IT Project Management
PM Knowledge Areas:
Project Scope, Time and Cost
Topics
PMI Knowledge Areas:
• Scope Management
• Time Management
• Cost Management
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PROJECT SCOPE
MANAGEMENT
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Project Scope Management
• Project Scope
• Deliverables
• Project scope management includes the processes
involved in defining and controlling what is or is not
included in a project
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Project Scope Statement
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Work Breakdown Structure (WBS)
• A WBS is a deliverable-oriented grouping of the
work involved in a project that defines the total
scope of the project
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Work Breakdown Structures
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WBS from Text
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Example: Work Breakdown Structure (WBS)
1.0 Concept
1.1 Evaluate current systems
1.2 Define Requirements
1.2.1 Define user requirements
1.2.2 Define content requirements
1.2.3 Define system requirements
1.2.4 Define server owner requirements
1.3 Define specific functionality
1.4 Define risks and risk management approach
1.5 Develop project plan
1.6 Brief Web development team
2.0 Web Site Design
3.0 Web Site Development
4.0 Roll Out
5.0 Support
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Identifying Project Size
• Two Approaches
 Planning Phase Approach
• Amount of time spent in planning
• Simple project will require little planning
Planning
Industry
Standard
For Business
Applications
Time
Required
in Person
Months
Analysis
15%
Actual:
4
20%
Estimated:
5.33
Design
Implementation
35%
30%
9.33
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 Function Point Approach
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Function Point Approach
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Step 1: Estimate System Size
Step 1.1: Function Point Calculation
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Step 1.2: Processing Complexity (PC) Calculation
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Function Point Estimation
Processing Complexity (PC):
(From Step 1.2)
Adjusted Processing
Complexity (APC) =
__7______
Based on
perceived system
complexity;
0.65 for simple,
1.00 for normal,
and 1.35 for
complex systems
0.65 + (0.001 x __7_ ) = 0.72
Total Adjusted
Function Points:
_0.72 x _338_ = 243
(TAFP)
(TUFP -- From Step 1.1)
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Calculating Lines of Code (LOC)
Language
Total LOC
=
Avg. LOC per Function Point
TAFP x Avg. LOC per Function Point
243 x 50 = 12,150 (for Visual Basic)
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Step 2: Estimate Effort Required
• Function of size and production rate
• COCOMO model
 Converts a lines-of-code estimate into a person-month estimate
 For moderate-size projects multiply thousands lines of code by
1.4 to get the number of people to assign to the project
Effort (in person-months) = 1.4 x 12.150 = 17.01
From Step 1,
Total LOC divided by 1000
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Step 3: Estimate Time Required
• Rule of thumb for estimation
Schedule time (months) =
=
=
3.0 x person-month1/3
3.0 x (17.01)1/3
7.713
From Step 2,
Effort (in person-months)
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PROJECT TIME
MANAGEMENT
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Importance of Project Time Management
• Managers often cite delivering projects on time as one of
their biggest challenges
• Time has the least amount of flexibility; it passes no
matter what happens on a project
• Schedule issues are the main reason for conflicts on
projects, especially during the second half of projects
• FBI Trilogy project
 A.K.A. the “Tragedy” project
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Time Management Activities
• Activity Management




Activity definition
Activity sequencing
Activity resource estimating
Activity duration estimating
• Schedule Management
 Schedule development
 Schedule control
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Activity Definition
• Project schedules grow out of the basic documents that
initiate a project
• Activity definition involves developing a more detailed
WBS and supporting explanations to understand all the
work to be done so you can develop realistic cost and
duration estimates
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Activity List and Milestones
• An activity list is a tabulation of activities to be included
on a project schedule that includes:
• A milestone is a significant event that normally has no
duration
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Activity Sequencing
• Involves reviewing activities and determining
dependencies
• A dependency or relationship is the sequencing of project
activities or tasks
• You must determine dependencies in order to use
critical path analysis
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Network Diagrams
• Network diagrams are the preferred technique for
showing activity sequencing
• A network diagram is a schematic display of the logical
relationships among, or sequencing of, project activities
• Two main formats
 Activity-on-Arrow
 Activity-on-Node
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Activity-on-Arrow Network Diagram
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Activity-on-Node Network Diagram
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Precedence Diagramming Method
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Task Dependency Types
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Schedule Development
• Uses results of the other time management processes to
determine the start and end date of the project
• Ultimate goal is to create a realistic project schedule that
provides a basis for monitoring project progress for the
time dimension of the project
• Tools and Techniques
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Gantt Chart
• Gantt charts provide a standard format for displaying
project schedule information
• Symbols include:




Black diamonds: milestones
Thick black bars: summary tasks
Lighter horizontal bars: durations of tasks
Arrows: dependencies between tasks
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Example: Gantt Chart
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Comparison of Gantt Charts and Network Diagrams
Gantt Charts focus on time
Network Diagrams focus on dependencies
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Critical Path Method (CPM)
• CPM is a network diagramming technique used to
predict total project duration
• A critical path for a project is the series of activities that
determines the earliest (or shortest) time by which the
project can be completed
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Calculating CPM
• First develop a good network diagram
• Add the duration estimates for all activities on each path
through the network diagram
• Calculate the earliest expected completion time for each
activity by summing the activity times in the longest path
to the activity. This gives total expected project time
• Calculate the latest expected completion time for each
activity by subtracting the activity times in the path
following the activity from the total expected time. This
gives slack time for activities
• Critical path – contains no activities with slack time
 The longest path is the critical path
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Calculating CPM (contd.)
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Example 1: CPM (Activity-on-Arrow)
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Example 2: CPM (Activity-on-Node)
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More on CPM
• A project team at Apple computer put a stuffed gorilla on
the top of the cubicle of the person currently managing a
critical task
• Does the critical path contain all critical activities?
• Can there be more than one critical path?
• The critical path can change as the project progresses
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Using the Critical Path to Compress a Project Schedule
Three main techniques for compressing schedules:
1.
Shortening
2.
Crashing
3.
Fast tracking
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PROJECT COST
MANAGEMENT
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Table 7-1. Cost of Software Defects*
It is important to spend money up-front on IT
projects to avoid spending a lot more later.
*Collard, Ross, Software Testing and Quality Assurance, working paper (1997).
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Cost Estimating
Project managers must take cost estimates seriously if they
want to complete projects within budget constraints.
It’s important to know the types of cost estimates, how to
prepare cost estimates, and typical problems associated
with IT cost estimates.
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Cost Management Plan
A cost management plan is a document that describes how
the organization will manage cost variances on the
project.
A large percentage of total project costs are often labor
costs, so project managers must develop and track
estimates for labor.
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Cost Estimation Tools & Techniques
Basic tools and techniques for cost estimates:
 Analogous or top-down estimates
 Bottom-up estimates
 Parametric modeling
Tools
 Computerized tools: Tools, such as spreadsheets and project
management software, that can make working with different cost
estimates and cost estimation tools easier.
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Using Software to Assist in Cost Management
Spreadsheets are a common tool for resource planning, cost
estimating, cost budgeting, and cost control.
Many companies use more sophisticated and centralized
financial applications software for cost information.
Project management software has many cost-related features,
especially enterprise PM software.
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Types of Cost Estimates for a project
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Estimate Accuracy Over Time
As time progresses, cost estimates become more accurate
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Function Point Analysis
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Constructive Cost Model (COCOMO)
Barry Boehm helped develop the COCOMO models for
estimating software development costs.
Parameters include:
 Function points
 Source Lines of Code (SLOC)
Boehm suggests that only parametric models do not
suffer from the limits of human decision-making.
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Typical Problems with IT Cost Estimates
Developing an estimate for a large software project is a
complex task that requires a significant amount of effort.
People who develop estimates often do not have much
experience.
Human beings are biased toward underestimation.
Management might ask for an estimate, but really desire a bid
to win a major contract or get internal funding.
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Project Portfolio Dashboards
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Keys to Estimation
Utilize historical project information
Follow an estimating methodology
Get the right person to do the estimating
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