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More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
More on Software Project Management
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More on Software Project Management

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The fourth lesson of the course on Planning and Managing Software projects (http://emanueledellavalle.org/Teaching/PMSP-2011-12.html) that I give at Politecnico di Milano.

The fourth lesson of the course on Planning and Managing Software projects (http://emanueledellavalle.org/Teaching/PMSP-2011-12.html) that I give at Politecnico di Milano.

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  • 1. Planning and Managing Software Projects 2011-12Class 4More on SoftwareProject ManagementProject and Organizations, Project Portfolio Management,Procurement ManagementEmanuele Della Vallehttp://emanueledellavalle.org
  • 2. Credits 2§  This slides are largely based on Prof. John Musser class notes on Principles of Software Project Management§  Original slides are available at http://www.projectreference.com/§  Reuse and republish permission was granted Planning and Managing Software Projects – Emanuele Della Valle
  • 3. Today 3§  Project and Organizations§  Project Portfolio Management§  Procurement Management Planning and Managing Software Projects – Emanuele Della Valle
  • 4. Class 3 Review 4§  PMI Fundamentals and Processes§  Project Selection§  Initial documents •  Statement of Work (SOW) •  Project Charter Planning and Managing Software Projects – Emanuele Della Valle
  • 5. Organizations and ProjectsUnderstanding Organizations 5 Structural frame: Human resources Focuses on roles and frame: Focuses on responsibilities, providing harmony coordination and control. between needs of the Organization charts help organization and needs of define this frame. people. Political frame: Symbolic frame: Assumes organizations Focuses on symbols and are coalitions composed meanings related to of varied individuals and events. Culture is interest groups. Conflict important. and power are key issues. Planning and Managing Software Projects – Emanuele Della Valle
  • 6. Organizations and ProjectsOrganizational Structures 6§  Functional •  Engineering, Marketing, Design, etc •  Production and Logistics (P&L) from production§  Project •  Project A, Project B •  Income from projects •  PM has P&L responsibility§  Matrix •  Functional and Project based •  Program Mgmt. Model •  Shorter cycles, need for rapid development process Planning and Managing Software Projects – Emanuele Della Valle
  • 7. Organizations and ProjectsFunctional Organization 7•  Pros •  Cons –  Clear definition of –  Walls : can lack authority customer orientation –  Eliminates duplication –  Silos create longer decisions cycles –  Encourages specialization –  Conflicts across functional areas –  Clear career paths –  Project leaders have little power Planning and Managing Software Projects – Emanuele Della Valle
  • 8. Organizations and ProjectsProject Organization 8 •  Pros •  Cons –  Unity of command –  Duplication of facilities –  Effective inter- –  Career path project communication •  Examples: defense avionics, construction Planning and Managing Software Projects – Emanuele Della Valle
  • 9. Organizations and Projects Matrix Organization 9•  Pros •  Cons –  Project integration –  Two bosses for personnel across functional lines –  Complexity –  Efficient use of –  Resource & priority resources conflicts –  Retains functional teams Planning and Managing Software Projects – Emanuele Della Valle
  • 10. Organizations and ProjectsMatrix Forms 10§  Weak, Strong, Balanced§  Degree of relative power§  Weak: functional-centric§  Strong: project-centric Planning and Managing Software Projects – Emanuele Della Valle
  • 11. Organizations and Projects Organizational Structure Influences on Projects 11 Organization Type MatrixProject Functional Weak Matrix Balanced Strong Matrix ProjectizedCharacteristics MatrixProject Managers Little or Limited Low to Moderate High toAuthority None Moderate To High Almost TotalPercent of PerformingOrganizations Virtually 0-25% 15-60% 50-95% 85-100%Personnel Assigned Full- Nonetime to Project WorkProject Managers Role Part-time Part-time Full-time Full-time Full-timeCommon Title for Project Project Project Project ProjectProject Managers Role Coordinator/ Coordinator/ Manager/ Manager/ Manager/ Project Leader Project Leader Project Officer Program Manager Program ManagerProject ManagementAdministrative Staff Part-time Part-time Part-time Full-time Full-time PMBOK Guide, 2000, p. 19 Planning and Managing Software Projects – Emanuele Della Valle
  • 12. Organizations and ProjectsOrganizational Impact 12§  Form can greatly impact your role§  Determine what skills you ll need from which functions§  The new Project Office [1-2] A.  As centralized project management B.  As coach and info. office to project teams§  The Enterprise PMO (EPMO)[1] http://www.projectperfect.com.au/info_setup_po.php[2] http://en.wikipedia.org/wiki/Project_management_office Planning and Managing Software Projects – Emanuele Della Valle
  • 13. Project Portfolio Management 13§  Portfolio: a group of IT project under a coordinated management structure§  Different portfolio models are available: •  Economic return model –  NPV, IRR, ROI •  Cost-benefit model –  Can include less tangible factors •  Market research model –  For new products§  Each considers relative value and resource/budget interactions Planning and Managing Software Projects – Emanuele Della Valle
  • 14. Project Portfolio Management5 level approach 1/3 14A 5 level approach (from CIO magazine)1.  Create a Portfolio Database •  Information needed –  Project names & descriptions –  Estimated costs, timeframes, staffing •  Benefits –  Spotting redundancies –  Communication across orgs & teams –  Holistic view Planning and Managing Software Projects – Emanuele Della Valle
  • 15. Project Portfolio Management5 level approach 2/3 152.  Prioritize Projects •  Try quantifiable rankings –  Risk and return •  Still subjectivity and disagreements3.  Divide into budgets based on type •  To align with business needs •  Ex: utilities ( keeping the lights on ), incremental upgrades, strategic investments Planning and Managing Software Projects – Emanuele Della Valle
  • 16. Project Portfolio Management5 level approach 3/3 164.  Automate the repository •  Input of new data (new projects) •  Automated tracking (PM software integration)5.  Apply modern portfolio theory •  More advanced than most of us need Planning and Managing Software Projects – Emanuele Della Valle
  • 17. Project Portfolio Management Products - Oracle|Primavera 17[Source http://www.oracle.com/applications/primavera/primavera-portfolio-management.html ] Planning and Managing Software Projects – Emanuele Della Valle
  • 18. Project Portfolio Management Products - Planview 18[Source http://www.planview.com/products/enterprise/enterprise-portfolio-management/ ] Planning and Managing Software Projects – Emanuele Della Valle
  • 19. Procurement Management 19§  Procurement means acquiring goods and/or services from an outside source •  a.k.a. purchasing or outsourcing§  Know how your project fits-into this model •  Are you building in-house ? for hire ? –  Thus are you the outside source ? •  As a startup? (thus in-house but as basis for the business itself) Planning and Managing Software Projects – Emanuele Della Valle
  • 20. Procurement ManagementWhy Outsource? 20§  To reduce both fixed and recurrent costs§  To allow the client organization to focus on its core business§  To access skills and technologies§  To provide flexibility§  To increase accountability Planning and Managing Software Projects – Emanuele Della Valle
  • 21. Procurement ManagementProcurement Management 21§  Procurement planning: determining what to procure and when§  Solicitation planning: documenting product requirements and identifying potential sources§  Solicitation: obtaining quotations, bids, offers, or proposals as appropriate§  Source selection: choosing from among potential vendors§  Contract administration: managing the relationship with the vendor§  Contract close-out: completion and settlement of the contract Planning and Managing Software Projects – Emanuele Della Valle
  • 22. Procurement ManagementProject Procurement Management Processes and Key Outputs 22 Planning and Managing Software Projects – Emanuele Della Valle
  • 23. Procurement ManagementProcurement Tools & Techniques 23§  Make-or-buy analysis (build vs. buy) •  Determining whether a particular product or service should be made or performed inside the organization or purchased from someone else. Often involves financial analysis§  Experts •  Both internal and external, can provide valuable inputs in procurement decisions Planning and Managing Software Projects – Emanuele Della Valle
  • 24. Procurement ManagementMake-or Buy Example 24§  Assume you can lease an item you need for a project for $150/day. To purchase the item, the investment cost is $1,000, and the daily cost would be another $50/day.§  How long will it take for the lease cost to be the same as the purchase cost?§  If you need the item for 12 days, should you lease it or purchase it? Planning and Managing Software Projects – Emanuele Della Valle
  • 25. Procurement ManagementMake-or Buy Solution 25§  Set up an equation so the make is equal to the buy§  In this example, use the following equation. Let d be the number of days to use the item. $150d = $1,000 + $50d§  Solve for d as follows: •  Subtract $50d from the right side of the equation to get $100d = $1,000 •  Divide both sides of the equation by $100 d = 10 days§  The lease cost is the same as the purchase cost at 10 days§  If you need the item for > 12 days, then purchase it Planning and Managing Software Projects – Emanuele Della Valle
  • 26. Procurement ManagementTypes of Contracts 26§  Fixed price or lump sum: involve a fixed total price for a well-defined product or service§  Cost reimbursable: involve payment to the seller for direct and indirect costs§  Time and material contracts: hybrid of both fixed price and cost reimbursable, often used by consultants§  Unit price contracts: require the buyer to pay the seller a predetermined amount per unit of service Planning and Managing Software Projects – Emanuele Della Valle
  • 27. Procurement ManagementCost Reimbursable Contracts 27§  Cost plus incentive fee (CPIF) •  Buyer pays seller for allowable performance costs plus a predetermined fee and an incentive bonus§  Cost plus fixed fee (CPFF) •  Buyer pays seller for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs§  Cost plus percentage of costs (CPPC) •  Buyer pays seller for allowable performance costs plus a predetermined percentage based on total costs Planning and Managing Software Projects – Emanuele Della Valle
  • 28. Procurement ManagementContract Types Versus Risk 28 Planning and Managing Software Projects – Emanuele Della Valle
  • 29. Optional Reading 29§  McConnell: 7 Lifecycle Planning§  Schwalbe: •  3 Project Integration Management (62-67), •  4 Project Scope Management Planning and Managing Software Projects – Emanuele Della Valle

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