Project Concepts Discussed

• Difference between Activity, Project & Project Management

• Program vs project management

• Strategic project management (Why, What, How) with examples

• Role of Time – Cost – Scope i.e. Project Triangle

• Development vs Deployment Project

• Project Life cycle vs SDLC

PROJECT LIFE CYCLE SOFTWARE DEVELOPMENT
LIFE CYCLE
 Project Life Cycle Issues
PROJECT SELECTION PROJECT PLANNING
• Project Identification •Work breakdown structure
(Brainstorming, SWOT analysis, •Basic Scheduling
Project possibilities) •Time/Cost tradeoffs
• Project appraisal •Resource loading
(Market, Technical, •Resource Leveling
Financial, Economic •Limited Resource Allocation
& Ecological Appraisal)
•Simulation
•Multi-criteria decision
making for selection

PROJECT
COMPLETION
• Accounting
• Audit &Report writing
• Handing over project to user
• Disbanding project team
• Disseminating learning's from project.
PROJECT
IMPLEMENTATION
• Project Monitoring and control
(Earned value analysis)
• Redefining priorities
 Life Cycle In IT Projects
V-Model of SDLC

Waterfall Model of SDLC

• Predictive Life Cycles: Waterfall model, V-Model

• Iterative and Incremental Life Cycle: Iterative Model

• Adaptive Life Cycle: Agile Model and Distributed Agile

 Iterative Model of SDLC

Prototype Model of SDLC

 When can I choose the waterfall process
model over agile methods?

one should choose to use the waterfall model

only when the requirements are well understood
and unlikely to change radically during system
development
 Why is Agile preferred Over traditional PM
• More flexibility: focuses more on the product than following a rigid
structure. Unlike the traditional approach, agile methodology isn’t linear or
follows a top-down approach.

• Transparency: Between the clients, decision makers and team from start to
end hence develop a healthy work environment.

• Ownership and accountability: Every team member shares ownership of

the project.

• Scope of feedback : allows constant feedback that is helpful in providing

better results with reduced time and cost overrun

• Project Complexity: Agile could be your best bet in terms of managing big
and complex projects.
 Why is Agile preferred Over traditional PM
• More flexibility: While working, if team members feel that there is a
need to experiment and try something different than as planned, the
agile methodology easily allows them to do so. The best thing about
this methodology is that it focuses more on the product than following
a rigid structure. Unlike the traditional approach, agile methodology
isn’t linear or follows a top-down approach.
• Transparency: The clients and decision makers are actively involved
from the initiation, planning, review, and in the testing part of a
product. The agile methodology facilitates team members to view the
progress right from the start to the end. This level of transparency
plays a significant role to constitute a healthy work environment.
 Why is Agile preferred Over traditional PM
• Ownership and accountability: In the agile methodology, every
team member shares ownership of the project. Each one of them
plays an active role to complete the sprint within the estimated time.
Unlike traditional project management, everyone involved in the
project can easily see view the progress from the beginning to an end.
• Scope for feedback: In the traditional approach, every single process
is clearly defined and planned from the beginning of the
project. Whereas agile management allows constant feedback that
is helpful in providing better output. They can respond to customer
requests as customers get to validate each iteration that enables them
to deliver a high-quality product or service within the delivery time.
• Project complexity: Owing to its linear approach, the traditional
project management methodology is majorly used for small or less
complex projects. Agile could be your best bet in terms of
managing big and complex projects.
 How to choose the correct approach?

• In reality, there is no ‘one-size-fits-all’ methodology suitable for

every project or organization. The choice to implement a methodology
largely depends on factors such as the nature of the project, size,
resources involved among others.

• Most of the times, smart project managers decide which

methodology to adopt during the beginning or initiation of the
project.
 Traditional Vs Agile Methodology
Characteristics Agile approach
Organizational structure Iterative
Scale of projects Small and medium scale
User requirements Interactive input
Involvement of clients High
Development model Evolutionary delivery
Customers are involved from the
Customer involvement
time work is being performed
When problems occur, the entire
Escalation management
team works together to resolve it
Traditional approach
Linear
Large-scale
Clearly defined before implementation
Low
Life cycle
Customers get involved early in the project
but not once the execution has started
Escalation to managers when problem arise

Model preference Agile model favors adaption Traditional model favors anticipation

Less focus on formal and directive

Product or process More serious about processes than the product
processes but high focus on product
Tests are planned one sprint at a
Test documentation Comprehensive test planning
time

Scrum master facilitates and the Project manager provides estimates and gets
Effort estimation
team does the estimation approval from PO for the entire project

Reviews are done after each

Reviews and approvals Excessive reviews and approvals by leaders
iteration
 Factor to assist choosing correct Project
Management Methodology (Old vs Agile)?

• Project requirements: Clear vs Unclear?

• Technology involved: Old vs New?

• Degree of Uncertainty: Low vs High?

• Availability of Resources: Easy vs Difficult/Limited

 Factor to assist choosing correct approach?
• some factors you can take into consideration while choosing the
right methodology for your project:
• Project requirements. Are the requirements clear?
• The technology involved: Is it new? project management
methodology is more appropriate if no new technology or tools are
involved. Agile methodology, being more flexible than the former
allows more space for more experimentation with the new
technology.
• Is the project prone to unwanted risks and threats? Considering the
rigid nature of the traditional methodology, it’s not advisable to go
this methodology.
• Another important factor is the availability of resources. The
traditional approach works best with big and complex teams and
projects. Whereas an agile team usually consists of a limited
number of experienced team members.
 Project Phases and the Project Life Cycle

• A project life cycle is a collection of project

phases that helps in defining:
• What work will be performed in each phase?

• What deliverables will be produced and when?

• Who is involved in each phase?

• How management will control/approve work produced in

each phase?

• A deliverable is a product or service produced

or provided as part of a project.
 Waterfall Methodology (s/w)
Waterfall project methodology involves a linear or rather a
sequential approach to project completion.

waterfall model lacks flexibility to accommodate customer changes

and that its linear stages to software development are not people-
centered, do not encourage customer collaboration and leave no room
for creativity nor innovation.
 Agile Methodology (s/w)

• more flexible and works towards rapid completion &

delivery of the project.
• The approach does not consider tasks/schedules, rather
it incorporates time-bound sprints that are iterative &
team based.
• The individual sprints have a delivery schedule as well
as list of deliverables, and these are planned right at the
beginning.
• The client and the business needs help define and
prioritize the deliverables.
• The methodology is flexible; hence the work can be
reprioritized based on the way the project has evolved.
 More on Project Life Cycle Phases

• In the early phases of a project life cycle:

• Resource needs are usually lowest.
• The level of uncertainty (risk) is highest.
• Project stakeholders have the greatest opportunity to influence the
project.

• In the middle phases of a project life cycle:

• The certainty of completing a project increases.
• More resources are needed.

• In the final phase of a project life cycle:

• The focus is on ensuring that project requirements were met.
• The sponsor approves completion of the project.
What uncertainties are encountered in
project management?

• Time required to complete a project

• Availability of key resources

• Cost of resources

• Timing of solutions to technological problems

• Actions taken by competitors

 Advantages of Using Formal
Project Management
Better control of financial, physical, and human resources.

• Improved:
• Customer relations,

• Quality & Reliability,

• Coordination, employee morale,

• Productivity,

• Profits,

• Lower/Shorter:
• Costs,

• Product development time.

PROJECT IDENTIFICATION
 Project Need Identification

• Receptive to new ideas: Internal/External source

• Vision of future growth

• Long term objectives

• SWOT analysis

• Preliminary project analysis

 Projects as an agent of Change

State B

Alternative
Projects
State A (Paths)
 Project Identification

OBJECTIVE

BRAINSTORMING
(SWOT, Emerging trends) Internal
External

ALTERNATIVES

Screenng Criteria

CANDIDATE
PROJECT
SELECTION
 Project Identification

OBJECTIVE

BRAINSTORMING
(SWOT, Emerging trends) Internal
External
Objectives
• To increase profits
• To minimize threats of losses
• To become more competitive
• ALTERNATIVES
To provide help after a disaster
• To train people in a new area
• To reduce pollution in Delhi
• Screenng entrepreneur
To become a successful Criteria

CANDIDATE
PROJECT
SELECTION
SWOT
 SWOT
STRENGTHS
• Experience and expertise
• Financial position
• Capital raising capability
• Industrial contacts
• Foreign collaborations
THREATS
• Competitors
• Poor state of the economy
• Outdated technology
• Unprofessional management skills
• New products and services
WEAKNESSES
• Newer unfamiliar technologies
• Inability to raise huge investments
• Lack of experience
• Lack of trained personnel
• Inability to forecast market trends
OPPORTUNITIES
• Emerging technologies
• New products with new markets
• New processes with better features
• Special financing schemes
• Government and other incentives
PROJECT SELECTION
&
FORMULATION
 Project Appraisal

• Market Appraisal
• Technical Appraisal
• Economic Appraisal
• Ecological Appraisal
• Financial Appraisal

A Feasibility Report considers all these

issues prior to project adoption.
 Market Appraisal

• Aggregate future demand: Demand estimation

• Market share

• Current and future competition

• Location and accessibility of consumers

• Technological scenario /Obsolescence

• Possible pricing options

Extent of
Capital/Lab
• Service mix and cost involved Intensity
• Concept, price, promotion and place

• Post project support Level of Customisation

 Technical Appraisal

• Engineering aspects: Preliminary tests and studies

• Choice of suitable production process

• Choice of appropriate machines and equipment

• Proper layout of plant and buildings

• Realistic work schedules

• Socially acceptable technology

• Effluents and waste disposal

• Locations: Availability of raw materials, power and other inputs

 Economic Appraisal

• Social cost -benefit analysis

• Direct economic benefits & costs in terms of shadow prices

• Impact of project on distribution of income in society

• Impact on level of savings and investments in society

• Impacts on fulfillment of national goals: Self sufficiency,

employment and social order
 Ecological Appraisal

• Environmental damage: Air, Water, Noise,

vegetation, human life etc.

• Restoration measures and cost major projects

which cause environmental damage like Power
plants, Irrigation schemes, Industries like bulk
drugs, chemicals and leather processing
 Financial Appraisal

Whether the project is financially viable ?

• Investment and phasing of the total cost
• Means of financing
• Projected profitability
• Breakeven point
• Cash flows in the project
• Investment worthwhile? Discounted Cash Flow Criteria
n
Ft
• Net present value Net Present Value (NPV) of project  A 0  
t 1 (1  k  pt )
t

• Internal rate of return

• Benefit /Cost ratio of discounted cash flows
• Payback period
• Discounted payback Non-discounted Cash Flow
Criteria
• Accounting Rate of Return (ARR)
• Level of risk (as evidenced by the worst and best values of costs and revenues)
 Parameters for Selecting Projects

• Is it in line with the organization strategy

• Case of multiple projects but limited resource:

• There is usually not enough resources to implement all projects.

• Does the firm has the skill and knowledge to complete the
project successfully?

• Parameters for selecting projects include:

• Focusing on broad organizational needs.

• Performing net present value or other financial analyses.

• Using a weighted scoring model.

• Implementing a balanced scorecard.

 Criteria for Screening Projects

• Similarity to
existing business
• Investment
• Expected life
• Rate of return
• Flexibility
• Risk
• Environment
• Likely profit
impact
• Payback
• Competition
NON-FINANCIAL FINANCIAL
& &
Non-numeric Numeric
 Project Portfolio Management Problems

• The Implementation Gap: The lack of understanding and

consensus on strategy among top management and middle-level
(functional) managers who independently implement the strategy.

• Organization Politics: Project selection is based on the

persuasiveness and power of people advocating the projects.

• Resource Conflicts and Multitasking: The multiproject

environment creates interdependency relationships of shared resources
which results in the starting, stopping, and restarting projects.
Portfolio of Projects by Type

FIGURE 2.2
 Benefits of Project Portfolio Management

• Builds discipline into project selection process.

• Links project selection to strategic metrics.

• Prioritizes project proposals across a common set of criteria,

rather than on politics or emotion.

• Allocates resources to projects that align with strategic direction.

• Balances risk across all projects.

• Justifies killing projects that do not support organization strategy.

• Improves communication and supports agreement on project

EXHIBIT 2.2

goals.
 A Portfolio Management System

• Selection Criteria

• Multi-Weighted Scoring Models

 Nonnumeric Selection Methods

• The Operating/Competitive Necessity:

• There is a need for the project..

• The Sacred Cow:

• There is a strong will to make the project
succeed
 Numeric Selection Methods

• Financial Assessment Methods

• payback period
• discounted cash flow etc.

• Scoring Methods
• unweighted 0-1 factor method
• weighted factor scoring method
 Weighted Scoring Model

• A weighted scoring model is a tool that provides a systematic

process for selecting projects based on many criteria.
• Steps in identifying a weighted scoring model:
1. Identify criteria important to the project selection process.
2. Assign weights (percentages) to each criterion so they add up to
100 percent.
3. Assign scores to each criterion for each project.
4. Multiply the scores by the weights to get the total weighted
scores.

• The higher the weighted score, the better.

Weighted Scoring Model for Project Selection
MORTALITY OF NEW PROJECT IDEAS

We start with large number of ideas and finally

after screening are left with very few projects.
One study indicated that out of 35 new
ideas only 1 made it to the final product
 Benefits of a Selection Model

• Applying a weighted scoring model to bring projects

closer with the organization’s strategic goals.

• Reduces the number of wasteful projects

• Helps identify proper goals for projects

• Helps everyone involved understand how and why a

project is selected
Major
Project
Proposal

FIGURE 2.4A
Risk
Analysis

FIGURE 2.4B
Priority
Analysis

FIGURE 2.6
Project
Selection
Process
 Project Selection Decision Process
• Step1: Proposal Submission
− Ensure the completeness of proposal

• Step 2: Assignment of external reviewers (division managers)

− Assign each proposal to one or more “peer reviewers”

• Step 3: Peer review (external reviewers/division managers)

− Division managers coordinate the process as coordinators

− Validate the peer review results

• Step 4: Aggregation of review results (division managers)

− Recommend proposal list for panel evaluation

• Step 5: Panel evaluation (department/division managers & experts)

− Suggest a funded list

• Step 6: Final decision (top management division managers)

Project/Portfolio Selection - Success Factors

• Centralized view/Overall analysis : have an inventory of current and

proposed significant projects

• Financial analysis: ROI, NPV, Payback, …

• Risk analysis: complexity, technology risk, cash flow, organizational

changes …

• Interdependencies among projects

• Accountability and governance: top management involvement,

business leaders accountable, using regular project portfolio reporting
Challenge of Project/Portfolio Selection

• Lack of knowledge to evaluate risks

• Lack of commitment of business leaders
• Lack of cross-functional communication
• Lack of a clear company strategy
• Lack of appropriate way to measure
project/portfolio benefits
• Lack of knowledge of portfolio management
techniques
Why bad projects are hard to
kill? Belief – The trap
Emergence of Belief

• Project champion initiates the belief which is contagious

• And more so, when people desire that output

Persistence of Belief

• People don’t come out against the popular belief

• Unanimity tends to silence the dissidents
• Difficult to stop a juggernaut

Consequences of Belief

• Failures are disregarded

• Normal procedures are shortened, reviews overlooked
• Belief in project  absence of clear decision criteria  ambiguous
information  wishful thinking
How to Avoid Blind Faith
Beware of Cheerleaders
• Believers
• Volunteer for the project
• Share Enthusiasm and support the cause
• No awkward misunderstandings that bring insights
• Warnings get ignored
• Inclusion of Skeptics in decision making roles
• Bring in fresh eyes as project moves on
Establish Early Warning Systems
• Adherence to Control Procedures and Criteria of Evaluation at all stages
Importance of Exit Champions
• Individual who bring to light object evidence that shakes the belief
• To be effective they need to
• Be directly involved in the project
• Have high degree of personal credibility
• Be fearless and ready to face hostility
 Thankyou

“A project is complete when it starts working

for you, rather than you working for it.”