Chapter 11: Project Risk Management
~ Learning Objectives:~
Understand what risk is and the importance of good project risk management
Discuss the elements involved in risk management planning and the contents of a risk management plan
List common sources of risks in information technology projects
~ The Importance of Project Risk Management ~
• Project risk management is the art and science of identifying, analyzing, and responding to risk throughout the life of a project and in the best interests of meeting project objectives
• Risk management is often overlooked in projects, but it can help improve project success by helping select good projects, determining project scope, and developing realistic estimates
~ Risk Utility ~
Risk utility or risk tolerance is the amount of satisfaction or pleasure received from a potential payoff
Utility rises at a decreasing rate for people who are risk-averse
Those who are risk-seeking have a higher tolerance for risk and their satisfaction increases when more payoff is at stake
The risk-neutral approach achieves a balance between risk and payoff
Project Risk Management Processes
Risk management planning: deciding how to approach and plan the risk management activities for the project
Risk identification: determining which risks are likely to affect a project and documenting the characteristics of each
Qualitative risk analysis: prioritizing risks based on their probability and impact of occurrence
Quantitative risk analysis: numerically estimating the effects of risks on project objectives
Risk response planning: taking steps to enhance opportunities and reduce threats to meeting project objectives
Risk monitoring and control: monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the project
Risk Management Planning
The main output of risk management planning is a risk management plan—a plan that documents the procedures for managing risk throughout a project
The project team should review project documents and understand the organization’s and the sponsor’s approaches to risk
The level of detail will vary with the needs of the project
Contingency and Fallback Plans, Contingency Reserves
Contingency plans are predefined actions that the project team will take if an identified risk event occurs
Fallback plans are developed for risks that have a high impact on meeting project objectives, and are put into effect if attempts to reduce the risk are not effective
Contingency reserves or allowances are provisions held by the project sponsor or organization to reduce the risk of cost or schedule overruns to an acceptable level
Risk Breakdown Structure
A risk breakdown structure is a hierarchy of potential risk categories for a project
Similar to a work breakdown structure but used to identify and categorize risks
Risk Identification
Risk identification is the process of understanding what potential events might hurt or enhance a particular project
Risk identification tools and techniques include:
Brainstorming
The Delphi Technique
Interviewing
SWOT analysis
Brainstorming is a technique by which a group attempts to generate ideas or find a solution for a specific problem by amassing ideas spontaneously and without judgment
The Delphi Technique is used to derive a consensus among a panel of experts who make predictions about future developments
Interviewing is a fact-finding technique for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions
SWOT analysis (strengths, weaknesses, opportunities, and threats) can also be used during risk identification and helps identify the broad negative and positive risks that apply to a project
Risk Register
A risk register is: A document that contains the results of various risk management processes and that is often displayed in a table or spreadsheet format and a tool for documenting potential risk events and related information
Risk events refer to specific, uncertain events that may occur to the detriment or enhancement of the project
Probability/Impact Matrix
A probability/impact matrix or chart lists the relative probability of a risk occurring on one side of a matrix or axis on a chart and the relative impact of the risk occurring on the other
List the risks and then label each one as high, medium, or low in terms of its probability of occurrence and its impact if it did occur
Can also calculate risk factors
Decision Trees and Expected Monetary Value (EMV)
A decision tree is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain
Estimated monetary value (EMV) is the product of a risk event probability and the risk event’s monetary value
What Went Right?
A large aerospace company used Monte Carlo simulation to help quantify risks on several advanced-design engineering projects, such as the National Aerospace Plan (NASP)
The results of the simulation were used to determine how the company would invest its internal research and development funds
Although the NASP project was terminated, the resulting research has helped develop more advanced materials and propulsion systems used on many modern aircraft
Sensitivity Analysis
Sensitivity analysis is a technique used to show the effects of changing one or more variables on an outcome
For example, many people use it to determine what the monthly payments for a loan will be given different interest rates or periods of the loan, or for determining break-even points based on different assumptions
Spreadsheet software, such as Excel, is a common tool for performing sensitivity analysis
Risk Response Planning
After identifying and quantifying risks, you must decide how to respond to them
Four main response strategies for negative risks:
Risk avoidance
Risk acceptance
Risk transference
Risk mitigation
Response Strategies for Positive Risks
Risk exploitation
Risk sharing
Risk enhancement
Risk acceptance
Residual and Secondary Risks
It’s also important to identify residual and secondary risks
Residual risks are risks that remain after all of the response strategies have been implemented
Secondary risks are a direct result of implementing a risk response Media Snapshot
A highly publicized example of a risk response to corporate financial scandals, such as those affecting Enron, Arthur Andersen, and WorldCom, was legal action
The Sarbanes-Oxley Act is considered the most significant change to federal securities laws in the United States since the New Deal
This Act has caused many organizations to initiate projects and other actions to avoid litigation
Risk Monitoring and Control
Involves executing the risk management process to respond to risk events
Workarounds are unplanned responses to risk events that must be done when there are no contingency plans
Main outputs of risk monitoring and control are: Requested changes, Recommended corrective and preventive actions and Updates to the risk register, project management plan, and organizational process assets
Results of Good Project Risk Management
Unlike crisis management, good project risk management often goes unnoticed
Well-run projects appear to be almost effortless, but a lot of work goes into running a project well
Project managers should strive to make their jobs look easy to reflect the results of well-run projects
Chapter12: Project Procurement Management
Learning Objectives
Understand the importance of project procurement management and the increasing use of outsourcing for information technology projects
Describe the work involved in planning purchases and acquisitions for projects, the contents of a procurement management plan and contract statement of work, and calculations involved in a make-or-buy analysis
Discuss what is involved in planning contracting, including the creation of various procurement documents and evaluation criteria for sellers
Importance of Project Procurement Management
Procurement means acquiring goods and/or services from an outside source
Experts predict that global spending on computer software and services will continue to grow
People continue to debate whether offshore outsourcing helps their own country or not
Contracts
A contract is a mutually binding agreement that obligates the seller to provide the specified products or services and obligates the buyer to pay for them
Contracts can clarify responsibilities and sharpen focus on key deliverables of a project
Because contracts are legally binding, there is more accountability for delivering the work as stated in the contract
Project Procurement Management Processes
Project procurement management: acquiring goods and services for a project from outside the performing organization
Processes include:
Planning purchases and acquisitions: determining what to procure, when, and how
Planning contracting: describing requirements for the products or services desired from the procurement and identifying potential sources or sellers (contractors, suppliers, or providers who provide goods and services to other organizations)
Requesting seller responses: obtaining information, quotes, bids, offers, or proposals from sellers, as appropriate
Selecting sellers: choosing from among potential suppliers through a process of evaluating potential sellers and negotiating the contract
Administering the contract: managing the relationship with the selected seller
Closing the contract: completing and settling each contract, including resolving any open items
Types of Contracts
Different types of contracts can be used in different situations
Fixed price or lump sum contracts: involve a fixed total price for a well-defined product or service
Cost reimbursable contracts: involve payment to the seller for direct and indirect costs
Time and material contracts: hybrid of both fixed price and cost reimbursable contracts, often used by consultants
Unit price contracts: require the buyer to pay the seller a predetermined amount per unit of service
A single contract can actually include all four of these categories, if it makes sense for that particular procurement
Procurement Management Plan
Describes how the procurement processes will be managed, from developing documentation for making outside purchases or acquisitions to contract closure
Content varies based on project needs
Contract Statement of Work (SOW)
A statement of work is a description of the work required for the procurement
If a SOW is used as part of a contract to describe only the work required for that particular contract, it is called a contract statement of work
A SOW is a type of scope statement
A good SOW gives bidders a better understanding of the buyer’s expectations
Planning Contracting
Involves preparing several documents needed for potential sellers to prepare their responses and determining the evaluation criteria for the contract award
Request for Proposals: used to solicit proposals from prospective sellers
A proposal is a document prepared by a seller when there are different approaches for meeting buyer needs
Requests for Quotes: used to solicit quotes or bids from prospective suppliers
A bid, also called a tender or quote (short for quotation), is a document prepared by sellers providing pricing for standard items that have been clearly defined by the buyer
Selecting Sellers and also called source selection
Involves: Evaluating proposals or bids from sellers, Choosing the best one, Negotiating the contract, Awarding the contract
Administering the Contract
Ensures that the seller’s performance meets contractual requirements
Contracts are legal relationships, so it is important that legal and contracting professionals be involved in writing and administering contracts
It is critical that project managers and team members watch for constructive change orders, which are oral or written acts or omissions by someone with actual or apparent authority that can be construed to have the same effect as a written change order
Suggestions for Change Control in Contracts
Changes to any part of the project need to be reviewed, approved, and documented by the same people in the same way that the original part of the plan was approved
Evaluation of any change should include an impact analysis; how will the change affect the scope, time, cost, and quality of the goods or services being provided?
Changes must be documented in writing; project team members should also document all important meetings and telephone phone calls
Tools to Assist in Contract Closure
Procurement audits identify lessons learned in the procurement process
A records management system provides the ability to easily organize, find, and archive procurement-related documents
Friday, October 23, 2009
chapter 11&12
Labels: Project Management in IT
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chapter 9&10
Chapter 9: Project Human Resource Management
Learning Objectives
Explain the importance of good human resource management on projects, including the current state and future implications of the global IT workforce
Define project human resource management and understand its processes
Summarize key concepts for managing people by understanding the theories of Abraham Maslow, Frederick Herzberg, David McClelland, and Douglas McGregor on motivation, H. J. Thamhain and D. L. Wilemon on influencing workers, and Stephen
The Importance of Human Resource Management
Many corporate executives have said, “People are our most important asset”
People determine the success and failure of organizations and projects
What is Project Human Resource Management?
Making the most effective use of the people involved with a project
Processes include:
Human resource planning: identifying and documenting project roles, responsibilities, and reporting relationships
Acquiring the project team: getting the needed personnel assigned to and working on the project
Developing the project team: building individual and group skills to enhance project performance
Managing the project team: tracking team member performance, motivating team members, providing timely feedback, resolving issues and conflicts, and coordinating changes to help enhance project performance
Intrinsic and Extrinsic Motivation
Intrinsic motivation causes people to participate in an activity for their own enjoyment
Extrinsic motivation causes people to do something for a reward or to avoid a penalty
For example, some children take piano lessons for intrinsic motivation (they enjoy it) while others take them for extrinsic motivation (to get a reward or avoid punishment)
Motivational factors: achievement, recognition, the work itself, responsibility, advancement, and growth, which produce job satisfaction
Hygiene factors: cause dissatisfaction if not present, but do not motivate workers to do more; examples include larger salaries, more supervision, and a more attractive work environment
Ways to Influence that Help and Hurt Projects
Projects are more likely to succeed when project managers exert influence with:
Expertise, and Work challenge
Projects are more likely to fail when project managers rely too heavily on:
Authority, Money and Penalty
Power
Power is the potential ability to influence behavior to get people to do things they would not otherwise do
Types of power include: Coercive, Legitimate, Expert, Reward and Referent
Human Resource Planning
Involves identifying and documenting project roles, responsibilities, and reporting relationships
Outputs include:
Project organizational charts, Staffing management plan, Responsibility assignment matrixes and Resource histograms
Responsibility Assignment Matrices
A responsibility assignment matrix (RAM) is a matrix that maps the work of the project as described in the WBS to the people responsible for performing the work as described in the OBS
Can be created in different ways to meet unique project needs
Staffing Management Plans and Resource Histograms
A staffing management plan describes when and how people will be added to and taken off the project team
A resource histogram is a column chart that shows the number of resources assigned to a project over time
Acquiring the Project Team
Acquiring qualified people for teams is crucial
The project manager who is the smartest person on the team has done a poor job of recruiting!
It’s important to assign the appropriate type and number of people to work on projects at the appropriate times
Resource Loading
Resource loading refers to the amount of individual resources an existing schedule requires during specific time periods
Helps project managers develop a general understanding of the demands a project will make on the organization’s resources and individual people’s schedules
Overallocation means more resources than are available are assigned to perform work at a given time
Resource Leveling
Resource leveling is a technique for resolving resource conflicts by delaying tasks
The main purpose of resource leveling is to create a smoother distribution of resource usage and reduce overallocation
Benefits of Resource Leveling
When resources are used on a more constant basis, they require less management
It may enable project managers to use a just-in-time inventory type of policy for using subcontractors or other expensive resources
It results in fewer problems for project personnel and accounting department
It often improves morale
Developing the Project Team
The main goal of team development is to help people work together more effectively to improve project performance
It takes teamwork to successfully complete most projects Tuckman Model of Team Development
Forming
Storming
Norming
Performing
Adjourning
Training
Training can help people understand themselves, each other, and how to work better in teams
Team building activities include:
Physical challenges
Psychological preference indicator tools
Social Styles Profile
People are perceived as behaving primarily in one of four zones, based on their assertiveness and responsiveness:
Drivers
Expressives
Analyticals
Amiables
People on opposite corners (drivers and amiables, analyticals and expressives) may have difficulties getting along
Reward and Recognition Systems
Team-based reward and recognition systems can promote teamwork
Focus on rewarding teams for achieving specific goals
Allow time for team members to mentor and help each other to meet project goals and develop human resources
Managing the Project Team
Project managers must lead their teams in performing various project activities
After assessing team performance and related information, the project manager must decide:
If changes should be requested to the project
If corrective or preventive actions should be recommended
If updates are needed to the project management plan or organizational process assets
Tools and Techniques for Managing Project Teams
Observation and conversation
Project performance appraisals
Conflict management
Issue logs
General Advice on Teams
Be patient and kind with your team
Fix the problem instead of blaming people
Establish regular, effective meetings
Allow time for teams to go through the basic team-building stages
Limit the size of work teams to three to seven members
Five Dysfunctions of a Team
Plan some social activities to help project team members and other stakeholders get to know each other better
Stress team identity
Nurture team members and encourage them to help each other
Take additional actions to work with virtual team members
Using Software to Assist in Human Resource Management
Software can help in producing RAMS and resource histograms
Project management software includes several features related to human resource management such as:
Assigning resources
Identifying potential resource shortages or underutilization
Leveling resources
Project Resource Management Involves Much More Than Using Software
Project managers must:
Treat people with consideration and respect
Understand what motivates them
Communicate carefully with them
Focus on your goal of enabling project team members to deliver their best work
Chapter 10: Project Communications Management
Learning Objectives
Understand the importance of good communications in projects
Explain the elements of project communications planning, including how to create a communications management plan and perform a stakeholder communications analysis
Describe various methods for distributing project information and the advantages and disadvantages of each, discuss the importance of addressing individual communication needs, and calculate the number of communications channels in a project
Project Communications Management Processes
Communications planning: determining the information and communications needs of the stakeholders
Information distribution: making needed information available to project stakeholders in a timely manner
Performance reporting: collecting and disseminating performance information, including status reports, progress measurement, and forecasting
Managing stakeholders: managing communications to satisfy the needs and expectations of project stakeholders and to resolve issues
Communications Planning
Every project should include some type of communications management plan, a document that guides project communications
Creating a stakeholder analysis for project communications also aids in communications planning
Communications Management
Plan Contents
Stakeholder communications requirements
Information to be communicated, including format, content, and level of detail
The people who will receive the information and who will produce it
Suggested methods or technologies for conveying the information
Information Distribution
Getting the right information to the right people at the right time and in a useful format is just as important as developing the information in the first place
Important considerations include:
Using technology to enhance information distribution
Formal and informal methods for distributing information
Understanding Group and Individual Communication Needs
People are not interchangeable parts
As illustrated in Brooks’ book The Mythical Man-Month, you cannot assume that a task originally scheduled to take two months of one person’s time can be done in one month by two people
Nine women cannot produce a baby in one month!
Personal Preferences Affect Communication Needs
Introverts like more private communications, while extroverts like to discuss things in public
Intuitive people like to understand the big picture, while sensing people need step-by-step details
Thinkers want to know the logic behind decisions, while feeling people want to know how something affects them personally
Judging people are driven to meet deadlines, while perceiving people need more help in developing and following plans
Other Communication Considerations
Rarely does the receiver interpret a message exactly as the sender intended
Geographic location and cultural background affect the complexity of project communications
Different working hours
Language barriers
Different cultural norms
Setting the Stage for Communicating Bad News
Determining the Number of Communications Channels
As the number of people involved increases, the complexity of communications increases because there are more communications channels or pathways through which people can communicate
Number of communications channels = n(n-1)
2
where n is the number of people involved
Performance Reporting
Performance reporting keeps stakeholders informed about how resources are being used to achieve project objectives
Status reports describe where the project stands at a specific point in time
Progress reports describe what the project team has accomplished during a certain period of time
Forecasts predict future project status and progress based on past information and trends
Managing Stakeholders
Project managers must understand and work with various stakeholders
Need to devise a way to identify and resolve issues
Two important tools include:
Expectations management matrix
Issue log
Suggestions for Improving Project Communications
Manage conflicts effectively
Develop better communication skills
Run effective meetings
Use e-mail and other technologies effectively
Use templates for project communications
Conflict Handling Modes
Confrontation: directly face a conflict using a problem-solving approach
Compromise: use a give-and-take approach
Smoothing: de-emphasize areas of difference and emphasize areas of agreement
Forcing: the win-lose approach
Withdrawal: retreat or withdraw from an actual or potential disagreement
Conflict Can Be Good
Conflict often produces important results, such as new ideas, better alternatives, and motivation to work harder and more collaboratively
Groupthink: conformance to the values or ethical standards of a group; groupthink can develop if there are no conflicting viewpoints
Research suggests that task-related conflict often improves team performance, but emotional conflict often depresses team performance
Developing Better Communication Skills
Companies and formal degree programs for IT professionals often neglect the importance of speaking, writing, and listening skills
As organizations become more global, they realize they must invest in ways to improve communication with people from different countries and cultures
It takes leadership to improve communication
Running Effective Meetings
Determine if a meeting can be avoided
Define the purpose and intended outcome of the meeting
Determine who should attend the meeting
Provide an agenda to participants before the meeting
Prepare handouts and visual aids, and make logistical arrangements ahead of time
Run the meeting professionally
Build relationships
Using E-Mail, Instant Messaging, and Collaborative Tools Effectively
Make sure that e-mail, instant messaging, or collaborative tools are an appropriate medium for what you want to communicate
Be sure to send information to the right people
Use meaningful subject lines and limit the content of emails to one main subject, and be as clear and concise as possible
Be sure to authorize the right people to share and edit your collaborative documents
Lessons Learned Reports
The project manager and project team members should each prepare a lessons-learned report
A reflective statement that documents important things an individual learned from working on the project
The project manager often combines information from all of the lessons-learned reports into a project summary report
Labels: Project Management in IT
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chapter 7&8
Chapter 7: Project Cost Management
Learning Objectives
Understand the importance of project cost management
Explain basic project cost management principles, concepts, and terms
Discuss different types of cost estimates and methods for preparing them
Understand the processes involved in cost budgeting and preparing a cost estimate, and budget for an information technology project
Understand the benefits of earned value management and project portfolio management to assist in cost control
What is Cost and Project Cost Management?
Cost is a resource sacrificed or foregone to achieve a specific objective or something given up in exchange
Costs are usually measured in monetary units like dollars
Project cost management includes the processes required to ensure that the project is completed within an approved budget
Project Cost Management Processes
Cost estimating: developing an approximation or estimate of the costs of the resources needed to complete a project
Cost budgeting: allocating the overall cost estimate to individual work items to establish a baseline for measuring performance
Cost control: controlling changes to the project budget
Basic Principles of Cost Management
Most members of an executive board better understand and are more interested in financial terms than IT terms, so IT project managers must speak their language
Profits are revenues minus expenditures
Profit margin is the ratio of revenues to profits
Life cycle costing considers the total cost of ownership, or development plus support costs, for a project
Cash flow analysis determines the estimated annual costs and benefits for a project and the resulting annual cash flow
Basic Principles of Cost Management
Tangible costs or benefits are those costs or benefits that an organization can easily measure in dollars
Intangible costs or benefits are costs or benefits that are difficult to measure in monetary terms
Direct costs are costs that can be directly related to producing the products and services of the project
Indirect costs are costs that are not directly related to the products or services of the project, but are indirectly related to performing the project
Sunk cost is money that has been spent in the past; when deciding what projects to invest in or continue, you should not include sunk costs
Learning curve theory states that when many items are produced repetitively, the unit cost of those items decreases in a regular pattern as more units are produced
Reserves are dollars included in a cost estimate to mitigate cost risk by allowing for future situations that are difficult to predict
Contingency reserves allow for future situations that may be partially planned for (sometimes called known unknowns) and are included in the project cost baseline
Management reserves allow for future situations that are unpredictable (sometimes called unknown unknowns)
Cost Estimating
Project managers must take cost estimates seriously if they want to complete projects within budget constraints
It’s important to know the types of cost estimates, how to prepare cost estimates, and typical problems associated with IT cost estimates
Table 7-2: Types of Cost Estimates
Cost Management Plan
A cost management plan is a document that describes how the organization will manage cost variance on the project
A large percentage of total project costs are often labor costs, so project managers must develop and track estimates for labor
Cost Estimation Tools and Techniques
Basic tools and techniques for cost estimates
Analogous or top-down estimates: use the actual cost of a previous, similar project as the basis for estimating the cost of the current project
Bottom-up estimates: involve estimating individual work items or activities and summing them to get a project total
Parametric modeling: uses project characteristics (parameters) in a mathematical model to estimate project costs
Typical Problems with IT Cost Estimates
Estimates are done too quickly
Lack of estimating experience
Human beings are biased toward underestimation
Management desires accuracy
Cost Budgeting
Cost budgeting involves allocating the project cost estimate to individual work items over time
The WBS is a required input to the cost budgeting process since it defines the work items
An important goal is to produce a cost baseline
A time-phased budget that project managers use to measure and monitor cost performance
Cost Control
Project cost control includes:
Monitoring cost performance
Ensuring that only appropriate project changes are included in a revised cost baseline
Informing project stakeholders of authorized changes to the project that will affect costs
Many organizations around the globe have problems with cost control
Earned Value Management (EVM)
EVM is a project performance measurement technique that integrates scope, time, and cost data
Given a baseline (original plan plus approved changes), you can determine how well the project is meeting its goals
More and more organizations around the world are using EVM to help control project costs
Earned Value Management Terms
The planned value (PV), formerly called the budgeted cost of work scheduled (BCWS), also called the budget, is that portion of the approved total cost estimate planned to be spent on an activity during a given period
Actual cost (AC), formerly called actual cost of work performed (ACWP), is the total of direct and indirect costs incurred in accomplishing work on an activity during a given period
The earned value (EV), formerly called the budgeted cost of work performed (BCWP), is an estimate of the value of the physical work actually completed
EV is based on the original planned costs for the project or activity and the rate at which the team is completing work on the project or activity to date
Rate of Performance
Rate of performance (RP) is the ratio of actual work completed to the percentage of work planned to have been completed at any given time during the life of the project or activity
Brenda Taylor, Senior Project Manager in South Africa, suggests this term and approach for estimating earned value
For example, suppose the server installation was halfway completed by the end of week 1; the rate of performance would be 50% because by the end of week 1, the planned schedule reflects that the task should be 100% complete and only 50% of that work has been completed
Rules of Thumb for Earned Value Numbers
Negative numbers for cost and schedule variance indicate problems in those areas
CPI and SPI less than 100% indicate problems
Problems mean the project is costing more than planned (over budget) or taking longer than planned (behind schedule)
The CPI can be used to calculate the estimate at completion (EAC)—an estimate of what it will cost to complete the project based on performance to date; the budget at completion (BAC) is the original total budget for the project
Project Portfolio Management
Many organizations collect and control an entire suite of projects or investments as one set of interrelated activities in a portfolio
Benefits of Portfolio Management
Schlumberger saved $3 million in one year by organizing 120 information technology projects into a portfolio
META Group research shows that:
Organizations that evaluate information technology projects by what their business impacts are and what their potential business values will be implement projects that result in 25 percent more improvement to the bottom line
Chapter 8: Project Quality Management
Learning Objectives
Understand the importance of project quality management for information technology products and services
Define project quality management and understand how quality relates to various aspects of information technology projects
Describe quality planning and its relationship to project scope management
Discuss the importance of quality assurance
Explain the main outputs of the quality control process
The Importance of Project Quality Management
Many people joke about the poor quality of IT products to accept systems being down occasionally or needing to reboot their PCs
But quality is very important in many IT projects
What Is Project Quality?
The International Organization for Standardization (ISO) defines quality as “the degree to which a set of inherent characteristics fulfills requirements” (ISO9000:2000)
Other experts define quality based on:
Conformance to requirements: the project’s processes and products meet written specifications
Fitness for use: a product can be used as it was intended
What Is Project Quality Management?
Project quality management ensures that the project will satisfy the needs for which it was undertaken
Processes include:
Quality planning: identifying which quality standards are relevant to the project and how to satisfy them
Quality assurance: periodically evaluating overall project performance to ensure the project will satisfy the relevant quality standards
Quality control: monitoring specific project results to ensure that they comply with the relevant quality standards
Quality Planning
Implies the ability to anticipate situations and prepare actions to bring about the desired outcome
Important to prevent defects by:
Selecting proper materials, Training and indoctrinating people in quality, and Planning a process that ensures the appropriate outcome
Design of Experiments
Design of experiments is a quality planning technique that helps identify which variables have the most influence on the overall outcome of a process
Also applies to project management issues, such as cost and schedule trade-offs
Involves documenting important factors that directly contribute to meeting customer requirements
Scope Aspects of IT Projects:
Functionality is the degree to which a system performs its intended function
Features are the system’s special characteristics that appeal to users
System outputs are the screens and reports the system generates
Performance addresses how well a product or service performs the customer’s intended use
Reliability is the ability of a product or service to perform as expected under normal conditions
Maintainability addresses the ease of performing maintenance on a product
Who’s Responsible for the Quality of Projects?
Project managers are ultimately responsible for quality management on their projects
Several organizations and references can help project managers and their teams understand quality
International Organization for Standardization (www.iso.org)
IEEE (www.ieee.org)
Quality Assurance
Quality assurance includes all the activities related to satisfying the relevant quality standards for a project
Another goal of quality assurance is continuous quality improvement
Benchmarking generates ideas for quality improvements by comparing specific project practices or product characteristics to those of other projects or products within or outside the performing organization
A quality audit is a structured review of specific quality management activities that help identify lessons learned that could improve performance on current or future projects
Quality Control
The main outputs of quality control are: Acceptance decisions, Rework and Process adjustments
Quality Control Charts
A control chart is a graphic display of data that illustrates the results of a process over time
The main use of control charts is to prevent defects, rather than to detect or reject them
Quality control charts allow you to determine whether a process is in control or out of control
When a process is in control, any variations in the results of the process are created by random events; processes that are in control do not need to be adjusted
The Seven Run Rule
You can use quality control charts and the seven run rule to look for patterns in data
The seven run rule states that if seven data points in a row are all below the mean, above the mean, or are all increasing or decreasing, then the process needs to be examined for nonrandom problems: Quality, Control Chart, Run Chart, Scatter Diagram, Histograms, Flowcharts and Pareto Charts.
A Pareto chart is a histogram that can help you identify and prioritize problem areas
Pareto analysis is also called the 80-20 rule, meaning that 80 percent of problems are often due to 20 percent of the causes
Statistical Sampling
Statistical sampling involves choosing part of a population of interest for inspection
The size of a sample depends on how representative you want the sample to be
Sample size formula: Sample size = .25 X (certainty factor/acceptable error)2
Be sure to consult with an expert when using statistical analysis
Six Sigma is “a comprehensive and flexible system for achieving, sustaining, and maximizing business success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving, and reinventing business processes.”*
Basic Information on Six Sigma:
The target for perfection is the achievement of no more than 3.4 defects per million opportunities
The principles can apply to a wide variety of processes
Six Sigma projects normally follow a five-phase improvement process called DMAIC
DMAIC
DMAIC is a systematic, closed-loop process for continued improvement that is scientific and fact based
DMAIC stands for:
Define: Define the problem/opportunity, process, and customer requirements
Measure: Define measures, then collect, compile, and display data
Analyze: Scrutinize process details to find improvement opportunities
Improve: Generate solutions and ideas for improving the problem
Control: Track and verify the stability of the improvements and the predictability of the solution
How Is Six Sigma Quality Control Unique?
It requires an organization-wide commitment and Training follows the “Belt” system
Six Sigma organizations have the ability and willingness to adopt contrary objectives, such as reducing errors and getting things done faster
It is an operating philosophy that is customer-focused and strives to drive out waste, raise levels of quality, and improve financial performance at breakthrough levels
Six Sigma Projects Use Project Management
The training for Six Sigma includes many project management concepts, tools, and techniques
For example, Six Sigma projects often use business cases, project charters, schedules, budgets, and so on
Six Sigma projects are done in teams; the project manager is often called the team leader, and the sponsor is called the champion
Six Sigma and Statistics
The term sigma means standard deviation
Standard deviation measures how much variation exists in a distribution of data
Standard deviation is a key factor in determining the acceptable number of defective units found in a population
Six Sigma projects strive for no more than 3.4 defects per million opportunities, yet this number is confusing to many statisticians
Six Sigma Uses a Conversion Table
Using a normal curve, if a process is at six sigma, there would be no more than two defective units per billion produced
Six Sigma uses a scoring system that accounts for time, an important factor in determining process variations
Yield represents the number of units handled correctly through the process steps
A defect is any instance where the product or service fails to meet customer requirements
Six 9s of Quality
Six 9s of quality is a measure of quality control equal to 1 fault in 1 million opportunities
In the telecommunications industry, it means 99.9999 percent service availability or 30 seconds of down time a year
This level of quality has also been stated as the target goal for the number of errors in a communications circuit, system failures, or errors in lines of code
Testing
Many IT professionals think of testing as a stage that comes near the end of IT product development
Testing should be done during almost every phase of the IT product development life cycle
Types of Tests
Unit testing tests each individual component (often a program) to ensure it is as defect-free as possible
Integration testing occurs between unit and system testing to test functionally grouped components
System testing tests the entire system as one entity
User acceptance testing is an independent test performed by end users prior to accepting the delivered system
ISO Standards
ISO 9000 is a quality system standard that:
Is a three-part, continuous cycle of planning, controlling, and documenting quality in an organization
Provides minimum requirements needed for an organization to meet its quality certification standards
Helps organizations around the world reduce costs and improve customer satisfaction
See www.iso.org for more information
The Cost of Quality
The cost of quality is the cost of conformance plus the cost of nonconformance
Conformance means delivering products that meet requirements and fitness for use
Cost of nonconformance means taking responsibility for failures or not meeting quality expectations
A 2002 study reported that software bugs cost the U.S. economy $59.6 billion each year and that one-third of the bugs could be eliminated by an improved testing infrastructure
Five Cost Categories Related to Quality
Prevention cost: cost of planning and executing a project so it is error-free or within an acceptable error range
Appraisal cost: cost of evaluating processes and their outputs to ensure quality
Internal failure cost: cost incurred to correct an identified defect before the customer receives the product
External failure cost: cost that relates to all errors not detected and corrected before delivery to the customer
Measurement and test equipment costs: capital cost of equipment used to perform prevention and appraisal activities
Maturity Models
Maturity models are frameworks for helping organizations improve their processes and systems
The Software Quality Function Deployment Model focuses on defining user requirements and planning software projects
The Software Engineering Institute’s Capability Maturity Model Integration is a process improvement approach that provides organizations with the essential elements of effective processes
Labels: Project Management in IT
Posted by ...('uyun)... at 7:08 AM 0 comments
Reflection on the course
What do you like best about the course?
This course is requirement for my minor in order for me to grade from this university. There are many benefits that I got from this course which are how to manage a project, meet new friends and others. Then, I think the most that I like about this course is in doing group project. It is because I learn how to start the project and what should my team I and do in that project. Even, there are several constraints like having difficult time to meet and discuss the project as well as to finish it, but we managed and succeed at the ends. I also like my team members because we can co-operate and assist to each in order until the end of the project.
What do you dislike most about the course?
Actually, I do not really sure what I dislike about the course, but maybe the course or the subtopic of this course because I need to understand and remember many term as well as the chapters.
What are your proposed suggestions to improve the course delivery and content?
I think in order to improve the course delivery and content, I will suggest that, do more several activities in class like what madam done a game before with us in class.
Then, I think madam may more ask question towards the students.
If you had more time, what do you wish you had done differently for the course?
I think, If I have more time, I wish to ask my lecture to show me the succeeds project which I can see and look.
Labels: Project Management in IT
Posted by ...('uyun)... at 7:06 AM 0 comments
Sunday, September 6, 2009
summary chapter 1-6
chapter 1-Introduction to Project Management
A project is a temporary endeavor undertaken to create a unique product, service, or result. A project can be small or large and take a short or long time to complete. Projects also require resources, stakeholders, and involved uncertainty which is risks. There are triple constraints that project management need to face which are scope, time and cost measurement of the project.
Then, another important part in this chapter is the involvement of project management. The project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Project manager and project management play a vital role and need to have in a project because they are engage in making decision, to observe the project and to make sure that the project is finish on time. Then, there are stakeholders who are the people involved in or affected by project activities for instance the project sponsor, the project manager, customer, and others. Furthermore, there are knowledge areas which is describe the key competencies that project mangers must develop. The nine project management knowledge areas are project integration management, human resources, communication, risk, procurement management, scope, cost, time and quality. Moreover, there are project management tools and techniques which are to assist project managers and their teams in various aspects of project management.
A program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. A program manager provides leadership and direction for the managers heading the projects within the program. Project portfolio management involves organizing and managing projects and programs as a portfolio of investment that contributes to entire enterprise’s success. Portfolio management emphasizes meeting strategic goals while project management focuses on tactical goals.
The successful projects and organizations are led by experiences project managers who can often help influence success factors. Therefore, they need to be well prepared in various jobs of duties and responsibilities, like planning, scheduling, coordinating and working with people to achieve project goals. They also need to have soft skills like leadership, listening etc and skills in project management, general management and their application such as information technology.
The profession of project management is growing and having potential to be widened in the future. Then, now there are also hundreds of different project management software products are born to assist performance of project management. Therefore, we know that project management is widely used and vital in each of projects that came out today.
Chapter 2- The Project Management and Information Technology Context
There are three sphere models for systems management which are business, technology and organizations. All these models are important in developing the system management and each of them are relating to each others which is based on the ‘WH’ question. Then, in the organizations have four different frames which are structural, human resources, political and symbolic. The structural frame focuses on roles and responsibilities which is to meet the objectives and goal of the project set by top management. The human resources frame stress on producing harmony between needs of the organization and the needs of people. After that, political frame addresses organizational and personal politics. Then the symbolic frame focuses on symbols and meaning.
There are an also organizational structure that is influences and affect projects which are functional, project and matrix. The organizational culture also contributed towards a project which is a set of shared assumptions, values and behaviors that characterize the functioning of organizations. A strong member identity, high risk tolerance, performance-based rewards and an open system focuses are some of characteristics organizational culture in a project that leads to the successful of a project.
In a project, there is a project stakeholder who is an individual or organization that actively involved whose interests may be positively or negatively affected because of project execution or successful project completion. Project managers need to identify and understand the different need of the stakeholders on their project.
Organizational standard is needed in a project in order to ensure the project succeeded. Then, a senior management or top management will assist and guides project manager be more effective and help them if they are to do a good job of project integration.
There are project phases that need to be followed in order to accomplish a project. Basically a project life cycle is a collection of project phases. Phases of a traditional project life cycle include concept, development, implementation and close-out. A project manager must understand and take in-charge in each phase of its products that they are providing on. It is because to ensure that the project manager knows what exactly happened in its works.
What is important of project phase and management review?
A project should successfully pass through each of the project phases in order to continue on to the next phase. Management reviews or phase exits or kill points, should occur after each phase to evaluate the project’s progress likely success, and continued compatibility with organizational goals.
Chapter 3 - The Project Management process Groups: A Case Study.
The five of project management process is initiating, planning, executing, monitoring and controlling, and closing. The project phase is inter-related with these processes. It is because everything that happens in the phase will reflect the management process groups. Basically, each of the process will produce different outcome and therefore project manager is important person to in-charge and lead the project. Moreover, during the executing process it will need more a time and resources followed by planning process.
Mapping is important in the activities of the process groups because it leads to the knowledge areas provides a big picture of what activities are involved in project management. For example, a case study which is involved in the five of project management process is JWD Consulting’s. This case study show that how a project is begin and end with appropriate methods in another word how it manages their own information technologies in order to meet their own particular needs. Furthermore, this case study also provides some templates or sample of outputs produced initiating, planning, executing, monitoring and controlling, and closing such as business card, project charter, team contract, Gantt chart and others.
Therefore, this group processes is important and play a vital roles in finishing a products of project. Everything is inter-related and when the beginning of a project having a problem or project manager cannot control the problem it will affect the rest of the project. In short, the project manager must know everything that will happens and what had happened in order to complete the project and get succeed.
Chapter 4- Project Integration Management
Project Integration Management involves coordinating all other project management knowledge areas throughout a project’s life cycle. This integration ensures that all the elements of a project come together at the right times to complete a project successfully. There are seven main processes that involved in a Project Integration Management which are:
• Develop the project charter
• Develop the preliminary project scope management
• Develop project management plan
• Direct and mange project execution
• Monitor and control the project work
• Perform integrated change controls
• Close the project
Chapter 5 – Project Scope Management
What is a project scope management?
On of the most important and most difficult aspect of project, management is defining the scope of a project. Scope refers to all the work involved in creating the products of the project and the process to create them. Project scope management includes the process involved in defining and controlling what is or is not included in a project and it ensures that project team and stakeholders have the same understanding towards the work required in order to complete the project successfully.
There are five main process involved in project scope management:
• Scope planning: it is first step where scope management plan is created.
This stage should include description of how the team will prepare detailed
scope statement, create WBS, verify completion of the project deliverables
and handle the requests for changes to the project scope.
• Scope definition: in this stage includes a preliminary scope statement which
is a project justification, project charter, a brief description of the
project’s product, a summary of all project deliverables, and a statement to
keep scope information up-to-date.
• Creating WBS: it is a deliverable-oriented grouping of the work involved in
a project that defines the total scope of the project. It is also a
foundation document that provides the basis for planning and managing
project schedules, costs, resources, and changes. There are several
approaches for developing a WBS, including using guidelines, the analogy
approach, the top-down approach, the bottom-up approach and mind mapping.
• Scope verification: It is involves formal acceptance of the scope by
the stakeholders.
• Scope control: It will control the changes towards the project scope.
Why projects fail?
One of the reasons is a weak and poor of the project scope management. For information technology projects, it is essential for good project scope management to have strong user involvement, a clear statement of requirements, and a process for managing scope changes. There are also methods that can assist the project scope management which is by using a software like word-processing, spreadsheets, communication software like e-mail, and software in creating WBS.
Chapter 6 – Project Time Management
Project Time Management is one of the biggest challenges that face by managers to cite delivering projects on time and main cause of conflict.
There six processes involved in project time management which are:
• Activity definition: it involves identifying the specific activities that
must be done to produce the project deliverables. Later, it will result in a
detailed WBS.
• Activity sequencing: it involves reviewing activities and determining
dependencies. Dependencies or relationship is the sequencing of project
activities. Dependencies must be determined in order to use critical path
analysis. There are three of dependencies which are mandatory dependencies,
discretionary, and external dependencies. Network diagrams are a schematic
display of logical relationship among, or sequencing of, project activities.
It is the preferred technique for showing activity sequencing. There are two
methods that used to create a diagram which are arrow diagram method (ADM)
and the precedence diagramming method. There are also four methods of
dependency: finish-to-start, finish-to-finish, start-to-start and start-
to-finish.
• Activity resources estimating: it involves determining the quantity and type
of resources like, tools, people and material that will be assigned to each
activity.
• Activity duration estimating: it creates estimates for the amount of time in
order to complete each activity. These time estimates include the actual
amount of time worked plus elapsed time.
• Schedule development:
In this stage it will be resulted from all of the other project time
management process to determine the start and end dates for the project.
Important tools and techniques include Gantt charts, critical path
analysis, critical chain scheduling, and PERT analysis.
Project manager usually use Gantt chart to display the project schedule.
The critical path method predicts total project duration. The critical path
for project is the series of activities that determines the earliest
completion date for the project. It is the longest path through a network
diagram. If any activity on the critical path is slips, it will affect the
whole projects unless the project manager takes corrective action.
Crashing and fast tracking are two techniques for shortening project
schedules. Critical chain scheduling is an application of the Theory of
Constrains, and buffers to help meet the project completion dates. The
Program Evaluation and Review Techniques (PERT) is a network analysis
techniques used to estimate project duration when there is a high degree of
uncertainty about the individual activity duration estimates.
• Schedule control: project managers must hold progress meetings with
stakeholders and be clear and honest in communicating schedules issues. It is
realistic to know the project schedule and use discipline to meet the schedule
goal. Then if there are any problem that occur, let the top management know
about it in order to handle and solve the problem.
Project management software can assist in project scheduling if used properly. By using it, it will avoid the need to perform cumbersome calculation manually and perform ‘what if’ analysis activity duration estimation or dependencies change. Many people misuse project management software because they do not understand the concepts in creating a network diagrams, determining critical path, and setting schedule baseline. Therefore, people must also avoid over-relying on sample files or templates when creating their unique project schedule.
Labels: Project Management in IT
Posted by ...('uyun)... at 8:07 PM 0 comments
takziah
al-fatihah..
takziah buat sahabatku, shai n kluarga...
~06092009...~
smlm dpt brite tentang kematian adik beliau..
alhamdulillah smlm juga dpt berziarah bersma2 shbtku yg lain d rumahnyer di kuala selangor..
sedih...x sgka..x terduga..
siap tahu..
ajal maut di tgn Allah yg Maha Esa..
smg rohnyer di tempatkan org2 yg beriman..
ameen..
Labels: sahabat
Posted by ...('uyun)... at 1:15 AM 0 comments
Wednesday, September 2, 2009
Three-Sphere Model
2) http://www.htcinc.com/admin/files/Gov-KJSBMalaysia-SPEKS.pdf
It is a website that has been succeeds in the IT project which is based on the web based application named SPEKS using oracle. The title of this project is Successful Global Delivery Model: Malaysian Government Project. Basically, this project is to computerize the financial accounting of Federal Government of Malaysia in order to maintain their leadership in e-Governance. There are some issued that can be addressed based on this project in terms of the three-sphere model which is:
Business
a) What will the project of web based application named SPEKS using oracle cost the
b) What will the impact be on enrollment?
Organization
a) Who will train the staffs?
b) Who will administer and support training?
Technology
a) What applications software will be loaded?
b) What will the hardware specifications be?
3) I think, everything is important because all of this three-sphere model were implement each other, so that the project will be succeeds. However, there is a question which is the most important for the project? I think it is the organization which has a project management. It is because every project begins with a top of management, a team member who has it owns specifications or skills. Therefore it needs to be building up first then, get understand to each other, so that it will come out with a best management. Thus, the project will achieve the objectives and be succeeds.
4) http://www.projectperfect.com.au/info_it_projects_fail.php
The best documented IT project failures are the ones involving public money. The most recent example is the Virtual Case File project for the United States Federal Bureau of Investigation (FBI).
The FBI had admitted the Virtual Case File Technology had failed to meet the bureau’s requirements and that; Five years of development and $US 170 million in cost had been lost (Friden, 2005).
The Virtual Case File had been delivered by Science Application International and it was aimed at facilitating case file management by integrating data from older system, including the Automated Case support system, and eventually replacing them (National Research Council, 2004).
The National Research Council (2004) saw no evidence that backup and contingency plans had been formalized. The transition plan did not include the availability of the Automated Case Support system after the cutover to the Virtual Case File (National Research Council, 2004).
Science Application International Corporation said it delivered the first phase of the project ahead of schedule and under budget, but the requirements for the software changed more than one time after the September 11, 2001 terrorist attacks on the USA (Gross, 2005). The office of the inspector general found that FBI was still defining the requirements after two years since the start of the project (Fine, Glenn, 2002). Science Application International Corporation also said that the communication with FBI was difficult because of the high turn over of top IT managers (Gross, 2005).
National Research Council (2004) also found that the requirements for the FBI mission were not included in the Virtual Case File design.
The example of Virtual Case File gives a high level overview of the difficulties to successful completion of complex IT projects. The example has shown that the difficulties are related more to the people than the technology itself (Tilmann and Weinberger, 2004), even though technology may increase complexity.
Why it failed? It is because the project team, the suppliers, the customers and other stakeholders can all provide a source of failure, but the most common reasons for project failure are rooted in the project management process itself and the aligning of IT with organizational cultures. Another reasons for project failure because of the poor planning, Objectives changing during the project, failure to communicate and act as a team, Unrealistic time or resource estimates and inappropriate skills.
5)
(1) Functional organizational structure
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgppKiwj-RmoUn8z8evS_1FuxAVKmTzKvQbRNMb1m5Edsg5wadCZsa04Af1P93U2RP95q8UkLw3ayiNkEcAX5VdSN0djSCikKO3PV9u2G_U0HcxrvO1dn61AOiKyZlPmYhKjPTGdAqeoyw/s320/smis.bmp)
6)
(a) Top management commitment is very importance in order to get the successful project management. Top-level managers, or top managers, are also called senior management or executives. These individuals are at the top one or two levels in an organization, and hold titles such as: Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operational Officer (COO), Chief Information Officer (CIO), and Chairperson of the Board, President, Vice president, and corporate head.
Frequently, a set of these managers will comprise the top management team, which is composed of the CEO, the COO, and other department heads. Then, top managers also make decisions which affecting the whole of the firm. Top managers do not direct the day-to-day activities of the firm; rather, they set goals for the organization and through the company to achieve them. Top managers are finally responsible for the performance of the organization, and often, these managers have very visible jobs.
Top managers in most organizations have a great deal of managerial experience and have moved up through the ranks of management within the company or in another firm. An exception to this is a top manager who is also an entrepreneur; such an individual may start a small company and manage it until it grows enough to support several levels of management. Some CEOs are hired in from other top management positions in other companies. On the other hand, they may be promoted from within and groomed for top management with management development activities, coaching, and mentoring. They may be tagged for promotion through succession planning, which identifies high potential managers.
Labels: Project Management in IT
Posted by ...('uyun)... at 12:49 AM 0 comments
Friday, July 17, 2009
about me
Asslamualaikum wrbt…
Hi…My name is Nurul Ayuni bt Mohamad Sukri. Usually people called me as Ayuni or Yuni, so everyone can call me with that name too. My matric no is 0619086… I was born on 1st April 1986 at Hospital Teluk Intan, Perak. I live at Sabak Bernam, Selangor Darul Ehsan. Then, I want to share with you all about my family… My Father’s work as P.R.A and my mother is a housewife. I have 2 siblings; I’m the eldest and I have one younger sisters. Just two of us only and of course, we are close to each other…
Now, I will story a little bit about my education background. My primary school was Sek Ren. Keb. Khir Johari and my secondary school was Sek.Agama Men. Muhammdiyyah batu 40, or nowadays well known as Sek.Agama Men. Muhammdiyyah Bt 1, Sabak Bernam. Now, I’m studying at International Islamic University
Why I took ICT? I think, 1st, I have interest towards IT and 2nd maybe I’m jealous with my best friend during my secondary school because she got study in IT courses after SPM. Then, when there is opportunity in IIU that I can to take this course, so I grab it. Basically, both are different field and different style of study which I mean here, in ICT I more exposed on technical things and a project of each course compared to my major courses. Sometimes, the project is like a challenge to me. Furthermore, at 1st I’m zero in IT but Alhamdulillah, now I have reached the small achievement and a lot of knowledge in this field. Why I said small achievement? It is because there is a lot that I need to learn more and what I know till now is a part of it only…
What my others interest or my hobby??? Hurm..I love to read novels and magazines like ‘majalah I, PC, etc. Sometimes I like to listen to radio, do a community services and ‘jalan-jalan’ with my bike with my friends. My others interest is my COMRADE’s club… Wanna to know about it..? maybe later u will know..
Wassalam..
Posted by ...('uyun)... at 7:46 AM 0 comments