Lectures

Agile Project Management

1. History of Agile:
 Background: In the 1990s, frustration arose in the IT industry due to the
waterfall model.
 Issues: The waterfall model led to significant time gaps between business
requirements and software delivery, resulting in project cancellations.
 Need for Change: Business environments rapidly changed, but the final
product couldn't keep up.
 Agile Emergence: In February 2001, the Agile Manifesto was created by
17 software development practitioners in Utah, USA.
2. Understanding Agile:
 Definition: method of project management, used especially for software
development, that is characterized by the division of tasks into short
phases of work and frequent reassessment and adaptation of plans.
method of project management, used especially for software
development, that is characterized by the division of tasks into short
phases of work and frequent reassessment and adaptation of plans.
 Characteristics: Adaptive planning, evolutionary development, early
delivery, continuous improvement, and rapid response to change are core
principles.
 Values: Agile methodologies are guided by the values and principles
outlined in the Agile Manifesto.
 Individuals and interactions over Process and tools
 Responding to change over Following a plan
 Working software over Comprehensive documentation
 Customer collaboration over Contract negotiation
Agile Principles and Benefits:
 Principles: Prioritize customer satisfaction, welcome changing
requirements, deliver working software frequently, focus on collaboration,
adapt to changes, promote sustainable development, prioritize simplicity,
encourage self-organizing teams, and emphasize continuous
improvement.
 Benefits: Break down the product into manageable chunks, improve team
communication, ensure on-time delivery, establish trust between
customers and developers, and create a positive project culture.
3. Agile Methods:
 Examples: Scrum, Extreme Programming, Dynamic Systems
Development Methods (DSDM), Kanban, Lean software development, etc.
4. Scrum Framework:
 Overview: Scrum is an agile method consisting of three phases: planning,
sprint cycles, and project closure.
 Sprint Cycle: Sprint cycles involve fixed-length iterations (usually 2-4
weeks) where teams develop increments of the system.
 The starting point for planning is the product backlog, which is the list of
work to be done on the project.
 Roles: Product Owner: Define the features, decide on release date and
content, responsible for the profitability, prioritize features, Adjust features
and priority at every iteration, Accept or reject work.
 Scrum Master: Represents management, Responsible for enacting
Scrum values, removes impediments, Ensures functional team,
enables close cooperation
 Team: Cross Functional, Self-Organizing
 Ceremonies: Daily Scrum meeting, Sprint Review meeting, Sprint
Retrospective meeting.
 A Sprint Backlog is a list of User Stories that the team will aim to complete
during a sprint.
 A sprint burndown chart is a visual comparison of how much work has
been completed during a sprint and the total amount of work remaining.
 Characteristics: One of the “agile processes”, Self-organizing teams,
Product progresses in a series of month-long “sprints”, Requirements are
captured as items (user stories) in a list of “product backlog”, No specific
engineering practices prescribed.
 Benefits: Problem broken down in manageable chunks, Unstable req don’t
hold up progress, better communication, Customer sees delivery and
feedback, Better trust between cust and dev

Week 6 Risk Management

1. Importance of Risk Management:
 Definition: Project risk management involves identifying, analyzing, and
responding to risks throughout a project's life to meet objectives.
 Significance: Often overlooked, risk management can enhance project
success by aiding in project selection, scope determination, and realistic
estimation.
2. Understanding Risk:
  Negative Risk: Involves potential problems that could hinder project
success, leading to loss or injury.
 Positive Risk: Also known as opportunities, these risks result in favorable
outcomes. Risk management aims to minimize negative risks while
maximizing positive ones.
3. Project Risk Management Processes:
 Planning Risk Management: Developing a risk management plan that
outlines procedures for identifying, analyzing, and responding to risks.
 review project documents as well as corporate risk management
policies, risk categories, lessons-learned reports from past projects
 Topics: Methodology, Roles, Budget, Categories, Probability and
impact, Tolerances, Tracking and documentation
 Categories: Market, Financial, Technology, People,
Structure/Process
 Risk Breakdown Structure

 Identifying Risks: Understanding potential events that may affect the

project, using techniques like brainstorming, Delphi Technique,
interviewing, and SWOT analysis.
 Delphi: derive a consensus among a panel of experts who make
predictions about future developments. Independent and
anonymous, Rounds of questioning and written responses which
avoids biasing.
 Risk Register: A document that contains the results of various risk
management processes. A tool for documenting potential risk
events and related information
  Performing Qualitative Risk Analysis: Prioritizing risks based on their
probability and impact.
 Top Ten Risk Item Tracking: Tool for identifying risk.
 Performing Quantitative Risk Analysis: Numerically estimating the
effects of risks on project objectives.
 Main techniques: Decision tree analysis, Sensitivity analysis,
Simulation
 Decision Trees and Expected Monetary Value (EMV):
 Sensitivity Analysis: Sensitivity analysis is a technique used to show
the effects of changing one or more variables on an outcome. Eg:
Determining Break-Even Point
 Planning Risk Responses: Taking steps to enhance opportunities and
mitigate threats.
 For Negative: Risk avoidance, Risk acceptance, Risk transference,
Risk mitigation, Risk escalation
 For Positive: Risk exploitation, Risk sharing, Risk enhancement

 Implementing Risk Responses: Executing risk response plans.

 Monitoring Risk: Continuously monitoring identified and residual risks,
identifying new risks, and evaluating the effectiveness of risk strategies.
4. Risk Management Tools and Techniques:
 Brainstorming/Focus Group: Generating ideas or solutions for potential
risks.
 Delphi Technique: Deriving consensus among a panel of experts.
 Interviewing: Collecting information from individuals with project
experience.
 SWOT Analysis: Identifying strengths, weaknesses, opportunities, and
threats.
5. Risk Register:
 Definition: A document containing identified risks and related
information, serving as a tool for documenting potential risk events.
  Contents: Identification number, rank, name, description, category, root
cause, triggers, potential responses, risk owner, probability, impact, and
status.
6. Common Sources of Risk on IT Projects:
 Market risk, financial risk, technology risk, people risk, structure/process
risk, quality risk, human resource risk, communications risk, procurement
risk, and stakeholder risk.
7. Case Study – Denver Airport Baggage System Failure:
 Activity involving watching a video and discussing the main issues with
the case study to understand practical implications of project risk
management.
1. Performing Qualitative Risk Analysis:
 Objective: Assess the likelihood and impact of identified risks to
determine their magnitude and priority.
 Tools and Techniques: Probability/impact matrix, Top Ten Risk Item
Tracking, and expert judgment.
2. Probability/Impact Matrix:
 Lists the relative probability and impact of risks to determine their priority.
 Risks are categorized as high, medium, or low based on probability and
impact.
3. Top Ten Risk Item Tracking:
 Qualitative analysis tool for identifying and maintaining awareness of top
risks throughout the project.
 Includes periodic reviews of the top ten risk items, ranking, progress
summary, and potential resolution.
4. Performing Quantitative Risk Analysis:
 Often follows qualitative analysis, especially in large, complex projects.
 Main techniques include decision tree analysis, sensitivity analysis, and
simulation.
5. Decision Trees and Expected Monetary Value (EMV):
 Diagramming technique for selecting the best course of action in uncertain
situations.
 EMV is the product of risk event probability and monetary value, aiding
decision-making.
6. Sensitivity Analysis:
 Shows the effects of changing variables on outcomes, such as determining
break-even points.
  Often performed using spreadsheet software like Excel.
7. Planning Risk Responses:
 After identifying and quantifying risks, select response strategies:
 Risk avoidance, acceptance, transference, mitigation, or escalation
for negative risks.
 Risk exploitation, sharing, or enhancement for positive risks.
8. Implementing Risk Responses:
 Execution process involving implementing chosen risk response strategies.
 Outputs include change requests and updates to project management
documents.
9. Monitoring Risks:
 Ongoing process to ensure appropriate risk responses, track identified
risks, and evaluate effectiveness.
 Involves data analysis, audits, meetings, and the use of workarounds
when contingency plans are absent.

Resource Management
Processes (6) include:
1. Planning resource management:
2. Estimating activity resources
3. Acquiring resources
4. Developing the project team
5. Managing the project team
6. Controlling resources
1. Developing the Resource Plan:
 Objective: Identify and document project resources, roles,
responsibilities, and reporting relationships.
 Contents: Organizational charts, staffing management plans,
responsibility assignment matrices, and resource histograms.
  A responsibility assignment matrix (RAM) is a matrix that maps the
work of the project as described in the WBS

 A staffing management plan describes when and how people will be

added to and taken off the project team

2. Estimating Activity Resources:

 Tools and Techniques: Expert judgment, various estimating approaches,
data analysis, project management software, and meetings.
 Answer important questions regarding resource estimation, considering
project difficulty, uniqueness, organizational history, availability, and
outsourcing.
3. Acquiring Resources:
 Good hiring procedures and staffing plans are crucial.
 Project managers work with organizations to assign or acquire additional
human or physical resources.
 Consider individual and organizational needs in recruitment and retention
decisions.
 Resource loading refers to the amount of individual resources an
existing schedule requires during specific time periods
 Resource leveling is a technique for resolving resource conflicts by
delaying tasks
4. Developing the Project Team:
 Goal: Improve teamwork and project performance.
 Tuckman Model: Forming, Storming, Norming, Performing,
Adjourning
 Utilize training and team-building activities.
 physical challenges = military basic trainings, boot camp, etc.
 psychological preference indicator tools = MyersBriggs Type
Indicator, Wilson Learning Social Styles Profile and DISC
 Use tools like the Meyers-Briggs Type Indicator (MBTI) to understand
personality preferences.
 Four dimensions include: Extrovert/Introvert (E/I),
Sensation/Intuition (S/N), Thinking/Feeling (T/F),
Judgment/Perception (J/P)
 Implement reward and recognition systems to promote teamwork and goal
achievement.
 Team-based reward and recognition systems can promote
teamwork.
5. Managing the project Team:
 Tools and Techniques for Managing Project Teams:
Observation and conversation, Project performance appraisals,
Interpersonal skills, Conflict management.
 Conflict Handling Modes: Confrontation, Compromise,
Smoothing, Forcing, Withdrawal, Collaborating

6. Controlling Resources:
Ensuring physical resources assigned to the project are available as
planned.
Procurement Management
Outsourcing: India, China, and the Philippines are the preferred locations, A
shortage of qualified personnel, not cost savings, is the top reason
 Why Outsource: Skills, Cost, Focus on core business, Flexibility,
Accountability

1. Planning Procurement Management:

 Identify project needs suitable for external sourcing.
 Develop a procurement management plan describing procurement
processes and contract closure.
 Contracts: Establish legally binding agreements outlining
responsibilities, deliverables, and payment terms.
 Tools and Techniques: Make-or-buy analysis, Expert judgment,
Market research.
 Documents: Request for Proposals, Requests for Quotes
2. Conducting Procurements:
 Solicit proposals or bids from potential sellers.
 Evaluate proposals/bids and select a seller.
 Negotiate contracts and reach agreement.


3. Controlling Procurements:
 Ensure seller performance meets contractual requirements.
 Involve legal and contracting professionals in contract administration.
 Implement change control processes for contract modifications.
 Close out contracts by completing work, settling accounts, and resolving
open items.
Key Considerations:
 Change control: Document and assess the impact of any changes to the
contract.
 Contract closure: Complete all contractual obligations, update records,
and archive documents for future reference.
Procurement Methods:
 Approach preferred vendors/suppliers, advertise to several potential
sellers, or hold bidders' conferences.
 Evaluate proposals using criteria such as past performance, management
approach, and technical capability.
 Negotiate contracts with short-listed sellers, considering best and final
offers (BAFO) if necessary.
Closing Procurements:
 Ensure all work is satisfactorily completed.
 Update records and archive procurement-related documents.
 Negotiate settlements with sellers if needed, using mediation or
arbitration if negotiation fails.

Cost Managment
Importance of Project Cost Management:
 Budget Adherence: Essential for project success as additional funds are
often difficult to obtain.
 Poor Track Record: IT projects historically struggle to meet budget
goals.
 Cost Overruns: CHAOS studies and Harvard Business Review findings
indicate significant average cost overruns.
 Definition: Cost refers to resources sacrificed to achieve project
objectives, managed through project cost management processes.
Basic Principles of Cost Management:
 Revenue and Expenses: Understanding profit and loss is crucial.
 Profit Margin: Indicates profitability as a percentage of revenue.
 Lifecycle Costing: Includes all costs associated with a project from
inception to disposal.
 Cash Flow Analysis: Evaluates the impact of costs and benefits on cash
flow.
 Cost Types: Tangible (e.g., direct costs) and Intangible (e.g., opportunity
costs).
  Reserves: Contingency and Management reserves mitigate cost risks.

Cost Management Process Flow:

1. Planning Costs: Determine project objectives, scope, tasks, and
associated risks. Plan reserves.
2. Estimating Costs: Use historical data, modeling, and expert judgment to
estimate costs accurately.
3. Determining the Budget: Allocate cost estimates to individual work
items and establish a baseline.
4. Controlling Costs: Monitor cost performance, revise estimates as
needed, and communicate changes to stakeholders.
Tools and Techniques:
 Cost Estimation Tools: Excel, Google Sheets, Asana, Airtable,
Smartsheet.
 Earned Value Management (EVM): Integrates scope, time, and cost
data to measure project performance.
 Earned Value Formulas: Planned Value (PV), Actual Cost (AC), Earned
Value (EV).
Key Considerations:
 Project cost management is crucial for meeting budget goals and ensuring
project success.
 Effective cost management requires accurate estimation, budget
allocation, and continuous monitoring of cost performance.
 Tools such as EVM and software applications assist in managing costs
efficiently.
 

Definition of Project Quality: It emphasizes understanding quality from the

perspective of stakeholders and meeting their requirements. Quality is defined
by the International Organization for Standardization (ISO) as the degree to
which inherent characteristics fulfill requirements, with other experts defining it
based on conformance to requirements and fitness for use.

Project Quality Management Processes:

Planning Quality Management: Identifying relevant quality standards and metrics

for the project.
 Scope: Functionality, Features, System outputs, Performance,
Reliability, Maintainability
 Organisations: ISO, IEEE
Performing Quality Assurance: Evaluating overall project performance
periodically and focusing on continuous quality improvement.
 Benchmarking, Quality Audit
Controlling Quality: Monitoring specific project results to ensure compliance with
quality standards, making acceptance decisions, performing rework if necessary,
and making process adjustments.

Tools:

Cause-and-effect diagrams/Fish Bone

Control charts
Checksheets
Flowcharts
Techniques:
Six Sigma principles
Testing

Improving Information Technology Project Quality: Suggestions include

establishing leadership that promotes quality, focusing on organizational
influences and workplace factors affecting quality, and following maturity models
such as the Software Quality Function Deployment (SQFD) Model and the
Capability Maturity Model Integration (CMMI).

Labs
Lab 5 Agile
Scenario: You are tasked with developing a communication app specifically designed for university
students. This app should facilitate easy communication among students for sharing announcements,
event updates, study group coordination, and general discussions.
Sprint is a 2-4 week time period where certain features are listed and developed and a project contains
multiple sprints in scrum method
Output:
 A defined product vision for the university communication app: This will have all the features
the app should have
 A prioritized Product Backlog: listing down the main features out of all the features
 A Sprint Backlog for the upcoming sprint: features to be developed in 1 sprint
 Progress made during the sprint : Was the feature completed not etc.

Lab 6 Risk
(1) You’re doing a prototype for your project, but you’re not sure whether to proceed with
this prototype. If you do the prototype, it will cost you $100,000; and, of course, if you
don’t pursue it, there will be no cost. If you do the prototype, there is 30 percent
chance that the prototype might fail, and for that the cost impact will be $50,000.
However, if the prototype succeeds, the project will make $500,000. If you do not do
any prototype, you’re already taking a risk, the chance of which is 80 percent with a
failure impact of $250,000. But, again, without a prototype, should you succeed, the
project will make the same money as mentioned before. What should you do?
EMVa = 235k EMVb = -100kz
Sub-contractor 1 bids $250,000. You estimate that there is a 30% possibility of
completing 60 days late. As per your contract with the client, you must pay a delay
penalty of $5,000 per calendar day for every day you deliver late.

Sub-contractor 2 bids $320,000. You estimate that there is a 10% possibility of

completing 20 days late. As per your contract with the client, you must pay a delay
penalty of $5,000 per calendar day for every day you deliver late.

Risk Matrix
Your risks go in the applicable box depending on likelihood and impact (Not all of
them need to be filled)
Other Diagrams

Risk Register for Project Name

Prepared by: Date:

No. Rank Risk Description Category Root Cause Triggers Potential Risk Probability Impact Status
Responses Owner

Lab 7
Resource histogram
Lab 8 Cost

Lab 9
Six Sigma: DMAIC: Define, Measure, Analyse, Improve, Control
Total Quality Management (TQM) enforcing all-encompassing internal guidelines
and process standards to reduce errors. By way of serious, in-depth auditing – as
well as some well-orchestrated soul-searching
2 tools: fishbone diagram/ Cause Effect
Checksheet
 Financial Analysis for Project Name
Created by: Date:
Note: Change the inputs, shown in green below (i.e. interest rate, number of years, costs, and
benefits). Be sure to double-check the formulas based on the inputs.

Discount rate 8.00%

Assume the project is completed in Year 0 Year

0 1 2 3 Total
Costs 140,000 40,000 40,000 40,000
Discount factor 1.00 0.93 0.86 0.79
Discounted costs 140,000 37,200 34,400 31,600 243,200

Benefits 0 200,000 200,000 200,000

Discount factor 1.00 0.93 0.86 0.79
Discounted benefits 0 186,000 172,000 158,000 516,000

Discounted benefits - costs (140,000) 148,800 137,600 126,400 272,800 NPV

Cumulative benefits - costs (140,000) 8,800 146,400 272,800

ROI 112%
Payback in Year 1
Assumptions
Enter assumptions here