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Effective Project Management
by
Dr. Kanhaiya JethaniTata Consultancy Services
ISPMC 200321 May 2003
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Agenda
Need for Effective Project Management
Project Success Criteria
Critical Factors for Effective Project Management
Barriers
Case Study
Learning Organization
Conclusions
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Need for Effective ProjectManagement
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$250 billion/year spent on software projects
31% of projects cancelled before completion
$81 billion spent on cancelled projects
53% of projects had cost overruns of89%
84% of projects missed schedule and budget targets
The Chaos Report - the Standish group report on software application
development projects in US, 1995
Scenario in US software industry
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Effort & Budget
Overrun
Poor Quality
Unimplemented
Functionality
Cancelled
Projects
So is Software Development a Mission Impossible?
Why is it so prone to failure?
Problems in Software Projects
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Why projects fail ...
Lack of project management
Improper Estimation
Inadequate planning and tracking discipline
Lack of user involvement
Trying to chase unrealistic targets
Volatility of requirements
Ambiguous
Changes to original set
Lack of training
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Project Management
Application of knowledge, skills, tools and
techniques to project activities to meet project
requirements (PMBOK)
Basic project management processes: Planning
Executing
Controlling
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Effective Project Management
Software Project Planning (SW-CMMSM) - establish
reasonable plans
Without reasonable plans, effective project
management cannot be implemented (SW-CMMSM)
Processes critical for effective project management
Metrics critical for objective project management
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Project Success Criteria
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Project Success Criteria
Fit for use
Within budget
Within scheduleDesired Quality
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Constraints of Project Management
Scope
Schedule Cost
Quality
Risks
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Process Focus
Quality of product depends on quality of processes
followed to produce the product
Project success depends on implementation and
effectiveness of project management processes
In the absence of effective processes, projectsuccess depends on individual heroics (person
dependence)
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Process Focus
Project Management
Processes defined in PMBOK
Basic Project Management
Processes are the focus of
SW-CMMSM Level 2 KPAs
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Critical Factors for Effective Project
Management
Setting Customer Expectations
Requirements Management
Planning & Controlling
Change Management
Configuration Management
Risk ManagementRework Reduction
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Setting Customer Expectations
Marketing: Promise the moon
Project: Deliver the moon?
Problem: Expectations
mismatch
Resolution: Deliver the image
of the moon
Involve the customer/end user
from planning stage
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Requirements Management
Prevent scope creep
Prevent gold plating
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Planning
Plan: Theory/ hypothesis
Improve probability of success: Plan based on estimate / WBS
Use optimistic, pessimistic, most likely
estimates
Use historical data/ expert opinion for
estimation Replan when significant changes occur
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Project Planning
Customer
demands,
Deadlines
Constraints of
Cost, resources,
Organizational
Requirements
Involves ensuring balance between the two
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Controlling
Proactive Tracking
Tracking without metrics
90% completion syndrome
Metrics
Provide visibility
Pulse of the project
Project dashboard - health overview
Stakeholder involvement -
customer, sponsor, project team Corrective actions
Thresholds for taking corrective actions
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Metrics
Why Metrics
bring objectivity in decision
making
provide status visibility
help to set realistic expectations
focus peoples activities
help in competitive comparisons
and benchmarking
In God we trust, all others bring data.
- W. Edward Deming
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Change Management
Changes in
Scope
Cost
Schedule
Reserves (contingency/
buffer) for cost & schedule
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Configuration Management
Ensure all requirements are
satisfied
Maintain consistency betweenwork products
Ensure all changes are fully
implemented
Baselines are controlled
Ensure the sum of allcomponents is the desired
product
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Risk Management
Project Management by Risk
Management
Involve all stakeholders
(customer, sponsor, project
team)
Quantitative risk management
Track top 10 (5) risks
Re-prioritize risks (continuous
risk management)
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Rework Reduction
Do it right the first time -
training/ induction
Early defect detection -review/ inspection
Stop recurring problems -
causal analysis/ preventive
measures
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Barriers
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Barriers
Mindset - Project management is
not for techies
No time for project management
Lack of experience or data to
support estimation
Too busy in fire-fighting
Unrealistic demands
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Case Study
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Case Study (1 of 5)
Before project management
processes:
A large project nearing acceptance
testing phase (4 years after project
start-up)
The project team vanishes
New team takes over
Project review by new team Only about 25 % of scope satisfied
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Causal Analysis
Project management practiced as a black art
The requirements flow in and the product flows out 90 % completion syndrome
In Out
Case Study (2 of 5)
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Actions taken by new team:
Negotiation with customer for revised schedule
Close interaction with customer
Planning & Controlling
Requirements management
Change management
Configuration management
Peer reviews Independent testing
Case Study (3 of 5)
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Benefits of Process Changes
Project management system in place
Milestone visibility
In Out
Case Study (4 of 5)
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After process changes:
Project completed in 20 months
after new team took over
Acceptance testing by the
customer
Case Study (5 of 5)
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Learning Organization
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Learning Organization
Use processes to implement project management
Use automation to facilitate project management
Facilitate reuse through data repository Use historical data for estimation and planning
Reuse lessons learnt in past projects
Confidence in planning process
Repeat the success of past projects
Improve processes and project performance
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Conclusions
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Conclusions
Effective project management processes critical
for project success
Metrics provide visibility and objectivity
Reuse of organization learning provides
confidence