Software Project Management

Pramesh Vaidya
CSM, CSPO, CSP, SAFe Agilist, Deputy Director LogPoint
pramesh.vaidya@gmail.com
 Who am I?
• Deputy Director LogPoint
• More than 7 years in Software Project Management
• CSM, CSPO, CSP, SAFe Agilist
• Specialization in Project Management Principles and Practices, University
of California, Irvine
• Software Product Management, University of Alberta
• Consultant in different Software Companies
• Guest Lecturer in different colleges
Getting to know each other better
Your Name

Your Workplace and Role if you are working

Experience with Software Project Management if any

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Ground Rules
 Activity I
Understanding of SPM Expectation from the Course

Activity Time: 15 mins

 Career in SPM
Software Project Manager

Scrum Master

Agile Project Manager

Product Manager

Engineering Manager
Lets Deep dive in SPM
 What is Project?
It's a temporary endeavor undertaken to create
a unique product, service or result.

Temporary: Defined beginning and end in time

Unique: Not a routine operation

 Project Examples
Development of Software for an Improved Business Process

Construction of a building or bridge

The relief effort after a natural disaster

Expansion of sales into a new geographic market

 Activity II
Which of these is not an example of a project?
• Buying clothes from the market on a special sale
• Cleaning the office building every day
• Building a bridge across the Amazon river
• Planning for your friend's wedding

Activity Time: 2 mins

 Activity III
Give one example of a Project & Not an
example of a Project?

Activity Time: 5 mins

What is Project Management?
Project management, then, is the application of
knowledge, skills, tools, and techniques to
project activities to meet the project
requirements.
 What is SPM?
• Software project management is an art and
science of planning and leading software
projects.

• It is a sub-discipline of project management in

which software projects are planned,
implemented, monitored and controlled.
 Activity IV
Identify some additional career paths in SPM.

Activity Time: 5 mins

 Activity V: Imagination
If you have to represent project via an object
or an animal, what would it be and why?
Please create a drawing of the same.

Please draw an analogy keeping Project

characteristics in mind.

Activity Time: 10 mins

 PMBOK Process & Process Groups
Process: A set of interrelated actions and activities
performed to achieve a specified set of products, results,
or services.

Process Groups: Process Groups bundle together

processes that often operate around the same time on a
project.

Every project needs the 5 Process Groups - Initiating,

Planning, Executing, Monitoring & Controlling and
Closing.
 PMBOK Knowledge Areas
Knowledge Areas: Knowledge Areas are formed by
grouping the 47 processes of project management into
specialized and focused areas.
 10 Knowledge Areas
Integration Management: Processes required to ensure
that the various elements of the project are properly
coordinated.
Scope Management: Processes required to ensure that
the project includes all the work required, and only the
work required, to complete the project successfully.
Time Management: Processes required to ensure the
timely completion of the project.
Cost Management: Processes required to ensure the
project is completed within the approved budget.
 10 Knowledge Areas
Quality Management: Processes required to ensure the
project will satisfy the needs for which it was undertaken.

Human Resource Management: Processes required to

make the most effective use of people involved with the
project.

Communications Management: Processes required to

ensure the timely and appropriate generation, collection,
dissemination, storage, and ultimate disposition of project
knowledge.
 10 Knowledge Areas
Risk Management: Processes concerned with identifying,
analyzing, and responding to project risk.

Procurement Management: Processes required to acquire

the goods and services from outside the performing
organization.

Stakeholder Management: Processes that identifies and

develops relationships with those people and organizations
which are impacted by the project and which influence or
determine how the team works.
Process Groups and Knowledge Areas Mapping
 Activity VI
Difference between Process Groups &
Knowledge Areas.

Knowledge Area: Processes are grouped by

specialized and focused areas
Process Groups: Processes often operate
around the same time.

Activity Time: 5 mins

 Group Activity VII
Group I:
Identify 2 - 3 Integration Activities
Identify one challenge related to Scope Management, and it’s
solution
Group II:
Identify one challenge related to Time, Cost Management, and
it’s solution
Group III:
Identify one challenge related to Quality Management, and it’s
solution
Identify few activities related to Human Resource Management

Activity Time: 10 mins + 10 mins

 Group Activity VII
Group IV:
Identify 2 - 3 effective communication Management techniques
Identify 1- 2 project Risk & it’s mitigation Plan

Group V:
Identify 1- 2 Procurement activities
Identify 1- 2 Stakeholder for your Project and the management
plan

Activity Time: 10 mins + 10 mins

 Project, Program & Portfolio
Project: A temporary endeavor undertaken to create a
unique product, service, or result
Program:
• Group of related projects managed to obtain benefits
not available from managing them individually
• The projects within a program share a goal
Portfolio:
• A collection of projects or programs and other work that are
grouped to meet strategic business objectives
• The projects and programs within a portfolio may not be
related to each other.
Program & Portfolio
 Activity VIII
Project Program Portfolio
Keywords

Activity Time: 5 mins

 Activity VIII
Project Program Portfolio
Keywords • Temporary • Related projects • Collection of
• Unique • Shared goal Project, Programs
• Strategic business
objectives

Activity Time: 5 mins

 Operations
Operations are functional activities that produce the same
product or provide a repetitive service.

Example: Major aspect of IT Operations, Support

 Activity IX
Identify 2 additional examples of Operations.

Activity Time: 15 mins

 Project Vs Product Management
Project Product
Primary concern Temporary endeavor undertaken to Anything that can be offered to a market
create a unique product, service, or that might satisfy a want or a need
result
Focus When will it be delivered? Why are we delivering it and to whom?
Schedule driven Value driven
Try to predict what users need Find out what users want and adapt to
their evolving needs
Optimize utilization of team members Team self-organizes to optimize its work
through phase based and sequential
activities
Tasks Risk Management Product Vision
Resource Management Delivery Roadmap
Scope Management Understanding User, Stakeholder needs
Stakeholder Management
Communications Management
 Activity X
Imagine a Product you want to develop and prepare a
product Vision for the same.

Example: Amazon
"Our vision is to be earth's most customer-centric
company; to build a place where people can come to
find and discover anything they might want to buy
online."

Activity Time: 15 mins

 Organizational Structures
Functional: Based on an organization being divided up into
smaller groups with specific tasks or roles.

Product (Projectized): Company is organized by projects

rather than functional teams or departments.

Matrix: Organization in which there is dual or multiple

managerial accountability and responsibility.
Functional Structure
Product (Projectized) Structure
Matrix Structure
 Activity X
You are working on the new organizational structure
for your software company. Which organizational
structure would you choose and why?

Activity Time: 15 mins

Lets Deep dive in Software Processes and Agile Practices
 Software Life Cycle Process
A software life cycle process refers to a process that
covers the entire spectrum of software development, from
the product’s initial conception to its eventual retirement.
 Processes and Phases
• A process is divided into multiple phases.
• A phase is made up of activities.
• An activity is made up of tasks.

Example of Phases, Activities and Tasks of a Process to

create a Software Product
Specification Writing Test Framework Code
Design and Implementation Executing Tests Designing Tests
Verification and Validation Writing Tests
Running Tests

Phases Activities Tasks

 Activity XI
Identify Activities of a Process to create a Software
Product for the Phase: Design and Implementation

Activity Time: 10 mins

 Activity XI
Identify Activities of a Process to create a Software
Product for the Phase: Design and Implementation

• Designing the Architecture

• Designing the database
• Designing interfaces
• Creating executable code
• Integrating functionality
• Documenting

Activity Time: 10 mins

 Process Models
Adopting and adapting a suitable process will be key in
structuring the work for a successful project.

Designing a process can start from scratch or may be

based on one of the many process models that have
already been used successfully.
 Process Models
Linear Process Models: Phases that happen sequentially,
one after another.

Iterative Process Models: Phases that are repeated in

Cycles.
Waterfall Model
 Activity XII
Identify the benefits and drawbacks of the Waterfall
Model.
Benefits Drawbacks

Activity Time: 10 mins

 Waterfall Model
Benefits
Easy to understand
Clearly defines deliverables and
Milestones
Emphasizes the importance of
analysis before design, and
design before implementation
Adopted for well-specified parts
that can be outsourced
Drawbacks
Not very adaptable to changes
Focuses on knowing all the
requirements up front
Client does not see the
product until close to the end
of development
Testing occurs late in the
process
Linear Models
Linear Models
Spiral Model
 Agile Practices
Practices are techniques, guidelines, or rules that help to develop
the software product or to manage the software project.
Agile Practices are based upon the Manifesto for Agile Software
Development
 Agile Manifesto

• Individuals and interactions over processes and tools

• Working software over comprehensive documentation

• Customer collaboration over contract negotiation

• Responding to change over following a plan

 Activity XIII
Form small groups among yourselves and discuss
how the values of Agile Manifesto can be achieved in
your Projects.

Activity Time: 20 mins

 Agile Principles
Our highest priority is to satisfy the customer through early and
continuous delivery of valuable software.
Welcome changing requirements, even late in development.
Agile processes harness change for the customer’s competitive
advantage.
Deliver working software frequently, from a couple of weeks to
a couple of months, with preference to the shorter timescale.
Business people and developers must work together daily
throughout the project.
 Agile Principles
Build projects around motivated individuals. Give them the
environment and support they need, and trust them to get the job
done.
The most efficient and effective method of conveying information to
and within a development team is face-to-face conversation.
Working software is the primary measure of progress.
Agile processes promote sustainable development. The sponsors,
developers, and users should be able to maintain a constant
pace indefinitely.
 Agile Principles
Continuous attention to technical excellence and good design
enhances agility.
Simplicity, the art of maximizing the amount of work not done is
essential.
The best architectures, requirements, and designs emerge from
self-organizing teams.
At regular intervals, the team reflects on how to become more
effective, then tunes and adjusts its behavior accordingly.
Activity XIV: Agile Coin Game
Activity Time: 40 mins
Activity XV: Agile Game: Draw a House
Activity Time: 15 mins
 Kanban
An agile framework for managing the creation of products with an
emphasis on continual delivery.

It is based on 3 basic principles:

• Visualize what you do
• Limit the amount of work in progress (WIP)
• Enhance flow
Kanban
 Activity XVI: Lean Coffee

Activity Time: 15 mins

 What is Lean Coffee?
Lean Coffee is structured, but agenda-less meeting
Participants gather, build an agenda, and begin talking
Conversations are directed and productive as the agenda for
the meeting is democratically generated

- http://leancoffee.org/
How does Lean Coffee Work?
- https://www.slideshare.net/gerrykirk/lean-coffee-how-to
 Workshop: Lean Coffee
Form a group among yourselves of 6 - 9 team members: 3 - 5 mins
Brainstorm and prioritize the topics to discuss: 7 - 10 mins
Topic discussion length (Round 1): 5 mins
Total time for the discussion session: 20 mins
Topic suggestion for Lean Coffee J: Values of Agile Manifesto
Extreme Programming (XP)
Activity XVII: XP (Greeting Card)

Activity Time: 15 mins

DSDM
 DSDM
DSDM (formally known as Dynamic System Development Method)
is an Agile method that focuses on the full project lifecycle.

Why: Project managers using RAD (Rapid Application Development)

sought more governance and discipline to this new iterative way of
working.

DSDM’s success is due to the philosophy “that any project must be

aligned to clearly defined strategic goals and focus upon early
delivery of real benefits to the business.”
Activity XVII: DSDM Principles

Based on the video, identify the principles

for DSDM

Activity Time: 15 mins

 Eight Principles of DSDM
• Focus on the business need
• Deliver on time
• Collaborate
• Never compromise quality
• Build incrementally from firm foundations
• Develop iteratively
• Communicate continuously and clearly
• Demonstrate control
 DSDM Practices
Facilitated Workshops: Specialized type of meeting with:
• Clear objective deliverables

• A set of people (Participants) specifically chosen and

empowered to deliver the required outcome

• An independent person (Workshop Facilitator) to enable the

effective achievement of the objective
 DSDM Practices
Modelling: To improve understanding through visual representations
Models can be :
• A storyboard to represent a television advertisement
• Architectural blue-prints to define a housing development
• An artist’s impression of a landscaped park
• A scale model of a car to be built
• Process diagrams to establish the required functionality to be
supported by a software solution
• A network diagram showing components of a communications
network
 DSDM Practices
Iterative Development: Process in which the Evolving Solution, or a
part of it, evolves from a high-level concept to something with
acknowledged business value.

MoSCoW Prioritization: Technique for manage priorities.

The letters stand for:
• Must Have
• Should Have
• Could Have
• Won’t Have this time

Time boxing: A fixed period of time, at the end of which an

objective has been met.
Scrum
 Definition of Scrum
A framework within which people can address complex adaptive
problems, while productively and creatively delivering products of
the highest possible value.

Scrum is:
• Lightweight
• Simple to understand
• Difficult to master
 Uses of Scrum
• Research and identify viable markets, technologies, and product
capabilities;
• Develop products and enhancements;
• Release products and enhancements, as frequently as many
times per day;
• Develop and sustain Cloud and other operational environments
• Sustain and renew products.
 Scrum Theory
• Scrum is founded on empirical process control theory, or
empiricism.
• Empiricism asserts that knowledge comes from experience and
making decisions based on what is known.
• Three pillars uphold every implementation of empirical process
control: transparency, inspection, and adaptation.
 Scrum Theory
Transparency: Significant aspects of the process must be visible to
those responsible for the outcome.
For example:
• A common language referring to the process must be shared by
all participants;
• Those performing the work and those inspecting the resulting
increment must share a common definition of “Done”.
 Scrum Theory
Inspection: Scrum users must frequently inspect Scrum artifacts
and progress toward a Sprint Goal to detect undesirable variances.
Adaptation: If an inspector determines that one or more aspects of
a process deviate outside acceptable limits, and that the resulting
product will be unacceptable, the process or the material being
processed must be adjusted. An adjustment must be made as
soon as possible to minimize further deviation.
 Scrum Theory
Scrum prescribes four formal events for inspection and adaptation:
• Sprint Planning
• Daily Scrum
• Sprint Review
• Sprint Retrospective
 Scrum Values
Commitment: People personally commit to achieving the goals of the Scrum Team.
Courage: The Scrum Team members have courage to do the right thing and work on
tough problems.

Focus: Everyone focuses on the work of the Sprint and the goals of the Scrum Team.
Openness: The Scrum Team and its stakeholders agree to be open about all the
work and the challenges with performing the work.

Respect: Scrum Team members respect each other to be capable, independent

people.
 The Scrum Team
The Product Owner
The Development Team
The Scrum Master
 Product Owner
Sole person responsible for managing the Product Backlog.
Product Backlog management includes:
• Clearly expressing Product Backlog items
• Ordering the items in the Product Backlog
• Optimizing the value of the work the Development Team performs
• Ensuring that the Product Backlog is visible, transparent, and clear to all
• Ensuring the Development Team understands items in the Product Backlog to the level
needed.
 The Development Team
Consists of professionals who do the work of delivering a potentially
releasable Increment of “Done” product at the end of each Sprint
Development Teams have the following characteristics:
• They are self-organizing.
• Development Teams are cross-functional.
• Scrum recognizes no titles for Development Team members.
• Scrum recognizes no sub-teams in the Development Team.
• Individual Development Team members may have specialized skills and areas of focus, but
accountability belongs to the Development Team as a whole.
 Development Team Size
• Optimal Development Team size is small enough to remain nimble
and large enough to complete significant work within a Sprint.
• Fewer than three Development Team members decrease
interaction and results in smaller productivity gains.
• Having more than nine members requires too much coordination.
• The Product Owner and Scrum Master roles are not included in
this count unless they are also executing the work of the Sprint
Backlog.
 The Scrum Master
• Responsible for promoting and supporting Scrum.
• Do this by helping everyone understand Scrum.
• The Scrum Master is a servant-leader for the Scrum Team.
 The Scrum Master
The Scrum Master serves the Product Owner, Development team,
Organization in several ways, including:
• Finding techniques for effective Product Backlog management.
• Helping the Scrum Team understand the need for clear and
concise Product Backlog items.
• Ensuring the Product Owner knows how to arrange the Product
Backlog to maximize value.
 The Scrum Master
The Scrum Master serves the Product Owner, Development team,
Organization in several ways, including:
• Coaching the Development Team in self-organization and cross-
functionality.
• Removing impediments to the Development Team’s progress.
• Leading and coaching the organization in its Scrum adoption.
• Planning Scrum implementations within the organization.
 Activity XV
Self Organize among yourselves to form multiple
Scrum Teams. Your team should have Product Owner,
Scrum Master, and the Development Team.

Also, identify a role for yourselves in the team and

explain to the class the activities you would be
performing.
Activity Time: 15 mins
 Scrum Artifacts: Product Backlog
• The Product Backlog is an ordered list of everything that is known
to be needed in the product.
• It is the single source of requirements for any changes to be made
to the product.
• The Product Owner is responsible for the Product Backlog,
including its content, availability, and ordering.
 Scrum Artifacts: Product Backlog
• A Product Backlog is never complete.
• The Product Backlog lists all features, functions, requirements,
enhancements, and fixes that constitute the changes to be made
to the product in future releases.
• Product Backlog items have the attributes of a description, order,
estimate, and value.
 Product Backlog Example
Scrum Alliance Website
• As a site member, I want to describe myself on my own page in a semi-structured way so that
others can learn about me. That is, I can fill in predefined fields, but also have room for a
free-text field or two. (It would be nice to let this free text be HTML or similar.)
• As a site member, I can view the profiles of other members so that I can find others I might
want to connect with.
• As a site member, I can mark my profile as private in which case only my name will appear so
that no one can learn things about me I don’t want shared.
 Activity XV
As a team identify the Product you want to develop
and prepare a product backlog for the same. Your
product backlog should have at least 5 items with
description, estimate and order.

Activity Time: 15 mins

 Scrum Artifacts: Sprint Backlog
• The Sprint Backlog is the set of Product Backlog items selected
for the Sprint, plus a plan for delivering the product Increment and
realizing the Sprint Goal.
• The Sprint Backlog is a forecast by the Development Team about
what functionality will be in the next Increment and the work
needed to deliver that functionality into a "Done" Increment.
• Only the Development Team can change its Sprint Backlog during
a Sprint.
 Scrum Events
• Prescribed events are used in Scrum to create regularity and to
minimize the need for meetings not defined in Scrum.
• All events are time-boxed, such that every event has a maximum
duration.
• Once a Sprint begins, its duration is fixed and cannot be
shortened or lengthened.
 The Sprint
• The heart of Scrum is a Sprint, a time-box of one month or less during
which a “Done”, useable, and potentially releasable product Increment
is created.
• A new Sprint starts immediately after the conclusion of the previous
Sprint.
• Sprints consist of the Sprint Planning, Daily Scrums, the development
work, the Sprint Review, and the Sprint Retrospective.
• Sprints are limited to one calendar month.
 Cancelling a Sprint
• A Sprint can be cancelled before the Sprint time-box is over.
• Only the Product Owner has the authority to cancel the Sprint.
• A Sprint would be cancelled if the Sprint Goal becomes obsolete.
 Activity XV
For the product you want to develop, determine the
Sprint length and the rationale for it.

Activity Time: 15 mins

 Sprint Planning
• The work to be performed in the Sprint is planned at the Sprint
Planning.
• This plan is created by the collaborative work of the entire Scrum
Team.
• Sprint Planning is time-boxed to a maximum of eight hours for a
one-month Sprint. For shorter Sprints, the event is usually shorter.
 Sprint Planning
The Scrum Master ensures that the event takes place and that
attendants understand its purpose.
Sprint Planning answers the following:
• What can be delivered in the Increment resulting from the
upcoming Sprint?
• How will the work needed to deliver the Increment be achieved?
 Sprint Goal
• The Sprint Goal is an objective set for the Sprint that can be met
through the implementation of Product Backlog.
• It provides guidance to the Development Team on why it is
building the Increment.
• It is created during the Sprint Planning meeting.
• The selected Product Backlog items deliver one coherent function,
which can be the Sprint Goal.
 Sprint Goal Example
Example Sprint goals for an e-commerce application.
• Implement basic shopping cart functionality including add, remove
and update quantities.
• Develop the checkout process: pay for an order, pick shipping,
order gift wrapping, etc.
 Activity XV
In your group have the Sprint Planning and come up
with a Sprint backlog and the Sprint Goal.

Activity Time: 15 mins

 Daily Scrum
• The Daily Scrum is a 15-minute time-boxed event for the
Development Team.
• The Daily Scrum is held every day of the Sprint.
• At it, the Development Team plans work for the next 24 hours.
• The Development Team uses the Daily Scrum to inspect progress
toward the Sprint Goal.
 Daily Scrum
Some Development Teams will use questions, some will be more
discussion based. Here is an example of what might be used:
• What did I do yesterday that helped the Development Team meet the
Sprint Goal?
• What will I do today to help the Development Team meet the Sprint
Goal?
• Do I see any impediment that prevents me or the Development Team
from meeting the Sprint Goal?
 Activity XV
In your group have the role play of the daily Scrum.

Activity Time: 15 mins

 Sprint Review
• A Sprint Review is held at the end of the Sprint to inspect the
Increment and adapt the Product Backlog if needed.
• This is an informal meeting, not a status meeting, and the
presentation of the Increment is intended to elicit feedback and
foster collaboration.
• This is at most a four-hour meeting for one-month Sprints. For
shorter Sprints, the event is usually shorter.
 Sprint Retrospective
• The Sprint Retrospective is an opportunity for the Scrum Team to
inspect itself and create a plan for improvements to be enacted
during the next Sprint.
• The Sprint Retrospective occurs after the Sprint Review and prior
to the next Sprint Planning.
• This is at most a three-hour meeting for one-month Sprints. For
shorter Sprints, the event is usually shorter.
 Sprint Retrospective
• The Scrum Master ensures that the meeting is positive and
productive.
• The purpose of the Sprint Retrospective is to:
• Inspect how the last Sprint went with regards to people, relationships,
process, and tools.
• Identify and order the major items that went well and potential
improvements.
• Create a plan for implementing improvements to the way the Scrum Team
does its work.
 Activity XV
Use of Yay! Questions and Celebration Grids for
Sprint Retrospective

Topic for retrospective:

Understanding and Application of software

project management techniques.
Celebration Grids
 Client Needs and Software Requirements

What is Requirement?
A requirement is most easily understood as a specific
description of your client’s needs, which can be used
to help create a real-world product.
 Expressing Requirements

Expressing requirements involves framing the

requirements identified through discussion in a way
that allows a product to be built.

Typical representations include use cases, user

stories, or storyboards, among others
 Use Cases
A way of explaining a set of sequential interactions users
might have with the features of a product
Use cases may be presented in tables.
It is also helpful to depict the use cases of a product
with a diagram.
Use case diagrams are high-level, visual representations
outlining all the tasks supported by the product being
created.
Use Cases
Use Case Diagram
 Wireframes
A wireframe, also known as a mock-up, can be thought of
as a kind of early blueprint.
It is a basic visual representation of the product.
Wireframes
 Storyboards
In software development, storyboards are sequential,
visual representations of an interaction with the software
product.
Storyboard describes high-level user experience with
the product.
Storyboards
 Agile Requirements
According to Agile, face-to-face interactions with clients is
key to ensuring requirements are right, even as they
change.
Although the vision of the product should come from the
client, software product managers often help narrow the
vision and outline what requirements are within scope of
the project.
 User Stories
User stories are a major technique used to express
requirements, like use cases, wireframes, and
storyboards.

User stories are special because they use a consistent

format to express requirements that is easy to write, read,
and evaluate.
 User Stories Format
User stories take the following format:

“As a ‘who,’ I want to ‘what,’ so that ‘why.’”

The “who” of the requirement is the stakeholder role for

whom the requirement is being formed. The requirement
should be written as if it is from this person’s point of view.

The “what” of the requirement is the specific task or

functionality the stakeholder wants to achieve by using the
product.
 User Stories Format
The “why” of the requirement highlights the goals or
visions of the product, and it provides insight into the
value or benefit of the requirement.
An example of a user story based on the restaurant
example:
“As a customer, I want to be able to identify dietary
restrictions, so that I know I can eat the food I order.”
 User Stories Format
User stories can be evaluated using the mnemonic
INVEST. A good user story outlines a specific software
requirement in the product.
I: Independent
N: Negotiable
V: Valuable
E: Estimate-able
S: Small
T: Testable
 Activity
Identify the Product you want to create. Identify at
least 5 user stories for the same.

Activity Time: 15 mins

 Introduction to Planning
The key to planning software projects is breaking the
project workload into small, manageable tasks.

This involves describing and organizing tasks, and

assigning them time and work estimates.

Based on the identified tasks and their time and work

estimates, an accurate schedule for the project can be
made.
 Work Breakdown Structure
In project management, the technique of work breakdown structure
(WBS) creates a visual representation of the process of breaking
down large project work products into smaller task work products.

Tasks should be broken down until each is small and clear enough to
be assigned to a single person.

WBS is therefore also a hierarchical representation of project tasks

and deliverables.
Determine if a task or work product is a good size?

SMART
Specific: task should be clear and should not overlap with other
tasks.
Measurable: task should have a definite way of being marked as
finished or done.
Achievable: one person should be able to do the task.
Relevant: task should be within scope of the project.
Time boxed: the task can fit within a certain time frame
 Work Breakdown Structure
WBS can be organized functionally or by phase. Common
steps included are:
• Project initiation
• Hardware and equipment acquisition
• Development
• Testing
• Implementation
Example
Example
Uses of Work Breakdown Structures
To determine tasks for the project based on the work
products displayed
Easier to estimate how long small tasks will take to finish,
and then to add those times together to determine a project
estimate, than to estimate the project as a whole.
Once work products have been identified through a WBS,
risks can be determined for each of those work products.
This is much more efficient than trying to determine risks
from looking at the product as a whole.
 Activity
Imagine a Product you want to develop. Prepare a
WBS for the same with at least three tiers.

Activity Time: 15 mins

Estimates, Targets, and Commitments
An estimate is a guess of the time it will take the
development team or worker to complete a task

Although estimates are sometimes presented as ranges,

they are not negotiable.

Estimates should not include padded or extra time or be

affected by what stakeholders or managers want the
estimate to be.
Estimates, Targets, and Commitments
A target is a specific point in the schedule for the project or
part of the project to meet.
It is almost an ideal deadline, and is usually set externally to
the development team.
Like estimates, targets are not negotiated.
Examples of targets are ends of a sprint or the release date
of a product.
Estimates, Targets, and Commitments
Commitments are what you agree to deliver.
Commitments are where negotiations can happen.
Based on both estimates and targets, a commitment can be
negotiated.
A good question to ask when determining commitments is,
“How do I compromise on what the development team will
commit to doing, based on their estimates and the time
constraints (of the project)?”
 Activity
Explain the difference between Estimates, Targets and
Commitments with an example.

Activity Time: 15 mins

 Example
A theoretical project may be estimated by the development team to need
1,000 hours of work, based on the requirements the client has expressed.
This is an estimate.
The client, however, may want the project finished within 600 hours. This is a
target.
After negotiating, the client and development team may adjust the scope of
the project so it seems to include about 500 hours of work. This is a
commitment.
The project may take more or less time to finish than the commitment, and
that actual time can be used as data for future estimates.
 Estimation: Story Points
Story points are an assigned value that look at how long it will take to
finish a piece of work in relation to other pieces of work.

Story points are therefore relative measurements/metrics/measures,

and unitless, unlike time estimates.

In time estimates, time is the unit used, whereas in story points, the
points are not representative of any particular measurement.
 How To Use Story Points
In order to use story points, first, a relatively easy to estimate product
requirement or user story should be selected from the product backlog
and assigned an integer value. This value is a story point.

Using this basis, story points are then assigned to the rest of the user
stories.

For example, if a task twice as big as the base task is found, it will be
assigned approximately twice the number of story points.
 How To Use Story Points
After this is done, you will be left with a list of user stories whose work
estimates are all relative to each other, as they are all based on the
same point system.

This prevents accidentally committing to a time period, but instead just

determines how large each user story actually is.

A good practice is to use story point values that are fixed. This helps
avoid story points from simply becoming interpreted as hours.
 How To Use Story Points
A good way to make sure story points stay fixed and relative is to use
the Fibonacci sequence.

The Fibonacci sequence is a sequence where any individual number is

the sum of the two numbers that precede it. The sequence runs like: 1,
1, 2, 3, 5, 8, 13, 21, etc.
 Velocity Estimates
Velocity is a measure/metric/measurement of the work that can be
taken on and finished over the length of a sprint.
An example of a velocity could be 15 story points per sprint.
For story points to count towards velocity, they must be
finished. In other words, a partially finished task does not
count towards velocity.
Velocity cannot be compared across different teams, because the
way story points are made will not be the same for different teams.
 Velocity-Driven Development
Velocity can be used in velocity-driven development
This kind of project development happens when the amount of
work completed or the velocity of previous sprints is used as a
basis for planning other sprints in the project.
For example: if the three previous sprints of a project had a
velocity of 15 points/sprint, then this can be used to plan the next
sprint. User stories can be selected based on their story points
until the total projected to finish in a sprint is 15 points or less.
 Activity
For the product you want to develop prepare a
Product backlog with at least 5 user stories.

Once the user stories are identified, prioritize the

stories and estimate them using story points
estimation.

Based on past velocity of the team (assume), plan

stories for at least one Sprint. Prepare Sprint backlog
and the Sprint Goal for the first Sprint.

Activity Time: 30 mins

 Gantt Charts
Gantt charts are simple tools for visualizing project plans or
schedules.
They are a kind of cascading horizontal bar chart.
Gantt charts can also be used to visualize task dependencies,
the length of tasks, and deadlines.
Example: Gantt Chart
Example: Gantt Chart
 Critical Path Method (CPM)
A CPM chart is a visual way to organize task dependencies

CPM charts, once completed, are a useful tool for generating a

schedule for the project and determining minimum time
estimates.

CPM models the activities and events of a project as a network.

 Steps involved in CPM Technique
1. Break down the project into various activities systematically.
2. Label all activities.
3. Arrange all the activities in logical sequence.
4. Construct the arrow diagram.
5. Tabulate various times and mark EST and LFT
6. Calculate total float for each activity.
7. Identify the critical activities and mark the critical path
8. Calculate the total project duration.
 Exercise 1

Work Package Precedence

A /
B /
C B
D A, B
E D
F E, C

Build a Network diagram

Exercise 1
Description of an Activity
 Earliest and Latest Dates Calculation
The algorithm to calculate network activities is composed by two
phases:
• Forward Pass: Earliest date calculation
• Backward Pass: Latest date calculation
 Critical Path
It is the activities chain characterized by the maximum duration or
by the minimal float.
A delay for any activity belonging to the Critical Path implies a
delay for the whole project.
 Exercise 2
Work Package Precedence
A /
B /
C /
D A
E A, B
F E, C
G D, E
H G, F

Build a Network diagram

Solution: Exercise 2
 Exercise 3
Work Package Precedence Duration
Build a Network
A / 8
diagram & identify
B / 6
the Critical Path –
C / 7
using Forward
D A 5
Pass
E A, B 6
F E, C 9
G D, E 4
H G, F 2
Solution: Exercise 3
 Exercise 4
Work Package Precedence Duration
Calculate the
A / 8
Backward Pass
B / 6
C / 7
D A 5
E A, B 6
F E, C 9
G D, E 4
H G, F 2
Exercise 4
 Exercise 5
Work Package Precedence Duration Calculate the Float
A / 8
B / 6
C / 7
D A 5
E A, B 6
F E, C 9
G D, E 4
H G, F 2
Exercise 5
 Exercise 6
Work Package Precedence Duration Calculate the
A / 8 Critical Path and
B / 6 Minimum time to
C / 7 complete the
D A 5 Project
E A, B 6
F E, C 9
G D, E 4
H G, F 2
Exercise 6
 Exercise 7
Work Package Precedence Duration Make Gantt Chart
A / 8
B / 6
C / 7
D A 5
E A, B 6
F E, C 9
G D, E 4
H G, F 2
Exercise 7
 Practice Exercise 8
Work Package Precedence Duration
Do the followings:
P1 / 4 • Network diagram
P2 / 3 • Calculate Forward
P3 P1 4 Pass
P4 P1 2 • Calculate Backward
A1 P1 7 Pass
A2 P3, P4 6 • Calculate Float
A3 P2 3 • Critical Path
A4 P2 3 • Prepare Gantt Chart
A5 A1, A2 4
A6 A3, A4, A5 1
Practice Exercise 9: What is the Project Cost?
Work Package Duration Res. Man Day/Cost Materials
P1 2 8 150
P2 4 3 200
P3 4 5 120
P4 5 4 100 5000
A1 6 10 500
A2 6 3 150
A3 3 5 750
A4 3 5 200
A5 4 3 150
A6 1 6 100
Solution: Exercise 9
 PERT
Stands for Program Evaluation and Review Technique

Normally used for large and complex project

It is a statistical tool used to analyze the project

duration.
 PERT - Formula
Duration (expected time): (P+4M+O)/6
P stands for Pessimistic, M for Most Likely and O for
Optimistic
Standard Deviation of an activity: (P-O)/6
PERT Example
PERT Example
 CPM Vs PERT
CPM
Statistical technique of project
management that manages well
defined activities of a project.
Appropriate for reasonable time
estimate and management of
predictable activities.
Involves the job of repetitive nature.
PERT
Project management technique, used
to manage uncertain activities of a
project.
Appropriate for high precision time
estimate and management of
unpredictable activities
Used where the nature of the job is
non-repetitive.
 Risks
Risk is something that could potentially cause a project
to fail.
Risks are found in every situation, not just in projects
and project plans, so it is important to try and plan for
them.
 Types of Risks
Scope risks, which refer to risks that involve expanding
requirements.
Technology risks, which refer to risks that the
technology used in a project will fail. This includes
hardware failure, software protocols becoming
obsolete or unsupported, lack of scalability with
technology, etc.
 Types of Risks
Customer and stakeholder risks, which refers to risks
that customers and stakeholders can bring to a project.
Examples of customer or stakeholder risks include
change in the main point of contact between the team
and the client.
 Types of Risks
Personnel risks, which refer to risks posed by
personnel on the development team.
For example, team members may leave partway
through a project. This can be especially problematic if
the person who leaves has specialized skills that are
not shared by other team members.
Personnel risks could also refer to a lack of needed
skills, conflict between team members, etc.
 Types of Risks
Many other risks, such as legal issues, security
problems, the destruction of physical locations, loss of
interest from either management or development
teams, etc.
 Activity
Prepare an example for different types of Risks
Activity Time: 15 mins
 Risk Assessment, Likelihood, and Impact

In order to plan for risks, it is important not only to be

able to identify potential risks, but to understand both
the likelihood of a risk happening over the course of a
project and the impact of that risk on the project.
Impact vs. Likelihood Matrix
 Risk Management Plan
A risk plan, or a risk management plan, is a list of
potential project risks, associated impacts, and
likelihood, and any planned action for how to address
the risk should it occur.
Generally, risk management plans are presented in
tables.
 Risk Management Plan
The table consists of five columns. From left to right,
these columns contain:
• The risk
• Its cause
• The associated rank of that risk, as determined by the impact vs.
likelihood matrix
• A description of the risk’s indicators (An indicator is a sign that the risk
is going to occur and is usually some sort of event or activity to look out
for.)
• A description of the action to take if the risk presents itself
 Example
Risk Cause Risk Indicators Action
Ranking
Organizatio Stationed 2 • First: Resentment from family • Introduction of policy whereby
nal : Staff overseas members start creeping. staff who have been involved in
Morale for a home country for more than 12
significant • Second: Majority of the project months are only posted for
period time is diverted towards fixing the overseas works.
personal problem.
• Outsource the functions of the
• Third: Quality of work starts to concern staff to local
deteriorate supplier/service provider.

• Fourth: The low productivity and • Introduce holiday travel

poor quality starts affecting package for staffs working on a
other’s work and consequently permanent basis
the overall project output is
affected.
 Example
Risk Cause Risk Indicators Action
Ranking
Organizatio Stationed 2 • First: Resentment from family • Arrange meeting with the
nal : Staff overseas members start creeping. concern staff to appraise the
Morale for a situation and accordingly
significant • Second: Majority of the project initiate necessary action which
period time is diverted towards fixing the could range from consultation
personal problem. to deployment to home

• Third: Quality of work starts to • Allocate the backend support

deteriorate program whereby there are
options for the firm to deploy
• Fourth: The low productivity and people from one project
poor quality starts affecting destination to another
other’s work and consequently
the overall project output is
affected.
 Activity
Prepare the Risk Management Plan for the product
you want to develop.

Activity Time: 15 mins

 Time Value of money
• Most people know that money you have in hand now is more
valuable than money you collect later on.

• Future money is also less valuable because inflation erodes its

buying power and the opportunity cost.

• This is called the time value of money.

 Net Present Value
• Net present value is the present value of the cash flows at the
required rate of return of your project compared to your initial
investment.
• In practical terms, it’s a method of calculating your return on
investment, or ROI, for a project or expenditure.
• By looking at all of the money you expect to make from the
investment and translating those returns into today’s dollars, you
can decide whether the project is worthwhile.
 What do companies typically use it for?

• When a manager needs to compare projects and decide which

ones to pursue, net present value is one of the method used.
 How do you calculate it?

Sum of the present value of cash flows (positive and negative) for
each year associated with the investment, discounted so that it’s
expressed in today’s dollars
 How do you calculate it?

To do it by hand, you first figure out the present value of each year’s
projected returns by taking the projected cash flow for each year and
dividing it by (1 + discount rate)
 How do you calculate it?

So for a cash flow five years out the equation looks like this:

• If the project has returns for five years, you calculate this figure for
each of those five years.
• Then add them together.
• That will be the present value of all your projected returns.
• You then subtract your initial investment from that number to get
the NPV.
 NPV Analysis

If the NPV is negative, the project is not a good one. It will ultimately
drain cash from the business.

However, if it’s positive, the project should be accepted. The larger

the positive number, the greater the benefit to the company.
 Discount Rate

The discount rate will be company-specific as it’s related to how the

company gets its funds.
It’s the rate of return that the investors expect or the cost of borrowing
money.
If shareholders expect a 12% return, that is the discount rate the
company will use to calculate NPV. If the firm pays 4% interest on its
debt, then it may use that figure as the discount rate.
Typically the CFO’s office sets the rate.
 Practice Questions
A business starts with £5000 in the bank at the beginning of January.

The business expects to receive £6000 per month from Customers.

It expects to pay the following bills:

Wages: £2500 per month

Rent: £1500 per month
Electricity £1000 to be paid in April
Stock £10,000 to be paid in March.

Produce a cash flow forecast for the six months January to June.
And Comment on any action which might be desirable as a result of viewing the cash flow forecast
 Practice Questions
Jan Feb Mar Apr May Jun
b/f 5000 7000 9000 1000 2000 4000

Receipts 6000 6000 6000 6000 6000 6000

Payments:
Wages 2500 2500 2500 2500 2500 2500
Rent 1500 1500 1500 1500 1500 1500
Electricity 1000
Stock 10000
Total payments 4000 4000 14000 5000 4000 4000

c/f 7000 9000 1000 2000 4000 6000

 Practice Questions
A project has a start-up cost of £25,000 for equipment.

Receipts of £5000 per annum are expected at the end of year one and for a further
four years (i.e. for 5 years in total).

Assuming an interest rate of 5% p.a. calculate the NPV. Show all calculations
 Practice Questions
Present Value of expected Receipts=
5000/1.05 + 5000/1.052 + 5000/1.053 + 5000/1.054 + 5000/1.055
= 4761.9 + 4535.15 + 4319.19 + 4113.51 + 3917.63
= £21647.4

Present Value of Initial Investment = £25000

NPV = £25,000 - £21647 = -£3353 (negative)

What will be the effect if the interest rate is reduced to 1% p.a. (You are not
required to calculate a precise answer – just indicate whether the NPV will
increase or reduce – and why)
Thank You