Project Management IT Reprint

PROJECT MANAGEMENT (IT)
(FOR PRIVATE CIRCULATION ONLY)

2022
PROGRAMME COORDINATOR
Prof. Ankita Mendiratta
COURSE DESIGN AND REVIEW COMMITTEE

Dr. Shabana Inamdar Dr. Manisha Kumari
Ms. Kausar Biyabani Dr. Manisha Chopade
Mr. Lalit Kathpalia Mr. Atul Kahate
COURSE WRITER
Mr. Yogesh Ghalsasi
EDITOR
Mr. Yogesh Bhosle
Published by Symbiosis Centre for Distance Learning (SCDL), Pune

July, 2011 (Revision 04, 2022)
Copyright © 2022 Symbiosis Open Education Society

All rights reserved. No part of this book may be reproduced, transmitted or utilised in any form or by any
means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval
system without written permission from the publisher.
Acknowledgement
Every attempt has been made to trace the copyright holders of materials reproduced in this book. Should any
infringement have occurred, SCDL apologises for the same and will be pleased to make necessary corrections
in future editions of this book.
PREFACE
Project Management was practiced in Civil Engineering branch since long and was thought suitable
to software industry also. Software projects had been showing disappointing statistics of failure, so it
became very important to manage the software projects in a disciplined way to make them successful.
So learning the software project management skills is a must for every software practitioner - whether
a team member or a leader.
This SLM introduces the discipline of software project management and its practices in detail.
Although the success of the project greatly depends on the individuals skills to handle the project and
the team, knowledge of the processes described in this SLM will certainly help the practitioners to
handle the projects successfully.
The SLM starts with the introduction and takes the learners through the various processes and
ultimately discusses the current trends. Appropriate examples are used, wherever applicable, to
reinforce the theoretical concepts. The SLM also includes the samples of some documents used in
practical software project management. Every unit includes self-assessment questions and activities,
which give ample opportunities to the learners to check their progress. The language is kept as self-
explanatory as possible to help a distance learner.
Suggestions and feedback from the readers on the contents of the SLM are welcome.
Yogesh Ghalsasi
iii
ABOUT THE AUTHOR
Mr. Yogesh Ghalsasi has almost two decades of rich experience in software development. He started
his career with academics, but he realised that mere theoretical knowledge is inadequate to train
Within this tenure, he played various roles from programmer, systems analyst, implementation lead,
support lead, project lead to Project Manager and has hands-on experience in Microsoft and Oracle
technology. He has led a textile company as IT Head for 10 years.
He has handled various projects, small to large. The client names include Parle Products, MicroInk,
Coziplast, BAPL, SEKL etc.
technology. He displays a blend of industrial, IT and educational experience.

He has delivered lectures in engineering college. Presently he is working as a consultant in Enterprise
Resource Planning (ERP) and Software Project Management (SPM). He strongly believes that one
can learn anything that someone else can and with this philosophy, he himself has learnt many things
such as music, yoga and spirituality. He is working with various age groups to share the experience
and learn from others.
iv
CONTENTS
Unit No. TITLE Page No.

1 Software Project Management Concepts 1 - 30
1.1 Introduction
1.2 Economic Impact of Software Project Management
1.3 Project Management Challenges in Modern Software Industry
1.3.1 Managing Global Projects
1.4 Software Project
1.5 Project Management
1.6 Software Project Management
1.7 Organisational Structure
1.8 Project Life Cycle and Phases
1.10 Knowledge and Skills of a Project Manager

Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading
2 Project Initiating 31 - 52
2.1 Introduction
2.2 Project Integration Management
2.3 Project Initiation
2.4 Project Charter Development
2.5 Use of Tools
2.6 Develop Preliminary Scope Statement
2.7 Software Project Management Plan
2.8 Project Execution, Monitor and Control
Summary
Key Words
Suggested Reading
v
3 Managing Scope of the Project 53 - 74
3.1 Introduction
3.2 Scope: Meaning
3.3 Software Scope Management Plan
3.5 Work Breakdown Structure (WBS)

3.6 Controlling the Scope
Summary
Key Words
Suggested Reading
4 Estimating and Scheduling 75 - 98
4.1 Introduction
4.2 Software Measurement
4.3 Software Estimation
4.4 Software Project Scheduling
Summary
Key Words
Suggested Reading
5 Managing Cost 99 - 122
5.1 Introduction
5.2 Cost Management Overview
5.2.1 Basics of Costing
5.2.2 What is Project Cost Management
5.2.3 Types of Costing
5.2.4 Estimating Cost
5.3 Preparing Budget of the Project
5.4 Controlling Cost of Software Projects
5.4.1 Cost Controlling Techniques
Summary
Key Words
Suggested Reading
vi
6 Managing Quality 123 - 152
6.1 Introduction
6.2 What is Quality
6.2.1 Quality Principles
6.2.2 Software Quality Factors
6.3 Quality Planning
6.4 Quality Assurance and Quality Control
6.4.1 Quality Assurance
6.4.2 Quality Control (QC)
6.4.3 Difference between Quality Assurance and Quality Control
6.5 Cost of Quality
6.6 Quality Management Tools
6.7 Industry Quality Standards/ Models
Summary
Key Words
Suggested Reading
7 Managing Team 153 – 176
7.1 Introduction
7.2 Team
7.2.1 Pillars of Team
7.3 Building Team
7.4 Motivating Team
7.4.1 Maslow’s Hierarchy of Needs
7.4.2 Herzberg’s Motivation-Hygiene Theory
7.4.3 Douglas McGregor’s Theory of Motivation
7.4.4 The Equity Theory
7.5 Project Human Resource Planning
7.6 Team Structure
Summary
Key Words
Suggested Reading
vii
8 Managing Communication 177 – 204
8.1 Introduction
8.2 Importance of Effective Communication
8.3 Meaning of Communication
8.4 Process of Communication
8.5 Components of Communication
8.6 Barriers to Communication
8.7 Types of Communication
8.7.1 Types of Communication Skills
8.7.2 Different Types of Communication
8.8 Communication Planning
8.9 Managing Meetings
8.9.1 Types of Meetings
8.9.2 Tips for conducting Effective Meetings
8.10 Complementary Skills for Effective Communication
Summary
Key Words
Suggested Reading
9 Managing Risks 205 – 230
9.1 Introduction
9.2 Meaning of Risk
9.3 Types of Risks
9.4 Software Project Risks
9.5 Risk Management
9.6 Risk Management Models
9.6.1 Project Management Institute’s Risk Model
9.6.2 Barry Boehm’s Risk Management Model
9.6.3 Software Engineering Institute’s Risk Management Model
9.7 Steps in Risk Management Process
9.7.2 Risk Analysis

9.7.3 Risk Resolution
9.7.4 Risk Response Planning
Summary
Key Words
Suggested Reading
viii
10 231 – 246
10.1 Introduction
10.2 Multiple Versions of Software
10.3 Traceability and Impact Analysis
10.4 Capability to build any Past Version
10.5 SCM Concepts
10.6 Role of Librarian and Automated Tools
Summary
Key Words
Suggested Reading
11 Update yourself: Current Trends 247 – 268
11.1 Introduction
11.2 Global Nature of Software Projects with respect to India
11.3 Tools used in managing Global Projects
11.4 Challenges in managing Global Projects
11.5 Challenges due to New Software Development Models
Summary
ix
x
Software Project Management Concepts
UNIT
1
Structure:
1.1 Introduction
1.2 Economic Impact of Software Project Management
1.3 Project Management Challenges in Modern Software Industry
1.4 Software Project
1.5 Project Management
1.6 Software Project Management
1.7 Organisational Structure
1.8 Project Life Cycle and Phases
1.10 Knowledge and Skills of a Project Manager

Summary
Key Words
Suggested Reading
Software Project Management Concepts 1

Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
Understand the importance of project management
----------------------
Describe software project management
---------------------- Explain the terms used in software project management
---------------------- Discuss the organisation structure
---------------------- Recognise essential skills of a project manager

Elaborate on the importance of stakeholders
----------------------
Differentiate a project from ongoing operation
----------------------
---------------------- 1.1 INTRODUCTION

----------------------
Software project management is the art and science of planning and leading
---------------------- software projects. It is a sub-discipline of project management, in which software
projects are planned, implemented, monitored and controlled. Software are
---------------------- useful and often necessary, but the true art in software project management is
applying the correct method and then using tools to support the method. Without
----------------------
a method, tools are worthless.
---------------------- Recently, the software development processes got stabilised and matured to
---------------------- has become possible.
---------------------- In this unit, we will be exploring various concepts of software project
management and their importance. Software engineering talks about the
---------------------- software development process such as Requirement Elicitation, design, coding
---------------------- and testing, while prime focus of project management is to manage the software
---------------------- choosing appropriate process model, allocating resources, estimating the time
and cost and continuous monitoring of process. Project Management is critical
---------------------- and is treated as a supporting discipline in software development. Project
---------------------- management spans over all the processes in software engineering.
Technical knowledge, e.g. designing and coding, is essential but not enough
----------------------
the planning, controlling, performing and coordination of the resources in an
----------------------
---------------------- and as per expectation of the customer.

We will discuss the elements of software project environment that will make
----------------------
---------------------- We will also discuss why projects are important and what various challenges in
managing the projects in the modern software industry are. This will give insight
---------------------- into these challenges, the ways to tackle them in advance and the essential
2 Project Management (IT)

skills of an effective project manager so that one can practice and enhance Notes
them. Software project management is a subject of practice and application of
knowledge and skills.
1.2 ECONOMIC IMPACT OF SOFTWARE PROJECT

MANAGEMENT
We are living in information age. Almost everything around us is computerised.
Information Technology advancement is accelerating our economy. The IT
literacy, number of information consumers and use of software is growing
rapidly. Statistics show that various countries are annually spending billions of
dollars in thousands of software projects. Unfortunately, there is a gap between
demand and supply. Compared to the huge investments in software projects, the
rate of project success is very low.
We are losing thousands of dollars due to project failures and cost overruns.
Most of the project failures are attributed to weak project management and
hence project management has a considerable impact on economy.
Taking this as a challenge, various innovative project management methodologies
are being practiced and they also claim their success rate. Even lean principles
of manufacturing are being implemented in software project management.
Due to high demand of software worldwide and scarcity of trained software
professionals, project management will hold a phenomenal economic impact
on knowledge-based economy.
If we agree with the high rate of project failures due to weak project management
and hence high demand of competent software project management
professionals, it is imperative for them to deliver software projects in time, with
high quality and within a given budget. We can strengthen our economy by
continuous delivery of successful projects. It is essential that we should polish
the skills and knowledge and integrate our experience in handling global as
well as domestic software projects.
Check your Progress 1
State True or False.

1. Most software projects fail due to lack of cash.
2. Project management has a considerable impact on economy.
Activity 1

Notes 1.3 PROJECT MANAGEMENT CHALLENGES IN
MODERN SOFTWARE INDUSTRY
----------------------
----------------------
types of challenges, technical and non- technical. A project manager has to cope
---------------------- with both types of challenges.
---------------------- Technical Challenges: Every project is different and needs to be managed

differently. The methodologies used in software development, expectations of
---------------------- stakeholders, the type of project (Product/Service), ever-changing technologies
introduce a lot of complexity. Different compliances exist in different parts
---------------------- of the globe, which needs to be considered in executing the projects in such
---------------------- environments.
Non-Technical Challenges: In today’s world, projects are managed in a global
---------------------- environment. Managing and motivating techies from different countries is
----------------------
projects. Most of the non-technical challenges are directly related to project
---------------------- management and have considerable impact on the project cost, scope, quality
and overall performance.
----------------------
----------------------
Due to advancement in internet technology, large projects are being managed
---------------------- globally where the software project team and other stakeholders of the project are
dispersed across the globe. The native language, culture, time differences, local
---------------------- government rules and policies, business and process priorities and preference
are different among countries because of socio-economic differences. These
----------------------
factors add complexity in managing projects.
---------------------- Measurement and Estimation
---------------------- Unlike other commodities, measurement of software is not an easy task.
Quantifying the amount of work done or to be done is a challenging task. Though
---------------------- various estimation techniques are available, their usage and adaptability is
---------------------- considerably less in software industry. Correct estimation needs past estimation
and project data, experience and judgement. Still, adjustment to the adapted
---------------------- estimation standard is inevitable.
---------------------- Another challenge is cost estimation .As Software is an intellectual commodity,

cost estimation is not a straightforward task.
----------------------
With rapid spending on IT project, top managements have become more cautious
---------------------- and they want to know the value of every single penny they are investing in an
IT project. Like other projects, customers are asking for return on investment.
---------------------- In spite of having various tools available to measure the return on investment
and payback period, it is still a challenge to measure and present return on
----------------------
investment (ROI) satisfactorily to the customers.
----------------------
----------------------

HR Management Notes
People in software industry are knowledge workers. Due to high education,
global exposure, highest pay packages and global demand, the attrition rate is
very high as compared to other industries. Hiring and retaining good people
becomes a challenging task, therefore.
needs of business such as knowledge management, business intelligence,

information security etc. are posing challenges in recruiting right people with
the right skills.
Match the following.

i. Technical challenges a. Knowledge workers
ii. Non technical challenges b. Native language and culture
iii. Managing global projects c. Challenges related to project
management
iv. HR Management d. Estimation tools
e. Technological changes
Activity 2
1. What do you think are the technical challenges in software project

management apart from the ones discussed above?
2. Find out the non-technical challenges in software project
management other than discussed above.
3. List the factors that affect the global management software.
1.4 SOFTWARE PROJECT

A ‘project’ is a sequence of unique, complex and connected activities having
Since a project is a planned undertaking, being planned assumes that to a large

extent we can determine how we are going to carry out a task before we start.
The characteristics that distinguish projects can be summarised as follows:
1. Non-routine tasks are involved.
2. Planning is required.
3.

Notes 4. The project has a pre-determined time span.
5. Work involves several specialisations.
----------------------
6. Work is carried out in several phases.
----------------------
7. The resources that are available for use on the project are constrained.
---------------------- 8. The project is large or complex.
---------------------- 9. Various Teams needs to be formed.
---------------------- 10. Short term goals has to be set.
A project can create the following:
----------------------
A product that can be either component of another item or an end item in
---------------------- itself
---------------------- A capacity to perform service
---------------------- A result such as an outcome or document (e.g. a research project that

develops knowledge that can be used to determine whether a trend is
---------------------- present or a new process)
---------------------- Before understanding project and its management, we must know the
organisational environment and the activities performed differently in different
----------------------
the major activities they perform such as product development organisation,
----------------------
manufacturing organisation and service organisation. However, you may
---------------------- also see combination of all the three categories in a single organisation. This
---------------------- perform, for example, product development organisations are into development
of new products or new versions of products, which do not exist before, while
----------------------
manufacturing organisations are engaged into production of the same products.
----------------------
----------------------
them.
---------------------- Product Vs. Services
---------------------- Products are commodities, which the customer purchases with total ownership
---------------------- Windows is a product we purchase to run the computer system. In services,

---------------------- a customer pays value for the service he is getting from the service provider.
Ownership of the product and infrastructure remains with service provider, e.g.
---------------------- internet service, telephone service, software as a service.
---------------------- A software product may fall into any one of the following categories:
1. System software
----------------------
2. Application software
----------------------
3. Software development tools
---------------------- 4. Software solution

5. Software: Generic product for general requirements Notes
6. Software tools: Automation, printing, processing, report writing, screen
generation etc.
Project Vs. Production
Projects are carried out to develop unique product, service of result. However,
the production activities are carried out to produce large number of products
so that more customers can avail them. Project is a one-time activity for single
simultaneously or at different times and once the product is developed, that

project is closed and the next may start. While production is an ongoing activity,
every bug in the project as per customer’s satisfaction. For example, installation
are ongoing operations.

A project is a product in making whereas a product is a project that has been
completed successfully. Example: When a new software is under development,
and running successfully, it is called a product.
Software project is a time bound undertaking, which delivers unique product

or service. For example, development of banking software, development of
insurance software etc.
Characteristics of Software Project
There are three important characteristics of project with the help of which you
can easily identify whether the given undertaking is a project or an ongoing
operation.
i. Uniqueness: The activities in a project must be unique. Each software
product is unique in some aspect such as features, services, processes or
environment, for example, development of a new compiler for C language.
In this example, the compiler of C language already exists. That does mean
that new version of C compiler is production or ongoing activity because
the internal logical structure of the new version, the output generated by
new version, even the development team may be different.
Another popular example can be development of a new website. Although
website is developed using existing languages and web technologies
and the development team knows how to develop a website, every new
website development is treated as a new project since the features and
customers are different for different websites.
Similarly, same ERP products implemented in different companies are
treated as a separate project since the business processes, rules and
policies and the end user are different.

Notes On the contrary, if you install MS Windows or any Antivirus software in
the same company on different computers or reinstall the software, it may
---------------------- not be considered as a project because the operation is repeated and not
unique.
----------------------
ii. Temporary and Time bound: Projects are time bound, means they must
----------------------
----------------------
----------------------
closed and the user can use the product for longer time unless and until
---------------------- the product and services are matching with business goals. For example,
----------------------
projects, but you can use these products for longer time and there is no
---------------------- time limit on its use.
iii. Progressive elaboration: All software projects are progressively
----------------------
elaborated. Progressive elaboration means more details are available
---------------------- when we progress further. This is a very important characteristic & needs
to be under stood properly. Due to unique nature of the product, we do
---------------------- know every minute detail such as exact requirements of customers, the
way the team can approach for a solution. For example, product training
----------------------
is generally provided to end user &if the end users are dispersed across
---------------------- the globe and you need to make a training plan, you cannot just proceed
on the training requirement.
----------------------
Initially, you are unaware of the user characteristics such as expertise,
---------------------- number of users, user location, training language etc. In such situations,
instead of investing more time in detailing, you can start with the initial
---------------------- phases and eventually get a clearer idea about the user characteristics
when stakeholder analysis or functional analysis begins. In most of the
----------------------
projects, there will be progressive elaboration of varying degrees that you
---------------------- will have to face.
---------------------- We are studying these characteristics because it has considerable impact on the
overall project management processes. If projects are not unique, then there is
---------------------- no need of detailed planning since you have done a similar project or if project
---------------------- these terms are simple to understand, sometimes they create confusion. For
---------------------- example, progressive elaboration is confused with scope creep. If you have not
properly understood the minute difference, then the project may get a different
---------------------- direction and land in a crisis thereby.
---------------------- Scope creep means addition in requirements while progressive elaboration

means detailing of the given scope as you proceed. For example, a customer
----------------------
---------------------- hand. This can be considered as progressive elaboration, while, if the customer
---------------------- wants to add new report to the initial scope, it has a considerable impact on cost

and schedule. Hence, it is treated as scope creep and not progressive elaboration. Notes
Problems with software projects
o Poor estimates and plans
o Lack of quality standards and measures
o Lack of guidance about making organisational decisions
o Lack of techniques to make progress visible
o
o Incorrect success criteria
o Management ignorance of IT
o Narrow scope of technical expertise
o Lack of quality control
Software Project Vs other types of Project
i. Invisibility: When a physical artifact such as a bridge or road is being
constructed the progress being made can actually be seen. With software,
progress is not immediately visible.
ii. Complexity: Software products contain more complexity than other
engineered artifacts.
iii. Conformity: The ‘traditional’ engineer is usually working with physical
systems and physical materials like cement and steel. These physical
systems can have some complexity, but are governed by physical laws that
are consistent. Software developers have to conform to the requirements
of human clients. Organisations may have lack of collective or common
approach and / or in-effective decision making can lead to a chaotic
situation that developers have to cater for.
1.5 PROJECT MANAGEMENT

Project management is the application of knowledge, skills, tools and techniques
to project activities to meet project requirements. Project management is
accomplished through application and integration of the project management
processes of initiating, planning, executing, monitoring, controlling and closing.
Managing a project includes:
Dealing with the clients.
Understanding their requirements according to each one’s perspective.
Establishing clear and achievable objectives
Balancing the competing demands for quality, scope, time and cost
and expectations of the various stakeholders

Notes High quality project delivers the required product, service or result within
scope, on time and within budget. The relationship among these factors is such
---------------------- that if any one of the three factors changes, at least one other factor is likely to
be affected.
----------------------
The key to successful project management is management of nine knowledge
---------------------- functional areas, which are discussed below.
----------------------
will be the successful conclusion of the project.
----------------------
2. Time: Time management means estimating the time for project completion
----------------------
the project using activity time and monitoring the activity progress to
---------------------- complete the project on time, as agreed with the customer.
---------------------- 3. Cost: Cost management means estimating the effort and resources
required, costing them for budgeting and controlling them throughout the
----------------------
---------------------- 4. Quality: Quality management means producing the quality of all

deliverables as expected by customers and stakeholders.
----------------------
5. Human Resource: HR Management means managing people and their
---------------------- skills effectively as estimated to deliver quality projects within cost and
time.
----------------------
6. Communications: Communication Management means capturing all
---------------------- aspects of the data on the project and its activities, processing the data
and distributing it to the people concerned so as to respond effectively to
----------------------
meet the commitments.
----------------------
monitoring and mitigation plans to control the risk.
----------------------
---------------------- requirements, such as development and engineering services, hardware

and software as a support to the project.
----------------------
9. Integration: Integration management means integrating various tasks
---------------------- in scope to produce project deliverables as per the expectations of the
---------------------- customer within cost and time budgets.
---------------------- Check your Progress 3

----------------------
State True of False.
----------------------
---------------------- 2. Quality control has no role in software project management.

----------------------
----------------------

Notes
Activity 3
2. List any 5 categories of software.

3. List any 5 knowledge functional areas for software project
management.
1.6 SOFTWARE PROJECT MANAGEMENT

Software project management (SPM) is a supporting discipline in software
development projects. Software development is an intensely people- and
process-driven activity. Hence, software project management deals with the
processes, viz. software engineering process models such as waterfall, spiral,

component based etc., which are highly technical in nature and management
processes such as planning, team management, communication, risk, out
sourcing, requirement management, estimation etc. Technical and management
processes are integrated with each other.
Software project management deals with lots of managerial activities such as
appropriate election of above-mentioned process models, selection of team and
planning & monitoring. As each project is unique in its gravity of complexity, it
is the sole discretion of the project management team to decide what processes
and methodologies to choose. Project management is the sole responsibility of
the project manager and he is accountable for success or failure of the project.
Previously, software development was considered a highly technical activity that
deals with software engineering processes such as design, coding and testing
but now, other disciplines such as stakeholder management, communication
management and estimations have become equally important. Project
project management methodologies are available, which provide a framework.

Two popular methodologies are Project Management Methodology developed
by PMI (Project Management Institute USA) and Prince 2 Methodology.
Software project management is a combination of general management
knowledge and skills and the unique processes that are applicable to software
is a human-driven activity, more emphasis is placed on management of human

resources.
Software Project Management is a method and set of techniques based on the
accepted principles of management used for planning, estimating and controlling
work activities to reach a desired end result, on time, within the budget.
Software project management methodologies ensure that the project has a clear

Notes both the project and the product are controlled, Software project management
is hard work. It requires dedication and commitment to a goal.
----------------------
Effective SPM practices focus on four factors:
---------------------- 1. People
---------------------- 2. Product
---------------------- 3. Process
4. Project
----------------------
Processes and Software Project Management
----------------------
A software project has two main activities: engineering and project management.
---------------------- The engineering dimension deals with building system and focuses on issues
such as how to design, test, code and so on. Project management deals with
---------------------- properly planning and controlling the engineering activities to meet project
goals for cost, schedule and quality.
----------------------
If a project is small, it can be executed informally. In case of large projects, each
---------------------- engineering task must be done carefully by following well-tried methodologies
and the work products must be properly documented so that others can review
----------------------
them. The task in the project must be carefully planned and allocated to project
---------------------- personnel and then tracked as the project executes. Technically, a process for a
task comprises a sequence of steps that should be followed to execute the task.
----------------------
Processes represent collective knowledge. Using them increases the
---------------------- chances of success.
---------------------- A process may have some extra steps, but one will not always know
beforehand which ones are not needed and which are a must.
---------------------- Without processes, you cannot predict much about the outcome of your
---------------------- project.
Processes lower the anxiety level. The checklist inevitably covers 80
----------------------
percent of what needs to be done. Hence, the task reduces to working out
---------------------- the remaining 20 percent.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
Multiple Choice Multiple Response

1. Software projects have 2 main activities:
ii. Project management

iii. Engineering
i. Pressure
ii. People
iii. Product
iv. Project
v. Process
Activity 4
1. Give examples of various resources used in a project development.

2. What are the methodologies used for SPM?
1.7 ORGANISATIONAL STRUCTURE
level, communication and reporting system, staff hierarchy etc. Organisation
important step you must take before accepting the project is to understand the
organisation structure and culture of your own organisation as well as your
customer’s organisation.
Organisations are unique in their working styles, culture, hierarchies, hire &
of management of human resources and their communication and reporting

requirement. While doing communication planning and HR planning, you need
to know the characteristics of the organisation and accordingly, you can plan a
team and reporting structure.

Notes
President
----------------------
----------------------
---------------------- Research and

Engineering Manufacturing
Development
----------------------
If you know your stakeholders, internal as well as external, you can manage
---------------------- the project effectively since you would know whom to communicate and how
to communicate. You must therefore understand various organisation types and
---------------------- structures.
---------------------- Organisation Types
---------------------- Broadly, software industry is divided into two categories, product development
companies and service provider companies. Product companies develop
---------------------- solutions for different domains and business entities while service companies
provide services such as simple maintenance of third party software or knowledge
----------------------
outsourcing or data management services. One more category in relation to
----------------------
where the organisation develops software for their internal requirement and
---------------------- they do not sell it outside.
---------------------- Projectised Organisations
Most of the IT companies are project-based organisations. Projectised
----------------------
organisations are basically engaged in development of new software product or
----------------------
a project, the organisation structure is made suitable to carry out project work.
---------------------- Unlike other industries, there is no ongoing activity performed. In projectised
organisation, the project manager is solely responsible for the project and is the
----------------------
highest level of authority in the organisation. Various other departments such as
---------------------- Accounts and Human Resources report to the project manager.
---------------------- The project manager is usually responsible for managing one project and if
the organisation is performing many projects, they can have separate project
---------------------- managers for each project. Depending on the size of the organisation, there can
be a single team responsible for carrying out various tasks such as coding, testing
----------------------
---------------------- as Quality and Testing Team, Design Team, Implementation and Support Team
etc. Team structure generally includes Team Leaders, Analyst, Consultants,
---------------------- Subject Matter Experts, Programmers etc. Teams are not permanent and exist
till the project exists. Once the project is over, the team members are released.
----------------------
Project Managers in these types of organisations are responsible for planning,
---------------------- organising and motivation & controlling of the project team. Team leaders
and project leaders are responsible for day-to-day technical issues and team
---------------------- handling. In projectised organisation, the project manager decides the structure
---------------------- of the team. Scope, time and budget are the main constraints for this type of

organisation. Notes
Functional Organisation
The main focus of the functional organisation is to produce or serve something
related to their domain. You may know that most of the organisations such
as Automobile, Electronics, Engineering, Insurance, Healthcare etc. are
functional organisations. These organisations are generally engaged in ongoing
and repetitive tasks. Though they are engaged in production activities due to
various business needs, market demands, technology advancement, they initiate
various projects in their organisation, e.g. designing of new car, bike etc. Few
of the functional organisations have their own software development team
and develop new software for their functional departments such as customer
relationship management (CRM), production and planning.
In functional organisations, usually the role of the project manager is played by
the IT manager. As compared to a projectised organisation, an IT manager in a
functional organisation has limited authority. The team is small as compared to
the core IT organisations. If a new project is not there, then the team is engaged
in software maintenance and support activities. Some organisations prefer to
purchase customised software while others prefer to develop in-house software
as per the requirement of the organisation. The main constraints of functional
software. The IT manager has to manage the given project with available staff
in IT department. There is limit on staff hiring because additional resources may
remain idle till next project. Instead of adding resources, such organisations
may think of outsourcing few development activities.
Matrix Organisation
Matrix organisations are a combination of functional and projectised
organisations. It maintains the hierarchical structure of functional organisation
and techniques of good project management. Employees in this type of
organisations report to both functional as well as project managers. Depending
strong matrix, which is similar to projectised organisation and weak matrix,

which is similar to functional organisation and balance matrix.

1.
2. The main focus of the functional organisation is to produce or serve
something related to their domain.

Notes
Activity 5
----------------------
---------------------- 1. Identify and access the organisation structure of your organisation.

(If you are not employed, discuss the same with a friend who is
---------------------- employed.)
---------------------- 2. What organisation structure do you think is appropriate for the
following:
----------------------
a. Manufacturing Industry
---------------------- b. IT/Software Development Company
---------------------- c. IT-enabled companies such BPO/KPO
---------------------- d. Construction Industry
e. Manufacturing industry involved in new product development
----------------------
----------------------
1.8 PROJECT LIFE CYCLE AND PHASES
----------------------
A project life cycle is the series of phases that a project passes through from
---------------------- its initiation to its closure. The phases are generally sequential, and their
names and numbers are determined by the management and control needs
----------------------
of the organisation or organisations involved in the project, the nature of the
---------------------- project itself and its area of application. The phases can be broken down by
----------------------
generally time bound, with a start and ending or control point. A life cycle can
----------------------
be documented within a methodology. The project life cycle can be determined
---------------------- or shaped by the unique aspects of the organisation, industry, or technology
employed.
----------------------
---------------------- and activities that take place in between will vary widely with the project. The
life cycle provides the basic framework for managing the project, regardless of
----------------------
---------------------- Each project has a certain life, which means it has a certain beginning and as it
achieves its objective, life of a project reaches an end. The project exists till the
---------------------- release of the product or service. Once the product is released, the project will
---------------------- be closed. During the life of the project, it goes through various developmental
stages called as project phases. Collection of the phases is together called project
---------------------- life cycle, e.g. initiation phase, requirement phase, design phase, coding phase,
testing phase. These are the phases of system development life cycle. Typical
---------------------- project management phases are initiation, intermediate (planning, execution
---------------------- and control) and closure. However, the project manager decides the phases of
project, depending upon the complexity and manageability of the project.
----------------------

Notes
Initiation
Intermediate
Closure
Fig. 1.1: Typical Project Management Phases

Phase is nothing but a collection of logically related activities. For example,
development, project selection etc. These phases are usually sequential,

meaning if the previous phase is over, the next phase may start. The decision
to transit from one phase to another is usually taken at the end of each phase.
Project phasing helps in managing a large project into smaller logically related
activities.
The project manager decides the phases of the project life cycle. He decides what
is to be delivered in each phase, who is involved, how the control is established
the project, the project manager decides the life cycle model of the project.
There are various software development life cycle models available such as
Rapid Application Development Model, Incremental Model, Waterfall Model
and Spiral Model. The phases are also dependent on software development life
cycle model and project management methodology, which you are going to
adopt.
At the end of each phase, deliverables are reviewed and technical outputs are
passed on to the next phase. Phase review also determines whether the project
can transit into the next phase or terminate there itself.

1. Logically related activities are together called a phase.
2. Collection of various phases is together called project phase.
3. Phases can be broken down by partial objectives.
1.9 STAKEHOLDERS AND THEIR INFLUENCE ON

THE PROJECT
All human resources are called stakeholders of the project. Stakeholders can
be individuals or organisations who participate in the project. Stakeholders can

Notes be internal or external. Internal stakeholders are usually internal staff of the
performing organisation, such as project manager, team lead, programmers,
---------------------- analysts etc., while external stakeholders comprise of project sponsors,
customers, end users etc. Project management must take care of both of these
---------------------- stakeholders.
----------------------
positively or negatively. Different stakeholders may have different views
----------------------
towards the same project, for example, the top management may decide to
---------------------- implement software in their factory to speed up the process while the end users
may believe that the new software shall degrade their importance. These are
----------------------
---------------------- Stakeholders are people who have a stake or interest in the project. It is important
---------------------- communication channels with them right from the start. The project leader also
has to be aware that not everybody who is involved with a project has the same
----------------------
motivation and objectives. The end users might, for instance, be concerned
---------------------- about the ease of use of the system while their managers might be interested in
the staff savings that the new system will allow.
----------------------
---------------------- lifecycle. Identifying stakeholders, understanding their relative degree of
---------------------- are critical to the success of the project. Failure to do so can lead to delays,
cost increases, unexpected issues and other negative consequences, including
----------------------
project cancellation. An example is late recognition that the legal department is
----------------------
legal requirements to be met before the project can be completed.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
---------------------- Fig. 1.2: Basic Stakeholders in a Project

----------------------

Let us understand various stakeholders and their roles and responsibilities. Notes
1. Project Sponsors: A project sponsor can be an individual or an
2. Project Manager: The project manager is responsible for the overall

success of the project- an individual who is ultimately responsible for
project delivery. Project managers are responsible for project planning,
organising, monitoring and controlling. They need not be necessarily
technical experts but having technical competency is an added advantage.
3. Team Members: Team members must have trust in one another. These
are actual performers of planned task, for example programmers, testers
etc. They apply their technical skills to deliver the product.
4. Customers:
Customers provide requirements for the project undertaken.
5. End Users: They are actual users of the product delivered by the project.
6. Consultants and Subject Matter Experts: They are individuals who
are expert in handling business issues. They are subject matter experts in
project team.
7. Support Staff: The role of support staff is generally activated after
release of product. They help customers in solving their technical as well
as non-technical queries regarding the installation of the new software.
Fill in the blanks.
negatively or positively.
2. SME stands for _____________________.
3. Team members are _____________of planned task.
_______.
Activity 6
Group the following into internal and external stakeholders:

1. Project manager, customer, team lead, end user, government agency,
consultants
2. Identify the stake holders for School Management Project and also
explain their roles.

Notes 1.10 KNOWLEDGE AND SKILLS OF A PROJECT MANAGER
---------------------- Software project management is the application of knowledge and skills.
Every project manager must possess some of these skills and try to acquire the
----------------------
knowledge in his respective domain. As a main stakeholder, he plays various
---------------------- roles during project execution.
----------------------
Manager
----------------------
----------------------
Mentor Leader
----------------------
----------------------
Project
---------------------- Manager
---------------------- Problem
Coach
Colver
----------------------
----------------------
Coordinator
----------------------
----------------------
Fig. 1.3: Role of a Project Manager
----------------------
Roles of a Project Manager
---------------------- A project manager must possess essential skills so as to be successful in the
project management career. In order to coordinate and complete a project
----------------------
successfully, a project manager assumes the following roles in the various
---------------------- phases of the project.
---------------------- The project manager must rely on people management, good judgements,
interpersonal skills and personal intuition.
----------------------
• Manager
---------------------- This is the main role of the project manager. His prime responsibility includes
---------------------- planning, organising, motivating and controlling. For each of the managerial
activity - planning, organising, motivating - he should have necessary skills in
----------------------
----------------------
followed. PM is also responsible for performance monitoring and status
---------------------- reporting to project sponsors. A project manager should have a great command
and control over the team. He should establish strong self and group discipline.
----------------------
As a manager, his focus should be getting the work done with optimum
---------------------- utilisation of resources. Being a manager, he should conform and comply with

various standards, rules and regulations. He should maintain the integrity and Notes
work ethics in a team.
Leader
The leader’s role is different than the manager’s but they are often confused
with each other. Leaders have the responsibility for part of the project. A
manager’s job is to plan and assign tasks to the people, while leadership deals
detailing of task and want work freedom and empowerment. However, doing so
may be sometimes risky for the project. Here the project manager has to act like
things, which are right for the project. To get the maximum creative work from
his people, he should empower the people without losing control. He builds
continuous rapport and trust with team members since people always follow the
leader they trust. It is essential for a leader to read the trend and understand his
followers. By knowing this, he can motivate and direct his team for achieving
the objectives of the project.
Coach and Mentor
Each project is a new learning activity for a team member. As an experienced
Project Manager, you have to transfer the knowledge to your team members.
Team members always seek guidance and support of their project manager.
Here the project manager acts like a good coach and trainer. He should
continuously understand the knowledge requirements of individuals. As a team
player, he should know what the skills required are and accordingly arrange
formal trainings and workshops or conduct informal training activities. He
must motivate the team to learn and practice new technologies. He should also
provoke group learning.
Problem Solver
During project execution, technical as well as non-technical issues may arise
and need to be attended immediately. Clear understanding of the problem is very
ways and provides solution to the problem. Sometimes people need support
to solve critical problems. In that case, the project manager has to give moral
support to his team. The project manager should not pressurise the team in
approach and needs to remain under control in highly stressful situations.

Coordinator
Project managers spend most of their time in communicating and coordinating
with the stakeholders. As team size increases, number of communication
channels increase, leading to more confusion and chaos. In order to deal with
the project.

Notes the gaps by effective coordination. They will often manage project managers
on very complex or multi-project undertaking. People in a team need proper
---------------------- information from time to time, either written or in oral form. It is the job of the
manager to see that all stakeholders’ information requirements are satisfactorily
----------------------
---------------------- Essentials Skills

---------------------- Successful project managers are a blend of knowledge and skills.
Knowledge is a collection of experiences. If the experiences repeatedly occur,
----------------------
we may formulate them as theory. By practicing and applying knowledge, you
---------------------- can develop the skills. Mere knowledge is not enough. You may read and have
knowledge of swimming but unless and until you throw yourself in water, you
---------------------- cannot swim.
---------------------- Project management is a matter of practice. The knowledge and skills we
---------------------- different projects and you need to handle them creatively and tactfully. Actual
---------------------- skill will help you in managing projects. Let us see the different skills that every
project manager must possess.
---------------------- General Management Skills
----------------------
various project management activities such as planning, organising, controlling,
----------------------
---------------------- accounting, human resource and legal compliance is essential.

Communication
----------------------
Communication is the most common and widely used skill in project management.
---------------------- There are various means of communication. Effective communication ensures
that the message communicated by the sender is properly understood by the
----------------------
message receiver. Communication becomes more complex in large, complex
---------------------- projects where the team is dispersed across the globe. One must understand
the barriers of communication and try to break those barriers. Some of the
---------------------- communication barriers are language, culture, education, gender and hierarchical
level in an organisation.
----------------------
Planning and Organising
----------------------
Planning is deciding the future course of action to achieve the set target.
---------------------- Without planning, you cannot direct and control your team. A plan keeps
you focussed on the target. Plans are always progressively elaborated. Thus
---------------------- planning becomes a continuous and repetitive activity. Planning needs vision
---------------------- and deep understanding of environment, i.e. people and processes. A good
plan is actionable and will be implemented effectively. If our vision is limited,
---------------------- we cannot think much beyond. Thus, vision is a very crucial thing in project
planning. Planning is not an isolated activity. It goes hand in hand with other
---------------------- activities such as organising and controlling.
----------------------

Organising means integrating and coordinating the resources as per the plan. Notes
Two main aspects of organisations are how you organise available human
resources and the documents. Organisation means arranging things in a manner
sense is essential for better organisation. Planning decides what to do while
of information and documents such as reports, memos, quotations and contracts

are generated and you need to organise them properly so that you access the
right information at the right time.
effective manner. People in the team (internal as well as external stakeholders)

generally follow their own instinct and quite often, they disagree with the
project management decisions and opinions. Appropriate application of
If stakeholders do not agree with each other, the project manager can use his
personality and character of the project manager. They follow the leader who
makes an impact on them.
Negotiating is a process of reaching mutual agreement. Negotiation may
happen with groups or individuals inside or outside the organisation. Many
a times, during the project execution, the project manager needs to apply
skills. For example, when the customer adds new requirements, which may
not be in scope, it may affect the schedule and budget. With negotiation skills,
the project manager can fruitfully make the customer agree to pay extra for
additional requirement or with negotiation skills, he can convince the customer
how schedule and budget will be affected by new requirement and make the
customer agree with the existing scope. Sometimes, team members do not
to prepare. With negotiation skills, the project manager can convince his team
about the importance of his decision.
Estimation and Budgeting
Estimation attempts to determine how much money, how much effort, how
based system or product. Effort and cost estimation are challenging activities
in project management. Due to the unique nature of projects and human-
be taken to accomplish the project. Estimation and budgeting is a skill and can
be developed with experience and application of various methods, tools and

Notes Problem Solving Skills
----------------------
project. Problems could be business-related or technology-related or may be
---------------------- related to the management of process. The prime objective of any project is to
give a solution to the business problem. Apart from this problem, there could
---------------------- be problems related to project execution such as scope creep, wrong estimation,
incomplete requirements, stakeholder communication, schedule and budget of
----------------------
the project, which must be resolved.
----------------------
----------------------
suggested. Problem solving needs experience, good understanding of business
---------------------- and technical expertise. There are various problem solving techniques available,
for example Cause- Effect Diagram, Strength-Weakness-Opportunity- Threat
---------------------- (SWOT) Analysis, Flow Charts etc.
---------------------- Leadership
----------------------
---------------------- out of his team and achieve the project objective. Leadership is a combination
of various skills. A good leader must possess certain qualities such as
----------------------
---------------------- skills, decisiveness and courage and ability to relax in highly stressful situation.
Some of the qualities of a leader may be inherited such as personality, energy,
---------------------- intelligence, while other can be learned, e.g. communication skills, motivation
skills. A good leader is always energetic and very positive in attitude. His
---------------------- presence encourages others. Social skills help him to understand the behaviour
----------------------
his decision. Good leaders have good judgement about the people and situations
----------------------
---------------------- can direct their project team.

----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes

1. Good leaders always
i. Are energetic
ii. Have positive attitude
iii. Are witty
2. Problem solving needs:
ii. Experience
iii. Good technical knowledge
3. Documents generated during projects are
i. Reports
ii. Memos
iii. Quotations
iv. Resignations
Activity 7
1. Classify the following list into either of the categories as a project

or ongoing operation. Justify your answer.
a. Developing a Customer Relationship Management (CRM) software
b. Assigning access rights to individuals
d. Developing a front end for an application in the form of a website

e. Installation of operating system on all the 50 machines in a user
environment
f. Setting up a network and securing it for a small enterprise
g. Migrating a software written in COBOL to Java
h. Delivering product training to the end users

Notes
2. In the following situations, explain which of the roles of the project
---------------------- manager will be critical according to you. Support your choice with a
reason.
----------------------
---------------------- requirement from the user side, which is asking for more
commitment from the team members.
----------------------
b. Mr. Amit is a critical resource in your project. You understand that
----------------------
the resignation letter from Amit.
----------------------
c. You as a project manager and your team are experienced in Finance
---------------------- Domain. A new project is being assigned to you, which is from
Healthcare domain. You have personally worked on such a project
----------------------
as a team member in healthcare domain 5 years back, whereas
---------------------- your team is totally novice to the new domain.
----------------------
Summary
----------------------
Software project management is facing lots of challenges in areas such as
----------------------
measurement and productivity.
---------------------- Delivering software in time, cost and quality is still a challenge and it is
found that weak project management is the root cause.
----------------------
Project failures are attributed to weak project management than to
---------------------- technical improvements.
---------------------- Knowledge of organisation culture, policies and hierarchy guides us in
choosing the right approach for better management of projects.
---------------------- Projects are unique, time bound and have progressively elaborating
---------------------- endeavours and deliver unique product or services.
Stakeholders play a very important role in software project management.
----------------------
A project manager is responsible for management and execution of the
---------------------- project. He selects appropriate management processes for execution of
a project. Basic function of any project manager is to plan, organise,
---------------------- execute and control project-related activities.
---------------------- Knowledge can be learned from experience while skills need continuous
practice. A good project manager possesses various skills such as
----------------------
---------------------- team building.
----------------------
----------------------
----------------------

Keywords Notes
System software: Software, which is a link between the hardware and

application programs
Application software: Graphical User Interface serves as a link between
users and computers
Software tools: Software programs available, which help users carry out
routine and non-routine tasks
Technical Challenges: Challenges that come due to change in technology
Non-technical challenges: Challenges, which come due to non-technical
reasons, for example change in management, stakeholders withdrawing
support etc.
1. List the three unique characteristics of project.
2. Explain project management.
3. What factors are included in managing a project?
5. What type of managerial activities does software project management

deal with?

1. False
2. True

i. –e
ii. –c
iii. –b
iv. –a

Notes Check your Progress 3
State True of False.
----------------------
1. False
----------------------
2. False
---------------------- Multiple Choice Multiple Response
---------------------- 1. Software projects have 2 main activities:

ii. Project management
----------------------
iii. Engineering
----------------------
---------------------- ii. People

---------------------- iii. Product
---------------------- iv. Project
v. Process
----------------------
----------------------
---------------------- State True or False.
---------------------- 1. False
---------------------- 2. True
----------------------
----------------------
---------------------- 1. True
---------------------- 2. False
---------------------- 3. True
----------------------
Fill in the blanks.
----------------------
1. Stakeholders
---------------------- or positively.
---------------------- 2. SME stands for Subject Matter Expert.

3. Team members are performers of planned task.
----------------------
sponsors.
----------------------
----------------------

Check your Progress 8 Notes
1. Good leaders always
i. Are energetic
ii. Have positive attitude
2. Problem solving needs:
ii. Experience
iii. Good technical knowledge
3. Documents generated during projects are
i. Reports
ii. Memos
iii. Quotations
Suggested Reading
1. Jalote, Pankaj. Software Project Management in Practice.
2. Jawadekar, Vaman S. Software Engineering Principles and Practice.
3. Mulay, Pravin. Software Project Management.
4. Pressman, Roger S. Software Engineering.

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Project Initiating
UNIT
2
Structure:
2.1 Introduction
2.2 Project Integration Management
2.3 Project Initiation
2.4 Project Charter Development
2.5 Use of Tools
2.6 Develop Preliminary Scope Statement
2.7 Software Project Management Plan
2.8 Project Execution, Monitor and Control
Summary
Key Words
Suggested Reading
Project Initiating 31
Notes
Objectives
----------------------
----------------------
Understand various software project management processes
----------------------
Explain how the processes are integrated
----------------------
Elaborate on the importance of integration process
---------------------- Develop project charter and preliminary scope statement
---------------------- Develop software project management plan
---------------------- Describe project execution, monitoring and control process
----------------------
---------------------- 2.1 INTRODUCTION

---------------------- Software project management is “the application of knowledge, skills, tools and
techniques to project activities in order to meet project requirements”. It begins
---------------------- with project initiation and ends at project closure. In between project initiation
---------------------- and project closure, there are various technical and managerial processes. These
processes are logical processes and are not isolated from each other. Every
---------------------- process is integrated with each other. Some processes are sequential, meaning
---------------------- completion of project initiation, you cannot start project planning and execution.
---------------------- However, due to progressive elaborated nature of project, processes may not
be executed 100 percent sequentially. In sequential process execution, the next
----------------------
process totally depends on the previous one and without completion of previous
---------------------- process, we cannot start the next process. In project planning, details are not
available and you cannot ask your team to wait till all the details are available.
----------------------
critical activities. As you move ahead, you will have more information at hand
----------------------
and can plan accurately. This nature implies that after execution, there are
---------------------- chances that you may revise the plan. Due to this interactive nature, effective
integration of all processes is required.
----------------------
There are various management processes such as preliminary scope and charter
---------------------- development, estimation and planning, monitoring and controlling project
---------------------- again comprise of various activities.

---------------------- For example, in planning, you may need to prepare various plans such as risk
---------------------- sake of understanding, these individual processes are grouped into four process
groups such as initiating processes, planning processes, execution processes,
----------------------
monitoring and control processes and closure processes. Project is nothing but
----------------------

the collection of all these processes and effective project management means Notes
putting all these individual processes in synchronisation to achieve the common
objective of the project.
In this unit, we shall also study how a project initiates and how projects are
authorised. We shall also study the importance of project planning. Project
integration includes seven main processes - develop project charter, develop
preliminary project statement, develop project management plan, direct and
manage project execution, monitor and control project work, integrate change
control and project closer.
2.2 PROJECT INTEGRATION MANAGEMENT

Project Integration Management Knowledge Area includes the processes and
processes and project management activities within the project management
articulation and integrative actions that are crucial to project completion,

successfully meeting customer and other stakeholders’ requirements and
managing expectations. Integration, in the context of managing a project, is
making choices about where to concentrate resources and efforts, anticipating
potential issues and coordinating work for overall project.
It is concerned with effectively integrating the various project management
processes that stem from the project management process groups to accomplish
the project objectives. The Project Integration is an effort that helps formulate
strategies to this transition and make the changes go smoother for all concerned.
Project Integration gives the project a clearer picture of where the project is
actually heading. It also encompasses documentation of what changes need to
When we integrate knowledge areas into the life cycle development, it is ensured
that their contribution is effectively absorbed in the project and product, helping
to complete the project successfully.
Project comprises of various processes, stakeholders and theirs skills, knowledge
and experience. These individual parts interact with each other. Project
integration ensures that all individual parts are working with each other and
maintain the coordination and balance of each part. If any part is imbalanced,
the project may fail, no matter how perfectly well each part is doing.
For example, your planning process is complete but the execution is not as per
it is the job of a project manager to keep all these parts together. Following
Notes
----------------------
Planning
----------------------
----------------------
---------------------- Stake Execution Skills &

holders Knowledge
----------------------
----------------------
---------------------- Control
----------------------
----------------------
Fig. 2.1: Project Integration
----------------------
First customer or sponsor initiates the project, then project team prepares
---------------------- plan and gets the management approval. After getting management approval,
---------------------- project execution starts (all software engineering activities such as analysis,
design, coding, testing and documentation). During execution, whether team is
---------------------- performing as per plan, is monitored and deviation is controlled.
----------------------
---------------------- project size and complexity increases, management of these processes becomes
crucial. There is no single way to manage a project.
----------------------
Project managers apply project management knowledge, skills and processes in
---------------------- different orders and degrees of rigor to achieve the desired project performance.
The project manager and his team must address every process and the level of
----------------------
---------------------- After planning, actual execution starts, meaning project team is formed and
they can start actual execution, such as requirement analysis and elicitation,
----------------------
---------------------- each process, the effort estimation and quality expectations are given in plan.
----------------------
---------------------- any deviation that occurs. During execution, the customer may change his
requirements that affect the schedule and cost. Hence, all these changes need to
---------------------- be incorporated into all corresponding plans, for example, due to changes, your
original scope document changes and that will change the WBS and schedule.
----------------------
The project deliverables also need to be integrated with ongoing operations of
---------------------- either the performing organisation or the customer’s organisation or with the
long-term strategic planning that takes future problems and opportunities into
----------------------
consideration.
Notes

1. There are multiple ways to manage a project.
2. The individual parts of a project may or may not interact with each
other.
3. Project integration gives the project a clearer picture of where the
project is actually heading.
Activity 1
Take up a small project in your organisation and identify its stakeholders

and their contribution in the project.
2.3 PROJECT INITIATION

Project initiation is the starting point of every project. In this step, we document
the assumptions, constraints, user expectations, business requirements,
technical requirements, project deliverables, project objectives and everything
that organisation to start the project and come out with a project document
giving a broad view of the project. Various activities take place in imitation
phase before actual execution of project.
We know that “Well Begun is half done”. Similarly, if project initiation process
starts well, chances of project success will be high. Initiation activity provides
numerous inputs to various project processes. Due to this integration point of
view, initiation becomes important.
Most of the projects fail not because of lack of technical competency, but due to
lack of knowledge of why the project is initiated and what the motive behind the
project is. If project objectives and underlying problem is not clear, all further
efforts may go in different directions, which means providing right solution to
wrong problem.
To avoid this, we must understand why the project initiated before accepting
any project. The initiation of a project involves determining its requirements to
some degree of detail, outlining candidate solution approaches and an assessment
of whether to proceed with the project.
Business head or the top authority in that organisation decides whether to initiate
the project. Every organisation operates in a socio-economic environment.
Every change in external environment has an effect on the functioning of the
organisation and the top management is proactive to such changes. If the top
Notes management does not react appropriately, they have to bare the consequence or
in extreme cases, they have to shut down their unit.
----------------------
Hence, every project need is intense and needs to be addressed carefully and
---------------------- immediately. To resolve the issues, management decides to initiate project and
determines whether the project is to be executed within the organisation or
---------------------- given to some external agency.
---------------------- Depending on the organisation culture, need and complexity, projects are
either formally or informally initiated. Usually projects are disclosed in a
---------------------- meeting, called project kick-off meeting. Before initiating any project, the top
----------------------
---------------------- project, they give a green signal to project.

During the project kick-off meeting, the project needs are discussed and further
----------------------
elaborated in to preliminary scope document. To summarise the initiation
---------------------- process, the projects are initiated to resolve the underlying problem or satisfy
the need of the organisation. Based on the availability of funds and priorities,
----------------------
----------------------
We know that projects exist due to problems or needs. It is worth to know the
---------------------- sources of these problems and needs. It will give a better understanding of the
---------------------- project.
Sources of Problems and Needs
----------------------
Every business entity operates in a very dynamic and continuously changing
---------------------- environment. These external environmental factors continuously affect business
operations. To stay competent in business, each organisation has to satisfy needs
---------------------- and demands posed by these factors. It is the duty of the management to see that the
----------------------
by other factors such as technology advancement, government policies etc.
----------------------
Now let us understand different types of needs that initiate projects. Six basic
---------------------- types of needs trigger project initiation.
1. Business Need: To sustain business or to expand the business and to
----------------------
stay competent in market, organisations always enhance their existing
---------------------- processes. Most of the IT projects initiate due to business need, for
example, automation of existing manual processes. Improvement in
---------------------- Productivity and quality and reduction in cost are other major demanding
needs of business. These are internal needs of the business.
----------------------
2. Market Demand: Market refers to a group of consumers or organisations
---------------------- interested in the product. These consumers enforce demand and these
demands need to be addressed by the performing organisations. Business
----------------------
needs are internal to the business while market demands are external
---------------------- demands. Internet banking is the example of market demand. Through
internet, customers can do various banking transactions, for example
---------------------- paying utility bills, fund transfer etc.

3. Customer Requests: These requests come from the internal as well as Notes
external customers, for example individual department’s needs. Planning
department (Internal customer) may request for planning and productivity
Software. Difference between market demand and customer request is

that market demand is collective request of hundreds of customers, while
4. Technology Advancement: In IT industry, both hardware and software

technologies are changing rapidly. These changes have considerable impact
on the organisation. The change in technology gives more features with
improved speed with high and remote processing capabilities. Though
organisations have existing software, after certain period they may ask for
new versions with advanced capabilities, for example, due to advancement in
internet technology, most of the organisations replaced their old client server
application with the latest multi-tier internet applications.
5. Legal Requirement: Every organisation operates in a big environment
in which government agencies and legislative authorities force new rules
and policies. Organisations need to comply with such rules and standard
project. For example, the change in Tax structure and various duties paid
to the government need changes to be incorporated in many modules.
If the organisations are multi-located across the various states, local
government policy may differ.
6. Social Need: Each organisation operates in social environment and needs
to address the demands of society and community. E-governance projects
are initiated due to such needs of society with which government can
provide faster and transparent service to the citizens.

i. Business needs
ii. Social needs
iii. Legal requirements c. To stay competent in business
iv. Customer requests d. New rules and policies are forced
e. Addresses demands of community
f. Work Breakdown Structure
Activity 2
1. What do you think would be the agenda of kick-off meeting?

2. List any three internal customers.
Notes 2.4 PROJECT CHARTER DEVELOPMENT
----------------------
recognises the existence of a project and provides direction on the project’s
----------------------
announces the commencement of a new project it includes the business needs,
----------------------
the product description and major assumptions.
---------------------- Many organisations follow formal chartering process in which formal charter
---------------------- document is released while few organisations informally announce a project
without any charter document. Usually, small projects are executed without
---------------------- formal chartering. Chartering is not merely a project announcement process.
---------------------- project.
---------------------- Charter is the outcome of lots of exercises that every organisation performs
---------------------- strategic policy and viability of the project etc. The formatting of charter
---------------------- document varies with organisations and the complexity and size of the project.
Though the outcome of charter development process is a single document,
----------------------
the organisation performs various activities to arrive at a project decision. We
---------------------- know that a project exists due to some problems, opportunities or business
requirements, which can be internal or external to the organisation. They compel
---------------------- the management to take action. This is the point where actual project initiation
process begins. Now what is required is some information from customers
----------------------
such as problem or need, objective of the project, major deliverables, major
---------------------- constraints and assumptions and budget.
Many a times, it so happens that a customer may have many demands that can
----------------------
initiate different projects and the top management of the customer wants to
---------------------- prioritise and select out of them. For project selection, various activities need to
be performed, which address where to utilise funds and how much funds should
---------------------- be released. Once the project selection is over, the performing organisation
----------------------
---------------------- the project.

During technical feasibility, it checks whether existing team with existing
----------------------
technology and infrastructure can solve customer problems or new technology
---------------------- needs to be purchased. After technical and operational feasibility, the project
is discussed with all key stakeholders, including project sponsors, project
---------------------- manager, customer project manager etc. Once all stakeholders agree with the
----------------------
project charter.
---------------------- Quite often, there are demands of many projects and shortage of funds to
---------------------- execute all projects at a time. Hence, the project sponsor has to select the right
project that aligns with the strategic goals of the organisation.
----------------------

Notes
project is selected, funds can be released to the project. Project charter is also
used as a basis for project selection. The purpose of a charter is to concisely
represent the project at a high level, to get management approval and support
(Signature).
The charter may sometimes be called by other names such as the project
initiation document (PID), scope baseline or just contract (usually for external
a brief statement about the following:

Objectives: What the desired outcomes are
Functions: Major features and/or processes
Constraints: Limitations of the environment

Scope: Boundaries of the project
Project Charter Contents

The contents of the charter vary with organisation and the levels of details
required by the stakeholders. The following template shows the generic project
charter.
Specimen of Project Charter
Project Charter
Project Title Planned Start Date:
Project Sponsor Name: Planned Project Delivery Date:
Project Mission/Objective Tentative Budget
1. ___________________________________________________
2. ___________________________________________________
3. ___________________________________________________
Need: _____________________________________________________
Assumptions: _____________________________________________________
Constraints: _____________________________________________________
Major Deliverables:
1. ________________________________________________________________
2. ________________________________________________________________
3. ________________________________________________________________
Notes Many organisations club the preliminary scope document with charter. This
---------------------- resources. This document acts as scope baseline for an entire project and can
even be used as a legal document between the customer and the performing
---------------------- organisation. The components of the specimen Charter are described below:
---------------------- Project Title:
---------------------- Project Sponsor Name: The name of sponsor. It can be the name of an
individual or a funding organisation.
----------------------
Project Mission/Objective: Brief description of desired outcome of the
---------------------- project. For example, after implementation of CRM, sales should increase by
20%, increase in customer service level by 10% etc.
----------------------
Need: Brief description of why the project is initiated.
---------------------- Assumption:
---------------------- must be written in all corresponding documents, for example, all end users are
computer literate and know how to operate basic functions of a computer.
---------------------- Constraints: Any limitation imposed, for example, project must go live in the
----------------------
Major Deliverables: Exhaustive list of various functional modules to be
----------------------
considered in project, that is, list of documents and training provided.
---------------------- This document is generally prepared by the project sponsor or the agency, which
is external to the project.
----------------------

----------------------
----------------------
1. A project charter can also be called
----------------------
---------------------- ii. The project initiation document (PID)
---------------------- iii. Scope baseline

2. The purpose of a charter is to
----------------------
i. Concisely represent the project at a high level
----------------------
ii. Get management approval
---------------------- iii. Append the organisations software library
----------------------
---------------------- Activity 3
----------------------
Collect any three specimens of a project charter.
----------------------

2.5 USE OF TOOLS Notes
Project managers use two drivers in the use of tools: the life cycle and the model
for process improvement. Software project managers must understand the
maturity level of the organisation developing the software product. Providing
tools to an immature organisation merely allows the developers to produce the
wrong product faster. Power tools require maturity to be used effectively.
Table 2.1: Tools Categorisation
Tool Class
Software requirement tools Requirements modeling
Traceability
Software design tools
Design optimisation
Software construction tools Program editors
Compilers
Interpreters
Debuggers
Software testing tools Test generators
Test execution frameworks
Test evaluation
Test management
Performance analysis
Software maintenance tools Comprehension
Re-engineering
Software engineering process Process modeling
tools Process management
Integrated CASE environments
Process-centered software engineering
environment
Software quality tools Inspection
Static analysis
Defect , enhancement, issue and problem
management tools tracking
Version management
Release – and – build
Software engineering Project planning and tracking
management tools Risk management
Measurement
Infrastructure support tools Interpersonal communication
Information retrieval system
Administration and support
Miscellaneous tools issues Tool integration techniques
Meta tool
Tool evaluation
Notes
----------------------
---------------------- Match the following.
---------------------- i. Software quality tools a. Comprehension

b. Test generators
---------------------- iii. Software maintenance tools c. Time Period
---------------------- iv. Software testing tools d. Version management
e. Static analysis
---------------------- f. Interpersonal
---------------------- communication
----------------------
Activity 4
----------------------
----------------------
----------------------
---------------------- 2.6 DEVELOP PRELIMINARY SCOPE STATEMENT

---------------------- Preliminary scope statement is a document generally prepared by a customer
---------------------- and it is a handover to the project sponsor before the release of the project
charter. As this is a preliminary document, only high-level requirements are
---------------------- described in this document.
---------------------- It is developed from information provided by the initiator or sponsor. The
---------------------- preliminary project scope statement into a project scope statement.
---------------------- Inputs Project charter, Project statement of work, Enterprise environmental

factors, Organisational process assets
---------------------- Tools and Techniques Project management methodology, Project
---------------------- management information system, Expert judgment
Output Preliminary project scope statement
----------------------
Contents of Preliminary Scope Document
---------------------- Goal-Objective
----------------------
----------------------
---------------------- goal is a very important activity and responsibility of the project manager. Quite
often, projects may have multiple goals and may contradict with each other.
---------------------- Different stakeholders have different views on the objectives of the project and
----------------------

project charter. Goals give direction to the project. Goals should be measurable, Notes
Let us consider the following example statement describing the goal of the
before the starting of the next academic year, which will provide online access
to its subscriber”.
If goals are not clear, the team may develop solutions that may not meet
customer expectations.
Scope
the system the project is going to consider and the parts that the project will
not consider. For example, consider a company decided to replace the existing
legacy system into a new ERP system.
Most of the time, the customer assumes that the project will transfer the existing
data from the legal system into the new system. However, it is not practically
scope, technical team can take care while designing new software. However, if it
Constraints
Every project management resource such as man, machine, material, money
has its own capacity. We cannot use them beyond their limit. This limiting
factor is called as constraint. For example, if a project sponsor asks to develop a
project in one million dollar and within six months, then the project constraints
Assumptions
We have certain assumptions in our mind. We expect that these assumptions
be true and we take certain decisions based on these assumptions. However, in
reality, our assumptions may fail and accordingly decisions based on them will
also fail. Hence, assumptions are treated as a great source of risk. Assumptions
assumptions need to be properly documented. There is no harm in assuming

but it should be noted down in the scope document so that others can see and
analyse their impact on project.
Project Requirements
These requirements pertain to and are applicable to project activities. For example,
generally considers the deliverables of the project and not the product. Project
deliverables could be various plans, work break down structures, schedules etc.
Notes Product Requirements
Product requirements are nothing but the expectation, needs and desires of
----------------------
---------------------- functional and non-functional requirements. Functional requirements include

actual functions expected from the product, for example, pay process module
---------------------- should process the pay data every month etc., while non-functional requirements
include quality aspects such as data security, performance, user friendliness,
----------------------
documentation needs etc.
---------------------- We have discussed some of the major contents of preliminary project scope
statement. However, contents may vary as per organisation and project needs.
----------------------
Some of the other contents that can be included in scope statements are major
---------------------- milestones, potential risks, tentative cost and effort estimates.

----------------------
Fill in the blanks.
----------------------
1. Preliminary scope statement is prepared before the release of __________.
----------------------
---------------------- 3. Time, money, people, space are considered _________.

----------------------
---------------------- Activity 5
----------------------
State three goals for library management system.
----------------------
----------------------
2.7 SOFTWARE PROJECT MANAGEMENT PLAN
----------------------
In large and complex projects, hundreds of human resources perform a variety
---------------------- of tasks. They share information with each other. It is not practically possible to
---------------------- closely monitor each resource and guide them. Handling such projects without
proper documentation and guidelines can be a major risk. Hence, every activity
---------------------- is planned in advance before execution.
---------------------- Software project management plan is the most important document of a
----------------------
each activity will be performed. This document acts like a control tool and
---------------------- helps in avoiding deviations. The contents and level of details vary as per the
---------------------- organisation and project need and the style and personality of the planner. Some
plans are exhaustive and some just contain the need to know details.
----------------------
----------------------

Notes
information that includes the following:
Table 2.2: Project Information
Charter
project, including deliverables
Organisation How the project will be organised and executed
to produce the deliverables
Process Details of the managerial and technical processes
that will be used during the project
Work Breakdown Structure Work breakdown and work package details
Schedule Schedule, dependencies and resources
Budget
All of these items are related and the SPMP actually evolves over a period of
time as the various items come together. The process usually starts, though, with
incorporating the elements of the approved charter into the SPMP. Because the
(what) and planning (how) stage, where the detailed planning takes place. When
completed and approved, the SPMP becomes the benchmark for controlling the
project execution.
Due to progressive elaborative nature of the project, the project management
plan evolves over the time and may be revised many times during execution.
The changes to the project management plan are updated through proper change
control mechanism.
Project management planning is an exhaustive and time-consuming task.
You can improve project management planning only through practice and
learning experience of others. Main challenge is to decide the contents of the
document since you can write a plan for every activity and you need to choose
those activities, which have considerable impact on a project. You can also
study project plans of similar projects or get expert advice. There are various
guidelines and templates available for writing project management plan.
The Contents of Software Project Management Plan (SPMP)
The contents of project management plan vary with the organisations. Project
management plan can be made as per the requirement of a project and
stakeholders. Following template describes the contents of sample project
management plan derived from IEEE SA1058-1998 Standard for Software
Project Management Plans.
Sample Project Management Plan
1. Introduction
You can write here the overview of the project.
1.1 Project Overview
Here you can write the summary of project objectives, major activities
and milestones, required manpower and budget.
Notes 1.2 Project Deliverables
List of primary deliverable to the customer, for example, list of modules,
---------------------- reports, features and functionality etc. to be delivered.
---------------------- 1.3 SPMP Evolution
---------------------- Describe how this plan will be executed and how the changes to plan are
controlled.
----------------------
1.4 Reference Materials
---------------------- Here you can provide complete list of all documents and other sources of
information referenced in this plan. For easy access, other details can be
----------------------
provided such as report or document title, version no., release date, name
---------------------- of author and publishing organisation.
1.5
----------------------
---------------------- confusion.
---------------------- 2. Project Organisation
----------------------
structure.
---------------------- 2.1 Process Model
---------------------- Which process model the project is going to adopt, such as waterfall
model, prototype, rapid application development, spiral etc. Process
---------------------- model must include roles and responsibilities, activities, entry and exit
---------------------- criteria for project initiation, product development, product release and
project termination.
---------------------- 2.2 Organisation Structure
---------------------- Describe the internal management structure of the project. This can be
effectively shown by using the line of authority chart.
----------------------
2.3 Organisation Interfaces
---------------------- Here you can show the administrative and managerial entities.
---------------------- 2.4 Project Responsibilities
---------------------- Here you can write the major activities and the person responsible for
carrying out this task.
---------------------- 3. Managerial Process
---------------------- This section describes the management process for the project.
---------------------- 3.1 Management Objectives and Priorities
Describe the philosophy, goals and priorities for managing this project.
----------------------
3.2 Assumptions, Dependencies and Constraints
----------------------
We already discussed the terms constraints and assumptions. Dependency
---------------------- checking means checking whether the activity depends on any other
activity.
3.3 Risk Management Notes
The risk can be contractual, technological, related to size and complexity,

human resource etc. and for every such risk, contingency plan needs to be
documented.
3.4 Monitoring and Controlling Mechanism
Here you can describe various reports, formats, audits and review
procedures.
3.5
Here you can describe the required skill set, recruitment guidelines,
training etc.
4. Technical Process
How the technical process such as design, coding, testing etc. will be
executed is described in this section.
4.1 Tools and Techniques
Various tools and techniques that can be used in a project are explicitly
written in this section, for example, you can use MS Visio for designing
and Win runner for testing purpose. Along with these tools, you can
language etc.
4.2 Software Documentation
This is one of the most important sections of the SPMP. It describes how
the documentation for different process will be maintained. Some of the
Design Description (SDD), Software Test Plan etc.

4.3 User Documentation
User documentation includes user manual, user guides, installation and
setup procedures. Here the plan and format of each document is described
in detail.
5. Training and Support
Training and support needs of end user will be described in this section,
which includes the training schedule.
6. Budget, resource requirements, schedules are also included in the project
management plan.
Notes
----------------------

1. How the project is supposed to be executed and what it is going to
----------------------
---------------------- 2. SPMP actually evolves over a period of time, as the various items
come together.
----------------------
3. Project management planning is exhaustive and done immediately.
----------------------
----------------------
Activity 6
----------------------
----------------------
a. Deviation
----------------------
b. Quality
---------------------- c. Customer communication
---------------------- d. Teamwork
---------------------- e. Risks
2. Try to understand the SPMP and apply to your academic project.
----------------------
Describe at what extent this is applicable to your project.
----------------------
---------------------- 2.8 PROJECT EXECUTION, MONITOR AND CONTROL

---------------------- Managing Project Execution process requires the project manager and the
project team to perform multiple actions to execute the project management
----------------------
---------------------- these actions are:

Perform activities to accomplish project objective.
----------------------
Expend efforts and spend funds to accomplish the project objects.
----------------------
Staff, train and manage the project team members assigned to the project.
---------------------- Obtain quotation, bids, offers or proposals as appropriate.
---------------------- Select sellers by choosing from among potential sellers.
---------------------- Obtain, manage and use resources including material, tools, equipment
and facilities.
---------------------- Implement the planned methods and standards.
---------------------- Create, control, verify and validate project deliverables.
---------------------- Manage risks and implement risk response activities.

Manage sellers and adapt approved changes into the projects scope, plans Notes
and environment.
Establish and manage project communication channels, both external and
internal to the project team.
Collect project data and report cost, schedule technical and quality
progress and status information to facilitate forecasting.
Collect and document lessons learnt and implement approved processes
improvement activities.
The project manager, along with his team, directs the performance of the
planned project activities and manages the various technical and organisational
interfaces that exist within the project. This process is most directly affected by
the project application area.
Project execution also requires implementation of the following:
Approved corrective actions that will bring anticipated project performance
into compliance with the project management plan.
Approved preventive actions to reduce the probability of potential
negative consequences.
Approved defect repair request to correct product defects found by the
quality process.
Monitor and control project work
Monitor and control project work is performed to monitor project process
associated with initiating, planning, executing and closing. Corrective or
preventive measures are taken to control project performance. Monitoring is
an aspect of project management performed throughout the project. Monitoring
includes collecting, measuring and disseminating performance information and
assessing measurements and trends to effect process improvements. Continuous
monitoring gives the project management team insights into the progress of the
project and chances to identify deviations, if any.
Summary
In between project initiation and project closure, various activities are
cannot execute some of the activities in 100 percent isolation.

The success of a project depends on effective integration of activities with
each other and smooth coordination between them.
It is the responsibility of the project manager to keep all individual people
and processes together and to maintain the balance. Project initiates
to resolve underlying problems or to satisfy the needs. The needs and
problems can be imposed by internal or external factors.
Notes
new project and gives authority to a project to utilise the project resources
---------------------- for project work.
---------------------- Software industry is an external agency that provides solution to various
----------------------
---------------------- Preliminary scope document contains high-level requirements of the
---------------------- and what is going to be produced.
---------------------- Software Project Management plan also provides guidelines for scope,
quality, risk, cost and communication management.
---------------------- Monitoring and controlling of a project is extremely essential in order to
ensure that there are not deviations.
----------------------
---------------------- Keywords
---------------------- Proactive: Anticipating what will come next and being prepared for it
---------------------- Organisation culture: Environment, which exists within the organisation,
mannerism or the style in which an organisation functions
----------------------
Constraints: Limited resources, which are available with the organisation.
----------------------
----------------------
---------------------- 1. Explain various tools. How do they facilitate project management?

2.
----------------------
3. Explain the importance of process integration in project management.
----------------------
4. List various software engineering process models.
---------------------- 5. Explain why a project initiates.
---------------------- 6. Prepare project management plan for library management system.
---------------------- 7. Identify scope, constraints and assumptions of admission management

system.
---------------------- 8. What do you understand by control and monitoring?
---------------------- 9. Explain project execution along with essential processes involved in it.
---------------------- 10. Explain with the help of an example how input of one process will be
output of another process.
----------------------
11. As a project manager, how will you respond if the customer requests for
---------------------- changes after the execution of the project has already begun?
---------------------- 12. Explain the relationship between organisation culture and project
management.
---------------------- 13. State the importance of feasibility study and its effect on a project.

14. Being a project manager, how will you work with constraints surrounding Notes
the project?
15. Give three examples of project constraints and assumptions.
16. Providing tools to an immature organisation merely allows the developers
to produce the wrong product faster. Power tools require maturity to be
used effectively. Do you agree with this statement? Justify your answer.
17. How does a project manager decide on the scope of a project?
18. Explain the scope of inventory management system.
19. What do you understand by scope creep?
20. If the output is preliminary scope statement, state its input and tools and
techniques.

1. True
2. False
3. True

i. c
ii. e
iii. d
iv. b

1. A project charter can also be called
ii. The project initiation document (PID)
iii. Scope baseline
2. The purpose of a charter is to
i. Concisely represent the project at a high level
ii. Get management approval
----------------------
i. e
----------------------
ii. d
---------------------- iii. a
---------------------- iv. b
----------------------
----------------------
Fill in the blanks.
----------------------
1. Preliminary scope statement is prepared before the release of project
---------------------- charter.
---------------------- project scope statement.

3. Time, money, people, space are considered resources.
----------------------
----------------------
---------------------- 1. False
---------------------- 2. True
3. False
----------------------
---------------------- Suggested Reading

---------------------- 1. Futrell, Robert, Donald Shafer, Linda Shafer. Quality Software Project
---------------------- management.
----------------------
3. Pressman, Roger S. Software Engineering.
----------------------
4. A guide to the Project Management Body of Knowledge.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Managing Scope of the Project
UNIT
3
Structure:
3.1 Introduction
3.2 Scope: Meaning
3.3 Software Scope Management Plan
3.5 Work Breakdown Structure (WBS)

3.6 Controlling the Scope
Summary
Key Words
Suggested Reading
Managing Scope of the Project 53

Notes
Objectives
----------------------
----------------------
Explain how to manage the scope of the project
----------------------
---------------------- Create work breakdown structure

---------------------- Identify how to control changes in scope
---------------------- Discuss how to verify the scope of the project
---------------------- 3.1 INTRODUCTION

---------------------- In this unit, we shall be discussing the scope of a project and ways to manage the
----------------------
the project. Thus, the scope document is the base document for all such project
---------------------- management activities. Many activities depend on scope, for example, without
scope, we cannot estimate effort, without estimate, we cannot schedule and
---------------------- prepare budget and without budget and schedule, we cannot execute the project.
----------------------
single change in the scope may change the budget and schedule of the project.
---------------------- The objective of every organisation is to make the project successful and earn
----------------------
organisation. Continuous changes in the scope may imbalance the project and
---------------------- ultimately may fail. Hence, scope management becomes a very important
activity. Scope management includes requirement gathering, analysis and
----------------------
---------------------- scope when product is ready.
----------------------
change.
----------------------
3.2 SCOPE: MEANING
----------------------
Scope refers to all the work involved in creating the products of the project and
---------------------- the processes used to create them. We know that in order to begin any work, we
---------------------- need some information. Managing the scope of a project includes the processes
required to ensure that the project includes all the work required and only the
---------------------- work required to complete the project successfully. Managing the project scope
---------------------- in the project.
---------------------- To construct an ERP software needs high-level requirements. Therefore,
constructing an ERP software only initiates the thinking process. We cannot
----------------------
build software on such small requirement. Hence, we further drill down the
----------------------

However, the detailing process becomes overwhelming because any single Notes
system does not work completely in isolation. It interacts with other parts
our requirements within that boundary. For example, to construct a building,
be delivered and not delivered as a deliverable of the project.
manage various processes such as planning, estimation and budgeting. But for
(SRS).
Scope Management process for a project includes the following activities:
1. Requirement Elicitation: It is the way of gathering the clients needs by
using various methods such as observing the manual process at client
side, preparing questionnaire and handing it to the client , Interviewing
the client etc
needs of the customers to meet the objectives of the project.
of the project and product.

4. Creating Work Breakdown Structure (WBS): This process involves
subdividing project deliverables and project work into smaller, more
manageable components.
5. Verifying the scope: It is the process of formalising acceptance of the
completed project deliverables.
6. Controlling the scope: This process involves monitoring the status of the
project and product scope and managing changes to the scope baseline.
Type of scope
the scope can be of the following type.

Project Scope:
order to develop a software, we perform various activities such as planning,

monitoring and control, budgeting, scheduling, communicating, reporting and
each project is unique, project requirement varies in detailing, for example,

communication and reporting requirements may vary with customer.

Notes Product Scope:
----------------------
Product scope broadly consists of functional and non-functional requirements
----------------------
functionalities such as payroll processing, ledger posting, stock update etc.
---------------------- Non-functional requirements describe the quality and security requirements
such as user authorisation, backup and restore, processing speed and response
----------------------
time etc. Product scope document acts as a base document for managing
---------------------- software development activities such as requirement gathering, analysis and
design, coding and testing etc. Product scope is generally further elaborated
----------------------
----------------------

----------------------
State True or False
----------------------
---------------------- software.
Fill in the blanks.
----------------------
1. Product scope broadly consists of _____________ and
---------------------- _________________ requirements of the software.
----------------------
---------------------- Activity 1
---------------------- 1. For an ATM system, identify the functional and non-functional

---------------------- requirements.
2. List 10 functional requirements of library application software.
----------------------
3. List 10 non-functional requirements of banking software.
----------------------
---------------------- 3.3 SOFTWARE SCOPE MANAGEMENT PLAN

----------------------
---------------------- the project and the project team may not have a clear vision about the scope of
---------------------- the scope. The result is incomplete scope document. Incomplete scope in initial
stage adds requirements in later stages of development. Poorly managed scope
---------------------- leads to cost and schedule overruns. In order to avoid this, we must plan how
---------------------- we are going to manage the scope. An output of initiation processes is a project
charter, which is a key document for formally recognising the existence and
---------------------- providing a broad overview of a project.
----------------------

Scope management plan is a detailed document, which describes how we are Notes
are going to control the scope and how we are going to verify the scope.
Scope management plan and scope statement provides common understanding
within the team. This plan provides guidelines to document the project scope.
The scope management plan further guides how the work break down structure
will be developed.
How you document the scope is important since your team is a discrete
combination of techno-functional stakeholders. Inherent documentation
cannot provide each and every detail about the project and solve the queries
of the stakeholders. Scope management plan provides guidelines on how the
scope document, which includes the outline of document and description of
each content etc., is maintained. Generally, scope management plan contains
descriptive language and is decomposed into manageable activities.
This decomposition is presented in a hierarchical structure called Work Breakdown
Structure (WBS). Scope management plan provides guideline on how the WBS
is developed and maintained. Developing scope management plan from scratch
is a time-consuming activity. You need some information at hand to develop such
scope management plan or use templates. Asking the experts who have developed
similar projects helps to understand critical points in the current project.
Scope management plan is generally created as a subsidiary plan of project
management plan. If detailed guidelines are provided in project management
plan, then there is no need to rewrite the same. You can directly refer these
guidelines from project management plan. Other relevant information essential
for developing scope management plan can be accessed from the project charter,
preliminary scope statement.
While developing the scope management plan, you must take into consideration
the existing infrastructure and human resources. Your existing infrastructure or
your team may not be capable of delivering everything asked by the customer.
For example, the customer may ask you to use embedded technology to provide
in this technology. The scope that cannot be delivered through available

infrastructure and resources need not be accepted as a part of the scope and
clearly excluded from the project scope.
Controlling the scope is another important activity. The scope management plan
provides guidelines on how the scope is controlled. Someone rightly said, “If
project is allowed to change freely, the rate of change will exceed the rate of
progress”. Despite your careful and detailed planning, your scope is likely to
change. These changes need to be properly managed and controlled. Request for
process can smoothly handle such changes.
expectations and need of the customer. To ensure that the delivered product is

Notes acceptable to the customer, the project scope plan must provide the guidelines,
---------------------- evaluates a product or service and involves processes such as review meetings,
checklists, standards and organisational conventions, requirements and
----------------------
---------------------- management plan.

----------------------
----------------------
---------------------- i. Review meetings

---------------------- ii. Project plan
---------------------- iii. Scope management plan

iv. Checklists
----------------------
v. Standards and organisational conventions
----------------------
Fill in the blanks.
---------------------- 1. ___________________ provides guidelines on how the WBS is
---------------------- developed and maintained.
----------------------
Activity 2
----------------------
----------------------
they mange the scope of the project before beginning the development.
----------------------
----------------------
3.4 HOW TO DEFINE SCOPE
----------------------
---------------------- and product. Preparation of a detailed project scope statement is critical to the
success of a project and builds upon the major deliverables, assumptions and
---------------------- constraints that are documented during project initiation. During planning,
----------------------
information about the project is known. Existing risks, assumptions and
----------------------
constraints are added as required.
----------------------
----------------------
----------------------
----------------------

Notes
properly updated into the scope statement.
gathering. A customer may give ample requirements but all may not match with
case, the project manager has to negotiate with the customer and make him
agree with the scope.
used, namely the Project Charter and preliminary scope statement documents,
with the budget, time and quality requirements described in project charter and
preliminary scope statement. What is mentioned in charter and preliminary
with the available team and infrastructure. For example, the customer may ask
to provide RFID technology to track the material in logistics or may ask for
you will have to negotiate with the customer.
required things to the customer to achieve the objective of the project. Anything
extra than required is called as ‘gold plating’. A good project manager and his
team should always avoid such gold plating. Work excluded from the project
process.
contains more details than the preliminary scope statement. Once the scope is
document. SRS describes requirements in detail while scope statement just

provides requirements in terms of deliverables. The scope document becomes
an input to SRS development for detailing requirement.
Generally, project scope document includes the following:
1. Project Objective:
the initiation of the project. The objective gives direction to the project. A
project objectives needs skill and clarity about the purpose. Ability to
visualise the work undertaken with possible gains and losses improves the
quality of the work. Quite often, the objectives are stated as a formality.

Notes Such objectives never help the project team. A well-stated objective can
decide whether the project is a success or a failure.
----------------------
2. Technique for setting Goal/Objective: Setting goal or objective means
---------------------- writing desired outcome of the project. Our tendency to think in general
terms adds vagueness to the objective. Vague objectives neither support
---------------------- any direction nor help in planning the activities to achieve the desired
purpose. To set clear and precise objective, SMART technique can be
----------------------
---------------------- objective.
‘S’
----------------------
‘M’ stands for measurable. Your objective should be measurable.
----------------------
‘A’stands for Achievable. Your capacity determines how much you can
---------------------- achieve in a given time frame. You should always take into consideration
your (in case of Project-Project Team) core strength.
---------------------- ‘R’ stands for realistic. Can you achieve an unreal goal?
---------------------- ‘T’
target date at which you want to achieve the desired result. Here you can
---------------------- state the start and end date in your objective.
---------------------- 3. Product Scope Description: Let us quickly overview the contents of
product scope description.
----------------------
Project Requirement: This section describes the project level
---------------------- requirement and not product requirements. Project level requirements
could be related to project planning, budgeting, schedule and estimation
---------------------- and communication. For example, use of automated tools such as MS
---------------------- Project or any other project management software could be project-level
requirement.
---------------------- Project Deliverables: Once we understand project and product
---------------------- requirement, we have to convert these requirements into deliverables.
Deliverable is the actual output or end result delivered to the customer. We
---------------------- must understand the difference between deliverables and requirements.
For example, you are assigned, as a Project Manager, to deliver the
----------------------
---------------------- editing software. However, providing facilities such as spell-checking,

printing, mail connectivity in your editing software are the requirements
---------------------- of the product. Deliverables are nothing but collective requirements.
Deliverables comprise of requirements.
----------------------
Project Boundary: Project boundary explicitly states what is included
---------------------- and excluded from the project. For example, in ERP implementation
project, you can explicitly state that historic legacy data migration is
---------------------- excluded from the scope of the project work, since many a times the
---------------------- migration becomes a separate project and it heavily consumes your time
---------------------- your stakeholders may assume that you are supposed to deliver.

Product acceptance criteria: Notes
and procedures and guidelines for accepting criteria. Once your product is
ready, it needs to be formally accepted by the customer for releasing the
payment. Before accepting a product, the customer may want to check
Project constraints: In order to deliver a product, we are utilising various

resources. These resources directly or indirectly affect the performance
of the project. The main constraints are scope, budget, schedule, human
resources and technology. Each of these resources has a limitation with
respect to the project. We cannot exploit these constraints beyond their
limitation.
Time constraint:
cannot delay or exceed that time limit. For example, some projects need
before the declared date of election.

Budget constraint:
the project. If project exceeds beyond the budget, the customer may not
delivered to the customer within the given budget.

Schedule constraint: A constraint that affects or delays your project
activities is called scheduled constraints. For example, organisations
have only one software architect assigned early on some project and he
is not available for the project next two months. The availability of a
software architect can delay your project schedule by two months. Here
the architect is the source of schedule constraint.
Technology Constraint: In IT industry, new technologies are always
emerging and project team may not have hands-on experience in the newest
technology. You cannot afford to have team expertise in every technology
and you need to manage the project with available technology. Many a
times, the technology itself has limitation, for example, the capacity of
a database to store huge data, support for new features such as object-
oriented technology. These constraints are called technology constraints
and are written explicitly.
Project Assumptions: Assumptions are the things that you believe to
be true. With your prior experience, you assume that something will go
in a particular way but in reality, it may not be true. In a project, you
assume that the key resource is available till the project completion but
in reality, he may leave the project prior to completion. Another most
common assumption could be that the team will grasp new technology in
short time. These assumptions are possible sources of risk and need to be
mitigated to avoid project failure.

Notes
----------------------

---------------------- 1. The objective gives direction to the project.
----------------------
i. Project Deliverables a. Explicitly states what is included and
---------------------- excluded from the project
---------------------- ii. Project Boundary b. Things that you believe to be true
iii. Project Constraints c. Actual output or end result delivered to
---------------------- the customer
---------------------- iv. Project Assumptions d. Resources that directly or indirectly
affect the performance of the project
----------------------
----------------------
Activity 3
----------------------
----------------------
2. Prepare a broad outline of product scope document for a system of
---------------------- your choice. Ensure that you take into consideration all the attributes
of the product scope.
----------------------
----------------------
3.5 WORK BREAKDOWN STRUCTURE (WBS)
----------------------
WBS is the process of subdividing project deliverables and project work into
---------------------- smaller, more manageable components. WBS is the hierarchical breakup of work
to be executed either in team or by a single person to accomplish the project
---------------------- objectives and create the required deliverables, with each descending level of
----------------------
----------------------
---------------------- Work break down structure is the center of many project management activities.
It is a bridge between project scope statement and project execution. It is a map
---------------------- that guides us on how to reach to the destination of project.
---------------------- Can we plan the project if we do not know what different activities need to
---------------------- be performed to complete the project. It is the heart of the planning process
and interacts with other processes such as estimation, scheduling, budgeting,
----------------------
----------------------
----------------------

Notes
Controlling
Estimating Budgeting
WBS
Scope Planning
Scheduling
Fig. 3.1: WBS Process

Let us assume that you are developing a word-editing software. In the
scope statement of word-editing software project, it only mentions the main
and formatting facility etc. However, in order to deliver word-editing software,

you need to perform various processes such as further requirement detailing,
architecture of the product, coding, testing, preparation of online documentation

etc. We cannot manage the entire project as whole or single activities. We need
to break down the project further into manageable activity.
WBS serves many purposes to many people of the team. It can be used as
acts as a communication tool and ensures the common understanding of project

scope amongst all stakeholders.
We can manage small projects without WBS because we know what work needs
to be done and who will do what since the team is small. You can simply keep
all relevant data in your memory or diary and manage the project. However, in
large and complex projects, hundreds of employees are working on thousands
of tasks. In that case, you need diagrammatically presented work decomposition
so that you can share work activities information across the team.
WBS can be created separately for product scope or project scope or a
combination of both. Products WBS generally decompose the product-related
activity and project WBS decompose project activities. Generally, WBS is
shown in hierarchy as depicted in the following diagram.

Notes Project deliverables
----------------------
---------------------- Milestones
----------------------
Work Packages WBS dictionary
----------------------
----------------------
ACtivities
----------------------
Fig. 3.2: WBS Hierarchy
----------------------
Let us understand various components of sample WBS structure. The following
----------------------
Project Deliverable
---------------------- ERP Project
----------------------
Milestones
----------------------
Analysis Design Development Testing
----------------------
----------------------
Work packages
---------------------- Design Design Design
Database Screens Reports
----------------------
Activities
---------------------- Design Login
Screen
---------------------- Create Normalize
Structure Structure
Design Master
---------------------- Screen
---------------------- Fig. 3.3: WBS Structure for ERP System
---------------------- Project Deliverable
----------------------
Figure 3.3, the ERP project is the deliverable.
----------------------
Milestones
----------------------
hierarchy. Fig. 3.3 shows typical milestones of software engineering activity
----------------------
such as analysis, design, coding and testing. However, you may add project
---------------------- management activities such as planning, scheduling and budgeting in the same
diagram or prepare separate WBS if the diagram is too much crowded.
----------------------
----------------------

are also called as zero duration activities. When the project progresses ahead, Notes
we will reach many milestones. For example, requirements gathered, prototype
to perform many individual activities. Milestone helps to identify whether the

project is leading in the right direction. After each milestone is reached, the
project manager can take a review meeting with his team members.
Work Package
Next to milestone, work packages are shown at the second level of WBS
diagram. Here design milestone is decomposed into three work packages such
as database design, screen design and report design. These work packages may
be further divided into small activities. For example, work package could be to
such as designing screen for login, design screen for master etc. Activities are at
the lowest level in the WBS and need not be decomposed further.
WBS dictionary: WBS dictionary is a supporting document for WBS. WBS
dictionary contains the details of work package and is generally made for each
work package. As WBS is a graphical presentation, we cannot show detailed
information in the diagram. Just a brief description of work package such as
task. Hence, further details such as work description, deliverables, acceptance

criteria, assumptions, expected date of delivery, duration of task are added
in the WBS dictionary, as shown in the following WBS dictionary template.
You may add any further information that you think relevant to the package.
WBS dictionary is linked with WBS by Work package number. Related work
packages are grouped and given control number. That control number will be
helpful in controlling the cost of the project.
Table 3.1: WBS Dictionary
WBS Dictionary
Project # Project Title
Work package No Control Account No
Date of creation Date of revision
Work package description
Deliverables
Acceptance Criteria
Assumptions
Duration Expected date of delivery
Resource assigned Resource responsible
Approved by: Project Manager
How to create WBS?
The main purpose of creating WBS is to ensure that all activities required for
delivering projects are captured and nothing is missed out. During a project,
your team may be executing hundreds of technical and managerial activities.

Notes With the help of hierarchical WBS diagram, you can show major activities so
that you can check with your team if anything is missing. WBS only describes
---------------------- major tasks and it is not a “to do” list, which provides every minute detail.
---------------------- Creating WBS is a team activity in which the Project manager, along with the
---------------------- them in small manageable activities called as work packages. The decomposition
technique helps you to identify the various activities of the project.
----------------------
Now you may ask why to create WBS every time if the project executes a
---------------------- similar task? You are right because usually, many of the technical tasks such as
coding, testing, designing are there in every project though projects are unique.
----------------------
However, work packages may differ hence you need to create WBS and WBS
---------------------- dictionary for every project. If projects are similar, you can use WBS templates
of previous projects and make necessary changes instead of recreating the
---------------------- entire WBS. However, you should not lose out on the basic purpose of the WBS
while using templates. WBS can be created in various ways and there is not any
----------------------
unique method for creating WBS. WBS is generally represented in tree-like
---------------------- hierarchical structure where top node of WBS represents main deliverable of
the project and the last leaf in the tree is called work package. Sometimes, work
---------------------- elements are so huge in number that you cannot easily draw in tree-like format.
In that case, WBS will be represented as an indented text in the Excel sheet.
----------------------
WBS can be presented in many forms. You may choose what is appropriate,
---------------------- what suits the project and can be understood by everyone in the team. Before
creating WBS, you must make sure of the following:
----------------------
First decide the approach of creating WBS, meaning the way you are
----------------------
---------------------- Second, decide the depth of the tree. For better control, the level in WBS
should not exceed the 5th level. If it goes beyond the 5th level, it becomes
---------------------- complex to manage and control.
---------------------- The third thing is to decide which activities should be shown on the WBS.
It is advisable to show the activities, which require minimum one week
---------------------- of duration to complete, thereby automatically excluding all your day-to-
day activities.
----------------------
Another advantage of showing week duration activity is that you can monitor
---------------------- and update the weekly status of the project easily. With WBS, you can ask your
team to submit the status in numbers of activities completed.
----------------------
WBS Techniques:
----------------------
---------------------- decomposed in many different ways. To have more clarity, we will discuss the
two different ways in which you can create WBS.
----------------------
----------------------
----------------------

The following diagram describes the sample WBS for Word-editing software. Notes
Word Editor Word Editor
File utility Printing Graphics Requirements Design Coding
Requirements Design Coding File utility Printing Graphics
Figure A Figure B
Fig. 3.4: Sample WBS for Word Editing Software
Generally, activities are arranged in top down manner. The 0 level of the activity
is the highest node in hierarchy. It describes the name of the project or the
main deliverable of the project written in a short and meaningful way. First
level in hierarchy usually represents the milestones, meaning this activity is the
outcome of other activity. Here you can show two approaches, either you can
show the major deliverables or modules of the project such as, in this case, File
software engineering tasks such as requirements gathering, design, coding in
and code that module. You can show these software engineering activities in
2nd level as shown in Figure A. In the second approach, you can decompose
software engineering activities in various modules as shown in Figure B. Both
the approaches are the same and they do not make any practical difference in
how you execute tasks. It is your personal way of looking and managing how to
organise work. Another question that may come to your mind is how to sequence
the activities. Here you should note that WBS does not signify any sequence.
Activity 4
Prepare a work breakdown structure for the following projects:

a. Library management system
b. Order processing system
c. Flight reservation system
3.6 CONTROLLING THE SCOPE

Scope controlling is an important activity and needs to be performed throughout
the project. The process ensures that scope is within budget and schedule. Scope
controlling process is generally performed after the execution process. In this
process, the deliverables generated in execution process are measured against
the scope baseline. Scope baseline consists of project scope statement, WBS
and WBS dictionary.
Notes Controlling scope means preventing unnecessary changes. In order to control
the changes one must know how and why changes occur during the project
----------------------
is possible that your requirements are not properly captured, end user has not
---------------------- completely transferred knowledge to you or the deliverables are not matching
---------------------- with the expectations of the customer. Once you know the possible causes
behind the change, you can take corrective actions. For example, you can use
---------------------- techniques such as using case diagrams for capturing requirements, freezing
requirements by signing of SRS etc.
----------------------
Another thing you need to control is scope creep. It may occur due to additional
---------------------- requirements of the customer or sometimes your team players may add extra
features, which are initially not in scope. For example, many times, programmers
---------------------- want to experiment new things that they recently learnt and accordingly, they
keep on adding new features to the project. However, these features are not in
----------------------
the project scope. This may add to problems in later stages of implementation.
---------------------- Hence, such changes need to be controlled tactfully. You need to maintain a
balance between the creativity and experimentation of a programmer and the
---------------------- scope and schedule of the project.
---------------------- Various techniques such as change control system, variance analysis, re-
---------------------- scope. Let us have an overview of these techniques.

---------------------- Change control system: Every requested change should be executed
through the change control system, wherein you can ask your team to
---------------------- implement only approved changes. The change control system will
continuously monitor and control through feedback loop. The feedback
---------------------- loop provides facility to correct the deviation from standard.
---------------------- Variance Analysis: This tool measures the difference between what
---------------------- determines the cause of variance and accordingly corrective action can be
---------------------- taken.
Re-planning: Change does not come alone. Only correcting changes
----------------------
---------------------- changes on schedule and budget. Re-planning tool is used to evaluate the
impact of change on cost, quality, schedule and risk. After evaluation, the
---------------------- changes are updated into WBS and WBS dictionary. This further changes
the estimation and needs re-planning.
----------------------
----------------------
---------------------- management system is a methodic way to keep track of various changes

to documents and source codes. Various software tools are available
----------------------
---------------------- changes in an Excel sheet. Most of the technologies today provide inbuilt
---------------------- Visual Source Safe (VSS) for controlling versions of source code.

Notes
Fill in the blanks.

1. Controlling scope means preventing ________ changes.
Multiple Choice Single Response
scope baseline and what was actually created?

i. Change Control system
ii. Variance Analysis
iii. Re-planning
Activity 5
tools.
management systems.
3.7 SCOPE VERIFICATION
deliverables meet the acceptance criteria, the customer formally accepts the
product.
requirements. Quality control checks whether the project meets the quality
is generally performed after the quality control process.
management plan, WBS and WBS dictionary. Project scope management plan
details of work package and deliverables in work breakdown structure and

project scope statement.

Notes
requested changes and recommended corrective action. During inspection, the
---------------------- stakeholders suggest some changes or corrective actions and these changes
need to be handled with integrated change control system.
----------------------
The main tools that can be used to verify the scope are reviews, inspections and
---------------------- walkthroughs.
---------------------- Reviews
Review, also called a walkthrough, is the manual process in which problems are
----------------------
uncovered through the direct examination of each component of the product.
----------------------
members are formally trained and know how to conduct reviews. Reviews can
---------------------- be conducted in various ways and formatted as per the organisation policy and
nature of the project. Reviews could be formal reviews or informal. A properly
----------------------
managed review ensures early detection of problems, which further minimises
---------------------- overall project cost.
---------------------- Another type of review is Peer Review. It involves methodical examination

of deliverables. The activities of peer review should be well planned and the
----------------------
----------------------
level 3. As per CMM,
---------------------- Inspection
---------------------- Inspection includes activities such as measuring, examining and verifying
to determine whether work and deliverables meet requirements and product
----------------------
acceptance criteria.
---------------------- Walkthrough
---------------------- This review is facilitated by the producer of the material being reviewed. The
participants are led through the material in one of two formats: the presentation
---------------------- is made without interruptions and comments are given at the end or comments
are made throughout. In either case, the issues raised are captured and published
----------------------
in a report distributed to the participants. Possible solutions for uncovered
---------------------- defects are typically not discussed during the review.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes

1. Which of the following are the tools used to verify scope?
i. Reviews
ii. Inspections
iii. Quality control
iv. Change control
v. Walkthroughs
Activity 6
Conduct an interview with at least three software project managers from

different organisations, focussing on the techniques they used for scope
Summary
Scope is the description of the work to be delivered to the customer.
Scopes are divided into two types- Product Scope and Project Scope.
functionality.
Scope management plan is the document that describes how the scope of
included in and excluded from the project.

Scope is one of the important documents since all project activities such
as planning, estimation, costing etc. are based on the scope.
WBS is a hierarchical structure that describes the breakup of the project
into deliverables and manageable activities. The smallest unit in WBS is
called work package.
WBS dictionary is another document maintained along with WBS,
which describes the details of activities such as work description, person
responsible, estimated duration, quality requirement etc.
Scope statement along with WBS and WBS dictionary is called scope
baseline. Scope baseline is used for measuring the performance of the
project.

Notes Scope controlling is an important activity and needs to be performed
throughout the project. Controlling scope means preventing unnecessary
---------------------- changes.
---------------------- Techniques such as change control system, variance analysis, re-planning
---------------------- scope.
---------------------- After planning, controlling, managing and executing the scope,
deliverables are ready for deployment. The completeness of all deliverables
----------------------
---------------------- a very important activity.

----------------------
process.
----------------------
---------------------- Keywords
---------------------- Scope: It refers to all the work involved in creating the products of the
project and the processes used to create them.
----------------------
Scope management plan: It is a detailed document, which describes
----------------------
the scope, how we are going to control the scope and how we are going
---------------------- to verify the scope.
---------------------- Process of developing a detailed description of the
project and product.
----------------------
Work Breakdown Structure: WBS is the process of subdividing project
---------------------- deliverables and project work into smaller, more manageable components.
It displays the breakup in a hierarchical structure.
----------------------
Milestone:
---------------------- zero duration activities.
Scope baseline: It is used for measuring the performance of the project.
----------------------
Scope baseline consists of project scope statement, WBS and WBS
---------------------- dictionary.
----------------------
acceptance of the project scope by the stakeholders.
----------------------
----------------------
1. What is scope? Explain different types of scope.
----------------------
2.
----------------------
---------------------- 3. What is WBS and how is it created?
---------------------- 4. Explain WBS with an example.

5. Discuss the importance of scope management plan. Notes
6. Explain the contents of scope management plan.
7. Differentiate between product scope and project scope.
8. What are the techniques used for controlling the scope?
9. Write short notes on:
a. Scope baseline
b. Milestone
c. WBS Technique

State True or False
1. False
Fill in the blanks.
1. Product scope broadly consists of functional and non-functional
requirements of the software.

i. Review meetings
iv. Checklists
v. Standards and organisational conventions
Fill in the blanks.
1. Scope management plan provides guidelines on how the WBS is developed
and maintained.
1. True

Notes Match the following.
i. –c
----------------------
ii. –a
----------------------
iii. –d
---------------------- iv. –b
----------------------

Fill in the blanks.
----------------------
1. Controlling scope means preventing unnecessary changes.
----------------------
----------------------
---------------------- scope baseline and what was actually created?

ii. Variance Analysis
----------------------
----------------------
---------------------- 1. Which of the following are the tools used to verify scope?
---------------------- i. Reviews
ii. Inspections
----------------------
v. Walkthroughs
----------------------

---------------------- 1. Hughes, Bob & Mike Cotterell. Software Project Management. Tata
McGraw Hill Publishing Company Limited.
----------------------
2. Pressman, Roger. Software Engineering – A Practitioner’s Approach.
---------------------- MCGraw Hill Publication.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Estimating and Scheduling
UNIT
4
Structure:
4.1 Introduction
4.2 Software Measurement
4.3 Software Estimation
4.4 Software Project Scheduling
Summary
Key Words
Suggested Reading
Estimating and Scheduling 75

Notes
Objectives
----------------------
----------------------
Understand concept of software measurement
----------------------
Compare and apply the appropriate estimation technique
----------------------
Estimate effort using COCOMO model
----------------------
Explain the fundamentals of scheduling
---------------------- Develop schedule using critical path method
----------------------
----------------------
4.1 INTRODUCTION
----------------------
We also learned how to create WBS, i.e. how to decompose the given scope into
---------------------- manageable activities. Now these manageable activities are used as basis for
schedule development. Once schedule is developed, activities can be assigned to
---------------------- resources and mapped with the available time frame. The process of sequencing
---------------------- the activities in a given time frame is called scheduling. Scheduling process
is one of the important components of time management process. Schedule
---------------------- ensures the effective management of the time constraint.
---------------------- Time is one of the most important and crucial resources in project management.
We must therefore understand the impact of time management on the other two
---------------------- constraints of the project. The following diagram represents the triple constraint
of the project.
----------------------
----------------------
The edges of the triangle represent the constraints: time, cost and scope. The
----------------------
change the other two sides of the triangle to keep the triangle in shape. Simply,
---------------------- we can say if there is change in scope, then it will change the time and cost or if
we change time, then it will change the cost and scope. For example, if you add
----------------------
any extra feature of module to the scope of the project, it will take more time
---------------------- and accordingly more cost.
----------------------
Time Cost
----------------------
can meet one of these
----------------------
at the expense of the
---------------------- others.
---------------------- Scope
---------------------- Fig 4.1 Triple Constraint of the Project

Projects are dynamic systems that must be kept in equilibrium. Project time Notes
the triple constraint. Most of the software projects’ failure, cost overruns and
delays are attributed to lack of effective time management.
To ensure the completion of the project in given time, we need to focus on two
aspects of time management - developing accurate schedule and adherence of
team to project schedule.
Developing accurate schedule and increasing productivity are the primary
concerns of time management. The basis for scheduling and productivity is
sizing and estimation of the software. Unlike other industries, software industry
is not matured enough in measurement and estimation of software. Thus, it
is imperative for us to understand the basic concepts of software sizing and
estimation.
is the prediction of resources needed to complete a project of predicted size,

taking into account factors of calendar time, staff and budget constraints.
Estimates are carried out at various stages such as strategic planning, feasibility
stage, the reasons for the estimate and the methods used will vary.
In this unit, you will learn the basics such as software measurement, estimation
and schedule development. As scheduling is based on mathematics, we will
come across various formulas. Scheduling can be as simple as listing activities
considering the precedence of the activities and their interdependence etc.

Now-a-days, various scheduling software are available and one can use that if
one is not comfortable in using the mathematical formulas. Even if you are not
an expert in handling mathematical calculations, you can use various tools such
as MS project, which does all complex calculations for you. However, in this
unit, we will study only manual schedule development process.
4.2 SOFTWARE MEASUREMENT

Imagine that you go to a big city mall to buy a perfume. There are several
you start comparing the net quantity and quality verses the price. These two are
the measurable properties of perfumes. Can you go to a software consulting
example? Certainly not.

Softwares can be measured in different ways unlike other commodities. Software
can be measured in terms of units such as lines of code, number of function
which can be measured in terms of time and efforts. Software measurement

helps in size and effort estimation, productivity analysis and improvement,
quality control and overall project management.

Notes Software engineering is a stable, quantitative engineering disciple. Its stability
arises from the wide range of metrics developed by software engineers to
---------------------- measure various aspects of the software. The advantage of metrics is that one
can measure in quantitative terms the different aspects of software that need
---------------------- evaluation on an ongoing basis for estimation. It then helps of develop standards
---------------------- for software development.
Importance of software measurement
----------------------
In order to understand the importance of software size, let us relate to our day-
---------------------- to-day experience. Assume that you are the host of a program and have invited
twenty guests for lunch. Accordingly, you placed an order of twenty dishes
----------------------
to the hotel manager. As a sponsor, you are interested in the quality of food
---------------------- and fast service. However, the hotel manager is concerned with fast delivery
(productivity), quality and size of the order. You may understand from the
---------------------- scenario that the size of the order is critical for the hotel manager, whereas you,
as a sponsor, are looking at the time and the cost only.
----------------------
Simulate the same example to software development and you will be able to
---------------------- appreciate the importance that software size estimation holds for you, as a
project manager. Software size is very important in many project management
----------------------
areas such as planning, estimation, budgeting, quality, risk etc. Your customer
---------------------- may not be much interested in software size but you, as a project manager, must
know the size of the project.
----------------------
Software Size
---------------------- Predicting the size of a software system becomes progressively easier as the
---------------------- project advances. Near the end of a software development project, there are
---------------------- estimation. Of course, we cannot wait until near the end to provide estimate –
we are required to estimate cost, calendar time and efforts way too early. Go/
---------------------- no go decisions are made, contracts are won and lost and jobs appear and fade
---------------------- away based on estimates.
---------------------- requirement. Size is a physical measure and we can determine the size of a
---------------------- thing based on observable dimensions. Similarly, to measure the software size,
the observable dimension could be number of lines of code, total functions,
----------------------
---------------------- Since software is a logical commodity unlike other physical commodity, we

cannot totally rely only on the physical dimensions of software. Only physical
---------------------- dimensions such as lines of code will not be able to tell how complex the project
is. For that matter, we need to consider the other intangible aspects such as
----------------------
the complexity, execution speed, memory requirement and functionality of
---------------------- the software. Functionality of software can be measured with number of input
variable required, number of control structures required (if-then etc), number of
----------------------
----------------------

There are various tools and techniques with which we can measure the size of Notes
the software. While determining size, we must consider other factors such as
the language, experience of the programmer etc.
The lines of code depend on language used for development. For example,
a function to add two numbers requires few lines of code in vb.net while
same function may require hundred lines of code in COBOL. Another point
that is to be considered in software sizing is the style of programmer and
his intellectual capacity. The same function written by two programmers in
two different programs are never the same unless they are copied. Similarly,
intellectual capacity of two programmers may not be the same. For example,
one programmer can write a complex program in few lines of code while other
one may take many lines.
There are two major steps in determining how long a project will take and how
with other environmental factors to estimate effort and its associated cost.

1. COBOL requires less LOC as compared to VB.
2. Predicting the size of a software system becomes progressively easier
as the project advances.
3. While determining size, we cannot consider other factors such as the
language, experience of the programmer etc.
Activity 1
Take an example from a software developing organisation and write

down the steps of converting the software system from one programming
language to another.
4.3 SOFTWARE ESTIMATION

Software estimation is the process in which the size of the software is
determined in terms of measurable quantity such as LOC, function points etc.
The estimations are generally given by programmers. The project manager
he negotiates with programmers and reduces the estimate. There are various
ways of estimation. Each organisation follows its own standard for estimation.
Estimation is more of skill and judgement. Most of the estimations are based on
the past experiences.

Notes The bases of software estimation are as follows:
a. The need for historical data
----------------------
b. Measure of work
----------------------
c. Complexity
---------------------- Let us quickly review some of the most common estimation techniques available.
---------------------- 1. LOC based estimation
---------------------- The LOC based estimation is a commonly used and widely accepted technique
of size estimation. LOC is a measure of the length of code the software engineer
---------------------- will write to deliver software requirement. This type of estimate determines how
---------------------- cannot accurately predict LOC estimate of the software, which is not developed
---------------------- yet. However, as estimation is given prior to execution (writing source code), we
need to take the help of experts and the historical data of similar projects. This
---------------------- is called as estimation by analogy, in which estimation data for each component
is taken from similar projects done in the past. This is a rough-cut estimate and
---------------------- no one can exactly tell you how many lines of code will be required since in
---------------------- software development, no two projects are exactly alike.
The LOC estimate can be derived for each work package of WBS. For
----------------------
determining size, we have to consider the WBS. WBS gives us the breakup of
---------------------- main software application into various modules and components. For example,
consider the WBS of login module. Login module is an interface, which takes
---------------------- user ID and password from the user and validates. Upon successful validation,
the user is authenticated. For login, you need a formatted screen to capture data,
----------------------
code to transfer and validate data from the screen and send it to the database
---------------------- table to store the user data. With this breakup of activity of login module,
you can guess and roughly estimate lines of code required for developing the
---------------------- module. By summation of all the individual modules’ lines of code, you can
derive the total LOC estimate for the main project. This type of estimation is
----------------------
called bottom-up estimate.
---------------------- For estimation, you can refer to the historical record of similar projects. From
----------------------
developing similar functionality and add to them extra lines for additional
---------------------- functionality.
The popular units used to express lines of code are:
----------------------
1. SLOC - Source lines of code: The actual lines of code written by the
---------------------- programmer before compiling is counted and called as SLOC.
---------------------- 2. KLOC - Kilo lines of code: Used on a larger scale when code exceeds
thousand lines
----------------------
1 KLOC = 1000 LOC
----------------------
----------------------

Drawback of LOC based estimation Notes
The LOC based estimates are simple to derive and widely accepted but have a
few drawbacks:
1. LOC based estimates cannot measure the complexity of the functions.
2. Productivity measured in terms of LOC may encourage the programmer
thin code with minimum defects.

To overcome these drawbacks, other estimation techniques emerged such as
function point, Model Blitz, Feature Point and Delphi Technique. Though there
are various techniques available and each one with pros and cons, you need to
select the appropriate techniques that suit your organisation’s policy and project
needs.
2. Three-point estimate
For better accuracy, three-point estimation formula is used. In three-point
estimation technique, the pessimistic (P), optimistic (O) and most likely (M)
estimates are taken from the programmers and values are substituted in the
following formula.
Estimate = P + 4M + O/6
Consider that the values of pessimistic, optimistic and most likely estimates are
200, 400, 300 respectively. Therefore,
200 + (300 x 4) + 400/6 = 300 LOC
General Guidelines
Although there is no standard method to count the number of lines, following
guidelines can help in better estimation:
1. Only executable statements (lines) are counted and comments are ignored.
2. All executable statements separated by semicolon on single line are
counted as separate line of code.
3.
4. Do not count the temporary code written for testing purpose.
5. Do not count code used for reused functions.
6. Assembly language equivalent can be used to compare estimation of
different languages.
3. Function point estimate
Function point estimate measures the size of the software based on the
functionality and complexity of the software, rather than just lines of code.
transaction-oriented system in 1970. Function point technique measures

systems from a functional perspective. Function points are independent of
any underlying technology. Regardless of language, development method or

Notes hardware platform used, the number of function points for a system will remain
constant. The only variable is the amount of effort needed to deliver a given
---------------------- set of function points. FPA is useful in estimating projects, managing change
of scope, measuring productivity and communicating functional requirements.
----------------------
FPA is a popular method for estimating and measuring the size of the software.
---------------------- The basis for FPA is functionality of the software from the user’s point of view.
It considers user’s requirements for software and its logical design. The size of
----------------------
the functionality is calculated in terms of Function Point Count (FPC).
---------------------- To understand the Function point, let us understand the example given below:
Suppose you want to purchase a software engineering book from a bookstore,
----------------------
what do you look for? Are you interested just in the size of the book or the
---------------------- contents? Some might be interested in size but not many. We look for the
contents, the case studies given, the style, language etc.
----------------------
This analogy depicts the size vs. functional aspect of the software. Here, size
---------------------- of the book resembles LOC while the contents resemble the functional aspects.
---------------------- The function point estimate counts the number of functional points such as
---------------------- results. Each functional part is further analysed with the complexity such as
simple, average or complex.
----------------------
How to estimate using function points
---------------------- I. Count the occurrences of each category:
---------------------- o Number of inputs: Inputs are the number of forms that we use to
pass the external data into system, for example, data entry forms
----------------------
for customer information, data entry form for product information.
---------------------- How many such input forms are required is calculated.
o Number of user outputs: Output means processed data that can be in
----------------------
the form of reports, screens, error messages etc. For example, salary
---------------------- report, ledger etc.
o Number of inquiries: Inquiries are usually smaller reports and
----------------------
the output of inquiry is generally processed online and shown
---------------------- immediately to the user on the screen. For example, number of
----------------------
o
---------------------- be stored for future use. This data is generally stored in a logical
----------------------
o Number of external interfaces: Sometimes data needs to be fetched
---------------------- from other media, for example, disk, tape, CDs etc. External
interface provides facility to capture data from external resources.
----------------------
II. Calculate the complexity of each category: The complexity of each
---------------------- category can be simple, average, complex. For example, the input form
for customer information is relatively simple, while the input form for
----------------------
Bill of material entry is comparatively complex.

III. Decide the weighing factor for each category in each complexity. Notes
IV. For each category, multiply the count of function points by the
corresponding weighing factor of complexity. Then for each category,
add the products of simple, average and complex as shown in column and
total function points in the following table.
V.
function points.
Table 4.1: Calculation of Total Function Points
Function Simple Simple Average Average Complex Complex Total
Category Function
Points
Count WF Count WF Count WF
No. of I/P 1 3 1 4 1 6 13
No. of O/P 1 4 1 5 1 7 16
No. of Inq. 1 3 1 4 1 6 13
I/P
No. of Inq. 1 4 1 5 1 7 16
O/P
No. of 1 7 1 10 1 15 32
Files
No. of 1 5 1 7 1 10 22
Interfaces
Total 112
The above table shows the sample calculation of function point. In the above
table, WF stands for Weighting Factor, I/P = Inputs, O/P = Outputs. Here, for
simplicity of calculation, each functional category is counted as one. Thus, total
function points in the above example are 112.
The function point estimation was initially developed for business information
system applications. This model is further extended to estimate a more complex
system.
4. Feature point estimation
Feature point estimation is the extension of function point estimation. Feature
point is a superset of the function point measure that can be used for /in more
advanced applications such as systems and engineering software applications.
The feature point measure accommodates the application in which algorithmic
complexity is high, such as Real time systems, Process control and embedded
software. In feature point estimation, the algorithmic characteristics of software
are counted and the rest of the process is the same as that of function point
estimate.
5. Object point
This estimation model is useful in estimating the size of the software, which
is developed using object oriented technology. In this estimate, object point is
assigned to each unique class or object. The rest of the process is the same as
function point, as described above.

Notes 6. Delphi technique
Delphi technique is a group forecasting technique, generally used for future
----------------------
events such as technological developments projects. This is a disciplined method
---------------------- of using the experience of several people to reach an estimate. This is very
popular and simple to implement. This technique does not require historical
---------------------- data and can be used for high level and detailed estimation. The results obtained
from these techniques are more accurate as compared to LOC.
----------------------
Effort estimation
----------------------
Once the size of software is known, we can estimate the effort required to
---------------------- accomplish the task. Effort estimation is an important activity because it tells
us how much resources are required and the time they will take to complete the
---------------------- project. Effort estimates are mainly used for planning, scheduling and budgeting
purpose. The cost of software mainly depends on the effort estimate. We can
----------------------
directly relate the cost of human resource to effort and prepare the cost estimate
---------------------- for budget purpose.
---------------------- What is Effort?

The main resource in software development is human resource. The amount
---------------------- of time a person invests to perform a task is called as effort. Effort can be
---------------------- measured in various units such as person-years, person-months, person-weeks,
person-days and person-hours. One person-year means one person working for
---------------------- one year to complete a task. Two person-year means either two persons can
complete the task in one year or one person works for two years to complete
---------------------- the task.
---------------------- The unit of effort is man-month. Secondly, productivity varies from organisation
to organisation, project to project and size to size. So a good estimate is the one
---------------------- that is computed using an organisation’s productivity measure. To arrive at such
---------------------- a measure, the organisation should build the measure using the size of projects
successfully completed versus efforts taken. One should measure it with FPC of
---------------------- each project and efforts taken to complete it.
---------------------- COCOMO Model
The COCOMO stands for Constructive Cost Model. This model is based on
----------------------
regression analysis. Regression analysis is a tool that statistically interprets the
---------------------- historical data and describes the mean and other statistical relationship between
other variables. This model was developed by Dr. Barry W. Boehm in 1970. He
---------------------- analysed the data of 63 projects of various types and sizes. The projects were
observed for actual size (LOC), actual effort and actual duration of the project.
----------------------
Boehm used scatter diagram to plot the equation.
---------------------- Scatter diagram such as shown here is used for deriving the equation. From this
diagram, a linear equation can be derived, which takes the form a + b x where a
----------------------
and b are constants. This equation is the basis for predicting the effort.
----------------------
----------------------

Notes
Fig 4.2: Scatter Diagram
organic mode, semi-detached mode and embedded mode.

Organic Mode: This category considers projects of small size and simple
to develop, such as payroll, store management system etc. The team
working on the project is small in size. The projects under this category
are general-purpose projects and do not have tight constraints such as
time and budget.
Semi-detached mode: This category considers projects that are higher
in size and complexity than organic mode projects. Team size is medium
and constraints are moderate. The project that requires high innovation
pertains to this category, for example, projects such as data base systems,
compilers.
Embedded mode: This category considers the projects, which are largest
in size and complexity as compared to the previous two modes. These
projects need high level of innovation. The project must be developed
within a set of tight hardware, software and operational constraints.
system, nuclear control system etc. All real time projects fall in this
category.
COCOMO model, as described below:

Basic Level: Basic level computes effort of software development as a
function of program size expressed in estimated lines of code. It is useful
for rough-cut estimate of small to medium size project. The basic level is
used when fast estimation of effort is required.
Intermediate Level: Intermediate level computes software development
include subjective assessments of personnel, project attributes, product

and hardware.
Advanced Level: This is an extended version of intermediate level. It
considers the impact of cost drivers on each software engineering steps
(analysis, design, coding).

Notes Example of Basic Level Estimation
Let us understand how to calculate effort, duration, persons and productivity of
----------------------
project when the size of the project is given.
---------------------- Effort (E) = a x (Size) b
---------------------- Duration (D) = 2.5 x (Effort) c
---------------------- Person required (N) = E/D

Productivity (P) = Size/Effort
----------------------
where a, b and c are the constants derived from regression analysis and depend
---------------------- on the project. Size is measured in thousand lines of code (KLOC) and E is effort
applied in person-months. As most of the organisations do not have enough data
---------------------- to perform regression analysis, they can use the following table that describes
---------------------- the values of a, b and c for three modes of basic COCOMO model.
---------------------- Mode Value of a Value of b Value of c

Organic Mode 2.4 1.05 0.38
---------------------- Semi-detached 3.0 1.12 0.35
---------------------- Embedded 3.6 1.20 0.32
In order to calculate effort, duration, number of person and productivity of a
---------------------- project, simply put the value of size in the above equations. Let us say the
---------------------- project is simple and project size is 100 KLOC.
As the project is simple, you use values of a, b given for organic mode in the
----------------------
above table and substitute these values in the formula E = a x (size) b
---------------------- Thus Effort (E) = 2.4 x (100) 1.05
---------------------- E = 2.4 x 125.8925
---------------------- E = 302.1421 Person-months

Duration of project (D) calculated by using the formula D = 2.5 X (E) c
----------------------
D = 2.5 X (302.1421) 0.38
----------------------
D = 2.5 x 8.7595
---------------------- D = 21.89 Months
---------------------- Number of person (N) required can be calculated as follows:
---------------------- N = E/D
N = 302/21
----------------------
N = 14 person required
----------------------
Productivity P = Size/Effort
----------------------
---------------------- P = 100000/302
---------------------- P = 331 LOC/Person-month

You can calculate the effort, duration, person required for various projects using Notes
the formulas and the corresponding values of a, b, c given above.

1. The basis for software estimation are
i. LOC
ii. The need for historical data
iii. Measure of work
iv. Complexity
2. Most common estimation technique available
i. Object Point
ii. Delphi techniques
iii. Feature point estimation
iv. Project scope
Activity 2
used and state its advantages.
4.4 SOFTWARE PROJECT SCHEDULING

The next step after estimation is schedule development. Software Project
Management is an activity that distributes estimated effort across the planned
Schedule tells us how we are going to execute the plan in terms of days and
activity. Schedule is an elaboration of your plan with respect to time frame and
resources used.
milestone, work products to be produced and person responsible for them.

Good scheduling requires technique and is almost an art similar to the creation
performed when and by whom. Schedule is usually shown in a tabular or in a

graphical chart called as Gantt chart.

Notes For effective utilisation of time, we must know how much time each activity
requires and the dependency of each activity on the other activity. For example,
---------------------- coding activity can be started after completion of design activity, i.e. coding
depends on design.
----------------------
In order to develop a schedule, we must know various activities that need to
---------------------- be performed to complete the project, the sequence of each activity, duration
of each activity and resources needed as per the skill set required to complete
----------------------
the activity. Here resources are usually human resources such as architect,
---------------------- programmers, testers, quality persons etc. Scheduling process takes into
consideration the company calendar, which describes the actual days and hours
----------------------
time management, the schedule needs to be updated to control and track the
----------------------
changes that occur during execution. Developing schedule is a technique. It
---------------------- needs experience as well as knowledge of mathematics. Sometimes complex
algorithms can be used for time optimisation.
----------------------
Now let us understand various processes and terms associated with scheduling.
----------------------
to manageable activity. An activity is the smallest task that can be estimated,
----------------------
managed and performed by one person. For example, the work package could
---------------------- be to develop payroll module that can be further decomposed to activity level
such as table creation, screen development etc.
----------------------
For each activity, attributes are assigned. Activity attribute gives additional
---------------------- information about the activity. For example, attributes could be person
performing the activity, instruction that need to be followed for the activity etc.
----------------------
Network Diagram:
---------------------- diagram. Network diagram is a graphical representation of activities. This
diagram represents the sequence of the activities as per their order of execution.
---------------------- Sequencing helps us to understand the logical relationship between the activities.
---------------------- Network diagram also shows the activity name, duration and precedence. The
---------------------- activities along with their sequence.

---------------------- A C
Start E End
----------------------
B D
----------------------
Fig. 4.3: Network Diagram
----------------------
Network diagram can be drawn with different techniques. Most popular
---------------------- diagramming techniques are Precedence Diagramming Method (PDM), Arrow
---------------------- Diagramming Method (ADM) and GERT method.
Precedence Diagramming Method (PDM): This method graphically represents
---------------------- the scheduling activities. Activities are represented by node (rectangles) and
---------------------- arrow represents the dependence that exists between the activities. Usually

activities are presented by alphabets and are shown inside the rectangle and the Notes
5 3
A C
Start E End
2 B D
1
Fig. 4.4: PDM

In the above networking diagram, Activity A takes 5 days, B takes 2 days and
so on.
Arrow Diagramming Method (ADM): This is another method to represent the
scheduling activities. Unlike PDM, here activities are represented by arrows,
and nodes represent connecting points. Instead of rectangles, here nodes are
represented by circles in order to differentiate with PDM. The method is also
called as activity on arrow. The illustration below represents a network diagram
for activity on arrow.
4
A C
5 2
Start End
7 2
E D
3
Fig. 4.5: ADM

With ADM, we can show zero duration activity. Zero duration activities are
called dummy activities and are usually represented by dashed lines. In the
requirement document (SRS) is a dummy activity. This activity does not take
much time or does not require any resource. It shows the dependency of other
activities on dummy activity.
GERT Method: GERT stands for Graphical Evaluative Review Technique.
Sometimes schedules need to be technically presented. Technical presentation
shows loops and branches between activities. You can show repeat process and
if-then conditions with this diagramming technique, which is not possible with
ADM and PDM.
Activity B,
Activity A Activity B
Fig. 4.6: Repeat Process

Notes Types of logical relationships
----------------------
integrated with each other. For example, we cannot perform designing and
----------------------
logical relationship helps in sequencing the activity dependence. There are four
---------------------- basic types of logical relationships between activities, as described below:
---------------------- Finish to Start (FS)
----------------------
successor can start. This is the most common relationship found across all
---------------------- projects. For example, gather requirements activity needs to be performed
before design activity. This can be shown as below.
----------------------
Design Gather Requirements
----------------------
Fig. 4.7: FS Example of Predecessor Activity
----------------------
Start to Start (SS)
---------------------- Let us consider that you are developing an ERP software and your team has
---------------------- only two designers and 6 programmers. Now two designers cannot give their
design at a time so that six programmers can start coding. Till the entire design
---------------------- is complete, do you allow other programmers to wait? Not affordable. What
----------------------
---------------------- design to remaining pairs. In the above scenario, predecessor activity can be
started before the successor activity.
----------------------
Design
----------------------
----------------------
Coding
----------------------
---------------------- Fig. 4.8: Example of SS

Finish to Finish (FF)
----------------------
---------------------- the completion of successor activity. For example, user acceptance testing
----------------------
----------------------
Testing
----------------------
----------------------
Documentation
----------------------
---------------------- Activity

Start to Finish (SF) Notes
This rarely found relationship represents that an activity must start before the
Types of dependency:
We have seen various cases of logical dependence, which tell us which activity
depends on the other. However, in real life, to adjust the schedule, we need
to consider which activities are really dependent and which activities can be
executed parallel. This can be well understood by determining the type of
i. Mandatory Dependency: This is sort of compulsory dependency. For
activity and proceed with the second. This is also called as hard logic
dependency.
ii. Discretionary Dependency: In this type of dependency, the team can
decide the sequence of activities. At the discretion of the team, the
sequence of activity can be changed. This type of dependency is used
in fast tracking to shorten the duration of the project. For example,
in construction projects, we can start furniture and electrical work
simultaneously. The sequence of activities is based on priorities. The
activities in this type of relationships are independent of each other. This
type of dependency is also called preferred logic or soft logic.
iii. External dependency:
factors outside the project, for example, if testing activity is outsourced,
then debugging activity becomes dependent on activities of outsourcing
party. If outsourcing is delayed, debugging activity is delayed.
Lead and Lags
Quite often, we have to start certain activities earlier in the project, provided
there is no mandatory dependence. For example, we can start the coding activity
few days prior to the completion of the design activity. Lead represents the
time between the start of successor activity and start of precedence activity. For
example, if design activity starts on 1st th
and if we start coding
on 7 in the same month, then lead is 7 days.
th
Lag is the waiting time gap between two activities that represents the amount
of time for which the successor activity can be delayed. For example, after
completion of SRS preparation, we need to wait for SRS signoff and then only
we can start design activity. Here the time gap between SRS preparation and
design activity is called as lag.
Developing Schedule
We understood what is network diagram and various terms associated with
scheduling, network diagrams are analysed further. Network diagram only

shows the sequence and duration of the activity. However, to assign and keep

Notes
and total project duration.
----------------------
The next step after creation of network diagram is to analyse and determine the
----------------------
---------------------- on mathematics. The most widely used analysis tools are critical path method,
critical chain method, what-if analysis and resource levelling.
----------------------
Critical Path Method
----------------------
The critical path method is a mathematical tool used for schedule analysis.
---------------------- Schedule analysis determines the duration of the project by analysing the
precedence of the activities. This method determines the critical path. The
---------------------- critical path is the longest duration path that ultimately determines the duration
----------------------
---------------------- method, which means it focuses only on the activities and not on the availability
of the resource. This method uses Forward Pass and Backward Pass techniques
----------------------
---------------------- Let us understand the basic concepts used in the critical path method.
---------------------- Path
Path represents the sequence or route each activity follows from starting activity
---------------------- to ending activity.
---------------------- The following network diagram shows two paths as follows:
---------------------- Path 1 Start-A-B-D-E-Finish
Path 2 Start-A-C-E-Finish
----------------------
Forward Pass
---------------------- 3 2
B D
----------------------
2 7
----------------------
Start A E Finish
----------------------
8
---------------------- C
---------------------- Backward Pass

---------------------- Fig. 4.10: Critical Path Method
---------------------- Duration of Path
Duration of path is the amount of time each activity on the path takes to
----------------------
complete. Path is calculated by adding duration of each activity on that path.
---------------------- Generally, durations are shown above rectangles. Thus duration of path 1 is
14 (2+3+2+7=14) and duration of second path is 17 (2+8+7). Comparing the
---------------------- duration of the two paths, we can say that path 2 is longest path.

Critical path Notes
2 (Start-A-C-E-Finish) is the critical path. The activities on critical path are
This path is important because if everything goes according to schedule, its

length gives the shortest possible completion time of the overall project. The
critical path determines completion of the project in a given time. The total time
the project will take depends on the critical path. If critical path activities are
if any activity is delayed on the non-critical path. Hence, while scheduling, the
critical path becomes important and the activities on the critical path need to be
managed properly. If you are able to manage the activities on the critical path
time.
Float (Slack)
Float is the amount of time an activity can be delayed without delaying the project
end date. Float is also called as slack. Activities on the critical path always have
project and delaying a single activity on the critical path will delay the project.
resources. For example, your team may not always have experienced resources.
Sometimes you need to use less experienced available resource. In this case, if
you know the critical and non-critical activities, you can assign the less critical
activity to the less experienced resource so that your project schedule will not
be delayed.
Float is calculated as below.
Float = Late Start – Early Start or
Float = Late Finish – Early Finish
Early Start (ES)
Early start determines how early an activity can start. Forward pass technique
is used to calculate the early start of each activity on schedule. In forward pass,
the duration of the activity is counted from the start activity, for example, in the
meaning activity D can start in the 5th week.

Early Finish (EF)
as early start + duration of that activity, for example, duration of activity D

th
and it
takes 2 weeks to complete the activity.

Notes For better understanding, the result of the calculation can be written above each
activity.
---------------------- Duration
---------------------- ES EF
----------------------
---------------------- Activity
Float
----------------------
----------------------
LS LF
----------------------
Fig. 4.11: Float
----------------------
Late Finish (LF)
----------------------
---------------------- calculate late start is opposite to forward pass and is called as backward pass.
---------------------- the last activity or activities (There can be more than one activity at the end of
---------------------- the network diagram). In Fig. 4.10, E is the last activity and as the duration of
---------------------- Late Start (LS)

---------------------- Late start determines how late an activity can be started. This is calculated as
----------------------
---------------------- calculated as 17 - 7 = 10.

Float calculation
----------------------
Float of activity C can be calculated as shown below.
---------------------- First calculate the early start and late start of Activity C:
---------------------- Early start = 2
Late start = 2
----------------------
Float = Late Start - Early Start
----------------------
Substituting the values, we get
---------------------- Float = 2-2 = 0
---------------------- Float of activity D can be calculated as shown below:
First calculate the early start and late start of Activity D:
----------------------
Early start = 5
---------------------- Late start = 8
---------------------- Float = Late start - Early Start
Substituting the values, we get
----------------------
Float = 8 - 5 = 3
Notes

i. Late start a. Activities are represented by nodes
(Rectangles)
ii. Network diagram b. This method is also called activity on arrow
iii. PDM c. Determines how late an activity can be
started
iv. ADM d. Graphical representation of activities
Activity 3
1. Assume that your exams are starting on October 20, 2018. Today is
the October 1, 2018. What will be your approach towards planning-
forward planning or backward planning? Explain with the help of a
Gantt Chart.
2. You are a software project manager. What steps will you take to
ensure that the project activities do not slip on the network diagram?
Summary
In software project management, there are three major constraints: time,
cost and scope. If there is change in scope, then it will change the time
and cost or if we change time, then it will change the cost and scope.
Software can be measured in terms of units such as lines of code, number
of function points.
Predicting the size of a software system becomes progressively easier as
the project advances.
There are various tools and techniques with which we can measure the
size of the software. While determining size, we must consider other
factors such as the language and experience of the programmer.
Software estimation is the process in which the size of the software is
determined in terms of measurable quantity such as LOC, function points
etc.
Function Point Analysis considers the functional complexity of the
software and is independent of language.
COCOMO is an effort estimation technique. Based on complexity,
embedded.

Notes Various network diagramming techniques such as Arrow Diagramming
and Precedence Diagramming are used. Activities are dependent on each
----------------------
---------------------- Scheduling analysis is one of the important tools, which mathematically

determines the critical path that has a considerable impact on the schedule
---------------------- of the project. In the Critical path method, we studied how to calculate
----------------------
---------------------- Keywords
---------------------- Coding: Software lines of code written syntactically in any programming
language
----------------------
Modules:
---------------------- Input: Data accepted by the computer from the user in terms of data entry
----------------------
----------------------
1. Explain the importance of software size.
----------------------
2. Explain various techniques used to measure the software size.
----------------------
3. Discuss the advantage of function point over LOC.
---------------------- 4. Compute the function point value for a project with the following
information:
----------------------
o Number of user inputs: 32
----------------------
o Number of user outputs: 60
---------------------- o Number of user inquiries: 24
---------------------- o
---------------------- o Number of external interfaces: 2

Assume that the complexity adjustment values are average.
----------------------
5. Using the COCOMO model, calculate the effort, duration, number of
---------------------- persons and productivity of a project. The project is simple and of size
250 KLOC.
----------------------
6. The programmer has given pessimistic (P) estimate as 8600, optimistic
---------------------- (O) estimate as 4600 and most likely (M) estimate as 6900 to complete
the given programming assignment. Calculate the average estimate using
----------------------
3-point estimate technique.
---------------------- 7. Compare various size estimation techniques you have learnt.
---------------------- 8. Consider the following data and perform the task asked
---------------------- Successor Activity Preceding Activity Activity Duration

A Start 3
----------------------

B A 4 Notes
C B 8
D A 6
E D 7
F C, E 5
End F 6
a. Draw the network diagram.
b. Find out the critical path.
c. Calculate the duration of each path.
d.
forward and backward pass techniques.

1. False
2. True
3. False

1. The basis for software estimation are
ii. The need for historical data
iii. Measure of work
iv. Complexity
2. Most common estimation technique available
i. Object Point
ii. Delphi techniques
iii. Feature point estimation
i. –c
ii. –d
iii. –a
iv. –b

Notes
Suggested Reading
----------------------
1. Futrell, Robert, Donald Shafer, Linda Shafer. Quality Software Project
---------------------- management.
2. Hughes, Bob and Mike Cottrell. Software Project Management.
----------------------
3. Jalote, Pankaj. Software Project Management in Practice.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
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----------------------
----------------------
----------------------
----------------------

Managing Cost
UNIT
5
Structure:
5.1 Introduction
5.2 Cost Management Overview
5.2.2 What is Project Cost Management
5.3 Preparing Budget of the Project
5.4 Controlling Cost of Software Projects
Summary
Key Words
Suggested Reading
Managing Cost 99
Notes
Objectives
----------------------
----------------------
Explain the importance of project cost management
---------------------- Manage the cost of the project
---------------------- Prepare the project budget
Apply cost controlling techniques to software projects
----------------------
---------------------- 5.1 INTRODUCTION

---------------------- Once the size of the software (FPC or LOC) is estimated, the next important
parameter is the cost of development. Few examples of cost to be considered
----------------------
are personnel costs, hardware costs, software costs, communication, travel and
---------------------- stay costs, training costs, administrative costs etc.
In software project time management unit, we studied how to measure the size
----------------------
of the software and now we are able to estimate the effort required to deliver
---------------------- the project. You are now familiar with the time management concepts such
as activity, duration, WBS and schedule. Understanding of these concepts is a
---------------------- prerequisite for managing cost. Cost is one of the other important constraints
that each project manager has to control. It is the prime responsibility of the
----------------------
project manager to manage the project in the given budget. Project sponsor/
----------------------
scope may not be available at the time of approval of tentative budget. During
---------------------- project scope detailing, some changes may occur in scope and will have impact
on the initial budget.
----------------------
----------------------
---------------------- execute the project within the given scope and cost budget. Accordingly, the
project manager informs the project sponsor/customer whether he can carry out
---------------------- the project in the given budget or may require more funds.
---------------------- You might think that cost management is a one-time activity, but in reality,
due to dynamic behaviour of software, various changes may occur in different
---------------------- stages of development. These changes will affect all the plans, schedules and
---------------------- performed throughout the project.

---------------------- In software development projects, major costs are the cost of resources, training
cost, travelling cost, hardware upgradation and software licensing cost. As the
---------------------- project size increases, cost management becomes more rigorous.
----------------------
----------------------
----------------------

imperative for us to understand the basics of cost management. In this unit, you Notes
basics of cost management and will generate cost awareness and understanding
of fundamentals essential for effective project cost management.
professionals who look after the cost management aspect of the project. Still,
understanding of cost management is not an exception for software project
managers and you must have a clear understanding of the process of cost
estimation.
5.2 COST MANAGEMENT OVERVIEW

In software projects, cost is inherent, non-negotiable, and depends on the
scope. However, since work-time estimates can be negotiated, we do not get an
accurate picture of the cost. When the worker knows that the work-hours will
be negotiated by the boss, s/he pads the estimate to cover up unforeseen delays.
(Padding means adding extra time in estimation). Knowing that the estimate is
padded, project managers try to reduce time estimation to as low as possible.
Here, both (PM and his/ her team) miss the point that estimates have to be based
on facts and not on the negotiation skills of two parties. Both need to understand
done.
accounting and cost accounting.

terms such as cost, price, estimate, budget etc.

What is price?
In general terms, price is the result of an exchange or transaction that takes
place between two parties and refers to what must be given up by one party (i.e.
buyer) in order to obtain something offered by another party (i.e. seller).
Yet this view of price provides a somewhat limited explanation of what price
means to participants in the transaction. In fact, price means different things to
different participants in an exchange. For example, price is commonly confused
with the notion of cost as in “I paid a high cost for buying my new mobile
handset”. Technically, though, these are different concepts, price is what a buyer
pays to acquire products from a seller. Cost concerns the seller’s investment
(e.g. development expenses, manufacturing expense) if the product is being
gain from the transaction. In this unit, we are mainly focusing on the cost
management of the project and not the price.
Managing Cost 101

Notes What is cost?
----------------------
is the value of money that has been used up to produce something or we can
---------------------- simply say that expenses incurred to carry out the task. For example, the amount
paid to the programmer for coding, amount invested in hardware and software
---------------------- setups, amount paid for documentation, amount paid for implementation and
training etc.
----------------------
In a project, we perform various tasks and the cost is associated with each task.
---------------------- There is no task having zero cost. Few tasks and cost we can share among
----------------------
various types.
----------------------
----------------------
cost and indirect cost.
----------------------
Let us understand these types.
---------------------- i. Fixed Cost: Fixed costs are expenses that are not directly dependent on
----------------------
---------------------- not change in proportion to the activity of a project. That means you
have to pay full rent irrespective of the number of hours you utilised the
----------------------
----------------------
---------------------- organisation.
---------------------- ii. Variable Cost:
the activities of the project. Duration and type of the activity decides the
---------------------- cost. For example, hours spent on coding, hours spent on testing. In this
example, the hourly rate varies with the types of activity and the rate of
----------------------
resource performing the activity.
---------------------- iii. Direct Cost: Quite often, projects incur direct expenses such as fees paid
to external consultant or special equipment bought for the projects etc. are
----------------------
billed directly to the project.
---------------------- iv. Indirect Cost: Indirect costs are expenses that can be shared and allocated
across all projects, for example, salary of the senior project manager
----------------------
who is managing multiple projects. The total cost of the project can be
---------------------- calculated by adding all the above costs. However, the proportion of each
cost type is decided by the management. As a software project manager,
---------------------- you must be able to identify and estimate various costs. Before presenting
----------------------
expert and the project to ensure the accuracy of his estimate.
----------------------
----------------------

5.2.2 What is Project Cost Management Notes
Cost management deals with controlling of project resources to perform within
agreed budget. Cost management is a three-step process. In step one, cost of
overall project is prepared. These two steps are performed in project planning
stage while the third step is cost controlling, which is performed throughout the
project. Project cost management includes the processes required to ensure that
the project is completed within an approved budget.
Each organisation has its own cost management policy that deals with
measuring cost performance etc. The project manager must know and very well
understand the cost management policy before proceeding further. As projects
project at the beginning of the project. Software project budgets are an integral
part of business strategy and top management needs to know the funding
requirements of the project well in advance.
Depending on the needs of the organisation, the project manager has to estimate
the cost for various purposes. He has to select the appropriate estimate type.
One of the widely used estimation type is order of magnitude, which is usually
prepared during project initiation phase. Order of magnitude estimation may
100 USD, then actually it can vary from 50 to 200 USD. Conceptual estimates
range from -30% to +50%. Preliminary estimates may range from -20% to
accuracy of the range.

Project cost estimating is usually performed by summing estimates for
individual project elements into a project total. The pieces can vary in size and
number from a few large chunks of a project with known costs to hundreds
or thousands of discrete tasks or individual work packages. The main outputs
of the cost estimating process are cost estimates, supporting details and cost
management plan.
The best way to estimate project cost is to prepare a detailed project schedule
using Microsoft Project (or a similar tool) and to use the resource management
features of that software to identify the types, quantities and phasing of different
types of labour.
If you estimate only the requirements you are sure of, your estimate will usually
be low. If your estimate for the number of source lines of software is uncertain,
you may want to add an uncertainty factor to the estimate (15-35%). It is wise
to add a contingency factor to compensate expected changes or to allocate
management reserves to deal with unforeseen event.
Cost estimates are done for different reasons and the purpose of the estimate
usually imparts a basis to the numbers. “Marketing estimates” are likely to be
Managing Cost 103

Notes low, while good “budget estimates” are likely to be high. When judging the
accuracy of an estimate, you need to know the source of the estimate and the
---------------------- purpose for which it was derived. Cost estimates that hinge on assumptions
about staff or asset availabilities or schedule dependencies outside the manager’s
---------------------- control should be considered areas of cost risk and managed accordingly.
---------------------- As a project manager, you need to understand if your cost estimates are sound
or if you are buying into an inevitable cost overrun due to underestimating. The
----------------------
adverse consequence of a cost estimate, which is too conservative, is that it can
---------------------- kill an otherwise viable project by making it look unaffordable.
Good cost estimating requires a supportive environment in the organisation.
----------------------
One way to help this is to develop projects using standard work breakdown
---------------------- structure categories and then collect actual costs in a historical cost database.
A cost database for software, for instance, could be used to collect data related
---------------------- to cost per line of code, software sizing algorithms, costs for function points or
cost data from bottom-up functional descriptions and tasks.
----------------------
A well-structured cost estimate can become unmanageable after the third or
---------------------- fourth “what-if” iteration unless each change is meticulously documented.
Even after knowing this fact well, experienced cost estimators are constantly
----------------------
reminded of it when trying to reconstruct or explain cost estimates that were
---------------------- prepared some months or years back. It seems that one can never document
a cost estimate too well or record assumptions too thoroughly. An aid to this
---------------------- process is using a PC spreadsheet to prepare your estimate, and then keeping
all the important data and adjustment factors visible in cells, rather than hidden
----------------------
in formulas. If the assumptions, risk factors and data sources are not obvious in
---------------------- your cost estimate documentation, then it is not done yet.
---------------------- Validation of cost estimated

Estimates need validation before they are used for any decision. Based on
----------------------
---------------------- Normally, the project manger makes the estimates and arrives at cost. A third
---------------------- into the following aspects of the software:

----------------------
b. Design, architecture and platform (technical review)
----------------------
c. Process model (development strategy)
----------------------
d. Resource allocations (availability, suitability etc.)
---------------------- e. Outsourcing, training, new purchases, if any
---------------------- f. Risk analysis
---------------------- The objective of such review is to ensure that all inputs to the estimates are
reasonably accurate. Allocation of resources has a considerable impact on the
---------------------- success of the software in terms of quality, deliverables and implementation.
This review is absolutely necessary to ensure that the organisation does not
----------------------
lose business on technical, managerial and price grounds. The review shall to

consider alternative approaches to software development, which may lead to Notes
changes in design, architecture, methology and strategy, affecting the cost and
then the price.
You should also know two more concepts, namely life cycle costing and value
analysis. These two concepts are related to cost management and understanding
of them will help you in making cost related decision.
i. Life Cycle Costing
Product life cycle and project life cycle are two different things. Every product
goes through various stages during its life. These stages are called life cycle
phases. Product life cycle begins with concept exploration and goes through
various stages such as requirement, design, implementation, installation,
called retirement stage. In life cycle costing, the cost of whole life of the
product will be taken into consideration. For example, you can estimate a
down design review cost but during maintenance, you may have to pay extra
cost due to poor design. Ultimately, the whole cost of the product remains the
same. As a project manager, you need to focus on all aspects before giving the
ii. Value Analysis
a less costly way to do the same work. Value analysis requires the systematic
use of techniques to identify the required project functions, assign values to
these functions and provide functions at the lowest overall cost without loss of
performance. If a team is looking at decreasing project cost but maintaining the
same scope, they are performing value analysis.
Value engineering is the practice of trying to get more out of the project in
every possible way. Value analysis improves the “value” of goods or products
of function to cost. Value can therefore be increased by either improving the

function or reducing the cost. In value engineering, the basic functions are to be
preserved and not be reduced as a consequence of pursuing value improvements.
thereby increasing the value to its customers.

It involves developing an approximation or estimate of the costs of the resources
needed to complete a project. Project cost is the total cost of the project.
The project cost is calculated by aggregating cost of all individual activities
performed in a project. For estimating cost of the project, we need to breakdown
the projects into smaller manageable activities. We studied how to decompose
project activities using WBS (Work Breakdown Structure). Once you create
WBS, you need further details of each activity and duration of activity so that
Managing Cost 105

Notes you can calculate the effort required to accomplish that activity. For example,
to design a payroll module, you need 120 hours of java programmer. Here you
---------------------- can calculate the cost of the activity by multiplying effort and the hourly rate of
a java programmer.
----------------------
Effort estimation is a prerequisite to cost estimation. In software projects, major
---------------------- portion of cost is consumed by the effort a human resource puts to deliver that
----------------------
more emphasis is placed on effort estimation. To ensure correctness in effort
---------------------- estimation, we studied various empirical models such as COCOMO in time
management unit.
----------------------
Estimating cost for an activity is simpler than effort estimation and is calculated
---------------------- by multiplying effort in hours by hourly rate of the human resource performing
the activity. Every organisation follows different practices for rate determination,
---------------------- for example, some organisation may take actual rate (the current salary rate of
----------------------
take standard rate (based on market conditions and salary surveys). You may
----------------------
take into consideration lots of other factors such as constraints and assumptions,
---------------------- potential unknown risks etc.
---------------------- For accurate estimation, you need to think in advance about every aspect of
the project. Since estimations are given prior to project execution, you may
---------------------- not have complete information at hand at the time of estimation. As the project
----------------------
Few documents such as project scope statement, work breakdown structure,
---------------------- WBS dictionary, cost management plan etc. need to be considered while doing
---------------------- cost estimation.
Knowing how to estimate cost is not just enough. Depending on the type of the
---------------------- project, you need to select a methodical approach to estimate cost of an activity.
---------------------- For large projects, where thousands of activities are performed by hundreds of
human resource, you can use project management software such as Microsoft
---------------------- Project where you can easily record WBS, Resource information. These tools
provide you ample utilities such as resource calendar where you can check the
---------------------- availability of resource, various rate options such as hourly rates, monthly rates,
---------------------- one time consulting charges etc.
In large projects, costs are being managed at the control account level and not
---------------------- on small individual activity level. For simplicity of understanding, we can say
---------------------- that control account is the main group activity and all other related sub activities
are grouped under that control activity. For example, you can have coding as
---------------------- control account, which can consolidate the individual coding activities.
---------------------- Cost of Quality is one of the other important factors that need to be considered
while estimating. We will study more about cost of quality in the Quality
---------------------- Management unit. Cost of the quality is the cost that will be released in order to
achieve quality. In contrast to this, the costs of the items that are not conformant
----------------------
to quality standards are known as “Cost of poor quality”.

If the performing organisation does not have formally trained project cost Notes
estimators, then the project team will need to supply both the resources and the
expertise to perform project cost estimation activities.
Tools & Techniques for estimating Costs
Tools are the methods or procedures that you can use for simplifying your jobs.
Few commonly used estimation tools are analogous estimation, bottom up
estimation and parametric estimation and reserve analysis.
i. Bottom up estimation
Bottom-up estimating involves estimating individual work items and
summing them to get a project total. Bottom up estimation is an extremely
useful and widely used technique for cost estimation. The technique works
particular component of the project. In this technique, each activity is broken

down into smaller tasks and then each individual task estimates are developed
these smaller components of the work.

The estimates for the smaller individual components are then aggregated to
develop a larger estimate for the entire task as a whole. In doing this, the estimate
for the task as a whole is typically far more accurate, as it allows for careful
consideration of each of the smaller parts of the task and then combining these
carefully considered estimates rather than merely making one large estimate,
which typically will not as thoroughly consider all of the individual components
of a task.
Bottom up estimate provides more accuracy and involves the team who is
performing the actual task. It has few disadvantages such as it takes more time
since it works on the detailed analysis of individual task. Involvement of team
can cause overestimation since team members usually add extra time to their
estimates.
ii. Analogous estimation
Analogous estimation, also called as top-down estimates, is a technique for
estimating a variety of project parameters and measures of scale. The project
parameters that can be measured include those of project cost, project budget,
scope of the project and expected project duration. The project measures that
can be estimated using this technique can range from the size of the project to
the project weight to the complexity. The estimates are made by comparing the
current activity to a smaller activity that took place previously and drawing
comparisons in proportion to that. It is frequently used to estimate the size of
a particular parameter when information as to that particular parameter within
the current project is limited or unavailable until a later date. This estimates
technique uses the actual data of previously done projects of similar nature,
they are typically easier to use and the accuracy of the estimate depends on how
similar the two projects actually are.
These estimates are more reliable when the previous projects are similar in
fact and not just in appearance and the project team members preparing the
Managing Cost 107

Notes estimates have the needed expertise. Analogous estimates are less costly to
---------------------- only need to properly compare the task of the current project with similar task
of previous projects. It needs good understanding and experience to relate the
---------------------- task. Disadvantage of analogous estimate is that as the two projects are not
----------------------
iii. Parametric estimation
----------------------
Parametric estimation is a technique that is essential for any project management
---------------------- team and/or project management team leader, as the use of parametric estimation
provides an invaluable service in the course of the project. Parametric modeling
----------------------
provides an estimate of per line of code for a software development project
---------------------- based on the programming language of the projects using the level of expertise
of the programmers, the size and complexity of the data involved. Parametric
---------------------- estimating refers primarily to an estimation technique, which utilises the
statistical relationship that exists between a series of historical data and a
----------------------
particular delineated list of other variables. Some examples of these variables
---------------------- are the number of lines or code that exists in a software application and other
similar variables. This information is then implemented for the purposes of
---------------------- calculating and demonstrating an estimate for the entire activity parameters.
One valuable aspect of parametric estimation is the higher levels of accuracy
----------------------
that can be built into it, depending on how sophisticated the original data is.
---------------------- Parametric estimates work best when the project being undertaken is highly
---------------------- available within your organisation.

---------------------- iv. Determine Resource Cost Rates
---------------------- The person determining the rates or the group preparing the estimates must
know the cost rates, such as staff cost per hour and bulk material cost per cubic
---------------------- yard, for each resource to estimate schedule activity cost. Gathering quotes is
one method of obtaining rates. Obtaining data from commercial databases and
---------------------- seller published price list is another source of cost rates. If the actual rates are
---------------------- not known, then the rates themselves will have to be estimated.
v. Vendor Bid Analysis
----------------------
Other cost estimating methods include vendor bid analysis of what the project
---------------------- should cost. In cases where projects are won under competitive processes,
additional cost estimating work can be required of the project team to examine
----------------------
---------------------- project cost.

vi. Project Management Software
----------------------
Project management software, such as cost estimating software applications,
---------------------- computerised spreadsheets and simulation and statistical tools are widely used
to assist with cost estimating. Such tools can simplify the use of some cost
----------------------
estimating techniques and thereby facilitate rapid consideration of various cost
---------------------- estimate alternatives.

Notes

1. When the worker knows that the work-hours will not be negotiated by
the boss, s/he pads the estimate to cover up unforeseen delays.
accounting and cost accounting.
objective.
Fill in the blanks.
1. Computerised spreadsheet is an example of ___________.
2. A parametric estimation provides an estimate of ________.
3. Analogous estimation is also called _____________.
Activity 1
1. Take an already estimated project and do validation of cost

estimated. Write your comments and observations.
2. Gather a few Quotations / Cost estimate and check the cost of
resources required for a project.
5.3 PREPARING BUDGET OF THE PROJECT

As a project manager, it is your prime responsibility to prepare project budget
also responsible for managing the project in the given budget. Hence, you must
thoroughly understand the basic concepts of budgeting.
What is Project Budget?
Cost budgeting involves aggregating the estimated costs of individual schedule
activities or work packages to establish a total cost baseline for measuring
project performance. The project scope statement provides the summary budget.
However, schedule activity or work package cost estimates are prepared prior
to the detailed budget requests and work authorisation.
Managing Cost 109

Notes Table 5.1: Cost Budgeting: Inputs, Tools & Techniques and Outputs
Inputs Tools & Techniques Output
----------------------
---------------------- 1. Project scope 1. Cost aggregation 1. Cost baseline

statement 2. Reserve analysis 2. Project funding
----------------------
2. WBS 3. Parametric requirements
----------------------
3. Activity cost estimating 3. Cost management
---------------------- estimates 4. Funding limited (Updates)
---------------------- 4. Activity cost reconciliation 4. Requested changes

estimates supporting
---------------------- details
---------------------- 6. Project schedule
7. Resource calendars
----------------------
8. Contract
----------------------
9. Cost management
---------------------- plan
---------------------- Budget is nothing but a list of all planned expenses. It is a plan describing how
you are going to spend money over time. We can also say that budget is time-
---------------------- phased allocation of money. In other terms, a budget is an organisational plan
stated in monetary terms. The purpose of budgeting is to provide a forecast of
----------------------
---------------------- and how certain activities of the project and plans are carried out. Budget also
---------------------- project against the forecast.
---------------------- Budgets are generally prepared in the planning stage of the projects. Certain
information needs to be at hand before preparing the budget, e.g. cost estimates,
---------------------- project schedule and risk management plan. Budget is not just the total cost
of the project. Funds are usually released in time phases. For example, your
----------------------
---------------------- then while budgeting, the amount of hardware setup cost is shown along with
when that cost is required. Funds to procure new hardware are only released
---------------------- prior to the actual procurement of new hardware.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
Cost Budget Total budget=$530
Management reserve MR=$30
Cost Baseline CB=$500
Contingency reserve CR=$50
Proect Estimate PE=$450
Control account
estimate CAI=$250 CA2=$200
Work package WP1=$150 WP2=$100 WP3=$200

estimate
A1 A2 A3 A4
Activity Estimate
$50 $75 $25 $100
Fig. 5.1: Use of Cost Aggregation to prepare Budget
First, all activity level estimates are calculated. These activities are further
grouped to work at package level, for example, your work package could be
to develop payroll modules, which include three activities- analysis, design
and coding. You can have number of work packages in a project. However,
created. These control accounts further control individual work packages.
of all control accounts will give you the total cost of the project. After this,
contingency reserves are added to the cost of the project (detailed explanation
of reserve analysis is given below). That will give you the cost baseline of the
project.
The term baseline used here is a tool to measure how the performance of the
project deviates from the original plan. All known risks are generally covered
are set aside to mitigate the unknown risks. Adding management reserve to cost
baseline will give you the total budget of the project. In budget, along with the
cost, the expected date on which the fund will be utilised is also shown.
Cost Budgeting: Tools and Techniques
Cost Aggregation
Schedule activity cost estimates are aggregated by work packages in accordance
with the WBS. The work package cost estimates are then aggregated for the
Managing Cost 111

Notes higher component levels of the WBS such as control accounts and ultimately
for the entire project.
----------------------
Reserve Analysis: Reserve analysis is a tool used in budgeting for
----------------------
protect them against cost overrun. In real life, project budget may exceed.
---------------------- There could be various reasons for budget overruns, such as a key person
leaving the project, new technology not completely understood, which
----------------------
could delay the project. Hence while budgeting, you should take enough
---------------------- care of the potential risk and make necessary arrangements for managing
---------------------- hand. To avoid such circumstances, it is wise to make arrangements of

reserve funds. Two types of funds can be added- contingency reserve and
----------------------
management reserve.
---------------------- • Contingency Reserve: The term contingency reserve refers primarily to
----------------------
to be allocated at and above the previously designated estimate amount
----------------------
responsible organisation. However, contingency reserve need not refer
----------------------
of time in man-hours that must be allocated beyond the previously
----------------------
determined quantity of hours required to assure that any overtime or other
---------------------- unexpected hours of work required can be properly compensated for.
----------------------
determined at the outset of a project. However, as a project is ongoing, if
---------------------- it appears that the project will require additional funds or time allocation
---------------------- time to better prepare the organisation for the possibility of their usage at
some point in a project’s life.
----------------------
• Management Reserve: Management reserves are any extra funds to be
---------------------- set aside to cover unforeseen risks or changes to the project. The difference
---------------------- between contingency reserve and management reserve is that contingency
reserve will take care of any known risk that arises. As an example, suppose
---------------------- one of your key persons leaves the job. Then you can arrange another
person and for that, you may have to pay extra time and cost. However,
---------------------- in real life, certain things, the occurrence of which we cannot predict, are
---------------------- called unknown risk. Such unknown risks have considerable impact on
---------------------- destroy your hardware or attack of unknown virus can potentially damage
---------------------- risks and most of the organisations keep contingency plans ready.
---------------------- How to prepare a budget
---------------------- The most basic cost control technique is to develop a project budget and then
track spending against it. On a small project, this can be as simple as having a
---------------------- target cost goal for the total project. You could monitor project costs and sound

the alarm if the percent of money spent exceeds the percent completion estimated Notes
for the project. You could also prepare a time-phased budget, as shown in the
quarters or years. This can provide a budget baseline for tracking actual costs
against periodic budget targets. When the cumulative budgets of estimated
project costs are plotted graphically over time, they usually result in the shape
illustrated, which is sometimes called an S-curve, since it looks like an inclined
‘S’
Budget Spend Plan Tracking
A simple technique for tracking project costs is to develop a weekly or monthly
cumulative budget spend plan and then track actual costs against the plan. The
slope of the spend plan indicates the project expenditure rate, sometimes called
the ’burn rate’. By plotting actual costs against the budget spend plan, you can
see differences between actual spending and the spend plan. This technique
to a funding stream.
Management
Budget Reserve
Ceiling
Spend
Plan
Dollars
Actuals
Months
Fig. 5.2: Planning of Software Project Management
The spend plan can be generated using a project management software tool.
This can also be used to establish a performance measurement baseline of the
budgeted cost of work scheduled. If the project is on schedule, the spend plan
method provides the needed budget status information. If the project shown
were behind the schedule, the project manager would no longer be able to
understand project status from this graph. The budget picture would be worse
than it looks, but it would be impossible to quantify.
project elements are contributing to deviations from the budget plan, a more
rigorous approach to cost and schedule tracking should be employed. The above
diagram links cost and schedule performance and presents them in a form that
facilitates management analysis and presentation.
Managing Cost 113

Notes

----------------------
----------------------
1. Inputs to cost budgeting:
---------------------- a. Cost aggregation
---------------------- i. WBS
---------------------- ii. Resource calendar
iii. Contract
----------------------
2. Tools and techniques used
----------------------
i. Funding limited reconciliation
---------------------- ii. Parametric estimating
---------------------- iii. Reserve analysis
---------------------- iv. Project schedule
3. Output of cost budgeting:
----------------------
i. Cost baseline
----------------------
ii. Reserve analysis
---------------------- iii. Cost management
---------------------- iv. Requested changes
----------------------
---------------------- Activity 2
---------------------- 1. You are working as the assistant project manager. What sort of help
---------------------- will you provide in preparing budget for a software project?
2. Speak to a project manager and collect details of various tools and
----------------------
techniques used for cost budgeting.
---------------------- 3. In which situation will you utilise contingency reserve? Explain
with example.
----------------------
----------------------
5.4 CONTROLLING COST OF SOFTWARE PROJECTS
----------------------
Once the estimation and budgeting task is over, your project can start actual
---------------------- execution and utilisation of the allocated funds. The main objective of any
successful project is to complete the project in the given budget. In reality, cost
---------------------- tends to deviate from the budget and you need to control the cost of the project.
----------------------
check whether your project is on the track. The frequency of checking usually
depends on complexity and size of the project. However, usually during the Notes
planning phase, cost controlling takes place monthly and in the execution phase,
it can be performed weekly. Generally, cost controlling process is performed
when maximum portion of the project budget is being utilised. Controlling
processes measure what was executed against what was planned. If the results
are deviating from the cost baseline, then appropriate action needs to be taken
to bring back the project on track.
Controlling is one of the measure functions of project management. Project cost
control includes monitoring cost performance, ensuring that only appropriate
project changes are included in a revised cost baseline and informing the project
stakeholders of authorised changes to the project that will affect costs. In project
cost management, focus is on cost controlling.
Controlling is an integrated activity. If one of your team members is not
performing well on the given task, you have to take corrective actions from the
performing well. There could be various reasons, such as lack of interest and
motivation, lack of understanding, lack of communication or other HR-related
problems. The controlling process in such a scenario interacts with the HR and
communication management. Control can be established by using various tools
such as progress reporting, performance measurement analysis, performance
reviews, forecasting, variance management, meetings etc.
Project cost control includes the following:
Ensuring requested changes are agreed upon

Managing the actual changes when as they occur
Recording all appropriate changes accurately against the cost baseline
Informing appropriate stakeholders of approved changes
Project cost control searches out the causes of positive and negative variances
and is a part of Integrated Change Control.
We will study two most commonly used cost controlling techniques: progress
reporting and earn value management.
1. Progress Reporting
The progress reporting tool is usually used for controlling time and cost of the
projects. The progress report is a very comprehensive document that describes
what the original plan was, what the current status of the project is and what the
direction and corrective actions for future activities might be. It helps to track
the rate at which work is being completed (productivity) and the quality of work
being done.
Many project managers determine how much work has been accomplished by
asking team members for an estimate of percentage completed for each activity
Managing Cost 115

Notes they are performing. However, the percentage will not give the exact status of
the work being performed. The process is also time-consuming. If your project
---------------------- is planned as per WBS, then instead of percentage, you can use some thumb
rules as below.
----------------------
Activity Completion Rule:
---------------------- and completion, you can measure the progress of project activities. Usually
----------------------
as soon as an activity begins, activity gets credit of 50 and only after completion,
---------------------- activity will get full credit of balance 50. There is no credit in between the
percent. Depending on the project, you can decide what percentage needs to be
---------------------- given to begin an activity and complete an activity.
---------------------- Instead of just relying on the percentage and guesswork, you can use one more
effective tool to control the cost of the project. The technique is known as Earn
---------------------- Value Management technique (EVM). This technique uses various formulas.
Earned value management is a project performance measurement technique
----------------------
that integrates scope, time and cost data.
---------------------- 2. Earn Value Management
---------------------- If your budget spend plan shows you are over spending and your schedule
shows milestones slipping, you can know that you may be in trouble, but you
---------------------- will have no way to make a quantitative assessment of how bad the trouble is.
---------------------- EVMS solves this problem by providing an accurate picture of spending and
accomplishments related to a baseline plan. This enables you to quickly form
----------------------
as giving an insight into areas of the WBS where the problems are occurring.
---------------------- Earned Value Management provides an integrated view of cost and schedule
---------------------- performance.
Budget at Completion (BAC)
----------------------
---------------------- budget for developing an application could be $130, which includes activities
such as dataset design, interface design, coding and testing.
----------------------
Planned Value (PV): Planned value is the budgeted cost for the work scheduled
---------------------- to be completed on an activity or WBS component.
---------------------- Earned Value (EV)
----------------------
---------------------- means, from the planned value example we can say that the project only earned
30$ value from database design activity. Earn value describes the value of the
---------------------- work actually accomplished.
---------------------- Actual Cost (AC)
---------------------- Actual cost is nothing but the actual money you spent on performing the activity.
Though ideally, planned value and actual cost should be the same, in reality
---------------------- they are not same. Sometimes you may spend extra or less. Suppose that your

team takes 10% extra time than planned, then your actual cost will exceed by Notes
10% for that activity.
Cost Variance (CV)
Cost variance is the difference between what we expected to spend and what
was actually spent and calculated as CV = EV – AC. For example, you expected
that cost of database design is 30$ but you actually spend 40$, so the cost
variance will be 30 – 40 = -10. Negative variance indicates that your project
is not performing well on the cost (i.e. project is running over budget) while
positive variance indicates that the project is under budget.
Schedule Variance (SV)
Schedule variance is the difference between where we planned to be in schedule
and where we are actually in schedule. SV is calculated as SV = EV- PV. In the
design, interface design, coding) but as on date, the team only performed
database design activity. From the database design activity, the project earned
30 - 100 = -70. Here negative value indicates that the project is not performing
cost performance is not performing well on cost but performing well on the
but it will increase the cost due to extra resources.

Cost Performance Index (CPI)
It is the ratio of earned value to actual cost. The cost performance index indicates
the rate at which the project performance is meeting the cost expectations
during a given period of time. This is calculated as CPI = EV/AC. In the above
example, EV is 30$ and AC is 40$. Thus by substituting values, we can calculate
CPI as 30/40=0.75.
Schedule Performance Index (SPI)
It is the ratio of earned value to planned value. SPI indicates the rate at which
of the project described in the above example is SPI = 30/100 = 0.3.

Estimate at Completion (EAC)
It is an estimate of what it will cost to complete the project based on performance
to date. This estimate should not be confused with BAC since this estimation
takes place during project execution while the BAC is estimated before
execution. Based on the performance of the project on current date, the EAC
need to be re-estimated. EAC will tell you how much estimate you require
current day onwards to complete the pending activities of the project. This can
be calculated as EAC = AC + (BAC - EV).
In the above example, BAC is 130$, out of which only database design activity
was over. Hence we earned only 30$ value while we spent actually 40$ to
complete the activity. Hence the new estimate to complete the project will be
Managing Cost 117

Notes EAC = 40 + (130 - 30) = 140$. Here the new estimate increased due to more
time taken by the team in database design activity.
----------------------
Estimate to Complete (ETC)
---------------------- This will tell us how much more we will spend on the project. This is the
difference between new estimate and actual spend. Putting values, we will get
----------------------
---------------------- Analysis of Earn Value

---------------------- All the EVM basic calculations involve differences or ratios with respect to
Earned Value.
----------------------
---------------------- variance is favourable (good) and negative is unfavourable (bad).

----------------------
favourable and <1 is unfavourable.
----------------------
If you have good productivity and slow progress, then you are understaffed.
---------------------- If you have low productivity, then either you have too much unplanned work
or you have estimated poorly and the project has more work content than you
----------------------
thought.
---------------------- Earned Value Implementation (Informal Approach)
---------------------- To determine earned-value performance measurements for your project, you
need to accomplish four steps:
----------------------
1. Establish a performance measurement baseline in dollars (or hours). (This
---------------------- will determine the ‘budgeted cost of work scheduled’ for the life of the
project.)
----------------------
2. Determine ‘earned value’ for work accomplished to date. (Earned value is
---------------------- the ‘budgeted cost of the work performed’.)
---------------------- 3. Relate earned value to the budgeted cost of work scheduled.
4. Relate ‘actual cost of work performed’ to earned value.
----------------------
These four steps provide data to present a comprehensive picture of project cost
---------------------- and schedule performance.
----------------------
and complexity. One should select the appropriate level of the WBS for data
---------------------- gathering and appropriate means for determining earned value. This can range
---------------------- from a few top-level categories where earned-value is determined from percent
completion estimates to projects where earned value determination is pre-
----------------------
milestones or subtasks within tasks.
----------------------
After the performance measurement baseline is determined, project status
---------------------- should be evaluated to assess earned value for tasks in progress and completed.
Rules for determining earned value for each work package may be established
---------------------- during initial cost/schedule control system implementation.

Earned Value Management Example Notes
Consider that you are the project manager and working on a software project
comprising of four major activities: Analysis, Design, Coding and Testing. The
tasks and percentage of their completion. Highlighted dark vertical line shows
the date on which project progress is measured.
Total duration of the progress
(D)day on which progress is measured
Analysis 100% 30$

Design 80% complete 40$
Coding 70% 80% 20$
Testing 15% 10$
Fig. 5.3: Example of Earned Value Management

The percentage of task completion is shown inside the box of each activity. Let
us say budgeted cost of activity Analysis = 30$, Design = 40$, Coding = 20$
progress was measured), while 80% of coding and 15% of testing activity was
activity analysis was 100% complete, 80% design activity complete, 70%
coding activity complete and testing was not yet started.
Planned value can be calculated by summing values of all activities to be
that planned value of analysis and design is to be taken as 30 and 40 respectively
planned value of testing activity is 15% of $10, i.e. 1.5.
rounding we get $88.

(Here, for simplicity we rounded but in practice, how much to round, at what
level to round etc. will be decided as per the cost management plan.)
As Analysis activity was 100% complete, project earned value is $30.
As design activity was only 80% complete, we earned only 80% of $40, that is
$32. As coding activity was only 70% complete and as 80% was expected to be
value from testing activity.
Managing Cost 119

Notes Thus, by adding all the earned values, we get total earn value = EV = 30 + 32
+ 14 + 0 = $76. Actual cost is taken from the actual money spent on the project
---------------------- till date. Let us say project actual cost was $85.
----------------------
EAC.
----------------------
Schedule variance SV= EV- PV = 76-88 = -12
---------------------- Schedule performance index = SPI = EV/PV = 76/88 = 0.86
---------------------- Cost variance = CV= EV- AC =76 - 85 = -9
---------------------- Cost performance index = CPI = EV/AC = 76/85 = 0.89

Estimate at completion = EAC = AC + (BAC-EV) = 85 + (100-76) = 109
----------------------
Estimate to Complete = ETC = EAC- AC = 109 - 85 = 24
----------------------

---------------------- i. Earn Value a. Difference between what we expected
Management to spend and what was actually spent
----------------------
ii. Budget at completion b. Provides an integrated view of cost and
---------------------- schedule performance
iii. Actual cost c. Describes the value of the work actually
----------------------
accomplished
---------------------- iv. Cost variance
project
---------------------- e. It is the ratio of earned value to actual
---------------------- cost
----------------------
Activity 3
----------------------
---------------------- 1. Interpret the EVM values of above illustrated example and comment
on the project progress.
----------------------
2. For a project, earned value = 350, actual cost = 400 and planned
---------------------- value = 325. Calculate the cost variance, schedule variance and
cost & schedule performance index. Interpret how the project is
---------------------- performing on cost and schedule.
----------------------
----------------------
----------------------
----------------------

Summary Notes
Managing a project in the given budget is the responsibility of the project

manager. In the planning stage, the estimation and budgeting part of the
project is performed while cost controlling activity is usually performed
throughout the project.
There are various cost estimation tools and techniques such as bottom
up estimation, analogous estimation and parametric estimation. An
appropriate application of the tool is the responsibility of the PM and
based on the project size, complexity and available date, he can choose
the right tool.
activities such as communication and time management.

Budget is a time-phased allocation of funds that we spent on a project.
Budgets are prepared by aggregating the cost of individual activities of
the WBS. To mitigate known and unforeseen risks, some reserves are kept
aside for managing the consequences of the risk. Two types of reserves
are kept aside- management reserve and contingency reserve.
Cost of the project can be controlled by taking reviews, meetings,
performing performance analysis and progress reporting.
EVM tool is used for performance analysis.
Keywords
Estimation: Assessment of project
Validation:
Project Cost: The amount that is got after summing up all values
Decompose: Breakdown of processes
1. Explain the importance of project cost management.
2. Comment on the need of reserve analysis.
3. Compare the advantages and disadvantages of each estimation type.
4. What information do you require to prepare the budget?
5. Discuss the factors to be considered while preparing the budget.
results.
Managing Cost 121

Notes Answers to Check your Progress

1. False
---------------------- 2. True
---------------------- 3. True
---------------------- Fill in the blanks.

1. Computerised spreadsheet is an example of project management software.
---------------------- 2. A parametric estimation provides an estimate of per line of code for a project.
---------------------- 3. Analogous estimation is also called top down approach.

----------------------
1. Inputs to cost budgeting:
---------------------- ii. WBS
---------------------- iii. Resource calendar
iv. Contract
----------------------
2. Tools and techniques used
---------------------- i. Funding limited reconciliation
---------------------- ii. Parametric estimating
iii. Reserve analysis
----------------------
3. Output of cost budgeting:
---------------------- i. Cost baseline
---------------------- iii. Cost management
iv. Requested changes
----------------------
---------------------- i. –b
---------------------- ii. –d
iii. –c
----------------------
iv. –a
----------------------

---------------------- 1. Hughes, Bob and Mike Cottrell. Software Project Management.
---------------------- 2. Jawadekar, Vaman S. Software Engineering Principles and Practice.
---------------------- 3. A Guide to the Project Management Body of knowledge

Managing Quality
UNIT
6
Structure:
6.1 Introduction
6.2 What is Quality
6.2.1 Quality Principles
6.3 Quality Planning
6.4 Quality Assurance and Quality Control
6.4.2 Quality Control (QC)
6.5 Cost of Quality
6.6 Quality Management Tools
6.7 Industry Quality Standards/ Models
Summary
Key Words
Suggested Reading
Managing Quality 123

Notes
Objectives
----------------------
----------------------
Describe the basics of quality management
---------------------- Discuss the importance of quality planning and its tools
---------------------- Differentiate between quality assurance and quality control
Explain quality management tools
----------------------
Describe various quality management standards
----------------------
----------------------
6.1 INTRODUCTION
----------------------
In this unit, we will explore the concepts of software quality management and
---------------------- study the various tools and techniques used to manage the quality of software.
----------------------
of a customer when his application software does not work in an important
---------------------- meeting? Or when he is not able to connect to the internet when he desperately
needs it? We come across such situations many a times. The root cause of this
----------------------
entire problem is lack of quality. Due to advancement in technology day by
---------------------- day, we rely totally upon the use of computers. Everything from buying pizza
to booking online tickets (travel/movies etc.) to internet banking can be done
---------------------- with a single click of the button. Therefore, we cannot afford delays, erroneous
results due to poor quality. It wastes our valuable time as well as money. Hence,
----------------------
---------------------- task.
One needs to understand the reasons behind deterioration of quality. How do
----------------------
defects originate? How can we control defects? Can we get high quality product
---------------------- in less amount? Such are the basic concerns of quality management. These
problems need to be addressed in quality management. Quality deteriorates
---------------------- basically due to variation in parameters, process etc. Variation means no
two things are exactly alike. Variation is inherent in every human creation.
----------------------
For instance, a program written for adding two numbers developed by two
---------------------- programmers is not alike, unless and until it is copied. Though their output
---------------------- become more apparent when we perform large and complex calculations. A
small defect in applications such as internet banking will cause loss of thousand
----------------------
million dollars. Similarly, in applications such as nuclear control, life saving
----------------------
----------------------
Quality is integral to every product we make or buy. Software products are
---------------------- not an exception to this. Our customers always expect the best quality of the
product. For the customer, quality is the satisfaction, comfort and reliability.
----------------------

Better quality can be achieved by proper quality planning, quality control and Notes
quality assurance.
Due to competitive advantage, importance of quality is recognised by every
industry. Various quality theories have been developed by Joseph Juran, W.
Edwards Deming and Philip Crossby. Quality management is continuous
always emerging in software industry to manage the quality of software. In this

unit, we will study the basic processes of quality management- quality planning,
quality control and quality assurance along with various tools.
6.2 WHAT IS QUALITY

A product is a quality product if it is - defect free.
Basically a Defect free software product is a product which will give you
the actual results as expected from the application.
Types of Defects:
a) Arithmetic Defects: Developers usually makes mistakes while calculation
or doing some arithmetic operations.
b) Logical Defects: These defects are usually caused during the
implementation phase by the programmers or software developers.
c) Syntax Defects: These defects arise while writing the code. Developers
d) Multi-threading Defects: These defects arise when the software tends to

perform multiple task simultaneously which may lead to starvation or
system deadlock.
e) Interface Defects: These defects are the errors caused during the interaction
between the user and the software application.
f) Performance Defects: These are the defects where the software doesn’t
meet the user requirement or the application does not perform as expected.
There are different views of quality. From the developer’s perspective, quality
The customer’s view on quality states that quality means meeting the customer’s
needs, regardless of whether the requirements were met. This is referred to as
In simple terms, Quality means the characteristics or attributes of software. As
These expectations are usually expressed in terms of explicit requirement,

for example, we expect that a ‘calculator’ application should perform all
computation. If your calculator application does all computations accurately,
we can say that the application meets the quality. Here only one requirement
has been mentioned.

Notes However, in reality, there could be lot of implicit and explicit requirements,
for example, the precision and the length and size of input data, features such
----------------------
he can explicitly mention them. However, he cannot explicitly express certain
---------------------- expectations, for which he is not sure e.g. how the interface (graphical user
---------------------- interface) should be, what buttons it should have etc.
The totality features of a product, process or service bear on its ability to satisfy
----------------------
the stated or implied needs.
---------------------- Unlike physical entity, measurement of software characteristic is somewhat
----------------------
identify the characteristics of the software. For example, we can easily identify
---------------------- the characteristics of physical entity such as length, width, height, grade of
material, colour etc.
----------------------
As software technology will grow mature, we will have more concrete methods
---------------------- to identity and measure the characteristics of software. Many researchers in
---------------------- management with which we can measure the quality of the software.
---------------------- 6.2.1 Quality Principles
---------------------- Everyone is responsible for quality, but it is the responsibility of the senior
management to emphasise and initiate the quality improvement process and
---------------------- then take it down through the organisation to the individual employees.
---------------------- The following are three essential quality principles that must be in place for
quality to happen:
----------------------
1. Management is responsible for quality: Quality cannot be delegated
---------------------- effectively. Management must accept the responsibility for the quality
---------------------- only a catalyst in making quality happen. It assists the management in

building quality information systems by monitoring quality and making
----------------------
recommendations to management about areas where quality can be
---------------------- improved. As the quality function is a staff function, not management, it
cannot dictate quality for the organisation. Only management can make
---------------------- quality happen.
---------------------- 2. Producers must use effective quality control: All of the parties and
activities involved in producing a product must be involved in controlling
---------------------- the quality of those products. This means that the members in the project
team will be actively involved in the establishment of their own standards
----------------------
and procedures.
---------------------- 3. Quality is a journey, not a destination: The objective of the quality
program must be continuous improvement. The end objective of the
----------------------
quality process must be customer satisfaction.
---------------------- Perception on principles of quality varies from organisation to organisation and
----------------------
However, we can apply certain guidelines that are generally accepted and that
can help us in better management of software quality. These are: Notes
All software must meet the explicit and implicit requirements of the
customer. Prevention over Inspection approach should be taken to avoid
quality defects than to inspect and correct defects. Correcting changes
later on in software will have considerable impact on the project.
Maintain the quality of product as well as the project. Avoid gold plating:
It means giving additional things to customer than required. Giving extra
things does not mean you are giving extra quality. Gold plating should not
be confused with the quality. It is important to give only what is required
and it is most important to deliver a defect-free software.
Quality principle should align with the principles of the organisation.
Involvement of stakeholders from top to bottom management and at
certain point of time the involvement of your customers.
Before you start planning quality, you must know what different factors can affect
software quality. McCall and his colleagues proposed a useful categorisation of
factors that affect software quality. Some of these factors are:
a. Correctness:
b. Reliability: It is the extent to which a program can be expected to perform

its intended function with required precision.
The amount of computing resources and code required
application with available resources such as memory, processor, disk etc.

We know that processing speed of the application can be increased to a
programs will give equal speed with the available resources.

d. Integrity: It is the extent to which unauthorised access to software or data
can be prevented.
e. Usability: It is the effort required for learning, operating, preparing
input and interpreting output of a program. The higher the usability of
the software, lesser is the operational complexity. This factor has more
concern with the end user than the technical person who is developing the
software.
f. Maintainability:
in an operational program. Maintainability is the immediate concern
of the organisation that is developing software. Over the period, the
software undergoes changes due to change in business logic or changes in
customer process or because the customer may need extra features. In all
cases, previously written program needs to be re-written. If the program
the same programmer or other programmers to remember the logic and

Notes implement changes. Highly maintainable programs are well documented
and structured.
----------------------
g. Testability: It is the effort required for testing a program to ensure that it
---------------------- performs the intended function.
h. Flexibility: It is the effort required for modifying an operational program.
----------------------
---------------------- place, you have to make changes in many other places that are integrated
with that process.
----------------------
i. Portability: It is the effort required for transferring a program from one
----------------------
---------------------- j. Reusability: It is the extent to which a program can be used in other

applications related to the packaging and scope of the functions that
---------------------- program performs. For example, customer class is required in most of the
transactions. Your program should allow you to reuse the same code in
---------------------- other modules.
---------------------- k. Interoperability: It is the effort required to couple one system with
another.
----------------------
After studying the quality factors, we also need to understand what software
---------------------- quality means.
----------------------
to explicitly stated functional and performance requirements, explicitly
---------------------- documented development standards, and implicit characteristics that are
expected of all professionally developed software.”
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes

1. Customer’s perspective on quality means meeting requirements that

1. Which of the following are the key principles of quality?
i. Management is responsible for quality.
ii. Developers are responsible for quality.
iii. Gold plating is essential.
iv. Producers must use effective quality control.
v. Quality is a destination, not a journey.
vi. Quality is a journey, not a destination.
i. Integrity a. It is the effort required for modifying an
operational program.
ii. Usability b. It is the effort required to couple one system
with another.
iii. Flexibility c. It is the effort required for learning, operating,
preparing input and interpreting output of a
program.
iv. Reusability d. It is the extent to which unauthorised access
to software or data can be prevented.
v. Interoperability e. It is the extent to which a program can be
used in other applications.
Activity 1
List the quality factors that you will assess for a search engine.
6.3 QUALITY PLANNING

Quality planning is an essential process in quality management. Quality
planning process ensures that the resulting product is of acceptable quality.
Without proper plan, you cannot establish control and measure the progress of
the project. Quality planning gives clear direction to the project and you will
have more visibility towards your objective.

Notes Planning is a process that addresses two questions: What is quality objective of
the project? And how am I going to achieve that objective? For example, one
---------------------- of your quality objective could be ‘all source code should be maintainable’. To
maintain the source code, you need to perform various activities such as detailed
----------------------
---------------------- team to use standard source code template and use standard program structure
such as convention for writing variables, comments etc. Designing standards
---------------------- template, conducting source code reviews, checking whether program written
---------------------- planning.
---------------------- Now when should you perform the quality planning process? To answer the
questions, you need to know what information you require to perform quality
----------------------
----------------------
of your organisation etc. You can get customer’s functional as well as quality
---------------------- requirements, acceptance criteria etc. in the project preliminary scope statement.
Hence, the quality planning process generally starts after requirement gathering
----------------------
phase and before execution.
---------------------- We just discussed about creating a standard template. Let us now understand
what standards are.
----------------------
Standards are basically guidelines or procedures. By applying the standards,
---------------------- we can assure that quality can be achieved. These standards do not provide
you what should be quality of your project. However, standards provide you
----------------------
how to standardise the process so that you can achieve desired quality. You
---------------------- can adopt standards such as ISO or develop your own organisational standards.
For example, you can set standards like following standard templates for
----------------------
----------------------
---------------------- detailed procedure to maintain the standard. You can provide templates along
with the description of how to use those templates.
----------------------
A lot of information is generated during the quality planning process, which in
---------------------- turn generates various output documents. Let us have a look at these.
---------------------- Outputs of Quality Planning

Following information will be generated as the output of quality planning:
----------------------
• Quality Management Plan (QMP): QMP describes how the project
----------------------
process. As per organisation and project needs, a broad plan will be
----------------------
---------------------- • Quality Metric:

measured. For example, instead of just saying that system should give
---------------------- quick response to end user queries, quality metric might specify that a
----------------------

system must respond within two seconds to 99% of all requests up to 100 Notes
concurrent users.
• Quality Checklist: A checklist is a quality planning output created to
ensure that all steps were performed in proper sequence and no step was
processes are checked in quality control process.

• Quality Baseline: The quality baseline includes the quality objectives
and plan for achieving those objectives.
Let us discuss various tools and techniques that you can use in the quality
planning process:
achieve the quality, you need to spend extra 10000 dollars. Here, the cost of
quality planning process.

2. Benchmarking
Benchmarking can be used to generate ideas for quality improvement by
projects or products within or outside the performing organisation.

Benchmarking is the process of comparing the business processes and
performance metrics, including cost, cycle time, productivity or quality, to another
business process that is widely considered an industry standard benchmark or
best practice. Benchmarking provides a snapshot of the performance of your
business and helps you understand where you are in relation to a particular
per unit of measure, productivity per unit of measure, cycle time of x per unit
of measure or defects per unit of measure) resulting in a metric of performance
that is then compared to others.
and mature processes have collected metrics on the various software

development projects. These include the time and effort required to develop
applications on various platforms and in various business domains. Based on
this data, benchmarks are created. There is no single methodology available for
benchmarking. The wide appeal and acceptance of benchmarking has led to the
emergence of various benchmarking methodologies.
Usually, following benchmarking processes are followed:
a. Select the parameters for benchmarking. For example, number of defects
per thousand lines of code.
b. Identify partners or projects with whom you want to compare your
standards.

Notes c. Get the data relevant to the parameters.
d. Communicate new benchmarking goals with team.
----------------------
e. Review and adjust.
----------------------
f. Implement new standards in your organisation.
---------------------- 3. Design of Experiments
---------------------- Design of experiment is a statistical method that helps in identifying factors
---------------------- most important aspect of this technique is that it provides statistical framework
for systematically changing all of the important factors instead of changing the
----------------------
factors one at a time.
----------------------
----------------------
---------------------- 1. _________ process ensures that the resulting product is of acceptable

quality.
---------------------- 2. __________ are basically guidelines or procedures.
---------------------- Multiple Choice Single Response
---------------------- 1. Which of the following techniques compares project practices/
characteristics to those of other projects or products within or outside
---------------------- the performing organisation?
----------------------
ii. Benchmarking
----------------------
iii. Design of experiments
---------------------- iv. Quality metrics
----------------------
Activity 2
----------------------
---------------------- 1. As a Quality Assurance manager, what are the various steps you
will take to prepare an effective quality plan?
----------------------
2. Discuss different types of defects. What is defect, bug and a fault
---------------------- with respect to software product,explain with suitable examples.
----------------------
6.4 QUALITY ASSURANCE AND QUALITY CONTROL
----------------------
----------------------
development life cycle is executed, what standards are to be applied to the
---------------------- process etc. We will now discuss what quality assurance and quality control is.
---------------------- Let us begin with an example. You may decide that requirement gathering
team should follow the standard template for collecting requirement in proper
format, coding team should follow the standard programming template where Notes
variable declaration and naming standards etc. are mentioned. These and other
for process improvement.
achieve desired quality. There is need to check whether the team is following
standards. Many a times, it so happens that the team may not properly understand
how to use those templates. It involves taking responsibility for quality during
the project as well as at the end of the project.
Sometimes, processes need to be revised. Thus, quality assurance is a continuous

process executed throughout the life cycle of the project. QA is an application
of planned systematic quality activities to ensure that the project will employ all
process needed to meet the desired quality.
an item or product conforms to established technical requirements”. Thus,

Quality Assurance consists of the following:
1. A set of planned systematic activities that are essential to ensure that
a component, module or system conforms to established technical
requirements.
2. All actions that are taken to ensure that the development organisation
delivers project / products that meet performance requirements and adhere
to standards and procedures.
3. The policy, procedures and systematic actions established in an
data integrity and accuracy throughout the life cycle of the data.
expected individually and collectively.

Quality assurance performs quality audits and process analysis techniques to
ensure quality.
• Quality Audit: Quality audit is the process of conducting structured and
independent technical reviews. Review is a way of using the diversity
of a group of people to point out needed improvements in the product
improvement is either not desired or not needed. Many different types of

reviews can be conducted, for example, an informal meeting with your
team members to discuss technical problems. A formal presentation of
software design to an audience of customers, management and technical

Notes staff is also a form of review. Formal review is sometimes also called as
Technical Walkthrough.
----------------------
• Process Analysis: Process analysis is a part of continuous process
---------------------- improvement. In this process, each process is analysed as per the process
improvement plan and suggestions are given for further improvement.
---------------------- This analysis also examines the problems experienced. Process analysis
uses root cause analysis technique to determine the underlying cause that
----------------------
leads to poor quality.
---------------------- 6.4.2 Quality Control (QC)
---------------------- We know that quality deteriorates due to variation. Controlling variation is
the main objective of quality control. Thus, quality control is the series of
---------------------- inspections, reviews and tests. These activities are performed throughout the
life cycle of the project. For example, during project planning, quality control
----------------------
might measure how long it takes to plan the project or measure other areas
---------------------- of planning performance. However, much of the quality control occurs at the
time of monitoring during execution. Quality control includes a feedback loop
---------------------- to the process that created the work product. The feedback loop is essential to
minimise the defect produced.
----------------------
----------------------
---------------------- automated, entirely manual or a combination of automated tools and human

interaction.
---------------------- A QC system is designed for the following:
---------------------- To provide regular check to ensure data correctness, completeness and
integrity.
----------------------
To distinguish the errors and to address them.
----------------------
To document and record all the quality control processes.
---------------------- The Quality Control Processes use various tools to study the work completion.
If the work completion is found unsatisfactory, it may be sent back to the
----------------------
----------------------
completion is accepted and released to the clients.
----------------------
---------------------- Quality Assurance is an activity that establishes and evaluates the processes that
----------------------
product produced meets the standards.
----------------------
Let us see a few differentiating points between QA and QC.
---------------------- Table 6.1: Difference between QA and QC
---------------------- Quality Assurance Quality Control
i. Relates to establishing
---------------------- processes service

ii. Sets up measurement programs Notes
to evaluate processes attributes exist or do not exist in a
processes and improves them purpose of correcting defects

iv. Is a management iv. Is the responsibility of the
responsibility, frequently developer
performed by a staff function

1. Quality Control system is designed for which of the following?
i. To provide regular check to ensure the data correctness,
completeness and integrity
ii. To perform quality audits and process analysis to ensure quality
iii. To distinguish the errors and to address them
iv. To document and record all the quality assurance processes
Fill in the blanks.
1. _________________ is a part of continuous process improvement.
defects.
3. Quality assurance is a management responsibility.
Activity 3
industry to minimise the defects and ensure that the project is free of defects.
6.5 COST OF QUALITY

A customer is never ready to pay extra cost for high quality and it is the
responsibility of the project manager and his team to manage the project in the
given budget and deliver high quality. During the project, you need to balance
the additional cost of quality. Initially, quality was considered an integral
responsibility of the development team. No additional activities were carried
out for maintaining quality. Due to lack of quality procedures, the project cost
considerably increased for removing the defects in later stages. Over the period,

Notes software industry realised that there is a need to maintain separate quality
activities to ensure quality and minimise defects. Quality helps in increasing
---------------------- customer satisfaction as well as reducing cost of project owing to less rework.
---------------------- Thus, Cost of Quality is a term used to quantify the total cost of prevention and
appraisal and costs associated with the production of software.
----------------------
---------------------- Appraisal + Cost of Failure”.

Additional quality activities such as quality training, technical reviews etc.
----------------------
need more resources that lead to additional cost burden on the project. Hence,
---------------------- it becomes important to know the cost of quality. Cost of quality is broadly
divided into two types - Cost of conformance and Cost of non-conformance.
----------------------
1. Cost of conformance: In order to meet the quality standard, additional
---------------------- activities need to be carried out, e.g. quality training, quality planning,
conducting formal technical reviews, maintaining documentation. These
----------------------
---------------------- conformance. These costs primarily go to preventing defects that can be

found in later stages of projects. This preventive cost may reduce your
---------------------- cost of reworks and repairs in later stages.
---------------------- 2. Cost of Non-conformance: This is sometimes also called failure cost.

That means if we are not able to prevent defects, we have to pay extra
----------------------
internal failure cost and external failure cost. Internal failure costs are
----------------------
---------------------- cost includes cost of rework and repair. External failure costs are the costs
associated with defects found after the product has been shipped to the
---------------------- customer. Examples of external failure costs are complaint resolution,
product return and replacement, support etc.
----------------------
---------------------- and repair a defect increases dramatically as we go from prevention to detection

and from internal failure to external failure. As a rule, we must know that the
---------------------- cost of conformance should be less than cost of non-conformance. We cannot
---------------------- afford to pay 1000 dollars to prevent a defect of 100 dollars.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes

1. Cost of Non-conformance is sometimes also called failure cost.
costs?
i. Cost of prevention
ii. Cost of appraisal
iii. Cost of defect
iv. Cost of rework
v. Cost of failure
Activity 4
Prepare a report on cost of quality for a web-based sales system.
6.6 QUALITY MANAGEMENT TOOLS

There are seven basic quality management tools that you can use in your project
to control the quality. We will now discuss these in brief.
1. Cause and Effect Diagram
Cause and effect diagrams were proposed by Kaoru Ishikawa in the 1960s. He
pioneered quality management process in the Kawasaki shipyards and in the
process, became one of the founding fathers of modern quality management.
Due to his work, these diagrams are also known as Ishikawa diagrams. They
These diagrams show how different factors relate and might be tied to potential
problems. In quality control, cause and effect diagrams are used as a part of
an approach to improve quality by identifying quality problems and trying to
uncover the underlying causes.
potential defects in system installation.

Notes Software
---------------------- OS Compatibility
Legacy System
---------------------- Installation Method
----------------------
HW Installation
----------------------
SW Installation Less Primary & Secondary Memory
----------------------
Lack of Training Hardware
----------------------
---------------------- Fig 6.1: Example of Cause and Effect Diagram
---------------------- systems (for example, your new software does not establish connectivity with
---------------------- existing legacy system due to data incompatibility), lack of training causing
incorrect hardware and software installation and the new version of the
---------------------- application software not being supported by existing operating system. Also
---------------------- installed.
---------------------- Once you identify the root cause/s, you can easily remove it. Pictorial
representation will help the team in organising thoughts and help in stimulating
----------------------
---------------------- discussion.
2. Control Charts
----------------------
Control charts are mainly used in statistical quality control. This chart helps
---------------------- in deciding whether the process needs to be controlled. If the process is in the
statistical limit, then it need not be corrected. Control charts depict whether the
----------------------
process is in the limit or out of control. In this technique, sample data is taken
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Fig 6.2: Sample Data plotted on the Graph Notes
Let us quickly look at the different parts of the diagram.
• Upper and lower control limits: These limits indicate the acceptable
range of variation of process. These limits are generally shown in dotted
lines on a control chart. The acceptable range of measurement between
upper and lower control limit is usually set by the project manager or
the stakeholders based on the organisation quality standards. Data
points within this range indicate that the quality is within control. Data
range outside this range means process is out of control and needs to be
corrected.
• Mean: The middle bold line in control chart indicates mean. Mean
indicates acceptable range of variation.
• Every organisation has their own standards that
mention that only two minor errors are allowed per module. As these
limits are provided by the customer, they may appear inside or outside the
upper and lower limits that your organisation has set for the project.
• Out of control: The basic purpose of the control chart is to understand
which process is out of control and this can be analysed from the control
chart. In two types of circumstances, process is said to be out of control
when all data points fall outside the upper and lower control limit.
Rule of seven: The rule of seven is a rule of thumb or heuristic. If seven non-
random data points appear in series on one side of mean, then the process may
be out of control since.
Fig 6.3 : Rule of Seven
random and though they appear within upper control limit, still the process may
be out of control and need to be corrected from deviation.

Notes 3. Flow-charting
While planning quality, you need to know what the processes are, how they are
----------------------
interlinked with each other and what the inputs and outputs of the process are.
----------------------
chart graphically represents a process. Flow-charting technique can be used in
----------------------
----------------------
defect may appear.
---------------------- 4. Histogram
---------------------- Histogram is another statistical tool used in quality control. It shows data such
as number of severe defects, minor defects in bar charts. Each bar represents
---------------------- an attribute or characteristic of a problem or situation. The height of a bar
represents the relative frequency of the characteristics. Based on height and
----------------------
width of the bar, we can identify root causes of the problem. When measuring
---------------------- a process, it often occurs that the measurements vary within a range of values.
By understanding how these measurements vary, the effects of the process and
---------------------- changes made to it can be better understood.
---------------------- The Histogram shows the frequency distribution across a set of measurements
as a set of physical bars. The width of each bar is constant and represents a
----------------------
---------------------- bar is proportional to the number of measurements within that cell. Each bar
gives a visual impression of the number of measurements in it and together
----------------------
shows how the distribution of measurements can be seen far more clearly in the
---------------------- Histogram than in a table of numbers.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig. 6.4: Distribution of Measurements seen in a Histogram
----------------------
---------------------- to be able to give a usable shape to the distribution. The number and width
----------------------

the bars are too wide, there will be too few bars to give a useful shape to the Notes
distribution.
Problems may be indicated by the distribution being naturally non-bell-shaped
or by problems with the measurement. When a distribution differs from the
of this.
5. Pareto Chart
Vilfredo Pareto developed the Pareto chart to analyse the problem. This chart
display the values in descending order from left to right and the line graph
shows the cumulative total of each category. The left vertical axis represents
the frequency of occurrences and right vertical axis represents the cumulative
total of occurrences.
The Pareto diagrams are conceptually related to Pareto’s Law, which holds
that a relatively small number of causes will typically produce a large majority
of defects or problems. This is also referred as the 80/20 principle, where 80
percent of the problems are due to 20 percent of the causes.
Given a set of recurring problems, it is unlikely that each problem will occur
the same number of times in any one period. In fact, it is common that a few
problems will occur far more often than the rest put together. This unequal
distribution occurs in many situations and can be used to single out the ‘vital
few’ from the ‘trivial many’.
The following diagram shows a typical Pareto chart. The Pareto Chart is simply
a Bar Chart in which the bars are sorted into size order, with the highest bar on
the left, as shown below.
Fig. 6.5: Pareto Chart

This not only shows the absolute priority of each bar, through its position in
the chart, but also its relative priority, through its height as compared with the
other bars.
As the Pareto chart is often used for decision-making, it is an important part
of building a Pareto chart to identify the right item to measure and show on
the chart, as different measures may well result in the bars to be ordered quite

Notes differently. The purpose of the Pareto chart is to highlight the most important
among a (typically large) set of factors. In quality control, it often represents
---------------------- the most common sources of defects, the highest occurring type of defect or the
most frequent reasons for customer complaints and so on.
----------------------
In a stable process, the order of the bars may be expected to remain constant.
---------------------- Thus, if the order of the bars changes with successive measurements, this may
----------------------
Improvements (i.e. changes in the process) will often result in the order of
---------------------- the bars changing. If the improvements are maintained, the new bar order will
remain stable.
----------------------
Pareto Charts may have different overall ‘shapes’. The ‘spiky’ Pareto Chart is
---------------------- the most useful, as it enables an easy selection of items to carry forward for
further action.
----------------------
6. Run Chart
---------------------- A run chart, also known as a run-sequence plot is a graph that displays observed
---------------------- data in a time sequence. Often, the data displayed represent some aspect of the
output or performance of a manufacturing or other business process.
---------------------- If you want to look at the history and pattern of variation, you can use run chart.
---------------------- A run chart is a line graph that shows data points plotted in the order in which
they occur. Over time, a process undergoes some changes, some processes are
---------------------- further improved and some need to be improved. These trends can be shown
and analysed with the help of a run chart. Trend analysis involves mathematical
---------------------- treatment to data to forecast future outcomes based on historical results. Trend
---------------------- analysis can be used to monitor the cost, schedule and technical performance.
7. Scatter diagram
----------------------
When investigating problems, typically when searching for their causes, it may
---------------------- be suspected that two items are related in some way. For example, it may be
suspected that the number of defects in software is related to the amount of
----------------------
overtime that people are working.
---------------------- The Scatter Diagram helps to identify the existence of a measurable relationship
between two such items by measuring them in pairs and plotting them on a
----------------------
graph, as below. This visually shows the correlation between the two sets of
---------------------- measurements.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
Fig. 6.6: Scatter Diagram

If the points plotted on the Scatter Diagram are randomly scattered, with no
discernible pattern, then this indicates that the two sets of measurements have
no correlation and cannot be said to be related in any way. If, however, the
points form a pattern of some kind, then this shows the type of relationship
between the two measurement sets.
A Scatter Diagram shows correlation between two items for three reasons:
a. There is a cause and effect relationship between the two measured items,
where one is causing the other (at least in part).
b. The two measured items are both caused by a third item. For example,
a Scatter Diagram, which shows a correlation between requirements
and coding of software because changes in both are caused by how each
process is documented.
c.
items, such as the change in requirements and new technology adopted.
Note: Scatter Diagrams may be used to give evidence for a cause and effect
relationship, but they alone do not prove it. Usually, it also requires a good
understanding of the system being measured, and may require additional
experiments. ‘Cause’ and ‘effect’ are thus used to indicate that although they
may be suspected of having this relationship, it is not certain.
When evaluating a Scatter Diagram, both the degree and type of correlation
should be considered.
The proximity of the cause and effect: There is better chance of a high
correlation if the cause is directly connected to the effect than if it is at
the end of a chain of causes. Thus, a root cause may not have a clear
relationship with the end effect.
Multiple causes of the effect: When measuring one cause, other causes
are making the effect vary in an unrelated way. Other causes may also
be having a greater effect, swamping the actual effect of the cause in
question.

Notes Natural variation in the system: The effect may not react in the same
way each time, even to a close major cause.
----------------------
----------------------

---------------------- 1. Who amongst the following proposed the cause and effect diagrams?
i. Barry Bohem
----------------------
ii. Kaoru Ishikawa
----------------------
iii. Vilfredo Pareto
----------------------
iv. Edwards Deming
---------------------- 1. The rule of seven is a rule of thumb or _________________.
----------------------
Activity 5
----------------------
---------------------- Identify a friend or colleague or an acquaintance who works in an IT

company as a Quality Assurance Manager and discuss with him/her the
----------------------
use of various quality management tools.
----------------------
---------------------- 6.7 INDUSTRY QUALITY STANDARDS/ MODELS
----------------------
continuously evolved. The major contribution of quality movement belongs to
---------------------- quality theorists, namely Joseph Juran, W. Edwards Deming and Philip Crossby.
----------------------
organisation must do in order to join the quality ladder. Knowing these standards
----------------------
----------------------
Standard, Safety standard, Quality Assurance Standards etc.
---------------------- Let us understand some of the basic popular standards:
---------------------- 1. Software Engineering Institute Capability Maturity Model
Integration (CMMI)
----------------------
The CMMI is a framework developed by Software Engineering Institute (SEI)
---------------------- at Carnegie Mellon University. The framework is based on the best practices in
---------------------- many companies. CMMI is used to evaluate the software processes and identify
----------------------
----------------------

1. Initial Notes
2. Repeatable
4. Managed
5. Optimising
Continuously 5. Optimising
Improving Focus on process
Process improvement
4. Managed
Predictable
Process Process measured and
controlled
Standard
Consistent
Process Process characterized,
fairly well understood
2. Repeatable
Disciplined
Can repeat previously
Process mastered tasks
1. Initial
Unpredictable and poorly
controlled
Figure 6.7: Capability Maturity Model Integration

In the initial stage, processes are immature or ad hoc, meaning these processes
capability of the team and project leader. From level 2 to 5, processes are more
depend on the team but on the process. The more mature the process, the more
quality we can expect. Let us study each of these levels.
Level 1: Initial
At this level, the organisation does not provide a stable environment for
developing and
maintaining the software. The process capability at Level 1 is considered ad
hoc because the software development process constantly changes as the work
progresses. Schedules, budgets, functionality and product quality are generally
unpredictable.
Level 2: Repeatable
At Level 2, organisations have installed basic management controls. The
capability of Level 2 organisations is summarised as disciplined, because the
ability to successfully repeat planning and tracking of earlier projects results

Notes process areas:
a. Requirements Management
----------------------
b. Software Project Planning
----------------------
c. Software Project Tracking
---------------------- d. Software Subcontract Management
---------------------- e. Software Quality Assurance
----------------------
----------------------
The standard engineering and management processes for developing and
---------------------- maintaining software across an organisation are documented and these processes
are integrated as a whole. The capability of Level 3 organisations is summarised
----------------------
as standard and consistent because engineering and management activities are
---------------------- stable and repeatable. Product lines, cost, schedule and functionality are under
---------------------- following key process areas:

---------------------- a. Organisation Process Focus
----------------------
c. Training
----------------------
d. Integrated Software Management
----------------------
e. Software Product Engineering
---------------------- f. Inter-group Coordination
---------------------- g. Peer Reviews
---------------------- Level 4: Managed

At Level 4, the organisation sets quantitative quality goals for both software
---------------------- products and processes. The capability of Level 4 organisations is summarised
---------------------- as predictable because the process is measured and operates within measurable
limits. Quantitative Process Management and Software Quality Management
---------------------- are the two key process areas of Level 4.
---------------------- Level 5: Optimising
At Level 5, the entire organisation is focused on continuous process improvement.
----------------------
The capability of Level 5 organisations is characterised as continuously
---------------------- improving, because projects strive to improve the process capability and process
performance. The key process areas of Level 5 are:
----------------------
a. Defect Prevention
---------------------- b. Technology Change Management
---------------------- c. Process Change Management
----------------------

2. ISO 9000 Notes
The International Organization for Standardization (ISO) developed the family
of standards for software. The family of ISO 9000 includes standards such as
ISO 9001, 9002 and 9003. These standards are continuously being evolved and
applicable to various disciplines.
ISO provides only framework and every organisation has to prepare various
documents as per the guidelines of the selected standard. An organisation needs
company’s quality system and operations for compliance to the standards. Upon
successful completion of scrutiny, registration body represented by auditors can
ISO 9000 quality assurance model emphasises the network of interconnected

processes such as requirement gathering, design, coding and testing. For a
quality system to be ISO- compliant, each process must be well documented
and followed as described. Process documentation helps an organisation in
make the process person independent. ISO enables a consensus to be reached

on solutions that meet both the requirements of business and the broader needs
of society.
The ISO 9000 framework describes quality assurance elements, which includes
organisational structure, procedures, processes and resources needed to
implement quality planning, quality assurance and quality control.
Some of the elements covered in ISO 9000-3 are management responsibility,
quality system, design control, document and data control, process control,
inspection and testing, corrective and preventive action, control of quality
records, internal quality audits, training and statistical techniques.
To become registered to ISO 9000 organisation, a company must establish
policies and procedures to address each of the requirements stated in the above
paragraph and then be able to demonstrate that the policies and procedures are
being followed.
3. Six Sigma
Six Sigma is a methodology of quality management. Motorola developed a
concept called “Six Sigma Quality” that focuses on defect rates, as opposed
to percent performed correctly. Six Sigma derived its name from the statistical
term ‘standard deviation’ and is denoted by letter ó sigma (A Greek notation)
of quality by controlling the process and reducing defects. Now let us quickly
recall the term standard deviation.
Standard Deviation (SD) is a statistical calculation used to measure and describe
deviation.

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig. 6.8: Bell-shaped Standard Deviation
----------------------
---------------------- difference is calculated between each data point and mean. Then each difference
is squared and total sum of squares of all differences are calculated and divided
----------------------
by number of data points minus one. Finally, this number’s square root is taken
---------------------- and you will get the standard deviation.
---------------------- We know from our previous discussion that quality deteriorates due to
variation. Hence, Six Sigma puts a primary focus on quantifying, measuring
----------------------
methodology. At the Six Sigma statistical level, only 3.4 items per million are
---------------------- outside of the acceptable level. Thus, the Six Sigma quality level means that out
---------------------- of every one million items counted, 999,996.6 will be correct and not more than
3.4 will be defective. Hence, Six Sigma ensures the highest quality.
----------------------
----------------------

---------------------- 1. Who amongst the following are quality pioneers?
i. Joseph Juran
----------------------
ii. Barry Bohem
----------------------
iii. W. Edwards Deming
---------------------- iv. Philip Crossby
----------------------
----------------------

Notes
Activity 6
at level 5, 4 and 3.
companies.
3. Study the IEEE standard used for software documentation.
Summary
Quality has utmost importance in software industry. The main objective
of software quality management is to reduce the number of defects and
increase customer satisfaction.
Software quality factors can be measured directly as well as indirectly. These
design of experiments are used in the quality planning process.

Quality assurance is an umbrella activity that ensures that all processes
standards. Quality needs to be monitored and controlled throughout the

software development life cycle.
Quality Assurance is an activity that establishes and evaluates the
processes that produce the products. Quality Control is an activity that
of Appraisal + Cost of Failure”.

Cost of quality is broadly divided into two types - Cost of conformance
and Cost of non-conformance.
Some of the quality management tools such as Cause Effect Diagram,
Control Charts, Flow-charting, Histogram, Pareto Chart, Run Chart and
Scatter Diagram can be used to control quality.
Software organisations can use standards such as CMMI, ISO and Six Sigma.
Quality comes from continuous improvement, learning and by experience.
Quality is the prime responsibility of the team and a customer expects
quality free of cost.

Notes Keywords
----------------------
Quality:
---------------------- Standards: These are basically guidelines or procedures.
---------------------- Quality Assurance: QA is an application of planned systematic quality
activities to ensure that the project will employ all processes needed to
---------------------- meet the desired quality.
---------------------- Quality Control
produced meets standards.
---------------------- Cost of quality:
---------------------- + Cost of Appraisal + Cost of Failure.
Cause and Effect Diagram: It shows how different factors relate together
---------------------- and might be tied to potential problems.
---------------------- Pareto diagrams: This is also referred as the 80/20 principle, where 80
percent of the problems are due to 20 percent of the causes.
----------------------
CMMI: It is used to evaluate the software processes and identify
----------------------
Managed and Optimising
----------------------
Six Sigma: It focuses on achieving high levels of quality by controlling
---------------------- the process and reducing defects.
---------------------- Self-Assessment Questions

---------------------- 1.
---------------------- 2. Discuss the importance of quality planning. Explain the tools and
techniques used in quality planning.
----------------------
3. What are QA and QC? Differentiate between QA and QC.
---------------------- 4. What are the quality standards used in IT industry? Explain in brief.
---------------------- 5. Explain the levels of CMMI in details.
---------------------- 6. Write Short notes on:
a. Benchmarking
----------------------
b. Cost of Quality
----------------------
c. Cause effect diagram
---------------------- d. Pareto charts
----------------------
----------------------
----------------------
---------------------- 1. False

Multiple Choice Multiple Response Notes
1. Which of the following are the key principles of quality?
i. Management is responsible for quality.
iv. Producers must use effective quality control.
vi. Quality is a journey, not a destination.
i. -d
ii. -c
iii. -a
iv. -e
v. -b
Fill in the blanks.
1. Quality planning process ensures that the resulting product is of acceptable
quality.
2. Standards are basically guidelines or procedures.
1. Which of the following techniques compares project practices/
characteristics to those of other projects or products within or outside the
performing organisation?
ii. Benchmarking
1. Quality Control system is designed for which of the following?
i. To provide regular check to ensure the data correctness, completeness
and integrity
iii. To distinguish the errors and to address them
Fill in the blanks.
1. Process analysis is a part of continuous process improvement.

1. False
2. True
3. False

----------------------
1. True
----------------------

----------------------
---------------------- i. Cost of prevention

ii. Cost of appraisal
----------------------
v. Cost of failure
----------------------

---------------------- 1. Who amongst the following proposed the cause and effect diagrams?
ii. Kaoru Ishikawa
----------------------
----------------------
Fill in the blanks.
---------------------- 1. The rule of seven is a rule of thumb or heuristic.
----------------------

----------------------
1. Who amongst the following are quality pioneers?
----------------------
i. Joseph Juran
---------------------- iii. W. Edwards Deming
---------------------- iv. Philip Crossby
----------------------
Suggested Reading
----------------------
1. Godbole Nina S. 2004. Software Quality Assurance Principles and
---------------------- Practice. New Delhi: Narosa Publishing House.
---------------------- 2. Hughes, Bob & Mike Cotterell. Software Project Management. Tata
McGraw Hill Publishing Company Limited.
----------------------
3. Pressman, Roger. Software Engineering – A Practitioner’s Approach.
---------------------- McGraw Hill Publication.
----------------------
----------------------

Managing Team
UNIT
7
Structure:
7.1 Introduction
7.2 Team
7.3 Building Team
7.4 Motivating Team
7.4.4 The Equity Theory
7.5 Project Human Resource Planning
7.6 Team Structure
Summary
Key Words
Suggested Reading
Managing Team 153

Notes
Objectives
----------------------
----------------------
Discuss the meanings of a team
---------------------- Describe the process of team formation
---------------------- Explain various motivation theories
Elaborate on the importance of planning human resource in software
----------------------
projects
----------------------
---------------------- Detail out various team structures
----------------------
----------------------
---------------------- 7.1 INTRODUCTION
---------------------- In this unit, we will discuss one of the important resources in software
development- human resource. The management of the human resources on a
---------------------- project has a major impact on the project’s success or failure. Human resources
---------------------- performing organisation. Broadly, human resource management deals with
---------------------- recruiting, leading, communicating, delegating, motivating, team building,
appraising etc. Project team size varies with the project size and complexity.
----------------------
A large team needs careful application of right human resource development
---------------------- strategy. The needs of human resources in terms of set of their skills and
experience varies with stages of project life cycle. In the initial stage, less
----------------------
progresses into execution, more team members are needed. Human resource
----------------------
management processes must recognise and address these changing needs.
---------------------- In this unit, we will discuss various behavioural and motivation theories such
as McGregor’s X & Y theory and Maslow’s hierarchy of needs. This unit also
----------------------
introduces how to build teams, how to motivate and achieve peak performance
----------------------
---------------------- 7.2 TEAM

----------------------
Meaning and importance of team is hidden in the word “TEAM” itself.
---------------------- ’T’ = ‘Together’
---------------------- ‘E’ = ‘Each’
‘A’ = ‘Achieve’
----------------------
‘M’ = ‘More’.
---------------------- Thus, TEAM means Together Each Achieve More.

Software development is a team effort. If the team is highly motivated and Notes
properly coordinated, it gives high quality and productivity. Software Project
team includes project sponsors, project managers, programmers, architects,
testing and quality personnel, documentation team, customer representatives
etc. Each team member plays a unique role in the software development process.
Every human being is complex and unique in nature. Every individual possesses
different skills, knowledge, experience and many other factors such as attitudes,
personality types, beliefs etc. Managing a team involves consideration of all
aspects of human nature.
Team development is a continuous process. To keep all team members together
is one of the main objectives of the project manager. As we know, every team
the performance of other team members. For example, if one of the programmer
delays his job, all other modules and processes that depend on his module get
delayed. As a leader, the project manager has to compensate the weakness of such
a team member and keep the entire team on track. Without knowledge of team
dynamics and various skills such as motivation, communication, negotiation,
therefore essential to understand the basics of teaming.

Great teams are built upon the four strong pillars of Mutual Trust, Honesty,
Transparency and Coordination. If anything is missing, no one can build a
proper team.
1. Trust: Trust is the most important factor in team development. For
team members. Building trust is an ongoing process and cannot be done

in a single day. Trust is a vital force behind any motivation. People do
work to satisfy their needs. They assume that working in a team will
accomplish their needs and give them essential security. If that part is
missing, no one can work together. People build their trust by watching
the behaviours in various occasions and hence it is the responsibility of
the team leader to keep to the words and commitments given. He should
their work.
2. Honesty: Honesty helps in building mutual trust. During the project, lots
of information is being generated and communicated to the stakeholders
and it is not always practically possible to check the sanctity of the
information. It is assumed that people are reporting actual facts and not
dummy data to save their face. Honesty and sincerity improves the quality
and productivity of the work. Honest people get respect from others.
Honesty helps them to climb up the success ladder. Honest people can
objectively criticise their performance and improve further.
3. Transparency: Transparency means openness in communication and
overall behaviour. It is based on the principle that no one is superior in
Managing Team 155

Notes everything. People seek guidance and information from others. If they
cannot openly talk to each other due to fear of criticism or fear of risk, their
---------------------- progress is stagnated. Good leaders always try to make the environment
as open as possible where people can share their thoughts and opinions
---------------------- freely. Transparent environment encourages them to take more risks.
---------------------- Transparency does not mean access to every bit of information. A leader
should share only relevant information and not sensitive information.
---------------------- One must be very careful in implementing such a strategy since there are
few people who can take undue advantages of such environment.
----------------------
4. Coordination: Though team members perform individually, they are
---------------------- integrated with each other through a common objective. The performance
----------------------
the team leader maintains the balance of the speed. During execution,
---------------------- people are struck due to lack of information or incompletion of previous
activity, so it is the prime responsibility of the team leader to see that all
---------------------- resources are having proper information at hand to proceed further. He
needs to organise the team as per the skills and roles. Coordination is also
----------------------
a continuous activity. Coordination is an activity in which team leader
----------------------

----------------------
Fill in the Blanks.
----------------------
1. ______ is a vital force behind any motivation.
---------------------- 1. Which of the following are the pillars of a team?
---------------------- i. Honesty
ii. Dedication
----------------------
iii. Transparency
----------------------
iv. Cooperation
----------------------
v. Coordination
----------------------
---------------------- Activity 1
----------------------
Identify examples / business scenarios for each pillar of a team.
----------------------
---------------------- 7.3 BUILDING TEAM

---------------------- Building a team is an important activity in software project management. Right
people with matching skills are crucial for project success. Right people with
----------------------
right skills are not easily available to a project. In software industry, human
resources are shared resources. When new project begins, free resources are Notes
taken up on project and may be released after their work is over or they are not
performing well. Due to the temporary nature, software teams are not permanent
different projects at different times. Hence, team-building activity needs to be

performed for every project. In small companies or small teams, this activity
may not have much importance. But for large projects, managing thousands
of people is really a big challenge. If the team size increases, HR management
becomes more complex.
It is essential to know how a team is formed. Most of the time, the teams are
formed through informal ways. In projects, teams are formed as per the roles in
the organisation structure. Let us understand the basis of team-building activity.
1965. This model depicts how a team is formed with four stages. These are
Forming, Storming, Norming and Performing. He believed that all these four
stages are inevitable for team growth, facing challenges, tackling problems,
the basis for other subsequent models. Let us study the four stages of team
formation.
1. Forming
place. The team meets and learns as to what they are supposed to do, i.e. their
roles, responsibilities and challenges and then agrees on roles and begins to
tackle the tasks. Team members tend to behave quite independently. They may
be motivated but are usually relatively uninformed of the issues and objectives
of the team. Team members are usually on their best behaviour but very focused
on themselves. Mature team members begin to model appropriate behaviour
even at this early phase. Sharing the knowledge of the concept of “Teams -
Forming, Storming, Norming, Performing” is extremely helpful to the team.
Initially the team is not fully aware of its role. Leaders should provide necessary
guidance in this phase.
During formation, team members get to know each other, share their experiences,
likes and dislikes and make friends. This is also a good opportunity to see how
each member of the team works as an individual and how they respond to
pressure.
2. Storming
This is a bit tensed stage. There is no consensus on goals and how to achieve the
goals or tackle the problems at hand. The team addresses issues such as what
problems they are really supposed to solve, how they will function independently
and together and what leadership model they will accept. Team members open
up to each other and confront each other’s ideas and perspectives. In some
cases, storming can be resolved quickly. In others, the team never leaves this
stage. The maturity of some team members usually determines whether the
Managing Team 157

Notes team will ever move out of this stage. Some team members will focus on ins
and outs to avoid real issues.
----------------------
The storming stage is necessary for the growth of the team. It can be debatable,
----------------------
Tolerance of each team member and their differences need to be emphasised.
---------------------- Without tolerance and patience, the team will fail. This phase can become
destructive to the team and will lower the motivation if allowed to get out of
----------------------
control.
---------------------- Team leaders during this phase may be more accessible but still need to be
directive in their guidance of decision-making and professional behaviour. The
----------------------
groups will therefore resolve their differences and group members will be able
----------------------
any way and will therefore share their own opinions and views.
----------------------
3. Norming
---------------------- After Storming, the team may enter into the norming stage. Team members
---------------------- adjust their behaviour to each other as they develop work habits that make
---------------------- this stage by agreeing on rules, values, professional behaviour, shared methods
and working tools. During this phase, team members begin to trust each other.
---------------------- Motivation increases as the team is more acquainted with the project.
---------------------- Team leaders during this phase tend to be more participative than in the earlier
stages. The team members can be expected to take more responsibility for
---------------------- making decisions and for their professional behaviour.
---------------------- As team members get to know each other better, their views of each other begin
---------------------- some members may begin to feel threatened by the amount of responsibility they
---------------------- have been given. They would try to resist the pressure and revert to storming
again.
----------------------
4. Performing
---------------------- In performing stage, the group is ready to focus attention on task accomplishment.
Issues of interpersonal relations, roles and responsibilities are settled. These
----------------------
----------------------
need for external supervision. Team members have become interdependent. By
---------------------- this time, they are motivated and knowledgeable. The team members are now
competent, autonomous and able to handle the decision-making process without
----------------------
supervision. Team leaders during this phase are almost always participative.
---------------------- The team will make most of the necessary decisions. Even the most high-
performing teams will revert to earlier stages in certain circumstances. Many
---------------------- long-standing teams will go through these cycles many times, as they react to
changing circumstances. For example, a change in leadership may cause the
----------------------
team to revert to storming, as the new people challenge the existing norms and
---------------------- dynamics of the team.

Notes

i. Forming a. Team members have become interdependent.
ii. Storming b. Team members begin to trust each other.
iii. Norming c. Team members tend to behave quite
independently.
iv. Performing d. Team members open up to each other and
confront each other’s ideas and perspectives.
7.4 MOTIVATING TEAM

For teams to function effectively, it is important that the team members are
achievement or success of a project. Let us now study the various motivational

theories.
Motivation keeps team members moving. To perform is the responsibility of a
of a project manager. It does not matter how well you plan, how accurately
you schedule and how less your budget is. Unless and until your team starts
working, you will not reach the project goal. Hence, one must possess the
motivation skills, as it helps in personal growth as well as team growth. Let us
understand what motivation is and which theories and techniques can be used
in motivation.
What is motivation?
Motivation means removing inertia and putting one into action. Actions
accelerate because we want to gain something or we want to avoid something.
You will understand the importance of motivation when you ask your team to
maintain documentation. Programmers are generally lazy in documentation and
you need to motivate them.
We will overview some of the motivation theories.
In 1960, psychologist Maslow developed the theory of human needs. According
to him, human needs are hierarchical in nature, which means people get
they strive for satisfying next higher need and that keeps them continuously
motivated till they satisfy the top need in hierarchy, i.e. self-actualisation need.
Managing Team 159

Notes Self
Actualisation
----------------------
Self-Esteem
----------------------
Belongingness and
---------------------- Love
---------------------- Safety
---------------------- Physiological
----------------------
Fig. 7.1: Maslow’s Hierarchy of Needs
---------------------- 1. Physiological needs
---------------------- Physiological need is the basic need. This is the strongest need for which every
human being strives. They are the literal requirements for human survival. If
---------------------- these requirements are not met (with the exception of clothing and shelter), the
----------------------
in hierarchy. Some of the physiological needs include breathing, water, food,
---------------------- clothes and shelter.
---------------------- 2. Safety needs
----------------------
over and dominate their behaviour. These needs have to do with people’s thirst
---------------------- for a secure and orderly life in which injustice and inconsistency are under
control. In the world of work, the safety needs manifest themselves in such
----------------------
and well being, insurance against accidents and protection from threats such as
----------------------
storm, riots etc.
---------------------- 3. Social needs
----------------------
is social. This psychological aspect of Maslow’s hierarchy involves emotionally
---------------------- based relationships in general, such as friendship, togetherness, family support
etc.
----------------------
Humans need to feel a sense of belonging and acceptance, whether it comes
----------------------
---------------------- professional organisations, sports teams or small social connections such as

family members, intimate partners, mentors, close colleagues. They need to
---------------------- love and be loved by others. In the absence of these elements, many people
become susceptible to loneliness and social anxiety. This need for belonging
---------------------- can often overcome the physiological and security needs, depending on the
----------------------
---------------------- person may not work well.
----------------------

4. Esteem Need Notes
Esteem need is a higher psychological need. All humans have a need to be
respected, to have self-esteem, self-respect. People need to engage themselves
to gain recognition and have an activity or activities that give the person a
sense of contribution, to feel accepted and self-valued, be it in a profession or
hobby. Imbalances at this level can result in low self-esteem or an inferiority
complex. People with low self-esteem need respect from others. They may seek
fame or glory, which again depends on others. It may be noted, however, that
many people with low self-esteem will not be able to improve their view of
themselves simply by receiving fame, respect and glory externally, but must
Most people have a need for stable self-respect and self-esteem. Maslow noted
two versions of esteem needs, a lower one and a higher one. The lower one is
the need for the respect of others, the need for status, recognition, fame, prestige
and attention. The higher one is the need for self-esteem, strength, competence,
because it rests more on inner competence won through experience.

5. Self-actualisation
This is the topmost need in Maslow’s hierarchy of needs. Very few people
reach to this stage. People will strive for self-actualisation needs when and only
a philosophical need and the realisation of one’s potential to do that, which a

person was “born to do”. Consider the example of Microsoft owner Bill Gates.
He achieved everything but that does not mean he cannot be motivated further.
satisfaction at work and he recognised two factors that affect the attitudes of
employee towards the work. These two factors are Motivation and Hygiene.
If these two factors are properly managed, a team can achieve high levels
of performance. He stated that these two factors contribute to employee’s
behaviour at work. He found that presence of certain factors does not motivate
but the absence of these factors can de-motivate employees. This factor is called
Motivators
The higher level needs could be achievement, recognition, the work itself,
responsibility, advancement and growth. These factors have long lasting impact
on the performance of an employee.
Hygiene Factors
These factors are related to work condition and environment in which employee
is working. In good working environment, people work even better. Some
Managing Team 161

Notes of the factors that affect the performance are company policy, supervision,
interpersonal relations, working conditions, salary, status, security, personal
----------------------
however, presence does not motivate or create satisfaction. The effects of
---------------------- Hygiene factors are temporary. For example, salary rise will have its impact for
---------------------- a short period, while if you provide growth and recognition, its impact will be
longer on employee’s performance.
----------------------
---------------------- Douglas McGregor, an American social psychologist, proposed the famous X-Y
theory. In this theory, he describes two fundamental approaches to managing
----------------------
people. Many managers tend towards theory X and generally get poor results
---------------------- while other managers use theory Y, which produces better performance and
results and allows people to grow and develop.
----------------------
Theory X (Authoritarian Management Style)
---------------------- This theory states that average people dislike work and will try to avoid work if
---------------------- they can. This theory assumes that people are inherently lazy and follow the path
of least resistance. Therefore, people must be forced to work with the threat of
---------------------- punishment and need to be motivated by money and positions, to work towards
organisational objectives. These people need to be directed and controlled. The
---------------------- authoritarian style of management works well with lazy people.
---------------------- Theory Y (Participative Management Style)
---------------------- This theory states that people will put their effort in work as natural as they play.
People will apply self-control and self-direction in the pursuit of organisational
---------------------- objectives, without external control or the threat of punishment. Commitment
to objectives is a function of rewards associated with their achievement. People
---------------------- usually accept and often seek responsibility. The capacity to use a high degree
---------------------- of imagination, ingenuity and creativity in solving organisational problems is
widely, not narrowly, distributed in the population. In industry, the intellectual
---------------------- potential of the average person is only partly utilised.
---------------------- Theory Z - William Ouchi (Japanese Management Style)
This theory is developed by William Ouchi in 1981. Theory Z is more popular
----------------------
in Japan and hence often referred to as the ‘Japanese’ management style. Theory
---------------------- Z essentially advocates a combination of all that is best about theory Y and
modern Japanese management, which places a large amount of freedom and
---------------------- trust with workers and assumes that workers have a strong loyalty and interest
in team working and the organisation. According to this theory, workers want
----------------------
to use their productive time in obtaining more rewarding experiences. They
---------------------- would like to be a part of the enterprise goal and contribute their efforts. If
the organisation culture is aligned accordingly, they will be able to achieve
---------------------- goals. Some of the key characteristics of Japanese organisations are lifetime
employment that gives them job security, slow promotions and infrequent
----------------------
evaluations, non-specialised career paths and collective decision-making and
---------------------- responsibility. By implementing the Z theory, Japanese led their high quality
products in the world.
7.4.4 The Equity Theory Notes
Motivating and retaining teams is a challenge. Employee turnover is quite high
in IT industry except during recession. Why people move? The basic reasons are
more monetary gains and higher work opportunities. To retain good employees,
we must understand the equity principle. We studied Maslow’s hierarchy of
employee- the feeling of equity that means everyone expects that he/she should
be treated equally and fairly. It is a very common behaviour that employees
discuss among each other and compare their salaries. If they feel that their
salary is less than the co-worker, their morale and performance can be seriously
affected and in extreme cases, the employee may leave the job. To retain the
employee, management should treat everyone in a fair manner and the rewards
should be based on their performance and not on individual relationship.
Employees compare their work and pay with the following:
Compare salary of co-worker holding the same position.
Compare salary of other companies for the same position.
Compare their salary with the rewards they get in different times.
Compare their pay to other individuals holding different positions.
In reality, the performance, responsibility, skills and experience are unique
characteristics and due to this, it is not possible to decide the standard pay rate
the salary of a person, such as deciding the level of performance expected

from employee, accessing the actual performance of employee, linking pay
Overall, the project manager or HR manager should ensure that everyone is

treated equally and fairly.

i. Physiological needs a. Need to be respected, to have self-
esteem, self-respect
ii. Safety needs b. Requirements for human survival
iii. Social needs c. More of a philosophical need and the
realisation of one’s potential to do that,
which a person was “Born to do”
iv. Esteem needs d. Thirst for a secure and orderly life in
which injustice and inconsistency are
under control
v. Self-actualisation e. Can often overcome the physiological
needs and security needs, depending on the
strength of the peer pressure.
Managing Team 163

Notes
---------------------- 1. Theory X is called as Participative Management Style.
---------------------- 1. To retain good employees, we must understand the __________.
----------------------
---------------------- Activity 2
---------------------- Identify 10 hygiene factors that can decrease the performance of a team
member.
----------------------
----------------------
7.5 PROJECT HUMAN RESOURCE PLANNING
----------------------
The next important aspect for any organisation is to plan their resources for the
---------------------- project and the most crucial of these resources is the human resource. We will
now have a look into the human resource planning for the project.
----------------------
Project Human Resource Management consists of the processes required to
---------------------- organise, manage and lead the project team. The project team comprises of
---------------------- the people with assigned roles and responsibilities for completing the project.
The type and number of team members can change frequently as the project
----------------------
members, their involvement in project planning and decision-making plays a
---------------------- crucial role. The involvement and participation of team members in the earlier
----------------------
strengthens their commitment to the project.
---------------------- The Human resource plan contains
---------------------- Total number of resources required for each role
---------------------- Costing information and assumptions, including perks and allowances
The duration for which the resource is required
----------------------
Any special skills required over and above those that people in the
----------------------
----------------------
---------------------- technologies.
----------------------
Plans for team-building activities
----------------------
The project human resource plan supports resource planning, resource
----------------------
the project human resource plan is created for the entire project and managed
---------------------- by the project manager.

The formality with which the project human resource plan is created and Notes
small projects do not require a formal plan. On the other hand, large, multiyear,
multilevel projects with many participants may require multiple formal plans.
The project human resource plan is based on the project schedule.
The Project management schedule includes a summary of the effort by human
resource category expressed in person hours, person days etc. that will be
which the work units will be performed. For example, the project management
schedule might indicate that 1000 hours of .Net programmers are needed for
three months from Jan to Mar.
The project human resource plan uses the requirement for human resources
to develop a plan for staff acquisition. There is usually iteration between the
development of the project management schedule and the human resource plan,
as “reality” is applied during development of the human resource plan during
the different phases of the project. For example, for a very large project, it may
project management schedule during a particular time period. Therefore, the
The project human resource plan may be revised when changes in the Project
management schedule for a project organisational unit result in a change in
human resource plan.

The Project Human Resource Management process is as follows:
a. Developing Human Resource Plan: Identifying and documenting
project roles, responsibilities and required skills, reporting relationships
b. Acquiring Project Team:

obtaining the team necessary to complete project assignments.
c. Developing Project Team: Focusing on improving the competencies,
team interaction and the overall team environment for enhancing the
project performance.
d. Managing Project Team: Tracking the team members’ performance in
order to provide feedback, resolve issues and manage changes to optimise
project performance.
The project management team is a subset of the project team and is responsible
for activities such as initiating, planning, executing, monitoring, controlling and
closing the various project phases. For small projects, the project management
responsibilities can be shared by the entire team or managed entirely by the
project manager. The project sponsor works with the project management
team, typically assisting with matters such as project funding, clarifying scope,
Managing Team 165

Notes
----------------------

1. Which of the following processes are involved in project human resource
----------------------
planning?
---------------------- i. Developing human resource plan
---------------------- ii. Acquiring project team
---------------------- iii. Developing project team

iv. Allocating task to project team
----------------------
v. Managing project team
----------------------
----------------------
Activity 3
----------------------
---------------------- Prepare a plan for human resource planning for a project of your choice.
----------------------
7.6 TEAM STRUCTURE
----------------------
---------------------- of the people managing and working within a project organisational unit. Well-
---------------------- organised team structure will help to optimise the efforts of the team and the
success of the project. An inappropriate one can undercut the efforts of a hard
---------------------- working group of people and impede their success. This process is performed
during planning phase. Often, it is carried out by the functional managers/senior
---------------------- management responsible for the people who will staff the project.
----------------------
---------------------- in organising a team is the objective of the team. Has the team been asked
---------------------- to explore possibilities and alternatives? Is the team charged with solving a
---------------------- or when implementing a new technology. Broadly, there are two different
organisational approaches. In the normal approach, each team is responsible
----------------------
----------------------
In the multidisciplinary approach, each team is responsible for completing some
----------------------
of the work products. The team members have different skills and possibly are
---------------------- multi-skilled.
Certain project approaches favour certain team structures. For example, rapid
----------------------
application development (RAD) works best with multidisciplinary teams. It
---------------------- is necessary to have a team structure so that all the members of the project

understand their roles and their working and reporting relationships. However, Notes
understand that there is no “right” team structure for a project and that it usually
depends on the organisational requirements and needs of the project.
Roles and Responsibilities of people involved in a project
Let us discuss some of the roles and their responsibilities.
Sponsor
A sponsor can be an individual or organisation who provides funds to the
project. If the organisation is developing the project for external customer,
sponsor. Otherwise, senior management of the performing organisation acts as

the sponsor if the project is initiated for a performing organisation. A sponsor
phases of projects from initiating to closing. The sponsor’s prime responsibility

includes funding, providing initial information regarding the initial scope of
the project, determining priorities and constraints, acting as the spokesperson
management. During monitoring and controlling phase, he may enforce quality
Project Manager
A project manager is responsible for the overall management of the project.
He is accountable for project failure as well as project success. The Project
Managers responsibility includes project planning, direct execution, monitoring
and control and formal closure.
Team
Team means group of people responsible for actual execution of the project.
The team may include Architects, Programmers, Testing and Quality Personnel.
The responsibility of the team includes identifying stakeholders, gathering
requirements, identifying constraints and assumptions, providing effort
estimates, attending review meetings, performing actual task such as designing,
coding, testing, documentation etc.
Stakeholders
Stakeholders are the individuals who are directly or indirectly associated with
Stakeholders are responsible for preparing initial scope, requirement elicitation,

change management, risk management etc.
Team Structure in Software Projects
The major aim of a software team is to approach a Project as a team effort.
There are three generic team structures in Software Projects. These are:
Managing Team 167

Notes Democratic Decentralised Team / Structured Open Team [Egoless Team]
Controlled Decentralised Team
----------------------
Controlled Centralised Team
---------------------- Democratic Decentralised Team / Structured Open Team [Ego less Team]
----------------------
----------------------
----------------------
----------------------
----------------------
---------------------- Fig. 7.2: Democratic Decentralised Team

Characteristics of a Democratic Decentralised Team / Structured Open Team
----------------------
[Ego less Team]
---------------------- The goal of the team members is set by consensus and input of every
---------------------- member is taken for major decision.
There is no Permanent Team Leader.
----------------------
Communication is horizontal.
---------------------- Informal atmosphere is the main characteristic of this team.
---------------------- Complex nature problems are best handled by this team.
Suitable for long-term Research type projects, which do not have time
----------------------
constraint.
---------------------- Controlled Centralised Team / Chief Programmer Team
Chief Programmer
----------------------
----------------------
----------------------
---------------------- Back up Librarian Programmers

Programmer
----------------------
Fig. 7.3: Controlled Centralised Team
----------------------
Characteristics of Controlled Centralised Team / Chief Programmer Team
---------------------- Communication is vertical.
---------------------- Suitable for problems that are well understood.
It consists of :
----------------------
Chief Programmer
----------------------
Back up Engineer
---------------------- Technical Staff - Programmer

Specialists Notes
Librarian
Suitable for simple projects with strict deadlines.
Controlled Decentralised Team
Characteristics of Controlled Decentralised Team
Combines the strengths of Democratic and Chief Programmer teams.
Communication is horizontal as well as vertical.
It has a team leader and number of secondary leaders.
Problem solving is done at group level but implementation is the
responsibility of the sub groups.
Suitable for large projects.
Fill in the blanks.

1. A __________ is responsible for the overall management of the
project.
1. Which of the following is a characteristic of controlled centralised team?
i. Suitable for long-term Research type projects, which do not
have time constraints
ii. Suitable for simple projects with strict deadlines
iii. Suitable for large projects
iv. Suitable for short-term projects
Activity 4
Prepare a list of three software projects each for the type of team structures
you have studied.
7.7 MANAGING CONFLICTS
Managing Team 169

Notes
tries to avoid them but that does not happen or is rare.
----------------------
---------------------- improvement and are inevitable consequences of organisational interactions.
----------------------
technical opinions, administrative procedures, budget and personality of a team
---------------------- member. For example, in global implementation of products, there are always
----------------------
----------------------
---------------------- between either internal stakeholders or external stakeholders.
----------------------
of them:
---------------------- Confronting: Confrontation is the same as problem solving. In problem solving,
----------------------
---------------------- deals with the root cause of the problem and not the person.
---------------------- Compromise: When two par
---------------------- that bring some degree of satisfaction to both the parties. This is a Lose-Lose
situation since no party gets everything. For example, the customer may add
----------------------
---------------------- the schedule, increase the risk and cost of the project. As a Project Manager,
---------------------- however, after negotiation, the customer agrees to pay extra cost and accept
postponed schedule.
----------------------
Forcing: As the name implies, people are forced to abide by the decision.
---------------------- The manager does not have any options in certain compelling situations. This
technique is generally applied when other techniques fail. Forcing is considered
----------------------
----------------------
Accommodating: This style indicates a willingness to meet the needs of others
----------------------
at the expense of the person’s own needs. The accommodator often knows
---------------------- when to give in to others, but can be persuaded to surrender a position even
when it is not warranted. This person is not assertive but is highly cooperative.
---------------------- Accommodation is appropriate when the issues matter more to the other party,
when peace is more valuable than winning or when you want to be in a position
----------------------
to bank on this “favour” you gave. However, people may not return favours and
---------------------- overall, this approach is unlikely to give the best outcome.
Withdrawal (Avoidance):
----------------------
---------------------- problem will go away by itself.

Notes
Fill in the blanks.

1. Confrontation is the same as ___________.
agreement, it is called withdrawal.
Activity 5
A project manager says this to his customer, “We all agree that this project
resolution technique is this project manager trying to use? Explain in your

words.
7.8 INFLUENCING
How can a project manager maintain enthusiasm, teamwork and project
activities on schedule? It is here when the project manager needs to exercise
project manager. It determines the impact of the project manager on his/her

team. You cannot become a leader just by reading and understanding various
motivation theories and techniques of people management. All these skills are
why people obey their leader and why the orders or even genuine suggestions
impact of an individual on his followers. The impact may be due to formal

position, authority and power or the personality of the individual. Now we will
discuss various powers that a leader is required to exercise in managing people.
Reward Power
The reward power refers to the authority and capacity of a leader to reward his
subordinates. If the leader has more reward power, more people will obey him
the leader. Every organisation authorises the leader to use the other rewards
such as pay rises, promotions and other facilities at his capacity.
Managing Team 171

Notes Coercive Power
Leaders can exercise this power by punishing their subordinates. This is the
----------------------
---------------------- by giving rewards or negatively by punishing. The degree of punishment a

leader can exercise varies with authority, the position given by the organisation
---------------------- and mostly depends on the situation and organisation culture.
---------------------- Some examples of coercive power are no praise and credit of work, holding
promotion and pay rise, insult and in extreme circumstances, termination. Most
----------------------
leaders.
----------------------
Legitimate Power
----------------------
---------------------- legitimate power is generally determined by the position and role of a leader
in the organisation. The organisation gives such power to various positions to
---------------------- maintain the organisation policies, norms and procedures. Subordinates are
---------------------- obligated to comply with such requests because of the norms accepted by all
members of the organisation as legitimate. This power is independent of the
---------------------- personal characteristics of the leader and he has to exercise this power in legal
framework.
----------------------
Expert Power
---------------------- The power purely depends on the knowledge, and the level of experience
---------------------- the leader possesses in his domain. For example, a leader with vast hands-
---------------------- subordinates. Subordinates expect guidance and expert advice many times
during execution. Subordinates follow their leaders and perform well if they
----------------------
---------------------- industry, due to the intellectual nature of work, this power is in high demand.
Referent Power
----------------------
Referent power is a form of power that is based on respect or the charismatic
---------------------- personality of the manager. It is the ability of the leader to persuade his
subordinates. This power can be used by aligning the less powerful leader with
----------------------
more powerful leader. For instance, if the project manager is very close to the
---------------------- CEO of the company, his subordinates will follow him due to his closeness to
the CEO. This power is generally used in social and political campaigns. For
---------------------- example, the company uses referent power of the famous movie actor or famous
----------------------
power of a leader, their sale will go up. This power is generally used by political
----------------------
in IT industry.
----------------------
----------------------
----------------------

Notes

1. Referent power is a form of power that is based on respect or the
charismatic personality of the manager.
Activity 6
According to you, which power must a leader exercise in IT organisations?
Summary
The essential factors in team formation are Mutual Trust, Openness,
Honesty and Coordination.
The basic team formation model consists of the four stages of team
building- forming, storming, norming and performing.
Motivating team members is the prime responsibility of the team leader.
In Maslow’s Hierarchy of Needs, Maslow arranged the needs in
hierarchical format that indicates that an individual will strive to satisfy
According to Herzberg’s Motivation-Hygiene Theory, absence of

certain factors such as working conditions may demotivate and reduce
considerably increase the performance.

McGregor suggested two theories X and Y. According to theory X, people
are inherently lazy and do not want to work unless and until they are forced
and motivated. Theory Y suggests that people are naturally motivated.
Theory Z is the combination of the Japanese style and theory Y.
According to equity theory, every individual expects fairness and equality
in rewards.
Project Human Resource Management consists of the processes required
to organise, manage and lead the project team.
The project team comprises of the people with assigned roles and
responsibilities for completing the project.
The various team structures in software projects are Democratic
Decentralised Team / Structured Open Team, Controlled Decentralised
Team and Controlled Centralised Team.
Managing Team 173

Notes
of a project manager.
----------------------
---------------------- Confrontation, Withdrawal and Compromise.
---------------------- HR management. There are various types of power- expert, legitimate,

---------------------- coercive, reward and referent powers- that the leader can exercise to
----------------------
----------------------
Keywords
---------------------- Motivation: Motivation means removing inertia and putting one into
action.
---------------------- Team structure
---------------------- relationships of the people managing and working within a project
organisational unit.
----------------------
---------------------- manager has on his/her team.

---------------------- 1. What is a Team? Explain the basic model of team building.
---------------------- 2. Explain Maslow’s hierarchy of needs.
---------------------- 3. State and describe the various team structures.
4. Explain in detail Project Human Resource Planning.
----------------------
5. Write short notes on:
----------------------
a. Herzberg’s Motivation-Hygiene Theory:
----------------------
b. Douglas McGregor’s Theory of Motivation
---------------------- c. Equity theory
----------------------
---------------------- 7. Discuss the power that a leader should exercise while managing people.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Answers to Check your Progress Notes
1. Trust is a vital force behind any motivation.
1. Which of the following are the pillars of a team?
i. Honesty
iii. Transparency
v. Coordination
i. c
ii. d
iii. b
iv. a

i. b
ii. d
iii. e
iv. a
v. c
1. False
Fill in the blanks.

1. To retain good employees, we must understand the equity principle.

1. Which of the following processes are involved in project human resource
planning?
i. Developing human resource plan
Managing Team 175

Notes ii. Acquiring project team
iii. Developing project team
----------------------
v. Managing project team
----------------------

---------------------- 1. A project manager is responsible for the overall management of the
project.
----------------------
---------------------- 1. Which of the following is a characteristic of controlled centralised team?
---------------------- i. Suitable for simple projects with strict deadlines
----------------------
----------------------
Fill in the blanks.
----------------------
1. Confrontation is the same as problem solving.
---------------------- 1. False
----------------------
----------------------
----------------------
1. True
----------------------
---------------------- 1. Hughes, Bob & Mike Cotterell. Software Project Management. Tata McGraw
Hill Publishing Company Limited.
----------------------
2. Kekar, S.A. Software Project Management. New Delhi: PHI Learning
---------------------- Pvt. Ltd.
3. Lewis, James. Project Planning, Scheduling and Controlling, Tata
----------------------
McGraw Hill.
----------------------
----------------------
----------------------
----------------------
----------------------

Managing Communication
UNIT
8
Structure:
8.1 Introduction
8.2 Importance of Effective Communication
8.3 Meaning of Communication
8.4 Process of Communication
8.5 Components of Communication
8.6 Barriers to Communication
8.7 Types of Communication
8.7.2 Different Types of Communication
8.8 Communication Planning
8.9 Managing Meetings
8.9.1 Types of Meetings
8.10 Complementary Skills for Effective Communication
Summary
Key Words
Suggested Reading
Managing Communication 177

Notes
Objectives
----------------------
----------------------
Explain the importance of communication in software project
---------------------- management
---------------------- Outline the basics of communication process

Analyse types of communication
----------------------
Enhance and apply communication skills
---------------------- Compare various communication theories
---------------------- Identify the barriers to communication
----------------------
8.1 INTRODUCTION
----------------------
In the previous units, we have already studied project management, the various
---------------------- knowledge areas and the skills we must possess to be effective in software project
management. This unit covers the most important skill, i.e. communication, the
---------------------- skill that everyone must possess to be successful in every walk of life and in
---------------------- particular, knowledge-based industry such as information technology.
----------------------
We are familiar with the term communication and since our childhood, we have
---------------------- been using it in different ways for different purposes. Generally, we acquire
---------------------- solve the problems. Since childhood, we have practiced ample communication
----------------------
existing communication skills are limited only to convey our meaning either by
---------------------- spoken or written words. To be effective as a project manager, one must possess
these skills. If you are weak in communication, you will have very limited
----------------------
step is to understand the basics of communication and then practice and sharpen
----------------------
communication skills. Here we shall discuss the basics of communication and
---------------------- how its application varies with the person, society, culture. Communication is
a dynamic activity and one can communicate in a number of ways to number
---------------------- of people with the style appropriate to his requirement, personality and need of
the audience.
----------------------
In software development, we use communication most frequently unlike
---------------------- other activities such as planning, scheduling, risk management etc. Software
development being an intellectual activity unlike other products, the inputs
----------------------
and outputs to software are presented in terms of information. Without the aid
---------------------- of communication, we cannot give input to the software process. The main
role of communication in software project is to exchange information. In other
---------------------- words, we can say communication is a tool or an instrument that carries the
----------------------

A project manager must be able to exhibit his ability to think, write, observe and Notes
speak effectively. Communication problem is about the right perception, use
put across and handle messages. Communication can be fun as the interaction
opinions etc.
8.2 IMPORTANCE OF EFFECTIVE COMMUNICATION

To understand the importance of communication, we must pay attention to
what the famous management guru Peter Ducker stated, “One’s effectiveness is
determined by one’s ability to reach others through the spoken or written word.
Thus communication is perhaps the most important skill.” Through extensive
research in many projects, it is found that projects can substantially fail due to
poor communication despite of technical competence. It is estimated that an
effective project manager spends about 90% of his time on communication, out
of which 50% of the time is spent on communication with the project team. That
means every team member- external stakeholders, project leads, quality persons,
testing team, development team, analysts- spend most of their time in exchanging
information with one other.
communicating and the other is doing technical activities such as programming,

testing etc. As the major portion of your project’s duration is utilised in
communication, if you cannot manage communication properly, the major portion
of the project duration will be mere waste.
Usually, communication happens between two or more persons. Due to
the complex and unique nature of human beings, one standard formula of
communication becomes more of a psychological activity than logical activity.

As your team grows in size and spreads across countries of different cultures,
languages etc., the activity becomes more complicated.
it can further be used for forming and motivating the team, negotiating with
stakeholders and maintaining documentation. It is proved that people (Project
Team) follow the leader (Project Manager). As a leader, a project manager must
clearly communicate with his team, provide guidance, listen to their problems
and all this cannot be achieved without the proper combination of personality
and communication skills.
In software projects, we use communication to gather requirements, present the
project proposal, maintain documents, monitor and report status and manage
stakeholders. Communication skills help project managers in resolving the
in one place or with hundreds of other team members located at different parts in
a collaborative environment. Software industry has now realised its importance

Notes and various theories and communication models are being continuously evolved
to manage communication effectively.
----------------------
In a nutshell, we can say that communication is an important skill in software
---------------------- project management because of its wide scope, integral and complex nature,
impact on time and budget, impact on team motivation and formation and
---------------------- importance in negotiation.
----------------------
----------------------

1. An effective project manager spends about 50% of his time on
---------------------- communication.
---------------------- 2. Project team activities are divided into two parts: communication
and technical activities.
----------------------
3. In software project management, development phase is more
---------------------- important than communication.
----------------------
---------------------- Activity 1
----------------------
1. Find out how much time in a typical day you spend on talking and
---------------------- writing
2. What is the importance of using local language while communicating
----------------------
with subordinates? Explain with an example from your observation.
----------------------
---------------------- 8.3 MEANING OF COMMUNICATION

---------------------- The word communication has been derived from the Latin word ‘communis’,
which means common. Communication goes beyond commonality and it
---------------------- additionally incorporates the following three concepts- Transfer, Meaning and
---------------------- Information.
Understanding of the nature of communication is essential because it is the
----------------------
---------------------- of all the things one person does when he wants to create understanding in the
mind of another. It involves a systematic and continuous process of telling,
---------------------- listening and understanding.”
---------------------- In our day-to-day life, many times we share our expressions, feelings, thoughts
with others with some intention. At the same time, we also provide feedback to
---------------------- others. The process of exchanging thoughts or information with others is called
communication. The communication takes various forms as per the situation.
---------------------- For example, if your project manager is presenting information about the project,
----------------------

story with your friend, it is informal and personal communication. Generally, Notes
your project manager wants to share how the project is going to be executed so
that team members align themselves with the project. There are various reasons
information, convey message, share information, give direction etc.

In the communication process, we presume that the other person with whom
exceptional cases such as reminder notices, we may exchange same information

repeatedly. We can convey our message or information through spoken word
or through written words or through proper body language. Communication
effective communication.

1. Communication incorporates the following concepts:
i. Information
ii. Transfer
iii. Language
iv. Meaning
2. Communication involves a continuous process of
i. Understanding
ii. Listening
iii. Noting
iv. Quoting
3. Communication is a process of exchanging
i. Newspapers
ii. Thoughts
iii. Information
iv. Addresses
Activity 2
1. Take a project as an example and discuss its pros and cons and list
them down.
2. Consider ERP of a college ,discuss its various modules and list
down its modules and the users who are involved in the module.

Notes 8.4 PROCESS OF COMMUNICATION
---------------------- Communication is a two-way process. It needs at least two persons present,
without which communication is not complete and meaningful. For the sake of
---------------------- simplicity, we may call the persons as sender and receiver.
---------------------- For example, if two persons are communicating with each other, one of them
is the sender of the information and other is the receiver of the information.
---------------------- Sender and receiver are roles played by two persons and these roles can be
----------------------
information and so on.
----------------------
---------------------- Sender Receiver

---------------------- Encoding Decoding
Encode Message Decode
----------------------
Write Read
---------------------- Feedback
Speak Listen
----------------------
---------------------- Fig. 8.1: Communication Process
---------------------- readable to the receiver and transmits it over some medium. Then the receiver
---------------------- receives the message and decodes it. The receiver can send feedback to the
sender and complete the communication process. Feedback is important in any
----------------------
line indicates receiver only received message, second line indicates the receiver
---------------------- understood the message and the third line indicates receiver acted upon the
---------------------- message.
An effective communication must possess all the processes depicted in the
----------------------
----------------------
participants, style and form of communication, personal beliefs and attitudes etc.
---------------------- However, all such other parameters are important in effective communication.
For example, I am communicating with all of you about the knowledge and
----------------------
practices used in software project management. Here I assume that you have
---------------------- some basic knowledge and prior experience in software technology. Instead,
if I teach you some concepts of medical science, then you may not be able to
---------------------- understand or relate with your experience and the purpose of communication
may fail. Hence, before communicating, we must know that the receiver holds
----------------------
some relative knowledge.
---------------------- The two main functions of the communication process are encoding and
decoding.
----------------------
1. Encoding:
---------------------- For this, he must know what he wants to convey. Consolidating or

grouping of idea or thought or emotion into an understandable format Notes
is called encoding. We can encode and express our thoughts, ideas,
expressions in written words, spoken words or any form of body language.
While encoding, the sender must ensure that the level of understanding
of the receiver and the encoded message is complete in all respects.
For example, if you just say, “Today is my birthday”, what should the
receiver understand from it? Do you expect him to greet you? Do you
want to invite him for a party? In the above example, the message is not
completely encoded and may create confusion.
2. Decoding: On the other hand, the receiver interprets the messages
received with prior experience, knowledge or relation with the sender.
The language that we use in communication does not carry the full
meaning and does not have full control on what others may interpret.
Hence, encoding and decoding play a very important role in effective
communication.
To understand the communication process, macro activities of the sender
and the receiver are described below. However, as these activities are very
micro in nature, you cannot separate them out from each other during every
communication act. Our brain is habituated with all these activities, so we
cannot able to visualise or sense in our day-to-day communication. You can use
these activities to analyse your communication and improve any gaps to avoid
miscommunication.
Activities of the sender
The sender performs the following activities:
1. Decides what he wants to convey.
2. Encodes the message.
3. Decides the media to be used, for example, written words or spoken words
or body language.
4. Sends the message to the receiver.
5. Waits for feedback and reopens the communication or closes the
communication.
Activities of the receiver
1. Decides whether he wants to receive the communication.
2. Decodes the received message.
3. Prepares the feedback response.
he now becomes the sender and the other person becomes the receiver. The
same communication loop may occur repeatedly till the objective of the
communication is achieved.

Notes
----------------------

1. Consolidating or grouping of ideas or thoughts or emotions into an
----------------------
understandable format is called _____.
---------------------- 2. _______ is responsible for decoding the message.
----------------------
---------------------- Activity 3
----------------------
1. List down the new words or phrases that you use whenever you are
---------------------- addressing your subordinates.
2. It is essential for the project manager to understand whether the
----------------------
receiver has understood him/her during the communication session.
---------------------- Relate this statement to one of your experiences.
----------------------
8.5 COMPONENTS OF COMMUNICATION
----------------------
Understanding of the elements of communication process will enable us to
---------------------- grasp and use the process better.
---------------------- 1. Encode: Translate thoughts or ideas into a language that is understood by
others.
----------------------
2. Channel: Without the presence of two or more persons, communication
---------------------- cannot take place.
---------------------- 3. Message: The output of encoding in the form of ideas, thoughts,
information, feelings etc.
----------------------
4. Medium: Communication needs some form of medium to pass on the
---------------------- message, for example, spoken words for voice, written words on paper,
electronic mail through internet etc.
----------------------
5. The code: The language used to convey the message, for example,
---------------------- English, French, Hindi or body language.
---------------------- 6. Relation: There is always some sort of logical relationship between the
sender and the receiver, for example, two friends can communicate with
---------------------- each other, project manager and his team, boss and subordinate, parents
and their child, teacher and students, speaker and audience etc.
----------------------
7. Noise: Anything that interferes with transmission and understanding of
---------------------- message.
---------------------- 8. Decode: Translates the message into meaningful thoughts or ideas.
----------------------

Ingredients of Communication: Notes
Communication is not just sending and receiving messages or reading and
writing processes or speaking and listening in an activity. Communication
process involves some other visible and invisible factors and we must know
them to be effective communicators.
Visible factors: Visible means we can sense, hear or see, e.g. voice,
words, actions, physical appearance etc.
Invisible factors: These are micro-factors that we cannot see, hear or
sense and they are self-image, beliefs and values, emotions and thought
processes.

i. Code a. Media to pass on the message
ii. Noise b. Language used to convey message
iii. Medium c. Logical relationship
iv. Visible factors d. Anything that interferes
e. Actions
Activity 4
1. For how long can a person hear effectively? What happens after
that?
2. You are discussing an important aspect of project and one of your
team member yawns. How will you react?
8.6 BARRIERS TO COMMUNICATION

Most of the time, we experience that the message that we want to convey is
not completely understood or interpreted by the receiver or we may not get
appropriate response from the receiver through the feedback. Such scenarios
are symptoms of miscommunication. We must know what factors can affect
the communication process. The factors that create obstacles in smooth
communication are called barriers to communication. Once we know the
barriers, we can try to reduce these barriers. Barriers keep us away from
understanding other ideas and thoughts. Barriers can appear at any time during
the communication process. Broadly, we can classify the barriers into two parts,
internal and external.
Internal barriers: Examples of internal barriers are lack of interest in the
message, poor listening skills, attitude towards the sender or information,

Notes fear, mistrust, negative attitude, past experience, lack of common
experience and emotions.
----------------------
External barriers: Examples of external barriers include noise,
---------------------- distractions, internet problems, telephone line problems, disconnections
etc.
----------------------
The most common barriers observed are explained below.
---------------------- The language: Language is the main barrier to communication. Language
----------------------
understand the message. For example, imagine what will happen if I write the
---------------------- textbook in Chinese language and assume that you know Chinese.
---------------------- Vocabulary:
sender and receiver do not have common vocabulary, then that may lead to
---------------------- miscommunication. Suppose I asked what is NPV or BCWS, which stands for
Net Present Value and Budget Cost of Work Scheduled, the receiver may not be
---------------------- able to interpret it because he may not be familiar with the project management
----------------------
needs to be avoided.
---------------------- Culture: Every country has its own cultural codes and symbols having special
---------------------- meaning. For example, when two Indians meet with each other, they say
“Namaskar”. If an Indian person says Namaskar to a person in America, he may
---------------------- not be able to interpret it. To avoid such problems when the team is dispersed
across nations, usually cultural awareness programs are conducted, which
---------------------- explain the code of conduct and etiquette of other countries to the participants.
---------------------- Context: The context about which you are communicating must be familiar
to the receiver. For example, the receiver may not be familiar with software
---------------------- development project management and you are communicating with him about
---------------------- various terms used in schedule development. The receiver must be familiar with
---------------------- then only can the receiver decode the message completely and give you an
appropriate feedback.
----------------------
Voice: The quality of voice, pronunciation, accents etc. play a very important
---------------------- role in effective communication. For example, people in US/UK generally
speak faster and their accents and pronunciation, being different, may not be
----------------------
clear to other people outside their countries.
----------------------
----------------------
---------------------- 1. The quality of voice, pronunciation, accents plays a very important

role in effective communication.
---------------------- 2. Lack of interest in the message is an example of external barrier.
---------------------- 3. Not using common vocabulary can lead to miscommunication.

Notes
Activity 5
1. Identify various barriers to communication that you come across

while talking to you team members.
2. What initiative will you take to remove these barriers to
communication?
8.7 TYPES OF COMMUNICATION

There are various ways, forms and styles of communication that we use in
our day-to-day life as per the needs of the situation. For example, the formal
communication is used when the senior members or stakeholders are called for
a presentation on new project. Informal communication is generally used when
the team is small in size and the team members are familiar with each other.
Similarly, you can use different modes of communication, for example mobile
for urgent call or SMS, e- mail for written communication, etc. You must know
various modes of communication and acquire skills in that particular type of
communication. Some of you may be good at written communication but may
or may not be effective at oral communication or vice versa.
During software development, most of the project manager’s time is spent on
reporting and communicating and he also needs other skills such as listening,
needed for effective communication.

These skills are the key to executing good management skills. With good
management skills, you can have a team of members who together create an
recognise non-verbal signals and mutual understanding. Good communication

involves a set of complex skills.
There are mainly three types of communication skills- expressive skills,
listening skills and skills for managing the overall process of communication.
The skill fundamental to all these types of communication is emotional skills.
Expressive skills are required to convey messages to others through
words, facial expressions and body language. We cannot necessarily use
the same language for writing as well as speaking. There are various tribal
rather gesture can increase the effectiveness of communication. Gestures

entail the use of various parts of the body such as face, hands, neck, eyes,
lips etc. to express various emotions and non-verbal signals, for example,
most of the people nod their heads while listening or speaking. This type
of communication is mostly used by parents to control their naughty

Notes children in front of others. Also, gestures are used by the deaf and dumb
to ’talk’. Gestures are based on commonly accepted and understood
---------------------- protocols such as cupping your hand near your mouth for asking water or
---------------------- we cannot use gestures in every communication due to the limitation of
---------------------- body language. We cannot teach a subject to masses for longer durations
using only gestures.
---------------------- Listening skills are skills that are used to obtain messages or information
---------------------- from others. These help to clearly understand what a person feels and
thinks about you or to understand the other person closely.
---------------------- Skills for managing the overall process of communication help to recognise
---------------------- the required information and develop a strong hold on the existing rules
of communication and interaction.
---------------------- 8.7.2 Different Types of Communication
---------------------- After discussing the different communication skills, we will now go to different
types of communication, as explained below.
----------------------
1. Hierarchical Communication
----------------------
---------------------- of its personnel. For example, who will report to whom (lower management
staff or the subordinates should report to their bosses)?
----------------------
---------------------- management or middle management to top management is called upward

communication.
----------------------
b. Generally, orders or instructions are given by top management to middle
----------------------
----------------------
c. Many a times, you observe that employees seek information or share their
----------------------
of communication is called lateral or horizontal communication.
----------------------
In all of the communication, hierarchy acts as a barrier. Generally, subordinates
---------------------- are not open to their bosses and as a project manager, you need to establish a
proper rapport. Unlike other industries, there is not much hierarchy in software
---------------------- industry. Usually, all team members express their opinions and suggestions
---------------------- freely.
2. Formal and Informal Communication
----------------------
In software project management, many a times you have to access the
---------------------- information from your co-workers and put them in proper format and report
to customer or top management. Though accessing information and presenting
----------------------
information are part of communication, they differ on the approach adopted to
---------------------- perform such activity.
a. Formal communication: Formal communication is structured and pre-
----------------------
planned. That means what to communicate, whom to communicate, when
Notes
reporting templates and maintains the hierarchy. For example, various
status and progress reports etc. are usually communicated through formal
methods. Formal communication executes in controlled environment.
Most of the time, decisions are based on the facts received from formal
communication. Formal communication increases the reliability of the
information.
b. Informal communication: It is not always possible to access information
morale you need to discuss with them openly. You cannot ask direct
share sensitive information. As compared to formal communication,

informal communication is less formal, less controlled and more open.
Generally, this type of communication is used to access preliminary
information. Informal communication does not follow hierarchy of
information. The organisation culture is so open, that any subordinate can
discuss something with any senior. It is found that informal channel gives
more information and because of open environment, employees can share
their information freely without any barriers.
3. Oral and Written Communication
a. Oral communication is direct face-to-face communication between
two or more persons. In oral communication, the sender and
receiver exchange their thoughts or ideas verbally either in face-to-
face discussion or through any mechanical or electrical device like
a telephone.
In oral communication, the conveying person can ask questions
or sometimes when the communication is not understandable in
a proper manner, he can clarify its meaning. He can use different
gestures and postures to convey meaning. Oral communication
is generally possible where there can be either a direct contact
or message to be conveyed is of temporary nature. Meetings and
conferences, lectures and interviews are some examples of oral
communication.
Advantages of oral communication
It has the distinct advantage of being quick and prompt. It provides the
opportunity to both the sender and receiver of the message to respond directly.
Oral communication facilitates close contact and thus promotes mutual
exchange of thoughts, information, understanding and support.
Oral communication, through direct contact, undeniably inculcates a
sense of self-importance in the subordinates, which successively acts as
an inspiring element.
It also helps in bringing a responsive and supportive morale among
employees of an organisation.

Notes Oral communication further allows the superior to make a rapid evaluation
of subordinate’s action as well as reaction to any message transmitted.
---------------------- Disadvantage of oral communication
---------------------- Due to the dynamic nature of oral communication, there could be a
possibility of variety in the language used. Variation could be from
---------------------- geographical or social and cultural differences. As compared to written
---------------------- communication, it is less organised and less controlled.
As it is an ongoing process, the receiver needs to comprehend it fast.
---------------------- Otherwise, the receiver may miss some part of the speech and that can
---------------------- create confusion.
---------------------- and until every speech is recorded and it is not practically possible to
---------------------- record every oral communication.
Oral communication is not useful to convey messages to widely dispersed
---------------------- teams with different languages and cultures.
---------------------- b. Written Communication
---------------------- Communication through words may be in writing or oral. Written communication

entails transmission of message in black and white. It mainly consists of
---------------------- diagrams, pictures, graphs etc. Reports, policies, rules, orders, instructions,
agreements etc. have to be conveyed in written form for proper functioning of
---------------------- the organisation.
---------------------- Written communication guarantees that everyone concerned has the same
information. It provides a long-lasting record of communication for future.
---------------------- Written instructions are essential when the action called for is crucial and
---------------------- complex. To be effective, written communication should be understandable,
brief, truthful and comprehensive.
----------------------
Advantages of written communication
---------------------- There is no fear of interruption from the audience and you can take your
own time.
----------------------
It ensures transmission of information in a uniform manner.
---------------------- It provides a permanent record of communication for future reference.
---------------------- It is an idealistic way of conveying long messages.
---------------------- It ensures little risk of unauthorised alteration in the message.
It tends to be comprehensive, obvious and accurate.
----------------------
It is well suited to express messages to a large number of persons at the
---------------------- same time.
It can be quoted as legal evidence in case of any disputes.
----------------------
It allows use of graphics such as diagrams, pictures and graphs.
----------------------
----------------------

Disadvantages of written communication Notes
Immediate feedback is absent in written communication.
to learn.
The writer cannot judge the reactions of audience and change the contents
instantly.
Written communication is costly and time consuming.
Written communication is very formal and lacks personal touch.

It may be represented in a different way by different people.
We can express thoughts or convey ideas in a more organised way and
there is less chance of omission.
You can reread and rewrite the contents, which is not possible in oral
communication.
Fill in the blanks.

1. Messages in black and white come under _________ communication.
2. ________ communication is structured and pre-planned.
3. ________communication has the distinct advantage of being quick
and prompt.
Activity 6
1. As a project manager, what would you be more comfortable with-

oral or written communication and why?
2. You are the project manager and you want to hire programmers.
Which form of communication would you use to communicate
your resource requirements to the HR manager?
3. Which mode of communication would you adopt in the following
cases?
a. You want to convey status of the project to stakeholders.
b. You are in design phase and you want to brainstorm ideas.
c. You want to call an urgent meeting.

Notes 8.8 COMMUNICATION PLANNING
---------------------- By now, you are familiar with the concept of communication and the parts
of communication process. You are also familiar with various types of
---------------------- communication and the barriers to communication. In this section, we will
discuss how to manage communication in large projects.
----------------------
Imagine the difference when you talk to a known person or your team and when
---------------------- you talk to a stakeholder, including customers and team members from various
---------------------- countries.
As the team size grows, number of channels increases and that adds complexity
---------------------- to your communication. During project execution, you have to select and apply
----------------------
Collectively, communication management is a process of communication
----------------------
planning, information gathering and distribution, information storage and
---------------------- retrieval and reporting.
Communication planning might be a totally new concept for you. We indulge
----------------------
in day-to-day communication that may not require a detailed communication
----------------------
on making a plan before you communicate.
----------------------
The main objective of communication management process is to provide
---------------------- only required information and with the right format at the right time. Every
stakeholder has various information requirements from the project. For
---------------------- example the customer is interested in knowing the status of the project,
whether change request is properly incorporated, whether documentation is
----------------------
----------------------
needs to know the progress of the project, how funds are being utilised, whether
----------------------
pass on the information to an outside agency who is outsourcing and some
----------------------
information to government authorities and auditors etc. Above all, the project
---------------------- manager is responsible for communicating not only with every stakeholder,
but with the entire team involved in the communication process. However, the
---------------------- overall responsibility remains with the project manager.
---------------------- Imagine a team of 200 people spread throughout the world, speaking many
different languages with many different cultural ways of communicating and
---------------------- you will realise how planning is worth doing and the time that you require
---------------------- to communicate across such a huge team. As the team and its information
---------------------- Who will communicate with whom?

---------------------- What information will be included in project communication?
---------------------- Which project stakeholders will receive the information?

How often the information is distributed & updated?
----------------------

Notes
project communication plan?
Communication Channels
paths of communication across the project team. Communication channels

determine the complexity of communication. Adding just a single resource in
must know how to calculate the number of channels.

The number of channels is calculated as Channels = n(n-1)/2
Where n is the number of people on the project.
Now let us calculate the number of channels that exist in a team of 200 people.
By substituting value of n = 200 we will get
Channels = 200(200-1)/2 = 19900
If your team size is 200, then you have total 19,900 channels open for
it is there for large projects. All channels may not be necessarily active at a
communication management plan, you can control any large team information.
resources.
Fig. 8.2: Communication Path

As per the formula, the number of channels that exist in a team of four people
= 4(4- 1)/2 = 6. Total six channels exist and are shown by lines in the above
The next thing you need to do is analyse the communication requirements of

the stakeholders, for example, your customer may ask you to provide status
reports. Here you will have to analyse what information should be included in
status format and the frequency, for example, initially weekly status report can
be generated. As reporting is a time-consuming process, you cannot generate it

Notes or decide in what format status is reported and you have to make sure that every
week, the customer will get the status report. Once stakeholders’ information
---------------------- requirements are frozen, you will have to next decide the appropriate
communication technology used as a means of communication. Some of the
---------------------- questions described below will help you to determine the appropriate selection
---------------------- of technology:
Would it be better to communicate the information through an e-mail or
----------------------
telephone call?
---------------------- What technology is the team familiar and comfortable with, for example,
video conferencing, chatting, etc.?
----------------------
Should I send a letter through mail, since most of the time people ignore
---------------------- emails and do not respond to them? However, it becomes compulsory for
them to respond to receipt of conventional mail through post.
----------------------
How quickly do I need to communicate the information?
---------------------- After doing communication requirement analysis, all the gathered information
---------------------- is presented in tabular format called as communication management plan. The
sample communication form is shown below:
----------------------
What needs to be Purpose To Method of Frequency By Whom
---------------------- communicated whom Communication
----------------------
----------------------
----------------------
----------------------
---------------------- The communication plan can be more exhaustive. You can even add templates
or formats that you want to communicate. In ’Frequency’, you can write if it is
----------------------
whom’ describes the name of the person who is going to use the information
----------------------
---------------------- column, you can write the brief contents of the report or name of the standard
report. Inclusion of ’Purpose’ will add quality. Most of the time people generate
---------------------- lots of redundant information. This redundancy can be avoided if you mention
purpose. Redundancy is a time wasting activity for sender as well as receiver
----------------------
of the information.
----------------------
----------------------
----------------------
----------------------
----------------------

Notes

i. Redundancy a. Gathered information in
tabular form
ii. Communication planning b. Might be a new concept
iii. Communication Channel c. Stakeholders
iv. Communication management plan d. Time wasting activity

e. Determines the complexity of
communication
Activity 7
1. Assume that 5 new resources are added to your existing team of 5

resources. Calculate the total number of communication paths or
channels.
2. Find out more information on Video conferencing and Web
Meetings.
3. What do you suggest to avoid redundancy in communication?
4. What other information do you require to prepare communication
management plan?
8.9 MANAGING MEETINGS

Meetings are one of the important and essential activities in project management.
The project starts with a kick-off meeting and during project execution, many
a times, team members and customer representatives are called for meetings.
It is found that on an average 25% to 75% time is spent on attending meetings.
Managing meeting is one of the important skills that every manager must
possess. Communication skills play a very important role in managing meetings.
In large software projects, these meetings are planned during communication
management planning.
information, to discuss some important issues, to make unanimous decisions.

Meetings are conducted many a times during project execution. Meetings
are generally held before the beginning and ending of each phase and major
milestones achieved. Meetings help in planning and evaluation can be used to
make all the stakeholders aware of how the project is progressing. Each meeting
meetings, group meetings can be called during project execution.

Notes 8.9.1 Types of Meetings
----------------------
meetings.
---------------------- a. One to one meetings: These meetings are more informal and the project
leader can meet the team member individually. These are short meetings
----------------------
and are called when individual opinions are important. These meetings
----------------------
times, such a meeting is conducted to gather individual opinions because
---------------------- people generally do not share their opinions in public.
---------------------- b. Group meetings: In formal meetings, generally more than one person
is involved. As a group is involved, more communication paths are
----------------------
generally last longer. There is a chairperson or facilitator required to
----------------------
control the group meetings.
---------------------- Role of a Facilitator: The facilitator is responsible for the overall success of
---------------------- meetings. His main job is to control the meeting and keep people on track when
they deviate from the main objective. His main tasks include selecting and
---------------------- inviting participants for meetings, deciding the agenda, recoding opinions of
participants on paper, concluding the meetings and closing meeting in a fruitful
---------------------- manner. Depending upon the situation, he can get an assistant to help him in
---------------------- showing slides, taking notes, writing on the white board etc.
Role of Participants: Meeting participants are generally expert or executors,
---------------------- who can offer suggestions, share their views and help in generating alternatives.
---------------------- Generally, participants are related to the subject of the meeting. For example,
in design review meetings, participants could be chief architects, database
---------------------- designer, subject matter experts etc. They play an active and responsible role
needed in information sharing, problem solving and decision-making.
----------------------
Coach: Coach is a role and usually can be played by the facilitator of the
---------------------- meeting. The role of a coach is optional. Depending on the needs and maturity
of participants, separate coach is invited to guide the meeting. The role of a
---------------------- mentor is to improve the quality of meeting. He provides unbiased views and
---------------------- notes the behaviours of the participants that make the meeting go well or totally
fail.
----------------------
---------------------- Provide an Agenda ahead of Time
---------------------- Before calling a meeting, decide the purpose of the meeting and agenda of the
meeting and send it to participants before the actual meeting so that participant
---------------------- can prepare well and present necessary facts in the meeting. Most of the time,
meetings are called all of a sudden and purpose of the meeting cannot be
----------------------
mitigated. The thumb rule is that people get frustrated with such unmanaged
---------------------- meetings and tend to avoid if such meetings become a routine of their work.
----------------------

Set a time limit and keep to it Notes
problem solving sessions, meetings may last longer than hours. The time of
meeting is also important. It is observed that energy levels of team members are
not constant throughout the day. Usually performance is slow after lunch hours
and mid afternoon. If you call a meeting in this period, most of the participants
may not be hundred percent attentive.
Bring the right people together
Before the meeting, decide who needs to be invited, who can make the meeting
Many a times, it is found that the meeting room becomes a war room due to
unexpected behaviour of the participants. Not all the participants possess right
communication skills to express their views and draw conclusions.
Stick to the agenda
Most of the time, during discussion, people surf from one point to another and
lead the meeting in different directions. It is the responsibility of all participants
to express only relevant views and not divert the discussion. In case such a
situation arises, the facilitator must intervene and get back to the main agenda.
Let people know their responsibility in advance
People are generally not aware why they are called for a meeting. Roles and
responsibility make their thinking clear about what is to be done. Once they
know their roles, accordingly they can share their views. For example, suppose
you called a meeting to decide the budget of the project and the participants
are not aware that they are supposed to share their views on budget. Then they
would not even speak a single word and your meeting will serve no purpose.
Document meetings
Document every minute of the discussion, decisions and deliverables. Include
the list of participants along with their roles and responsibility, venue of the
meeting, date and time of the meeting. Take the signature of the participant on
minutes of the meeting. This documentation can be used for future reference in
case of disagreement among the participants.
Formal meetings are well planned and structured. Before calling a meeting,
decide the rule of meetings such as purpose of the meeting, expected duration of
the meeting, expected deliverables, roles and responsibilities of the participants,
the level of freedom given to participant to share their views etc.
Assign deliverables to participants
Once the discussion is over, write down actions to be taken and deliverables
preferably with time frames. At the end, conclude meeting with positive
outcomes and objectives achieved.

Notes
----------------------

1. Most of the time, during discussion, people surf from one point to
----------------------
another and lead the meeting in different directions.
---------------------- 2. Before the meeting, decide who is needed to be invited, who can
make the meeting entertaining.
----------------------
3. When more than one person is involved, it is called as informal meeting.
----------------------
----------------------
Activity 8
----------------------
1. Prepare an agenda for technical review meeting.
----------------------
2. Prepare a format for minutes of the meeting.
----------------------
---------------------- 8.10 COMPLEMENTARY SKILLS FOR EFFECTIVE

---------------------- COMMUNICATION
---------------------- Basic communication skills include one’s ability to speak, read, write and listen.
Usually we possess these four skills for one or more languages. However, to
---------------------- be effective, you need to optimise those skills. Some important skills that are
complementary to communication skills are presentation skills and listening
---------------------- skills. We will quickly look at each of them.
---------------------- Presentation Skills
---------------------- The presentation skills deal with how you present your ideas to the audience.
Presentation skills can be used to present your product feature to customers
---------------------- or project presentation to the sponsors. There are so many occasions where
you need to present your ideas. Presentation carries the impression of your
----------------------
product and organisation and builds the perception of the product. The quality
----------------------
more inclined towards the perception than acts. A good presentation helps in
---------------------- better comprehension of the idea conveyed. Unlike meetings, here the presenter
----------------------
at the end of the presentation.
---------------------- A good presenter must possess certain qualities and abilities such as proper use
----------------------
voice modulation.
---------------------- Tips for effective presenting
---------------------- To be effective at presentations, you need to have a combination of skills. Some
---------------------- makes a man perfect.

Notes
you will not be able to generate the interest of audience in what you are
talking.
your ideas.
3. Make yourself acquainted with the infrastructure in the conference room.
Check whether the microphone and overhead projector are working well.
4. If you are using PowerPoint, keep all slides organised and do not exceed
bullets. Average 5 points per slide are reasonable.
to avoid this, change the pitch of sound.

6. Logically organise the structure of your presentation.
7. Assess the knowledge and experience level of your audience before the
presentation. Try to map their knowledge level and give appropriate
examples, if required.
8. Get feedback from the audience and make sure that everything discussed
is clear to them.
Listening skills
We know that effective communication requires that the communication loop
be completed. That means the receiver has understood what the sender is talking
about. There is a difference between hearing and listening. While studying, you
may be hearing various sounds or may be hearing some music but your attention
is concentrated on study.
Effective listening means paying attention or concentrating on what we are
hearing. Only hearing words does not guarantee that you have understood the
message. People are generally preoccupied with their thoughts and they may
not be actively listening. Active listening involves our mind, all senses and our
attitudes and belief system. Active listening process entails hearing, focusing
on message, comprehension and interpretation, analysis and response.
cannot take place until and unless a message is heard and retained thoroughly
and positively by the receivers/listeners. Listening is a dynamic process.
Listening means attentiveness and interest noticeable in the posture as well
as expressions. Listening implies decoding (i.e. translating the symbols into
meaning) and interpreting the messages correctly in communication process .

Notes
----------------------

1. Only hearing words does not guarantee that you have _____ the
----------------------
message.
---------------------- 2. People are generally _______ with their thoughts and they may not be
actively listening.
----------------------
3. Listening is a ________ process.
----------------------
---------------------- Activity 9
----------------------
1. Information overloading is one of the main reasons why people get
---------------------- inattentive during hearing. Comment with examples.
---------------------- 2. Justify the connection between positive attitude and good
presentation with the help of an example.
----------------------
----------------------
Summary
----------------------
The communication process is important in software development.
----------------------
does when he wants to create understanding in the mind of another. It
---------------------- involves a systematic and continuous process of telling, listening and
understanding.”
----------------------
The basic communication model comprises of sender, receiver and
---------------------- encoding and decoding of message.
---------------------- Communication is said to be complete and effective when the receiver
has completely understood the message.
----------------------
Communication is a two-way process. It needs at least two persons
---------------------- present, without which communication is not complete and meaningful.
For the sake of simplicity, we may call the persons as sender and receiver.
---------------------- In large projects, communication requirements of stakeholders are
---------------------- gathered and accordingly, the communication plan is prepared, which
describes what is to be communicated, frequency, purpose, responsibility
---------------------- etc.
---------------------- Barriers keep us away from understanding other ideas and thoughts.
Barriers can appear at any time during the communication process.
---------------------- Broadly, we can classify the barriers into two parts, internal and external.
---------------------- In large teams, number of communication paths increases, as the team
size increases and that further adds to the complexity.
----------------------

Keywords Notes
Barriers: Something that stops or does not allow passing across

Skills: Ability to do something
Modulate: Change in pitch of voice
1. Find out other skills complementary to communication skills.
2. Search for more information about listening skills on net.
4. What information do you think needs to be gathered from the customer

for effective communication planning?
5. Find out how much time project managers spend in meetings and how
often meetings are conducted?
6. How important are technical skills for a project manager?
7. Explain the importance of informal communication.
8. What communication type would you choose in the following situations?
a. Making notes regarding a telephonic conversation
b. Trying to solve a complex problem
c. Informing team members for poor performance
d. Trying to discover the root cause of a problem
e. Making changes to contract
f. Holding review meetings
g. Conducting bidder conference

1. False
2. True
3. False

----------------------
1. Communication incorporates the following concepts:
----------------------
i. Information
---------------------- ii. Transfer
---------------------- iv. Meaning
---------------------- 2. Communication involves a continuous process of

i. Understanding
----------------------
ii. Listening
----------------------
3. Communication is a process of exchanging
---------------------- ii. Thoughts
---------------------- iii. Information
----------------------
----------------------
Fill in the blanks.
----------------------
1. Consolidating or grouping of ideas or thoughts or emotions into an
---------------------- understandable format is called encoding.
---------------------- 2. Receiver is responsible for decoding the message.
----------------------
----------------------
---------------------- i. b
---------------------- ii. d
---------------------- iii. a
iv. e
----------------------
----------------------
---------------------- 1. True
---------------------- 2. False
3. True
----------------------
----------------------
----------------------

Fill in the blanks.
1. Messages in black and white come under written communication.
2. Formal communication is structured and pre-planned.
3. Oral communication has the distinct advantage of being quick and prompt.

i. d
ii. b
iii. e
iv. a

1. True
2. False
3. False

Fill in the blanks.
1. Only hearing words does not guarantee that you have understood the
message.
2. People are generally preoccupied with their thoughts and they may not be
actively listening.
3. Listening is a process.
Suggested Reading
1. Rayudu, C.S. Communication
2. Rai, Urmila & Rai. Business Communication.
3. Davis, Gordon B., Margrethe H. Olson. Management Information System.

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Managing Risks
UNIT
9
Structure:
9.1 Introduction
9.2 Meaning of Risk
9.3 Types of Risks
9.4 Software Project Risks
9.5 Risk Management
9.6 Risk Management Models
9.6.2 Barry Boehm’s Risk Management Model
9.6.3 Software Engineering Institute’s Risk Management Model
9.7 Steps in Risk Management Process
9.7.2 Risk Analysis

Summary
Key Words
Suggested Reading
Managing Risks 205

Notes
Objectives
----------------------
----------------------
Discuss the characteristics of risk
---------------------- Identify different types of risk
---------------------- Explain software project risk
Describe various models of risk management
----------------------
Discuss the steps in the risk management process
----------------------
Identify and analyse risk
---------------------- Discuss the risk resolution and response planning
----------------------
9.1 INTRODUCTION
----------------------
In this unit, we will discuss the risks that can occur during project execution
---------------------- and the ways to manage them. We will study various risk management tools and
techniques.
----------------------
Let us understand the importance of managing risks. As you may be aware, risks
---------------------- are directly related to cost and time. Risks have substantial impact on these two
important aspects related to the project. Thus, an effective risk management
----------------------
strategy will save your time and money.
----------------------
most of the times, we are not sure about the future outcome of the projects
----------------------
due to various uncertainties. As we do not have knowledge of future, problems
---------------------- may occur. Risk management deals with avoiding such problems by careful
planning. As we move ahead in the project development, we will have more
---------------------- knowledge related to various aspects of the project, thereby predicting the
----------------------
uncertainty. Though uncertainty reduces as we move ahead, we cannot say risks
---------------------- are over now. In the initial stage of software development, risk is high because
uncertainty is high.
----------------------
Unforeseen events may have adverse impact on project cost, schedule and quality.
---------------------- If risk is not carefully planned and mitigated, the project may fail. Although we
cannot predict the future, we can still minimise the impact of risk by careful
---------------------- risk management. We can reserve some budget to handle such a situation. As
---------------------- software projects are large and complex in nature and the loss may be many
million dollars more, emphasis is given to formal approach to risk management.
---------------------- Risk varies from project to project and organisation to organisation. The formal
---------------------- approach provides guidelines, with which we can systematically identify, analyse
and mitigate the risk. Risk management is integral to a project and needs to be
---------------------- managed from project initiation till its closure. The capability, experience and
judgement of the project team and the project manager are crucial for managing
---------------------- the risks.

In this unit, we will discuss what risk is and how to manage- identify and assess- Notes
risks. We will also discuss various models of risk management. So let us begin
our discussion with what risk is.
9.2 MEANING OF RISK
possesses a threat to an organisation.

Risk is an uncertain event or condition that, if occurs, has a positive or negative
effect on a project’s objectives. Risks are future unforeseen and uncertain events.
Risks are probabilistic in nature, meaning such event may or may not occur
and, if it occurs, it may have one or more impacts. Every risk has two common
characteristics- uncertainty and loss or impact. For example, an unknown virus
wipes out the entire data of the project. In this example, we do not know the
kind of virus that will attack and when it will attack. However, it is obvious that
due to such attack, you will have to lose valuable data. Other example could be
your project need to be integrated with third party software. If the third party
does not provide their modules and necessary support in time, your project may
be delayed.
All risks may not always have negative impact on the project. Such risks are called
terms or improvement in process and performance. In project management, we

need to take such risks, for example, hiring experienced and costly resources.
times early than non-experienced resource. Here we are paying extra cost than
usual as a premium to avoid the schedule failure. On the contrary, the risk that
may have a negative impact will be called as ‘threats’.
It is not enough to just know what a risk is. In order to analyse, plan and mitigate
the risks, we must know the details of the risks. These details can be expressed
as characteristics of the risk. We discussed a few characteristic of risk such
as risks being probabilistic and uncertain in nature. These two characteristics
activities, which are uncertain. For example, though you know that a virus
attack will corrupt important data, you are not sure whether it will affect your
their occurrence. Other things you need to know about the risk are impact of
risk, the timing of risk and frequency of risk.
Characteristics of Risk
Risk characteristics are the attributes of the risk and these characteristics play
an important role in risk management.
The other characteristics of risk are:
Impact: Impact is the extent to which the risk can affect the project. A
charge penalty or even in extreme cases, he may terminate the project.
Managing Risks 207

Notes Sometimes reputation of a business will be at stake due to mismanagement
of the project.
----------------------
Time:
---------------------- impact of risk may vary with respect to time.
Frequency: The frequency of risk determines how frequently a risk can
----------------------
occur. Though the chances are less, the same risk may appear many times.
---------------------- Risk tolerance: Every organisation has certain capacity to withstand the
impacts of risk, for example, management may tolerate 5 to 10% increase
----------------------
---------------------- limit of the risk. If the impact of the risk crosses this limit, it becomes
unacceptable. This extreme limit is called as threshold of the risk.
----------------------
As risks are unforeseen and uncertain, we may not get every detail such as time
---------------------- and frequency for every risk. However, one should try to get the details. The
focus of risk management is to minimise the knowledge gap of the future event
---------------------- and minimise the impacts.
---------------------- Another important nature of risk is that it may induce another risk, for example,
if your estimation fails, it will further fail your schedule and budget.
----------------------

----------------------
---------------------- 1. Which of the following is not the characteristic of risk?
---------------------- i. Impact
ii. Time
---------------------- iii. Frequency
---------------------- iv. Risk Avoidance
v. Risk Tolerance
----------------------
----------------------
Activity 1
----------------------
Identify the risk that may occur due to virus attack on your system.
----------------------
----------------------
9.3 TYPES OF RISKS
----------------------
---------------------- determine the chances of such an event. Risks can be categorised into external
risk and internal risk. External risks are usually beyond our control. Some of
---------------------- the examples of external risks are delays caused by third party vendor, natural
----------------------
---------------------- result into decreased employee morale.

Another category of risk is usually within our control. These risks are Notes
predictable and are mostly concerned with what we have done in the past and
its future consequences. We can minimise the impact of such risks by effective
controlling of the processes. For example, huge employee turnover, increase in
number of defects etc. By applying proper motivation strategy, we can reduce
improve quality by reducing defects.
where and what may go wrong but we are not sure whether all such events will
1. Known-Known risk
2. Known-Unknown risk
3. Unknown-Unknown risk
The following diagram depicts these three risks along with the level of
uncertainty and the technique used to mitigate the risk.
Project Contigency Management

Estimate Reserve Reserves
Known-Known Known-Unknown Unknown-Unknown
Uncertainty
Fig. 9.1: Risk Types

1. Known-Known Risks
Most of the time, we know what will generally happen and about its probability
to happen in the current project. In other words, we know the types of risk as
known-known type of risks. We can get the knowledge of such events from
our experience or others’ past experiences. As we know well in advance the
occurrences of such events and we have complete information about what may
go wrong, we can mention such information in the project management plan
and keep ready the risk mitigation plan to minimise the negative impact of such
events.
Most of such risks are themselves constraints, for example, improper
documentation and incorrect requirements that could delay the project
schedule. Once you know that similar risk may exist in your current project,
you can prepare a project management plan and make it compulsory to your
Managing Risks 209

Notes team to adhere to standard templates, conduct timely reviews and get customer
----------------------
2. Known-Unknown Risks
---------------------- Many a times, we do not have complete access to the full information about
any particular event. We know only a little part of such an event based on our
----------------------
prior knowledge. For example, we know certain events, e.g. a key employee
---------------------- may leave the job prior to project completion, increase in number of defects
can delay the project schedule and cause cost overrun, system may crash due to
---------------------- hardware failure or virus threat. However, in all of the above examples, though
we know what type of risks could occur, the possibility, frequency and volume
----------------------
of the risk is unknown to us.
---------------------- For example, how many employees will leave the job and when or number of
defects that can be found etc. We know the type of risk but do not know about
----------------------
the probability and volume of loss. Hence, such types of risks are called as
---------------------- Known-Unknown risk. Such types of risk are generally taken into consideration
in risk management planning and are clearly described in the risk management
---------------------- plan. Most of the risks are assumptions and need to be noted. The unknown part
adds complexity to the management of such risks. For instance, how can one
----------------------
exactly predict the number of defects that can be found in the present project?
----------------------
the project management team and the project manager.
----------------------
3. Unknown-Unknown Risks
---------------------- In unknown-unknown risk, we are completely unaware of anything that can
---------------------- happen. We cannot identify such risk in advance since we do not know the kind
of risk that may appear and the probability of its occurrence. Managing such a
---------------------- risk is really a challenge. These risks can cause severe to less severe damage to
the project. However, there is one way to cope with such an event and it is the
---------------------- contingency budget. This budget will help us in managing such risks. We cannot
---------------------- avoid such risks but we can cope with the losses owing to the contingency plan.
Once such an event happens, then it becomes the known-known or known-
---------------------- unknown and is usually recorded in lessons learned document for future
---------------------- reference.

----------------------
Fill in the blanks.
----------------------
1. __________________ are usually beyond our control.
---------------------- 1. In unknown-unknown risk, we are very little aware of anything that
can happen.
----------------------
----------------------

Notes
Activity 2
1. Identify various risks that are likely to occur for the following
applications:
a. Library management system
b. Online sales system
c. ERP system
9.4 SOFTWARE PROJECT RISKS

Risk can occur any time during the project development. There can be few risks
or a large number of risks. Further, the risk can occur at any stage during the
software development process. The occurrence of risk can affect the schedule,
the types of risks and the potential sources of risk. While understanding the
software project risk, we need to look at various sources of potential risk. The
sources of risk could be project risk, technical risk and business risk. Let us
look into each one.
1. Project Risk: Potential source of project risk could be from various
project processes such as project planning, execution, controlling etc.
Projects are complex undertakings and due to their unique nature, the
project plan may itself be a risk. Some of the potential project risks are
project estimation, budget and schedule.
2. Technical Risk: The great source of technical risk is technology itself.
Technical risk has serious impact on the quality and schedule of the project.
For example, a project team working with new technology such as object-
oriented programming may delay the project schedule due to not having
enough hands-on experience with the new technology. Technical risk
could arise due to over-optimistic attitude of the team. Often the novice
programmers working on new technology experiment with new features.
These features may not be fully supported by the software vendor, causing
bugs in the software.
3. Business Risk: Business risk considerably affects the revenue of the
the business, newly launched software product not appreciated by the

customer or product failure due to weak marketing are the examples of
business risk.
Unlike the hazards of daily living, the risks in software projects must often be
is required. Such an approach involves studying the experiences of successful
Managing Risks 211

Notes project managers as well as keeping up with the leading writers and thinkers
Software Risk Management:
---------------------- Principles and Practices, has listed the following top 10 software risk items:
---------------------- 1. Personnel shortfalls
2. Unrealistic schedules and budgets
----------------------
3. Developing the wrong functions and properties
----------------------
4. Developing the wrong user interface
---------------------- 5. Gold-plating – giving extra than required
---------------------- 6. Continuing stream of requirements changes
---------------------- 7. Shortfalls in externally furnished components
8. Shortfalls in externally performed tasks
----------------------
9. Real time performance shortfalls
----------------------
10. Straining computer-science capabilities
----------------------
----------------------

---------------------- 1. Which of the following are the potential software project risks?
i. Project risk
----------------------
ii. Schedule risk
----------------------
iii. Technical risk
---------------------- iv. Business risk
---------------------- v. Budget risk
----------------------
Activity 3
----------------------
---------------------- For Online Banking system, identify the potential source of project risk,
technical risk and business risk.
----------------------
---------------------- 9.5 RISK MANAGEMENT

---------------------- Why do we have risk? The answer could be two-fold. One reason is that no one
----------------------
event will occur. The other reason could be our past or present mistakes that
---------------------- may pose a risk for tomorrow.
---------------------- Over a period, software industry has matured enough and is able to identify
potential risks. Many common sources of risks are known, such as virus threats,
---------------------- hardware failure, power outage etc.

However, we cannot predict when that event will occur. For example, we Notes
cannot predict when power will go off or predict when the hard disk will crash.
Both of these events are risks since they can cause huge potential loss. If we
possessed complete knowledge, we need not bother about risks, as we would
know certainly what is going to happen in the future and accordingly we could
plan and try to minimise the impact of consequences.
Now let us understand how our past and present mistakes or indecisiveness
can trigger risk in future. Assume that despite issuing many warnings, if one of
your programmers could not perform well, then you need to replace him with
schedule may be delayed. Here your project schedule is at risk. Another most
common scenario is that if requirements are not properly taken, your project
may have potential risk of project failure. In both the examples, if you control
the present situation, you could probably minimise the impact of the risk.
The main objective of risk management is to minimise the potential impact
of risk when it materialises. Usually, risks can be dealt with proactive as well
reactive strategy.
Reactive Strategy
Most of the projects fail because they do not have risk management plans.
Project teams adopt wait and watch approach. If anything bad happens, they
start working around with trials and errors. Reactive strategy is not advisable.
Imagine that you are handling one of the very large and complex projects. Your
team leader assumes that as a hardware system is recently installed, there will
not be any hardware failures. He/she does not bother to take the backup of the
source and the documentation and unfortunately, a new virus attack corrupts
the entire data.
Proactive Strategy
Plan Analyze Mitigate
Fig. 9.2 Proactive Approach of Risk Management

To systematically manage the project, one should adopt the formal proactive
approach to risk management in which risks are well ahead planned. The risk can
be proactively managed by risk planning, risk assessment and risk mitigation.
Let us take an example and explore how the risk can be managed. Assume that
you are the project manager of a small software start-up company and you are
developing software for the client who resides outside your city. As a part of the
end user training, you invited all customers’ key employees for attending the
entire day training program. Now what risk do you think will occur and cause
potential loss to carry the training activity? Let us think what may go wrong.
Managing Risks 213

Notes to carry out for a successful training program. The list items could be activities,
constraints or assumptions. For example, you need to have one conference hall,
---------------------- computer, software and projector (if required) and most importantly, the trainer
and customer’s end user. If anything fails, your activity may totally fail and
---------------------- your position will be at stake.
---------------------- Usually we organise and coordinate the components of the activity. But imagine
what will happen if all of a sudden the power goes off or the trainer cannot
----------------------
---------------------- illness. Imagine the frustration of the customer and loss of his employee’s time.
Most of the end users are top management executives and they cannot afford
---------------------- loss even of one day, just because of power failure.
---------------------- In this case, risk is power failure and loss could be customer’s valuable time and
probably you may not get repeat orders from the same customer in the future.
---------------------- As a good project manager, you should behave like a good risk taker and not as
----------------------
and we take it casually. If you have a proper risk management strategy, you
---------------------- can save the customer’s time if such an event occurs. The simple strategy is to
identify all potential risks such as power failure, trainer not reaching, software
---------------------- crash during training etc. Once all such risks are listed out, you can analyse and
prioritise because there could be a number of risks and you cannot plan them
----------------------
with equal priority. In the above case, power failure is the highest risk and needs
---------------------- to be planned in top priority.
Once risks are prioritised, what you can do next is develop a risk mitigation
----------------------
plan. For example, to mitigate power failure risk, you need to identify and
---------------------- analyse the alternatives such as arranging generator backup on rent or search for
conference hall equipped with battery backup. You can also think of purchasing
---------------------- UPS/inverter for your company. Likewise, you can keep other trainers ready
and ask them to carry out training without computer aid. Each such alternative
----------------------
is further analysed for cost. The purpose of the analysis is that you should not
---------------------- spend much cost on risk mitigation. The risk mitigation cost should always be
---------------------- management?
----------------------
----------------------

1. Risk can be proactively managed with the help of:
----------------------
i. Risk planning
----------------------
ii. Risk assessment
---------------------- iii. Risk control
---------------------- iv. Risk coordination
---------------------- v. Risk mitigation

Notes
Activity 4
If you are a Project Manager for developing an SMS banking system,

what will be your proactive strategy for risk management?
9.6 RISK MANAGEMENT MODELS

The Project Management Institute, the Software Engineering Institute and Dr.
B. Boehm suggested models for risk management, which are popular among
globally accepted practices. Let us discuss each of these models.
The following diagram illustrates the basic risk model derived from the Project
Management Institute risk model.
Project Risk Management
Risk Risk Response Monitoring &

Analysis Planning Control
Qualitative Qualitative
Analysis Analysis
Fig. 9.3: Basic Risk Model

Project Management institute’s Risk Model consists of six processes namely
analysis, response planning and risk monitoring and control.

Risk management planning process decides how to approach and
conduct the risk management activities of a project.
events and symptoms of risk. This process answers the question “What
are the risks?”
Subjective risk information is not enough and
techniques, value of risk mitigation versus value of loss is calculated.

That means, how much value of the opportunities is to be pursued by
avoiding potential threats.
Risk Response Planning: The process determines how to mitigate the
risk by identifying the reserves required in both dollars and in terms of
efforts. This process answers the question “What should be done about
the risk?”
Managing Risks 215

Notes Risk Monitoring and Control: Once planning is over, project execution
begins. During execution, the planned risk may or may not occur. All
---------------------- these changes are continuously monitored and controlled in this process.
This process evaluates the action taken, documents the risk results and
----------------------
---------------------- 9.6.2 Barry Boehm’s Risk Management Model
----------------------
---------------------- discussed in Boehm’s Risk Management Model.

----------------------
Risk Assessment
Risk Analysis
----------------------
Risk Prioritization
----------------------
Risk Management
---------------------- Risk Management Planning
---------------------- Risk Resolution

Risk Control
---------------------- Risk Monitoring
---------------------- Fig. 9.4: Barry Boehm’s Risk Management Model

Boehm’s risk model comprises of two main activities, namely risk assessment
----------------------
---------------------- analysis and risk prioritisation activities. Risk control activity is further divided
into risk management planning, risk resolution and risk monitoring activities.
----------------------
Risk Assessment: In risk assessment, you have to identify the potential
----------------------
gathering tools such as checklist analysis, decision driver analysis and
---------------------- problem decomposition. If the project team has experience in executing
----------------------
checklist. If project domain is totally a new decision, driver analysis and
----------------------
for qualitative and quantitative factors. After risk analysis, the risk priority
---------------------- is decided, based on the relative potential for occurrence and impact of
----------------------
Risk Control: Risk control process comprises of risk management
---------------------- planning, risk resolution and risk monitoring. Risk management can
---------------------- be accomplished with the help of tools, e.g. consulting risk experts,
---------------------- a way to avoid the risk and risk transfer means transferring part of the
risk to the insurance agency by paying the premium. Risk resolution is
---------------------- accomplished through prototypes, simulations, benchmarking etc. During
---------------------- the risk monitoring process, all risks are tracked and corrective actions
can be taken.
----------------------

9.6.3 Software Engineering Institute’s Risk Management Model Notes
The Carnegie Mellon University’s Software Engineering Institute developed a
software risk model. The model is based on Shewhart-Deming Plan-Do-Check-
Act Cycle. The model provides information and feedback on the risk activities,
described below.
Control
Track Identify
Paln Analyze
Fig. 9.5: Software Engineering Institute’s Risk Management Model

Identify: Advance searching of risk before it is materialised.
Analyse: Transfer risk data into decision-making information and evaluate
done in risk analysis process.

Plan: Plan describes the risk information data along with mitigation plan
and the ways to implement those action plans.
Track: In this process, risk indicators and mitigation actions are
continuously monitored.
Control: During project execution, if anything deviates from the risk
management plan, it is to be corrected during control process.
Fill in the blanks.

1. Boehm’s risk model comprises of two main activities, namely
______________ and ____________.
1. Identify the processes of the SEI risk model.
i. Identify
ii. Analyse
iii. Manage
iv. Monitor
v. Control
Managing Risks 217

Notes
Activity 5
----------------------
---------------------- Study the Shewhart-Deming Plan-Do-Check-Act Cycle.
----------------------
9.7 STEPS IN RISK MANAGEMENT PROCESS
----------------------
After studying risk management, let us discuss the various steps involved in
---------------------- risk management process:
----------------------
---------------------- Risk ide

The methods that can be followed to identify the risk are checklist of potential
---------------------- risk, project survey, brainstorming and problem decomposition. Checklist is a
document that describes what the risks on the past projects that have occurred
---------------------- were and what to check during the project execution. For example, the checklist
----------------------
power backup, whether data is archived, whether proper document is maintained.
---------------------- From these checkpoints, you can identify most common risks that can occur in
the project.
----------------------
Historical records from past projects can help to identify the risks. Every
---------------------- organisation prepares one document called lesson-learned-document, which is
prepared after completion of the project. It broadly describes learning from
---------------------- experience. Experience may be good or bad. It also explains how the project
---------------------- team tackled any risk. You can refer to this document to identify the risk.
Brainstorming and review of project survey also help if the project domain is
----------------------
the company culture and the risk tolerance limit of the organisation.
----------------------
Company culture can also be a source of risk, for example, many organisations
---------------------- do not follow documentation and communication standards, they do not have
----------------------
game takes over. Knowing the project background and project scope statement
----------------------
Depending on the complexity of the project, you can add or eliminate the potential
----------------------
----------------------
As the team is a discrete composition, team members can come with risk
---------------------- related to their task. Programmers, for example, can share technical risk more
effectively than a separate source for identifying all such risks.
----------------------
We will look at some common sources of risks such as business impact, customer
----------------------
----------------------
risk by asking relevant questions in that category. For example, if your projects
----------------------

Notes
risk.
Business impact of risk
1. Effect of product on company revenue

2.
3. Cost of delay
4. Whether product aligns with customer needs and the level of sophistication
5. Compatibility of the product with other software
risk.
Customer risk
As each customer is unique, they have different sets of needs. The organisation
culture, the domain of the customer, their needs for the product can be different
for different customers. Hence, you need to carefully consider all such aspects
while identifying the risk since they can be a potential risk to your project. Some
of the common risks associated with the customer are the past experiences with
the customer. If the customer is new, the risk is comparatively higher than the
existing customer.
product requirement is needed. If customer is not clear with the requirements,

your project may be at high risk. Availability of customer time and his willingness
to share the knowledge etc. are some of the areas that need to be given attention
Process risk
Major percentage of risk is related to the processes that are followed for software
can be a great source of project risk. To assess process-related risks, you

can check up whether your organisation has a written policy statement that
emphasises the importance of standard processes for software development.
Is there a written description of the process that explains how to execute the
process and measure the process? Does your organisation provide formal
training on process standards and team’s compliance with the standards? Is
there any process for tracking and reviewing the performance of third party
consistency among software processes? Does your organisation follow regular
if any? All these are process-related concerns. The answers to these questions
will tell you the maturity level of the process. Immature processes are a big
source of potential risk.
Managing Risks 219

Notes Human resource related risk
Let us quickly look at the questions suggested by Boehm to assess the risk
----------------------
associated with staff experience and size.
---------------------- Are the best people available to execute the project?
---------------------- Do the people have right combination of skills?
---------------------- Are enough people available?

Is the staff committed for the entire duration of the project?
----------------------
Does the staff have the right expectations about the job at hand?
----------------------
Has the staff received necessary training?
---------------------- Will turnover among the staff be low enough to allow continuity?
---------------------- If the answer to any of these questions is “no”, further investigation should be
undertaken to assess the risk potential.
----------------------
----------------------
----------------------
gathering techniques, diagramming techniques, checklists and assumption
----------------------
analysis, Delphi technique and SWOT analysis. These tools are generally used
---------------------- for information gathering.
Delphi technique
----------------------
---------------------- risk across the project stakeholders and dispute on what to be included as a risk.
To help resolve this issue, Delphi technique can be used. Delphi technique is
----------------------
used to build consensus of experts who participate anonymously. The technique
---------------------- is based on the principle that the opinions of structured group are more accurate
than those of unstructured group.
----------------------
Delphi technique is a method for structuring a group communication process
---------------------- so that the process is effective in allowing a group of individuals as a whole
to deal with a complex problem. In this technique, a request for information is
---------------------- sent to the experts. Then the experts answer the questionnaires in two or more
---------------------- rounds. After each round, a facilitator provides an anonymous summary of the
experts’ answers including forecast from previous round as well as reasons they
---------------------- provided for their judgements. Thus, experts are encouraged to revise their
earlier answers in light of the replies of the other members of their panel. It is
---------------------- believed that during the process, the range of the answers will decrease and the
---------------------- group will converge towards the correct answer. The process is stopped after
---------------------- stability of results etc. Delphi technique helps to reduce bias in the data and
----------------------
----------------------

SWOT analysis Notes
SWOT analysis is the most common and widely accepted tool developed by
Albert S. Humphrey. This tool is mainly used in decision-making and planning.
It can be presented in many ways, as in four Quadrant diagram. SWOT analysis
tool is generally used to analyse the Strengths, Weaknesses, Opportunities and
Threats of a particular risk.
assessing projects or business ventures, making decisions, solving problems,

evaluating candidates for a position to marketing strategy formulation and in
our project management for risk planning. In the SWOT analysis technique,
each risk is plotted in the four quadrants, namely Strengths, Weaknesses,
Opportunities and Threats. The Quadrants where the weaknesses and threats are
the highest and the quadrants where strengths and opportunities are the lowest
will represent the highest risk on project.
Carrying out a SWOT analysis involves identifying internal strengths and
weaknesses as well as examining external opportunities and threats and then
seeing how they relate to each other. This interesting insight alerts you to
your weaknesses so that no threat can catch you unaware any longer. With
little thought, you can understand your strengths and uncover the greatest
opportunities that you are well placed to take advantage of and thus achieve
your goals.
Let us understand how to take an inventory of the four components.
Strengths: These are the internal attributes that add value and give you a
competitive edge over others. If you have enough strength, you can easily cope
with a risk. For example, if your team is technically competent, you can manage
technical risks easily. In order to identify the strength of the team, you can
explore the questions like where does your team do well, what advantages you
have over others and what relevant resources you have access to.
Weaknesses: Weakness is generally a gap in or lack of capacity and capability.
In order to cope with the risk, you need to reduce your weakness and increase
the strength. You can identify weak areas with the help of probing questions
such as what are you not doing well, what should you improve, what should you
avoid etc. Usually, the weakness of one team member can be compensated by
to achieve results, lack of experience, inferior service, damaged company

reputation or poor communication.
Opportunities: Opportunities are external factors. Sometimes it is risky to
handle a technically complex project but it opens an opportunity for future
projects. Your team will have an opportunity to learn on new technology that
they can use in other projects.
Threats: Threats are external obstacles in your path that are largely beyond
your control. They are characterised by unfavorable trends like employee
turnover, system crash and obsolescence, competitors with superior skills/
Managing Risks 221

Notes products, changing requirements and changing technology. Yet, what constitutes
---------------------- consumer need’ can be an opportunity for a company that can meet that need
while a threat to another company that cannot.
----------------------
On the whole, a formal SWOT analysis not only increases your awareness of
----------------------
to maintain, build and leverage your strengths as well as deter or eliminate
----------------------
weaknesses so as to pursue, exploit and capitalise on the opportunities even
---------------------- while avoiding, countering or at least defending against potentially devastating
threats.
----------------------
9.7.2 Risk Analysis
----------------------
----------------------
In reality, a project has time and budget constraints. Practically, you cannot
----------------------
budget effectively, you need to set the priority of the risk such as high priority,
---------------------- moderate, critical, low risk etc. Top management generally sets the criterion for
----------------------
---------------------- quantitative aspects.
---------------------- Qualitative analysis
----------------------
----------------------
qualitative analysis of data, categorisation of risk and prioritisation based on
---------------------- available data. Qualitative analysis is an iterative process and may occur many
times during project execution.
----------------------
We know that to measure qualitative
---------------------- aspect, we should know the characteristics of that object. Hence, in order
to perform qualitative analysis, we must identify the characteristics of
---------------------- the risk. The characteristics of the risk will help us to distinguish one risk
---------------------- from other. Once we distinguish risk based on their characteristics, we
can analyse and set the priority. The characteristics of a risk are generally
---------------------- decided by the organisation. Some of the examples of characteristics are
probability of a risk, impact of a risk on project objective, category of the
---------------------- risk, time frames, risk tolerance, etc.
---------------------- ii. Qualitative analysis of data:
qualitative data for each risk is collected through interview, reference
----------------------
data of past projects. Once data is collected, every risk is assessed for
---------------------- its probability and impact on the project. While collecting data, enough
precaution needs to be taken to protect data from the bias of individual.
----------------------
----------------------

iii. Risk prioritisation: Notes
exposure of the risk on project. The risk exposure can be calculated as
product of probability of risk and the loss or impact of the risk, Risk
Exposure = Probability x Impact.
Assume that probability of power failure is one and the loss (here major
loss is time loss) is 10000 dollars due to power failure, thus by substituting
values, we can calculate the risk exposure for power failure risk as RE
= 1x10000 = 10000 dollars. You can calculate risk exposure for each
iv. Categorisation of risk: We have seen various categories or sources of
risks along with the priority are grouped as per their categories and further
analysed. Categorisation helps in relative study of the risk that leads to
the better understanding of possibility and magnitude of risk in similar
categories.
Quantitative Risk Analysis
The main objective of quantitative analysis is to provide the overall risk
estimation of the project to the management. In qualitative analysis, we only
focus on individual risk. However, these qualitative details need to be compiled
and given to the management.
objective, how much contingency reserves are required to provide the level
of certainty based on risk tolerance, what risk areas threaten maximum loss
etc. This kind of information can be generated after the quantitative analysis
of qualitative data. Quantitative risk analysis covers all the risks. Quantitative
analysis is generally performed after qualitative analysis. However, in a small
project, both qualitative and quantitative analyses are done simultaneously after
Tools and Techniques
and represented. Once data is gathered, it can be further modeled and analysed.
For analysis and modeling, techniques such as sensitivity analysis, expected
monetary value analysis, decision tree analysis and Monte-Carlo analysis could
be used. All these techniques are based on mathematical and statistical methods.
Prior knowledge of statistics will help you to understand the techniques in
more detail. Few techniques such as Monte-Carlo are rarely used in software
project management. The knowledge of these tools becomes essential when the
necessary that you should use all these tools in all projects.
The main purpose of overall project risk management is to effectively cope up
with risk with minimum loss to the project. With proper risk resolution strategy,
Managing Risks 223

Notes impact of risk qualitatively and quantitatively, you can plan what you are going
to do to mitigate that risk. This plan is called as ‘risk response plan’ or ‘risk
---------------------- mitigation plan’.
---------------------- Risk Resolution Strategy
----------------------
risks in a project. This is done by reducing the scope and quality without having
---------------------- any substantial impact on the objectives of the project. This is done to reduce
the impact of any uncertainty on a project caused by circumstances that have
---------------------- not been foreseen during its planning. A risk resolution strategy is a plan, which
takes the overall view to mitigate the risks and safeguard investment activities.
----------------------
---------------------- action that has to be taken to carry out this risk resolution strategy. We will
discuss below most commonly used risk resolution strategies.
----------------------
Proactive prevention
---------------------- Risk mitigation is a proactive strategy in which the actions are taken to reduce
---------------------- the impact of risk and minimise the probability of risk. For example, you can
hire or assign an experienced resource to handle the complex activities of the
---------------------- project. Though it will not avoid the risk, the impact can be substantially reduced.
If the project is too large and the team is dispersed across the globe, you can use
---------------------- automated tools to support software engineering and project management tasks.
---------------------- Keep complex risk outside the scope
---------------------- Sometimes your team is not competent enough to handle technically complex
project and outsourcing is a risk. In that case, the only option that remains is to
---------------------- avoid that risk. You can negotiate with the customer and eliminate the complex
portion of the scope.
----------------------
Outsource the risk
----------------------
If the above two options do not work and the customer insists on keeping the
---------------------- critical requirements in the scope, the only option remains is to transfer the risk
to some expert agency and get the work done from them. It is similar to the
---------------------- life insurance cover we get from insurance agency by paying a premium. In
----------------------
a premium. At the same time, the expert agency (other organisations that carry
---------------------- out the risky area of the project) bares the loss due to risk.
----------------------
like investing in share market. You must know various strategies to deal with
---------------------- positive risk or opportunities.
---------------------- Invest More

In order to handle more complex projects and take the competitive advantage,
---------------------- you can hire more experienced personnel by paying them best of the industry
---------------------- pay package. You can keep reserve staff to handle more projects at a time. As
----------------------

you invest more in technology and resources or anything else, for example, Notes
maintain various standards such as CMMI, initially you have to invest but as
Co-creation
We have discussed that some of the risks are basically constraints. For example,
your organisation’s core area is to provide business solutions like ERP. However,
certain projects require system-level programming, which your organisation
experts in system programming.

In risk response planning process, a response or strategy is developed for each
item in the risk prioritisation list. It may include a primary choice and a backup
option. Responses to the risk can be further categorised in three methods:
1. Accepting the consequences if the event occurs. In this, active acceptance
would involve developing a contingency plan that would be executed if
the risk occurs. Passive acceptance would allow the risk event to occur
(e.g. making less money if the project is a few weeks late).
2. Avoiding the consequences by eliminating possibility of the event from
occurring.
3. Mitigating the risk by minimising the probability of occurrence or
risk elsewhere (in a software project, this might mean passing the risk
onto a subcontractor or to the customer).
Typical responses for risk include procurement, contingency planning,
alternative strategies and insurance. With procurement, products or services are
acquired from outside the project to help mitigate the risk (e.g. hire a consultant
who has experience with the new technology being used). As mentioned above, a
contingency plan indicates active acceptance of the risk. Developing alternative
strategies is one possible means of avoiding a risk (e.g. a different approach to
development may eliminate a risk). Bonding is an example of insurance, which
minimises the impact of a risk. Once the strategies have been determined, they
should be documented in a risk management plan or as part of the project plan.
Managing Risks 225

Notes
----------------------

1. ___________________ is used to build consensus of experts who
----------------------
participate anonymously.
---------------------- 1. To check whether your organisation has a written policy statement is
required for which of the following risks?
----------------------
i. Business impact risk
---------------------- ii. Process risk
---------------------- iii. Customer risk
---------------------- iv. Human resource risk
----------------------
1. For quantitative analysis and modelling, which of the following
---------------------- techniques are used?
---------------------- i. Sensitivity analysis
---------------------- ii. Delphi technique
iii. Expected monetary value analysis
----------------------
iv. Decision tree analysis
----------------------
v. SWOT analysis
---------------------- vi. Monte-Carlo analysis
----------------------
---------------------- Activity 6
---------------------- 1. As the project manager for a major software company, you have
---------------------- been asked to lead a team that is developing online bill payment
system. Identify, analyse and prepare the risk response table.
----------------------
2. Discuss with software project managers as to how they do the risk
---------------------- analysis and the techniques used for the same.
----------------------
Summary
----------------------
Software risk management is an essential and important activity in
---------------------- software project management.
---------------------- Software development is complex in nature. It imposes various risks such
as cost and schedule overrun, technological and business risks.
----------------------

Risks are nothing but unforeseen events, which are probabilistic in nature. Notes
Risk may or may not occur but we need to make a risk contingency plan
to mitigate that risk.
Risks are important because risks have negative impact on projects in
terms of direct monetary loss or loss of reputation, project failure etc.
Risks occur because of various constraints such as knowledge of future,
technical competency, resources and budgets etc.
risks are called positive risk or opportunity while negative risks are called
threats. For example, viral threat can damage valuable data, a key person
may leave the job, this can cause schedule delay etc.
risk, known-unknown risk and unknown-unknown risk.

In unknown-unknown risk, we are completely unaware of anything that
can happen. We cannot identify such risk in advance since we do not know
the kind of risk that may appear and the probability of its occurrence.
The sources of risk are project risk, technical risk and business risk.
The three risk management models insist on proactive strategy of risk
In the steps for the risk management process, we begin with risk
where we calculate risk exposure and other risk characteristics such as

tolerance, priority etc. After that, the risk resolution strategies and risk
response plan is prepared.
Keywords
Risk:
organisation.
Impact: Impact is the extent to which the risk can affect the project.
Known-Known Risks: In this, we know the types of risk as well as the
impact of the risk.
Known-Unknown Risks: In this, we know only a little part of such an
event based on our prior knowledge.
Unknown-Unknown Risks: In this, we are completely unaware of
anything that can happen.
risk events and symptoms of risk.

SWOT analysis: This tool is generally used to analyse the Strengths,
Weaknesses, Opportunities and Threats of a particular risk.
Risk Resolution: This plan is called as ‘risk response plan’ or ‘risk
Managing Risks 227

Notes
eliminate risks in a project.
---------------------- Risk response planning: in this process, a response or strategy is
---------------------- developed for each item in the risk prioritisation list.

----------------------
1. Discuss the importance of risk management in software development.
---------------------- 2. Describe the difference between known-known and known-unknown
risks.
----------------------
3. Explain different types of project risks.
----------------------
4. What are the risk management models? Explain each one of them in brief.
---------------------- 5. Write short notes.
---------------------- a. SWOT analysis
---------------------- b. Proactive risk
c. Risk resolution
----------------------
---------------------- Answers to Check your Progress

---------------------- 1. Which of the following is not the characteristic of risk?

iii. Frequency
----------------------
----------------------
---------------------- 1. External risks are usually beyond our control.

1. False
----------------------
----------------------
---------------------- 1. Which of the following are the potential software project risks?
---------------------- i. Project risk
---------------------- iii. Technical risk

v. Budget risk
----------------------
----------------------

1. Risk can be proactively managed with the help of:
i. Risk planning
ii. Risk assessment
v. Risk

Fill in the blanks.
1. Boehm’s risk model comprises of two main activities, namely risk
assessment and risk control.
1. Identify the processes of the SEI risk model.
i. Identify
ii. Analyse
v. Control

Fill in the blanks.
1. Delphi technique is used to build consensus of experts who participate
anonymously.
1. To check whether your organisation has a written policy statement is
required for which of the following risks?
ii. Process risk
1. For quantitative analysis and modelling, which of the following techniques
are used?
i. Sensitivity analysis
iii. Expected monetary value analysis
iv. Decision tree analysis
vi. Monte-Carlo analysis
Managing Risks 229

Notes
Suggested Reading
----------------------
1. Hughes, Bob & Mike Cotterell. Software Project Management. Tata
---------------------- McGraw Hill Publishing Company Limited.
2. Lewis, James. Project Planning, Scheduling and Control. Tata McGraw
----------------------
Hill Edition.
---------------------- 3. Pressman Roger. Software Engineering – A Practitioner’s Approach.
Singapore: McGraw Hill International.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

UNIT
10
Structure:
10.1 Introduction
10.2 Multiple Versions of Software
10.3 Traceability and Impact Analysis
10.4 Capability to build any Past Version
10.5 SCM Concepts
10.6 Role of Librarian and Automated Tools
Summary
Key Words
Suggested Reading
231
Notes
Objectives
----------------------
----------------------
Discuss the factors that guide the software developers to come up
---------------------- with several versions of a software product
---------------------- Explain the importance of traceability and impact analysis
----------------------
List the roles and responsibilities of librarian in SCM
---------------------- Elaborate on the SCM tools
----------------------
---------------------- 10.1 INTRODUCTION

----------------------
In the previous units, we have studied various technical aspects of software
---------------------- project development. In this unit, we will study some techno-managerial issues
related to version control. Software project undergoes a series of changes
---------------------- throughout the project development life cycle and while we incorporate these
changes, we create multiple versions of various documents such as software
----------------------
---------------------- builds are created in this process of change.

In order to manage this change, we require a robust system. In this unit, we will
----------------------
---------------------- its importance in the software development process.
----------------------
of SCM and that in turn, it boils down to the age-old concept of traceability.
---------------------- Towards this traceability, the software companies designate a person as a
librarian who keeps track of all the relevant details, obviously with an automated
---------------------- tool for the same.
----------------------
10.2 MULTIPLE VERSIONS OF SOFTWARE
----------------------
If you look at any software that has been reasonably stable in the market for a
---------------------- few years, you will quickly infer that it must have been a successful and popular
product, well received by the customers at large. Probably one might not be
----------------------
aware of the fact that there may be multiple versions of the same software
---------------------- product available with the same nucleus of functionality but with several
variations in the peripheral features. In some extreme cases, the version count
---------------------- may run into several dozens for one and the same software product. Let us try
to understand this scenario.
----------------------
There are two major reasons behind the multiple versions of a software product:
----------------------
----------------------

1. Increasing Customer Base Notes
As the software gets more and more popular among a growing clientele, there
are certain factors that fuel the need for multiple versions. These factors could
be quickly summed up as follows:
a. Functional / Scaling Flavours: Some jumbo software products come
b. Statutory Needs: Laws of nations / states do differ substantially and
signatures, our Indian law recognises MD-5 and SHA-1 only as hashing
solutions and others will not have a valid legal backing.
c. Work Culture: Due to large geographical differences, there are quite
a few distinct requirements to suit the work culture of every country or
region. As the lunar calendar is still followed in countries like Nepal,
software churning out date arithmetic like interest calculations based on
d. Based on the functional area, the requirements

might undergo some change making customisation a must. A pair of
scissors denoting the ‘cut’ operation in windows parlance has an altogether
‘surgery’.
e. Accounting Practices: A vast variety in accounting principles and
practices may give birth to multiple versions of software. Software may
have a version that is GAAP compliant on the international scenario.
f. Language Varieties: As the world is rapidly turning into be a global
village, the software products reaching out to far off places do offer
available in Tamil, for example.

g. Accessibility Options: Towards making operations easier for physically
provisions. For persons suffering from a hearing impairment, the software

would produce a visual signal on the monitor rather than simply give an
audio beep.
h. Operational Platforms: Some software products are offered with a
heterogeneous hardware and software platform to run on. Obviously,
there are different versions in such cases. Text processor software comes
in two versions: one for Windows and another for Macintosh.
i. Customer Needs: Lastly, for some customers, some peculiar needs are
almost inevitable and hence have to be incorporated in the software. A
bank having a unique deposit scheme may request its software solution
provider to customise it.
233
Notes 2. Progressing Time Line
Apart from the above-mentioned factors contributing to a plethora of versions,
----------------------
now we will look into one more aspect of advancing time line. As time passes
---------------------- by, there are newer and newer versions frequently rolled out by the developer,
due to the following reasons:
----------------------
a. Debugging: A software product without a single error or bug is a Utopian
---------------------- idea that does not exist in reality. Coming to the large software products,
there are quite a few bugs practically making it necessary that they are
----------------------
maintenance adds more versions to the software.
----------------------
b. Enhancements: Another reason behind the multi-versions is that with
---------------------- changing time, changing business environment forces more functionality
changes that have to be incorporated in the software on a regular basis.
----------------------
This adaptive maintenance also gives rise to the version count in a big
---------------------- way.
---------------------- Due to all these factors, there could be several versions for a single software
product. To control and manage this large number of versions for a software
---------------------- product, we need to have a system that is capable of handling this tedious task.
----------------------

----------------------
---------------------- 1. Identify which of the following are some of factors that fuel the need
for multiple versions among a growing customer base.
----------------------
i. Functional / Scaling Flavours
----------------------
---------------------- iii. Enhancements

---------------------- iv. Language Varieties
---------------------- v. Debugging
----------------------
Activity 1
----------------------
----------------------
are available for any software of your choice.
----------------------
----------------------
10.3 TRACEABILITY AND IMPACT ANALYSIS
----------------------
---------------------- understand another important aspect related to traceability.

Look at a very generic example of a vehicle when it starts giving some problem Notes
and you need to take it to a garage. As a user of the vehicle, all you do is
just describe the symptoms of the malfunctioning as perceived by you. Before
is wrong in the fuel injection system. Next, he may conduct some tests and
ultimately zero in to say that the carburetor is the real culprit. Then he may
dismantle the various gantries to reach out to that part, isolate it and test it
to decide whether rework is good enough or a complete part replacement is
essential.
This process – described in management parlance as isolating the troubling
element in the system – runs parallel to the debugging procedure in software
maintenance.
Obviously, like a mechanic possesses the competence to logically (and
physically, too) dismantle the automobile to get through to the faulty part, the
software engineer too needs the capability to logically (though not physically)
decompose the complete software with a guiding light of the symptoms of the
bug. This decomposition is a gradual and iterative process that turn by turn
code in the program.
survive in this competitive world any longer than an auto-mechanic lacking the
Such traceability starts out with the end product of the software, as rolled out
to customers and then gradually tracks back through the various SDLC phases
of programming, designing, analysis and user requirements until the defect is
neatly located. Again, it will be worth noting that this process is to be followed
not only for debugging or corrective maintenance, but also for enhancements or
adaptive maintenance. This point may look odd, but it would be clear once we
see the proposed enhancement in the functionality as an error in the software,
as if it was the left out point while developing the earlier version. With that
standpoint, it will be instantaneously appreciated that whether you want to
remove a bug or to insert a new functionality, the traceability is the common
starting point.
Another important aspect is related to impact analysis. It is interesting to note
that merely identifying the exact problem area is just a starting point. You may
the fact is that there is one more laborious job called ‘Impact Analysis’ to be
done before actually patching up the program.
During impact analysis, the software developers go ahead to systematically
235
Notes 1. Software Items
These cover the various work products of software, which are:
----------------------
1.
----------------------
2.
---------------------- diagrams etc
---------------------- 3. Table design & ERDs

4.
----------------------
5. Input & Output Formats
----------------------
2. Allied Items
---------------------- These include the related items such as:
---------------------- 1. Complete Documentation
---------------------- 2. User / Operations Manuals

3. Training Material, if any
----------------------
4. Project Implications on Time & Cost
----------------------
All the above points are minutely studied, not just to enlist those getting
----------------------
that each artifact needs to undergo to ensure a holistic and coherent working in
---------------------- the functionality of the software as a whole.
----------------------
----------------------

1. During _______________, the software developers go ahead to
---------------------- systematically enlist all the possible artifacts of the software that
----------------------
----------------------
Activity 2
----------------------
---------------------- While developing the software, the requirements were missed and the
software application was given for testing to the test engineers. The testers
---------------------- found that in the software built, some requirements are missing. How will
----------------------
----------------------
10.4 CAPABILITY TO BUILD ANY PAST VERSION
----------------------
Software developers need to exhibit the capability to build any of the past
---------------------- versions of their software product. This is quite crucial for their own credibility
and their organisation’s reputation for the following reasons:
----------------------

1) Customer Request Notes
It may be possible that a customer needs a relatively older version for reasons
like platform compatibility, ease and convenience of use, need for processing
the older data records and so on. To maintain their customer’s satisfaction, the
organisation may need to build one of the previous versions, which is no longer
much used.
2) Litigation
As the software is utilised for some commercial application, there are high
stakes and a heavy reliance on the software product. At times, the customer and
not ruled out. For such exigencies, the software developer needs to demonstrate
a competence to build up that disputed version so that its functionality could be
assessed.

1. Software developers need to exhibit the capability to build any of the
past versions of their software product.
Activity 3
Find out if there are any software used in your organisation, which are
built upon some older version.
10.5 SCM CONCEPTS

The rationale behind the capability to build any past version is now clear, but
a question that may arise in your mind is, “Why is there so much ado about
it?” The reason is simple. It is a Herculean task to maintain a neat track of past
versions of software, particularly its components and their respective version
numbers, as explained in this section. Complexities in real life are much more
than what they appear to be in theoretical discussions.
Let us consider this example to help you further grasp the exact scope and
complexity involved in handling multiple versions of software. Let us think of a
banking software product that helps banks to maintain their customer database
comprising all types of accounts and to put through a variety of transactions
across all branches of that bank.
As we know by this time, there would be many versions of this software. Now
if we try to build up a matrix having version numbers to be put in columns and
components in the rows, it may look somewhat like the two-dimensional Table
10.1, where all the cells show a version number of the respective component
237
Notes
header).
----------------------
Table 10.1: Versions of Software
---------------------- Software Product Version 1 Version 2 …. Version N
---------------------- 1. DFDs / UML diagrams
2. ERDs
----------------------
3. Flow Charts
---------------------- 4. Tables/ Files
----------------------
6. Input Formats
---------------------- 7. Output Format
---------------------- 8. Process Spec’s
…..
---------------------- …..
---------------------- Each of the items in the rows – DFD’s / UML diagrams, ERD’s, Table/ File
----------------------
of them gets expanded into several rows, few dozens of tables and scores of
---------------------- report layouts and so on. Thus, the actual size of such a table would easily run
into several hundred rows (one each for a component going in to the software)
----------------------
software).
----------------------
The software developers, right from the beginning, neatly and meticulously
---------------------- manage this complete table. Initially, all the components (and the deliverable
end product, too) will bear the version number 1. Later on, as and when a new
----------------------
component in the software is added, a line would be added for the same and
---------------------- cells of that row on past columns will be marked as ‘Not applicable’ indicating
that the particular component was not on the scene for the earlier versions of
---------------------- the software.
---------------------- Likewise, whenever a new version of software is getting ready, a new column
would be added to the table with the column header bearing the new version
---------------------- number for that software product. All the values in the immediately preceding
---------------------- column would be copied onto this new column and the version number of only
those components (in this newly added column) would be incremented, where
----------------------
would retain their individual version numbers as per the preceding column.
----------------------
All these botherations are to be scrupulously tackled as the version numbers of
---------------------- the end product and components do not advance uniformly. On advancement of
any version of the software product, only those components that have undergone
---------------------- some change will simultaneously increment their respective version numbers,
---------------------- while the other components, which have not been altered, will carry their earlier
version number as in the past.
----------------------

This is the crux of the SCM and obviously, the software development Notes
organisation needs to plan the SCM process, devote certain resources to it and
regularly monitor this critical factor.
and physical attributes of software at various points in time during the software
attributes for maintaining software integrity and traceability throughout the

software development life cycle.
planned enhancements that are supposed to be included in the software.

For the software project to ensure that a sound SCM process is implemented, it
follows the following steps. These are:
It is the process of identifying the attributes
product (hardware and/or software) that has an end-user purpose. These
change control processes to be effected in the event that these attributes

are changed.
It is a set of processes and approval stages
SCIs, baselines and software releases throughout the software life cycle.
coordination, approval or disapproval and implementation of changes
management, consisting of the ability to record and report on the
moment of time.
239
Notes item is installed in accordance with the requirements of its detailed design
documentation.
----------------------
----------------------

----------------------
accounting?
----------------------
---------------------- item
---------------------- ii. Set of processes and approval stages required to change a
----------------------
iii. Occur either at delivery or at the moment of effecting the change
----------------------
----------------------
----------------------
Activity 4
----------------------
---------------------- Prepare a table similar to Table 10.1 to track the changes made to your
documents.
----------------------
---------------------- 10.6 ROLE OF LIBRARIAN AND AUTOMATED TOOLS

---------------------- In the modern world with large software projects, the specialised task of SCM
---------------------- has to be assigned to a skilled expert often called the ‘Librarian’. He is the
person who has authority over custody of all the software components that are
----------------------
to build any of the past versions of the software products. A quick look at the
---------------------- librarian’s task list runs thus:
---------------------- 1. Custody of all software artifacts
---------------------- The librarian has complete possession of all the intermediate software products
(often referred to as work products) like:
----------------------
a. Source code for all the software products
---------------------- b. Test Suit consisting of various test transactions
---------------------- c. Design items like:
---------------------- i. Tables/ File Layouts & ERD’s

ii.
----------------------
iii. Input & output layouts
----------------------
iv.
d. Document related to Analysis done for user requirements Notes
e. Requirements collected from and signed off by users
At any point in time, the librarian must have a full access and control over all
these artifacts across all versions of all software products. These articles in his
2.
Each member of the software development team is expected to work on some
software component and accordingly borrows that item from the librarian and
returns it once the work is completed. Thus, a programmer may get design
to modify it) and the latest version of the program (with write access as he is
expected to modify the program to take it to the next version). A designer may
3. Tracking the Lent out Items

The librarian has to maintain a complete inventory assigned to him for each
software product. He also keeps a track of all the items lent out to various
colleagues. This tracking includes:
a. Work product item along with ID, Name and Version No.
b. Name of the borrowing member
c. Purpose of Lending – Read, Review, Rework, Enhance
d. Issue mode Read / Modify mode
e. Date of Issue
f. Expected Date of Return
g. Actual Date of Return
h.
4.
From the earlier discussions, it would now be clear to you that the librarian needs
product. This is essential to avoid cases where two members simultaneously

handle an item disturbing the dependencies. Consider a scenario where a
5. Building up a version of the software product
software product as per the directions of the concerned project head. Obviously,
at this point, there are no lent out items for that software product, as that may
lead to internal inconsistencies in the software. Once software ‘build’ takes
to any components would relate to the next version, not the frozen one.
241
Notes 6.
It is also one of the duties of the librarian to provide a current position of
----------------------
various library items to the concerned project heads to enable him to review and
---------------------- monitor the progress of the project and take any necessary actions of modifying
---------------------- necessary.
---------------------- From all these discussions and also in view of the tremendous expanse of the
various software products and their many work products, the librarian’s job
---------------------- cannot be performed without automated tools at his disposal.
----------------------
---------------------- SCM Tools are the tools and utilities used in administering the source code,
building software, install packaging, defect tracking, change management and
----------------------
---------------------- Some SCM tools are available in the market. One of such tools is the Rational
ClearCase’s SCM Tools for revision control. It is developed by the Rational
---------------------- Software division of IBM. ClearCase forms the base of version control for
many large and medium sized businesses and can handle projects with hundreds
---------------------- or thousands of developers. Besides this, there are tools such as Concurrent
---------------------- Version System (CVS), Subversion (SVN), PVSC, MKS Integrity etc.
Such software utility tools prove helpful for the following tasks:
----------------------
1. Maintenance of list of all the software development team members
----------------------
2. Record keeping of all the software artifacts in soft copy form
---------------------- 3. Maintaining actual copies of each software artifact across all versions
---------------------- 4. Tracking the inter-dependencies of software artifacts
---------------------- 5. Validating the issue of software artifact for consistency / dependency

6. Recording the issues with details of members, artifact and work mode
----------------------
7. Recording returns of such software artifacts from members
----------------------
8. Providing a status report (date-wise, version-wise, member-wise etc.)
---------------------- 9. Assembling the desired components for software build
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes

1. Which of the following are the roles of the librarian?
i. Custody of all software artifacts
iii. Tracking the Lent out Items

iv. Making revision to the documents
v. Building up a version of the software product
1. Software utility tools help in keeping of all the software artifacts in
hard copy form.
Activity 5
2. Find out various open source SCM tools.
Summary
An abundance of versions is very common for noted software products
due to several reasons which makes it essential to have multiple versions
of the same software.
Owing to customer requests for supply or the court directives in case of
contingency of any litigation, version control is a critical issue for any
software developer who has to be able to build any version of the software
products he offers. The software development team must meticulously
maintain a systematic and elaborate record of all the intermediate products
across all the versions.
The steps in the
audits.
Version control is possible with a dedicated expert called librarian, who
should be provided with the necessary software tools for automation of
the task. The task of the librarian can be made easier with the help of
SCM tools.
243
Notes SCM Tools are the tools and utilities that are for change management and
----------------------
---------------------- Keywords
---------------------- Impact analysis: In this, the software developers systematically enlist
----------------------
---------------------- It provides the best

solution for handling changes in software projects.
---------------------- It is the process of identifying the attributes
----------------------
---------------------- and controlling changes to the SCIs, baselines and software releases
---------------------- throughout the software life cycle.
It consist of the ability to record and
----------------------
---------------------- item at any moment of time.
----------------------
---------------------- Librarian: The person who has authority over custody of all the software
---------------------- and has an accountability to build any of the past versions of the software
products.
----------------------
Used in administering the
---------------------- source code, building software, install packaging, defect tracking, change
----------------------

---------------------- 1. State and explain the steps used in the implementation of SCM.
---------------------- 2. Discuss in detail the role of librarian in SCM.
---------------------- 3.
with the help of automated tools?
----------------------
4.
---------------------- a. Traceability
---------------------- b. Impact Analysis
----------------------
----------------------
----------------------

Answers to Check your Progress Notes
1. Identify which of the following are some of factors that fuel the need for
multiple versions among a growing customer base.
i. Functional / Scaling Flavours
iv. Language Varieties

Fill in the blanks.
1. During impact analysis, the software developers go ahead to systematically

1. True


1. Which of the following are the roles of the librarian?
i. Custody of all software artifacts
iii. Tracking the Lent out Items

v. Building up a version of the software product
245
Notes State True or False.
1. False
----------------------

---------------------- 1. Pressman Roger. Software Engineering – A Practitioner’s Approach.
---------------------- Singapore: McGraw Hill International.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Update yourself: Current Trends
UNIT
11
Structure:
11.1 Introduction
11.2 Global Nature of Software Projects with respect to India
11.3 Tools used in managing Global Projects
11.4 Challenges in managing Global Projects
11.5 Challenges due to New Software Development Models
Summary
Update yourself: Current Trends 247

Notes
Objectives
----------------------
----------------------
Explain the current trends, issues in managing software projects.
---------------------- Describe the dynamics of managing global software projects.
---------------------- Apply the new techniques used in project management.
----------------------
---------------------- 11.1 INTRODUCTION
---------------------- So far we have understood what software projects are and what processes are
used for managing them. This gives the insider view of project management.
---------------------- But project management cannot be misunderstood as a static process. It also
----------------------
in the external world.
---------------------- Earlier software projects consisted of software development which required
design and coding as the main activities. Soon the clients started demanding
----------------------
testing and analysis also from the development team. So consultancies as well
---------------------- as software development companies started supporting entire SDLC and all the
activities came under software project management umbrella. Recently software
----------------------
the maintenance/governance.
----------------------
It is a common scene now-a-days that a software project may need contribution
---------------------- from people across the globe. The embedded software may be developed in
----------------------
Texas and application software in India. Because of this, the way the software
----------------------
going to discuss processes and its impact on software project management.
----------------------
---------------------- 11.2 GLOBAL NATURE OF SOFTWARE PROJECTS WITH

RESPECT TO INDIA
----------------------
The information technology revolution in the developed world had begun
---------------------- to take root and shortage of skilled programmers and IT professionals were
---------------------- beginning to develop. By this time, a number of Indians were working in very
---------------------- although as yet undocumented role, in bridging the gap and matching the buyers
in the overseas with the suppliers in India. Responding quickly to the growing
----------------------
---------------------- practice, the State encouraged this growth by considerably simplifying the
---------------------- organized sector in India typically needs. Finally, given the many weaknesses in
----------------------

From very humble beginnings, the Indian IT Industry has grown at an Notes
exponential rate over the past 10 years doing Rs. 10,000 crore of export, fetching
for India valuable foreign exchange, propping up the Indian Stock Market with
its share prices reaching dizzying heights before the scam, and employing
over 2 lakh professionals with this number poised to rise to around 20 lakh in
another 3 years. India missed the Agrarian, Industrial and the early Computer
Revolutions but became a global player in the IT revolution because of two
main factors - opening up of the markets and India’s cheap and vast manpower
with knowledge of English. Right from 1991 to 2000, Indian companies grew at
a mind-boggling rate of 200-500% attracting lucrative projects from companies
all over the world, especially the US.
The global digital transformation market size is expected to rise at a CAGR
of 18.56 per cent from US$ 1.2 trillion in 2017 to US$ 2 trillion in 2020. India’s
IT industry is increasingly focusing on digital opportunities as digital is poised
to be a major segment in the next few years. It is also currently the fastest
growing segment, growing over 30 per cent annually.
Fig. 11.1: Market Size of IT Industry in India

As a natural consequence of the growth in software development and in
software development projects. These are projects that disperse software

development processes across national boundaries.
The driving force behind the globalization of software projects is largely
economic. Global dispersal of activities can take advantage of the cost savings
and software personnel spread around the globe. All this has been enabled by
the global diffusion of information and communication technologies (ICTs).
country projects.

Notes The Indian labour is not only cheap but is technically skilled too to the world
class level. It is due to the Indian Education System that includes in its course
---------------------- curriculum the practical knowledge of the latest technology that is developed in
the world along with the fluency in English Language that imparts compatibility
---------------------- in an Indian technician to communicate and work throughout the world.
---------------------- Further, the geographical location of India serves it the advantage of being
exactly halfway round the world from the US west coast, which is another reason
----------------------
why India is a preferred destination of many big brands. Also, the presence of
---------------------- a large number of Indians, especially engineers, in the US gave India an easy
entry into the US software market.
----------------------
---------------------- Activity 1
---------------------- 1. State the advantages of software projects going global.

---------------------- 2. What are the drivers for global software projects?
----------------------
---------------------- 11.3 TOOLS USED IN MANAGING GLOBAL PROJECTS
---------------------- As the project infrastructure and team is distributed across the globe,
it becomes more challenging to manage such projects successfully. The
---------------------- tools used in project management in such situations should be standardized,
----------------------
1. Communication tools
----------------------
E-mail, teleconferencing, video conferencing are some of the tools used
---------------------- now-a-days for facilitating the communication among the global teams.
A frequency - may be once a week – is used for such a communication.
---------------------- There are messengers and tools like SKYPE which are used for text,
audio as well as video conferencing simultaneously.
----------------------
2. Project management tools
----------------------
Generally, in a typical global software project, the core technical team will
---------------------- be responsible for assigning high-level tasks to team leads, and team leads
create and assign individual tasks to their team members. Organizations
---------------------- must have tools to create, assign and manage tasks to the global team leads
---------------------- and to individual developers. Often, when requirement, responsibilities,
and priorities need changes in a project, the core team responsible for
---------------------- managing the project must have capabilities to reassign and move the
tasks among the team members to achieve the project milestones. At any
---------------------- given time, it should be possible for the project management to get the
---------------------- real-time status of the project’s progress.
3. Documentation tools
----------------------
The distributed documentation servers are employed for maintaining all
---------------------- documentation related to the project in a common repository which is

accessible to the entire team situated anywhere in the globe. The content Notes
management systems and knowledge management portals even help
in this aspect to provide a convenient support. Some such systems are
developed by software companies for their internal use.
4. Development tools
Developers working in global teams often communicate with each other
to perform tasks like share source code snippet, conduct code review,
perform test cases, design diagrams, share exception stack traces, etc,
Organizations must have tools to support this feature to achieve the full
should be appropriately selected to suit the project environment.
Activity 2
scenario.
2. List the various development tools used in global software projects.
communication tools in managing global software projects.
11.4 CHALLENGES IN MANAGING GLOBAL PROJECTS

There are numerous challenges in managing global projects ranging from
infrastructure to people management. Let us consider each one of them on the
following parameters.
1. Distributed working environment
Inconsistent software development environment is a big issue in global
software development, here environment includes IDE, source code
repository, database tools, application server, build and deploy tools,
testing tools, etc. Every developer working in the global team must have
same version and release of software environment. The plug-in used by
one developer may not be usable by other developers or it may be of
different version. Often times, these plug-in create “marker code” when
checked into the source code control and if retrieved by other developers
may corrupt their IDEs. Individual software team members dealing with
thereby increase the overall project budget.

Generally, in a typical global software project, the core technical team will
be responsible for assigning high-level tasks to team leads, and team leads
create and assign individual tasks to their team members. Organizations
must have tools to create, assign and manage tasks to the global team

Notes leads and to individual developers. Often, requirement, responsibilities,
---------------------- the project must have capabilities to reassign and move the tasks among
the team members to achieve the project milestones. At any given time, it
---------------------- should be possible for the project management to get the real-time status
---------------------- of the project’s progress.
2. Time differences
----------------------
Time difference is one of the factors in offshore software development
---------------------- projects which can become a pro or a con depending on how it is managed.
It is imperative that a “common” time zone is mutually agreed on by you
----------------------
and the offshore vendor. This time should be used for communication
---------------------- and ironing out issues faced by the development team. Though it might
---------------------- good dividends in the long run. While working on different time zones,
it becomes really important for offshore team to understand time zone
----------------------
differences and plan the activities accordingly. In most of the cases it had
---------------------- been seen that the onsite team expects at least 2-3 hour time zone lap so
that both onsite and offshore team can participate in the meeting.
----------------------
3. Language barriers
----------------------
---------------------- and people are comfortable using it, the same is not true when it comes
to eastern countries. Still various languages are used by them and even
---------------------- a translator has limitations in making you comfortable to communicate
with them. The potential for business exists in such countries. They also
---------------------- have skilled people to support the operations but in such a case to connect
---------------------- to the people in that country, language might prove as a barrier.
To overcome this problem, there are two way efforts required. There is an
---------------------- initiative seen in the non-English speaking countries for awareness and
----------------------
classes in India.
---------------------- 4. Cultural differences
---------------------- If your project team is spread all over the globe, you will sometimes scare
yourself with the amount of prejudice you have when dealing with people
----------------------
from different cultures. Humans have a tendency to categorize everything,
---------------------- including people. Different cultures result in different behaviours of
people. But before you try to draw conclusions about an entire continent,
---------------------- why not just start with the individual project team member instead. There
are following assumptions which I present here as representative once:
----------------------
i) Future - present - past orientation
----------------------
For some cultures history will determine the future, so the past is
---------------------- very important. Others, mainly South-American cultures, believe
the past cannot be changed, the future cannot be predicted, and
----------------------

cultures who believe that with hard planning, proper preparation Notes
and thorough analysis, the future can be captured.
ii) Time-plentiful versus time-is-money
There is a huge difference in life if you believe that time is an
and over again. Time is plentiful. Tomorrow the same amount of

time is left as today. If you put this world view in contrast with
the idea that time is passing and will never come back, you might
see how the concept of deadlines can be confusing between some
cultures.
iii) Respect for the man
In the Netherlands there is a problem with authority. People like to
see their bosses as equals, and tend to treat them as such. Respect is
something that should be earned, and hierarchy and upbringing has
nothing to do with that. And even with respect, that doesn’t mean I
have to treat someone differently. That is atleast the opinion of the
majority of the Dutch people.
In other parts of our planet, upbringing and hierarchy have a lot to
do with getting respect. And disagreement with a respected person
is unthinkable. This is the widely known yes from Indian people
(yes, I know, the whole continent) that is misunderstood by their
western colleagues.
iv) Me versus us
There is a world of difference if you behave from the idea that you
operate as an individual or that you operate as a small part of a
collective.
v) Spelling everything out versus its only natural
Even I learn something everyday. It is normal that everything
is expressed in detail, information is explicitly provided, and
everything is spelled out for you. And then there are the countries
where they assume that you have some shared knowledge, some
intelligence and a mind of your own. For this latter culture, it is
almost insulting to get everything spelled out like that.
vi) Doing everything at once or one thing after the other
There is an old discussion that women are better in multi-tasking
than men. This is about the fact that some cultures doing more
than one thing at a time is just normal. So if you are talking with
someone and he is taking phone calls also at the same time, it might
be insulting in one culture, but it can also be just plain normal
behaviour in another.
With respect to the above points, it becomes necessary to consider
these things while dealing with distributed project teams. Sometimes

Notes
before sending them onto foreign assignments. There are several
---------------------- trainings available in the market for understanding and acquiring
etiquettes and manners in different parts of the globe.
----------------------
5. Acceptance to Indian teams
----------------------
It is quite evident from the above discussion that if you are interacting or
---------------------- working with someone from a different culture, obviously you will trust
---------------------- him/her. The same is true for teams. Because of the preconceived notions,
people do not accept the teams, their ideas, and their working style. One
----------------------
work around for this problem is to standardize the processes followed on
---------------------- work and obey some international standards for project management such
as PMI or PRINCE2.
----------------------
6. Legal aspects
----------------------
---------------------- It is mandatory for them to abide by the policies of that country in which
they are operating. There are issues due to different currency rates,
---------------------- different licensing rules for same software in different countries. Different
countries have different compliances which need to be complied with.
----------------------
---------------------- Activity 3
----------------------
1. List down the challenges in managing global software projects.
----------------------
in global environment?
----------------------
3. List the ways to overcome the language barriers.
----------------------
----------------------
11.5 CHALLENGES DUE TO NEW SOFTWARE
---------------------- DEVELOPMENT MODELS
---------------------- As we know, project management is the overall umbrella of processes to
---------------------- manage the software development and engineering, the two are interlinked.
By now, you must have learnt software development models and especially
----------------------
to see what differences have these process models made to the way projects
---------------------- are handled. Mainly the above mentioned two software development models
---------------------- demand a different approach to managing the projects.
----------------------
----------------------
This is a process model designed and marketed by IBM Rational.
---------------------- According to IBM, it is a comprehensive process framework that provides

industry-tested practices for software and systems delivery and implementation Notes
and for effective project management. It is iterative development model.
It has 4 phases, namely, Inception, Elaboration, Construction and
Transition. Each succeeding phase builds on the work accomplished in the
previous phase and develops the program into a usable product that is likely to
attract the attention of end users.
the software is intended to accomplish that is not being done by other programs
on the market.
The second stage is known as the elaboration phase. Here the Rational
phase be scrutinized and broken down into the essential building blocks needed
aspect of the program is analyzed thoroughly and the relationship between
After completion of the elaboration phase, the construction phase of
during this phase.
phase. This is simply the point at which the programmer’s work is essentially
done and the software is made available to end users.

Notes
1. It enhances team collaboration
----------------------
IBM has several other tools for increased collaboration among the team
---------------------- such as Rational Team Unifying Platform which integrates with RUP to
provide the best possible team performance. You can easily determine if
----------------------
a RUP team is on track or not, and redirect them if required.
---------------------- 2. Addresses project risk with iterative processes
---------------------- Working incrementally allows higher risks to be addressed early. If there
is a question about whether or not a requirement can be met or a technical
---------------------- challenge can be overcome, it can be addressed in an early iteration. If
---------------------- it cannot be implemented or can be implemented but in a manner which
does not meet the stakeholders’ needs, the project can be refocused or
---------------------- cancelled outright.
---------------------- 3. Improved governance

As you can monitor the performance of the team and because of the
----------------------
---------------------- managed easily.

4. Implement the actual requirements
----------------------
By developing systems in smaller iterations, you can react to any
---------------------- changes and thereby build software which meets the actual needs of your
stakeholders instead of their perceived needs which were documented
----------------------
months or years earlier. Changes in requirements that impact later
---------------------- iterations do not impact the work being done on the current iteration. In
addition, changes to requirements within the current iterations are easier
---------------------- to deal with because the scope of requirements in each iteration is smaller.
Changes to previous iterations are simply scheduled as new requirements
----------------------
in future iterations.
----------------------
in software engineering that lists six ideas to follow when designing any
----------------------
software project to minimize faults and increase productivity. These
---------------------- practices are:
---------------------- Develop iteratively:

however, often this is not the case. Several software development
---------------------- processes exist that deal with providing solution on how to minimize
cost in terms of development phases.
----------------------
Manage requirements: Always keep in mind the requirements set
---------------------- by users.
Use components: Breaking down an advanced project is not
----------------------
only suggested but in fact unavoidable. This promotes ability to
---------------------- test individual components before they are integrated into a larger
system. Also, code reuse is a big plus and can be accomplished
---------------------- more easily through the use of object-oriented programming.

Model visually: Use diagrams to represent all major components, Notes
Language, is one tool that can be used to make this task more
feasible.
Verify quality: Always make testing a major part of the project at
any point of time. Testing becomes heavier as the project progresses
but should be a constant factor in any software product creation.
Control changes: Many projects are created by many teams,
sometimes in various locations, different platforms may be used,
etc. As a result, it is essential to make sure that changes made to a
2. Agile Software Development

The very meaning of the term agile is lively, alert, and responsive. In a
way, this methodology tries to be an alert and responsive methodology
of project management. In 2001, this term was coined when the agile
manifesto was formulated. This method is based on iterative development
and self-organizing team work. Agile project management takes the ideas
from Agile software development and applies them to project management.
Agile methodologies generally promote a project management process
that encourages stakeholder involvement, feedback, objective metrics
and effective controls.
Following methods are popularly used in Agile practices:
1. Extreme Programming (XP)
It is intended to improve software quality and responsiveness to
changing customer requirements. It advocates frequent releases in short
development cycles, which is intended to improve productivity and
introduce checkpoints where new customer requirements can be adopted.
Extreme Programming has been described as having 12 practices, grouped
into four areas:
a. Fine scale feedback by the means of pair programming, planning game,
test-driven development, whole team
b. Continuous process which is exercised by continuous integration,
refactoring or design improvement and small releases
c. Shared understanding for coding standards, collective code ownership,
simple design, system metaphor
d. Programmer welfare i.e. sustainable pace

Notes The concept is that programmers or software developers should not work
more than 40 hour weeks, and if there is overtime one week, that the next
---------------------- week should not include more overtime.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
---------------------- Fig. 11.3: Processes in extreme programming
----------------------
of traditional software engineering practices are taken to “extreme” levels.
---------------------- 2. Feature Driven Development (FDD)
---------------------- FDD blends a number of industry-recognized best practices into a
cohesive whole. Its main purpose is to deliver tangible, working software
----------------------
repeatedly in a timely manner.
---------------------- A feature is a client-valued functionality. The process model is based on
the features at its centre. The best features used in FDD are listed below:
----------------------
a. Domain Object Modelling: Domain Object Modelling consists of
---------------------- exploring and explaining the domain of the problem to be solved.
The resulting domain object model provides an overall framework
----------------------
in which to add features.
----------------------
----------------------
----------------------

b. Developing by Feature: Any function that is too complex to be Notes
implemented within two weeks is further decomposed into smaller
functions until each sub-problem is small enough to be called
a feature. This makes it easier to deliver correct functions and to
extend or modify the system.
c. Individual Class (Code) Ownership: Individual class ownership
means that distinct pieces or grouping of code are assigned to a single
owner. The owner is responsible for the consistency, performance,
and conceptual integrity of the class.
d. Feature Teams: A feature team is a small, dynamically formed team
that develops a small activity. By doing so, multiple minds are
always applied to each design decision and also multiple design
options are always evaluated before one is chosen.
e. Inspections: Inspections are carried out to ensure good quality
design and code, primarily by detection of defects.
identifying the source code for all features that have been completed
to date and to maintain a history of changes to classes as feature
teams enhance them.
g. Regular Builds: Regular builds ensure there is always an up to date
system that can be demonstrated to the client and helps highlighting
integration errors of source code for the features early.
h. Visibility of progress and results: By frequent, appropriate, and
accurate progress reporting at all levels inside and outside the
project, based on completed work, managers are helped at steering
a project correctly.

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
---------------------- Fig. 11.4: Process model of feature driven development
---------------------- 3. Dynamic System Development Method (DSDM)

Its goal is to deliver software systems on time and on budget while
---------------------- adjusting for changing requirements along the development process.
---------------------- DSDM is one of a number of Agile methods for developing software, and
it forms a part of the Agile Alliance.
---------------------- There are three phases in DSDM namely, the pre-project, the project
---------------------- life-cycle and the post-project phase. In turn, the project life-cycle has
four phases, the feasibility study, the business study, functional model
---------------------- iteration, design and builds iteration and implementation.

Notes
Fig. 11.5: The processes followed in DSDM

Follow
Factor 1: First there is the acceptance of DSDM by senior management
and other employees. This ensures that the different actors of the project
are motivated from the start and remain involved throughout the project.
Factor 2: The second factor follows directly from this and that is the
commitment of management to ensure end-user involvement. The
prototyping approach requires a strong and dedicated involvement by end
user to test and judge the functional prototypes.
Factor 3: Then there is the project team. This team has to be composed
of skilful members that form a stable union. An important issue is the
empowerment of the project team. This means that the team (or one or
more of its members) has to possess the power and possibility to make
important decisions regarding the project without having to write formal
proposals to higher management, which can be very time-consuming. In
order for the project team to be able to run a successful project, they
also need the right technology to conduct the project. This means a
development environment, project management tools, etc.
Factor 4: Finally DSDM also states that a supportive relationship between
customer and vendor is required. This goes for both projects that are
released internally within companies or by outside contractors. An aid in
ensuring a supporting relationship could be ISPL
4. Scrum
Scrum is a “process skeleton,” which contains sets of practices and
The “ScrumMaster”, who maintains the processes (typically in lieu
The “Team”, is a cross-functional group of about 7 people who do

the actual analysis, design, implementation, testing, etc.

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Fig. 11.6: Scrum
----------------------
A key principle of Scrum is its recognition that during a project the
---------------------- customers can change their minds about what they want and need (often
called requirements churn), and that unpredicted challenges cannot be
----------------------
easily addressed in a traditional predictive or planned manner. As such,
---------------------- Scrum adopts an empirical approach - accepting that the problem cannot
---------------------- ability to deliver quickly and respond to emerging requirements.

---------------------- There are several implementations of systems for managing the Scrum
process, which range from yellow stickers and whiteboards, to software
---------------------- packages. One of Scrum’s biggest advantages is that it is very easy to
learn and requires little effort to start using.
----------------------
5. Lean principles in software development
----------------------
Lean manufacturing originated in manufacturing industry in late 1940s and
---------------------- is practiced successfully by Toyota. As software industry started getting
mature, the need was felt to optimize the processes used in developing
---------------------- and managing software. As we know
----------------------
----------------------
reduce the cost of developing the software if we have to make maximum
----------------------
----------------------
principles are as follows:
----------------------
1. Eliminate waste
---------------------- In software development, waste can be in terms of extra features,
---------------------- requirements, extra steps, bugs not caught by testers, time wasted
waiting for decisions, handoffs/transformation.
----------------------
----------------------

2. Amplify learning Notes
Using short iteration cycles, mistakes can be detected at an early
stage which can add to learning. Short feedback sessions with the
customers, help in determine the current and future features.
3. Decide as late as possible
Project keeps on elaborating progressively so it is better to delay
the decisions till late. In meanwhile, customers also get a better
understanding of their own requirements. The costly rework can be
avoided by this practice.
4. Deliver as fast as possible
The sooner a feature is delivered without bugs, the sooner the
feedback is received for further enhancements or changes. With the
advent of new technologies, it is possible to deliver the features
fast. Everyday stand up meetings make it possible to review the
deliverables on a continuous basis speeding up the delivery.
5. Empower the team
Here the philosophy is to recognize the contribution made by each
employee and treat them as human beings and not just resources.
The practice of pair programming makes it possible to empower
the novice or less experienced employees to learn from their expert
counterparts.
6. Build integrity in
The customer needs to have an overall experience of the system –
this is the so called perceived integrity: how it is being advertised,
delivered, deployed, accessed, how intuitive its use is, price and
how well it solves problems.
7. See the whole
The larger the system, the more organizations that are involved in its
development and the more parts are developed by different teams,
between different vendors, in order to produce a system with

smoothly interacting components.
The principles are integrated in Agile project management practices
processes to follow lean principles.

Sr. No. Tool
1 Seeing waste
2 Value stream mapping
3 Feedback
4 Iterations

Notes 5 Synchronization
6 Set based development
----------------------
7 Options thinking
---------------------- 8 The last responsible moment
---------------------- 9 Making decisions
10 Pull systems
---------------------- 11 Queuing theory
---------------------- 12 Cost of delay
13 Self determination
----------------------
14 Motivation
---------------------- 15 Leadership
16 Expertise
----------------------
17 Perceived integrity
---------------------- 18 Conceptual integrity
---------------------- 19 Refactoring
20 Testing
---------------------- 21 Measurements
---------------------- 22 Contracts
---------------------- The advantages of lean software project management can be stated as:
---------------------- development process. This in turn speeds up the process of software

---------------------- development which reduces project time and cost. This is absolutely
vital in today’s environment. Anything which allows organizations
---------------------- to deliver more projects in the same timeframe is going to be
popular!
----------------------
---------------------- development team can deliver more functionality in a shorter period

of time, hence enabling more projects to be delivered. This will not
----------------------
---------------------- 3. Empowerment of the development team helps in developing the

decision making ability of the team members which in turn, creates
----------------------
---------------------- enough. Developers hate nothing more than being micro-managed

and having decisions forced upon them. This way they can determine
---------------------- how best to develop the functionality which will usually result in a
much better end product.
----------------------
Major trends for project management professionals to be aware of are
---------------------- discussed below:
---------------------- 1. The migration to the EPMO model
----------------------

all project, program, and portfolio activities with company-wide Notes
objectives. According to a 2017 Project Management Institute
report, companies that have an established strategic Enterprise
meet their original goals and business intentions, and 33% fewer
projects fail. From startups to SMBs, through to large organizations,
the need to align projects with the broader goals and visions will
continue to pick up speed to improve project performance. The
EPMO concept is typically associated with large organizations, but
in future, companies of all sizes and in all industries will choose
to adopt the EPMO model to be project management champions
instead of underperformers.
2. Adopt formal project management and tools
With an increase in affordable web-based project management
software and tools, startups will begin to use these solutions.
Even the smallest of companies can leverage comprehensive and
integrated solutions to meet their project needs as they grow. Formal
reducing waste in already scarce resources and ambiguity in the

linkage between projects and vision. In future, the adoption of
formal project management processes and tools will continue to
due to squandered resources, wasted time and missed objectives.

3. The increased use of analytics
Business intelligence and business analytics tools are a fast-
growing industry, and these tools are rapidly becoming recognized
as necessary instead of ‘nice to have’ tools. Project teams are
recognizing that these tools enable them to more accurately pinpoint
project trends, fast track the ability to identify potential risks,
and conduct complex scenario planning to improve project and
team performance. These tools provide companies with valuable
key performance indicator dash boarding that can be customized
based on user needs. More companies will leverage the powerful
capabilities of these tools to keep projects moving in the right
direction and gain insight to help improve the execution of future
projects.
4. Remote Teams
Remote project management is rapidly increasing in popularity,
both from an employer and employee perspective - especially with
millennials. By 2020, millennials will make up half the global labor
force, and by 2030, they’ll account for 75%. As millennials are
quickly becoming the largest component of the workforce in North
America, their interest in achieving a work-life balance is creating
pressure on employers to offer remote or partially-remote working

Notes
of hiring remote workers, including a higher degree of employee
---------------------- satisfaction, a reduction in sick time, and reduced administrative
---------------------- create a shift towards remote project teams that use technology to
---------------------- bridge communication and collaboration gaps.
5. Emotional Intelligence
----------------------
Self-awareness, self-regulation, empathy, motivation, and social
----------------------
----------------------
95% of HR managers and 99% of workers agree that strong
---------------------- emotional intelligence is an important factor when considering
hiring. Project managers with this attribute create environments
---------------------- where team cohesion is higher, and this increases the chances of
successful project outcomes. It is expected that, recruiters will look
----------------------
for applicants who exhibit emotional intelligence in addition to
---------------------- project management skill sets.
6. The internet of things
----------------------
Internet of things is going to be one of the greatest project
---------------------- management trends. It will affect every part of business and projects
---------------------- that are not internet related. IoT will drive next opportunities and
bring a notable effect in project management software and in the
---------------------- project management role itself. It will change the face of project
management by allowing team collaboration, increase in project
---------------------- timelines, enhanced security and will allow remote controlling of
---------------------- objects.
7. Kanban Boards
----------------------
Kanban Board is increasingly being integrated into more structured
----------------------
that are smaller and solve all your performance of poor project
---------------------- by adding more control mechanism. It can be used well for those
----------------------
to limit work in progress and avoid multitasking. The adaptation
---------------------- of Kanban project management will let project managers embrace
innovation to manage their projects. It offers managers a centralized
----------------------
---------------------- applied to every situation.
----------------------
Project managers face the challenges of resource constraints,
---------------------- especially human resource. To improve productivity, better use
of human resources is recommended. AI gives an opportunity to
----------------------
better deal with mundane rule-based tasks done by humans. So it
----------------------

human dependencies for these routine repetitive tasks. With the Notes
help of robots (or simply bots) repetitive, rule-based actions can
be automated. All the while engaging human resources in more
creative and innovative activities. Proper use of human power
combined with improved error-free processes are a by-product of
work. Project Management professionals are taking interest to

realize the full potential of AI. This trend will continue to explore
better opportunities for Project Management professionals.
As per the recent report published by PMI on PMP job growth (Project
management 2017 – 2027),
87.7 million PMP roles.”

Hence, there will be high demand for Project Management professionals
across the industries. The above-mentioned Project Management trends
are likely to continue in the future. They will even reach a level of high
maturity in all respective pointers. Future project managers will be
experience in managing projects with the hybrid method. The demand for
cyber-security will continue in years to come. Automation, AI, Machine
learning and wearable technologies will have better prospects in project
management, they have added support features and high accuracy.
Activity 4
1. List the seven principles used in lean philosophy.

2. List the tools used with reference to the principle “Empower the team”.
Summary
In this unit, we discussed what the current trends in managing software
projects are. Managing global software projects needs a special skill set
as well as special infrastructure. But with the invent of global projects, the
world has shrunk in its true sense and has become a global village. Now
the best offers can be made to the customers with the competent costs
market.
Also, we have seen that the new software development models are
designed in such a way that they support project management. So we can
conclude that the distinguishing line between software engineering and
project management is diminishing.
The software stream is also getting mature like manufacturing or civil
streams by following their respective best services.

Notes
----------------------
1. Why do you need different project management tools for managing global
---------------------- software projects?
---------------------- 2. Why time differences become a major challenge in software project

management?
----------------------
3. Narrate your own experience of managing a software project.
---------------------- 4. Find out the similarities and differences in Scrum and Extreme
---------------------- Programming.
5. Explain the history of software projects in India.
----------------------
6. Do you think the overall software project quality will improve because of
---------------------- global software projects? Justify your answer.
---------------------- 7. Find out companies which are practicing Agile software development
practices.
----------------------
8. Explain your understanding of Lean principles.
----------------------
9. Compare and contrast various Agile software development practices.
----------------------
---------------------- Process?
----------------------
table for lean principles in software development.
----------------------
12. Explain the DSDM method of Agile software development in your own
---------------------- words.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

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PROJECT MANAGEMENT (IT)

(FOR PRIVATE CIRCULATION ONLY)

COURSE DESIGN AND REVIEW COMMITTEE

Published by Symbiosis Centre for Distance Learning (SCDL), Pune

Copyright © 2022 Symbiosis Open Education Society

technology. He displays a blend of industrial, IT and educational experience.

Unit No. TITLE Page No.

1.10 Knowledge and Skills of a Project Manager

3.5 Work Breakdown Structure (WBS)

9.7.2 Risk Analysis

1.10 Knowledge and Skills of a Project Manager

Software Project Management Concepts 1

---------------------- Recognise essential skills of a project manager

---------------------- 1.1 INTRODUCTION

---------------------- and as per expectation of the customer.

2 Project Management (IT)

1.2 ECONOMIC IMPACT OF SOFTWARE PROJECT

Check your Progress 1

State True or False.

Software Project Management Concepts 3

---------------------- Technical Challenges: Every project is different and needs to be managed

---------------------- Another challenge is cost estimation .As Software is an intellectual commodity,

4 Project Management (IT)

needs of business such as knowledge management, business intelligence,

Check your Progress 2

Match the following.

1. What do you think are the technical challenges in software project

1.4 SOFTWARE PROJECT

Since a project is a planned undertaking, being planned assumes that to a large

Software Project Management Concepts 5

---------------------- A result such as an outcome or document (e.g. a research project that

---------------------- Windows is a product we purchase to run the computer system. In services,

6 Project Management (IT)

simultaneously or at different times and once the product is developed, that

are ongoing operations.

and running successfully, it is called a product.

Software project is a time bound undertaking, which delivers unique product

Software Project Management Concepts 7

---------------------- Scope creep means addition in requirements while progressive elaboration

8 Project Management (IT)

1.5 PROJECT MANAGEMENT

and expectations of the various stakeholders

Software Project Management Concepts 9

---------------------- 4. Quality: Quality management means producing the quality of all

---------------------- requirements, such as development and engineering services, hardware

---------------------- Check your Progress 3

---------------------- 2. Quality control has no role in software project management.

10 Project Management (IT)

2. List any 5 categories of software.

1.6 SOFTWARE PROJECT MANAGEMENT

processes, viz. software engineering process models such as waterfall, spiral,

project management methodologies are available, which provide a framework.

is a human-driven activity, more emphasis is placed on management of human

Software Project Management Concepts 11

12 Project Management (IT)

Multiple Choice Multiple Response

ii. Project management

1. Give examples of various resources used in a project development.

1.7 ORGANISATIONAL STRUCTURE