Project Management & IT Project

Project Management & IT Project

IF 308 Manajemen Proyek Perangkat Lunak PROJECT INTEGRATION MANAGEMENT The Key to Overall Project Success: Good Project Integration Management Project managers must coordinate all of the other knowledge areas throughout a projects life cycle Many new project managers have trouble looking at the big picture and want to focus on too many details

(See opening case for a real example) Project integration management is not the same thing as software integration Project Integration Management Processes Develop the project charter: working with stakeholders to create the document that formally authorizes a projectthe charter Develop the preliminary project scope

statement: working with stakeholders, especially users of the projects products, services, or results, to develop the high-level scope requirements and create a preliminary project scope statement Develop the project management plan: coordinating all planning efforts to create a consistent, coherent documentthe project management plan Project Integration Management Processes (continued)

Direct and manage project execution: carrying out the project management plan by performing the activities included in it Monitor and control the project work: overseeing project work to meet the performance objectives of the

project Perform integrated change control: coordinating changes that affect the projects deliverables and organizational process assets Close the project: finalizing all Figure 4-1: Project Integration Management Summary What Went Wrong? The Airbus A380 megajet project was two years behind schedule in Oct. 2006, causing Airbus

parent company to face an expected loss of $6.1 billion over the next four years The project suffered from severe integration management problems, or integration disintegration... Early this year, when pre-assembled bundles containing hundreds of miles of cabin wiring were delivered from a German factory to the assembly line in France, workers discovered that the bundles, called harnesses, didn't fit properly into the plane. Assembly slowed to a near-standstill, as workers tried to pull the bundles apart and re-thread them through the fuselage. Now Airbus will have to go back to the drawing board and redesign the

Strategic Planning and Project Selection Strategic planning involves determining long- term objectives, predicting future trends, and projecting the need for new products and services Organizations often perform a SWOT analysis Analyzing Strengths, Weaknesses, Opportunities, and Threats As part of strategic planning, organizations: Identify potential projects Use realistic methods to select which projects to work on Formalize project initiation by issuing a project charter

Figure 4-2: Information Technology Planning Process Best Practice Only one in seven product concepts comes to fruition Companies like Proctor & Gamble, Johnson and Johnson, Hewlett Packard, and Sony are consistently successful in NPD because they use a disciplined, systematic approach to NPD projects based on best practices Four important forces behind NPD success include the

following: A product innovation and technology strategy for the business 2. Resource commitment and focusing on the right projects, or solid portfolio management 3. An effective, flexible and streamlined idea-to-launch process 4. The right climate and culture for innovation, true crossfunctional teams, and senior management commitment to NPD 1. Methods for Selecting Projects There are usually more projects than available time and resources

to implement them Methods for selecting projects include: Focusing on broad organizational needs

Categorizing information technology projects Performing net present value or other financial analyses Using a weighted scoring model Implementing a balanced scorecard Focusing on Broad Organizational Needs It is often difficult to provide strong justification for many IT projects, but everyone agrees they have a high value It is better to measure gold roughly than to

count pennies precisely Three important criteria for projects: There is a need for the project There are funds available Theres a strong will to make the project succeed Categorizing IT Projects One categorization is whether the project addresses: A problem An opportunity A directive

Another categorization is how long it will take to do and when it is needed Another is the overall priority of the project Financial Analysis of Projects Financial considerations are often an important consideration in selecting projects Three primary methods for determining

the projected financial value of projects Net present value (NPV) analysis Return on investment (ROI) Payback analysis Net Present Value Analysis Net present value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time

Projects with a positive NPV should be considered if financial value is a key criterion The higher the NPV, the better Net Present Value Example Note that totals are equal, but NPVs are not because

of the time value of money JWD Consulting NPV Example Multiply by the discount factor each year, then take cum. benefits

costs to get NPV NPV Calculations Determine estimated costs and benefits for the life of the project and the products it produces Determine the discount rate (check with your organization on what to use) Calculate the NPV (see text for details) Note: Some organizations consider the investment year as year 0, while others

start in year 1; some people enter costs as negative numbers, while others do not Check with your organization for their preferences Return on Investment Return on investment (ROI) is calculated by subtracting the project costs from the benefits and then dividing by the costs ROI = (total discounted benefits - total discounted costs) / discounted costs

The higher the ROI, the better Many organizations have a required rate of return or minimum acceptable rate of return on investment for projects Internal rate of return (IRR) can by calculated by finding the discount rate that makes the NPV equal to zero Payback Analysis Another important financial

consideration is payback analysis The payback period is the amount of time it will take to recoup, in the form of net cash inflows, the total dollars invested in a project Payback occurs when the net cumulative discounted benefits equals the costs Many organizations want IT projects to have a fairly short payback period Charting the Payback Period Weighted Scoring Model

A weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria 1. Identify criteria important to the project selection process 2. Assign weights (percentages) to each criterion so they add up to 100% 3. Assign scores to each criterion for each project 4. Multiply the scores by the weights and get

the total weighted scores The higher the weighted score, the better Sample Weighted Scoring Model for Project Selection Implementing a Balanced Scorecard Drs. Robert Kaplan and David Norton

developed this approach to help select and manage projects that align with business strategy A balanced scorecard: Is a methodology that converts an organizations value drivers, such as customer service, innovation, operational efficiency, and financial performance, to a series of defined metrics See for more information

Balanced Scorecard Example Project Charters After deciding what project to work on, it is important to let the rest of the organization know A project charter is a document that formally recognizes the existence of a project and provides direction on the projects objectives and management Key project stakeholders should sign a

project charter to acknowledge agreement on the need and intent of the project; a signed charter is a key output of project integration management Project Integration Management Overview Preliminary Scope Statements A scope statement is a document used to develop and confirm a common understanding of the project

scope Its important for preventing scope creep The tendency for project scope to keep getting bigger Its good practice to develop a preliminary or initial scope statement during project initiation and a more detailed scope statement as the project progresses

Project Management Plans A project management plan is a document used to coordinate all project planning documents and help guide a projects execution and control Plans created in the other knowledge areas are subsidiary parts of the overall project management plan Common Elements of a Project Management Plan Introduction or overview of the project

Description of how the project is organized Management and technical processes used on the project Work to be done, schedule, and budget information Sample Contents for a Software Project Management Plan (SPMP) What the Winners Do The winners clearly spell out what needs to be done in a project, by whom, when, and how. For this they

use an integrated toolbox, including PM tools, methods, and techniquesIf a scheduling template is developed and used over and over, it becomes a repeatable action that leads to higher productivity and lower uncertainty. Sure, using scheduling templates is neither a breakthrough nor a feat. But laggards exhibited almost no use of the templates. Rather, in constructing schedules their project managers started with a clean sheet, a clear waste of time.* *Milosevic, Dragan and Ozbay. Delivering Projects: What the Winners Do. Proceedings of the Project Management Institute Annual Seminars & Symposium (November 2001). Stakeholder Analysis

A stakeholder analysis documents important (often sensitive) information about stakeholders such as: Stakeholders names and organizations Roles on the project Unique facts about stakeholders Level of influence and interest in the project Suggestions for managing relationships Sample Stakeholder Analysis Project Execution

Project execution involves managing and performing the work described in the project management plan The majority of time and money is usually spent on execution The application area of the project directly affects project execution because the products of the project are produced during execution Coordinating Planning and Execution

Project planning and execution are intertwined and inseparable activities Those who will do the work should help to plan the work Project managers must solicit input from the team to develop realistic plans Providing Leadership and a Supportive Culture Project managers must lead by example to demonstrate the importance of

creating and then following good project plans Organizational culture can help project execution by: Providing guidelines and templates Tracking performance based on plans Project managers may still need to break the rules to meet project goals, and senior managers must support those actions Important Skills for Project Execution

General management skills like leadership, communication, and political skills Product, business, and application area skills and knowledge Use of specialized tools and techniques Project Execution Tools and Techniques Project management methodology: many experienced project managers believe the most effective way to improve project management is

to follow a methodology that describes not only what to do in managing a project, but how to do it Project management information systems: there are hundreds of project management software products available on the market today, and many organizations are moving toward powerful enterprise project management systems that are accessible via the Internet See the What Went Right? example of Kuala Lumpurs Integrated Transport Information System on p. 161 Monitoring and Controlling Project Work

Changes are inevitable on most projects, so its important to develop and follow a process to monitor and control changes Monitoring project work includes collecting, measuring, and disseminating performance information Two important outputs of monitoring and controlling project work include recommended corrective and preventive actions Integrated Change Control

Three main objectives are: Influencing the factors that create changes to ensure that changes are beneficial Determining that a change has

occurred Managing actual changes as they occur A baseline is the approved project management plan plus approved changes Change Control on Information Technology Projects Former view: the project team should strive to do exactly what was planned on time and within budget

Problem: stakeholders rarely agreed up-front on the project scope, and time and cost estimates were inaccurate Modern view: project management is a process of constant communication and negotiation Solution: changes are often beneficial, and the project team should plan for them Change Control System A formal, documented process that describes when and how official project documents and work may be

changed Describes who is authorized to make changes and how to make them Change Control Board (CCB) A formal group of people responsible for approving or rejecting changes on a project CCBs provide guidelines for preparing change requests, evaluate change requests, and manage the implementation of approved changes

Includes stakeholders from the entire organization Making Timely Changes Some CCBs only meet occasionally, so it may take too long for changes to occur Some organizations have policies in place for time-sensitive changes 48-hour policy allows project team members to make decisions, then they

have 48 hours to reverse the decision pending senior management approval Delegate changes to the lowest level possible, but keep everyone informed of Configuration Management Ensures that the descriptions of the projects products are correct and complete Involves identifying and controlling the functional and physical design characteristics of products and their support documentation Configuration management specialists

identify and document configuration requirements, control changes, record and report changes, and audit the products to verify conformance to requirements See for more information Suggestions for Performing Integrated Change Control Closing Projects To close a project, you must finalize all activities and transfer the

completed or cancelled work to the appropriate people Main outputs include: Administrative closure procedures Contract closure procedures Final products, services, or results Organizational process asset updates Using Software to Assist in Project Integration Management Several types of software can be used to assist in project integration management

Documents can be created with word-processing software Presentations are created with presentation software Tracking can be done with spreadsheets or databases Communication software like e-mail and Web authoring tools facilitate communications Project management software can pull everything

together and show detailed and summarized information Business Service Management (BSM) tools track the execution of business process flows Chapter Summary Project integration management includes: Developing a project charter Developing a preliminary project scope

statement Developing a project management plan Directing and managing project execution Monitoring and controlling project work Performing integrated change control Closing the project Resources slide presentation Information Technology Project

Management, Kathy Schwalbe, Fifth Edition, Copyright 2007

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