every year that is equal to 1/4 of the nation s GDP the world spends $10 trillion on projects out of its $40.7 trillion GDP more than 6 million people regard project management as their profession disappointingly, the overall success rate of IT projects was only 16.2%. Many organisations claim that using project management provides the following advantages: better control of financial, physical, and human resources improved customer relations shorter development times lower costs higher quality and increased reliability higher profit margins improved productivity better internal coordination higher worker morale. 2.2 What is a project A guide to the project development body of knowledge (PMBOK Guide) 2004 edition, published by the Project Management Institute (PMI), is an American national standard for project management. As defined in the PMBOK Guide 2004, a project is a temporary endeavor undertaken to create a unique product or service. A project normally exhibits the following attributes: A project has a unique purpose

21 Module 2 Introduction to Project Management 2.3 A project is temporary A project requires resources, often from various areas A project should have a primary customer or sponsor A project involves uncertainty. The triple constraint of projects refers to scope, time and cost: ➊ Scope: What is the project trying to accomplish? ➋ Time: How long should it take to complete the project? ➌ Cost: What should it cost to complete the project? Managing the triple constraint involves making trade-offs between scope, time, and cost goals for a project. Moreover, quality as well as customer or sponsor satisfaction also play significant roles. Quality, scope, time, and cost are sometimes referred to as the quadruple constraint of project management. Activity 2.1 Australian institute of project management (AIPM) The Australian Institute of Project Management (AIPM) has developed sets of competency standards, recognised as the Australian national standards, to support the certification of project managers. Visit the AIPM s website at < and find out what the nice functions covered in the competency standards are and their similarities and differences with the 9 knowledge areas in the PMBOK Guide 2004.

22 2.4 ELE4402 Software Engineering Project Management Activity 2.2 PRINCE 2 an overview Read through Appendix A, Hughes and Cotterell s text (3rd edition). Understand that PRINCE 2 is the UK standard for project management initiated by the Central Computer and Telecommunications Agency (CCTA). List all the components that PRINCE 2 includes on the left side of blank paper, and list all the components that PMBOK Guide 2004 on the right side of the same paper. Try to connect the components included in the PRINCE 2 to the 9 knowledge areas in the PMBOK Guide What is project management Project management is defined as the application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements. Figure 2.1 illustrates the Project Management Framework as in the figure 1-2 of the textbook. As depicted in the framework, stakeholders are the people involved or affected by project activities and include the project sponsor, project team, support staff, customers, users, supplies, and even opponents to the project. As outlined in the PMBOK Guide 2004 and depicted in the project management framework in Figure 2.1, there are 9 project management knowledge areas, which describe project management knowledge and practice in terms of their component processes. Figure 2.2 illustrates the overview of project management knowledge areas and project management processes. The four core knowledge areas are briefly described below: ➊ Project scope management: involves defining and managing all the work required to complete the project successfully. ➋ Project time management: includes estimating how long it will take to complete the work, developing an acceptable project schedule, and ensuring timely completion of the project. ➌ Project cost management: consists of preparing and managing the budget for the project. ➍ Project quality management: ensure that the project will satisfy the stated or implied needs for which it was undertaken.

23 Module 2 Introduction to Project Management 2.5 Figure 2.1: Project Management Framework (source: Schwable 2006, Fig. 1-2.) These are called core knowledge areas because they lead to specific project objectives. There are also four facilitating knowledge areas of project management: ➊ Project human resource management: is concerned with making effective use of people involved with the project. ➋ Project communications management: involves generating, collecting, disseminating, and storing project information. ➌ Project risk management: includes identifying, analysing, and responding to risks related to the project. ➍ Project procurement management: involves acquiring, procuring goods services for a project from outside the performing organisation. These are called facilitating knowledge areas because they are the processes through which the project objectives are achieved. The ninth knowledge area, called project integration management, is an overarching function that affects and is affected by all of the other knowledge areas. Project portfolio management is an emerging business strategy, in which organisations group and manage projects as a portfolio of investments that contribute to the entire enterprise s success. Project portfolio management will be discussed in detail in Module 8 (Project Cost Management). Throughout each knowledge area, there are many commonly used tools and techniques to assist project managers and their teams in achieving project objectives. Table 2.1 lists some commonly used tools and techniques in the nine project management knowledge areas.

24 2.6 ELE4402 Software Engineering Project Management Figure 2.2: Overview of project management knowledge areas and project management processes (source: PMBOK Guide 2004, p. 11)

25 Module 2 Introduction to Project Management 2.7 Table 2.1: Project management tools and techniques in 9 knowledge areas Knowledge Area Integration management Scope management Time management Cost management Quality management Human resource management Communications management Risk management Procurement management Commonly Used Tools and Techniques Stakeholder analysis, Project plans, Project management software, Change control boards, Configuration management, Project review meetings, Work authorisation systems, Project leadership, Executive sponsorship Net present value, Return on investment, Payback, Weighted scoring models, Business cases, Project charters, Scope statements, Work breakdown structures, Statement of work, Requirements analysis, Scope change control Gantt charts, Network diagrams, Critical path analysis, Program evaluation review technique, Critical chain scheduling, Crashing, Fast tracking, Milestone reviews Earned value management, Project portfolio management, Cost estimates, Cost management plan, Financial software Six Sigma, Quality control charts, Pareto diagrams, Fishbone or Ishikawa diagrams, Quality audits, Maturity models, Statistical methods Motivation techniques, Empathic listening, Team contracts, Responsibility assignment matrices, Resource histograms, Resource loading, Resource leveling, Team-building exercises Communications management plan, Conflict management, Communications media selection, Communications infrastructure, Status reports, Meetings, Virtual communications, Templates, Project web sites Risk management plan, Probability/impact matrix, Risk ranking, Monte Carlo simulation, Top-ten risk item tracking Make-or-buy analysis, Contracts, Requests for proposals or quotes, Source selection, Negotiating, E- procurement

26 2.8 ELE4402 Software Engineering Project Management 2.4 How project management relates to other disciplines The nature of projects lies in that projects are unique, temporary, and involve various resources. This nature distinguishes project management from general or operation management. A project manager must focus on integrating all the various activities required to complete the project, whereas most of the tasks performed by a general or operation managers are repetitive, ongoing, and done as day-to-day activities. This subject and thus this study book are focused on software and information projects, which include computer software, computer hardware, and telecommunications technology. There are some differences between managing software and IT projects, but there are even more similarities. 2.5 History of project management It has been commonly recognised that the modern concept of project management began with the Manhattan Project, which was a U.S. military project for developing the atomic bomb. The project lasted three years and cost almost $2 billion in In the early days of modern project management development, the military was the key industry behind the development of several project management techniques. Henry Gantt invented the famous Gantt chart in 1917, which is a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar format. Network diagrams were first used by members of the Navy Polaris missile/submarine project in Details about Gantt charts and network diagrams will be discussed in Module 7 Project Time Management. The military also pioneered using software to help manage large projects. Early software products for project management were expensive and hard to use. The sophistication and effectiveness of project management software have been significantly improved. Web-based and enterprise project management software has emerged, which integrates information from multiple projects to show the status of active, approved, and future projects across an entire organisation and provides links to more detailed information. Today, project management is used in some form in virtually all organisations and disciplines. The project managers challenge is to understand the concepts of project management and determine what tools and techniques should be applied on specific projects and in specific organisations.

27 Module 2 Introduction to Project Management The Project management profession Project management has spread into almost every discipline including information technology. Researchers and practitioners are continuing to develop the project management profession to respond to social and economic changes and to remain competitive Project management careers, research, certification and ethics The Project Management Institute (PMI, < is an international professional society for project managers. By early 2003, it has more than 100,000 members worldwide. Within PMI, there are Specific Interest Groups (SIGs) that enable members to share ideas about project management in their specific application areas. The PMI has SIGs for information systems, aerospace/defense, financial services, healthcare, hospitality management, manufacturing, new product development, retail, urban development, and so on. The Information Systems SIG has about 15,000 members. To deal with increased challenges of projects in the 1990s, many organisations began creating the Project Management Office (PMO). A PMO is an organisational group responsible for coordinating the project management function throughout an organisation. Groups like the PMI and Standish Group are actively participating in the research of project management. The PMI holds its international research conference on project management, whereas the Standish Group holds its CHAOS University to update and analyse information related to IT projects. The International Journal of Project Management and other publications also publish research papers on project management. The Project Management Professional (PMP) is a certification program provided by the PMI. Certified PMPs are supposed to have documented sufficient project experience and education, agreed to follow the PMI code of professional conduct, and demonstrated knowledge of the field of project management by passing a comprehensive examination. CompTIA s IT Project+ certification is another improtant project management certification program. The PMI developed a PMP Code of Professional Conduct that all certified PMPs must agree to. PMP code of professional conduct lists responsibilities to both the profession and customers and the public Project management software In 1999, the PMI published a Project Management Software Survey that described and compared more than 200 project management software tools. The Project Management Center < is a Web site that provides

28 2.10 ELE4402 Software Engineering Project Management an alphabetical listing of and links to hundreds of products that help manage projects. Based on functionality and price, project management software tools can be dived into the following three general categories: ➊ Low-end tools: these tools provide basic project management features and generally cost less than US$200 per user. Most of these tools allow users to create Gantt charts. Examples include Milestones Simplicity by KIDASA Software, How s it going? by LogicAbility. ➋ Midrange tools: these tools are designed to handle larger projects, multiple users, and multiple projects. Prices range from about US$200 to US$500 per user. All of these tools can produce Gantt charts and network diagram, assist in critical path analysis, resource allocation, project tracking, status reporting, and so on. The most popular tool in this category is Microsoft Project Other examples include Artemis, PlanView, Primavera, Welcom, and so on. ➌ High-end tools: also referred to as enterprise project management software. These tools provide enterprise functions that summarise and combine individual project information to provide an enterprise view of all projects, intergrate with enterprise database management software, and are accessible via the Internet. Examples include Niku s Workbench, Primavera s TeamPlay, and Microsoft enterprise version of Project Server 2003.

29 Module 2 Introduction to Project Management 2.11 Reading Read Schwalbe s text Chapter 1. Review questions Complete Discussion Questions 1 6 in Schwalbe s text chapter 1 to fulfil the objectives of Module 2. Exercises Complete Exercises 1 5 in Schwalbe s text Chapter 1.

30 References Schwalbe, K 2006, Information technology project maangement, 4th edn, Thomson Course Technology. Project Management Institution (PMI), 2004, Project management body of knowledge (PMBOK Guide 2004), Project Management Institution.

31 Module 3 THE PROJECT MANAGEMENT AND INFORMATION TECHNOLOGY CONTEXT

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33 Module 3 The Project Management and Information Technology Context 3.1 Objectives On successful completion of this module, you should be able to: ➀ understand the systems view of project management and how it applies to information technology projects ➁ analyze a formal organization using the structural, human resources, political, and symbolic organizational frames ➂ describe the differences among functional, matrix, and project organizational structures ➃ explain why stakeholder management and top management commitment are critical for a project s success ➄ understand the concept, development, implementation, and close-out phases of the project life cycle ➅ distinguish between project development and product development ➆ discuss the unique attributes and diverse nature of information technology projects ➇ list the skills and attributes of a good project manager in general and in the information technology field. Learning resources Text Chapter 2, Schwalbe (4th edition) Selected reading Selected reading 3.1: Chapter 5, Royce

34 3.2 ELE4402 Software Engineering Project Management Module overview This module discusses the context for project management in general and information technology projects in particular. It describes the importance of taking a systems view when selecting and working on projects, understanding organizations and stakeholders, the project and product life cycles, the unique nature of information technology projects, and important skills and attributes for good project managers. In the following sections, we briefly summarise the key concepts and principles presented in this module. 3.1 A system view of project management Systems are sets of of interacting components working within an environment. There are a few terms related to systems explained as follows: ➊ System thinking: describes the holistic view of carrying out projects within the context of the organisation. ➋ System approach: emerged in the 1950s and describes a holistic and analytic approach to solving complex problems that includes using a systems philosophy, systems analysis, and systems management. ➌ Systems philosophy: is an overall model for thinking about things as systems. ➍ Systems analysis: is a problem-solving approach that requires defining the scope of the system, dividing it into its components, and then identifying and evaluating its problems, opportunities, constraints, and needs. ➎ Systems management: addresses the business, technological, and organisational issues associated with making a change to a system. There are three spheres in the systems management model, namely, business, organisation, and technology. Refer to Figure 2-1 (Three-sphere model for systems management) in the textbook for a graphical presentation. Using a systems approach is critical to successful project management. Moreover, using a holistic approach helps project managers integrate business and organisational issues into their planning.

35 Module 3 The Project Management and Information Technology Context Understanding organisations Organisations have four different frames explained as follows: ➊ Structural frame: deals with how the organisation is structured and focuses on the different groups roles and responsibilities in order to meet the goals and policies set by top management. ➋ Human resources frame: focuses on producing harmony between the needs of the organisation and the needs of the people. ➌ Political frame: addresses organisational and personal politics. ➍ Symbolic frame: focuses on symbols and meanings. The organisational structures can be classified into three classes: ➊ Functional organisational structure: the most common organisational structure in which functional managers or vice presidents report to the chief executive officer (CEO). ➋ Project organisational structure: also has a hierarchical structure in which project managers report to the CEO. ➌ Matrix organisational structure: represents the middle ground between functional and project structures. Personnel report to both a functional manager and one or more project managers. Figure 3.1 depicts the functional, project, and matrix organisational structures. It can be concluded that project managers have the most authority in a pure project organisation and the least amount of authority in a pure functional organisation. 3.3 Stakeholder management As stated in the Module 2, project stakeholders are the people involved in or affected by project activities. Stakeholders can be internal or external to the organisation: Internal project stakeholders: include the project sponsor, project team, support staff, and internal customers for the project, top management, other functional managers, and other project managers. External project stakeholders: include the project s customers, competitors, suppliers, and other external groups potentially involved in or affected by the project, such as government officials or concerned citizens.

36 3.4 ELE4402 Software Engineering Project Management Figure 3.1: Three organisational structures (source: Schwalbe 2006, Fig. 2-2.)

37 Module 3 The Project Management and Information Technology Context 3.5 Because the purpose of project management is to meet project requirements and satisfy stakeholders, it is critical for project managers to identify, understand, and manage relationships with all project stakeholders The importance of top management commitment The 2001 Standish Group study results revealed the ten factors, in order of importance, that contributed most to success of information technology projects: ➊ executive (top management) support ➋ user involvement ➌ experienced project manager ➍ clear business objectives ➎ minimised scope ➏ standard software infrastructure ➐ firm basic requirement ➑ formal methodology ➒ reliable estimates. It was clear that executive support or top management commitment was the important factor to the project success. There are several reasons why top management commitment is crucial to project managers: project managers need adequate resources project managers often require approval for unique project needs in a timely manner project managers must have cooperation from people in other parts of the organisation project managers often need to someone to mentor and coach them on leadership issues. Organisation s commitment to information technology in general is another factor affecting the success of IT projects.

38 3.6 ELE4402 Software Engineering Project Management 3.4 Project phases and the project life cycle A project life cycle is a collection of the following four project life phases : ➊ Concept: Sample deliverables in this phase include the management plan, preliminary cost estimate, and 3-level WBS. ➋ Development: Sample deliverables in this phase include the project plan, budgetary cost estimate, and 6+-level WBS. ➌ Implementation: Sample deliverables in this phase include the last work package, definitive cost estimate, performance reports. ➍ Close-out: Sample deliverables in this phase include the completed work, lessons learned, customer acceptance. The first two phases are often referred to as project feasibility as they focus on planning, while the last two phases are often referred to as project acquisition as they focus on delivering the actual work. Figure 3.2 depicts the framework for the four phases of a project life cycle. Figure 3.2: Phases of the Project Life Cycle (source: Schwalbe 2006, Fig. 2-3.) Activity 3.1 Life-cycle phases Read through Chapter 5, Royce s text. Compare the four life-cycle phases in Royce s text to the phases of the project life cycle depicted in Figure 3.2. Try to answer the following question: What are the similarities and differences between the four life-cycle phases in Royce s text and the phases of the project life cycle in Schwalbe s text?

39 Module 3 The Project Management and Information Technology Context Product life cycles Like projects, products also have a life cycle. Different types of products have different life cycles. Software development projects are one subset of information technology projects. A systems development life cycle (SDLC) is a framework for describing the phases involved in developing information systems. A SDLC includes the following popular life cycle model: Waterfall life cycle model: assumes that requirements will remain stable after they are defined. Spiral life cycle model: recognises the fact that most software is developed using an iterative or spiral approach rather than a linear approach. Incremental build life cycle model: provides for progressive development of operational software, with each release providing added capabilities. Prototyping life cycle model: is used for developing software prototypes to clarify user requirements for operational software. Rapid Application Development (RAD) life cycle model: uses an approach in which developers work with an evolving prototype. Developers use RAD tools such as computer-aided software engineering (CASE), joint requirements planning (JRP), and joint application design (JAD) to facilitate rapid prototyping and code generation. The above life cycle models are referred to as predictive life cycle, meaning that the scope of the project can be clearly articulated and the schedule and cost can be accurately predicated. On the contrary, the adaptive software development (ASD) life cycle model assumes software development follows an adaptive approach that projects are mission driven and component-based using time-based cycles to meet target dates. Extreme Programming (XP) and Scrum are two popular ASD life cycle models: Extreme Programming (XP): meets the needs of people developing software in rapidly changing environments. One unique feature of the XP life cycle model is that developers program in pair to promote synergy and increase productivity. Another unique feature of XP is that software developers must write the test code for their own code. Scrum: uses iterative development to address changing requirements, but the repetitions are referred to as sprints that normally last 30 days. Each day the entire team meets for a short meeting, called a scrum, where they decide to what to accomplish that day.

40 3.8 ELE4402 Software Engineering Project Management It is important to appreciate the difference between the project life cycle and product life cycle. The project life cycle applies to all projects independent of products being produced, while product life cycle models vary considerately based on the nature of the product. 3.5 Context of information technology projects This section highlights some issues unique to software development and information technology projects, which include the nature of projects, the characteristics of project team members, and the diverse nature of technologies involved. Information technology projects are very diverse. Some involve software development. Some are hardware-oriented projects. Others involve both software and hardware. Moreover, technologies used in IT projects change rapidly. As a result, people involved in IT projects come from very diverse backgrounds and possess different skill sets. 3.6 Suggested skills for a project manager For project managers, soft skills or people skills such as strong management, communication, leadership, and political skills are important in achieving high performance on projects. The following skills are desirable for all project managers: strong orgnisational skills teamwork skills strong coping skills be flexible, creative, and patient make effective use of technology. For IT project managers, both technical and soft skills are important. Unfortunately, many people in information technology focus more on technical skills.

41 Module 3 The Project Management and Information Technology Context 3.9 Reading Read Schwalbe s text Chapter 2. Review questions Complete Discussion Questions 1 7 in Chapter 2, Schwalbe s text to fulfil the objectives of Module 3. Exercises Complete Exercises 1 5 in Chapter 2, Schwalbe s text. Minicase Complete the Minicase in Chapter 2, Schwalbe s text.

42 References Schwalbe, K 2006, Information technology project maangement, 4th edn, Thomson Course Technology. Royce. W 1998, Software project management: a unified framework, Addison-Wesley.

43 Module 4 THE PROJECT MANAGEMENT PROCESS GROUPS: A CASE STUDY

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45 Module 4 The Project Management Process Groups: A Case Study 4.1 Objectives On successful completion of this module, you should be able to: ➀ describe the five project management process groups, the typical level of activity for each, and the interactions among them ➁ understand how the project management process groups relate to the project management knowledge areas ➂ discuss how organizations develop information technology project management methodologies to meet their needs ➃ review a case study of an organization applying the project management process groups to manage an information technology project ➄ understand the contribution that effective project initiation, project planning, project execution, project control, and project closing make to project success. Learning resources Text Chapter 3, Schwalbe (4th edition) Selected reading Selected reading 4.1: Section 1.1, Royce Module overview This module describes the five project management process groups and how they relate to the nine knowledge areas. It also describes how organizations can develop their own information technology project management methodologies to help manage their own projects in their unique environments. A large part of this chapter describes a detailed case study to show how to apply the project management process groups (initiating, planning, executing, controlling, and closing) to an information technology

46 4.2 ELE4402 Software Engineering Project Management project. The case study uses many of the templates provided in Appendix D of the text. In the following sections, we briefly summarise the key concepts and principles presented in this module. 4.1 Project management process groups A process is a series of actions directed towards a particular result. Project management process groups include the following five processes: ➊ Initiating processes: include actions to begin or end projects and project phases. ➋ Planning processes: include devising and maintaining a workable scheme to ensure the project addresses the company s needs. ➌ Executing processes: include coordinating people and resources to carry out the project plans and produce the deliverables of the project or phase. ➍ Controlling processes: ensure that the project team meets the project objectives. ➎ Closing processes: include formalising acceptance of the phase or project and ending it efficiently. The project management process groups and how they relate to each other for each major phase of a project is shown in Figure 4.1. As noted from this figure, the executing processes require the most resources and time, followed by the planning process. The initiating and closing processes require the least amount of resources and time. Note that Figure 4.1 can be applied either to each major phase of a project, namely, concept, development, implementation, and close-out as mentioned in Module 3, or an entire project. The certain tasks accomplished by each of the five project management process groups are summarised as follows: ➊ Initiating processes: complete a business case and project charter, select the project manager and key team members. ➋ Planning processes: complete the work breakdown structure, scope statement, the project schedule, and the project budget. ➌ Executing processes: delivery the actual work of the project. ➍ Controlling processes: complete the project successfully by delivering the agreeupon project scope within time, cost, and quality constraints. ➎ Closing processes: formal acceptance of the work and creation of closing documents, such as a final project report and lessons-learned report.

47 Module 4 The Project Management Process Groups: A Case Study 4.3 Figure 4.1: Overlap of Process Groups in a Phase (source: Schwalbe 2006, Fig. 3-1.) The main activities of each project management processes group can mapped into the nine project management knowledge ares. Table 4.1 (Table 3-1 in Schwalbe s text) shows how 39 project management activities are fitted into the 5 process groups, and the 9 knowledge areas. 4.2 Developing an information technology project management methodology Many organisations use the PMBOK Guide 2004 as a basis of their internal information project management methodologies. However, the project team of a organisation may realise that they would need to drop or deemphasize some processes in the PMBOK Guide 2004 to cater for the organisation s special needs. For example, in contrast to other industries where the overriding financial investment is in materials, the software development industry has salaries as its main financial investment. As a result, most of the procurement functions are absorbed into other processes, such as scope planning and definition, and resource planning. On the other hand, the project team may also add additional processes. For instance, some project teams develop new processes such as project book records, issue control, work plan development and project change control. These new processes combine several activities in the PMBOK Guide 2004 into one process, and are tailored