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CIS570 WS3 Project Planning Business Systems Joseph Lewis Aguirre.

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2 CIS570 WS3 Project Planning Business Systems Joseph Lewis Aguirre

3 Project Planning - MGMT Managers Role in Project Planning Project Champion Project Planning

4 Project Planning - Plan Components of Business Project Plan Feasibility Study Business Requirements Definition Detailed Requirements Definition Solution Design Systems Development and Implementation

5 Project Planning- Scheduling Project Scheduling Constraints Phased Milestones Resources Forward/Backwards Scheduling

6 Project Planning- Cost Cost Estimation HW/SW In House/Outsource Training/Maintenance Cost Estimation Models

7 Project Planning- Alternatives Feasibility of technology alternatives Internet Intranet Extranet

8 CIS570 Project Management Joseph Lewis Aguirre

9 Moore s law predicts the doubling of computing power every 18 – 24 months Gilder s law predicts the doubling of communications power every six months Sample Laws

10 Transistor density doubles every 18 months 60% increase per year –Chip density transistors/die –Micro processor speeds Exponential growth: –The past does not matter –10x here, 10x there … means REAL change PC costs decline faster than any other platform –Volume and learning curves –PCs are the building bricks of all future systems Moores Laws

11 Amdahls law: one instruction per second requires one byte of memory and one bit per second of I/O Processor speed has evolved at 60% Storage evolves at 60% Wide Area Network speed evolves at 60% Local Area Network speed evolved 26-60% Groves Law: Plain Old Telephone Service (POTS) thwarts speed, evolving at 14%! Computer Components must evolve at the same time

12 Demand: doubles as price declines by 20% Learning curves: 10-15% cost decline with 2X units Bills Law for the economics of PC software Nathans Laws of Software -- the virtuous circle Metcalfes Law of the value of a network Economics based laws

13 How many connections can it make? –1 user: no utility –100,000 users: a few contacts –1 million users: many on Net –1 billion users: everyone on Net That is why the Internet is so hot –Exponential benefit Metcalfs Law of Network Utility

14 Bill Joys law (Sun): dont write software for <100,000 million engineering expense, $1,000 price Bill Gates law: dont write software for <1,000,000 engineering expense, $100 price Examples: –UNIX versus Windows NT: $3,500 versus $500 –Oracle versus SQL-Server: $100,000 versus $6,000 Price Fixed_cost Marginal _cost = Units + Software Economics – Bills Laws

15 Innovation Volume Competition Standards Utility/value The Virtuous Economic Cycle driving the Compute Element

16 1. Software is a gas. It expands to fill the container it is in 2. Software grows until it becomes limited by Moores Law 3. Software growth makes Moores Law possible 4. Software is only limited by human ambition and expectation …GB: and our ability to cyberize I.e. encode Nathans Laws of Software

17 Region/Intranet Campus Home… buildings buildings Body World Continent Fractal Cyberspace: a network of … networks of … platforms Cars… phys. nets Everything Cyberizable in Cyberspace

18 NetworkInterfacePlatform The Computer Mainframe tube, core, drum, tape, batch O/S direct > batch Mini & Timesharing SSI-MSI, disk, timeshare O/S terminals via commands POTS PC/WS micro, floppy, disk, bit-map display, mouse, distd O/S WIMP LAN Web browser, telecomputer, tv computer PC, scalable servers, Web, HTML Internet Enablers

19 Future Computer Classes

20 Computer type Mainframe WSBrowser Price (K$) Volume (K) Application price Traditional computers: custom or semi-custom, high-tech and high-touch New computers: high-tech and no-touch Platform Economics

21 Capac. (svc & response) Application innovation User demand Internet (IP) ubiquity Excess capac. -->>BW Virtuous Cycle Driving Bandwidth

22 An engineer costs about $150K/year R&D gets [5%…15%] of budget Need [$3 million… $1 million] revenue per engineer Microsoft: $9 billion R&D16% SG&A34% Product and Service 13% Tax13% Profit24% Intel: $16 billion R&D8% SG&A 11% P&S47% Tax 12% Profit 22%R&D8% SG&A22% P&S59%Tax5% Profit6% IBM: $72 billion R&D9% SG&A 43% Tax7% Profit15% P&S26% Oracle: $3 billion Software Economics

23 BIG THREE MODELS SCOPE Context Model Event Model Information Model

24 Design view Component view Use case view Process view Deployment view End user - Functionality - Vocabulary Programmers - Software management Analysts/Testers - Behavior System integrators - Performance - Scalability - Throughput System engineering - System topology - Delivery and installation - Communication Rational Rose Model

25 USE CASE DIAGRAMS Documents user-system interactions required to perform tasks


27 Business Process Modeling For each icon ask:mission, tasks, problems, decisions, metrics, who else needs to be informed? Sales Order Processing

28 Context Model

29 What is Context Context influences how we perceive information. Context enables us to manage the vast amount of information that surrounds us. Context guides us through the information surrounding us. Context allows to discriminate what is important and what is not. Context helps us to adapt to our surroundings.

30 Context Model I'm going to have to I'm going to really have to, yes, manipulate on I'll leave B and C on full tilt now I'm going to have to manipulate one of these if I want to cut down if I'm going to go over it 4 minutes and I've used 6 I've got A oxidising Not much meaning without context?

31 Context Model Cognitive Demand Context Size SmallLarge High Low Within Context Between Context Total Cognitive Demand Possible relationship between context size and cognitive demand

32 TRUISMS It is not the plan that matters, Its the planning. - General Dwight D. Eisenhower Graphical Diagrams do not constitute a specification….nothing replaces clear, concise text. - David A. Ruble At a recent study, I commented at one point in our deliberations that we had spent more time on wordsmithing than we had on considering the substance of our report. -- Robert W. Lucky, VP for Applied Research at Telecordia. NJ It seems to me language by its very nature is imprecise. I think of each word as inhabiting a fuzzy ball of uncertain semantic meaning…. – Robert W. Lucky

33 Context Model Processing Control Output Input System External Agent StimulusResponse

34 Understand the flows of data around the system Define processes that transform or manipulate data Identify the sources and recipients of data outside the system Show where data is held in the system Aid communication between user and analyst Form the basis of function definition and event identification Data Flow Modeling

35 Typically three versions of the DFM are produced: Current physical DFM Logical DFM Required system DFM Data Flow Modeling

36 The data flow model consists of: Data flow diagrams (DFD) Elementary process descriptions (EPD) External entity descriptions I/O descriptions Data Flow Modeling

37 DATA FLOW DIAGRAMS Given well specified processes and the information required to support those process, Data Flow Diagrams (DFD) are use to represent the data acquisition, transformation, storage and delivery process. External Entities: People or systems Data Flows: Data content acquired from an external entity. Processes: Transform data according to business rules – strictly computer implemented processes Business rules and processing logic must be documented for each process.

38 Context Diagram A Representation of the Process Model

39 DFD – CONTEXT DIAGRAM Data source/sink, external entity Data/Process – strong action verb, followed by object Data Store

40 DFD Notation Law of transformation – a process transforms the data in some way Law of conservation – a process output must be derivable from its input, and should be given enough information to do its job Process: Strong action verb followed by object to which action applies - VO External agent – named using noun

41 CONTEXT DIAGRAM - PAYROLL Employee Payroll Manager Process Payroll. Timecards Pay Checks W2 Forms Payroll Reports Tax Tables and Parameters Employee Fixed Data

42 CustomerAccounts Invoice Order Invoice Process Order Process Entity Data Flow Outputs expressed in computer programming language Data Flow Diagram

43 Process Modeling Employee Payroll Manager Process Payroll.* Timecards Pay Checks W2 Forms Payroll Reports Tax Tables and Parameters Employee Fixed Data IF YtdGrossPay + CurrentGrossPay <= MaxFICAWages THEN ficaTax = CurrentGrossPay * FICATaxRate ELSE IF YtdGrossPay <= MaxFICAWages THEN ficaTax = (MaxFICAWages - YtdGrossPay) * FICATaxRate ELSE ficaTax = 0 END IF A Process used to calculate FICA withholding taxes processing logic:

44 Catalog describing the information and data used in the system Need entries for –Processes (name, number, performed by, trigguer, volume, logic) –Data Flows (name, description, frequency, structure) –Data Stores (name, description, key elements, sequence, media, volume, organization, structure) DATA DICTIONARY

45 DATA DICTIONARY – DATA STORE Data Dictionary Sample Entry: Data Store File or Database Name: Accounting Aliases: Project Accounting Brief Description : Used to track projects and staffing levels Composition: Project Nuber + Project Description + Staff Count + Employee Name + Release Date Organization : Sequential by Project Number NOTES :

46 Event Model

47 Event Model Benefits Compared to hierarchical process model used to document requirements for monolithic process- driven programs, event model is more flexible

48 Event Model Processing Control Environment System Components, Relationships, Boundaries, Interfaces, Constraints Stimulus Response Event Effect

49 Event Model Deliverables Event List Event Dictionary Event Matrices

50 Event Lists Customer returns merchandise Customer requests refund Customer places order Engineering requests bug list S-V-O

51 EVENT DICTIONARY – FICA Event ID: 099 Event Name: Calculate FICA Withholding Taxes Description : Simple tax withholding calculation using FICA Tax Rates Stimulus: Employee ID, Pay Period, Current gross pay and Year to Date Gross Pay Alias: None

52 EVENT DICTIONARY - FICA (cont) IF YtdGrossPay + CurrentGrossPay <= MaxFICAWages THEN ficaTax = CurrentGrossPay * FICATaxRate Activity : Create an instance of FICA Withholding using employee ID, and Pay period. IF YtdGrossPay + CurrentGrossPay <= MaxFICAWages THEN ficaTax = CurrentGrossPay * FICATaxRate ELSE IF YtdGrossPay <= MaxFICAWages ELSE IF YtdGrossPay <= MaxFICAWages THEN ficaTax = (MaxFICAWages - YtdGrossPay) * FICATaxRate ELSE ficaTax = 0 ELSE ficaTax = 0 END IF END IF END IF Statistics?

53 EVENT DICTIONARY- FICA (cont) Response : Withholding tax Effect : Can be printed and given to employee

54 EVENT DICTIONARY Event ID: 099 Event Name: Warehouse ships customer order Description : When warehouse ships product, the trucking company is identified and quantity shipped for each item is updated on the customer order. If the total quantity shipped equals total quantity ordered, then the order item is closed out. If all items of the order have been filled, then the order is closed out. A BOL is produced by the system to accompany the shipment Stimulus: Employee ID, Pay Period Alias: None

55 Event Model – Event List Customer Places Order Customer Cancels Order Warehouse ships order Accounting Invoices Order Customer Pays Invoice

56 Event Entity Matrix Customer Places Order Credit Approves Order Warehouse ships order Accounting Invoices Order Marketing Sends Literature Customer Order Order Item Plant Order CRU U R R R C UR R R R R R R R CNA RU R NA

57 Cross Check Cross Check Event Model with Information Model for missing entities, attributes, relationships If you have it, use it, else why have it Exceptions, such as non-events?

58 Event Organization – Event Chain Sort by Time – event chain 1.Customer Places order 2.Sales manager approves 3.Production schedules order 4.Factory produces order 5.Factory ships order 6.Time to issue statement 7.Customer pays balance Syntax, exception management?

59 Event Organization – Event Subject Sort By Subject: Customer places order Customer pays deposit on order Customer cancels order Customer picks up order Customer does not pick up order Customer pays balanced due Customer does not pay balance Syntax, exception management? Customer Events Factory Events Factory schedules order Factory produces order Factory ships order Factory closes shop

60 Event Organization – Event Object Sort by Object: Customer places order Sales Manager approves order Customer cancels order Customer picks up order Customer does not pick up order Production schedules order Warehouse fills order Syntax, exception management? Order Events Price List Events Marketing established PL Sales manager requests PL Sales manager resquests sales report

61 Event Hierarchy Design Dialogue Conceptual Characteristics Actual navigsation structure Characteristics Most appropriate for planning phase Business Next level of resolution Business Requirements sans U/I Description of HCI as a function of user, technology, etc.

62 Event Hierarchy Customer Places order Customer places preliminary order Sales Manager confirms order Production schedules order for shipment.. Sales rep enters order header Sales rep enters request ship date Sales Mgr requests sales report Sales Mgr confirms order Production control agent requests order schedule Sales rep clicks new order… Sales rep clicks requested ship date… Sales Mgr clicks find unconfirmed orders… Sales Mgr clicks find, enter order, click save…. Agent clicks find Conceptual Business Dialogue Design

63 Information Model

64 Static Map of data required to carry out policy of each event

65 Entity: Definition (Reminder) The Importance of Keys The Entity Hierarchy Types of Keys: –A Simple Key, A Compound Key, A Hierarchic (or Composite) Key, A Foreign Key, Navigation: Relationships and Keys Exercise Overview

66 person, place, object, event, or concept entity type (entity class) entity instance Entities

67 property or characteristic of an entity candidate key--unique identifier primary key--unique ID selected multivalued attributes--have many values per instance –hobbies, dependents, skills, languages Attributes

68 association between instances of one or more entities degree of relationship –unary –binary –ternary--simultaneous relationship among 3 entities Relationships

69 Keys Candidate: Attribute that uniquely identifies each instance of an entity type Primary: Candidate key selected as identifier for entity type

70 Process Model

71 In general there are two types of models for the information systems environmentdata models and process models. IS Models

72 Typically consists of the following (in whole or in part): Functional decomposition Context-level zero diagram Data flow diagram Structure chart State transition diagram HIPO chart Pseudocode Process Model

73 Because the process model is requirements-based, it is not suitable for the data warehouse. The process model assumes that a set of known processing requirements exists, before the details of the design are established. But those assumptions do not hold for the data warehouse. Many development tools, such as CASE tools, have the same orientation and as such are not applicable to the data warehouse environment. Process Model

74 SYSTEM: Customer Accounts PROCESS NAME :Validate Customer INPUT:Customer ID PROCESS: Read customer record to see if customer number is valid OUTPUT:True or False Condition HIPO CHARTS Hierarchy input process output chart consist of 2 parts A chart showing the hierarchy of processes similar to a structure chart For each process in part, create a diagram which details the name of the process, inputs, what the inputs are used for, the outputs

75 BeginIfWhileRepeat untilCasewhere Then Elseotherwise endendifendwhileendrepeatendcase Detailed textual description of an algorithm using keywords. Pseudocode

76 while not at end of list compare adjacent elements if second is greater than first switch them get next two elements if elements were switched repeat for entire list

77 The data model is applicable to both the existing systems environment and the data warehouse environment. Data Model

78 Data Stability Analysis Part Id Description Substitute QOH Order Unit Safety Stock Primary supplier Expediter Shipping manifest Lead time Accetable reject rate Last order date Last order amount Las delivery to Order amount Part-id Description Order unit Lead time Acceptable reject rate Shipping manifest Part-id Primary substitute Safety stock Primary supplier Expediter Part-id QOH Last order date Last order amount Last delivery to Order amount Parts Table Seldom Changes Sometimes Changes Frequently Changes

79 Logical Design Information Requirements Logical Structure Design Data Model and Implementation Constraints Physical Design Physical Storage Class Alternatives Physical Tuning Database Design

80 Data Independence Program design to be independent from the logical data structure Build into the program a monitoring mechanism that will collect statistics on how the logical data structure is being utilized by the application Program Design

81 All relationships are based absolutely on the hierarchical concept of MASTER(PARENT) &DETAIL (CHILD) DETAIL (MASTER) DETAIL MASTER Entity Hierarchy

82 ER Diagram Customer Customer Rep Is represented by Represents Order Placed Was Placed By Employee Was taken by Took Order Item Contains Was ordered on Product Request delivery of Was ordered on Product Price Retails for Is Price for

83 ER Diagram Notation Has been owned Owned Has been owned

84 from McFadden & Hoffer: Modern Database Management: 4th Edition, Benjamin/Cummings, 1994 Context Model Furniture Mfg.

85 Customer Invoice Order Product Work Order Raw Material Vendor Places Bills Fulfills Requests Ships UsesBuilds Supplies ER Model – Furniture Mfg.

86 In general there are two types of models for the information systems environmentdata models and process models. Information System Models

87 Process-oriented information Identifies which data are used by each process and how frequently the process is performed Data Models Addresses the organizations conceptual view of the database: entities, attributes, and relationships Information Requirements

88 Project Management in the Technology Environment Joseph Lewis Aguirre



91 PROJECT SCOPE MANAGEMENT 1)Initiation 2)Scope planning 3)Definition 4)Verification 5)Change control

92 PROJECT SCOPE MANAGEMENT 1)Net Present Value 2)Return On Investment 3)Payback Analysis SELECTION METHODS

93 Hardware Performance Cost Reliability Compatibility Technology Connectivity Scalability Support SoftwareSoftware Quality Flexibility Security Connectivity Language Documentation Hardware Efficiency Technology Evaluation Factors






99 Project Management Core Skills Leadership? Creativity? Initiate Plan Execute Control Close Scope Management Time Management Cost Management Quality Management Human Resources Communications Risk Management Procurement CORE SKILLSPROCESS


101 Performance Cost=f(P,T,S) SCOPE Time Cost 3C - SCOPE, TIME, COST Performance SCOPE Time Cost

102 Change Management Define Change Strategy Develop Leadership Build Commitment Deliver Business Benefits Create Change Vision Manage Performance Develop Culture Design Organization Set Up Set up Analysis Definition Transition

103 PROJECT SCOPE MANAGEMENT NET PRESENT VALUE (NPV)NET PRESENT VALUE (NPV) ->today's value of a series of future payments & income



106 VisionMissionStrategyVisionMissionStrategy Business Units Support Units Team/ Individual Cascading Scorecards Quickly Developing a Balanced Scorecard (Arcplan Info. Services, Germany)

107 Broaden revenue mix Increase customer satisfaction Develop new products Develop strategic skills Revenue mix Customer retention % Revenue from new products Skill coverage 10% Product A 40% Product B 50% Product C 95% % % % 90% Sales Promotions New Channel Marketing Frequent Buyers Club R & D Program Customer Mailing Custom Training Knowledge Library ObjectiveMeasureTargetInitiatives Learning & Growth Internal Customer Financial Performance expectation Key action programs required to achieve objectives How success will be measured and tracked What strategy must be achieved and what is critical to its success Linking Metrics

108 RESPONSIBILITY ASSIGNMENT MATRIX (RAM RAM integrates the Organization Breakdown Structure (OBS) with the Contract Work Breakdown Structure (CWBS)

109 TIME MANAGEMENT - CPM Critical Path – shortest path in which the project can be completed Activity 1Activity 3 Activity 4 Activity 2Activity 5 Activity 7 Activity 6 Activity 8 1 Day 3 Day 2 Day 4 Day 6 Day 3 Day 6 Day 4 Day 2 Day 5 Day 16 Days






115 EVA - a way to measure a projects progress, forecast its completion date and final cost, and provide schedule and budget variances along the way. Based on just 3 sets of data, it can provide consistent, numerical indicators with which you can evaluate and compare projects. EVA - INTRODUCTION

116 Budgeted Cost of Work Performed. Budgeted Cost of Work Scheduled. Actual Cost of Work Performed. FUNDAMENTAL METRICS

117 Schedule Variance (SV) Schedule Performance Index (SPI) Cost Variance (CV) Cost Performance Index (CPI) DERIVED METRICS

118 BAC - Budget At Completion - Total Original Budgeted Cost -Same as BCWS at completion EAC - Estimate At Completion – Cumulative Actuals + Estimate-To-Complete VAC - Variance At Completion – Forecast of final cost variance MORE ACRONYMS

119 SV = BCWP - BCWS -Negative means Behind Schedule SPI = BCWP / BCWS -Less than 1.00 means Behind Schedule CV = BCWP - ACWP -Negative means Over Budget CPI = BCWP / ACWP -Less than 1.00 means Over Budget EAC = BAC / CPI DOING THE MATH

120 Make 1,000 cups over 50 days Steady rate of 20 cups per day Budgeted cost per cup is $0.50 Total project budget is $500 IF LEMONS-> LEMONADE

121 At end of day 10: 150 cups have been made Total actual cost is $90 (ACWP) STATUS EOD 10

122 BCWS = $ days x 20 cups per day x.50/cup budget BCWP = $75 (Earned Value) -150 cups x.50/cup budget SV = BCWP - BCWS = -$25 SPI = BCWP / BCWS = 0.75 CV = BCWP - ACWP = $75 - $90 = -$15 CPI = BCWP / ACWP = PROJECT STATUS

123 Estimate At Completion = Cumulative Actuals + Estimate-To-Complete EAC = BAC / CPI = $500 / = $600 Variance At Completion = Forecast of final cost variance VAC = BAC - EAC = $500 - $600 = $100 (unfavorable) Schedule at Completion = 50 / SPI = 50 / 0.75 = days PROJECT FORECAST


125 PROJECT TIME MANAGEMENT 1 ) GANTT 2) Precedence Diagrams 3) PERT Charts Project schedules

126 TIME MANAGEMENT - CPM Critical Path – shortest path in which the project can be completed Activity 1Activity 3 Activity 4 Activity 2Activity 5 Activity 7 Activity 6 Activity 8 1 Day 3 Day 2 Day 4 Day 6 Day 3 Day 6 Day 4 Day 2 Day 5 Day 16 Days

127 TIME MANAGEMENT - PERT PROGRAM EVALUATION & REVIEW (problems eventually resolve themselves) - A statistical technique applied to a network schedule. Activity 1Activity 3 Activity 4 Activity 2Activity 5 Activity 7 Activity 6 Activity 8 1 Day 3 Day 2 Day 4 Day 6 Day 3 Day 6 Day 4 Day 2 Day 5 Day Average Time = (Best Case + (4 x Expected Case) + Worst Case) / 6

128 TMGT 510 Work Shop 2 Joseph Lewis Aguirre COST CONTROL

129 SCOPE & TIME MANAGEMENT Performance Cost=f(P,T,S) SCOPE TIME Cost

130 "Cheshire-Puss," she began, rather timidly, "Would you tell me, please, which way I ought to go from here?" "That depends a great deal on where you want to get to," said the cat. "I don't much care where -," said Alice. "Then it doesn't matter which way you go," said the cat. --Lewis Carroll Alice in Wonderland - WHERE ARE WE GOING?

131 Are we on schedule? Are we on cost? What are the significant variances? Why do we have variances? Who is responsible? What is the trend to date? When will we finish? What will it cost at the end? How can we control the trend? Analyze past performance………….…to help control the future PAST PRESENT FUTURE PROJECT ROAD MAP



134 COST CONTROL Tangible Cost/Benefit Intangible Cost/Benefit Direct Costs Indirect Cost Sunk Cost Learning Curve Theory Reserves

135 Cost avoidance window of opportunity PROJECT COST MANAGEMENT 15% TIME


137 Cost estimate ROM Budgetary Definitive Analogous Top/DownParametric OCOMO.html COCOMOII/ind ex.html


139 PROJECT COST MANAGEMENT WBSSCHEDULE COST ESTIMATES BUDGET 1.SW Development Code Test Document 1.SW Development Code: $10X Test: $1x Document: $0.5x $

140 PROJECT COST CONTROL Planned cost Cost to Date TIME COST Good News?

141 PROJECT COST CONTROL TASK Conceptual Design Program Specification Coding Documentation User Manual Production Debugging STATUS Complete In Process Not Yet Started 50% Complete? Apples and Oranges

142 PROJECT COST CONTROL TASK Conceptual Design Program Specification Coding Documentation User Manual Production Debugging STATUS Complete In Process Not Yet Started 50% Complete?

143 PROJECT COST CONTROL TASK Conceptual Design Program Specification Coding Documentation User Manual Production Debugging BUDGET 200 hours 300 hours 600 hours 100 hours 400 hours 500 hours 31% Complete: 660/2100 BUDGET 200 earned 300 earned 150 earned 10 earned NYS TOTAL 2,100 hours 660 earned

144 PROJECT COST CONTROL EVA = f(% Complete) Uniform Unit of Measure CONSTRUCTION Concrete (cubic yards) Forms (sq ft) Pipe (ft) Rebar (tons) Conduit (ft) MOVIE INDUSTRY Screenplay writing Set Production Filming Editing Marketing

145 PROJECT COST CONTROL Physical Work : Task: Pour 1000 cubic yards of concrete Progress: 300 done to date % complete 30% Task: Create Design drawing: 10% when preliminary study is complete 20% When draft is complete 40% First draft printed 50% First draft review 60% Second draft is complete 75% Customer review 90% Final draft is complete 100% Released for construction 50-50% Rule: 50% after its start date, 100% Finish

146 BCWS ACWP EVA (BCWP) TIME Data Date To Date Cost Variance To Date Schedule Variance BCWS: Budgeted Cost of Work Scheduled ACWP: Actual Cost of Work Performed EVA (BCWP): Budgeted Cost of Work Performed PROJECT COST CONTROL BAC (Budget at Completion) EAC (Estimate at Completion) FCST: Forecast of Remaining Work

147 PROJECT COST CONTROL Earned Value Analysis (EVA) Physical Progress (consistent) EVA = f(% Complete) Uniform Unit of Measure EARNED VALUE METHODOLOGY



150 Sigma Defective Units per Billion 3 2,700,



153 SOFTWARE QUALITY CONTROL Test Maintenance Code Design Analysis Spoilage Software Quality: Absence of spoilage

154 SOFTWARE QUALITY CONTROL Detection Rate Removal Rate Responsibility WORST BEST Tom DeMarco

155 Capability Maturity Model Capability Maturity Models ® (CMMs ® ): Capability Maturity Models ® (CMMs ® ) - 1. Initial: Few processes are defined, success a function of individual effort - 2. Repeatable: Basic processes in place to repeat earlier success - 3. Defined : Processes for engineering and management are documented Managed: Detailed metrics for software process and quality - 5. Optimizing: Peak performance

156 Capability Maturity Model Project Management Maturity Model - 1. Ad-Hoc: Few processes are defined, success a function of individual effort - 2 Abbreviated: Basic processes in place to repeat earlier success - 3. Organized: Processes for engineering and management are documented Managed: Detailed metrics for software process and quality - 5. Adaptive: Peak performance

157 Project Human Resources and Communication Management TMGT 510

158 PROJECT MANAGEMENT Leadership!!!!



161 WBSSCHEDULE COST ESTIMATES BUDGET 1.SW Development Code Test Document 1.SW Development Code: $10X Test: $1x Document: $0.5x $ Resource Loading

162 HR AND COMMUNICATION Values GOALS STRUCTURE CLIMATE ENVIRONMENT MarketplaceOther Teams Culture Competition Pressures ClarityCommitment Reward System Reporting Relationships Feedback System Behavior Norm Decision Making Competition Enthusiasm Stress Trust Involvement Flexibility CollaborationMission Philosophy Accountability

163 HR AND COMMUNICATION MANAGING DIFFICULT PEOPLE 21. Bulls -- come out charging, attacking the other person, perhaps out of frustration 22. Snakes: Hides and attacks when least expected. Trying to maintain order 21. Cheetahs – Burst in sudden temper displays 22. Macaw Parrots - Talk and chatter, sometimes sense, sometimes none-sense 23. Ostriches - handle difficult situations in non-committal way 24. Cubs – humorous, friendly and cooperative. Do not reveal what they really think, leads them to make unrealistic commitments. 25. Hyenas – They lack faith on other people and wilt them with sarcasm and doubts. 26. Rhinoceroses – strong and knowledgeable whose know-it-all attitudes are overbearing. 27. Peacocks -- pretender they are experts, but arent. 28. Turkeys – cannot make a decision. Are nice, but hope situations resolve themselves. 29. Beavers – hardworking and proficient, but arouse other employees jealousy and suspicion.

164 HR AND COMMUNICATION IntentNeedCategory Get it done rightControlRuler Get it done rightAccuracyAnalyzer Get AlongApprovalRelater Get AppreciatedAttentionEntertainer Relater Entertainer AnalyzerRuler PassiveAggressive Task Oriented People Oriented Window on the World of Difficult People


166 User Involvement19% Exectuive Management Support16% Clear Requirements15% Proper Planning11% Realistic Expectations10% Smaller Project Milestones 9% Competent Staff 8% Ownership 6% Clear Vision and Objectives 3% Hardworking, Focus Staff 3% PROJECT RISK MANAGEMENT

167 · Risk is inherent to every project. Risk is a fundamental ingredient of opportunity and is a part of every project. It is the possibility, not the certainty, of bearing a loss. · Risk is neither intrinsically good nor bad. Risk is not something to avoid, especially because it is inherent to every project. Every risk identified is a potential opportunity. Risk is not something to fear, but something to manage. Successful teams deal with risk by recognizing and minimizing uncertainty and by proactively addressing each identified risk. PROJECT RISK MANAGEMENT RISK CHARACTERISTICS

168 Assess risks continuously throughout the project life cycle. Ongoing risk management of a project introduces a degree of resilience to change. Use risk-based decision-making. Requires that all decisions be made within the context of their risk. The teams actions are prioritized in relationship to the status of the riskthe highest risk items should be dealt with first and incorporated into the project plan Establish some level of formality. Requires a process that is understood and used by the team. not structured, it will not be useful. Cover all key people and processes. The team must ensure that the key persons and processes are covered, or it is likely that significant risks will be missed. Treat risk identification as a positive. Team members must be willing to identify risk without fear of punishment or criticism. PROJECT RISK MANAGEMENT RISK MANAGEMENT PRINCIPLES

169 PROJECT RISK MANAGEMENT Risk Management Process

170 Inclusive contribution. Risk identification is best accomplished as a group effort in order to fully explore the potential risks associated with the readiness effort. · Premortem. Encourages the project team and any other participants to use their intuition and imagination by looking into the future and predicting what might make the project fail. Negative thinking. Applying logical but negative thinking to both the project management strategy and the rationale for sponsorship seeks to identify oversights, alternatives, conflicts, and new possibilities. Interdependencies of risks. When developing a strategy to manage risk, the readiness team should examine the relationships and dependencies among risks. A strategy to reduce risk in one area can increase risk in another. For example, a decision to reduce the risk of a lengthy project by adding team members will increase the risk of poor team coordination and miscommunication. Iterative process. Because circumstances and information may change throughout the course of the project, it is wise to discuss risk mitigation plans and history, and identify new risks with the completion of each milestone. PROJECT RISK MANAGEMENT IDENTIFICATION

171 Economic and regulatory risks. May prevent the project from delivering the expected benefits Product, market, and competitive risks. Related to the current or future issues that may arise in the marketplace. Technological risks. Include not achieving project goals because of technological failure, inadequacy, or lack of readiness. Organizational risks. When not present, minimize the return on investment of a project. These missing factors might include: a clear statement of requirements, realistic expectations, stakeholder commitment (lack of vendor or user support), executive sponsorship, project management skills and experience, communication planning and execution, rewards and recognition alignment, cultural alignment, training and education, organizational structure alignment, etc. PROJECT RISK MANAGEMENT RISK TYPES

172 Leadership, Represents an organizations intent or capability to create change. Culture, Represents the set of beliefs, behaviors, and assumptions that guide peoples day-to-day activities within the organization. Individuals, Represents the employees competence, capacity, and resilience for dealing successfully with the IT change; Business Process, Represents the organizations ability to execute its mission in delivering products and services to its target market or audience. Solution Development Process, Represents the organizations ability to develop an IT solution to address specific business requirements. Operational Process, Represents the organizations capability of maximizing the operations of its IT plans. Hardware, Represents the most tangible product of a technology change. Software, the applications designed to provide capabilities at the core of the business objectives. PROJECT RISK MANAGEMENT ORGANIZATIONAL READINESS RISKS



175 PROJECT PROCUREMENT MANAGEMENT Buyer Risk Seller Risk Firm Fixed Price Fixed Price + Incentive Cost + Incentive Cost + Fixed Fee Cost + % Cost

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