BUS171 Chapter 3: Managing Systems Projects

Managing for Success

*Business Issues* - Every system is to provide a solution to a business problem or opportunity - If a system does not do this, it is a failure *Budget Issues* - Unrealistic estimates that are too optimistic or based on incomplete information - Failure to develop an accurate forecast that considers all costs over the life of the project - Poor monitoring of progress and slow response to early warning signs of problems - Schedule delays due to factors that were not foreseen - Human resource issues, including turnover, inadequate training, and motivation *Schedule Issues* - Problems with timetables and project milestones can indicate a failure to recognize task dependencies, confusion between effort and progress, poor monitoring and control methods, personality conflicts among team members, or turnover of project personnel - The failure of an IT project also can be caused by poor project management techniques

Risk Management

*Develop a Risk Management Plan* - Review of the project's scope, stakeholders, budget, schedule, and any other internal or external factors that might affect the project - Define project roles and responsibilities, risk management methods and procedures, categories of risks, and contingency plans *Steps in Risk Management* 1) Identify the Risks = List each risk and assesses the likelihood that it could affect the project 2) Analyze the Risks (Two Step Process) - Qualitative risk analysis evaluates each risk by estimating the probability that it will occur and the degree of impact - Quantitative risk analysis is to understand the actual impact in terms of dollars, time, project scope, or quality *Risk Management Software* Assigns specific dates as constraints Aligns task dependencies Notes external factors that might affect a task Tracks progress Displays tasks that are behind schedule Links risks with specific tasks and projects Specifies probability and impact Assigns ownership Tracks progress to manage projects more efficiently

Project Monitoring and Control

*Monitoring and Control Techniques* - structured walkthrough *Maintaining a Schedule* - most projects tune into some problems or delays (anticipate problems, avoid them, minimize their impact, identify potential solutions, select the best way to solve the problem)

Reporting

*Project Status Meetings* - Schedule regular meetings to update the team and discuss project status, issues, problems, and opportunities *Project Status Reports* - Reports can be verbal but are usually written - Gantt charts are often included to show project status graphically - Handling potential problems can be difficult

Project Management Planning and Scheduling

*Tasks: Granularity & Sequencing of Project Work* - organizing and structuring tasks to manageable items - sequencing of tasks for visibility of cause and effects - day-to-day tractability of progress *Measure: Efforts vs. Durations* - efforts = how many hours does it take to complete a task? - duration = how many working days do the hours equate to? - applying controls (optimizing work schedule) 1) scope: can we decrease what needs to be completed for a particular task? 2) quality: can we not do preliminary testing for a particular task? 3) time: what can we accomplish within 100 hours instead of 140 in a particular task? 4) cost: can we outsource and/or buy automated tools to perform this? 5) staff: can we add more people to do the work concurrently? 6) risk: how will we impact task 4, 5...n if we decrease scope in a task 4?

Step 2: Identify Task Patterns

*What Are Task Patterns?* - tasks depend on each other and must be performed in a sequence - involve dependent tasks, multiple successor tasks, and multiple predecessor tasks *How Do I Use Task Boxes to Create a Model?* - each section of the task box contains important information about the task, including the: 1) Task Name - should be brief and descriptive 2) Task ID - can be a number or code that provides unique identification 3) Task Duration - amount of time it will take to complete a task 4) Start Day/Date - the time that a task is scheduled to begin with 5) Finish Day/Date - the time that a task is scheduled to be completed *What Are the Main Types of Task Patterns?* 1) Dependent Tasks - When tasks must be completed one after another - Called dependent tasks because one depends on the other - Similar to a relay race 2) Multiple Successor Tasks - When several tasks can start at the same time - Each is called a concurrent task - Often, two or more concurrent tasks depend on a single prior task, which is called a predecessor task 3) Multiple Predecessor Tasks - When a task requires two or more prior tasks to be completed before it can start *How Do I Identify Task Patterns?* - Words like then, when, or and are action words that signal a sequence of events 1) Dependent Tasks: Do Task 1, then do Task 2 - describes dependent tasks that must be completed one after the other 2) Multiple Successor Tasks: When Task 2 is finished, start two tasks - Task 3 and Task 4 describes multiple successor tasks that can both start as soon as Task 2 is finished 3) Multiple Predecessor Tasks: When Tasks 5 and 6 are done, start Task 7 - Indicates that Task 7 is a multiple predecessor task because it can't start until two or more previous tasks all are completed *How Do I Work with Complex Task Patterns?* - Study the facts very carefully to understand the logic and sequence - Schedule will be wrong if task patterns are incorrect

Overview of Project Management

*What Shapes a Project?* - successful projects must be completed on time, within budget, meet requirements, and satisfy users *What is a Project Triangle?* - cost, scope, time - usually one of these is fixed (a budget cast in stone, an inflexible scope, and a schedule fixed by factors beyond the firm's control) *What Does a Project Manager Do?* - good leadership is essential - project planning (identify all project tasks and estimate the completion time and cost of each) - project scheduling (create a specific timetable that shows tasks, task dependencies, and critical tasks that might delay the project) *You can't manage what you can't control* *You can't control what you can't measure* *You can't measure what you can't define* *What Does a Project Manager Do?* - Project monitoring (guiding, supervising, and coordinating the project team's workload) - Project reporting (create regular progress reports to management, users, and the project team itself)

Step 1: Create a Work Breakdown Structure

*What is a Gantt Chart?* = a chart in which a series of horizontal lines shows the amount of work done or production created in certain periods of time in relation to the amount planned for those periods - developed by mechanical engineer and management consultant Henry L. Gantt almost 100 years ago - shows planned and actual progress on a project - time usually displayed on horizontal axis - tasks shown on vertical axis *What is a PERT/CPM Chart?* - Program Evaluation Review Technique (PERT) = developed by the U.S. Navy to manage complex projects; designed to analyze and represent the tasks involved in completing a given project - Critical Path Method (CPM) = similar to PERT, developed by private industry and most analysts call both a PERT chart *Which is better: Gantt vs. PERT?* - Gantt offers a valuable snapshot view of the project - PERT is more useful for scheduling, monitoring, and controlling the actual work - PERT displays complex task patterns and relationships - PERT chart boxes can provide more detailed information *Identifying Tasks in a Work Breakdown Structure (WBS)* = WBS must clearly identify each task and include an estimated duration - a task, or activity, is any work that has a beginning and an end and requires the use of company resources such as people, time, or money - tasks are basic units of work that the project manager plans, schedules, and monitors -- so they should be relatively small and manageable 1) Listing the Tasks (list all tasks, put tasks in order, add a description, decide how long each task takes, decide which tasks must go first) 2) Estimating Task Duration (tasks can be hours, days, or weeks) 3) Factors Affecting Duration - Project Size (must identify all project tasks, from initial fact finding to system implementation; how much time will be needed to perform each task?; allow for meetings, project reviews, training, and any other factors that could affect the productivity of the development team) - Human Resources (assemble and guide a development team that has the skill and experience to handle the project; turnover, job vacancies, and escalating salaries in the technology sector *Displaying the Work Breakdown Structure* - Experience with Similar Projects (develop time and cost estimates based on the resources used for similar, previously developed information systems) - Constraints (constraints are conditions, restrictions, or requirement that the system must satisfy; define system requirements that can be achieved realistically within the required constraints)

Step 3: Calculate the Critical Path

*Where is a Critical Path?* - a series of tasks which, if delayed, would affect the completion date of the overall project - if any task on the critical path falls behind schedule, the entire project will be delayed *How Do I Calculate the Critical Path?* - Review patterns, determine start and finish dates, which will determine the critical path

Chapter Objectives

- Explain project planning, scheduling, monitoring, and reporting - Draw a project triangle that shows the relationship among project cost, scope, and time - Describe work breakdown structures, task patterns, and critical path analysis - Explain techniques for estimating task completion times and costs - Describe various scheduling tools, including Gantt charts and PERT/CPM charts - Analyze task dependencies, durations, start dates, and end dates - Describe project management software and how it can assist you - Discuss the importance of managing project risks - Understand why projects sometimes fail

Project Management Software

- Microsoft Project is a full-featured program that holds the dominant share of the market 1) Gantt Chart - as you enter the tasks, the program automatically performs the calculations, detects the task patterns, and creates a Gantt chart 2) Network Diagram - view is similar to a PERT Chart 3) Calendar View - view is similar to a PERT Chart as an overlay on a calendar

The Bottom Line

- Project managers must be alert, technically competent, and highly resourceful. They also must be good communicators with strong human resource skills - When problems occur, the project manager's ability to handle the situation becomes the critical factor

Project Management Examples

To transform a task list into a PERT/CPM chart, you first enter the task name, ID, duration, and predecessors for each task. - Notice that this example includes dependent tasks, tasks with multiple successors, and tasks with multiple predecessors