TMHG 526     Project ManagementNawanan Theera‐Ampornpunt, M.D., Ph.D.Faculty of Medicine Ramathibodi Hospital            M...
IT Project ManagementMarchewka (2006)   Marchewka (2009)
Introduction• Information Technology (IT) projects are organizational  investments that require   – Time   – Money   – Oth...
An ITPM Approach• Organizational resources are limited, so  organizations must choose among competing  interests to fund s...
Which Situation Is Worse?• Successfully building and implementing a system  that provides little or no value to the  organ...
The Software Crisis• The CHAOS study published in 1995 by The Standish  Group found that although the U.S. spent over $250...
Why Do IT Projects Fail?• Larger projects have the lowest success rate and  appear to be more risky than medium and smalle...
Has the Current State of IT Projects              Changed Since 1995?• The Standish Group has continued to study IT  proje...
New Top Ten Factors for IT Project Success                         Rank                                     Success Factor...
Summary of CHAOS Studies from 1994 to 2008Figure 1.1 Sources: www.standishgroup.com
Improving the Likelihood of Success• Socio-technical Approach• Project Management Approach   – processes and infrastructur...
IT Project Management      • A project: “a temporary endeavor undertaken to        accomplish a unique purpose”      • Pro...
The Context of Project Management - Project Attributes •   Time Frame •   Purpose (to provide value!) •   Ownership •   Re...
Class ExerciseThe Importance of Project Management Group discussion: Without proper Project Management, what can go wrong ...
The Project Management Dilemma     Good                  Fast              Project            Deliverables             Cheap
The Triple ConstraintMarchewka (2006)
The Project Life Cycle & IT Development• Project Life Cycle (PLC)   – A collection of logical stages or phases that maps t...
Project Life CycleMarchewka JT (2006)
Software Development Life Cycle (SDLC)• Represents the sequential phases or stages an information  system follows througho...
Software Development Life CycleMarchewka JT (2006)
Relationship Between PLC & SDLC• The systems development life cycle (SDLC)  becomes part of the project life cycle (PLC). ...
PLC & SDLCMarchewka JT (2006)
IT Project Management MethodologyMarchewka JT (2006)
Putting the SDLC into Practice• Structured Approach to Systems  Development  –Waterfall Method• Rapid Applications Develop...
Structured Approaches:   Waterfall Method
Extreme Project Management (XPM)• A new approach and philosophy to project management that  is becoming increasingly popul...
The Project Management            Body of Knowledge (PMBOK ®)• The Guide to the Project Management Body of Knowledge (PMBO...
The Project Management                   Body of Knowledge (PMBOK ®)      1.      Project Integration Management      2.  ...
Project Management Body of Knowledge AreasMarchewka (2006)
Developing The Business CaseMarchewka (2006)
Measurable Organizational Value (MOV)      •    The project’s goal      •    Measure of success      •    Must be measurab...
The IT Value ChainMarchewka (2006)
A Good Project Goal         “Our goal is to land a man on the             moon and return him safely       to the earth by...
Metrics: Financial      • Payback Period     =       Initial Investment                                     Net Cash Flow ...
Metrics: Scoring Method            Criterion                                           Weight        Alternative A      Al...
Balanced ScorecardMarchewka (2006)
MOV & ScorecardMarchewka (2006)
IT Project Management MethodologyMarchewka (2006)
Project Charter TemplateMarchewka (2006)
Formulating Project PlanMarchewka (2006)
Project ScopeIn‐Scope              Out‐of‐Scope
Project Planning FrameworkMarchewka (2006)
Gantt ChartMarchewka (2006)
PERT Charthttp://en.wikipedia.org/wiki/Program_Evaluation_and_Review_Technique
Activity On The Node (AON)                         Network DiagramMarchewka (2006)
Project Scheduling      • Critical Path Method (CPM)      • Precedence Diagramming Method (PDM)      • Lead Time & Lag Tim...
Work Breakdown StructureMarchewka (2006)
Project Schedule Estimation Techniques      •    Guesstimating      •    Delphi Technique      •    Time Boxing      •    ...
Project Budget• Direct/up-front costs     – Materials     – Services     – Labor• Ongoing costs• Indirect costs     –   Fa...
Project Human Resource Management      • Project team members, roles & responsibilities      • Organizational structure   ...
Project Risk Management                                 Risk = f(likelihood x impact)                                     ...
Project Management
Project Management
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Project Management

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Project Management

  1. 1. TMHG 526 Project ManagementNawanan Theera‐Ampornpunt, M.D., Ph.D.Faculty of Medicine Ramathibodi Hospital Mahidol University April 11, 2013
  2. 2. IT Project ManagementMarchewka (2006) Marchewka (2009)
  3. 3. Introduction• Information Technology (IT) projects are organizational investments that require – Time – Money – Other resources such as people, technology, facilities, etc.• Organizations expect some type of value in return of this investment• IT Project Management is a relatively new discipline that combines traditional Project Management with Software Engineering/Management Information Systems to make IT projects more successful.
  4. 4. An ITPM Approach• Organizational resources are limited, so organizations must choose among competing interests to fund specific projects.• This decision should be based on the value a competing project will provide to an organization.
  5. 5. Which Situation Is Worse?• Successfully building and implementing a system that provides little or no value to the organization.Or…• Failing to implement an information system that could have provided value to the organization, but was poorly developed or poorly managed.
  6. 6. The Software Crisis• The CHAOS study published in 1995 by The Standish Group found that although the U.S. spent over $250 billion on IT projects, approximately… –31% were cancelled before completion –53% were completed but over budget, over schedule, and did not meet original specifications. • For mid-size companies, average cost overruns were 182%, while average schedule overruns were 202%!
  7. 7. Why Do IT Projects Fail?• Larger projects have the lowest success rate and appear to be more risky than medium and smaller projects –Technology, business models and markets change so rapidly that a project that takes more than a year can be obsolete before they are completed.• The Chaos study also provides some insight as to the factors that influence project success.
  8. 8. Has the Current State of IT Projects Changed Since 1995?• The Standish Group has continued to study IT projects over the years.• In general, IT Projects are showing higher success rates due to –Better project management tools & processes –Smaller projects –Improved communication among stakeholders –More skillful IT project managers• But there is still ample opportunity for improvement!
  9. 9. New Top Ten Factors for IT Project Success Rank Success Factor 1 User Involvement 2 Executive Support 3 Clear Business Objectives 4 Emotional Maturity 5 Optimizing Scope 6 Agile Process 7 Project Management Expertise 8 Skilled Resources 9 Execution 10 Tools and InfrastructureSource: The Standish Group. CHAOS (West Yarmouth, MA: 1995, 2010) and http://www.infoq.com/articles/Interview‐Johnson‐Standish‐CHAOS. (cited in Marchewka JT. Information technology project management. 4th ed. Singapore: John Wiley & Sons;2013.
  10. 10. Summary of CHAOS Studies from 1994 to 2008Figure 1.1 Sources: www.standishgroup.com
  11. 11. Improving the Likelihood of Success• Socio-technical Approach• Project Management Approach – processes and infrastructure (Methodology) – resources – expectations – competition – efficiency and effectiveness• Knowledge Management Approach – lessons learned, best practices and shared knowledge
  12. 12. IT Project Management • A project: “a temporary endeavor undertaken to accomplish a unique purpose” • Project management: “the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed project requirements”Marchewka (2006)
  13. 13. The Context of Project Management - Project Attributes • Time Frame • Purpose (to provide value!) • Ownership • Resources (the triple constraint) • Roles – Project Manager – Project Sponsor – Subject Matter Experts – Technical Experts • Risk & Assumptions • Interdependent Tasks • Planned Organizational Change • Operate in Environments Larger than the Project Itself
  14. 14. Class ExerciseThe Importance of Project Management Group discussion: Without proper Project Management, what can go wrong with the IT projects?
  15. 15. The Project Management Dilemma Good Fast Project Deliverables Cheap
  16. 16. The Triple ConstraintMarchewka (2006)
  17. 17. The Project Life Cycle & IT Development• Project Life Cycle (PLC) – A collection of logical stages or phases that maps the life of a project from its beginning to its end in order to define, build and deliver the product of the project – i.e., the information system• Projects are divided into phases to increase manageability and reduce risk – Phase exits, stage gates, or kill points are decision points at the end of each phase to evaluate performance, correct problems or cancel the project – Fast tracking is the overlapping of phases to reduce the project’s schedule • Can be risky!
  18. 18. Project Life CycleMarchewka JT (2006)
  19. 19. Software Development Life Cycle (SDLC)• Represents the sequential phases or stages an information system follows throughout its useful life• Useful for understanding the development of the project’s largest work product – the application system• Phases/Stages – Planning – Analysis – Design – Implementation – Maintenance and Support
  20. 20. Software Development Life CycleMarchewka JT (2006)
  21. 21. Relationship Between PLC & SDLC• The systems development life cycle (SDLC) becomes part of the project life cycle (PLC). –The PLC focuses on the project management phases, processes, tools and techniques for effectively managing the project. –The SDLC focuses on the software engineering phases, processes, tools and techniques for building and/or implementing the IT solution.
  22. 22. PLC & SDLCMarchewka JT (2006)
  23. 23. IT Project Management MethodologyMarchewka JT (2006)
  24. 24. Putting the SDLC into Practice• Structured Approach to Systems Development –Waterfall Method• Rapid Applications Development (RAD) –Prototyping –Spiral Development –Extreme Programming
  25. 25. Structured Approaches: Waterfall Method
  26. 26. Extreme Project Management (XPM)• A new approach and philosophy to project management that is becoming increasingly popular.• Characterizes many of today’s projects that exemplify speed, uncertainty, changing requirements and high risks.• Traditional project management often takes an orderly approach while XPM embraces the fact that projects are often chaotic and unpredictable.• XPM focuses on flexibility, adaptability and innovation• Traditional and new approaches together can provide us with a better understanding of how to improve the likelihood of project success.
  27. 27. The Project Management Body of Knowledge (PMBOK ®)• The Guide to the Project Management Body of Knowledge (PMBOK® Guide) documents 9 project management knowledge areas.• The PMBOK® Guide is published and maintained by the Project Management Institute (PMI). – http://www.pmi.org• PMI provides a certification in project management called the Project Management Professional (PMP) that many people today believe will be as relevant as a CPA certification.• PMP certification requires that you pass a PMP certification exam to demonstrate a level of understanding about project management, as well as satisfy education and experience requirements, and agree to a professional code of conduct.
  28. 28. The Project Management Body of Knowledge (PMBOK ®) 1. Project Integration Management 2. Project Scope Management 3. Project Time Management 4. Project Cost Management 5. Project Quality Management 6. Project Human Resources Management 7. Project Communications Management 8. Project Risk Management 9. Project Procurement ManagementMarchewka (2006)
  29. 29. Project Management Body of Knowledge AreasMarchewka (2006)
  30. 30. Developing The Business CaseMarchewka (2006)
  31. 31. Measurable Organizational Value (MOV) • The project’s goal • Measure of success • Must be measurable • Provides value to the organization • Must be agreed upon • Must be verifiable at the end of the project • Guides the project throughout its life cycle • Should align with the organization’s strategy and goalsMarchewka (2006)
  32. 32. The IT Value ChainMarchewka (2006)
  33. 33. A Good Project Goal “Our goal is to land a man on the  moon and return him safely  to the earth by the end of the decade.” John F. Kennedy (1961)Marchewka (2006)
  34. 34. Metrics: Financial • Payback Period = Initial Investment Net Cash Flow • Breakeven Point = Initial Investment Net Profit Margin • Project ROI = (Total Expected Benefits - Total Expected Costs) Total Expected CostsMarchewka (2006)
  35. 35. Metrics: Scoring Method Criterion Weight Alternative A Alternative B Alternative C ROI 15% 2 4 10 Financial Payback 10% 3 5 10 Net Present Value (NPV) 15% 2 4 10 Alignment with strategic  objectives 10% 3 5 8 Organizational Likelihood of achieving  project’s MOV 10% 2 6 9 Availability of skilled  team members 5% 5 5 4 Maintainability 5% 4 6 7 Project Time to develop 5% 5 7 6 Risk  5% 3 5 5 Customer satisfaction 10% 2 4 9 External Increased market share 10% 2 5 8Marchewka Total Score 100% 2.65 4.85 8.50(2006) Notes: Risk scores have a reverse scale – i.e., higher scores for risk imply lower levels of risk
  36. 36. Balanced ScorecardMarchewka (2006)
  37. 37. MOV & ScorecardMarchewka (2006)
  38. 38. IT Project Management MethodologyMarchewka (2006)
  39. 39. Project Charter TemplateMarchewka (2006)
  40. 40. Formulating Project PlanMarchewka (2006)
  41. 41. Project ScopeIn‐Scope Out‐of‐Scope
  42. 42. Project Planning FrameworkMarchewka (2006)
  43. 43. Gantt ChartMarchewka (2006)
  44. 44. PERT Charthttp://en.wikipedia.org/wiki/Program_Evaluation_and_Review_Technique
  45. 45. Activity On The Node (AON) Network DiagramMarchewka (2006)
  46. 46. Project Scheduling • Critical Path Method (CPM) • Precedence Diagramming Method (PDM) • Lead Time & Lag TimeMarchewka (2006)
  47. 47. Work Breakdown StructureMarchewka (2006)
  48. 48. Project Schedule Estimation Techniques • Guesstimating • Delphi Technique • Time Boxing • Top-Down • Bottom Up • Analogous Estimates (Past experiences) • Parametric Modeling (Statistical)Marchewka (2006)
  49. 49. Project Budget• Direct/up-front costs – Materials – Services – Labor• Ongoing costs• Indirect costs – Facilities, utilities – Administration – Taxes – Benefits• (Opportunity & productivity costs)• (Sunk costs)• Learning curve• Reserves• Total Cost of Ownership (TCO)
  50. 50. Project Human Resource Management • Project team members, roles & responsibilities • Organizational structure – Functional – Project-based – Matrix • Stakeholder analysisMarchewka (2006)
  51. 51. Project Risk Management Risk = f(likelihood x impact) Risk Strategies • Accept/ignore • Avoid completely • Reduce risk likelihood or impact • Transfer risk to someone else (e.g. insurance)Marchewka (2006)

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