Software Project Management

PowerPoint Presentation for Dennis, Wixom, & Tegarden Systems Analysis and Design with UML, 5th Edition
Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
Chapter 2:
Project Management

Learning Objectives
 Link information systems to business needs
 Learn how to create a system request
 Understand system feasibility
 Learn how to perform a feasibility analysis
 Understand how to select a project
 Become familiar with work breakdown structure, Gantt charts &
network diagrams
 Become familiar with use-case driven effort estimation
 Learn how to create an interactive project workplan
 Learn how to manage the scope, refine estimates and manage the
risk of a project
 Become familiar with how to staff a project
 Learn how the environment and infrastructure workflows interact
with the project management workflow

Introduction
 Project Management is the process of planning and
controlling system development within a specified time at a
minimum cost with the right functionality
 A project is a set of activities with a specified beginning and
end point meant to create a system that brings value to the
business
 Project Managers monitor and control all tasks and roles that
need to be coordinated

Agile Project Management
 “Plans don’t commit us. Our commitments commit us: the
plan is just a convenient place to write those commitments
down. Commitments are made by people, and documented in
project plans. When someone points to a project plan to show
that a commitment was made, it’s not really the piece of
paper that the person is pointing to. It’s the promise that’s
written down on it that everyone is thinking about.” ~
Stellman and Greene

Project Management Body of Knowledge
(PMBOK)
 This section is based on the Project Management Body of
Knowledge (PMBOK) that has been developed by the Project
Management Institute (PMI)
 PMI is a nonprofit professional organization with members
from every industry and large organization in the United States
as well as major international organizations
 With 500,000 members, it sponsors various conferences and
workshops around the globe on project management

Project Management Body of Knowledge (PMBOK)
PMPOK is organized into 10 knowledge areas:
 Project Integration Management—Integrating all the other
knowledge areas into one seamless whole
 Project Scope Management—Defining and controlling the
functions that are to be included in the system as well as the scope
of the work to be done by the project team
 Project Time Management—Creating a detailed schedule of all
project tasks and then monitoring the progress of the project against
defined milestones
 Project Cost Management—Calculating the initial cost/benefit
analysis and its later updates and monitoring expenditures as the
project progresses
 Project Quality Management—Establishing a comprehensive plan
for ensuring quality, which includes quality control activities for
every phase of a project

Project Management Body of Knowledge (PMBOK)
 Project Human Resource Management—Recruiting and hiring
project team members; training, motivating, and team building; and
implementing related activities to ensure a happy, productive team
 Project Communications Management—Identifying all
stakeholders and the key communications to each; also establishing
all communications mechanisms and schedules
 Project Risk Management—Identifying and reviewing throughout
the project all potential risks for failure and developing plans to
reduce these risks
 Project Procurement Management—Developing requests for
proposals, evaluating bids, writing contracts, and then monitoring
vendor performance
 Project Stakeholder Management—Identifying and
communicating with the stakeholders of the new system

PMBOK

Project Manager Responsibilities
 Internal Responsibilities
 Developing the project schedule
 Recruiting and training team members
 Assigning work to teams and team members
 Assessing project risks
 Monitoring and controlling project deliverables and milestones
 External Responsibilities
 Reporting the project’s status and progress
 Working directly with the client (the project’s sponsor) and other
stakeholders
 Identifying resource needs and obtaining resources

Stakeholders
Who do you involve and talk to?
 Stakeholders– persons who have an interest in the successful
implementation of the system
 Internal Stakeholders– persons within the organization
 External stakeholders – persons outside the organization
 Operational stakeholders – persons who regularly interact
with the system
 Executive stakeholders– persons who don’t directly interact,
but use the information or have financial interest
Systems Analysis and Design in a Changing World, 7th Edition - Chapter 2
©2016. Cengage Learning. All rights reserved.
10

Stakeholders of a comprehensive accounting system for
public company
Systems Analysis and Design in a Changing World,
7th Edition - Chapter 2
11

Patterson Superstore
Stakeholders
CEO
VP Grocery
Products
VP Pharmacy
(Max Ross)
Project Manager
Ruby Neiley
Integrated
Health Clinic
(IHC)
Medical staff
Clinic staff
VP Finance
VP Operations
&Technology
Senior Systems
Analyst
Kelly Herman
Special
Assistant

Project Identification
 Inception phase: generate a system request based on a business
need or opportunity
 Perform a feasibility analysis; revise the system request
 Approve or decline the project
 Projects are driven by business needs
 Identified by business people
 Identified by IT people
 (better yet) identified jointly by business and IT
 The project sponsor believes in the system and wants to see it
succeed
 Normally this is a business person
 Should have the authority to move it forward

Business Value
 Tangible Value
 Can be quantified and measured directly
 Example: 2 percent reduction in operating costs
 Intangible Value
 We know it will add value & save time, but we may not be able
to quantify or measure its benefits
 Example: improved customer service

The System Request
(Project Charter)
 A document that describes the reasons for and the value added from building
a new system
 Contains 5 elements:
• Project (executive) sponsor: the primary point of contact for the project
• Business need: the reason prompting the project (sometimes the business need is
framed as a “Problem Statement” – 2-3 sentences that define the business problem
that you’re asked to resolve or business opportunity you’re asked to capture as a
systems analyst)
• Business requirements: what the system will do (often called the Project Vision
Statement)
• Business value: how will the organization benefit from the project
• Special issues: Anything else that should be considered
• Because this document describes the expected results of the systems project
(deliverables) and the time frame for delivery, it essentially becomes a
contract (The Project Charter) between the project manager and the analysis
team with the organizational users requesting the new system.

Quiz on System Request (Vision
Statement and Project Charter)
 Read the Patterson SuperStore Case Study available on
Canvas
 Discuss and answer these questions in your learning pair
 What is the complete problem statement of the case study (in
your own words)?
 Why do you believe the business requirements and system
capabilities will generate the value expected?
 Identify in quantitative terms how each business requirements
accomplishes the business value listed in the case study
 What other additional information may be relevant to the
stakeholders of the project?

Feasibility Analysis
 Is this project feasible?
 What are the risks?
 Can these risks be overcome?
 Major components:
 Technical feasibility (Can we build it?)
 Economic feasibility (Should we build it?)
 Organizational feasibility (Will they use it?)

Technical Feasibility
 Identify risks in the following areas:
 The functional area: Are analysts familiar with this
portion of the business?
 The technology: Less familiarity generates more risk
 Project size: Large projects have more risk
 Compatibility: Difficult integration increases the risk

Economic Feasibility
(Cost-Benefit Analysis)
 Identify the costs and the benefits
 Assign values to the costs and benefits
 Determine the cash flow
 Determine the value using one or more methods:
 Net present value (NPV)
 Return on investment (ROI)
 Break-even point

Formulas for Determining Value

Calculating Financial Returns
Net Present Value
 The two basic concepts of net present value are (1)
that all benefits and costs are calculated in terms of
today’s dollars (that is, present value) and (2) that
benefits and costs are combined to give a net value—
hence, the name net present value
 Discount rate – the annual percentage rate that an
amount of money is discounted to bring it to a present
value
 Discount factor – the accumulation of yearly discounts
based on the discount rate
Systems Analysis and Design in a Changing World, 7th Edition - Online Chapter C

Return on Investment (ROI)
 Return on investment – calculates a percentage return (like an
interest rate) on the initial investment
 Sometimes, ROI calculations are done by using values that
include the discount factor
 At other times, ROI is done on purely a cash basis without
considering the organization’s assigned discount rate

Quantify Project Approval Factors
 Estimated Cost for Development

 Estimated Cost for Support

 Tangible “Dollar” Benefits
 Used for Cost/Benefit Analysis--process of comparing costs and
benefits to see whether investing in a new system will be
beneficial--

Return on Investment (ROI)

Example Cost-Benefit Analysis

Example Break-Even Point

Organizational Feasibility
 Will the users accept the system?
 Is the project strategically aligned with the business?
 Conduct a stakeholder analysis
 Project champion(s)
 Organizational management
 System users
 Others

Project Selection
 Projects are approved, declined or delayed based on
value added vs. risks
 Project portfolio management
 Goals:
 Maximize cost/benefit ratio
 Maintain an optimal mix of projects based on:
 Risk
 Size, cost & length of time to complete
 Purpose, scope & business value
 Limited resources require trade-offs
 Selected projects enter the project management
process

Project Management Tools
 Aids in creating workplans
 Identify all tasks, their sequence and estimate the time to
complete each one
 Work breakdown structures (WBS): a hierarchy of tasks to
identify:
 Duration of each task
 Current status of each task
 Task dependencies (shows which tasks must be completed
before others can begin)
 Gantt charts: horizontal bar chart that shows the WBS
graphically
 Network diagrams: PERT and CPM

Systems Analysis and Design in a Changing
World, 6th Edition
32
Systems Concepts

World, 6th Edition
33
Data Flow
Diagram
Symbols

Example Level 1 Data Flow Diagram (DFD)

Copyright © 2015 John Wiley & Sons, Inc. All rights reserved. 35
RMO’s
CSMS
Sample DFD
Context
Diagram

World, 6th Edition
36
Redraw this system into a hierarchy chart
(functional decomposition diagram)

Functional Decomposition Diagram
RMO's CSMS
Order Entry
Subsystem
Look up
item
availability
Create new
order
Update
Order
Produce Order
summary
reports
Produce
transaction
summary
reports
Order
Fulfillment
Subsystem
Look up
order
status
Record order
fulfillment
Record
back order
Create
order return
Product fulfillment
summary report
Customer
Maintenance
Subsystem
Product
catalog info
Produce
prospective
customer activity
reports
Update
customer
account
Distribute
promotional
package
Create customer
charge adjustment
Product customer
adjustment report
Catalog
Management
Subsystem
Update
catalog
Create special
product
promotion
Create new
catalog
Product catalog
activity reports
System being
analyzed
Subsystem
layer
Functions

Project Effort Estimation
 Estimation involves trade-offs between functionality, time
and cost
 It is the process of assigning projected values for time and
effort
 Most accurate estimates come from experience
 Use-case point method; based on:
 Technical complexity factors (13)
 Environmental factors (8)

Use-case Estimation Example
 Actors & Use-cases:

 Technical complexity factors:

 Environmental factors & final estimate:

Creating & Managing the
Workplan
 Workplan: a dynamic and sequential list of all tasks needed
to complete a project
 Approaches:
 Modify existing or completed projects
 Derive the tasks from the methodology being used
 Unified Process:
 Iterative & incremental
 Workplan is also iterative & incremental
 Tasks and time intervals follow the phases
 Different tasks executed for each workflow

MS Project Tasks Using Different
Methodologies
 Waterfall
 Use MS Project Software Development Plan Template
 Agile Unified Process
 Use “Unified Process MS Project Template” on Canvas
 Agile Scrum
 Use “Scrum MS Project Template” on Canvas

Create
Work
Breakdown
Structure
(WBS)
First Iteration of
CSMS Project

Project Schedule
Microsoft Project
 First cut Gantt Chart

PERT/CPM Charts
 PERT/CPM chart is a network diagram with boxes that
represent the tasks or activities of the project and with
connecting arrows that represent the sequence and dependencies
between tasks
 PERT, which stands for Project Evaluation and Review
Technique developed by the U.S. Department of Defense to
organize, monitor, and control very large, complex defense
projects
 CPM, which stands for Critical Path Method, was developed
independently
 In practice, the two techniques are combined

PERT/CPM chart
After identifying task dependencies

PERT/CPM chart
Critical Path
 Early start time – the earliest time that a task can begin due to
predecessor durations
 Late start time – the latest time that a task can start to maintain
the schedule
 Slack time – the amount of time a task or leg of sequential tasks
can be delayed without impacting the project schedule
On Critical Path Not On Critical Path

Project Schedule
Microsoft Project
 Resource Information for Project (People)

Project Schedule Using Microsoft Project
 Information about tasks

Project Schedule
Microsoft Project
 Assign resources to tasks

 Resource Usage Chart

Schedule the Work
 Gantt Chart for first iteration
 Shows task, duration, start date, predecessors, and resources
 Generates chart graphically showing dates, predecessors, tasks, and
critical path

Project Schedule
Microsoft Project
 Tracking Gantt Chart

 Network Diagram (The PERT/CPM Chart)

Schedule
the Work:
Work Breakdown
Structure (WBS)
with Time
Estimates and
Notes

Project Schedule
Microsoft Project
 Final Gantt Chart with Critical Path and Slack

Evolutionary
Work Breakdown Structures
 Organized in a standard manner across all projects
 Created in an incremental & iterative manner
 Generality supports learning from past mistakes and
successes
 Unified Process:
 Workflows are the major divisions
 Workflows are decomposed along the phases
 Phases are decomposed along the required tasks
 Tasks are added as each iteration is completed

Scope Management
 Scope “creep”
 Occurs after the project is underway
 Results from adding new requirements to the project
 Can have a deleterious effect on the schedule
 Techniques to manage the project scope:
 Identify all requirements at the outset
 Allow only those changes deemed absolutely necessary
 Carefully examine the impact of suggested changes
 Delay some changes for “future enhancements”
 Time boxing

Staffing the Project
 Goals:
 Determine how many people are required
 Match skill sets to required activities
 Motivate the team to meet the objectives
 Minimize conflicts
 Deliverable—The staffing plan, which includes:
 Number & kind of people assigned
 Overall reporting structure
 The project charter (describes the project’s objectives and rules)

Creating a “Jelled” Team
 A team of people so strongly knit that the whole is greater
than the sum of its parts
 Characteristics of a jelled team:
 Very low turnover rate
 Strong sense of identity
 A feeling of eliteness
 Team vs. individual ownership of the project
 Team members enjoy their work

The Staffing Plan
 Calculate the number of people needed:
 Lines of communication increase exponentially as people are
added to a project
 Create a reporting structure for projects with large numbers
of people assigned
 Form sub-teams as necessary
 Assign the Project Manager, Functional lead & Technical
lead
 Pay attention to technical and interpersonal skills

Motivating People
 Motivation is the greatest influence on performance
 Monetary rewards usually do not motivate
 Suggested motivating techniques:
 20% time rule
 Peer-to-peer recognition awards
 Team ownership (refer to the team as “we”)
 Allow members to focus on what interests them
 Utilize equitable compensation
 Encourage group ownership
 Provide for autonomy, but trust the team to deliver

Handling Conflict
 Preventing or mitigating conflict:
 Cohesiveness has the greatest effect
 Clearly defining roles and holding team members accountable
 Establish work & communications rules in the project charter
 Additional techniques:
 Clearly define plans for the project
 Make sure the team understands the importance of the project
 Develop detailed operating procedures
 Develop a project charter
 Develop a schedule of commitments in advance
 Forecast other priorities and their impact on the project

Environment & Infrastructure
Management
 Environment—Choose the right set of tools
 Use appropriate CASE tools to:
 Increase productivity and centralize information (repository)
 Utilize diagrams—more easily understood
 Establish standards to reduce complexity
 Infrastructure—Document the project appropriately
 Store deliverables & communications in a project binder
 Use Unified Process standard documents
 Don’t put off documentation to the last minute

Summary
 Project Initiation
 Feasibility Analysis
 Project Selection
 Traditional Project Management Tools
 Estimating Project Effort
 Create and manage the workplan
 Staff the project
 Manage the environment and infrastructure
work flows of the project

Software Project Management

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