Information Technology Project

Management, Eighth Edition

  Describe an overall framework for project
integration management as it relates to the other
project management knowledge areas and the
project life cycle
 Discuss the strategic planning process and apply
different project selection methods
 Explain the importance of creating a project charter
to formally initiate projects
 Describe project management plan development,
understand the content of these plans, and review
approaches for creating them

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  Explain project execution, its relationship to project
planning, the factors related to successful results, and
tools and techniques to assist in directing and
managing project work
 Describe the process of monitoring and controlling a
project
 Understand the integrated change control process,
planning for and managing changes on information
technology (IT) projects, and developing and using a
change control system
 Explain the importance of developing and following
good procedures for closing projects
 Describe how software can assist in project integration
management

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  Project managers must coordinate all of the other
knowledge areas throughout a project’s life cycle
 Many new project managers have trouble looking
at the “big picture” and want to focus on too many
details
 Project integration management is not the same
thing as software integration

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  1. Developing the project charter involves working
with stakeholders to create the document that
formally authorizes a project—the charter.
 2. Developing the project management plan
involves coordinating all planning efforts to create a
consistent, coherent document—the project
management plan.
 3. Directing and managing project work involves
carrying out the project management plan by
performing the activities included in it.

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  4. Monitoring and controlling
◦ Monitoring and controlling project work involves
overseeing activities to meet the performance objectives
of the project
◦ Performing integrated change control involves identifying,
evaluating, and managing changes throughout the
project life cycle.
 5. Closing the project or phase involves finalizing
all activities to formally close the project or phase.

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PM Process Initiating Process Planning Process Group Executing Process Monitoring & Controlling Closing
Groups / Group Group Process Group Process
Knowledge Area Group
Processes
Project Develop Project Develop Project Management Direct and Manage Project Monitor and Control Project Close Project
Management Charter Plan Execution Work
Integration Develop Prelim Project Integrated Change Control
Scope Statement

Project Scope Scope Planning Scope Verification

Management Scope Definition Scope Control
Create WBS

Project Time Activity Definition & Sequencing Schedule Control

Management Resource Estimating
Duration Estimating
Schedule Development

Project Cost Cost Estimating Cost Control

Management Cost Budgeting

Project Quality Quality Planning Perform Quality Assurance Perform Quality Control
Management

Project HR Human Resources Planning Acquire Project Team Manage Project Team
Management Develop Project Team

Project Communications Planning Information Distribution Performance Reporting

Communications Manage Stakeholders
Management

Project Risk Risk Management Planning Risk Monitoring and Control

Management Risk Identification
Qualitative / Quantitative Risk
Analysis
Risk Response Planning

Project Plan Purchases and Acquisitions Request Seller Responses Contract Administration Contract
Procurement Plan Contracting Select Sellers Closure
Management

Copyright 2016
Information Technology Project
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  The Surrey police force in UK began looking into replacing
its criminal intelligence system in 2005, but the project was
finally cancelled in 2013, and the old system was replaced
with a much less expensive one used by thirteen other
forces
 The person in charge of the project would not take
responsibility for it
 An audit report said the project was beyond their in-house
capabilities and experience
 Organizations must make the right staffing/outsourcing
decisions

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Management, Eighth Edition Copyright 2016 9
  Strategic planning involves determining long-term
objectives, predicting future trends, and projecting
the need for new products and services
 Organizations often perform a SWOT analysis
◦ analyzing Strengths, Weaknesses, Opportunities, and
Threats
 As part of strategic planning, organizations
◦ identify potential projects
◦ use realistic methods to select which projects to work on
◦ formalize project initiation by issuing a project charter

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  A 2013 survey identified companies most admired for
their ability to apply IT-related business capabilities for
competitive advantage

 Best practices of these companies include:

◦ Customer-driven IT is essential
◦ IT can enable branding and customer recruitment
◦ Keep improving

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Management, Eighth Edition Copyright 2016 12
  There are usually more projects than available
time and resources to implement them

 Methods for selecting projects include:

◦ focusing on broad organizational needs
◦ categorizing information technology projects
◦ performing net present value or other financial
analyses
◦ using a weighted scoring model
◦ implementing a balanced scorecard

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  It is often difficult to provide strong justification for
many IT projects, but everyone agrees they have
a high value

 Three important criteria for projects:

◦ There is a need for the project
◦ There are funds available
◦ There’s a strong will to make the project succeed

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  One categorization is whether the project
addresses
◦ a problem
◦ an opportunity, or
◦ a directive

 Another categorization is how long it will take to do

and when it is needed

 Another is the overall priority of the project

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  Financial considerations are often an important
consideration in selecting projects

 Three primary methods for determining the projected

financial value of projects:
◦ Net Present Value (NPV) analysis
◦ Return On Investment (ROI)
◦ Payback analysis

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  Net Present value (NPV) analysis is a method of
calculating the expected net monetary gain or loss
from a project by discounting all expected future
cash inflows and outflows to the present point in
time

 Projects with a positive NPV should be considered if

financial value is a key criterion

 The higher the NPV, the better

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  Determine estimated costs and benefits for the life
of the project and the products it produces

 Determine the discount rate

 Calculate the NPV

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  Return on investment (ROI) is calculated by
subtracting the project costs from the benefits and
then dividing by the costs
ROI = (total benefits - total costs) / total costs

 The higher the ROI, the better

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  Another important financial consideration is payback
analysis

 The payback period is the amount of time it will take to

recover, in the form of net cash inflows, the total dollars
invested in a project

 Payback occurs when the net cumulative discounted

benefits equals the costs

 Many organizations want IT projects to have a fairly

short payback period

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  A weighted scoring model is a tool that provides a
systematic process for selecting projects based on
many criteria
 Identify criteria important to the project selection process
 Assign weights (percentages) to each criterion so they add
up to 100%
 Assign scores to each criterion for each project
 Multiply the scores by the weights and get the total
weighted scores

 The higher the weighted score, the better

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  After deciding what project to work on, it is
important to let the rest of the organization know

 A project charter is a document that formally

recognizes the existence of a project and
provides direction on the project’s objectives and
management

 Key project stakeholders should sign a project

charter to acknowledge agreement on the need
and intent of the project; a signed charter is a key
output of project integration management
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  A project statement of work
 A business case
 Agreements
 Enterprise environmental factors
 Organizational process assets, which include
formal and informal plans, policies, procedures,
guidelines, information systems, financial systems,
management systems, lessons learned, and
historical information

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  A project management plan is a document used
to coordinate all project planning documents and
help guide a project’s execution and control

 Plans created in the other knowledge areas are

subsidiary parts of the overall project
management plan

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Management, Eighth Edition Copyright 2016 29
  Introduction or overview of the project
 Description of how the project is organized
 Management and technical processes used on
the project
 Work to be done, schedule, and budget
information

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  Involves managing and performing the work
described in the project management plan
 The majority of time and money is usually spent
on execution
 The application area of the project directly affects
project execution because the products of the
project are produced during execution

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  Project planning and execution are intertwined
and inseparable activities
 Those who will do the work should help to plan the
work
 Project managers must solicit input from the team
to develop realistic plans

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  Project managers must lead by example to
demonstrate the importance of creating and then
following good project plans
 Organizational culture can help project execution by
◦ providing guidelines and templates
◦ tracking performance based on plans
 Project managers may still need to break the rules
to meet project goals, and senior managers must
support those actions

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Management, Eighth Edition Copyright 2016 34
  2015 PMI report found that only 12 percent of
organizations were considered to be high
performers
 Percentage remained unchanged in past few
years
 Organizations must make major cultural changes
to improve

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  It is often helpful for IT project managers to have
prior technical experience
 On small projects, the project manager may be
required to perform some of the technical work or
mentor team members to complete the projects
 On large projects, the project manager must
understand the business and application area of
the project

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  Expert judgment: Experts can help project managers and
their teams make many decisions related to project
execution
 Meetings: Meetings allow people to develop relationships,
pick up on important body language or tone of voice, and
have a dialogue to help resolve problems.
 Project management information systems: There are
hundreds of project management software products
available on the market today, and many organizations are
moving toward powerful enterprise project management
systems that are accessible via the Internet

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  Changes are inevitable on most projects, so it’s
important to develop and follow a process to
monitor and control changes
 Monitoring project work includes collecting,
measuring, and disseminating performance
information
 A baseline is the approved project management
plan plus approved changes

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  Three main objectives are:
◦ Influencing the factors that create changes to
ensure that changes are beneficial
◦ Determining that a change has occurred
◦ Managing actual changes as they occur

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  Former view: The project team should strive to do
exactly what was planned on time and within
budget
 Problem: Stakeholders rarely agreed up-front on
the project scope, and time and cost estimates
were inaccurate
 Modern view: Project management is a process of
constant communication and negotiation
 Solution: Changes are often beneficial, and the
project team should plan for them

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  A change control system is a formal, documented
process that describes when and how official
project documents and work may be changed
 Describes who is authorized to make changes and
how to make them

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  A change control board is a formal group of
people responsible for approving or rejecting
changes on a project
 CCBs provide guidelines for preparing change
requests, evaluate change requests, and manage
the implementation of approved changes
 Includes stakeholders from the entire organization

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  Some CCBs only meet occasionally, so it may
take too long for changes to occur
 Some organizations have policies in place for
time-sensitive changes
◦ “48-hour policy” allows project team members to make
decisions, then they have 48 hours to reverse the
decision pending senior management approval
◦ Delegate changes to the lowest level possible, but keep
everyone informed of changes

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  To close a project or phase, you must finalize all
activities and transfer the completed or cancelled
work to the appropriate people
 Main outputs include
◦ Final product, service, or result transition
◦ Organizational process asset updates

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  Several types of software can be used to assist in
project integration management
◦ Documents can be created with word processing software
◦ Presentations are created with presentation software
◦ Tracking can be done with spreadsheets or databases
◦ Communication software can facilitate communications
◦ Project management software can pull everything together
and show detailed and summarized information

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 Source: www.projectmanager.com
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  Project integration management involves
coordinating all of the other knowledge areas
throughout a project’s life cycle
 Main processes include
◦ Develop the project charter
◦ Develop the project management plan
◦ Direct and manage project execution
◦ Monitor and control project work
◦ Perform integrated change control
◦ Close the project or phase

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  Question - 1
You are a project manager of a company and you have been assigned
to take over managing a project that should have been 60 percent
complete according to the schedule. After evaluation, you discover
that the project is running far behind schedule, and that the project
will probably take double the time originally estimated by the previous
project manager. However, the sponsor has been told that the project
is on schedule. What is the BEST course of action you will take?
1.Add new resource to the project and complete the project on schedule.
2.Show your evaluation to sponsor.
3.Ask your senior manager to deal with this.
4.Turn the project back to the previous project manager.
2 is the correct answer.
You can't turn the project back to the previous project manager
because he or she may be busy with other project. The best option is
to show your evaluation to sponsor.

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  Question - 2
You are a project manager of a company and you are assigned to a
project that has already been decided to out source. As a project
manager, you need to organize a formal bid process and select the
vendor for this project. Your senior management is asking you to
select a vendor which has good relation with your senior
management. What is the BEST course of action for you?
1.Follow the formal bid process, and show the senior management about
why the favored vendor is or is not the best choice.
2.Report to legal department of your company.
3.Report to your Manager about this.
4.Get a written permission from your senior management to bypass the
formal bid process.
1 is the correct answer.
The best option is to follow the formal bid process, and show the
senior management about why the favored vendor is or is not the
best choice.

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  Question - 3
Which of the following project management process gets MOST of a
project's budget expended?
1.Project Executing
2.Project Planning
3.Project Closing
4.Project Monitoring

1 is the correct answer.

Most of the resources are involved in the project executing process,
therefore most of a project's budget are expended on this process.

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  Question - 4
Which of the following document can be used to guide all the work in
both project executing and project monitoring and controlling phase
of a project?
1.Project Management Plan
2.Project Risk Plan
3.Project QA Plan
4.Project Charter

1 is the correct answer.

Project Management plan can be used to guide all the work in both
project executing and project monitoring and controlling phase of a
project.

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  Question - 5
You are a project manager of a company and you are assigned to a
project that has already decided to be outsourced. As a project manager,
you need to organize a formal bid process and select the vendor for this
project. You own stock in one of the vendor companies who also
participated in the bidding process. What is the BEST course of action
for you?
1.Get the vendor company selected for the project.
2.Keep the information to yourself.
3.Tell your manager and remove yourself from the vendor selection committee.
4. Ask other members of the selection committee to select your vendor
company.
3 is the correct answer.
The best option is to tell your manager and remove yourself from the
vendor selection committee.

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  Question - 6
The 2 years project has 200 work packages and a $20,000 budget. After
one year, 100 work packages are completed and $10,000 has been spent.
Which of the following is TRUE?
1.The project need 50 work package to be completed in 6 months.
2.Not enough information available.
3.The project need 50 work package to be completed in 3 months.
4.The project is on schedule and on budget.

2 is the correct answer.

There is Not enough information available about the project. What
was planned? Is the work packages are same?

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  Question - 7
Some of your team members want to work on a flexible schedule and
others want all team members should reach on fixed time. What should
you do?
1. Allow them for flexible time schedules.
2. Allow them for fixed time schedules.
3. Arrange a meeting and allow them to decide.
4. Ask your senior management to decide.

3 is the correct answer.

The best option is to arrange a meeting and allow them to decide.

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