5. Top five reasons why project management
fails
TOP FIVE REASONS- TECH PROJECT
Failure to Manage Culture Change
Lack of Commitment
Pass Failures
Inadecuate Planning
Is not about the tools!
6. Project Scope Management
The processes required to ensure that the project
includes all the work required, and only the work
required, to complete the project successfully
Why Do We Manage Scope?
Can’t manage schedule and budget if scope is out of
control (Triple Constraint)
Scope docs are used to manage expectations
7. Scope Management Key Points
What is scope management
Checking to ensure that one is completing work
Saying No to additional work not in the charter
Preventing extra work
Work Breakdown Structure (WBS)
Foundation of the project, all planning and controlling is based
on the WBS
Identifies all work to be performed, if it is not in the WBS it
does not need to be done
Graphical picture of work
9. How Do We Manage Scope?
Five processes
Scope Planning
Scope Definition
Create WBS
Scope Verification
Scope Control
Scope
Planning
Scope
Definition
Create
WBS
Scope
Verification
Scope
Control
10. Scope Definition
• Change Control System
• Documentation, tracking, and approvals required to
change project scope
• Configuration Management System
• Documentation, tracking, and approvals required to
change product scope
• Management by Objectives (MBO)
• Establish unambiguous and realistic objectives
• Periodically evaluate if objectives are being met
• Take corrective action
11. Project Time Management
• “The processes required to accomplish timely completion
of the project”
• Why Time Management?
1. Part of triple constraint, can’t manage one without the
others (scope, time, and quality)
2. Second hardest section on the test behind integration
12. How Do We Manage Time?
• Six processes
• Activity Definition
• Activity Sequencing
• Activity Resource Estimating
• Activity Duration Estimating
• Schedule Development
• Schedule Control
Activity
Definition
Activity
Sequencing
Activity
Resource
Estimating
Activity
Duration
Estimating
Schedule
Development
Schedule
Control
13. Activity Definition
Enterprise
Environmental
Factors
Organizational
Process Assets
Project Scope
Statement
Decomposition
Templates
Rolling wave planning
Expert judgment
Planning component
Inputs
OutputsTools & Techniques
Work Breakdown
Structure
WBS Dictionary
Project
Management Plan
Activity List
Activity Attributes
Milestone List
Requested Changes
Activity
Definition
Activity
Sequencing
Activity
Resource
Estimating
Activity
Duration
Estimating
Schedule
Development
Schedule
Control
14. Activity Definition
• Rolling Wave Planning – Progressive planning where
near term work is broken down in detail and distant
work is kept at a higher WBS level
• Planning Component – WBS items that cannot be
broken down into work packages are put in a:
• Control Account – High level planning dates for the scope to be
defined
• Planning Package – Package includes scope to be completed but no
activities
16. Precedence Diagramming Method (PDM)
• Commonly called Activity on Node (AON), most
commonly used sequencing method
• Boxes are used to represent tasks with arrows used
for dependencies
• Four types of dependencies
Finish to Start – Task must finish before next one can
start
Finish to Finish – One task must finish before the other
can finish
Start to Start – One task must start before the other can
start
Start to Finish – One task must start before the other can
finish
Activity
A
Activity
B
NodeDependency
17. Arrow Diagramming Method (ADM)
• Commonly called Activity on Arrow (AOA)
• Boxes are used to represent dependencies with arrows used for tasks
• Only Finish to Start relationships
• Can use “dummy” activities
• Used for CPM and PERT estimating methods
Task
Dependency
Activity
A
Method Comparison
Start
Build
Foundation
Build
Walls
Install
Grass
Build
Roof Finish
Start Build
Foundation
Build
Walls
Build
Roof
Finish
Install
Grass
PDM
(AON)
Method
ADM
(AOA)
Method
20. Schedule Development
Enterprise
Environmental Factors
Organizational Process
Assets
Project Scope
Statement
Schedule network analysis
Critical path method
Schedule compression
What-if analysis
Resource leveling
Critical chain method
Project management
software
Applying calendars
Adjustable leads and lags
Schedule model
Inputs
Outputs
Tools & Techniques
Activity List
Activity Resource
Requirements
Schedule baseline
Activity attributes
updates
Activity
Definition
Activity
Sequencing
Activity
Resource
Estimating
Activity
Duration
Estimating
Schedule
Development
Schedule
Control
Resource Calendar
Activity Attributes
Project Management
Plan
•Risk Register
•Activity Cost
Estimates
Project schedule
Schedule model data
Resource
requirements updates
Requested changes
Project management
plan updates
•Schedule
management
plan updates
Project calendar
updates
21. Schedule Control
Schedule Management
Plan
Schedule Baseline
Schedule network analysis
Critical path method
Schedule compression
What-if analysis
Resource leveling
Critical chain method
Project management
software
Applying calendars
Adjustable leads and lags
Schedule model
Inputs
Outputs
Tools & Techniques
Performance reports
Schedule baseline
updates
Requested changes
Activity
Definition
Activity
Sequencing
Activity
Resource
Estimating
Activity
Duration
Estimating
Schedule
Development
Schedule
Control
Approved Change
Requests
Schedule model data
updates
Performance
measurements
Organizational
process assets
updates
Activity list updates
Recommended
corrective actions
Activity attribute
updates
Project Management
Plan updates
22. Other Important Terms
• Lag – Inserted waiting time between tasks
• Free Slack – Available delay time without impacting
start of successor
• Total Slack – Amount of time a task can be delayed
without delaying project completion date
• Project Slack – Amount of time a project can be
delayed without impacting completion dates imposed
by client
• Crashing – Adding resources to critical path items to
shorten schedule
• Fast Tracking – Performing critical path tasks in
parallel rather than series
• Resource Leveling – Adjusting completion dates of
tasks
23. Project Cost Management
Cost is a resource sacrificed or foregone to achieve a specific objective, or
something given up in exchange.
Costs are usually measured in monetary units, such as dollars or Taka’s.
Project Cost Management includes the processes required to ensure that
the project is completed within an approved budget.
Project Cost Management Processes
Cost estimating: Developing an approximation or estimate of the costs of the
resources needed to complete a project.
Cost budgeting: Allocating the overall cost estimate to individual work items to
establish a baseline for measuring performance.
Cost control: Controlling changes to the project budget.
24. Basic Principles of Cost Management
Most members of an executive board have a better understanding and are
more interested in financial terms than IT terms, so IT project managers
must speak their language.
Profits are revenues minus expenses.
Life cycle costing considers the total cost of ownership, or development
plus support costs, for a project.
Cash flow analysis determines the estimated annual costs and benefits for
a project and the resulting annual cash flow.
Tangible costs or benefits are those costs or benefits that an organization
can easily measure in dollars.
Intangible costs or benefits are costs or benefits that are difficult to
measure in monetary terms.
Direct costs are costs that can be directly related to producing the products
and services of the project.
Indirect costs are costs that are not directly related to the products or
services of the project, but are indirectly related to performing the project.
Sunk cost is money that has been spent in the past; when deciding what
projects to invest in or continue, you should not include sunk costs.
25. Earned value Management
The earned value Management involves developing these key values for each schedule activity, work
package, or control account:
Planned value (PV). PV is the budgeted cost for the work scheduled to be completed on an activity or
WBS component up to a given point in time.
Earned value (EV). EV is the budgeted amount for the work actually completed on the schedule activity
or WBS component during a given time period.
Actual cost (AC). AC is the total cost incurred in accomplishing work on the schedule activity or WBS
component during a given time period. This AC must correspond in definition and coverage to whatever
was budgeted for the PV and the EV (e.g., direct hours only, direct costs only, or all costs including
indirect costs).
Cost variance (CV). CV equals earned value (EV) minus actual cost (AC). The cost variance at the end
of the project will be the difference between the budget at completion (BAC) and the actual amount
spent. Formula: CV= EV - AC
Schedule variance (SV). SV equals earned value (EV) minus planned value (PV). Schedule variance
will ultimately equal zero when the project is completed because all of the planned values will have been
earned. Formula: SV = EV - PV
These two values, the CV and SV, can be converted to efficiency indicators to reflect the cost and
schedule performance of any project.
Cost performance index (CPI). A CPI value less than 1.0 indicates a cost overrun of the estimates. A
CPI value greater than 1.0 indicates a cost underrun of the estimates. CPI equals the ratio of the EV to
the AC. The CPI is the most commonly used cost-efficiency indicator. Formula: CPI = EV/AC
Schedule performance index (SPI). The SPI is used, in addition to the schedule status to predict the
completion date and is sometimes used in conjunction with the CPI to forecast the project completion
estimates. SPI equals the ratio of the EV to the PV. Formula: SPI = EV/PV