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Scope

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-The deliverables or work products that must be completed in order to achieve the project's MOV. -Provides a boundary so that what needs to get done - gets done. -Otherwise, schedule and budget are increased for no reason -Defines what is part of the project team's work and what is not. -This also sets expectations for all of the project's stakeholders -Provides a link between the project's MOV and the project plan.

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Project Management Process

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Scope Planning Scope Definition Create Work Breakdown Structure Scope Verification Scope Change Control

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Scope Planning

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The development of a scope management plan that defines the project's scope and how it will be verified and controlled throughout the project. Scope Management Plan

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Scope Definition

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A detailed scope statement that defines what work will and will not be part of the project and will serve as a basis for all future project decisions. Detailed Project Scope

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Create Work Breakdown Structure

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The decomposition or dividing of the major project deliverables into smaller and more manageable components; an important tool that ties the project's scope to resources and activities. The WBS represents a logical decomposition of the work to be performed and focuses on how the product, service, or result is naturally subdivided. It is an outline of what work is to be performed. WBS

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Scope Verification

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Confirmation and formal acceptance that the project's scope is accurate, complete, and supports the project's MOV. Scope Verification Checklist

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Scope Change Control

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Ensuring that controls are in place to manage proposed scope changes once the project's scope is set; helps the project achieve its MOV. These procedures must be communicated to all project stakeholders. Scope Change Control Process (Scope Change Request Form/Scope Change Request Log)

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Project Scope Initiation ; Planning

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A beginning process that formally authorizes the project manager and team to develop the scope management plan This entails: Conceptualizing the Scope Boundary Developing the Scope Statement

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Scope Boundary

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The first step to establishing what is, and what is not, part of the project work to be completed by the project team (fence designed to keep some things in (supports MOV) and other things out (does not support MOV))

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Scope Management Plan

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the processes and techniques for defining and managing scope

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Scope Statement

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Provides a way to define the scope boundary. A narrative of what deliverables or work-products the project team will and will not provide throughout the project. A first step that provides a high-level abstraction of the project's scope that will be defined in greater detail as the project progresses.

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Project Scope Definition

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Where deliverables can be divided into project- oriented deliverables and product- oriented deliverables.

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Project-Oriented Scope

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Deliverables that support the project management and IT development processes defined in the Information Technology Project Methodology (ITPM). Examples: Business case, project charter and project plan, etc. Definition Tools: DDT & DSC

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Deliverable Definition Table (DDT)

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define all of the project- oriented deliverables to be provided by the project team.

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Deliverable Structure Chart (DSC)

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can be developed as an interim step to define detailed work packages that will be used to estimate the project schedule and budget (used to create WBS)

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Product-Oriented Scope

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High-level features and functionality of the application system First cut for requirements definition that will be defined in greater detail during the systems development life cycle (SDLC) Examples Add new customer, look up customer balance, print daily sales report by region, etc. Definition Tools: DFD & UCD

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(Context) Dataflow Diagram (DFD)

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modeling tool for refining the scope boundary and defining what the system must do

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Use Case Diagram

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a powerful tool for identifying the main functions or features of the system and the different users or external systems that interact with the system; used in OO world as a part of Unified Modeling Language (UML)

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Scope Verification

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Ensures: That the project's scope is well-defined, accurate and complete The project's scope is acceptable to the project stakeholders That standards exist so that the project's scope will be completed correctly That the project's MOV will be achieved if the project scope is completed Tools: Scope Verification Checklist

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Scope Verification Checklist

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MOV Deliverables Quality Standards Milestones Review and Acceptance

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Scope Change Control - Mitigates

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Scope Grope Scope Creep Scope Leap

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Scope Grope

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metaphor that describes a project team's inability to define the project's scope.

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Use Case

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depicts the major functions the system must perform for an actor or actors.

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JAD

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a group- based method where the users and systems analysts jointly define the system requirements or design the system (Joint Application Development)

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Scope Creep

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refers to increasing featurism, adding small yet time- and resource- consuming features to the system once the scope of the project has been approved.

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Scope Leap

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scope leap sug-gests a fundamental and significant change in the project scope (changes MOV; happens as a result of changes in the environment, the business, and the competitive makeup of the industry)

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Project Time Management

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focuses on the processes necessary to develop the project schedule and to ensure that the project is completed on time. Activity definition Activity sequencing Activity duration estimation Schedule development Schedule control

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Activity definition

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Identifying what activities must be completed to produce the project scope deliverables

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Activity sequencing

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Determining whether activities can be completed sequentially or in parallel and any dependencies that may exist among them

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Activity resource estimation

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Identifying the type of resources ( people, tech-nology, facilities, etc.) and the quantity of resources needed to carry out project activities

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Activity duration estimation

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Estimating the time to complete each activity

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Schedule development

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Based on the availability of resources, the activities, their sequence, and time estimates, a schedule for the entire budget can be developed

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Schedule control

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Ensuring that proper processes and procedures are in place in order to control changes to the project schedule

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Work Package (def)

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smaller components and more manageable units of work of the project decomposed or subdivided by the WBS

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Milestone

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a significant event or achievement that provides evidence that that deliverable has been completed or that a phase is formally over.

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cruxes

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proof of concepts

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Deliverables

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Tangible, verifiable work products Reports, presentations, prototypes, etc.

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Milestones (key components)

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Significant events or achievements Acceptance of deliverables or phase completion Cruxes (proof of concepts) Quality control Keeps team focused

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Developing the WBS

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The WBS Should Be Deliverable-Oriented The WBS Should Support the Project's MOV Ensure WBS allows for the delivery of all the project's deliverables as defined in project scope 100 percent rule The Level of Detail Should Support Planning and Control Developing the WBS Should Involve the People Who Will Be Doing the Work Learning Cycles and Lessons Learned Can Support the Development of a WBS

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Estimation Techniques- The Project Management Approach

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Guesstimating Delphi Technique Time Boxing Top-Down Bottom Up Analogous Estimates (Past experiences) Parametric Modeling (Statistical)

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Guesstimating

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Based on feeling not facts Not a good method for estimating but often used by inexperienced project managers

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Delphi Technique

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Involves multiple, anonymous experts Each expert makes an estimate Estimates compared: If close, can be averaged Else do another iteration until consensus is reached

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Time Boxing

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A "box" of time is allocated for a specific Activity or task or deliverable Can focus a team if used effectively Can demoralize a team if used too often or ineffectively because of the increased stress or pressure on the project team to get things done

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Top-Down Estimating

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Top & middle managers determine overall project schedule &/or cost Lower level managers are expected to breakdown schedule/budget estimates into specific activities (WBS) Often couched in terms of what a project should cost and how long it should take as decreed by a member of top management who thinks those parameters are appropriate. May be a response to the business environment May lead to a death march project.

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Bottom-Up Estimating

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Most common form of project estimation Schedules & budgets are constructed from the WBS Starts with people who will be doing the work Schedules & budgets are the aggregate of detailed activities & costs

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Analogous estimating

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based on similarity between current projects and others. Use information from previous, similar projects as a basis for estimation

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Parametric Modeling

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Use project characteristics (parameters) in a mathematical model to estimate Example: $50/ LOC based on: Programming language Level of expertise Size & complexity

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Project Estimation -Software Engineering Approaches

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Lines of Code (LOC) Function Points COCOMO Heuristics

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Lines of Code (LOC)

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An often used metric for determining the size of the project Most controversial Count comments? Declaring variables? Efficient code vs. code bloat Language differences Easier to count afterwards than to estimate before programming begins

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Function Point Analysis

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are a synthetic metric, similar to ones used every day, such as hours, kilos, tons, nautical miles, degrees Celsius, and so on. However, function points focus on the functionality and complexity of an application system or a particular module. Allan Albrecht, IBM - 1979 Independent of the Technology IFPUG standards (www.ifpug.org)

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COCOMO

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COnstructive COst MOdel Parametric Model developed by Barry Boehm in 1981 Project types Organic Routine projects where the work is expected to go smoothly with few problems Embedded Challenging projects that may be new ground for the organization or project team Semi-detached In between organic and embedded. Projects that may not be simple and straightforward, but there is a high degree of confidence that the project team can meet the challenge

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COCOMO Models (Calculate Effort)

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Organic - Routine Person Months = 2.4 * KDSI1.05 Embedded - Challenging Person Months = 3.6 * KDSI1.20 Semi-Detached - Middle Person Months = 3.0 * KDSI1.12

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COCOMO Models (Calculate Duration)

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Organic Duration = 2.5 * Effort0.38 Semi-Detached Duration = 2.5 * Effort0.35 Embedded Duration = 2.5 * Effort0.32

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COCOMO Model Types

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Basic Intermediate Advanced COCOMO II

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Heuristics(Rules of Thumb)

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1/3 - Planning 1/6 - Coding 1/4 - Component test and early system test 1/4 - System test, all components in hand

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Some Examples of Heuristics from Estimating Software Costs by Capers Jones (1988)

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Each formal design inspection will find and remove 65 percent of the bugs present. Each formal code inspection will find and remove 60 percent of the bugs present. Function points raised to the 0.4 power predict the approximate development schedule in calendar months. Function points divided by 150 predict the approximate number of personnel required for the application.

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What Is the Best Way to Estimate IT Projects?

answer

Use more than one technique for estimating If estimates from different techniques close, average them Adjust estimate based on experience Negotiation may lead to unrealistic estimations

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Delphi Techniques

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involves multiple experts who arrive at a consensus on a particular subject or issue. Although the Delphi technique is generally used for group decision making, it can be a useful tool for estimating when the time and money warrant the extra effort

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100 percent rule

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the most important criterion in developing and evaluating the WBS. The rule states: " The next level decomposition of a WBS element ( child level) must represent 100 percent of the work applicable to the next higher ( parent) element."

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WBS dictionary

answer

describes the various work packages. Information included in the WBS dictionary may include a code or account identifier, a description of the work, a list of the project team members assigned to carry out the work, contract information, quality standards, and resources required.

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Analogous estimation

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refers to developing estimates based upon one's opinion that there is a significant similarity between the current project and others

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software engineering

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The discipline that focuses on the processes, tools, and methods for developing a quality approach to developing software

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Metrics

answer

provide the basis for software engineering and refers to a broad range of measurements for objectively evaluating computer software.

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Internal logical file ( ILF)

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An ILF is a logical file that stores data within the application boundary (an Entity would be considered an ILF)

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External interface file ( EIF)

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An EIF is similar to an ILF; however, an EIF is a file maintained by another application system.

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External input ( EI)

answer

refers to processes or transactional data that originate outside the application and cross the application boundary from outside to inside.

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External output ( EO)

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a process or transaction that allows data to exit the application boundary.

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External inquiry ( EQ)

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a process or transaction that includes a combination of inputs and outputs for retrieving data from either the internal files or from files external to the application

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backfiring

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allows direct conversion from an application's source code to an equivalent function point count (accuracy not very high)

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Organic

answer

These are routine projects where the technology, processes, and people are expected all to work together smoothly.

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Embedded

answer

a challenging project.

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Semi- Detached

answer

If organic projects are viewed as easy and embedded as difficult or challenging, then semi- detached fall somewhere in the middle.

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parametric model

answer

where it uses dependent variables, such as cost or duration, based upon one or more independent variables that are quantitative indices of performance and/ or physical attributes of the system.

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KDSI =

answer

Thousands of delivered source instructions, i. e., LOC

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Note: Best Method of Estimation

answer

Unfortunately, no single method or tool is best for accurately estimating IT projects. It may be a good idea to use more than one technique for estimating.

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Cost estimating

answer

Based upon the activities, their time estimates, and resource requirements, an estimate can be developed.

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Cost budgeting

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Once the time and cost of each activity is estimated, an overall cost estimate for the entire project can be made. Once approved, this estimate becomes the project budget.

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Cost control

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Ensuring that proper processes and procedures are in place to control changes to the project budget.

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Gantt Chart

answer

Working with the U. S. Army during World War I, Henry L. Gantt developed a visual representation that compares a project's planned activities with actual progress over time.

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Project network diagrams

answer

include several useful tools for planning, scheduling, and monitoring the project's progress.

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Activity on the node ( AON)

answer

a project network diagramming tool that graphically represents all of the project activities and tasks, as well as their logical sequence and dependencies.

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Predecessor activities

answer

are those activities that must be completed before another activity can be started

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successor activities

answer

are activities that must follow a particular activity in some type of sequence.

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parallel activity

answer

an activity or task that can be worked on at the same time as another activity.

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Slack

answer

sometimes called float, is the amount of time an activity can be delayed, that is, take longer than expected, before it delays the project.

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expedite, or crash

answer

a project manager can do this to the project by adding resources to an activity on the critical path to shorten its duration.

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fast tracking (the project)

answer

Doing two, or several, activities that were originally planned to be completed in sequence at the same time can shorten the critical path.

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The program evaluation and review technique ( PERT)

answer

(also called PERT/CPM) uses the project network diagramming technique to create a visual repre-sentation of the scheduled activities that expresses both their logical sequence and interrelationships. It also uses a statistical distribution that provides probability for estimating when the project and its associated activities will be completed. This probabilistic estimate is derived by using three estimates for each activity: optimistic, most likely, and pessimistic.

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optimistic estimate

answer

the minimum time in which an activity or task can be completed.

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pessimistic estimate

answer

a worst- case scenario and is viewed as the maximum time in which an activity can or should be completed.

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PERT Equation

answer

or a+4b+c/6

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critical path

answer

the longest path in the project network and is also the shortest time in which the project can be completed.

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precedence diagramming method ( PDM)

answer

Finish- to- start ( FS), Start- to- start ( SS), Finish- to- finish ( FF)

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Finish- to- start ( FS)

answer

s the most common rela-tionship between activities and implies a logical sequence. Here, activity or task B cannot begin until task A is completed.

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Start - to - start (SS)

answer

relationship between tasks or activities occurs when two tasks can or must start at the same time. Although the tasks start at the same time, they do not have to finish together— that is, the tasks can have different durations.

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Finish- to- finish ( FF)

answer

Another type of parallel activity is the finish- to- finish relationship. Here, two activities can start at different times, have different durations, but are planned to be competed at the same time.

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rolling wave planning

answer

help deal efficiently with project planning; Instead of developing a large, detailed project plan requiring frequent updates, the project manager can prepare an overall summary plan, or master schedule, and then develop detailed schedules for only a few weeks or a few months at a time

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Lead

answer

starting the next task before the first task is complete

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Lag

answer

(or negative lead) is the adding of a buffer of time before the next task begins

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Steps for Developing the Project Budget

answer

Define what resources will be needed to perform the work Determine the quantity of resources that are needed Define the cost of using each resource Calculate the cost of the task or activity Ensure that the resources are leveled, that is, resources have not been over allocated assigned to more than one task scheduled at the same time

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Direct Costs

answer

The direct cost of labor or other resources

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Indirect Costs

answer

The cost for covering such things as rent, utilities, insurance, etc.

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Sunk Costs

answer

Costs incurred prior to the project such as a project that has been restarted after a failed attempt

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Learning Curve

answer

Often have to "Build one and throw it away" to understand a problem or a new technology

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Prorated Costs

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The idea that there is a cost associated with using a resource

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Reserves

answer

Contingency funds to be used at the discretion of the project manager (provides a cushion when unexpected situations arise)

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Finalizing the Project Schedule and Budget

answer

The project schedule and budget may require several iterations before it is acceptable to the sponsor, the project manager, and the project team Once the project schedule and project plan are accepted, the project plan becomes the baseline plan. Once accepted, the project manager and project team have the authority to execute or carry out the plan

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Contingency funds

answer

based on risk and provide the project manager with a degree of flexibility.

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Resource Allocation

answer

resources cannot be overallocated—that is, most resources cannot be assigned to more than one task at the same time.

question

baseline plan

answer

transition from the project plan once the project schedule and project plan are accepted;used as a yardstick, or benchmark, to track the project's actual progress with the original plan.

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CPM

answer

Critical path method; also called PERT/CPM

question

Would not outsource

answer

systems and architecture planning research and development business process

question

When asked how the offshore outsourcing relationship is managed,

answer

38% said the relationship is managed by a dedicated manager within the IT department 35% said it is managed by a project sponsor for the IT department. More than half (54%)said their organization has a steering committee of senior IT and business executives that governs offshore outsourcing decisions.

question

Countries to which outsourcing is common

answer

India China Ireland Russia

question

Other attractive countries

answer

Mexico and Costa Rica Czech republic ( infrastructure) Poland ( supportive environment) Egypt ( overall)

question

Hidden cost of outsourcing

answer

Cost of selecting a vendor: Expect to spend an additional 1 percent to 10 percent on vendor selection and initial travel costs. Transition cost: Expect to spend an additional 2 percent to 3 percent on transition costs. Cost of layoff: Bottom line: Expect to pay an extra 3 percent to 5 percent on layoffs and related costs. Cultural cost: Bottom line: Expect to spend an extra 3 percent to 27 percent on productivity lags. Cost of ramping up: Expect to spend an extra 1 percent to 10 percent on improving software development processes. Cost of managing an offshore contract: Bottom line: Expect to pay an additional 6 percent to 10 percent on managing your offshore contract.

question

Benefits of outsourcing

answer

Lower costs ( due to economies of scale or lower labor costs) Variable capacity The ability to focus on core competencies Lack of in house resources Getting work done more efficiently or effectively Tighter control on budget through predictable costs Lower ongoing investment in internal infrastructure Access to innovation and thought leadership

question

Challenges to outsourcing

answer

Failure rate is 40-70% Conflict of interest Client wants cheaper better service Vendor wants profit Lack of good business case ( rather than just cost cutting) Transactional outsourcing-well defined rules- 90% success Co-sourcing alliances- client and vendor jointly manage projects ( application development)-63% success Strategic partnerships- single outsource manages a bundle of services-50% success Other issues: managing communication cultural differences lack of internal processes for specifying work internal customer management skills.

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Plan Purchases and acquisition

answer

making the decision on what and when to buy

question

Plan contracting

answer

Documenting product, services needed and potential sellers, vendors, suppliers etc

question

Request Seller responses

answer

Obtain bids, quotes, proposals, literature

question

Procurement Management Processes

answer

Plan Purchases and acquisition Plan contracting Request Seller responses Select Sellers Contract administration Contract closure

question

3 categories for procurement type contracts

answer

Fixed Price or lump sum contracts Cost-reimbursable contracts Time and Materials Contracts

question

Types of Outsourcing Relationships

answer

Full In-sourcing Selective Full Outsourcing Out sourcing

question

Seven deadly mistakes of Outsourcing

answer

Outsourcing activities that should not be outsourced Selecting the wrong vendor Writing a poor contract Overlooking personnel issues Losing control over the outsourced activity Overlooking the hidden cost of outsourcing Failing to plan an exit strategy.

question

Cost-reimbursable contracts

answer

Cost plus fee (CPF) or Cost Plus Percentage (CPPC) Cost Plus Fixed Fee Cost Plus Incentive Fee

question

Select Sellers

answer

Negotiating, selecting, and contracting with a seller for a particular product or service

question

Contract administration

answer

Managing the relationship and contract between the buyer and seller. This includes reviewing and documenting the seller's performance, contract changes, and taking corrective action when necessary

question

Contract closure

answer

Completing and settling each contract after any open items or settlements are resolved

question

contract

answer

a document signed by the buyer and seller that defines the terms and conditions of the buyer- seller relationship.

question

Fixed- price or lump- sum contracts

answer

A total or fixed price is negotiated or set as the final price for a specific product or service.

question

Cost- reimbursable contracts

answer

For these types of contracts a payment or reimbursement is made to the seller to cover the seller's actual costs.

question

Time and materials ( T; M) contracts

answer

a hybrid of cost-reimbursable and fixed- price contracts. Under a T; M contract, the buyer pays the seller for both the time and materials required to complete the work.

question

Cost- plus- fee ( CPF) or cost- plus- percentage of cost ( CPPC)

answer

The seller is paid for the costs incurred in performing the work as well as a fee based on an agreed- upon percentage of the costs.

question

Cost- plus- fixed- fee ( CPFF)

answer

In this case, the seller is reimbursed for the total direct and indirect costs of performing the work, but receives a fixed amount.

question

Cost- plus- incentive- fee ( CPIF)

answer

Under this type of contract, the seller is reimbursed for the costs incurred in doing the work and receives a predetermined fee plus an incentive bonus for meeting certain objectives.

question

full- insourcing approach

answer

all products and services would be retained internally.

question

full- outsourcing approach

answer

where an organization or project acquires all products or services from external sources

question

selective outsourcing

answer

probably the best approach for organizations and projects; More specifically, it provides greater flexibility to choose which project processes deliverables should be outsourced and which should be kept internal.

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