1 U08784 Software Project Management lecturer: Timothy Au url:

2 The Project Management Process The Project Management Process The Project Management Process The Project Life CycleThe Project Life Cycle Define your ProjectDefine your Project Prepare a Project PlanPrepare a Project Plan Preparing Project ProposalPreparing Project Proposal

3 The Project Life Cycle From the highest-level point of view, there are four basic project phases: From the highest-level point of view, there are four basic project phases: 1.Initiation Phase – An appropriate response to the need is determined and described. 2.Planning Phase – The project solution is further developed in as much as detailed as possible. 3.Executing Phase – the prescribed work is performed. Progress is continuously monitored and appropriate adjustments are made. 4.Close-out Phase – the emphasis is on the verifying that the project has satisfied or will satisfy.

4 The Project Management Process: Step by Step According to Gary R. Heerkens in his book, provides additional details in the areas of requirement gathering, project definition, risk management and stakeholder. This becomes an enhanced eight-step process, According to Gary R. Heerkens in his book, provides additional details in the areas of requirement gathering, project definition, risk management and stakeholder. This becomes an enhanced eight-step process, 1.Identify and frame the problem or opportunity. In this phase, the fundamental need is identified. Requirement Document. 2.Identify and define the best project solution. In this step, determinations should be made regarding the work groups should be involved. Project Definition Document. 3.Identify task and resource requirements. The next phase is to identify the task and the resource requirements; the work to be done (the tasks). 4.Prepare the control schedule and resource allocation plan. By combing the information on the preferred sequence of tasks, the estimated task durations and an assumed project started date, the team can place tasks “real time”.

5 The Project Management Process: Step by Step 5.Estimate project costs and prepare a project budget. In this step, the project manager coordinates the preparation of a cost estimate for the project. This budget is used to monitor and control cost expenditures during the project execution. 6.Analyze risk and establish stakeholder relationships. Once the project team has identified the work, prepared the work schedule and estimated the costs. The three fundamental components of the planning process are complete. Once the project team has identified the work, prepared the work schedule and estimated the costs. The three fundamental components of the planning process are complete. to deal with anything that might go wrong and threaten to the successful completion of the project – risk management. to deal with anything that might go wrong and threaten to the successful completion of the project – risk management. to identify all of project stakeholders and establish or solidify relationships that will be maintained throughout the life of the project. to identify all of project stakeholders and establish or solidify relationships that will be maintained throughout the life of the project. 7.Maintain control and communicate as needed during execution. Believe it or not. You will spend most of the time in doing this. Maintain control and communicate as needed during execution. 8.Manage to an orderly close-out. characterized by the development of a punch list (much like a checklist) a small list of tasks that the project team needs to complete in order to close-out the project.

6 How Project Should Evolve? Projects typically begin when we recognize that a need exists. From this point on, we will often become our own enemies – we are human Projects typically begin when we recognize that a need exists. From this point on, we will often become our own enemies – we are human our natural tendency is to want to solve the problem right away with the first solution that pops up into our heads our natural tendency is to want to solve the problem right away with the first solution that pops up into our heads This human nature is often counterproductive to good project management. This human nature is often counterproductive to good project management.

7 How Project Should Evolve? 1. Fully understand the problem and opportunity. Uncovering the fundamental problem is referred to as identifying the true need. 2. Identify the optimum solution. The key to effective project management is to determine the best solution – to the organization. 3. Fully develop the solution and a preliminary plan. When a solution is identified, it is typically characterized in one or two brief statement. This is called the solution statement. It ends with an accurate, credible, detailed project plan that the team can use as a map for execution. 4. Formally launch the project. The activities involved in the formal initiation of project execution such as a business case, making formal presentation to management, creating and approving a project charter and securing funding to proceed.

8 Brainstorming Brainstorming is a group-oriented technique that involves that spontaneous contribution of ideas from all members of a team or group. Brainstorming is a group-oriented technique that involves that spontaneous contribution of ideas from all members of a team or group. Some basic rules for conducting a productive brainstorming session include the following: Some basic rules for conducting a productive brainstorming session include the following: Stress the quantity of ideas instead of qualityStress the quantity of ideas instead of quality Encourage every members of the group to contribute any ideas.Encourage every members of the group to contribute any ideas. Do not be concerned with the reasonableness or the feasibility initially.Do not be concerned with the reasonableness or the feasibility initially. Do not criticize, judge, or evaluate contributions until you are done.Do not criticize, judge, or evaluate contributions until you are done. Encourage the practice of combining or modifying ideas already identified.Encourage the practice of combining or modifying ideas already identified.

9 Using Financial Criteria for Project Selection Companies that use project selection and justification methods often rely on financial calculations as a comparative tool and as a basic hurdle management approval. Companies that use project selection and justification methods often rely on financial calculations as a comparative tool and as a basic hurdle management approval. Basic financial evaluation models known as cost benefit analysis – Basic financial evaluation models known as cost benefit analysis – Net Present Value – the value in present dollars of all cash flows expected in the future from a project.Net Present Value – the value in present dollars of all cash flows expected in the future from a project. Internal Rate of Return – the percentage rate at which the project will bring a return on investment.Internal Rate of Return – the percentage rate at which the project will bring a return on investment. Payback Period – also known as time to money or breakeven point, the number of months or years the project will take to recover the original investment.Payback Period – also known as time to money or breakeven point, the number of months or years the project will take to recover the original investment. Cash Hole – also known as maximum exposure, the most money that will be invested in the project at any point.Cash Hole – also known as maximum exposure, the most money that will be invested in the project at any point. After all, projects are really financial investments After all, projects are really financial investments

10 Performing a Cost Benefit Analysis Each of the financial metrics identified can be determined by performing a Cost Benefit Analysis. Each of the financial metrics identified can be determined by performing a Cost Benefit Analysis. Basically, it might consists of four basic steps: Basically, it might consists of four basic steps: 1.Identify the sources of cash flows (inflows and outflows) 2.Estimate the magnitude of the specific cash flows 3.Charts the cash flows (construct a cash flow diagram) 4.Calculate the net cash flow.

11 Using Non-financial Criteria for Project Selection Non- financial criteria can be used when financial information is unavailable or expensive to obtain. Non- financial criteria can be used when financial information is unavailable or expensive to obtain.

12 Preparing Project Plan Project Plan Introduction Introduction Background – Organizational Structure, Business Goal, Business Strategy and Business Operation Background – Organizational Structure, Business Goal, Business Strategy and Business Operation Statement of Purpose / Statement of Change / System Objectives Statement of Purpose / Statement of Change / System Objectives Description of Current System – Current System Flow Description of Current System – Current System Flow Problem, Limitation, New Requirement and New Challenge Problem, Limitation, New Requirement and New Challenge Description of Proposed System Description of Proposed System Benefit of the Proposed System Benefit of the Proposed System Cost Benefit Analysis – Payback Period, Breakeven Analysis, NPV, ROI, IRR Cost Benefit Analysis – Payback Period, Breakeven Analysis, NPV, ROI, IRR Hardware, Software and Network Requirement Hardware, Software and Network Requirement Alternatives Alternatives Recommendation Recommendation Company Profile and Management Team (applicable to outsourcing vendor and contractor) Company Profile and Management Team (applicable to outsourcing vendor and contractor) Project Development Team Structure & Profile Project Development Team Structure & Profile Work Distribution, User Responsibility Work Distribution, User Responsibility Project Schedule Progress Report, Gantt Chart, Network Diagram, PERT Chart Project Schedule Progress Report, Gantt Chart, Network Diagram, PERT Chart Related Documents Implementation Plan Implementation Plan Capacity Plan Capacity Plan Technical Plan Technical Plan Quality Plan Quality Plan Risk Analysis Risk Analysis

13 Preparing Business Proposal Business Proposal Introduction Introduction Background – About the company Background – About the company Executive Summary Executive Summary Opportunities Opportunities Product and Services Product and Services Present Status Present Status Strategy Strategy R&D Technology R&D Technology Product Description – What will it do? Product Features. Product Niche. Applications. Value-Added Services. Value to the Company. Value to Customer. Competitive Advantages. Product Description – What will it do? Product Features. Product Niche. Applications. Value-Added Services. Value to the Company. Value to Customer. Competitive Advantages. Target Market, Market Segment, Market Share Target Market, Market Segment, Market Share R&D Plan – Project Schedule, Project Plan R&D Plan – Project Schedule, Project Plan Sales and Marketing Plan Sales and Marketing Plan Financial Plan Financial Plan Management Team – Organizational Structure Management Team – Organizational Structure R&D Team R&D Team Funding Requirement and requested Proposal Funding Requirement and requested Proposal Critical Success Factors Critical Success Factors Implementation Plan – Major Milestones Implementation Plan – Major Milestones Conclusion Conclusion

14 Your Software Project Proposal In this subject, you are required to prepare and present your project proposal for the large complex business project; In this subject, you are required to prepare and present your project proposal for the large complex business project; You are required to submit a final proposal to the target customer, comprising the following: You are required to submit a final proposal to the target customer, comprising the following: Software Costs & timescale estimating (30%)Software Costs & timescale estimating (30%) Risk Analysis Report (10%) and Presentation (20%)Risk Analysis Report (10%) and Presentation (20%) Project Plan, Quality Control & Recommendations (30%)Project Plan, Quality Control & Recommendations (30%) Review (10%)Review (10%)

15 Project Management Tasks PROJECT DEFINITION PROJECT DEFINITION Establish Terms of ReferenceEstablish Terms of Reference Project AnalysisProject Analysis Estimate Effort and TimeEstimate Effort and Time Prepare/Document Project ProposalPrepare/Document Project Proposal PROJECT/STAGE PLANNING & SCHEDULING PROJECT/STAGE PLANNING & SCHEDULING Stage Analysis (Detailed Planning)Stage Analysis (Detailed Planning) Update Document Stage PlanUpdate Document Stage Plan CONTROL & REPORTING CONTROL & REPORTING Monitor Progress/QualityMonitor Progress/Quality Report ProgressReport Progress Control Progress/QualityControl Progress/Quality PROJECT REVIEW PROJECT REVIEW