Project Management

for beginners
Certification Course by
Dept of Computing

By
Asad Ur Rehman
Assistant Professor
asad.rehman@hamdard.edu.pk

Hamdard University
 Trainer’s Profile
2

 Over 24 years of IT-industry experience.

 Wants to contribute in improving quality of education in Pakistan.
 Certified Business Analyst Professional (CBAP) by International
Institute of Business Analysis.
 Certified SW Quality Professional (CSQP) from PIQC.
 Worked as Chief Operating Officer - Plexus (Pvt) Ltd.
 Worked as Chief Technology Officer - Feditec (Pvt) Ltd.
 Worked as Software Consultant for Kolson Industries.
 Some Projects: HBFC, Port Qasim, HUBCO, SCB, Citi Bank, UBL-
Funds, SBP (research dept), Pakland Cement, Security Printing Press.

Project Management
 Participant’s Introduction
3

 Name
 Organization
 Designation
 Education
 Experience

 Expectations from this Course

Project Management
 Training plan
4

1 Introduction
2 Project Life Cycle (Process Groups)
3 Project Scope Management
4 Project Time Management
5 Project Cost Management

6 Project Communication Management

7 Project Risk Management

8 Project Stakeholders Management
Project Management
 Summary of Project Management
5

Project Management

Planning Doing
Part Part
Real problem Team (need & emotions)
Understand Scope clearly - Organizing
Team (Size & Capability) - Command
Finance (money needed & when) - Control
Equipment

Successful
Project

Project Management
6 Introduction
 Introduction
Bird eye view of this section
7

 Why Project Fails ?

 Historical perspective of Managing Project

 Will see difference between Project and

Operational work

 Will see basics of Management

 Project Management definition by PMI and its 10

knowledge areas
Project Management
 Introduction
Why Project fail ?
8

Any idea why

project fails ?

Project Management
 Introduction
Why Project fail ?
9

 Weak business case (fashion, not need)

 Lack of senior management commitment
 Absence of user involvement

 Lack of defined, clear, or concise requirements

 Inadequate project planning

 Budget
 Schedule
 Scope, etc

Project Management
10 Historical Perspective of Managing Project
 Introduction
Historical Perspective of Managing Project
11

 Great Pyramids of Egypt

 (2,550 BC)

 Great Wall of China (206 BC)

 Exceptional planning
 Coordination
 Allocation
 Hundreds of thousands of workers
 Paid and Slave labor

Project Management
 Introduction
Historical Perspective of Managing Project
12

 Taj Mahal

 Apollo 11 (Project)
 first human landed on the Moon

Project Management
 Introduction
Historical Perspective of Managing Project
13

 History tells us that humans have managed large and

complex projects since the start of civilization.

 Similar basic elements of project management:

 Managing resources
 Maintaining a schedule
 Coordinating different groups
 Mitigating project risk

Project Management
 Introduction
Historical Perspective of Managing Project
14

 Sher Shah Suri was a great project manager.

 He built the famous Grant Trunk Road, the first

highway connecting Peshawar in Pakistan to Kolkata
in India (2600 km later extended to Kabul).

 He ruled for very just five years (1539-1545).

 Road helped Sher Shah in introducing the first

organized postal system in the Indian sub-continent
and at that time the best in the world.

Project Management
 Historical Perspective of Managing Project
Sher Shah Suri (1486 – 1545)
15

To facilitate the postal Kabul

runners and the travelers,
small inns, called “sarai”
were constructed after
every 20 miles with
separate places of worship
for Hindus and Muslims.

These inns acted as halting

places of government
officials moving from one
place to another. Kolkata

Project Management
 Introduction
Historical Perspective of Managing Project
16

 It was 1950s that organizations started to systematically

apply project management tools and techniques to complex
projects.

 As a discipline, Project Management developed from several

fields of application including construction, engineering, and
defense activity.

 Henry Gantt, called the father of planning and control

techniques who is famous for his use of the Gantt chart as a
project management tool

Project Management
17

Concept of Project

Project Management
 Introduction

Concept of Project
18

 What is a project ?
 It seems that everything we do is a project.
 A project is different from day-to-day business.
 Ongoing work effort is generally a repetitive
process because it follows an organization’s
existing procedures.
 Any ongoing operational work is NOT a project.

Project Management
 Introduction

Concept of Project
19

 Any operational work is NOT a project.

 Weekly grocery shopping is not a project.

 Production of cars at automobile factory is not a

project

 Conducting classes at University is not a project

Project Management
 Introduction
It is a Project
20

 Any non-operational activity

 A temporary endeavor undertaken to create a
unique product or service
 Any activity with a start and a finish
 A unique set of co-ordinated activities,
 Undertaken by team
 To meet specific performance objectives
 Within defined schedule
 Cost and performance parameters

Project Management
 Project – definition
21

 Project is temporary sequence of connected

activities having unique goal or purpose and that
must be completed within specific time, and budget,
and according to specification.

Another popular definition is

 Planned set of interrelated tasks to be executed

over a fixed period and within certain cost and

other limitations.
Project Management
22

Identify Project vs Operational Work

Project Management
 Identify Project vs Operational Work
23

Building Taj Mahal

is project or operational work ?

- Unique objective
- Start & Finish
- Team efforts
- Specific Time
- Budgeted money

Project Management
 Identify Project vs Operational Work
24

Organizing Project Poster at HIET

is project or operational work ?

- Unique objective
- Start & Finish
- Team efforts
- Specific Time
- Budgeted money

Project Management
 Identify Project vs Operational Work
25

Producing cars by
is project or operational work ?

- Unique objective
- Start & Finish
- Team efforts
- Specific Time
- Budgeted money

Project Management
 Introduction
PMI Definition
26

Knowledge - find scope,

Project Management efforts estimation, activities
planning
is “the application of knowledge, Skills - communication,
people handling, delegation
skills, tools and techniques to
Tools - MS-Project, word
project activities to meet the project WBS,
requirements” Techniques - earned-value,
Project-progress, Interview
(PMBOK by PMI)
Project requirements -
objectives / problem

Project Management
 Project Management Knowledge Areas
27

1. Project Integration Management

2. Project Scope Management
3. Project Time Management
4. Project Cost Management
5. Project Quality Management
6. Project Human Resource Management
7. Project Communication Management
8. Project Risk Management
9. Project Procurement Management
10. Project Stakeholders Management

Project Management
28 Management Process
 Management Process
29

Usually project does NOT fail

due to technical reason.

Project mostly fail due to

Management problem.

Project Management
 Management Process
30

 Management activities are those that

complement the process of development in order
to perform development activities smoothly and
effectively.

 What kind of team is required for this project?

 What is the duration of each (WBS) activity?
 How to control activities so that project finish on time?
 How to motivate project team?

Project Management
 Management Process
31

 Management in organizations is the function that

coordinates the efforts of people to accomplish
goals & objectives using limited resources
efficiently and effectively.

 Management is defined as follows

1) Planning
2) Organizing
3) Command / direct
4) Controlling

Project Management
 Management Process
32

Organizing

Goal Allocating resource

Strategy Who will do what
Time Planning Directing
Money Commanding Team &
Schedule motivation
Review and monitoring
evaluating progress

Controlling

Project Management
 Management Process

1- Planning
33

 PM first needs to decide what tasks are necessary to

perform to accomplish the goal.
 Steps may include
 Specifications, and design,
 Construction and testing

 These necessary steps are developed into a plan.

 What is the boundaries of scope
 Who are the people (skill-set of team)
 What are agreed deliverable
 Time needed etc.

 When the plan is in place, the PM can follow this plan to

accomplish the goal.

Project Management
 Management Process

2- Organizing
34

 Organizing involves designating tasks and

responsibilities to project-team with the specific
skill sets needed to complete the tasks.

 Assigning work and granting authority are two

important elements of organizing (RACI matrix).
 Who will do what?

 Organizational structure is the foundation; without

this structure, the execution of project becomes
difficult and unsuccessful.
Project Management
 Management Process

2- Organizing - technique
35

2- RACI Matrix
 Team members are identified with
variety of roles for various activities in
a project

 [R]esponsible does the work

 [A]ccountable is the decision
maker (only one)
 [C]onsulted must be consulted
prior to the work and gives input
 [I]nformed means that they must
be notified of the outcome

Project Management
 Management Process

2- Organizing – Example
36

 Business Analyst will take software

Requirement
 Asad and Jawwad

 Development will be preformed by

 Abubabar, Zahid, Saleem, etc

 Testing Team
 Habib, Arsalan

Project Management
 Management Process

3 – Commanding / directing
37

 Once role and responsibilities are defined

based for the available resource, you need to
direct the team members what each individual
has to do and how.
 Role has to be conveyed
 Process must be defined
 Expectations or performance criteria
 Regular feedback on individual performance

Project Management
 Management Process

3 – Commanding / directing - Example

38

 Role has to be conveyed

 BA = Asad and Jawwad
 Development team =
 Teat Team =
 Process must be defined
 Will use Scrum process fro this project
 Requirement will face to face (no Skype)
 Expectations or performance criteria
 BA (requirement should change > 3 –times)
 BA (use the finalize template for SRS)

Project Management
 Management Process

4 - Controlling
39

 Control is an important function because it helps to

check the errors and to take the corrective action so
that deviation from standards are minimized.

 Control of an undertaking consists of seeing that

everything is being carried out . .
 in accordance with the plan which has been adopted
 the orders/instructions which have been given
 and the rules which have been laid down

Project Management
 Training Plan
40

1 Introduction
2 Project Life Cycle (Process Group)
3 Project Scope Management
4 Project Time Management
5 Project Cost Management Knowledge
Areas
6 Project Communication Management

7 Project Risk Management

8 Project Stakeholders Management
Project Management
41 Project Life Cycle (Process Groups)
 Project Life Cycle (Process Groups)
42

Project management processes is a logical

sequence of five activities:

1. Initiating Process
2. Planning Process
Re-Plan
3. Executing Process
4. Monitoring/Controlling Process
5. Closing Process

Project Management
 Project Life Cycle
1- Initiation Process (Why)
43

 For a small project, it may consist of a small discussion and a

verbal agreement.
 For larger projects, a formal review and decision by other
members of organization’s and senior management team.
 Decision makers consider the following two questions when
deciding whether to move ahead with a project:
 Should we do it?
• Are the benefits we expect to achieve worth the costs we will have to
pay?
• Are there better ways to approach the issue?
 Can we do it?
• Is the project technically feasible?
• Are the required resources available?
Project Management
 Project Life Cycle
1- Initiation Process
44

Performing cost-benefit Analysis

 Cost-benefit analysis is a comparative assessment of all the

benefits you anticipate from your project and all the costs
to introduce the project, perform it, and support the
changes resulting from it.

 This analyses help you to

 Decide whether to undertake a project or not.
 Frame appropriate project objectives.
 Develop appropriate measures of project success.
 Prepare estimates of the resources required to perform the
project work.

Project Management
 Project Life Cycle
1- Initiation Process
45

Benefits
 Quantitative and qualitative
 Benefits may include
 improved staff morale
 increased feasibility to respond to change
 improved customer satisfaction
 reduced exposure to risk

Costs
 Estimate capital expenditures
 Costs of developing and implementing change
 Opportunity costs of not investing in other options
 Costs related to changing the work and practices of the organisation
 Total cost of ownership
Project Management
 Project Life Cycle
1- Initiation Process
46

 At the completion of this phase

 Project is officially authorized to begin
 Business case may identify – why
 Project Manger is identified and given approval to
use resources
 Project Charter is developed

Project Management
 Project Life Cycle
1- Initiation Process
47

 Project Charter
 Project purpose or justification
 Project objectives /Goal
 Related success criteria
 High level requirements (project description)
 Summary budget and schedule
 Stakeholder list
 Assigned PM responsibility and authority
 Sponsor authority and project funding
Project Management
 Project Life Cycle
2- Planning Process
48

Considering while planning

 Overview of the reasons for your project

 Detailed description of intended results (what)
 List of all constraints the project must address
 List of all assumptions related to the project
 List of all required work (features/functionality)
 Defined who will be involved - roles (RACI chart) for
each individual in project team
 Detailed project schedule of activities (when)

Project Management
 Project Life Cycle
2- Planning Process
49

Considering while planning

 Identify all possible Stakeholders

 Requirements of Project Team (Size their skills and
capabilities).
 A description of how you plan to manage any
significant risks and uncertainties.
 Plans for project communications (how to keep
everyone up-to-date in your project)

 Plans for ensuring project quality (how to track progress

and maintain control of your project)
Project Management
 Project Life Cycle
2- Planning Process
50

 Decomposing Solution-scope (WBS)

 Project schedule for all activities and
 Cost estimate of each task

 Satisfies the project sponsor, end-user, and business

requirements.
 Functionality as it was intended.
 Can be produced within acceptable quality
standards.
 Can be produced within time and budget constraints.

Project Management
 Project Life Cycle
3- Execution Process
51

 After you have developed project-plan and set

your appropriate project baselines.
 It is time to get to work and start executing
your plan.

 Execution of the project will have two things

 Preparing
 Performing

Project Management
 Project Life Cycle
3- Execution Process – Preparing
52

 Assigning people to all project roles/responsibility.

 Giving and explaining tasks to all team members

 Defining how the team will perform its essential functions:

 How team will handle routine communications
 make different project decisions
 and resolve conflicts

Project Management
 Project Life Cycle
3- Execution Process – Preparing
53

 Setting up necessary tracking systems:

 Track schedules
 Work effort
 Expenditures

 Announcing the project to the organization: Let the

project audiences know that your project exists
 what it will produce
 when it will begin and end

Project Management
 Project Life Cycle
3- Execution Process – Preparing
54

 Communication Plan
 Delivering method,
 Format & level of details
 Timeframe and frequency of communication
 Individuals providing
• Compiling and
• Distributing information
 Constraints due to regulations or organizational
policies
Project Management
 Project Life Cycle
3- Execution Process – Preforming
55

 Doing the tasks:

 Perform the work that is in your plan.

 Managing the team:

 Assign tasks,
 review results
 resolve problems

 Developing the team:

 Provide needed training and mentoring to improve team
members’ skills.
 Sharing information:
 Distribute information to appropriate project audiences.
Project Management
 Project Life Cycle
4- Monitoring & Controlling Process
56

 Measuring progress toward the project

objectives

 Monitoring deviation from the plan

 Taking corrective action to match progress

with the plan

Project Management
 Project Life Cycle
4- Monitoring & Controlling Process
57

 Measuring the ongoing project activities

• where are we now

 Monitoring the project variables (cost, effort, scope, etc.)

against the project management plan and the project
performance baseline (where we should be).
 Identify corrective actions to address issues and risks
properly (how can we get on track again).
 Influencing the factors that could circumvent integrated
change control so only approved changes are
implemented.
Project Management
 Project Life Cycle
5- Closure Process
58

 Formal acceptance of the work and creation of

closing documents.

 Project close:
 Finalize all activities across all of the process groups to
formally close the project or a project phase.
 Document the lesson learned through this project
 Archived of all relevant documents.
 Team members assessment & release of project resources
 Celebrate Success with project team
Project Management
 Processes Groups
Knowledge
Initiating Planning Executing Monitoring & Closing
Areas Control
Integration Project Charter Develop Project Direct & Manage Project Monitor and control Project Closing 6
Management Plan project work
Perform Integrated
change control
5
Scope Collect Requirement Verify Scope
Define Scope Control Scope
Create WBS

Time Define Activates Control Schedule 6

Sequence Activities
Estimate Activity
Resources
Estimate Activity Durations
Develop Schedule 3
Cost Estimate Cost Control Cost
Estimate Budget
3
Quality Plan Quality Quality Assurance Perform Quality Control

HR Develop Human Resource Acquire Project Team

Plan Develop Project Team 4
Manage Project Team

Communi- Identify Plan Communication Distribute Information Report Performance

Stakeholders Manage Stakeholder 5
cation Expectations

Risk Plan Risk Management Risk Monitoring &

Identify Risks Control 6
Qualitative Analysis
Quantitative Analysis
Plan Risk Reponses
4
Procure- Plan Procurement Conduct Procurement Administer Procurement Close
Procurements
ment 2 20 8 8 2
 Training Plan
60

1 Introduction
2 Project Life Cycle
3 Project Scope Management
4 Project Time Management
5 Project Cost Management

6 Project Risk Management

7 Project Communication Management

8 Project Stakeholders Management

Project Management
61 Project Scope Management
Ch-5 PMBOK
 5- Project Scope Management
62

PMBOK v5
Pg – 104 Project Scope Management Knowledge area

5.1 Plan Scope Management

5.2 Collect Requirement
5.3 Define Scope
5.4 Create WBS Input
5.5 Validate Scope Tools & Technique
Outputs
5.6 Control Scope

Project Management
 Project Scope Management
63

1) Collect Requirement: Find the actual need from the desire of

stakeholders.
2) Define Scope: Reviewing the project charter and preliminary
scope statement and adding more information as requirements
are developed and change requests are approved.
3) Create WBS: Subdividing the major project deliverables into
smaller, more manageable components.
4) Verification Scope : Formalizing acceptance of the project
scope.
5) Control Scope : Controlling changes to project scope.

Project Management
 Cartoon shown by
Trainers in PM course
 Project Scope Management
5.1- Collect Requirement
65

 This process is concerned with assessing,

documenting, and managing stakeholder needs to
meet project objectives.

 All requirements should be gathered at the start

because it is costly to make changes as the project
progresses.

 Gathering requirements from all stakeholders will

also ensure that their opinions are taken into
consideration, which will lead to higher rates of
project acceptance.
Project Management
 Project Scope Management
5.1- Collect Requirement
66

Project Management
 Project Scope Management
5.1- Collect Requirement
67

 Requirement are what stakeholders need from a project.

 Work should not be include in a project just because some
one wants it.
 Requirement should relates to solving problems or
achieving project objectives.

 Requirement Collection Techniques

 Interviewing
 Focus Group
 Facilitated Workshops
 Brainstorming
 Questionnaire
 Prototypes
Project Management
 Project Scope Management
5.1- Collect Requirement
68

 Requirement Documentation describe how individual

requirements meet business need for the project.

 May start at high level and may progressively become

more detailed

 Before getting baseline they must be

 Unambiguous
 Traceable
 Complete
 Consistent
 Acceptable to key stakeholders
Project Management
 Project Scope Management
5.2- Define Scope
69

 Clarifying what you are trying to accomplish – scope

 Projects are created for a reason

 Someone identifies a need/problem
 Then a project is initiate to address that need/problem

 How well the project ultimately addresses that need

defines the project’s success or failure.

Project Management
 Project Scope Management
5.2- Define Scope
70

Project Management
 Project Scope Management
5.2- Define Scope
71

 Scope is the starting point in the project.

 Once scope is agreed only than Project Manager
estimate efforts required to complete this project.

 If scope is not agreed (or understood) by all

stakeholders, we will definitely have problem in future.

 Efforts are estimated and schedule is developed for

project, depending upon team size.
 If my need is fulfilled only than project is a success.

Project Management
 Project Scope Management
5.2- Define Scope
72

Scope = 2 story house on 120 Yards

Scope

budget

Project Management
 Project Scope Management
5.2- Define Scope
73

Scope = 2 story house on 120 Yards

Scope = 10 story building

Scope

budget

Cannot manage schedule and

budget if scope is out of control
Project Management
 Project Scope Management
5.2- Define Scope
74

 Project Scope Statement should includes

 Project scope description
 Project acceptance criteria
 Project deliverable
 Project exclusions
 Project constraints
 Project assumptions

Project Management
 Project Scope Management
Different Perspective
75

Project Management
 Project Scope Management
Different Perspective
76

Project Management
 Project Scope Management
Different Perspective
77

 Is equipped with internal

I need a equipment
combustion engine

Define project scope  Is available in yellow & black

colour
 It has three wheels
 Has 3 speed forward and 3 speed
reverse
 Levels uneven surface nicely and
quickly

Project Management
 Project Scope Management
Define Scope – Example
78

Amazon is giving me requirement to develop a virtual book-

store
Requirement
Books Entry details
Book Selection

Payment Requirement
Payment gateway details

Transportation Delivery Requirement

Service details

Project Management
 Project Scope Management
5.2- Define Scope
79
Project Scope should include the following information:
 Justification: business need to be addresses, the scope of work to
be performed, and how it will affect by other related activities
 Objectives: The products, services, and/or results your project will
produce (deliverables)
 Product scope description: Features and functions of the products,
services, project will produce
 Product acceptance criteria: Process and criteria for accepting
completed products, services, or results
 Constraints: Restrictions that limit what you can achieve, how and
when you can achieve it, and how much achieving it can cost
 Assumptions: Statements about how you will address
Project Management
 Project Scope Management
5.2- Defining Project Scope
80

Think of Scope Statement, when viewed together with the

other components of your project plan, as a binding
agreement.
 Project team commit to producing certain results.
• Project’s requesters commit that they will consider project 100
percent successful if you produce these results.

 Project team identify all restrictions regarding approach to the

work and what you need to support your work.
• Project’s requesters agree that there are no restrictions other than
the ones you have identified and that they will provide you the
support you declare you need.
 Project team identify all assumptions you made when
agreeing to the terms of your Scope Statement.
Project Management
 Project Scope Management
5.3- Create WBS
81

 Create Work Breakdown Structure is the process of

subdividing project deliverable and project work into
smaller, more manageable component.

 WBS is a deliverable oriented decomposition of the

work to be executed by the project team to accomplish
the project objectives

 Top-down & Bottom up both approach can use to

decompose our work into smaller pieces called work
packages.
Project Management
 Project Scope Management
5.3- Create WBS
82

 Break tasks into pieces that form 4-40 hours worth of

efforts.
 No task should be more then 80 hours of efforts
 Duration should not exceed 10-days (2 weeks) nor be
less then one-day.

 Small enough so each task can be developed by an

individual or small team in a short period of time

 Use what make sense on your project.

Project Management
 Project Scope Management
5.3- Create WBS
83

Project Management
 Project Scope Management
5.3- Create WBS – Example
84

Renovation of
House 1.0

Painting Work Electrical work Repair work

1.1 1.2 1.3

Paint & Brush Scraping Raw Material Vendor selection

1.1.1 1.1.2 1.2.1 1.2.2

Project Management
 Project Scope Management
5.3- Create WBS – Example
85

Develop your ERP

OpenERP Enterprise Modules OpenERP Logistics Management

• Sales • Warehouse Management
• Purchase • Shipping Management
• Services Management • Manufacturing
• Invoicing • Quality & Repairs
• Point of Sales • Products and pricelists

• OpenERP Human Resources OpenERP Accounting & Finance Modules

Management (HRM) Apps • Accounting
• Expenses • Analytic Accounting
• Skills Management • Budgets
• Holidays • Payments Management
• Attendances • Asset Management
• Bank interfaces
Project Management
 Project Scope Management
5.3- Create WBS – Example
86

Level-1 Develop your ERP

86

Level-2 Finance Sales & Distribution Purchase

Level-3 Sales Forecasting Billing / Cash Management Promotions (schemes)

Project Management
 Project Scope Management
5.3- Create WBS – Example
87

Level-1 Develop ERP

87

Level-2 Sales & Distribution

Level-3 Sales Forecasting Billing / Cash Management Promotions (schemes)

Level-4 Requirement Design Development Test Integration

4-meetings Dates, resource Taks-1 Dates, resource

Documentation Taks-2
Analysis Dates, resource Taks-3
Level-5
Specification
Validation

Project Management
 Project Scope Management
5.3- WBS Terminologies
88

 Code of Account
 Uniquely identifies

 Work Packages
 A deliverable at the lowest level of the WBS

 WBS Dictionary
 A number identifier
 Released control a/c (for cost)
 A statement of the work to be done
 Who is responsible for doing the work
 Any schedule milestones

Project Management
 Project Scope Management
5.4- Validate Scope
89

 Differences in perception of what was meant when

the client specified project deliverables can lead to
vastly different understandings of what exactly is
required.

 Not only the scope be must agreed up front, it needs

to be constantly monitored throughout the project to
avoid it changing in a way that will break the budget
or timescale, or will violate stakeholder’s expectations
of the final deliverable.
Project Management
 Project Scope Management
5.4- Validate Scope
90

 Validate Scope is the process of formalizing

acceptance of the completed project
deliverables.

 The key benefit of this process is that it brings

objectivity to the acceptance process and
increases the chance of final product, service,
or result acceptance by validating each
deliverable.

Project Management
 Project Scope Management
5.4- Validate Scope
91

Project Management
 Project Scope Management
5.4- Validate Scope
92

Scope must Exceeding Overrun Violate

be constantly Project Project Stakeholders
monitored to Budget Timescale Expectations
avoid:

Define things that are out of scope as well as those things

that are in the scope.
It cannot be assumed that everyone understands where the
scope of the project ends unless they are specifically told .
Project Management
 Project Scope Management
5.5- Control Scope
93

 Scope control involves controlling changes to the project

scope.

 Goals of scope control are to:

 Influence the factors that cause scope changes.
 Ensure changes are processed according to procedures
developed as part of integrated change control.
 Manage changes when they occur.

 Variance is the difference between . .

 planned and actual performance.

Project Management
 Project Scope Management
5.5- Control Scope
94

 Control Scope is the process of monitoring the

status of the project and product scope and
managing changes to the scope baseline.

 The key benefit of this process is that it allows

the scope baseline to be maintained
throughout the project.

Project Management
 Project Scope Management
5.5- Control Scope
95

Project Management
 Project Scope Management
5.5- Control Scope
96

 Change Control System

 Documentation, tracking, and
 approvals required to change project scope

 Configuration Management System

 Documentation, tracking, and
 approvals required to change product scope

 Management by Objectives (MBO)

 Establish unambiguous and realistic Project objectives
 Periodically evaluate if objectives are being met

Project Management
 Project Scope Management
5.5 - Control Scope
97

If we not manage our scope then ?

Project Management
 Practice Exercise
98

Practice
Exercise # 01

Project Management
 Training Plan
99

1 Introduction
2 Project Life Cycle
3 Project Scope Management
4 Project Time Management
5 Project Cost Management

6 Project Risk Management

7 Project Communication Management

8 Project Stakeholders Management

Project Management
100 Project Time Management
Ch-6 PMBOK

You finalize the scope

Now will see how long will it take
 Project Time Management
101

 When you first receive project assignment, you usually

have no idea how long it will take to complete.

 Initial reactions tend to be based more on fear rather

than on facts, especially when the project is complex.

 To develop a more realistic estimate of how long

project will take, we need an organized approach that
clarifies
 How we plan to perform your project’s activities (approach)
 What schedules are possible
 How we will meet deadlines that initially appear unrealistic

Project Management
 Project Time Management
102

To determine the amount of time we need for any

project, we have to determine the following two
pieces of information:
Duration: How long each individual activity takes
Sequence: Order in which you perform the activities

Requirement Design Development

17 Days 06 Days 22 Days

Project Management
 Example of 10 activities Project
103

You have a project consisting of 10-activities, each of which

takes one week to complete.
How long will it take you to complete your project?

1) You may finish the project in one week if you can perform all ten
activities at the same time and have the resources to do so.

2) You may take ten weeks if you have to do the activities one at a
time in sequential order. Actvity-1 Actvity-2 Actvity-3 Actvity-10

3) Or you may take between one and ten weeks if you have to do
some, but not all, activities in sequence.
Project Management
 Project Plan & Schedule
104

 PM’s objective is to define all tasks:

• build a schedule that depicts their interdependencies
• identify the tasks that are critical in the schedule
• then track their progress to ensure that delay is
recognized

 To accomplish this:
• PM must have a project schedule that has been defined
• that enables the PM to monitor progress and control
the project

Project Management
 Project Plan & Schedule
105

 Software project scheduling is an activity

• that distributes estimated effort across the planned
project duration
• by allocating the effort to specific software engineering
tasks (or step).

 Scheduling for software engineering projects can

be viewed from two different perspectives.
• Plan-Driven
• Change-Driven

Project Management
106

Developing Project Schedule

Project Management
 Developing Project schedule
107

 Scheduling is not an exact process. It is . .

• Partly estimation
• Partly prediction
• Partly educated guessing

 Because of the uncertainty involved, the schedule is

reviewed regularly, and it is often revised while the
project is in progress.

 Schedule transforms the project from a vision to a time-

based activities.

Project Management
 Developing Project schedule
108

 Schedule provide a basis for you to monitor and control

project activities.

 Schedule provide a basis to track project progress.

 Schedule help you determine how best to allocate

resources so you can achieve the project goal.

 Schedule help you assess how time delays will impact

the project.

Project Management
 Developing Project schedule
109

 Project schedule provides graphical representation of

• Predicted task and milestones
• Dependencies and resource requirement
• Task duration and deadlines

 Project schedule should be defiled enough to show

• Each WBS task to be performed
• Name of the person responsible for completing the task
• Start and end of each task
• Expected duration of the task

Project Management
 Developing Project schedule
110

Project’s master schedule interrelates all

the task on a common time scale

Project (master) Plan

Requirement Development
Test Plan Release Plan
Plan Plan

Elicitation Documenting Validation

Meeting-1 Validation Meeting

Specification Document revision
Meeting-2
Meeting-3 Sign-off
Analysis
Project Management
 Plan for each activity
111

Level-1 Develop ERP

1 2 3 4
Level-2 Inventory Sales & Distribution Finance Purchase

2a 2b 2c
Level-3 Sales Forecasting Billing / Cash Management Promotions (schemes)

2a-1 2a-2 2a-3 2a-4

Level-4 Requirement Design Development Test Integration

4-meetings
Task-1 Dates, resource
Documentation
Task-2 Dates, resource
Analysis
Level-5 Task-3
Specification
Validation
Task-n Dates, resource

Project Management
 Developing Project schedule

Schedule Inputs
112

 Team members and project calendars

 Working days (5 days or 6 days)
 Resource availability is critical to a project schedule.

 Description of project scope

 Determine start-dates and end-dates
 Assumptions behind the plan (will acquire Biz knowledge)
 key constraints and restrictions
 Stakeholder expectations (good knowledge of Biz)

Project Management
 Developing Project schedule

Schedule Inputs
113

 Project risks - You need to understand risk to

make sure there is enough buffer to deal with
identified risks - and with unidentified risks (through
Risk Analysis).

 Lists of activities & required resource

 List of task to be performed
 Understanding the resource capabilities and
experience
 Company holidays and staff vacations

Project Management
114

Schedule Network Diagram

Project Management
 Schedule Network Diagram
115

 A network diagram is a flow of tasks that

illustrates the order (or sequence) in which you
schedule project activities.

 No matter how complex your project is, its

network diagram has the following three
elements:
• Milestones
• Activities
• Durations

Project Management
 Project Time Management
Milestones
116

 Milestone is a significant event that normally

has no duration.
 It often takes several activities and a lot of
work to complete a milestone.
 Think of them as sign-posts that signify a point
in your trip to project completion.
 Milestones are useful tools for setting
schedule goals and monitoring progress.
Examples: include completion and customer
sign-off on key documents.

Project Management
 Schedule Network Diagram
Activity
117

 An activity is a component of work performed during

the course of a project.
 Activities take time and consume resources.
 The clearly you define activities and milestones , the
more accurately you can estimate the time and
resources needed to perform them.
 Example:
 Meeting with Domain-SME
 Formal Review of SRS
 Developing two reports
 Testing of a module

Project Management
 Project Time Management
Activity Lists and Attributes
118

 Activity list is a tabulation of activities to be included

on a project schedule. The list should include:
 Activity name
 Activity identifier or number
 Brief description of the activity

 Activity attributes provide more information about

each activity, such as
 Predecessors, Successors
 Leads and lags, Resource requirements
 Constraints, imposed dates
 and assumptions
Project Management
 Project Time Management
Activity Lists – Example
119
Activity Lists

Predecessors
Successors

Abduallah Resource
Hanif requirements
Baber

Project Management
 Schedule Network Diagram

Duration
120

 Duration is the total number of work periods it takes to

complete an activity.

 Amount of work effort required to complete the activity

(allocated time), people’s availability (elapsed time) , all
affect the activity’s duration.

 Example: if your Team-lead spends one hour reading

your memo after he sat in his inbox for four days and
seven hours (elapsed time), the activity’s planed duration
is five days, even though your Team-lead spends only one
hour reading it.

Project Management
121

Network Diagram

Project Management
 Network Diagram
122

Milestone is a significant Activity is a component of

occurrence in the life of a work performed during the
project. course of a project.

Milestone A Activity 1 Milestone B

tA = 0 t1 = 2 weeks tB = 0

Boxes represent activities and Duration

Arrows represent the direction
milestones. t represents duration work flows from one activity or
• If duration is 0, it’s a
milestone to the next
milestone
• if it’s > 0, it’s an activity

Project Management
 Network Diagram
123

[Start] you can proceed to work on either Activity 1 or 3

Which means you can do either Activity 1 or Activity 3
Two activities are independent of each other

Project Management
124

Scheduling Types

Project Management
 Developing Project schedule

Scheduling Types
125

Following are most common types used for

project scheduling

1. Schedule Network Analysis (Gantt/PERT)

2. Critical Path Method (CPM)
3. Schedule Compression (Crashing/Fast-Tracking)

Project Management
 Developing Project schedule
Scheduling Types
126

 1- Schedule Network Analysis: It is a graphic

representation of the project's activities, the time
it takes to complete them, and the sequence in
which they must be done.

 Project management software (MS-Project) is typically

used to create these analyses - Gantt charts and PERT
Charts are common formats.

Project Management
 Developing Project schedule
Scheduling Types
127

 2- Critical Path Analysis: This is the process of

looking at all the activities that must be
completed, and calculating the critical path - to
take so that you will complete the project in the
minimum amount of time.

 The method calculates the earliest and latest possible

start and finish times for project activities.
 It estimates the dependencies among them to create a
schedule of critical activities and dates.

Project Management
 Developing Project schedule
Scheduling Types
128

 3-Schedule Compression: This technique helps

shorten the total duration of a project by decreasing
the time allotted for certain activities. It is done so that
you can meet time constraints, and still keep the
original scope of the project.
 Crashing - You assign more resources to an activity, thus
decreasing the time it takes to complete it. This is based on
the assumption that the time you save will offset the
added resource costs.
 Fast-Tracking - This involves rearranging activities to allow
more parallel work. This means that things you would
normally do one after another are now done at the same
time.
Project Management
 Scheduling Types

1- Schedule Network Analysis

129

Inputs for Schedule Network Diagram:

 Project Scope Statement – The schedule definition
required in network diagram development must be based
on the approved scope documented in the Project Scope
Statement.
 If network diagram and schedule definition does not
account for all required deliverables in scope, the resulting
network diagram and schedule will not accurately reflect
the time necessary to complete the work.
 Work Breakdown Structure – Project Team must include
WBS project work in the network diagram to ensure
comprehensive reflection of project activities.
Project Management
 Scheduling Types

1- Schedule Network Analysis

130

Inputs for Schedule Network Diagram:

 Historical Project Information – The accuracy of network
diagram/schedule estimation is strengthened by actual
schedule metrics from past projects. Project teams should
consider past level of effort and duration for comparable
project activities.

 Resource Calendars – Project Team should develop and

utilize a resource calendar that includes holidays and
personnel availability.
 Creation of this calendar prior to network diagram creation
will ensure that the schedule accounts for actual working
time
Project Management
 Scheduling Types

1- Schedule Network Analysis

131

Program Evaluation and Review Technique (PERT)

is used for Network Analysis

Project Management
 Scheduling Types

2-Critical Path Method (CPM)

132

 CPM is a schedule network analysis technique,

developed by the DuPont Corporation in 1957.
 Critical path determines the shortest time to complete
the project.
 The critical path is the sequence of activities with the
longest duration.
 Monitor CPM activities closely during performance
because any delay in critical-path activities will delay
your project’s completion.

Project Management
 Scheduling Types

2-Critical Path Method (CPM)

133

 Identify the activities that must be completed on time

in order to complete the whole project on time.
 CPM show you which tasks can be delayed and for how
long without impacting the overall project schedule.
 Calculate the minimum amount of time it will take to
complete the project.
 Tell you the earliest and latest dates each activity can
start on in order to maintain the schedule.

Project Management
 Scheduling Types

2-Critical Path Method

134

Project Management
 Scheduling Types
2-Critical Path Method (CPM)
135

Project Management
 Scheduling Types
2-Critical Path Method
136

 According to PMBOK every scheduled task can be

defined by the following parameters.

 Early Start time (ES) Early

Duration
Early
Start Finish
 Early Finish time (EF)
 Late Start time (LS) Task Name
 Late Finish time (LF)
 Slack Time (=ES - LS) Late Slack Late
Start Time Finish
or (=EF - LF)

Slack time is the amount of time it can be delayed without

causing a delay in your overall project completion time
Project Management
 Scheduling Types
2-Critical Path Method
137

B1 = Beginning of week 1
Time duration E1 = End of week 1
is weeks

Project Management
 Schedule Representation Model
138

1- Activity List

Project Management
 Schedule Representation Model
139

2- Bar-Chart

Project Management
 Schedule Representation Model
140

3- Network Diagram

Project Management
 Project Management Techniques
141

 There are many project scheduling software

products which can do much of the tedious work
of calculating the schedule automatically, such a
• Primavera,
• MS-Project etc.

 However, before a PM can use these tools, he

should understand the concepts behind the
• work breakdown structure
• dependencies, resource allocation, critical paths
• Gantt charts and earned value

Project Management
 Project Management Techniques

Allocate Resources to the Tasks

142

 The first step in building the project schedule is to

identify the resources required to perform each
of the tasks required to complete the project.

 Project Resource is
• Any Person (or team)
• Item (Computer, meeting-room, white-board, camera)
• Tool (MS-Project, word, mentis, SCM)
• Service (Trainers, support team)
that is needed by the project.

Project Management
 Project Management Techniques

Identify Dependencies
143

 A task has a dependency, if it involves an activity,

resource, or work product that is subsequently
required by another task.

 Dependencies come in many forms:

• Test cannot be executed until a build of the software is
delivered.
• Code might depend on classes or modules built in earlier
stages.
• User interface cannot be built until the design is reviewed.

Project Management
 Project Management Techniques

Create the Schedule

144

 Once the resources and dependencies are

assigned, the software will arrange the tasks
to reflect the dependencies.

 The software also allows the project manager

to enter effort and duration information for
each task; with this information, it can
calculate a final date and build the schedule.

Project Management
145

Project Management
 6- Project Time Management
146

Part Two
PMBOK Concepts

Project Management
 6- Project Time Management
147

PMBOK v5
Pg – 140 Project Time Management Knowledge area

6.1 Plan Schedule Management

6.2 Define Activities
6.3 Sequence Activities
6.4 Estimate Activity Resource
6.5 Estimate Activity Duration
Input
6.6 Develop Schedule Tools & Technique
Outputs
6.7 Control Schedule

Project Management
 Project Time Management
6.1- Plan Schedule Management
148

 Plan Schedule Management is the process of

establishing the policies, procedures, and
documentation for planning, developing,
managing, executing, and controlling the project
schedule.

 The key benefit of this process is that it provides

guidance and direction on how the project
schedule will be managed throughout the
project.
Project Management
 Project Time Management
6.1- Plan Schedule Management
149

Project Management
 Project Time Management
6.2 - Define Activities
150

 Define Activities is the process of identifying and

documenting the specific actions to be performed to
produce the project deliverables.

 The key benefit of this process is to break down work

packages into activities that provide a basis for estimating,
scheduling, executing, monitoring, and controlling the
project work.

Project Management
 Project Time Management
6.3- Sequence Activities
151

 Sequence Activities is the process of identifying

and documenting relationships among the project
activities.

 The key benefit of this process is that it defines

the logical sequence of work to obtain the
greatest efficiency given all project constraints.

Project Management
 Project Time Management
6.3- Sequence Activities
152

Project Management
 Project Time Management
6.4- Estimate Activity Resource
153

 Estimate Activity Resources is the process of

estimating the type and quantities of material,
human resources, equipment, or supplies
required to perform each activity.

 The key benefit of this process is that it identifies

the type, quantity, and characteristics of
resources required to complete the activity which
allows more accurate cost and duration
estimates.
Project Management
 Project Time Management
6.4- Estimate Activity Resource
154

Project Management
 Project Time Management
6.5- Estimate Activity Duration
155

 Estimate Activity Durations is the process of

estimating the number of work periods
needed to complete individual activities with
estimated resources.

 The key benefit of this process is that it

provides the amount of time each activity will
take to complete, which is a major input into
the Develop Schedule process.

Project Management
 Project Time Management
6.5- Estimate Activity Duration PMBOK Pg-166
156

Project Management
 Project Time Management
6.6- Develop Schedule
157

 Develop Schedule is the process of analyzing

activity sequences, durations, resource
requirements, and schedule constraints to create
the project schedule model.

 The key benefit of this process is that by entering

schedule activities, durations, resources, resource
availabilities, and logical relationships into the
scheduling tool, it generates a schedule model
with planned dates for completing project
activities.
Project Management
 Project Time Management
6.6- Develop Schedule
158

Project Management
 Project Time Management
6.7- Control Schedule
159

 Control Schedule is the process of monitoring

the status of project activities to update
project progress and manage changes to the
schedule baseline to achieve the plan.

 The key benefit of this process is that it

provides the means to recognize deviation
from the plan and take corrective and
preventive actions and thus minimize risk.

Project Management
 Project Time Management
6.7- Control Schedule
160

Project Management
 Training Plan
161

1 Introduction
2 Project Life Cycle
3 Project Scope Management
4 Project Time Management
5 Project Cost Management

6 Project Communication Management

7 Project Risk Management

8 Project Stakeholders Management

Project Management
162 Project Cost Management
Ch-7 PMBOK
 7- Project Cost Management
163

PMBOK v5
Pg – 192 Project Cost Management

7.1 Plan Cost Management

7.2 Estimate Cost
7.3 Determine Budget
7.4 Control Cost

Project Management
 7- Project Cost Management
164

 Plan Cost Management : Process that establishes the

policies, procedures, managing, expending, and controlling
project costs.

 Cost estimating: Developing an approximation (or

estimate) of the costs of the resources needed to
complete a project.

 Cost budgeting: Allocating the overall cost estimate to

individual work items to establish a ceiling for measuring
performance.

 Cost control: Controlling changes to the project budget.

Project Management
 7- Project Cost Management
165

Example: Project Cost Management

Req’ment = Rs. 400K (4 months) Development = Rs. 250K
Estimate Testing = Rs. 200K (2 months) Implementation = Rs. 200K
Total Rs.1050K Duration is approx 10-11 months

Budgeting Req’ment = Rs. 600K (max) Development = Rs. 400K (max)

technical risk Testing = Rs. 300K (max) Implementation = Rs. 300K (max)
Scope risk Total Rs.1600K Duration is max 15 months

Expenditure Jan-Feb= 200K Mar-Apr = 300K May-Jun =300K Jul-Aug =300K

Plan Sep-Oct= 150K Nov-Dec=1500K Jan-Feb = 200K
Monthly
Includes: Direct cost & indirect cost
Cost Monthly reporting of expenditure
Control Manage if there is a change

Project Management
 7- Project Cost Management
166

How to Management Project Cost ?

How to estimate the cost of projects?

Estimate Need to know Estimation Techniques

Budgeting How to address possible risk (technical, team, skill)

How to limited time and cost

Expenditure How to develop a plan of outflow expenses

Plan Need know some financial terms

Cost How to control project cost ?

Control

Project Management
167

Some financial Concepts

Project Management
 7- Project Cost Management
168

 Most members of an top-management have a better

understanding and are more interested in financial terms than
IT terms, so IT project managers must speak their language.

 Profits are revenues (money coming in) minus expenses

(money going out) . Profit = revenue – expenses

 Life cycle costing considers the total cost of ownership, or

development plus support costs, for a project.

 Cash flow analysis determines the estimated annual costs and

benefits for a project and the resulting annual cash flow.

Project Management
 7- Project Cost Management
169

 Tangible costs or benefits are those costs or benefits

that an organization can easily measure in dollars.

 Intangible costs or benefits are costs or benefits that

are difficult to measure in monetary terms. This can
be measured in terms of quality.

 Sunk cost is money that has been spent in the past;

when deciding what projects to invest in or
continue, you should not include sunk costs.

Project Management
 Project Cost Management
7.1 Plan Cost Management
170

 Plan Cost Management is the process that

establishes the policies, procedures, and
documentation for planning, managing,
expending, and controlling project costs.

 The key benefit of this process is that it

provides guidance and direction on how the
project costs will be managed throughout the
project.

Project Management
 Project Cost Management
7.1 Plan Cost Management
171

Project Management
 Project Cost Management
7.2 Estimate Cost
172

 Estimate Costs is the process of developing an

approximation of the monetary resources
needed to complete project activities.

 The key benefit of this process is that it

determines the amount of cost required to
complete project work.

Project Management
 Project Cost Management
7.2 Estimate Cost
173

Project Management
 Project Cost Management
7.2 Estimate Cost
174

Type of Estimate Reason of doing How accurate

Rough order of Provide approximate idea -25% to +50%

magnitude (ROM) of the project estimate

Budgetary Puts the finance in your -10% to +25%

plan

Definitive Provides detail estimate -5% to +10%

for actual costs

Project Management
 Project Cost Management
7.2 Estimate Cost
175

Project Scope

Smaller Scope

Time/ Efforts
(Man-days)
• Team salary • Team Size
• Travelling • Team Skill
• Office rent Project Cost • Team experience
• Electricity bill

Project Management
 Project Cost Management
7.2 Estimate Cost
176

 First activity in software project planning is the

determination of software scope.
 Scope is the primary parameter of Project cost. Larger
the scope more is the cost of the project.

 A statement of software scope must be bounded.

What is included and what is excluded.
 Necessary to develop right expectations of the users,
so that they do not have wrong assumptions from the
project.
Project Management
 Project Cost Management
7.2 Estimate Cost
177

 Second task in project is estimation of the resources

needed (equipment, people, finance) to accomplish the
software development effort.

 Each resource is specified with 4-characteristics:

1) Description of the resource skills & experience
2) Availability of all those resources
3) Timeframe when the resource will be required
4) Duration of time that resource will be applied
Project Management
 Project Cost Management
7.2 Estimate Cost
178

 Direct Cost
• Staff Cost (salary, medical, PF)
• Travelling (within city, outside)
• Professional Services (consultant, lawyer)

 Indirect Cost
• Capital Expenditure (Furniture, PCs, ACs)
• Office rent / electricity bill
• Insurance (theft, fire)
• Depreciation (of equipment)

Project Management
 Project Cost Management
7.2 Estimate Cost
179

 Estimation Techniques
 Analogous Estimation (top-down)
 Empirical estimation (parametric)
 Decomposition Estimation (bottom-up)
 Process Based (SDLC)

Project Management
 Estimation Techniques

1- Analogous Estimation
180

 Comparing the proposed project to previously completed

similar project in the same application domain.

 Actual data from the completed projects are extrapolated.

 Analogous estimating is often used to develop a rough order

of estimate.

Example: We developed web-site for MCB-AMC

Perhaps same efforts will be required for Meezan Bank web
site.

Project Management
 Estimation Techniques

2-Empirical Estimation . . . x = z+y2

181

 Empirical model use mathematical equations (formula) to

perform software estimation.
 Equations are based on theory or historical data.
 Use input such as KLOC, number of functions to perform and
other cost drivers.
 Accuracy of model can be improved by calibrating the model
to the specific environment.

 Example: History indicates that report development takes on

average of 14 man-hours. Using this technique, the PM can
multiply 10 x 14 to get a total, or 140 man-hours for 10 reports.

Project Management
 Estimation Techniques

2- Empirical Estimation
182

Examples:
 COCOMO (COnstructive COst MOdel)
 Developed by Barry Boehm in 1981
 Became one of the most popular cost model
 Mathematical model based on the data from 63 historical
software large project
 COCOMO II
 Published in 1995
 To address issue on non-sequential and rapid development
process models, reengineering, reuse driven approaches, object
oriented approach etc
 Has three sub-models – application composition, early design and
post-architecture

Project Management
 Estimation Techniques

3- Decomposition Estimation (WBS)

183

 Software project estimation is a form of problem

solving, and in most cases, the problem to be solved
(i.e., developing a cost and effort estimate for a software project) is too
complex to be considered in one piece.

 For this reason, we decompose the problem, in a set of

smaller (and hopefully, more manageable) problems.

 In decomposition (or bottom-up) approach, the project

is first divided into tasks and then estimates for the
different tasks of the project are obtained.
Project Management
 Estimation Techniques

3- Decomposition Estimation (WBS)

184

 From the estimates of the different tasks, the

overall estimate is determined.
 The overall estimate of the project is derived
from the estimates of its manageable small
segments.
 Essentially, in this approach the size and
complexity of the project is captured in the set
of tasks the project has to perform.

Project Management
 Estimation Techniques

3- Decomposition Estimation (WBS)

185

 The bottom-up approach lends itself to direct

estimation of effort; once the project is partitioned
into smaller tasks (WBS), it is possible to directly
estimate the effort required for them, especially if
tasks are relatively small.
 If suitable past data are not available, one can estimate
the coding effort using experience once the nature of
the different types of units is specified.
 With this estimate, we can obtain the estimate for
other activities by working with some reasonable or
standard effort distribution.

Project Management
 Estimation Techniques

3- Decomposition (WBS) Estimation

186

Level-1 Develop ERP

Level-2 Sales & Distribution

Level-3 Sales Forecasting Billing / Cash Management Promotions (schemes)

Level-4 Requirement Design Development Test Integration

4-meetings Dates, resource Taks-1 Dates, resource

Documentation Taks-2
Analysis Dates, resource Taks-3
Level-5
Specification
Validation

Project Management
 Estimation Techniques

4- Process Based
187

 The most common technique for estimating a project is

to base the estimate on the process (SDLC) that will be
used for developing the software.
 Efforts for each process is estimated based on
knowledge of scope and team available.
 Process-based estimation begins with a demarcation of
software functions obtained from the project scope.
 A series of software process activities must be
performed for each function.

Project Management
 Sample Cost Estimation
188
 Project Cost Management
7.3 Determine Budget
189

 Determine Budget is the process of

aggregating the estimated costs of individual
activities or work packages to establish an
authorized cost baseline.

 The key benefit of this process is that it

determines the cost baseline against which
project performance can be monitored and
controlled.

Project Management
 Project Cost Management
7.3 Determine Budget
190

Project Management
 Project Cost Management
7.3 Determine Budget
191

 Cost budgeting involves allocating the project cost

estimate to individual work items over time.

 The WBS is a required input for the cost budgeting

process because it defines the work items.

 Important goal is to produce a cost baseline:

 A time-phased budget that PM use to measure and
monitor cost performance.

Project Management
 Project Cost Management
7.3 Determine Budget
192

 Once you have cost of your project you can then

prepare an appropriate budget to secure the requisite
funds and plan your cash flow over the life of the
project.

 The required amount must be part of project charter,

which is approved by concern authorities.

 You must be extremely careful with initial estimates

and always follow the promise low & deliver high.

Project Management
 Project Cost Management
7.3 Determine Budget
193

Cost-Benefit evaluation techniques

 Pay Back Period: the amount of time it takes for an
investment to pay for itself.
 Return on investment: Provides a way of computing
return on amount invested.

 Net Present Value: future view of costs and benefits

converted to today’s value.
 Internal Rate of Return: the interest rate (or discount)
when the net present value is equal to zero.
Project Management
 Project Cost Management

7.3 Determine Budget

194

 Project costs and project budgets are two

different things.

 Always start by identifying project costs.

 Once you have laid out your costs, identify your

risks and assign a percentage reflecting how
much each risk factor may affect the project as a
whole, or a portion of the project.

Project Management
 Project Cost Management

7.3 Determine Budget

195

 A budget should always be labeled as an estimate, until it

is finalized and approved.

 This helps to manage expectations and prevent

miscommunications from being written in stone.

 A single person does not create a budget.

 All of the following should be consulted:
 Project manager
 Business/system analyst
 Lead developer

Project Management
 Project Cost Management
7.4 Control Cost
196

 Control Costs is the process of monitoring the

status of the project to update the project
costs and managing changes to the cost
baseline.

 The key benefit of this process is that it

provides the means to recognize variance
from the plan in order to take corrective
action and minimize risk.

Project Management
 Project Cost Management
7.4 Control Cost
197

Project Management
 Project Cost Management
7.4 Control Cost
198

Project cost control includes:

 Monitoring cost performance.

 Ensuring that only appropriate project changes

are included in a revised cost baseline.

 Informing project stakeholders of authorized

changes to the project that will affect costs.

 Many organizations around the globe have
problems with cost control.

Project Management
 Project Cost Management
7.4 Control Cost
199

 Keeping a project on budget requires utilizing the project's

estimate, schedule, cost forecasting, and earned value
systems interactively.

 To keep the project cost under control we should regularly

compare the estimated cost with actual cost as of today.
This will help PM know that project is over-budget or
under-budget.

 Any unexpected variables in a budget where actual cost is

exceeding the estimated cost by a significant percentage
must be addressed immediately for cost control.
Project Management
 Project Cost Management
7.4 Control Cost
200

Earned Value Technique

 Earned Value is a method of measuring project

performance by comparing the amount of work
planned with that actually accomplished, in order to
determine if cost and schedule performed as planned.

 EV technique aims to answer questions in relation to the

projects business case:
• Where are we today?
• When will the project end up?

Project Management
 Project Cost Management
7.4 Control Cost
201

To explain the concept of earned value we will define some terms as

cost and schedule variances.
Planned Value (PV)
PV is budget is the budgeted cost for the work schedule to be
completed on a given point of time.
Earned Value (EV)
EV is the budgeted amount for the work actually completed on a given
time period.

Actual Cost (AC)

AC is the total cost incurred in accomplishing work on a given time
period.

Project Management
 Project Cost Management
7.4 Control Cost
202

Cost Overrun

Actual Planned
Cost Value
Cost
Earned
Value
Time
Overrun

Time

Project Management
 Project Cost Management
7.4 Control Cost
203

Cost Variance (CV)

CostV = EarnedV - ActualC Actual
Cost

Example: Cost Variance

PV = Rs. 630,000 Planned
EV = Rs. 590,000 Cost Value
AC = Rs. 690,000 Variance
Cost
SV = EV – AC Earned
Value
= 590,000 – 690,000
= - Rs. 100,000
(-ve means Cost overrun)
Time

Project Management
 Project Cost Management
7.4 Control Cost
204

Schedule Variance (SV)

SV = EarnedV – PlannedV Actual
Cost

Example: Schedule Variance

PV = Rs. 630,000 Planned
EV = Rs. 590,000 Value
AC = Rs. 690,000 Cost Schedule
Variance
SV = EV – PV
= 580,000 – 630,000 Earned
= - Rs. 50,000 Value
(-ve means behind the schedule)
Time

Project Management
 Project Cost Management
7.4 Control Cost
205

Cost Performance Index (CPI)

CPI is the ratio of Earned value with respect to actual cost.
CPI value less than 1.0 indicates a cost overrun.
CPI = EV / AC
Example: CPI
PV = Rs. 430,000
EV = Rs. 390,000
AC = Rs. 490,000

CPI = EV / AC
= 390,000 / 490,000 = 0.796
Rs 0.796 worth or work is actually done for
each Rs.1.0 is spent on this
Project Management
 Project Cost Management
7.4 Control Cost
206

Schedule Performance Index (SPI)

SPI is the ratio of EV with respect to Planned value.
SPI = EV / PV
SPI is used to predict the completion date.
Example: SPI
PV = Rs. 430,000
EV = Rs. 390,000
AC = Rs. 490,000

SPI = EV / PV
= 390,000 / 430,000 = 0.907
Rs 0.907 worth or work has been done for each Rs.1.0 worth
of work that was planned this project
Project Management
 Training Plan
207

1 Introduction
2 Project Life Cycle
3 Project Scope Management
4 Project Time Management
5 Project Cost Management

6 Project Communication Management

7 Project Risk Management

8 Project Stakeholders Management

Project Management
208 Project Communication Management
Ch-10 PMBOK
 10- Project Communication Management
209

PMBOK v5
Pg – 286 Project Communication Management

10.1 Plan Communications Management

10.2 Manage Communications
10.3 Control Communications

Project Management
 10- Project Communication Management
210

 Project Communications Management includes the

processes that are required to ensure timely and
appropriate planning, collection, creation, distribution,
storage, retrieval, management, control, monitoring,
and the ultimate disposition of project information.

 Project managers spend most of their time

communicating with
 Team members and
 Other project stakeholders,
 Whether they are internal or external to the organization.

Project Management
 Project Communication Management
10.1 Plan Communications Management
211

 Plan Communications Management is the process

of developing an appropriate approach and plan
for project communications based on
stakeholder’s information needs and
requirements, and available organizational assets.

 The key benefit of this process is that it identifies

and documents the approach to communicate
most effectively and efficiently with stakeholders.
Project Management
 Project Communication Management
10.1 Plan Communications Management
212

Project Management
 Project Communication Management
10.2 Manage Communications
213

 Manage Communications is the process of

creating, collecting, distributing, storing,
retrieving, and the ultimate disposition of project
information in accordance to the
communications management plan.

 The key benefit of this process is that it enables

an efficient and effective communications flow
between project stakeholders.
Project Management
 Project Communication Management
10.2 Manage Communications
214

Project Management
 Project Communication Management
10.2 Manage Communications
215

 Planning the project communications is

important to the ultimate success of any project.

 Inadequate communications planning may lead

to problems such as
 delay in message delivery,
 communication of information to the wrong audience,
 insufficient communication to the stakeholders
 misunderstanding or misinterpretation of the message
communicated
Project Management
 Project Communication Management
10.2 Manage Communications
216

 Important considerations that may need to be

taken into account include:
 Who needs what information,
 who is authorized to access that information;
 When they will need the information;
 Where the information should be stored;
 What format the information should be stored in;
 How the information can be retrieved; and
 Whether time zone, language barriers, and cross-
cultural considerations need to be taken into account.

Project Management
 Project Communication Management
10.3 Control Communications
217

 Control Communications is the process of

monitoring and controlling communications
throughout the entire project life cycle to ensure
the information needs of the project stakeholders
are met.

 The key benefit of this process is that it ensures

an optimal information flow among all
communication participants, at any moment in
time.
Project Management
 Project Communication Management
10.3 Control Communications
218

Project Management
 Training Plan
219

1 Introduction
2 Project Life Cycle
3 Project Scope Management
4 Project Time Management
5 Project Cost Management

6 Project Communication Management

7 Project Risk Management

8 Project Stakeholders Management

Project Management
220 Project Risk Management
Ch-11 PMBOK
 11- Project Risk Management
221

PMBOK v5
Pg – 308 Project Risk Management

11.1 Plan Risk Management

11.2 Identify Risks
11.3 Perform Qualitative Risk Analysis
11.4 Perform Quantitative Risk Analysis
11.5 Plan Risk Responses
11.6 Control Risks

Project Management
 Project Risk Management
11.1 Plan Risk Management
222

 Plan Risk Management is the process of defining how to

conduct risk management activities for a project.

 The key benefit of this process is it ensures that the degree,

type, and visibility of risk management are commensurate
with both the risks and the importance of the project to the
organization.

 The risk management plan is vital to communicate with and

obtain agreement and support from all stakeholders to
ensure the risk management process is supported and
performed effectively over the project life cycle.

Project Management
 Project Risk Management
11.1 Plan Risk Management
223

Project Management
 Project Risk Management
11.2 Identify Risks
224

 Identify Risks is the process of determining

which risks may affect the project and
documenting their characteristics.

 The key benefit of this process is the

documentation of existing risks and the
knowledge and ability it provides to the
project team to anticipate events.

Project Management
 Project Risk Management
11.2 Identify Risks
225

Project Management
 Project Risk Management

11.2 Identify Risks

226

 Identify risks is an iterative process, because new

risks may evolve or become known as the project
progresses through its life cycle.

 The frequency of iteration and participation in

each cycle will vary by situation.

 Format of the risk statements ensure that each

risk is understood clearly and unambiguously in
order to support effective analysis and response
development.
Project Management
 Project Risk Management

11.2 Identify Risks

227

 Risk statement should support the ability to

compare the relative effect of one risk against
others on the project.

 The process should involve the project team so

they can develop and maintain a sense of
ownership and responsibility for the risks and
associated risk response actions.

 Stakeholders outside the project team may

provide additional objective information.
Project Management
 Project Risk Management
11.3 Perform Qualitative Risk Analysis
228

 Perform Qualitative Risk Analysis is the

process of prioritizing risks for further analysis
or action by assessing and combining their
probability of occurrence and impact.

 Key benefit of this process is that it enables

project managers to reduce the level of
uncertainty and to focus on high-priority risks.

Project Management
 Project Risk Management
11.3 Perform Qualitative Risk Analysis
229

Project Management
 Project Risk Management
11.4 Perform Quantitative Risk Analysis
230

Project Management
 Project Risk Management
11.5 Plan Risk Responses
231

Project Management
 Project Risk Management
11.6 Control Risks
232

Project Management
 Training Plan
233

1 Introduction
2 Project Life Cycle
3 Project Scope Management
4 Project Time Management
5 Project Cost Management

6 Project Communication Management

7 Project Risk Management

8 Project Stakeholders Management

Project Management
234 Project Stakeholder Management
Ch-13 PMBOK
 13- Project Stakeholder Management
235

PMBOK v5
Pg – 390 Project Stakeholder Management
13.1 Identify Stakeholders
13.2 Plan Stakeholder Management
13.3 Manage Stakeholder Engagement
13.4 Control Stakeholder Engagement

Project Management
 Project Stakeholder Management
13.1 Identify Stakeholders
236

Project Management
 Project Stakeholder Management
13.2 Plan Stakeholder Management
237

Project Management
 Project Stakeholder Management
13.3 Manage Stakeholder Engagement
238

Project Management
 Project Stakeholder Management
13.4 Control Stakeholder Engagement
239

Project Management
 Project Stakeholder Management
240

Project Management
That is all