Lecture notes on Software Project management

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Syllabus M.C.A. (Sem-IV), Paper-V Software Project Management 1. Introduction a. What is project? b. What is project Management c. The role of project Manager d. The project Management Profession e. Project life cycle 2. Technology Context a. A system view of project management b. Understanding organizations c. Stakeholder management d. Project phases and the project life cycle e. The context of information technology projects 3. Introduction a. Developing the project schedule b. Project management software tools c. Developing the project budget d. Finalizing the project schedule and budget e. Monitoring and controlling the project f. The project communications plan g. Project metrics h. Reporting performance and progress i. Information distribution 4. The importance of project risk management a. Risk management planning b. Common sources of risk on information technology projects c. Risk identification d. Qualitative risk analysis e. Quantitative risk analysis f. Risk response planning g. Risk monitoring and control h. Using software to assist in project risk management 5. The importance of project procurement management a. Planning purchase and acquisitions b. Planning contracting c. Requesting seller responses d. Selecting sellers e. Administering the contract f. Closing the contract g. Using software to assist in project management h. Outsourcing 6. Change management3 1 INTRODUCTION Unit Structure: 1.1 What is a project? 1.1.1 Project Definition 1.2 Project Attributes 1.3 Project Constraints 1.3.1 Time 1.3.2 Cost 1.3.3 Scope 1.4 What is Project Management 1.4.1 Features of projects 1.4.2 Project Classification 1.4.3 Project Management Tools and techniques 1.4.4 Project Success Factors 1.5 The Role of Project Manager 1.5.1 Responsibilities of a Project Manager. 1.6 Project Life Cycle 1.6.1 Project Initiation 1.6.2 Planning & Design 1.6.3 Execution & Controlling 1.6.4 Closure Project management has been practiced since early civilization. Until the beginning of twentieth century civil engineering projects were actually treated as projects and were generally managed by creative architects and engineers. Project management as a discipline was not accepted. It was in the 1950s that organizations started to systematically apply project management tools and techniques to complex projects. As a discipline, Project Management developed from several fields of application including construction, engineering, and defense activity. Two forefathers of project management are commonly known: Henry Gantt, called the father of planning and control techniques who is famous for his use of the Gantt chart as a project management tool; and Henri Fayol for his creation of the five management functions which form the foundation of the body of4 knowledge associated with project and program management. The 1950s marked the beginning of the modern Project Management era. Project management became recognized as a distinct discipline arising from the management discipline. 1.1 WHAT IS A PROJECT? All of us have been involved in projects, whether they be our personal projects or in business and industry. Examples of typical projects are for example:  Personal projects:  obtaining an MCA degree  writing a report  planning a party  planting a garden  Industrial projects:  Construction of a building  provide electricity to an industrial estate  building a bridge  designing a new airplane Projects can be of any size and duration. They can be simple, like planning a party, or complex like launching a space shuttle. 1.1.1 Project Definition: A project can be defined in many ways : A project is “a temporary endeavor undertaken to create a unique product, service, or result.” Operations, on the other hand, is work done in organizations to sustain the business. Projects are different from operations in that they end when their objectives have been reached or the project has been terminated. A project is temporary. A project’s duration might be just one week or it might go on for years, but every project has an end date. You might not know that end date when the project begins, but it’s there somewhere in the future. Projects are not the same as ongoing operations, although the two have a great deal in common. A project is an endeavor. Resources, such as people and equipment, need to do work. The endeavor is undertaken by a team or an organization, and therefore projects have a sense of5 being intentional, planned events. Successful projects do not happen spontaneously; some amount of preparation and planning happens first. Finally, every project creates a unique product or service. This is the deliverable for the project and the reason, why that project was undertaken. 1.2 PROJECT ATTRIBUTES Projects come in all shapes and sizes. The following attributes help us to define a project further: - A project has a unique purpose. Every project should have a well-defined objective. For example, many people hire firms to design and build a new house, but each house, like each person, is unique. - A project is temporary. A project has a definite beginning and a definite end. For a home construction project, owners usually have a date in mind when they’d like to move into their new homes. - A project is developed using progressive elaboration or in an iterative fashion. Projects are often defined broadly when they begin, and as time passes, the specific details of the project become clearer. For example, there are many decisions that must be made in planning and building a new house. It works best to draft preliminary plans for owners to approve before more detailed plans are developed. - A project requires resources, often from various areas. Resources include people, hardware, software, or other assets. Many different types of people, skill sets, and resources are needed to build a home. - A project should have a primary customer or sponsor. Most projects have many interested parties or stakeholders, but someone must take the primary role of sponsorship. The project sponsor usually provides the direction and funding for the project. - A project involves uncertainty. Because every project is unique, it is sometimes difficult to define the project’s objectives clearly, estimate exactly how long it will take to complete, or determine how much it will cost. External factors also cause uncertainty, such as a supplier going out of business or a project team member needing unplanned time off. This uncertainty is one of the main reasons project management is so challenging.6 1.3 PROJECT CONSTRAINTS Like any human undertaking, projects need to be performed and delivered under certain constraints. Traditionally, these constraints have been listed as scope, time, and cost. These are also referred to as the Project Management Triangle, where each side represents a constraint. One side of the triangle cannot be changed without impacting the others. A further refinement of the constraints separates product 'quality' or 'performance' from scope, and turns quality into a fourth constraint. The time constraint refers to the amount of time available to complete a project. The cost constraint refers to the budgeted amount available for the project. The scope constraint refers to what must be done to produce the project's end result. These three constraints are often competing constraints: increased scope typically means increased time and increased cost, a tight time constraint could mean increased costs and reduced scope, and a tight budget could mean increased time and reduced scope. The discipline of project management is about providing the tools and techniques that enable the project team (not just the project manager) to organize their work to meet these constraints. Another approach to project management is to consider the three constraints as finance, time and human resources. If you need to finish a job in a shorter time, you can allocate more people at the problem, which in turn will raise the cost of the project, unless by doing this task quicker we will reduce costs elsewhere in the project by an equal amount. 1.3.1 Time: For analytical purposes, the time required to produce a product or service is estimated using several techniques. One method is to identify tasks needed to produce the deliverables documented in a work breakdown structure or WBS. The work effort for each task is estimated and those estimates are rolled up into the final deliverable estimate. The tasks are also prioritized, dependencies between tasks are identified, and this information is documented in a project schedule. The dependencies between the tasks can affect the length of the overall project (dependency constraint), as can the availability of resources (resource constraint). Time is not considered a cost nor a resource since the project manager cannot7 control the rate at which it is expended. This makes it different from all other resources and cost categories. 1.3.2 Cost: Cost to develop a project depends on several variables including : labor rates, material rates, risk management, plant (buildings, machines, etc.), equipment, and profit. When hiring an independent consultant for a project, cost will typically be determined by the consultant's or firm's per diem rate multiplied by an estimated quantity for completion. Figure 1.1 : The Project management Triangle 1.3.3 Scope: Scope is requirement specified for the end result. The overall definition of what the project is supposed to accomplish, and a specific description of what the end result should be or accomplish can be said to be the scope of the project. A major component of scope is the quality of the final product. The amount of time put into individual tasks determines the overall quality of the project. Some tasks may require a given amount of time to complete adequately, but given more time could be completed exceptionally. Over the course of a large project, quality can have a significant impact on time and cost or vice versa. Together, these three constraints viz. Scope, Schedule & Resources have given rise to the phrase "On Time, On Spec, On Budget". In this case, the term "scope" is substituted with "spec(ification)"8 1.4 WHAT IS PROJECT MANAGEMENT Project management is “the application of knowledge, skills, tools and techniques to project activities to meet the project requirements.” The effectiveness of project management is critical in assuring the success of any substantial activity. Areas of responsibility for the person handling the project include planning, control and implementation. A project should be initiated with a feasibility study, where a clear definition of the goals and ultimate benefits need to be determined. Senior managers' support for projects is important so as to ensure authority and direction throughout the project's progress and, also to ensure that the goals of the organization are effectively achieved in this process. Knowledge, skills, goals and personalities are the factors that need to be considered within project management. The project manager and his/her team should collectively possess the necessary and requisite interpersonal and technical skills to facilitate control over the various activities within the project. The stages of implementation must be articulated at the project planning phase. Disaggregating the stages at its early point assists in the successful development of the project by providing a number of milestones that need to be accomplished for completion. In addition to planning, the control of the evolving project is also a prerequisite for its success. Control requires adequate monitoring and feedback mechanisms by which senior management and project managers can compare progress against initial projections at each stage of the project. Monitoring and feedback also enables the project manager to anticipate problems and therefore take pre- emptive and corrective measures for the benefit of the project. Projects normally involve the introduction of a new system of some kind and, in almost all cases, new methods and ways of doing things. This impacts the work of others: the "users". User interaction is an important factor in the success of projects and, indeed, the degree of user involvement can influence the extent of support for the project or its implementation plan. A project manager is the one who is responsible for establishing a communication in between the project team and the user. Thus one of the most essential quality of the project manager is that of being a good communicator, not just within the project team itself, but with the rest of the organization and outside world as well. 1.4.1 Features of projects:9  Projects are often carried out by a team of people who have been assembled for that specific purpose. The activities of this team may be co-ordinated by a project manager.  Project teams may consist of people from different backgrounds and different parts of the organisation. In some cases project teams may consist of people from different organisations.  Project teams may be inter-disciplinary groups and are likely to lie outside the normal organisation hierarchies.  The project team will be responsible for delivery of the project end product to some sponsor within or outside the organisation. The full benefit of any project will not become available until the project as been completed. 1.4.2 Project Classification: In recent years more and more activities have been tackled on a project basis. Project teams and a project management approach have become common in most organisations. The basic approaches to project management remain the same regardless of the type of project being considered. You may find it useful to consider projects in relation to a number of major classifications: a) Engineering and construction The projects are concerned with producing a clear physical output, such as roads, bridges or buildings. The requirements of a project team are well defined in terms of skills and background, as are the main procedures that have to be undergone. Most of the problems which may confront the project team are likely to have occurred before and therefore their solution may be based upon past experiences. b) Introduction of new systems These projects would include computerisation projects and the introduction of new systems and procedures including financial systems. The nature and constitution of a project team may vary with the subject of the project, as different skills may be required and different end-users may be involved. Major projects involving a systems analysis approach may incorporate clearly defined procedures within an organisation. c) Responding to deadlines and change An example of responding to a deadline is the preparation of an annual report by a specified date. An increasing number of projects are concerned with designing organisational or environmental changes, involving developing new products and services.10 1.4.3 Project Management Tools and techniques: Project planning is at the heart of project management. One can't manage and control project activities if there is no plan. Without a plan, it is impossible to know if the correct activities are underway, if the available resources are adequate or of the project can be completed within the desired time. The plan becomes the roadmap that the project team members use to guide them through the project activities. Project management tools and techniques assist project managers and their teams in carrying out work in all nine knowledge areas. For example, some popular time- management tools and techniques include Gantt charts, project network diagrams, and critical path analysis. Table 1.1 lists some commonly used tools and techniques by knowledge area. Knowledge Area Tools & Techniques Integration Project selection methods, project management management methodologies, stakeholder analyses, project charters, project management plans, project management software, change requests, change control boards, project review meetings, lessons-learned reports Scope management Scope statements, work breakdown structures, mind maps, statements of work, requirements analyses, scope management plans, scope verification techniques, and scope change controls Cost Management Net present value, return on investment, payback analyses, earned value management, project portfolio management, cost estimates, cost management plans, cost baselines Time management Gantt charts, project network diagrams, critical-path analyses, crashing, fast tracking, schedule performance measurements Human resource Motivation techniques, empathic listening, management responsibility assignment matrices, project organizational charts, resource histograms, team building exercises11 Quality management Quality metrics, checklists, quality control charts, Pareto diagrams, fishbone diagrams, maturity models, statistical methods Risk management Risk management plans, risk registers, probability/impact matrices, risk rankings Communication Communications management plans, management kickoff meetings, conflict management, communications media selection, status and progress reports, virtual communications, templates, project Web sites Procurement Make-or-buy analyses, contracts, management requests for proposals or quotes, source selections, supplier evaluation matrices Table 1.1 : Project Management Tools and Techniques 1.4.4 Project Success Factors: The successful design, development, and implementation of information technology (IT) projects is a very difficult and complex process. However, although developing IT projects can be difficult, the reality is that a relatively small number of factors control the success or failure of every IT project, regardless of its size or complexity. The problem is not that the factors are unknown; it is that they seldom form an integral part of the IT development process. Some of the factors that influence projects and may help them succeed are - Executive Support - User involvement - Experienced project managers - Limited scope - Clear basic requirements - Formal methodology - Reliable estimates 1.5 THE ROLE OF PROJECT MANAGER The project manager is the driving force in the management control loop. This individual seldom participates directly in the activities that produce the end result, but rather strives to maintain the progress and productive mutual interaction of various parties in such a way that overall risk of failure is reduced.12 A project manager is often a client representative and has to determine and implement the exact needs of the client, based on knowledge of the firm he/she is representing. The ability to adapt to the various internal procedures of the contracting party, and to form close links with the nominated representatives, is essential in ensuring that the key issues of cost, time, quality, and above all, client satisfaction, can be realized. In whatever field, a successful project manager must be able to envisage the entire project from start to finish and to have the ability to ensure that this vision is realized. When they are appointed, project managers should be given terms of reference that define their:  Objectives;  Responsibilities;  Limits of authority. 1.5.1 Responsibilities of a Project Manager: The objective of every project manager is to deliver the product on time, within budget and with the required quality. Although the precise responsibilities of a project manager will vary from company to company and from project to project, they should always include planning and forecasting. Three additional areas of management responsibility are:  ·interpersonal responsibilities, which include: - leading the project team; - liaising with initiators, senior management and suppliers; - being the 'figurehead', i.e. setting the example to the project team and representing the project on formal occasions.  informational responsibilities, which include: - monitoring the performance of staff and the implementation of the project plan; - disseminating information about tasks to the project team; - disseminating information about project status to initiators and senior management; - acting as the spokesman for the project team.  decisional responsibilities, which include: - allocating resources according to the project plan, and adjusting those allocations when circumstances dictate (i.e. the project manager has responsibility for the budget); - negotiating with the initiator about the optimum interpretation of contractual obligations, with the13 company management for resources, and with project staff about their tasks; - handling disturbances to the smooth progress of the project such as equipment failures and personnel problems. 1.6 PROJECT LIFE CYCLE The Project Life Cycle refers to a logical sequence of activities to accomplish the project’s goals or objectives. Regardless of scope or complexity, any project goes through a series of stages during its life. There is first an Initiation or Starting phase, in which the outputs and critical success factors are defined, followed by a Planning phase, characterized by breaking down the project into smaller parts/tasks, an Execution phase, in which the project plan is executed, and lastly a Closure or Exit phase, that marks the completion of the project. Project activities must be grouped into phases because by doing so, the project manager and the core team can efficiently plan and organize resources for each activity, and also objectively measure achievement of goals and justify their decisions to move ahead, correct, or terminate. It is of great importance to organize project phases into industry-specific project cycles. Why? Not only because each industry sector involves specific requirements, tasks, and procedures when it comes to projects, but also because different industry sectors have different needs for life cycle management methodology. And paying close attention to such details is the difference between doing things well and excelling as project managers. Diverse project management tools and methodologies prevail in the different project cycle phases. Let’s take a closer look at what’s important in each one of these stages: 1.6.1 Project Initiation: The initiation stage determines the nature and scope of the development. If this stage is not performed well, it is unlikely that the project will be successful in meeting the business’s needs. The key project controls needed here are an understanding of the business environment and making sure that all necessary controls are incorporated into the project. Any deficiencies should be reported and a recommendation should be made to fix them. The initiation stage should include a plan that encompasses the following areas:  Analyzing the business needs/requirements in measurable goals.  Reviewing of the current operations.14  Conceptual design of the operation of the final product.  Equipment and contracting requirements including an assessment of long lead time items.  Financial analysis of the costs and benefits including a budget.  Stakeholder analysis, including users, and support personnel for the project.  Project charter including costs, tasks, deliverables, and schedule. Figure 1.5 : Project Life Cycle 1.6.2 Planning & Design: After the initiation stage, the system is designed. Occasionally, a small prototype of the final product is built and tested. Testing is generally performed by a combination of testers and end users, and can occur after the prototype is built or concurrently. Controls should be in place that ensures that the final product will meet the specifications of the project charter. The results of the design stage should include a product design that: - Satisfies the project sponsor (the person who is providing the project budget), end user, and business requirements. - Functions as it was intended.15 - Can be produced within acceptable quality standards. - Can be produced within time and budget constraints. 1.6.3 Execution & Controlling: Monitoring and Controlling consists of those processes performed to observe project execution so that potential problems can be identified in a timely manner and corrective action can be taken, when necessary, to control the execution of the project. The key benefit is that project performance is observed and measured regularly to identify variances from the project management plan. Monitoring and Controlling includes:  Measuring the ongoing project activities (where we are);  Monitoring the project variables (cost, effort, scope, etc.) against the project management plan and the project performance baseline (where we should be);  Identify corrective actions to address issues and risks properly (How can we get on track again);  Influencing the factors that could circumvent integrated change control so only approved changes are implemented In multi-phase projects, the Monitoring and Controlling process also provides feedback between project phases, in order to implement corrective or preventive actions to bring the project into compliance with the project management plan. Project Maintenance is an ongoing process, and it includes:  Continuing support of end users  Correction of errors  Updates of the software over time In this stage, auditors should pay attention to how effectively and quickly user problems are resolved. Over the course of any IT project, the work scope may change. Change is normal and expected part of the process. Changes can be the result of necessary design modifications, differing site conditions, material availability, client-requested changes, value engineering and impacts from third parties, to name a few. Beyond executing the change in the field, the change normally needs to be documented to show what was actually developed. This is referred to as Change Management. Hence, the owner usually requires a final record to show all changes or, more specifically, any change that modifies the tangible portions of the16 finished work. The record is made on the contract documents – usually, but not necessarily limited to, the design drawings. The end product of this effort is what the industry terms as-built drawings, or more simply, “as built.” When changes are introduced to the project, the viability of the project has to be re-assessed. It is important not to lose sight of the initial goals and targets of the projects. When the changes accumulate, the forecasted result may not justify the original proposed investment in the project. 1.6.4 Closure: Closing includes the formal acceptance of the project and the ending thereof. Administrative activities include the archiving of the files and documenting lessons learned. This phase consists of:  Project close: Finalize all activities across all of the process groups to formally close the project or a project phase.  Contract closure: Complete and settle each contract (including the resolution of any open items) and close each contract applicable to the project or project phase. Sample Questions 1. Why is there a new or renewed interest in the field of project management? 2. What is a project, and what are its main attributes? How is a project different from what most people do in their day-to-day jobs? What is the triple constraint? 3. What is project management? Briefly describe the project management framework, providing examples of stakeholders, knowledge areas, tools and techniques, and project success factors. 4. Discuss the relationship between project, program, and portfolio Management and their contribution to enterprise success. 5. What are the roles of the project, program, and portfolio managers? What are suggested skills for project managers? What additional skills do program and portfolio managers need?17    2 TECHNOLOGY CONTEXT Unit Structure: 2.1 A systems view of project management. 2.1.1 The Three Sphere model for Systems management 2.1.2 A Case 2.2 Understanding Organisations 2.2.1 The key roles 2.2.1.1 Top management 2.2.1.2 The Project Board 2.2.1.3 Project Manager 2.3 Stakeholder Management 2.3.1 Stakeholder Agreements 2.4 The Context of Information Technology Projects 2.4.1. Software Projects 2.4.2 Software Development Process 2.4.3 Requirements Engineering 2.1 A SYSTEMS VIEW OF PROJECT MANAGEMENT There are many aspects of project management that are important and worthy of comment. There are so many details that must be handled in order for a project to be successful. To be able to handle the day to day details while still keeping your eye of the strategic whole is a demanding task but one that can be learned and improved. As the project is a temporary, one-time endeavor undertaken to solve a problem or take advantage of an opportunity, It usually has a customer or customers (either internal or external to the18 organization that are doing the project), a budget or a set of scarce resources that must be managed and some kind of timeframe/constraint for completion or operation. Before one can undertake a project to solve a problem one must first understand the problem. Not only understand the details of the problem but also understand who has the problem and the context and environment that must be taken into consideration in addressing the problem. A key practice in getting things clear is to look at the problem from the customers and users perspectives. - What is important to the customer? - How will the user actually be using the system. - What does the world look like from their perspective? - What do they value and what is the solution worth? - Engineers tend to focus on features while customers are interested in benefits; how will this help them solve their problems. One way to get this perspective is to spend time with the customers and users and enter into a dialog with them. If project managers run projects in isolation, these projects will never serve the needs of the organisation for which it is undertaken. Project managers thus should consider projects within the greater organizational context and take a holistic view of a project. Systems thinking describes this holistic view of carrying out projects. A systems approach is an overall model for thinking about things as systems. Systems are sets of interacting components working within an environment to fulfill some purpose. System 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, its opportunities constraints and needs. Once this is completed, the systems analyst then examines alternative solutions for improving the current situation, identifies an optimum, or at least satisfactory, solution or action plan, and examines that plan against the entire system. Systems management addresses the business, technological, and organizational issues associated with creating, maintaining, and making a change to a system. Using a systems approach is critical to successful project management. Top management and project managers must follow19 a systems philosophy to understand how projects relate to the whole organisation. 2.1.1 The Three Sphere model for Systems management: The three-sphere model of systems management deals with the business, organizational and technological aspects and/or issues related to the project that should be defined and considered in order to select and manage projects effectively and successfully. In terms of addressing its advantage on the business side, a project should supplement or serve as an answer to the business goals; whereas, the technological sphere should state the proper hardware and software issues to be resolved. As for the organizational aspect, matters involving the stakeholders should be taken into full consideration. If the project manager would be able to point out as early as possible the aforementioned issues and integrate it to the project it would definitely aid in determining if an organization should invest and produce the project. Figure 2.1 : Three Sphere model for systems management20 2.1.2 A Case: A programmer was given a task to convert a static website of a magazine into a dynamic PHP website; what prompts the management to engage into this project is the fact that the web has become more sophisticated and that there has been a major shift of “print” audience to the internet. You’ll find below the business, organizational and technological issues of the said project. Business issues: 1. Would the website be the medium in response to the impact of the internet in a publishing company? 2. Would the website supplement the magazine in terms of advertising? 3. What will the project cost the company? 4. What would be the impact of the website to the sales of the magazine? 5. What would be the cost of maintaining the whole system for the website? Technological issues: 1. What operating system, server platform, scripting language and database should be used? 2. What will be the server and desktop specifications? 3. Does our current network setup allow employees to develop this project, or do we need an upgrade? 4. Do we have the right internet connection to support this project? Organizational issues: 1. Do we have the existing manpower to develop the project? 2. What would be the impact of the website to the magazine’s print division? 3. How will the website affect our print audience? The most important issues are from the business and organization spheres, since these two primarily follows the business philosophy – it would definitely be pointless if a project fails to meet the endeavors either on the business or organizational21 side – it’s doomed to fail if that is the case. Among the three, I guess the technological issues are the easiest to resolve. 2.2 UNDERSTANDING ORGANISATIONS Every project must have its own management structure define d at the start and dismantled at the end. The definition of the management roles, responsibilities, relationships and accountabilities and authorities provides the basis of the governance arrangements for the project. Note that it is unlikely that an existing line management structure will be sufficient or appropriate to use as a project management organisation, except perhaps where a small task is being run within a single business unit with no external impact. A typical organisation structure is depicted in the figure below Top Management Project Board & other functionaries Project manager Project team Figure 2.2 Organizational Structure A well-designed organisation will involve the right people with the right skills and the right levels of authority so that, once approved, the project may proceed with minimal requirements to refer outside the project organisation other than to deal with

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