1. Software Development Problems Range of Intervention Theory Prevention, Treatment and Maintenance Planning, Development and Use Cost of Intervention

2. Case Discussion Concordia Castings Company

3. Some Basic Problems Incomplete, unclear or inadequate requirements Frequent changes to specification External sources (vendor, subcontractors, etc) Difficulties in concluding the project Frequent changes in development personnel

4. Some Basic Problems (management errors) Poor estimates Budget, Schedule, development resources, technical estimates Inadequate tracking and supervision Uncontrolled changes Poor testing procedures Poor development documentation

5. Risk Foresight is an excellent PM quality Ability to anticipate problem What is Risk? An uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives. PMI (project management institute)

6. Risk Analysis Risk analysis includes the estimating its probability, evaluating its impact and preparing for solution in advance. Risk analysis is not free Project size/complexity vs. risk Theory Software development would never be deterministic and vice versa

7. Risk and system complexity Risk Technical Cost Schedule System Complexity

8. Successful Risk Management SEI summaries successful risk management as follows A successful risk management practice is one which risks are continuously identified and analyzed relative importance. Risks are mitigated, tracked, and controlled to effectively use program resources. Problems are prevented before they occur and personnel consciously focus on what could affect product quality and schedules

9. Common risk factors Risk factors Lack of top management commitment to the project Failure to gain user commitment Misunderstanding the requirement Lack of adequate user involvement Failure to manage end user expectation Changing scope and objectives Lack of required knowledge/skill in the project personnel New technology Insufficient / inappropriate staffing Conflict between user departments

10. Anticipating Problems Step One Do a review of all project technical and administrative plans Project development plan Requirement specifications Design specification Personnel External sources Etc Step two Compile a list of all anticipated problems and describe the potential effect of each problem on the project.

11. Problem and Description Late delivery of hardware Communication and Networks problem Staff … …. If vendor don’t deliver the system by date the integration will be delayed and it will have effect on cost and schedule. Too slow to support the new system upgrade must be completed before testing Problem with so and so with respect to bla bla. Especially the resources from other the “side”

12. Risk Analysis Stage Evaluation of the anticipated risk Estimate the probability that the risk will occur Estimate the impact of the problem on the project Attribute a measure of severity to the problem Contingency plan

13. Calculating severity ProblemExpectationImpactSeverity Staff 6530 Late delivery of hardware 5840 Communication and Networks problem 5525 10

14. Analyzing Project severity = expectation (1-10) * impact (1-10) When should risk analysis be formed? Is not a time activity Periodic update and reviewed ProblemDescriptionSeverityContingency plan Tracker

15. Implementing Contingency Plan The anticipated problem occurred or become imminent The contingency plan requires advance preparation

16. Case Discussion Timberjack Parts: Package Software selection Project

17. Note Luck as a key factor in PM Prevention better than cure But you have to look for it. Know where to look and What to look for Do a risk analysis periodically What to do Complexity and risk analysis There is always a price tag