IT Project Management

IT PROJECT MANAGEMENT
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COURSE DESIGN COMMITTEE
Chief Academic Officer Content Reviewer

Dr. Sanjeev Chaturvedi Dr. R Vijaylakshmi
NMIMS Global Access – Visiting Faculty, NMIMS Global
School for Continuing Education Access - School for Continuing Education
Specialization: Information Technology
TOC Reviewer TOC Reviewer

Ms. Brinda Sampat Kali Charan Sabat
Assistant Professor, NMIMS Global Visiting Faculty, NMIMS Global
Access - School for Continuing Education Access - School for Continuing Education
Specialization: Information Technology Specialization: Operations Management
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Author: Sanjive Saxena
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Reviewed By: Dr. R Vijaylakshmi

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Copyright:
2017 Publisher
ISBN:
978-93-86052-12-4
Address:
4435/7, Ansari Road, Daryaganj, New Delhi–110002
Only for
NMIMS Global Access - School for Continuing Education School Address
V. L. Mehta Road, Vile Parle (W), Mumbai – 400 056, India.
NMIMS Global Access - School for Continuing Education

C O N T E N T S
CHAPTER NO. CHAPTER NAME PAGE NO.
1 An Overview of It Project Management 1
2 Conceptualising and Initialising the It Project 27
3 People Management in It Projects 53
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4 Developing the Project Charter and Project Plan 73
Planning the Scope, Budget,

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Schedule for It Projects
6 Risk Management in It Projects 145
7 Allocating Resources to a Project 167

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8 Quality Management in It Projects 213

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9 Project Outsourcing 231
10 It Project Closure Management 255
11 Case Studies 273

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I T P R OJE CT M A N A G E M E N T
curricu l um
An overview of IT Project Management: What is a Project, examples of IT projects, what is Proj-

ect management, traditional project management, context of IT project management, nature of IT
projects, need of project management, project goals, project life cycle and IT development, project
manager, role of a project manager?
Conceptualizing and Initializing the IT Project: Project feasibility, request for proposal (RFP),
the-Business case, project selection and approval, project contracting, IT governance and the proj-
ect office.
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The Human Side of Project Management: Introduction, organization and project planning, the
project team, the project environment, Managing Change, Resistance and Conflicts
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Developing the Project Charter and Project Plan: Introduction, project management process,
project integration management, the project charter, project planning framework, the contents of a
project plan, the planning process, The Work Breakdown Structure (WBS), the linear responsibil-
ity chart, multidisciplinary teams.
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Planning the Scope, Budget, Schedule and Risk: Introduction, scope planning, project scope defi-
nition, project scope verification, scope change control. Developing the project schedule, project
management software tools, methods of budgeting, developing the project budget, improving cost
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estimates, finalizing the project schedule and budget, IT project risk management planning pro-
cess, identifying IT project risks, risk analysis and assessment, risk strategies, risk monitoring, and
control, risk responses and evaluation.
Allocating Resources to the Project: Resource loading, resource leveling, allocating scarce re-
sources to projects and several projects, Goldrattís critical chain, monitoring and controlling the
project, the project communications plan, project metric, project control, designing the control
system, the plan-monitor-control cycle, data collection and reporting, reporting performance and
progress, information distribution.
Managing Project Quality: Introduction, Quality philosophy, Process capability and Maturity,
Project Quality measurement plan
Outsourcing of projects and Project Closure: Introduction, project implementation, administra-

tive closure, project evaluation, project audit.

C h a
1 p t e r
An overview of IT Project Management
CONTENTS
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1.1 Introduction
1.2 What is a Project?
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Self Assessment Questions
Activity
1.3 Examples of IT Projects
Activity
1.4 Meaning of Project Management
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Activity
1.5 Traditional Project Management
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Activity
1.6 IT Project Management
Activity
1.7 Nature of IT Projects
Activity
1.8 Need of IT Project Management
Activity
1.9 Goals of IT Projects
Activity
1.10 Project Life Cycle and IT Development
Activity

2 IT PROJECT MANAGEMENT
CONTENTS
1.11 IT Project Manager—Roles and Functions

1.11.1 Need for an IT Project Manager
1.11.2 Technical Background for an IT Project Manager
Activity
1.12 Summary
1.13 Descriptive Questions
1.14 Answers and Hints
1.15 Suggested Readings & References
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An overview of IT Project Management 3
Introductory Caselet
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SOFTWARE MAINTENANCE PROJECT OF

INDIANRAIL.GOV.IN WEBSITE
In the year 2008, Indian Railways had set up an organisation

named Indian Railway Organisation for Alternate Fuels (IROAF).
The main purpose of IROAF is to co-operate with Council of Sci-
entific and Industrial Research (CSIR) to identify alternate sourc-
es of fuels to reduce the pollution levels arising out of usage of
diesel engines in train. Recently, as per the Government of India’s
guidelines and initiatives, the IROAF wants to develop a website
wherein the information pertaining to various departments is re-
quired to be displayed on the website. Thus, the scope of the work
for developing the website is restricted to the following major re-
quirements:
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The website must be in both the English and Hindi versions
and must be designed as per the guidelines of the government
of India.
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The website must be based on a database-driven approach
and contain a home page with the option to switch to either
Hindi or English version.
The approximate number of static and dynamic pages of a
website is 150.
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The website should have useful and updated content.

The website should be maintained properly, and any errors, if
found, should be removed. The website must be developed on
the LAMP platform with Linux as the operating system at the
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server level.
The website should be adequately protected against cyber
and virus attacks.
The website should be well-linked and easily navigable.
The website must have the search facility.
The website must present a professional look and feel to the
users.
The website must contain features such as overview, disclaim-
er, contact us, RTI information and the like.
The time for the development of the website and complete in-
stallation should not be more than 2 months.
Finally, the website was built. The project manager of IROAF

made sure that all the above mentioned requirements are fol-
lowed properly while developing the website and that the website
is built as per the quality standards specified by the government.

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learning objectives
After studying this chapter, you will be able to:

>> Describe a project and examples of IT projects
>> Explain the meaning of project management
>> Discuss about the traditional project management
>> Elucidate about IT project management
>> Describe nature of IT projects
>> Elaborate the need of IT project management
>> Discuss the goals of IT projects
>> Describe project life cycle and IT development
>> Explain the roles and functions of an IT Project Manager
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1.1 INTRODUCTION
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Information Technology (IT) is the watchword in today’s complex and
complicated life style of an individual. In fact, IT has pervaded, or to
put it bluntly, has invaded each and every aspect of our life, including
commercial and business dealings.
In a span of last few years, the field of information technology has

developed much. Now, it is an age of 4G network which has already
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started and is being implemented in some major cities of India. Bhar-

ti Airtel launched India’s first 4G service, using TD-LTE technology,
in Kolkata on 10th April 2012. Bharti Airtel 4G services are available
in Kolkata, Bangalore, Pune, Hyderabad, Visakhapatnam, Delhi and
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Chandigarh region. We can clearly see the impact made by 4G on the

social life, as now we can do video calling more conveniently and work
online more easily as compared to earlier technologies. Earlier, the
speed of Internet was a single digit speed like 1–4 mbps now it is 10–40
mbps, depending on the cities.
Suppose an individual wants to book his train ticket for travelling

from Mumbai to New Delhi, he will directly or indirectly be availing
the services of Information Technology, i.e, he will use the informa-
tion, which will be presented to him, and based on this information, he
will make the decision to purchase his ticket. Worth mentioning is the
fact that the desired objective in this activity is the objective of book-
ing a train ticket on a particular date and in a specific train, according
to his convenience.
When dealing with Information Technology, it is important to have a

clear concept about information. Information means processed data,
i.e., data on which some work has been done so as to ensure that what-
ever is being presented serves the objective of the concerned user.

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This chapter will discuss about IT project and the examples of IT proj-
ects. Further, the chapter will discuss the meaning of project manage-
ment and traditional ways of managing a project. The chapter will also
explain IT project management and the nature of IT projects. Next,
the chapter will discuss the needs of IT project management and goals
of IT projects. In the end, the chapter will explain the project life cycle
and the role of an IT project manager.
1.2 WHAT IS A PROJECT?

A project is an attempt to accomplish a particular objective through a
set of inter-related tasks by effective utilisation of resources. Projects
undertaken to develop software have various attributes that define
what the project is set out to do (the objective), the resources needed
for it, and the time required for completion are known as IT projects.
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In simple terms, an IT project is a project which utilises several com-
ponents of IT to form a system to cater to the needs and requirements
of a business enterprise, a public sector organisation such as railways,
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or a large commercial institution such as public sector or private sec-
tor banks, stock exchange and the like.
The different attributes of development of an IT project can be briefly

described as follows:
Time attribute: This is the most important attribute of a software
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development project. This is because the time attribute directly af-

fects the cost factor. In simple terms, the longer it takes to complete
a project, the greater it affects the cost of the project. A software
development project is dynamic in nature. Several changes may
take place in the project during its development. These changes
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may increase the delivery time of the project, which in turn is go-
ing to affect the cost. Hence, an attempt is always made to fix the
time of delivery of the software, which will ensure that the project
has a fixed start date and end date.
Purpose attribute: Any software that is being developed has a
purpose, which we can call as an objective. In other words, there is
a reason behind the development and execution of every software
project. The reason could be the need to move to a new technolo-
gy or venture into a new and promising domain. For example, an
IT company that earlier dealt with telecom software development
may switch to insurance sector software development as it finds
that field promising.
Ownership attribute: This simply means that every project has
an owner. In other words, every software project has a client or a
customer who will use the software product. A project may also
have several stakeholders having a direct or indirect interest in
the software being developed. Their inputs are also considered for
the project.

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Interdependent attribute: Every software project consists of a

number of interdependent tasks, with the output of one task form-
ing the input of another task or the output of one stage forming the
input of another stage.
Risks attribute: A project has an element of risk that poses a chal-
lenge for project managers and team leads. These risks may de-
velop into serious issues requiring mitigation strategies to handle
them properly; otherwise, these risks may take the form of time
and cost constraints of the project.
Assumption, dependencies, and constraints attribute: An IT
project operates on certain assumptions, dependencies, and con-
straints. For example, a project manager estimates certain param-
eters of the project, assuming the client will deal with all issues
and queries in a timely manner. The project manager cannot go
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ahead in the project until the client’s response is received. A con-
straint is any factor that places a limit on a project. A constraint
could be the requirement of the development team to work only
in night shifts because the client is located in a country with a dif-
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ferent time zone and interactions with him is crucial for the timely
completion of the project.
Resource attribute: This is another important attribute of a soft-
ware development project. All projects need resources without
which it cannot function. These resources may include hardware,
software, or manpower.
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self assessment Questions
1. The ______ attribute directly affects the cost factor.

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2. It is not necessary that every software project has a client or a

customer who will use the software product. (True/False)
Activity
Research about various public sector organisations around the

country and find out the reasons that forced them to adopt Infor-
mation Technology as the key driver for execution of their day-to-
day business processes. Prepare a report on your findings.
1.3 EXAMPLES OF IT PROJECTS

Having understood the basic concepts of IT projects, let us now dis-
cuss some examples of IT projects:
E-property registration project of Delhi government: This proj-
ect utilises IT to carry out the complete digitisation of land records

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and the details of the various houses that fall under the purview
of the revenue department of Delhi government. Currently, the
project is under the implementation phase, and once this project
is successfully implemented, it will be a boon to the buyers, the
government and the bank authorities. This project will ensure that
the buyer can see the complete details of the house that he or she
wants to buy so that legal hurdles, such as a house being sold to
two or three buyers at the same time, will not come up.
Linking of PAN number with the various services of the govern-
ment and several banks: Currently, this project is under imple-
mentation, though some phases of the project have already been
implemented. This is the project by Income Tax authorities in In-
dia wherein the PAN number of the individuals is linked to bank
accounts. This ensures that there are no evasions of tax when high
value transactions are done, especially in the case of purchase of
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property.
Linking of IRCTC website with the major airways of the world:
This is another project or in fact, this is an extension of an already
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existing project of IRCTC. The IRCTC website is upgraded to in-
clude the booking of flight in addition to booking of railway tickets
and also providing the option of getting a flight ticket when the
seat is unavailable in trains.
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3. The ______ number of the individuals is linked to bank

accounts.
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Activity
Research about various types of IT projects. Prepare a report on

your findings.
1.4 MEANING OF PROJECT MANAGEMENT

Management means the steps, the processes and the means and
mechanisms deployed to achieve business objective by utilising the
available resources effectively and efficiently. This means that the re-
sources which are being used in as a part of the management process
must be able to produce the intended impact and that the impact must
be at the right place and at the right time. If this condition is not ob-
served then the business objective will not be met. In other words, the
management has failed.
Let us take an example to bring out conceptual clarity. A software de-

velopment project for computerisation of the entire functioning of HR

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processes in an organisation is required to be executed within a time

frame of 3 months at a margin of 40%. This means that the project
must be executed with a profit of 40%. Thus, the business objective is
to execute the project within a timeline of 3 months and with a prof-
it of 40%. In order to attain this objective, the software development
organisation provides hardware, software and manpower resources
in the form of software developers, database administrator and the
like. These human resources must be able to function effectively and
efficiently to attain the objective. For example, the software developer
must write code which actually does the intended work and within the
timeline or else the objective will not be attained.
Having understood the basic definition of management, let us now

move to the process of functions of management. In general, the fol-
lowing are the functions of management:
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Planning: This is the process of determining the path to the des-
tination where we want to go. Thus, when the project manager
prepares a project plan for software development project, he takes
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ganisational structure and then determines what needs to be done
to finish the project on time.
Organising: This is the process of determining and allocating the
resources to the various tasks, activities and other works which
lead to the attainment of business objectives. Thus, the project
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manager prepares the work breakdown structure and on the basis

of that allocates the resources.
Monitoring: This is the process of taking an overview of the vari-
ous activities and the project execution process. Thus, the project
manager actively monitors, that is, takes periodic overview of the
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status of various activities of the project so as to know the direction

of the flow of the project execution process.
Controlling: This means deploying adequate measures to ensure
that the project is moving in the right direction. Thus, the project
manager deploys more resources in the project to ensure that the
project gets completed in time in case if there is a delay.
Tracking: This is the means and mechanism deployed to closely
monitor the activity or task that is showing large amounts of vari-
ation from the intended objective. For example, during the testing
process, if several defects are detected, then the source of the de-
fects is tracked so as to apply corrective and preventive actions.
Project management is the application of processes, methods, knowl-

edge, skills and experience to achieve the objectives of the project.
Figure 1.1 depicts the basic concept of project management:

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Planning
Monitoring & Contributing

Initiating
Executing
Closing
Figure 1.1: Depicting the Concepts of Project Management
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In Figure 1.1, you can see that software project management compris-
es several activities or components. A software development process
is referred to simply as a project. A project consists of a team of profes-
sionals who are given the task of completing a specific work. This team
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exists only till the completion of the project. For example, suppose an
organisation is developing software for a client. Once developed, the
software is to be installed on the computers and is expected to help
in streamlining the business processes of the client. For the organi-
sation, it will be a software development project for which it would
be creating a team of professionals comprising developers, technical
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architects, module lead, etc. — all experts in their own field contribut-
ing to the software development process. This team will be disbanded
once the software is delivered to the client and the people would be
re-inducted into other teams working on other software development
projects.
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4. Which of the following functions ensures the deployment of

adequate measures to ensure that the project is moving in the
right direction?
a. Planning
b. Organising
c. Monitoring
d. Controlling
Activity
Enlist the reasons of success and failure of IT projects.

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1.5 TRADITIONAL PROJECT MANAGEMENT

The software development industry is a dynamic industry. Techno-
logical advancements and pace of growth have compelled software
professionals to adopt innovative and new methods of developing
software. Also, the customer has become demanding, thereby forcing
IT organisations to deliver quality software products with shrinking
timelines. Customers demand timely delivery of multi-featured qual-
ity software products. As a result, the focus has now shifted to what
is called extreme programming, and with this paradigm shift, project
management practices have also shifted from traditional to Extreme
Project Management (XPM) practices.
XPM refers to the practice of managing projects that have a high de-
gree of uncertainty and complexity. Although these projects have a
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very high risk factor, their chances of success are also very high since
the focus of the XPM is on doing only what is essential for the suc-
cessful execution of the project and removing the non-essential com-
ponents.
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Traditional project management, on the other hand, is a formal and
structured form of project management where established procedures
and processes are followed for the development and execution of proj-
ects. Such projects have a high failure rate as the focus is on process-
es rather than on doing what is really essential. In traditional project
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management, the destination (planned result) is identified first and

then a path (plan) is built to get there. Then, the control measures are
used to reduce the variation between the planned result and what is
actually happening in the project.
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In case of traditional project management, the deadlines set for the

project are not so strict but flexible. In such projects, project manag-
ers are required to estimate the size of the project and the number of
functions in the software, as well as plan for the resources by using
traditional methods such as the function point count method and Con-
structive Cost Model (COCOMO).
Traditional projects have a very low complexity factor. This forces

the project manager in traditional projects to adopt systematic steps
to deal with the complexity. Traditional project management follows
a linear work approach where each individual is assigned a specific
job that needs to be completed. In the traditional approach to project
management, the individual will be responsible for the testing of the
software.
In the case of the traditional project management, the project manag-

er is responsible for planning, managing, and executing the project as
per its specifications. In traditional project management, procedures
are given precedence during the development of the software, and
thus there is hardly any scope of innovation and improvement.

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5. _________ refers to the practice of managing projects that have

a high degree of uncertainty and complex execution of tasks.
Activity
Using the Internet, find out new challenges in IT projects due to

globalisation.
1.6 IT PROJECT MANAGEMENT

It is very important to manage IT projects in a proper manner as huge
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amounts of costs and efforts are involved in their making. The failure
of an IT project may be quite a disaster for the organization involved.
The various challenges that come across while managing an IT proj-
ect are as follows:
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The most important issue and challenge is to manage the quality of
the deliverables from several vendors in the case of turn key proj-
ects. For example, the hardware vendor may depute a resource
for installing the hardware such as server and several client’s ma-
chine at the client’s site. The resource so deputed has very little
industry experience and fails to resolve the problems which are
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observed during the installation of the hardware machines. The IT

project manager must take appropriate actions in a timely manner
or else the project is likely to get delayed.
Another challenge is the issue of managing client’s server and oth-
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er issues related to data security. In most cases, when dealing with

the client’s server, precautions are invariably taken but sometimes
issues may crop up, putting the project manager in an embarrass-
ing position.
Other challenges include management of the cost, time and re-
sources of the projects. For example, in the case of turnkey proj-
ects, if the delivery by sub vendor is delayed and the prices of the
hardware equipment have gone down or have gone up, then in
either case this is a loss to IT organisation. Similarly, in the case
of International projects where the billing is done in terms of US$,
the payment is made on the basis of the prevailing dollar rate at
that particular date. Hence, if there is a delay and the rate of dollar
has gone down as compared to rupee then this is a loss. In other
words, cost management becomes the focal point for management.
Problem of determining the number of hardware equipment such
as routers, hubs, boosters and the like especially in the case of
networking projects. In other words, the issue of designing and
managing network is the greatest challenge. This is due to the fact

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that a network is designed keeping in mind several aspects most

of which are technical, such as network traffic, the number of data
packets received from the service provider and the like.
The other issues in the management of IT projects specially when
dealing with IT consultancy projects is the issue of gaining insights
into the various processes and working of the company wherein
the consultancy services are being provided by the IT organisa-
tion. In these types of consultancy projects, the greatest challenge
is the challenge of floating the idea of optimisation of the various
processes in the organisation.
The other challenges and issues are related to those projects
wherein offsite support is provided by the IT company. In these
types of projects, the greatest challenge lies in the fact of the In-
ternet connectivity. In most of the cases, the speed of the Inter-
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net becomes the greatest challenge. Also, the transference of a
file carrying large amounts of data such as data from satellite also
becomes a challenge due to speed issues. Thus, new means and
mechanisms must be devised to get the work done.
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The other issue and challenge which the managers face in IT proj-
ects is the issue related to work timings. In most projects, the team
is split across the globe, thus, there are time differences in the
team. Due to this, the team members of either team may require to
work at odd times. But, still they have to ensure whether they have
posted their status in the e-room, posted their code in the configu-
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ration management tool, and communicated the changes through

mail or any other system.
The other common issues which the managers face are related to
the compatibility of the software. For example, a file sent by a cli-
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ent from the iPad is in a different format and when the developer
tries to open the file on an Android phone, it does not open due to
the difference in the file format. This is, nowadays, becoming the
greatest challenge for the managers due to influx of several new
hardware devices such as palmtop, tablets, google glass, and other
innovations in hardware. They have their own file formats which
pose compatibility issues with the existing devices.
6. The challenge in managing IT projects is the management of

the _____ especially in turn key projects as well as in time and
material projects.
Activity
Visit an IT organisation and discuss the challenges faced by manag-

ers while handling projects.

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1.7 NATURE OF IT PROJECTS

IT projects are known for their unique nature, which means that IT
projects have established a separate vertical which hitherto has not
been known in projects or other fields. Perhaps this is due to all round
rampant changes in the IT industry. There are changes in require-
ments, changes in design, changes in management aspects, changes
in client representative and the like. In the same context, IT projects
are classified into different types of projects depending on the nature
of the work that is required in the project. Further, an IT project may
start with one type of the project but later on, due to changes it may
fall into other categories. Thus, it can be said that it is the change that
drive an IT project. The different types of IT projects are as follows:
Turnkey: These are the IT projects in which the customer hands
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over the entire contract for implementing an IT project. The scope
of the project includes everything related to the successful imple-
mentation of the project. Thus, an IT project, which has been clas-
sified as a turnkey project, includes the procurement of hardware,
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procurement of basic software for the machines including the da-
tabase, training the staff members and so on. In other words, a
complete revamp of the existing business process may be required.
An example of a turnkey project is a public sector telephone system
which has been running manual system of operations and wants
to go for complete computerisation. The contract can be granted
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to the company who will provide hardware, develop the software,

implement the system, provide the training to the staff members
and above all attend to various problems in the software as a part
of maintenance contract after implementation of the project.
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Thus, in the case of turnkey projects, the span of management

control is quite vast as several aspects of the project are required
to be managed simultaneously. For example, the team for develop-
ing the software is required to be managed separately; similarly,
a team for hardware procurement and installation is required to
be managed independently. Also, depending on the scope of the
project, turnkey projects may have several project managers and
all of them are responsible for the successful completion of their
own vertical.
Fixed bid: These are the projects for which the customer has a
limited scope, which means that the work to be done is specific
and for which the specified amount is paid by the customer. For ex-
ample, if the customer floats a tender for development of website
which will cater to online shopping by customers and for this spe-
cific work the customer will pay a certain amount of money. Thus,
in fixed bid projects, the task is specific and so is the amount. Also,
the project manager owns the responsibility for the successful
completion or failure of the project.

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Time and Material Dependent: These are the projects in which

the time duration is fixed and within this time duration, the cus-
tomer will be billed against the type of the work and the time taken
for fixing the work or issues which arise in the developed proj-
ect. These projects are generally projects under maintenance. In
these projects, generally 2-3 persons are stationed at the client’s
site or alternatively they provide offsite support to the client. In
these types of projects, generally, there is an account manager who
oversees the billing of the tasks carried out by the stationed team
members.
Onshore and Offshore: These are the projects in which the scope
of the work is split between two distant locations, i.e. a part of the
work is to be done at the client site and the other part of the work
is to be done at the developers site. The project itself may be fixed
bid or time and material project.
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Lab on hire: These are the projects in which the client pays for
utilising the resources of the company for a specified period of
time. The client hires the resources like computers, servers and
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fixed number of persons from an IT company and pays according
to the amount of time the resources have been used.
7. In the fixed bid projects, the cost of the project is fixed along
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with timelines. (True/False)
Activity
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Explore the Internet and find out the various types of IT projects
existing in the industry. Prepare a report on your findings.
1.8 NEED OF IT PROJECT MANAGEMENT

The following points highlight the need and importance of IT project
management in organisations:
Project management integrates the various components of a proj-
ect. This means that an IT project (or any project for that matter)
needs the support of various units. Without these units, no project
can be completed. For example, a software development project
needs the support of human resources, administration, tools and
techniques, stakeholders, etc. Therefore, project management
helps to co-ordinate and integrate these different units to ensure
that the project is completed on time.
Project management separates the two main verticals of any proj-
ect, viz., technical aspects and the managerial aspects. It is well

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known that technical people are focused on technical aspects

of the project. As a result, they often lose track of time and miss
deadlines. On the other hand, management-oriented people de-
ploy time management controls to ensure that the IT project is
completed within the given time. Note that every IT project is time
bound, which means that it is required to be completed within the
agreed time frame.
Project management uses the experience of earlier project exe-
cutions and incorporates those practices into the current project
so that both time and cost can be saved. For example, while con-
ducting causal analysis for defect injection, the issues faced in the
earlier projects can be addressed so that they do not occur in the
current project.
Project management ensures that each stakeholder involved in
S
the development of the software knows his/her role and respon-
sibilities. For example, software testers are made aware of the
testing methodology, the tools to be used for testing, and so on.
Therefore, the roles that each team member is expected to play in
IM
the development and execution of the project are clearly defined
at the outset.
Project management provides clarity on various aspects of the
project. This means that the various departments and people in-
volved in the project have a clear picture of its current status. For
example, in the case of a software development project, each mem-
M
ber of the project team will know the number of programs that
have been developed so far, the number of persons working on the
project, when a particular resource is likely to be released, etc.
Effective project management allows an organisation to establish
N
effective relationships with the client so that the future business

opportunities can be capitalised. This is possible only through ex-
cellent project management techniques and constant interactions
with the client. Efficient project management also provides proof
of professionalism and commitment to excel in all aspects of the
project. This in turn will be reflected in the production of quality
software at reasonable costs and to the satisfaction of the client or
customers. So project management benefits everyone. The client
gets quality software and the organisation is able to make profit in
the process.
Project management enables project managers to share their ex-
periences with the team members and thus assists the team mem-
bers in the development of their own expertise.
Effective project management helps to reduce the chances of proj-
ect failure. This is because managers can use their experience to
identify risks, develop risk mitigation programs, and use metrics to
predict a favorable outcome of the project. For example, by testing
the security of a project through ethical hacking, the project man-

n o t e s
ager is able to anticipate the likely course of action to be undertak-

en in case any areas of vulnerability are found. By anticipating the
areas of concern, the organisation is able to not only prevent loss
but also provide a boost to the image of the organisation.
8. Project management separates the two main verticals of any

project, that is, _____ aspects and the _________ aspects.
9. Project management ensures that each stakeholder involved
in the development of the software knows his/her role and
responsibilities. (True/False)
S
Activity
Determine the differences between IT project management and

project management of other fields. Prepare a report with exam-
IM
ples to support your findings.
1.9 GOALS OF IT PROJECTS

A project goal can be defined as a series of steps that are required to
be executed in order to reach a certain point during the execution of
M
the project. On reaching to this particular point, it is construed that

the goal has been achieved. Note that an IT project may have multiple
goals, and when all these goals have been achieved within the project
constraints, the project is said to have been successfully executed. The
N
goals of a project include the following three components:

Cost: The cost of a project defines its budget. One of the main tasks
of project management is to ensure that the project must be com-
pleted within the budget allocated to it.
Time: This refers to the duration of the project. In other words, it
defines the beginning and end dates of the project, that is, the peri-
od during which all work related to the project must be completed.
Scope: Scope defines the requirement towards establishing a proj-
ect time line by setting project goals and allocating resources to it.
Consider the following example to better understand the concept of

project goals in an IT project management scenario:
The goal of the executive management is to execute the project
with a margin of 40%, i.e., to make a profit of 40% on the project.
The goal of the project manager is to ensure capacity utilisation of
85%. This means that 85% of the resources allocated to the project
are actually in use while the remaining 15% are involved in pro-

n o t e s
viding support for various other tasks related to the project, that is,
they are involved indirectly on the project, such as the documenta-
tion team or the administration team.
The goal of the project manager is to ensure that the scope of the
project should not be more than 10%, i.e., the increment in the re-
quirements of a project should not be more than 10%.
The goals and objectives of a project are defined on the basis of vari-
ous factors. These factors can be listed as follows:
Business objectives of the organisation: This is one of the most
important factors taken into consideration for formulating proj-
ect goals and objectives. Project goals are derived on the basis of
organisational goals. An example of an organisational goal could
be to increase the overall productivity by 2% in Oracle-based proj-
S
ects. Project productivity goals are set on the basis of the overall
goals of an organisation, for example, a new Oracle-based project
of high complexity may have productivity goal as 1.5%; whereas,
another Oracle-based project of relatively low complexity may
IM
have a project goal as 3%.
Strategic goal of the organisation: This is another important fac-
tor in the formulation of the project goal. For example, the strate-
gic goal of an organisation could be to venture into a new domain
in order to expand and diversify its business. In such a case, the
organisation may decide to run the project on a ‘no profit-no loss’
M
basis.
Market dynamics of the commercial world: Market dynamics
plays a crucial role in deciding the goals and objectives of a proj-
ect. For example, due to recession and low business volume, an or-
N
ganisation may be forced to develop software at a very low margin

or at a loss by inducting novices in the project.
New technology available in the market: Project goals may be
reviewed when a new technology is introduced and adopted by an
organisation. The organisation may require some time to get fa-
miliar with the features of a new technology and incorporate them
in the project.
Rate of inflation and value of the currency for payment: This is
one of the most important factors taken into account while decid-
ing the goals and objectives of a project, especially international
projects. If the conversion rate of the currency in which payment
for the project is to be made is very low, it will have an impact on
the profitability of the project; if the conversion rate is very high,
it will generate enough profit, but it will be coming with additional
risk (for example, the expenses may also increase due to the con-
version rate). In addition, the rate of inflation plays a crucial role
in setting the project objectives and goals.

n o t e s
10. ______ defines the requirement towards establishing a project

time line by setting project goals and allocating resources to it.
11. Market dynamics does not play a crucial role in deciding the
goals and objectives of a project. (True/False)
Activity
Research and find out some more goals that must be attained by
every project.
PROJECT LIFE CYCLE AND IT
S
1.10
DEVELOPMENT
For developing an IT project, one is required to follow a step by step
IM
approach, which means that when it comes to the development of a
project, there are stages which one is required to execute in a system-
atic manner. An IT project too has its life cycle consisting of various
stages. These stages can be listed as follows:
Project Initiation: This is the first stage where a decision is made
as to whether to take up the project or not. This decision is taken
M
after considering various factors. Moreover, organisations arrive

at a decision after considering a number of questions. Some of
these questions are:
Will it be feasible to bid for the project or approach the client?
N
Does the organisation have enough resources and infrastruc-

ture in terms of software development tools, testing tools, etc.?
Does the organisation have domain expertise to execute the
project?
What will be the financial benefits and Return On Investment
(ROI) of the project for the organisation?
Only when the organisation is confident that it will profit by un-
dertaking the venture will it proceed to the next step, which is
preparation of documents such as Request For Proposal (RFP)
and Request For Quotation (RFQ). The project initiation phase
ends when the contract for development of the software is award-
ed to the organisation.
Project Planning: It involves creating a set of plans to help guide
the project team through the execution and closure phases of the
project. In this stage, the project charter, project schedules, WBS,
etc., are prepared. The plans created during this phase will help to
manage time, cost, quality, risk and other issues.

n o t e s
ProjectDesign: This stage is concerned with the content design

and procurements needed to implement the project.
Project Testing: This is the stage where the prototype of the proj-
ect design is checked on the basis of the result obtained. Any de-
bate and discussion must be on the basis of the outcome and how
the defects or shortcomings are removed. For example, it may be
debated as to whether it is the outcome of a particular module or
not. If the project is to be outsourced, should it be done at the be-
ginning of the project (when it wouldn’t cost so much) or in the
middle stages?
Project Development: This is the stage where the actual execu-
tion of the project takes place once the testing is completed.
Project Closure: This is the final stage of the project life cycle.
In this stage, the project is formally closed and a report of its over-
S
all level of success is sent to the sponsor.

IM
12. RFQ stands for
a. Reply For Quotation
b. Request For Quotation
c. Request OF Quotation
M
d. Reply OF Quotation
13. In which stage, the prototype of the project design is checked
on the basis of the result obtained?
a. Project Planning
N
b. Project Design
c. Project Testing
d. Project Closure
Activity
Research and find out all the steps of Software Development Life
Cycle (SDLC).
IT PROJECT MANAGER—ROLES AND

1.11
FUNCTIONS
In simple terms, a project manager is a designated person who is re-
sponsible for ensuring that project objectives are met within a specific
time frame. A project manager is provided with a set of resources that
are to be utilised in an efficient manner for executing various project

n o t e s
activities and tasks. Further, he/she needs to report to the top man-
agement regarding the status of project activities with respect to the
consumption of resources.
The role of an IT project manager is to ensure that an IT project gets

completed within the specified timeline by utilising the available re-
sources. Here, it should be noted that there are various components of
an IT project, such as networking, software, hardware and manpow-
er. An IT project manager is required to manage and co-ordinate all
these components in an effective manner. Figure 1.2 depicts the roles
and responsibilities of an IT project manager:
Time
Management
Strategy Funding
S
Customer Communications
IM
Team Work Quality
Project
Management
Planning Product
Status
Product Versus
M
Monitoring Project Needs

User Needs Changes
N
Figure 1.2: Roles and Responsibilities of IT Project Manager

Source: http://duch.mimuw.edu.pl/~zbyszek/prince/cd/content/components/ch4.htm
Let us now differentiate between an IT project manager and the proj-

ect manager of a different field in the following points:
An IT project manager needs to possess utmost skills and neces-
sary qualities to manage various components of a project; where-
as, a project manager of other fields is required to manage only the
scope of the project as the requirements in other types of projects
are fixed. For example, in the case of a project, say of flyover con-
struction, the requirements are fixed and do not change. Thus, the
project can be executed within the scope of defined requirements.
This is in sharp contrast to an IT project manager wherein the
requirements change at frequent intervals, which, in turn, have a
major impact on other project activities or tasks. Thus, an IT proj-
ect manager has to demonstrate utmost skills to manage a project.
The scope of an IT project manager gets changed due to the vary-
ing nature of IT projects, whereas in the case of project managers
of other fields, the scope does not change. For example, a mere

n o t e s
maintenance project may get converted into a full blown IT project

resulting in change in the scope of the project and the role of the
manager. This is not possible in the case of an airport construction
project or housing project wherein project requirements are fixed.
In the case of IT projects, requirements are dictated by customers.
Thus, the project manager is necessarily required to maintain a
log of all changes in requirements by means of an excellent con-
figuration management system. This is not possible in the case of
projects of other fields. For example, in the case of flyover con-
struction project, customers are the persons who would be using
the flyover and hence do not contribute to the requirements part
of the project.
An IT project manager must be well aware of software tools being
used in the project. For example, he must be well aware of the
S
operations of the tool such as MS Project, MS outlook, Email Soft-
ware, Webinar software, Netmeeting Software, VSS software, etc.
In the case of project managers from other fields, knowledge of
basic tools such as e-mail and MS Office is required.
IM
An IT project manager is required to manage and coordinate teams
stationed at different locations for the completion of the project.
Thus, his job becomes more challenging. In the case of a non-IT
project manager, this is not the scenario. The project manager may
have to manage two different projects simultaneously, but the IT
project manager is required to manage teams of the same project.
M
1.11.1 NEED FOR AN IT PROJECT MANAGER
In the previous section, you have studied the role of an IT project

N
manager. Let us now understand why an IT project requires a project

manager from the following points:
IT projects, as discussed in the previous units, are different types
of projects wherein the project scope is vast including network-
ing, software, hardware, acquisition, etc. All these different com-
ponents need to be co-ordinated and moved in the same direction
to ensure that the project gets completed on time. An IT project
manager ensures that different components are co-ordinated and
directed towards the accomplishment of project objectives.
As the scope of an IT project is vast, there should be transparency
on various aspects of a project for stakeholders. For example, a cli-
ent may wish to know about the status of hardware procurement
for turnkey projects. In such a case, it is the responsibility of a
project manager to provide the status of project components from
time to time and raise issues, if any.
In order to ensure that the project gets completed within the spec-
ified timeline, it is the project manager who schedules different
activities of the project. In the absence of a timeline, the project

n o t e s
cannot be completed within the time period. In other words, an IT

project manager is responsible for deciding boundaries for each of
the project components including the team members of the proj-
ect.
As IT projects are known for their frequent changes, they are
prone to be delayed on account of these changes. Thus, a project
manager needs to apply management controls to bring the project
under the limits so that it gets completed within the timeline.
Finally, a project manager is responsible for successful project clo-
sure irrespective of the challenges and constraints in the project.
1.11.2 TECHNICAL BACKGROUND FOR AN IT PROJECT

MANAGER
S
The previous section discussed the need for an IT project manager.
In addition, an IT project manager must have the necessary skills to
manage an IT project. However, despite having exceptional manage-
ment skills, an IT project manager must have a technical background
IM
to lead the project team. The following points explain why an IT proj-
ect manager should have a strong technical background:
Some technical aspect is invariably involved in all IT projects. By
having strong technical knowledge, an IT project manager can re-
solve any issues that may arise during project execution. For ex-
ample, when arriving at the estimations for the development of a
M
code for a particular functionality, the developer quotes a figure

which appears to be quite high. In this case, if the project manager
is from a technical background, he/she can question the validity
for the calculated figure.
N
An IT project manager with a strong technical background is able

to better understand the requirements of the client as well as of
the team members. Thus, a strong technical background can help
the project manager to easily execute various project activities.
By having a technical background, a project manager can assist
the project team in doing supporting functions such as software
testing and configuration management. In addition, technical
background can help the project manager at the time of arriving
at the various estimations of the project.
14. An IT project manager with a strong _____ background is able

to better understand the requirements of the client as well as
team members.

n o t e s
Activity
Find differences between an IT project manager and a project man-

ager of a construction project. Prepare a report on your findings.
1.12 SUMMARY
A project is an attempt to accomplish a particular objective through
a set of inter-related tasks by effective utilisation of resources.
Management means the steps, the processes and the means and
mechanisms deployed to achieve business objective by utilising
the available resources effectively and efficiently.
Project management is the application of processes, methods,
S
knowledge, skills and experience to achieve the objectives of the
project.
The most important issue and challenge in an IT project is to man-
IM
age the quality of the deliverables from several vendors in case of
turn key projects.
An IT project (or any project for that matter) needs the support of
various units. Without these units, no project can be completed.
A project goal can be defined as a series of steps that are required
to be executed in order to reach a certain point during the execu-
M
tion of the project.
key words
N
Extreme Project Management (XPM): It refers to the practice

of managing projects that have a high degree of uncertainty and
complex execution of tasks.
Information Technology: It is the technology that uses infor-
mation from various sources to generate the desired objective
of an individual.
Onshore and Offshore: It refers to the projects in which the
scope of the work is split between two distant locations, i.e. a
part of the work is to be done at the client site and the other part
of the work is to be done at the developer site.
Project: It refers to an attempt for accomplishing a particular
objective through a set of inter-related tasks by effective utilisa-
tion of resources.
Software: It is an intangible component of Information Tech-
nology that is responsible for carrying out various tasks pertain-
ing to various components of IT, such as networking.

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1.13 DESCRIPTIVE QUESTIONS

1. What do you understand by an IT project? What are different
attributes of a project? Give examples of some IT projects.
2. Discuss the meaning of a project management. How is it different
from traditional project management?
3. Enlist the challenges generally faced while managing an IT
project.
4. Describe the various types of IT projects.
5. Discuss the need of managing IT projects.
6. Explain the role of an IT project manager in handling a project.
1.14 ANSWERS AND HINTS
S
ANSWERS FOR SELF ASSESSMENT QUESTIONS
IM
Topic Q. No. Answers
What is a Project? 1. Time
2. False
Examples of IT Projects 3. PAN
Meaning of Project Man- 4. d. Controlling
M
agement
Traditional Project Man- 5. Extreme project management
agement (XPM)
IT Project Management 6. Cost
N
Nature of IT Projects 7. True

Need of IT Project Man- 8. technical, managerial
agement
9. True
Goals of IT Projects 10. Scope
11. False
Project Life Cycle and IT 12. b. Request For Quotation
Development
13. c. Project Testing
IT Project Manager— 14. Technical
Roles and Functions
HINTS FOR DESCRIPTIVE QUESTIONS

1. An IT project is a project that utilises several components of IT
to form a system that will cater to the needs and requirements
of a business enterprise, a public sector organization, such as
railways, or a large commercial institution such as public sector

n o t e s
or private sector banks, stock exchange and the like. Refer to

Section 1.2 What is a Project? and Section 1.3 Examples of IT
Projects.
2. Management means the steps, the processes and the means and
mechanisms which are deployed to achieve business objective by
utilising the available resources effectively and efficiently. Refer
to Section 1.4 Meaning of Project Management and Section
1.5 Traditional Project Management.
3. It is very important to manage IT projects in a proper manner
as huge amounts of costs and efforts are involved in their
making. The failure of an IT project may be quite a disaster
for the organization involved. Refer to Section 1.6 IT Project
Management.
4. IT projects are known for their unique nature meaning that
S
IT projects have established a separate vertical which hitherto
has not been known in projects or other fields. Refer to Section
1.7 Nature of IT Projects.
IM
5. Project management integrates the various components of a
project. This means that an IT project (or any project for that
matter) needs the support of various units. Refer to Section
1.8 Need of IT Project Management.
6. In simple terms, a project manager is a specifically designated
person who is responsible for ensuring that project objectives
M
are met within a specific time frame. Refer to Section 1.10 IT

Project Manager—Roles and Functions.
1.15 SUGGESTED READINGS & REFERENCES

N
SUGGESTED READINGS
Schwalbe, K. (2010). Information Technology Project Manage-
ment. Boston, MA: Course Technology/Cengage Learning
Soriano,J. L. (2012). Maximizing Benefits from IT Project Man-
agement: From Requirements to Value Delivery. Boca Raton: CRC
Press
E-REFERENCES
IT Project Management for Beginners. (n.d.). Retrieved March
14, 2017, from https://resources.workfront.com/project-manage-
ment-blog/it-project-management-for-beginners
About Us. (n.d.). Retrieved March 14, 2017, from https://www.pmi.
org/about/learn-about-pmi/what-is-project-management
What is IT Project Management? - Definition, Tools & Examples.
(n.d.). Retrieved March 14, 2017, from http://study.com/academy/les-
son/what-is-it-project-management-definition-tools-examples.html

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M
IM
S
C h a
2 p t e r
CONCEPTUALIsING AND INITIALIsING THE IT PROJECT
CONTENTS
S
2.1 Introduction
2.2 Information Technology Project Methodology (ITPM)
IM
Activity
2.3 Project Feasibility Study
2.3.1 Importance of Feasibility Study
2.3.2 Types of Feasibility Study
2.3.3 Conduct of Feasibility Study
M

Activity
2.4 Request For Proposal (RFP)
N
Activity
2.5 Selection of Proposal
Activity
2.6 Project Contracting
Activity
2.7 The Business Case
2.7.1 The IT Value Chain
2.7.2 Project Goal
2.7.3 Developing the Business Case
Activity
2.8 Project Selection and Approval
Activity

CONTENTS
2.9 IT Governance
Activity
2.10 Project Management Office
2.10.1 Tracking Global Project Execution through Project Management Office
Activity
2.11 Summary
S
IM
M
N

CONCEPTUALIsING AND INITIALIsING THE IT PROJECT 29
n o t e s
COMPUTERISATION OF LAND RECORDS IN DELHI
Information technology has pervaded each and every aspect of

our life, be is social, educational, business, research, or any other.
Now, even Indian government has started utilising the benefits of
IT in its day to day operations. For example, after the successful
implementation of IT in banking operations, the government of
Delhi conceived the idea of computerising all the land records in
Delhi.
The need for computerisation of land records in Delhi has aris

en from the following issues and concerns observed since many
years:
The Delhi government was unable to garner much revenue
S
from the sale and purchase of land from the buyers and sell
ers.
There were cases wherein a property was sold to more than
IM
one customer on forged property documents and that too
without following a proper registration process.
The buyers were always in a dilemma as to whether the prop
erty they are buying is free from any pending legal dispute.
The banks too were hesitant to provide loans to the prospec
tive buyers on account of the fact that it was too cumbersome
M
to determine the real status of the property in question, that

is, the process of determining the status of the property was
too long and also it was not possible to verify the right owner
of the property. There have been cases wherein the property
N
dealers have sold the property to more than one customers

resulting in a legal dispute on property.
Once the property was in dispute, the Delhi government could
not generate any revenue from the property on account of
property tax or on account of sale and purchase of the prop
erty as no registration fee and stamp duty could be derived
from the property as it could not be sold unless and until the
property is free from any legal issues.
Thus, considering the need of the prospective customers and the

loss of revenue due to non-availability of the data pertaining to the
land or the property, a need was felt to computerise the transac
tions of the property with the help of specially developed software
to handle the details of the property such as chain of documents
from the initial owner to the present incumbent; the amount of
taxes which have been paid for the property, the registration de
tails and the like. In addition to the development of the software,
it was also proposed to digitalise the land records so that the en

n o t e s
tire chain of records is available to the bankers, customers and

other stakeholders.
Consequently, based on the needs and requirements of the state

government of Delhi, the Municipal Corporation of Delhi, several
public and private sector banks and the buyers and sellers of the
property, a feasibility study was conducted to determine the via
bility of having such a computerised system that will cater to the
needs and requirements of various stakeholders.
Based on the results of feasibility study, it was decided to go ahead

with the project for computerisation of land records in Delhi. Sub
sequently, the land records project was awarded to Land records
Information and Systems Division of National Informatics Centre
(NIC) a central government unit.
S
The proposed system would allow the entry of all the basic infor
mation of the project such as mutation details, traceability of the
owners of the land and other information under the various sec
IM
tions of Delhi Property Registration Act.
M
N

n o t e s
learning objectives

>> Explain about Information Technology Project Methodology
(ITPM)
>> Discuss the project feasibility study
>> Describe Request for Proposal (REP)
>> Explain the selection of proposal
>> Discuss the process of project contracting
>> Describe how to develop business case
>> Describe the process for project selection and approval
>> Discuss the IT governance
S
>> Explain the project management office
2.1 INTRODUCTION
IM
The advent of information technology has ushered in a new era that
has brought a global change in almost all the arenas of life. Comparing
the world 40 years ago and the manner in which business processes
were carried out manually with the present scenario—it’s an entirely
different world. For example, to get our train tickets booked, we would
M
stand for long hours in a queue and after inching towards the reser
vation counter, we would find that the reservation in charge has just
disappeared for a tea break or is loitering outside. Moreover, if passen
gers book their tickets through travel agents or brokers they have to
bear additional cost of brokerage.
N
But with the advent of information technology and the power of the
Internet, today things are different. Now, the passenger is not bound
ed by an inefficient system. Passengers can book their tickets from
the comfort of their home with the help of the Internet on computing
devices such as PCs, laptops, smartphones, etc.
Thus, the information technology has transformed the means and

mechanism for carrying out business and other day-to-day operations
of the organisation. Today, global organisations are increasingly de
pendent on large-scale applications of IT as it is convenient and saves
cost.
This chapter will discuss about Information Technology Project Meth

odology (ITPM). Further, the chapter will discuss the project feasibility
study and Request For Proposal (RFP). The chapter will also explain
about selection of proposal, project contracting, business case, project
selection and approval. Next, the chapter discusses IT governance.
In the end, the chapter explains about the project management office.

n o t e s
INFORMATION TECHNOLOGY PROJECT

2.2
METHODOLOGY (ITPM)
Information Technology Project Methodology (ITPM) is a measure
with the help of which we can plan, create and layout the responsibili
ties for finalising the objectives of an organisation. It is a strategic plan
to manage and control IT projects. It includes the task like overseeing
the installation of hardware and software in the organisation, upgrad
ing the network, managing virtualisation and cloud computing.
ITPM has five phases, which are as follows:

Conceptualisation and initialisation: This is the first phase of
ITPM and it focuses on the overall goal of the project. It is used
not only to define the scope of the project but also to determine the
S
success of the project. It also forecasts the total cost and benefits
of the project. Based on this forecast, a business case is made. A
business case is a structured report that consists of all the reason
ing required for launching a project. The senior management then
IM
decides whether to continue or fund the project or not.
Developing the project plan: The second phase of ITPM is to de
termine the project character, which is a small document that con
sists the objectives of the project, how the project will be carried
out and the stakeholders involved in the project. It also finds out
how the project can be organised, how the funding for the project
M
will be approved and how the project will be implemented. It pro

vides all the strategic details that will be required to carry out the
project.
Executing and controlling the project: The third phase of ITPM
N
determines how to carry out the project plan and manage the pro
cess to achieve its goal. In this phase, a particular plan and design
tool is used to define the System Development Life Cycle (SDLC)
of the project.
Closing the project: When the project is developed, tested and in
stalled, a complete and formal project report and presentation is
made to verify that all the project deliverables are completed as
per the scope of the project. At this phase, the final cost of the proj
ect is determined.
Evaluating the project success: In this phase, the project man
ager reviews the whole process and finds out all the positives and
negatives of the project. He finds out what went wrong during the
project and what could have been done better in the project.
Figure 2.1 show the phases of Information Technology Project Meth

odology (ITPM):

n o t e s
Executing
Conceptu Developing Evaluating
and con Closing the
alisation the project the project
trolling the project
Initialisation plan success
project
Implementa
Planning
tion
SDLC
Design Analysis
Project
Project Final Project
Business Information Evaluation
Charactor Report and
Case system and Lesson
and Plan Presentation
learned
S
Deliverable Deliverable Deliverable Deliverable Deliverable
Figure 2.1: Phases of Information Technology Project Methodology

(ITPM)
IM
1. Which of the following is the third phase of ITPM?

a. Conceptualisation and initialisation
M
b. Developing the project plan

c. Executing and controlling the project
d. Evaluating the project success
N
Activity
Using the Internet, prepare a report on how SDLC of an IT project

can be developed.
2.3 PROJECT FEASIBILITY STUDY

A project feasibility study refers to the process of undertaking an ex
ercise to determine the worth of the proposed IT solution. This worth
can be in terms of money, in terms of technical aspects or it can be in
terms of an operational aspect.
Let us take an example of a government department that deals in the

registration process of vehicles. This department is using a manual
system for registration of vehicles. Thus, to get a vehicle registered,
a customer along with the dealer is required to visit this department
with all the required documents of the purchased vehicle. Since this
department or office works manually, there are several ledgers and

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registers that are required to be filled and then sanctioned from vari
ous approving authorities. As a result, it took almost 20 days to register
a vehicle. During this time, the vehicle owner cannot drive the vehicle.
As the number of customers increased, a need was felt to automate the
entire system. Finally, after several discussions and other formalities,
it was agreed to conduct a feasibility study.
2.3.1 IMPORTANCE OF FEASIBILITY STUDY
Feasibility study is very important for any project as it helps the man
ager to decide whether they should select the project or not. The fea
sibility study covered the following:
Would the proposed IT solution streamline the operations of the
working of the department?
S
Is it reasonable to spend a large amount of money for this IT solu
tion?
Is the existing infrastructure enough to sustain the proposed IT
IMsolution?
Will the customers benefit from this proposed IT solution?
These questions were somewhat translated to numeric figures so that

it is easy to arrive at a conclusion. This numeric score is known as the
feasibility score.
M
2.3.2 TYPES OF FEASIBILITY STUDY
In general, the feasibility study of an IT solution is related to the fol

lowing aspects:
N
Financial feasibility study: This study should be able to answer

the following questions:
What would be the rate of return?
Is it worth to spend so much money?
From where the money would be raised?
What is the time frame for the payback period?
What is the life of the system?
Will the proposed IT solution be able to generate revenue?
Who are the prime customers and what is their financial status?
Operational feasibility study: This study assesses the operational

aspects of the proposed IT solution. In particular, the operational
feasibility answers the following questions:
Will the proposed IT solution be operationally feasible to stake
holders?

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What would be the operational cost for running the system

when it goes into the production stage?
What are the operational constraints of the proposed IT solu
tion?
Can the proposed IT solution operate continuously without
any human interventions?
Technical feasibility study: This study seeks to answer the ques
tions such as the following:
Is the proposed IT solution technically feasible?
Do we have enough technical expertise to handle day to day
technical problems which arise from the various operations?
S
Do we have the requisite technical infrastructure to implement
the proposed IT solution?
Any type of IT solution is not confined to the feasibility study of the

IM
above-mentioned parameters only; it expands beyond that.
2.3.3 CONDUCT OF FEASIBILITY STUDY
Conducting a feasibility study is itself a process. In fact, it is a well-

structured process. The following are the highlights of conducting the
feasibility study for the proposed IT solution:
M
Information collection and analysis is the first step in the conduct

of the feasibility study. In this stage, the information regarding the
requirements of the new system are collected. These are analysed
with respect to the organisational and business objectives. In this
N
stage, the information is collected whether the new proposals can

be integrated with the existing systems or not and the budgetary
considerations are also taken into account. The information is col
lected from several sources and from multiple shareholders and
stakeholders who would be actually using the system once it is im
plemented.
After the information has been collected, the next step is to write
a feasibility report. This report is the analysis of the information
collection process on technical, financial, operational and other as
pects of the proposed IT solution. This report includes recommen
dations about the proposed solution, the schedule considerations
and suggestions, if any. The report includes other aspects such as
the following:
General information about the feasibility study describing the
scope, overview, reference to the existing systems
Environment of the proposed solution
The various functions operating in the organisation

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The functional objective of the proposed solution

The performance objective of the proposed solution
Assumptions, dependencies and constraints of the proposed
solution
Methodology used in the conduct of feasibility and the method
ology used to evaluate the proposed IT solution
The criteria for the evaluation of the proposed IT solution
The description of the proposed IT solution including the soft
ware and the impact it will have on the organisation as a whole
and also on each of the functional units
Alternative solutions to the proposed IT solution
S
The last report is the discussion on the feasibility report and the deci
sion to go ahead with the solution or not.
IM
2. Feasibility study is conducted to determine the _________ of

an IT solution.
3. Financial feasibility is focused on financial aspects only. (True/
False)
M
4. Operational feasibility is focused on the operational aspects of

the system. (True/False)
5. Technical feasibility is focused on technical aspects. (True/
False)
N
Activity
Research about some types of project feasibility studies and pre

pare a report with examples.
2.4 REQUEST FOR PROPOSAL (RFP)

Once the feasibility study has been conducted and the go ahead signal
has been obtained from the executive management to implement the
IT solution. The next stage is the preparation of a document which is
known as the Request For Proposal document.
This document forms the base for the selection of the vendor. In other
words, this document helps to evaluate the vendors who have submit
ted their proposals.

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An RFP document generally includes the statement of work, that is,

the work which the vendor would be required to undertake, the time
lines of the work, the compliance statement and other details which
will form the basis for the selection of the vendor.
The benefits of issuing an RFP are numerous, some of which are as

follows:
By calling for an RFP, the organisation is able to evaluate the best
vendor from a number of vendors who have submitted the pro
posal
The RFP process brings out an open system for the evaluation of
the vendor
The RFP acts as a guiding document for both the parties as it is
through this document that both can understand the roles and re
S
sponsibilities of the project
The following are indicative contents of an RFP document:

Reason
IM
to have new solution: This section describes the reasons
as to why the organisation wants to have a new solution or to have
an extension to the already running software. This is the most im
portant aspect of an RFP. This section provides the inputs to the
proposed vendor as to why an IT solution is required. By stating
the reasons, the organisation is able to briefly communicate as to
what is expected from the vendor.
M
Description of the organisation: This section describes the organ

isation and the various business processes that are carried out in
the organisation.
N
Nature of the project and the contract execution process: This

section is related to the nature of the project and the means or
methodology of the contract execution process.
Statement of work: This is the most important section which de
scribes the work that is required to be done as a part of the con
tractual process.
Evaluation criteria: This section specifies the evaluation criteria
for the vendors. On the basis of these evaluation criteria, vendors
are shortlisted.
Timeframe of the deliverables: This denotes the time frames and
the deliverables that are required to be made available to the cus
tomer.
Compliance statement: This is the statement which denotes the
degree of compliance, generally, in terms of percentage as to which
part of the IT solution the vendor is able to comply with.
Scope of work:. This is the scope of the work as part of the con
tract.

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6. RFP process brings out an open system for the evaluation of

the vendor. (True/False)
Activity
Find out the format of the RFP document used in an IT organisa

tion.
2.5 SELECTION OF PROPOSAL

Once the RFPs have been submitted by the prospective vendors, the
S
next stage is the selection of the vendor based on the RFP document.
On the basis of the RFP, vendors are evaluated and ranked. This eval
uation is done on the vendor evaluation sheet. This is the sheet which
is in the form of a matrix used to evaluate the vendors on the basis of
IM
vendor evaluation criteria as mentioned in the RFP document. The
ranking of the vendors is done in accordance with the evaluation cri
teria and the highest priority is given to the compliance statement
prepared by the vendors.
The top three vendors as per the vendor evaluation criteria are called
for further negotiations with regard to payment and other conditions
M
as mentioned in the RFP document. The lowest bidder gets the con
tract. This is how the proposal gets selected.
N
7. Once the RFPs have been submitted by the prospective

vendors, the next stage is the selection of the vendor based on
the RFP document. (True/False)
Activity
Research on the Internet and find out the factors affecting the ven
dor selection. Prepare a report on that.
2.6 PROJECT CONTRACTING

Project contract is a business deal between two or more parties. The
parties who are involved in the project decide the type of the contract.
The type of the contact usually depends on the nature of the work and
it varies from organisation to organisation.

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The type of the contract basically determines the risk involved in the
project. It is the main relationship between the two parties who are
involved in a project. The selection of contract is very crucial for any
business and companies should always try to choose a contract where
there will be less risk.
The following are some common types of contract:

Fixed Price: It is the simplest type of project contact. It is also
called as Lump Sum. The terms and conditions for this type of
contract are very simple and straightforward. In this type of con
tract, the service provider offers a specific service for a definite pe
riod of time. The client also offers a fixed amount of money for that
service. The advantage of these types of contract is that one knows
the total project cost even before the start of the project.
S
Unit Price: In this type of contract, the project is divided into some
smaller units. The client pays for each unit of the project and not
for the whole project. It is a flexible method of contact. In this type
of contract, the owner or the contractor estimates the bid for each
IM
element of the project. When the bidding is completed, the entire
project is given the same service provider.
Cost Plus: In this type of contract, apart from the agreed fees, the
contractor also pays the cost of machinery, labor and all the other
costs involved in the project. In this contract, the service provider
needs to give a detailed schedule and the list of resources in ad
M
vance. The contractor generally pays the agreed fees in monthly,

quarterly, yearly installments or at the end of the project.
Incentive: In this type of contract, there are three cost factors –
target price, target profit and maximum cost. We generally choose
N
this type of contract when there is no certainty in the project and

there may be any technological change in the project which may
have an impact in the overall resource and effort of the project.
Percentage of construction fee: In this type of contract, the cost
is estimated based on the resources and materials required in the
projects. This is generally used for engineering projects. In this
type of contract, the client usually pays a percentage of the total
cost of the project.
8. Which of the following contracts is generally used for

engineering projects?
a. Fixed price
b. Unit price
c. Incentive
d. Percentage of construction fee

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Activity
Suppose you are an engineer and you got a contract of constructing

a bridge. What type of project contract will you choose and why?
2.7 THE BUSINESS CASE

In an IT project life cycle, a business case is the first deliverable which
provides the detailed analysis of the feasibility study, the cost and risk
involved in the project, the benefits, and the organisational value of
the project. It is not a budget plan but it provides the management
with all the detailed information with the help of which, one can de
cide whether to fund the project or discard the project plan.
S
The main purpose of developing a business case is to find out how
the IT solution can create business value. There are many benefits of
developing an IT project, some of which are as follows:
IM
It can increase the profit margins of an organisation.
It can provide services in an efficient manner.
It can improve customer satisfaction by providing fast access of
information at any time.
It can improve communication within or outside the organisation.
M
It can help in decision making.

It can improve reporting capabilities.
Instead of the above-mentioned benefits of IT projects, there are

N
many IT projects that failed to return the benefit to the organisation.

Most of these IT projects failed because they started without a de
tailed analysis or understanding of the costs and risks involved in the
project. Thus, an IT project should be selected on the basis of the val
ue that it will bring to the organisation. The business case will show
how the investment in the IT project will bring business value to the
organisation.
2.7.1 THE IT VALUE CHAIN
The IT value chain is developed by Michael Porter, an American aca

demic. It is a high level model used to describe how an organisational
goal is aligned with the organisational strategy. The ultimate goal of
the IT value chain is to provide maximum value to the organisation.
While the project is completed, the actual achievement of the project
is compared with the Measurable Organisational Value (MOV) in or
der to determine if the project is successful or not. MOV is the overall
goal and measures of success in an IT project. Figure 2.2 shows an IT
value chain:

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Organisational Goal Drives

and Values
Organisational Drives
Supports Strategy
Measurable
Organisational Value
Supports
(MOV) of the project
Figure 2.2: IT Value Chain
2.7.2 PROJECT GOAL
S
Apart from the organisational objective, a project has also some defi
nite goals. However, the goals of the project support the overall objec
tive of the organisation. The goals of the project are usually defined in
IM
terms of its scope, schedule, budget and quality as shown in Figure 2.3:
Project Goal
Scope Schedule Budget Quality
M
Figure 2.3: Project Goal
As shown in Figure 2.3, each goal is equally important for the overall
success of the project.
N
2.7.3 DEVELOPING THE BUSINESS CASE
The business case should show how the cost involved in the IT project
can lead to increase in the business value. Figure 2.4 shows the pro
cess for developing a business case:
Selecting a
core team
Defining Identifying Defining Defining Defining

MOV alternatives feasibility TCO TBO
Analysing
alternatives
Proposing and supporting

the recommendation
Figure 2.4: The Process of Developing a Business Case

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The following are the processes that should be carried out to develop
a business case:
Selecting a core team: A core team should be selected for devel
oping a business case. The core team should have a manager, IT
specialists, business specialists, etc. They should be well aware of
the opportunities, limitations as well as risks that can be involved
in IT.
Defining Measurable Organisational Value (MOV): The main
purpose of selecting a core team is to define the risks and benefits
of the project and then identify the alternatives that can benefit
the organisation. For this, the IT project must support the goal and
objective of the organisation. The process of managing the IT proj
ect is guided by MOV. A MOV can never be defined until the goal of
the project is clearly defined or understood. MOV should be mea
S
surable and verifiable to determine whether a project is successful
or not. It provides value to the organisation as it guides in taking
decisions and managing the IT projects.
IM
Identifying alternatives: An organisational problem can be solved
through various strategies. More than one strategy should be cho
sen to solve a particular organisational problem so that there can
be some alternatives in case the first approach fails. The alterna
tives should have a potential solution to the organisational prob
lem.
M
Defining feasibility and accessing the risk: Defining feasibility

and accessing risk is very important. Feasibility can be viewed in
many terms, such as economic feasibility, technical feasibility, or
ganisational feasibility and other feasibility. Risk focus on deter
mining the right and wrong in the project. It also determines how
N
the organisation will avoid or minimise the risk involved in the

project.
Defining Total Cost of Ownership (TCO): Total Cost of Owner
ship (TCO) will include the direct and indirect cost as well as the
ongoing cost. It is a list that includes the impact of cost. So, while
preparing the business cases, TCO plays a very important role as
it determines all sorts of cost.
Defining Total Benefits of Ownership (TBO): Total Benefits of
Ownership (TBO) includes all the direct and indirect benefits as
well as the ongoing benefits that are associated with the projects.
TBO can be arrived at from increased high value work, improved
work accuracy and efficiency, accurate decision making, improved
customer service, etc.
Analysing alternatives: After determining the cost and benefits
involved in the project, all the alternatives are compared to each
other. The two most common ways to analyse the alternatives are
financial models and scoring models. Financial models are based
on profitability or cash flow, whereas scoring models are based on
weightage score.
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Proposing and supporting the recommendation: When alterna

tives are identified and analysed, it is required to choose any one
of them. If the analysis was done carefully, the recommendation
would be relatively easier.
9. The overall goal and measures of success in IT project is called

as __________.
10. The IT value chain is developed by ____________.
11. The full form of TBO is ____________.
Activity
S
Taking help from the Internet, create a business case for an IT project.
IM
2.8 PROJECT SELECTION AND APPROVAL
The selection and approval process of a project varies from organisa
tion to organisation. However, there are some general processes that
should be followed by every organisation for selecting and funding a
project within a given period of time. The time frame for a project can
M
be four months, six months, twelve months or any time frame set by
the organisation.
When a project meets the minimum needs of the organisation, it is

forwarded to the managers, who have the authority to approve or dis
N
approve the project. A manager or committee of managers compares

the project with other alternative projects in terms of cost, benefits
and risks involved in the project and then they decide to select and
approve the project. The following conditions should be met in order
to approve a project:
The project should be mapped directly to the strategy and goal of
the organisation.
A measurable organisational value should be provided by the proj
ect and this value could be verified when the project is completed.
The project should meet the desired tangible and intangible costs
and benefits.
12. When a project meets the minimum needs of the organisation,

it is forwarded to the managers. (True/False)
13. The selection and approval process of a project does not vary
from organisation to organisation. (True/False)

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Activity
Explore the Internet and prepare a report on the selection and ap
proval process of a project of an IT company.
2.9 IT GOVERNANCE
The main purpose of IT governance is to make sure that the business
processes are meeting all the pre-determined needs of the organisa
tion. The IT governance ensures the overall functioning of the IT de
partment, the requirements of the important metrics and the returns
that are received.
There are two distinct components in IT governance. They are struc
S
tural component and process component. Structural component of
IT governance answers all questions like what activities are done us
ing Information Technology (IT) of an organisation, how those activ
ities supports the aim of the business, who are the people that man
IM
age those activities. Process component of IT governance decides the
mechanism and policies that are used to control the IT activities with
in the organisation.
The following are the main functions of IT governance:

Understands the business strategy very clearly and align IT activ
M
ities along with the business strategy.

Provides clarity in between the strategy of the business and the IT
activities.
Sets the priority of the project.
N
Determines the resource that is required to accomplish the activ

ities.
14. The two distinct components in IT governance are ___________

and _______.
15. Process component of IT governance describes the decision
making rights associated with IT activities. (True/False)
Activity
Suppose you are a manager of a company. Research on the Internet

and find out how IT governance can help the employees of your
company to better perform their roles and responsibilities.

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2.10 PROJECT MANAGEMENT OFFICE

In global IT projects, the project management is controlled by setting
up of a project management office or PMO in short. Most of the proj
ects that are globally executed are managed by the PMO.
The PMO is a group or department within a business or a company,

which is managed by a team of technical persons and is used to moni
tor the execution process of various projects by team members located
in countries with different time zones.
The PMO has a dashboard sort of structure wherein the key parame
ters for monitoring of the project are displayed and the project com
mittee members review and monitor the stock of the project progress.
Project managers from different countries are provided a password to
S
log onto the system and they post the details of the project progress
at the end of the day. This ensures that when the project committee
members are logged on the PMO, they are able to see the details per
taining to the project.
IM
Let us take an example of the operations of PMO. Suppose a company,
Fujitsu Consulting, has a global presence in many countries like US,
UK, Australia, India, Germany and Dubai. The company has set up a
PMO to monitor all the projects which are under execution at these
countries. The overall project monitoring committee team members
M
sit at their Tokyo office, which is the Headquarters of Fujitsu consult

ing software division. Due to time difference, the project managers of
each of the respective countries post their status in the PMO before
leaving for the day. This status is viewed at the Tokyo office when they
log onto PMO. The PMO presents a dashboard of all the projects in
N
the various countries so that the team at Tokyo office is able to see the
progress. Further, this dashboard has the provision of providing the
details of a particular project in a particular country wherein the team
at Tokyo is able to monitor each and every task or team member or a
particular aspect of the project.
The main advantage of having PMO is the fact that this is a useful tool
for global projects and their management.
Though PMO has several advantages but the process of setting up a

PMO is equally challenging and cumbersome due to the fact that IT
industry is dynamic, with each project being different from the other
and that each project manager has a different management style.
Setting up a PMO is a complex and complicated task and involves the

following steps:
1. Appointing a project champion in each country. This project
champion ensures that PMO activities actually take place.

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2. Once the project champions or respective countries are appointed,

then the next process is the discussion on the processes for
software development. Generally, the CMMI model or any other
model is taken into consideration. This is deliberately done to
ensure that the process of development is uniform throughout
with little variations.
3. The next process is the formulation of the parameters on
which the project management would be carried out. These
parameters are required to manage the global projects and form
the components of the dashboard.
4. Once the formulation of a parameter is decided, the next part is
the development of the software and the implementation of the
processes.
5. When sufficient data is obtained, the pilot run of the PMO in
S
undertaken.
6. When the pilot run is successful, the PMO rolls out.
IM
There are some parameters that are used to manage the various proj
ects which are under global execution but the process of identifying
and defining parameters is very crucial.
The following parameters are used for managing the various projects:
Parameters related to quality: Since the PMO is global in nature,
M
quality becomes the core controlling parameter. In order to ensure

the best quality, it is required to choose the right procedures and
methods while developing the software. Apart from that, the proj
ect management practices should be consistent with the organi
sational objectives. Some of the parameters which are related to
N
quality include the following:

Defect age
Defect removal efficiency
Review defects
Testing defects
Preventive and corrective actions undertaken and their effec
tiveness
Parameters related to time: This is the parameter related to time.
As PMO is widely used in global projects, the parameters related
to time are:
Effort variance
Schedule variance

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Parameters related to cost: This is the parameter related to cost.

Some of the parameters related to cost include the following:
Fixed cost
Variable cost
Operating cost
Worth mentioning is the fact that all the cost involved in the proj
ect is calculated in terms of global currency which is generally in
US$.
Parameters related to scope: These are the parameters related
to scope of the project. Some parameters in the scope component
include the following:
Project scope
S
Onsite scope
Offshore scope
IM
Other country scope
2.10.1 TRACKING GLOBAL PROJECT EXECUTION

THROUGH PROJECT MANAGEMENT OFFICE
Once PMO is setup, the next process is to monitor various projects.

M
The monitoring of the project is done through the dash board by view
ing the identified parameters as discussed in the previous sections.
These parameters are tracked and discussed in the review meetings
by video call or conference calls or by leaving a note at the PMO for
N
the project manager to answer the queries of the overall management

of PMO.
Issues, concerns and other core parameters are closely monitored and
are discussed in the meeting room of the PMO or through webinar.
16. The PMO is a ____________ for managing __________ projects.

17. Onsite scope is an example of scope parameter (True/False)
Activity
Using the Internet, prepare a report on global project execution.

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2.11 SUMMARY
Information Technology Project Methodology (ITPM) is a measure
with the help of which we can plan, create and lay out the respon
sibilities for finalising the objective of IT of an organisation.
The project feasibility study for the proposed IT solution is re
quired for the identified requirements of the project.
An RFP document generally includes the statement of work, that
is, the work which the vendor would be required to undertake, the
timelines of the work, the compliance statement and other details
which will form the basis for the selection of the vendor.
The ranking of the vendors is done in accordance with the evalu
ation criteria and the highest priority is given to the compliance
statement prepared by the vendors.
S
The type of the contract basically determines the risk involved in
the project. It is the main relationship between the two parties in
volved in the project.
IM
In an IT project life cycle, a business case is the first deliverable
which provides the detailed analysis of feasibility study, the cost
and risk involved in the project, and the benefit and organisational
value of the project.
The IT value chain is developed by Michael Porter, an American
M
academic. It is a high level model used to describe how an organi

sational goal is aligned with the organisational strategy.
When a project meets the minimum needs of the organisation it is
forwarded to the managers. The managers have the authority to
N
approve or disapprove the project.

The main purpose of IT governance is to make sure that the busi
ness processes are meeting all the pre-determined needs of the
organisation.
Structural component of IT governance answers all questions like
what activities are done using Information Technology (IT) of an
organisation, how those activities supports the aim of the business,
who are the people to manage those activities.
Process component of IT governance decides the mechanism and
policies that are used to control the IT activities within the organ
isation.
The PMO is a group or department within a business or a compa
ny, which is managed by a team of technical persons and which is
used to monitor the execution process of various projects by team
members located in countries with different time zones.

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key words
Conceptualisation and initialisation: It refers to the first phase

of ITPM and it focuses on the overall goal of the project.
Cost Plus: It refers to the type of contract in which apart from
the agreed fees, the contractor also pays the cost of machinery,
labor and all the other cost involved in the project.
IT value chain: It refers to a high level model which is used to
describe how an organisational goal is aligned with the organi
sational strategy.
Project Management Office (PMO): It refers to a group or de
partment, within a business or a company, to monitor the exe
cution process of various projects by team members located in
S
countries with different time zones.
Total Benefits of Ownership (TBO): It refers to the process of
business case which includes all the direct and indirect benefits
as well as ongoing benefits of the projects
IM
Unit Price: It refers to the type of contract in which the project
is divided into smaller units.

M
1. Discuss the five phases of ITPM.

2. Explain the three types of feasibility study.
3. Describe the benefits of issuing an RFP.
4. Discuss the various types of project contracts.
N
5. Explain the process to develop a business case.

6. Describe the main functions of IT governance.
7. Discuss the steps involved in setting up of a PMO.

Information Technolo 1. c. Executing And Controlling
gy Project Methodology The Project
(Itpm)
Project Feasibility Study 2. Worth
3. True
4. True

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5. True
Request For Proposal 6. True
(Rfp)
Selection of Proposal 7. True
Project Contracting 8. d. Percentage of Construction Fee
The Business Case 9. Measurable Organisational Value
(Mov)
10. Michael Porter
11. Total Benefits of Ownership
Project Selection and 12. True
Approval
S
13. False
IT Governance 14. Structural Component, Process
Component
IM
15. True
Project Management 16. Software, Global
Office
17. True

M
1. Information Technology Project Methodology (ITPM) is a

measure with the help of which we can plan, create and
layout the responsibilities for finalising the objectives of an
organisation. Refer to Section 2.2 Information Technology
N
Project Methodology (Itpm).

2. A project feasibility study refers to the process of undertaking
an exercise to determine the worth of the proposed IT solution.
Refer to Section 2.3 Project Feasibility Study.
3. The benefits of issuing an RFP are numerous, for example by
calling for an RFP, the organisation is able to evaluate the best
vendor from the number of vendors who have submitted the pro
posal. Refer to Section 2.4 Request For Proposal (Rfp).
4. Project contract is a business deal between two or more parties.
The parties who are involved in the project decide the type of the
contract. Refer to Section 2.6 Project Contracting.
5. There are various processes that should be carried out to develop
a business case, for example, selecting a core team. Refer to
Section 2.7 The Business Case.
6. One of the main functions of IT governance is to understand the

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business strategy very clearly and align the IT activities along

with the business strategy. Refer to Section 2.9 It Governance.
7. Setting up a PMO is a complex and complicated task and involves
various steps like appointing a project champion in each country.
This project champion ensures that PMO activities actually take
place. Refer to Section 2.10 Project Management Office.
SUGGESTED READINGS
Schwalbe, K. (2010). Information Technology Project Manage
ment. Boston, Ma: Course Technology/Cengage Learning.
Tracey, W. R. (1985). Human Resources Management And Develop
S
ment Handbook. New York: American Management Associations.
Graham, H. T., & Bennett, R. (1998). Human Resources Manage
ment. London: Pitman.
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E-REFERENCES
M. (2017, February 24). Feasibility study an important aspect of
project management. Retrieved march 16, 2017, from https://www.
simplilearn.com/feasibility-study-article
Schwartz, K. D. (2007, May 22). IT Governance Definition and
M
Solutions. Retrieved March 16, 2017, from http://www.cio.com/ar

ticle/2438931/governance/it-governance-definition-and-solutions.
html
IT Project Management for Project Managers - gant
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thead. (n.d.). Retrieved March 16, 2017, from https://www.

bing.com/cr?IG=5379670634B043DEB9B938DEF17F3C
2D&CID=312B6D27C3D06E991C136760C2E16FEA&rd=1
&h=vMhJJEyiMl8S4YzmrGaETtRE9oK_ekZ102W__7leX
R4&v=1&r=https%3a%2f%2fwww.projectmanagement.com%2f
default.cfm&p=DevEx,5088.1

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C h a
3 p t e r
PEOPLE MANAGEMENT IN IT PROJECTS
CONTENTS
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3.1 Introduction
3.2 Project Organisation and HR Planning
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Activity
3.3 IT Project Team
3.3.1 Need for Having an Efficient and Effective IT Project Team
3.3.2 Need for Having a Balanced IT Project Team
3.3.3 Criterion for Developing an IT Project Team
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Activity
3.4 Project Environment
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Activity
3.5 Managing Change
Activity
3.6 Resistance and Conflicts
Activity
3.7 Summary

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TEAM MANAGEMENT AT ABC
ABC is a small-scale IT services and consulting organisation in

the telecommunication sector. The ‘Billing & Payment’ practice
group of the organisation was headed by an organisation loyalist
John Gillon. John had thorough domain knowledge and hands-
on experience of various billing systems and payment processes.
Under John’s leadership, the Billing & Payment department has
grown a lot in terms of revenue and team size from 60 to 350 mem-
bers. Considering the strong leadership skills of John and good
financial performance of the department, the top management of
the organisation entrusted John to expand the department. As
a result, a new sub-department called ‘Institutional-billing’ was
formed.
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Thomas McGill joined the Billing and Payments department as
a consultant six years back. Since that time, Thomas worked in
close association with John. Having performed as expected and
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being a committed employee of the organisation, Thomas got
promoted over the years and now as a project manager of the
sub-department ‘Institutional-billing’. Sarah, Silton and Jason
were directly reporting to Thomas. Three of them were managing
the team size of approximately ten members each shared a good
rapport with Thomas.
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Although everything was apparently looking good, John could

sense some glitches in project deliveries for the last couple of
years. Some of the client also complained about problems regard-
ing stakeholder updates, slippage of delivery schedule, quality
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audits, etc. After consulting his colleagues and senior managers,

John concluded that:
the department lacked expertise in project planning and de-
liveries. Current team members who got promoted as project
managers were assigned the role just because the department
expanded and the organisation needed somebody to manage
bigger teams.
the department needed experienced and certified project
managers to streamline project management practices. These
project managers would also guide current team about best
practices in project management.
Taking into consideration the above problems, John decided to

hire experienced and certified project managers and one such
hire was Alex. Alex was certified PMP who has worked in CMMi
level 5 compliant organisations and holds considerable work ex-
perience in the financial sector. Alex joined ‘Institutional-Billing’
– the sub-practice group sharing project delivery responsibili-

PEOPLE MANAGEMENT IN IT PROJECTS 55
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ties with Thomas. Thus ‘Institutional-Billing’ has got two project

managers. Alex was an experienced project manager but he was
not an expert in ‘Billing and Payment’ in telecom domain.
As some months passed, Alex realised that he was not able to get
accurate information on project deliverable, resource utilisation,
their availability, project plan, actual progress and state of deliv-
erable. Sarah, Silton and Jason were not sharing the exact sta-
tus of what their teams were working on, who was working on
what, when would they deliver certain deliverable to the client. As
Sarah, Silton and Jason were directly reporting to Thomas, they
were not paying much heed to Alex’s requests. As a result, issues
in the sub-department became prominent in terms of delayed
deliveries, increased attrition rate, instances of non-compliance
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with PMO guidelines.
Alex communicated John about the issues prevailing in the

sub-department. John first decided on to resolve conflicts be-
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tween Alex and Thomas and his team leaders. Three of the team
leaders Sarah, Silton and Jason were informed to also report to
Alex and perform as and what is required. John also started close-
ly working with Alex and Thomas. As a result the performance of
the sub-department improved to a great extent.
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learning objectives

>> Discuss project organisation and HR planning
>> Explain the need of an efficient IT project team
>> State the importance of project environment
>> Describe how to manage change
>> List the reasons for resistance and conflicts among team
members
3.1 INTRODUCTION
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In the previous chapter, you studied conceptualisation and initialisa-
tion of an IT project. However, no project can be conceptualised or
initialised without human resources. Thus, human resource is crucial
to project management. In this chapter, you will be familiarised with
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the importance of human resource in IT project management.
A project manager should first decide upon the structure of the project
to be pursued by the organisation. A project structure is a framework
of roles and responsibilities, authority and communication flow with-
in an organisation. There are five important types of project/organi-
sation structures namely traditional project structure, line and staff
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organisation, functional structure, pure project structure and matrix

structure.
A project is nothing by itself; it is planned, constituted and operat-

ed by human resource after forming a project team. Therefore, it is
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important that a project manager keeps human issues related to the

project under control. Apart from project team members, the project
manager needs to deal with certain other project stakeholders such as
suppliers, vendors, project sponsors, business partners, etc.
In this chapter, you will study the concept and meaning of project
organisation; types of project organisation structures; importance of
forming project teams and project environment. You will also study
the importance of managing change and conflicts in project manage-
ment.
PROJECT ORGANISATION AND HR

3.2
PLANNING
Project organisation is one of the most crucial parts of project man-
agement as it ensures that the project is arranged within a manage-
able structure. It is a structure wherein a sequence of project activities
is defined; thereby ensuring the successful execution of a project. The
first step of project organisation is project design in which the course
of action is determined, flow of project activities is decided and proj-

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ect resources are allocated. Secondly, the roles and responsibilities of

individuals involved in the project are delegated. Finally, the general
principles and guidelines decided at the project planning stage are
actually put into practice.
The individuals who are responsible for project organisation are cate-
gorised into three different groups. They are:
Directors of the project: A director is an individual who provides
strategic direction during the project planning process. Directors
can include project managers, project secretary or managing di-
rector.
Project team: A project team involves a group of individuals who
are assigned duties to complete a project within the stipulated
time. The project team is headed by the project manager.
Steering committee: This committee comprises organisational
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peers, customers and stakeholders; therefore, equality in decision
making is ensured. They develop the vision and goals of a project.
In addition, the steering committee has the final decision-mak-
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ing authority over all the political, legal, organisational, technical,
management, cultural and personnel issues related to the project.
A project organisation structure defines the roles and responsibilities

delegated to individuals at different levels of an organisation sharing
the common goals of the project. It represents a hierarchy in which
a group of people coordinate to accomplish the common goal of the
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project. In other words, it can be said that a project organisation struc-

ture is a framework in which lines of authority and channels of com-
munication are arranged. This structure is temporary in nature that
exists till the completion of a particular project. The project organisa-
tion structure comprises individuals from different organisations and/
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or departments of the same organisation.
A project organisation structure differs across organisations depend-

ing on project objectives and strategies selected to achieve them.
It can be designed by formulating the Project Structure Plan (PSP),
which involves the arrangement of project activities in the form of var-
ious sub-tasks. The relationship among different sub-tasks/activities
is represented in a tabular or structural form, which helps in deciding
scheduling, cost planning, and final closure of the project. The tree
structure is a popular and widely accepted PSP. Conceptually, PSP
is the hierarchical arrangement of all sub-tasks or activities of a proj-
ect that helps ensure an appropriate allocation of resources and de-
ployment of team members. The development of PSP at the starting
phase of the project helps in increasing the efficiency of planning and
controlling functions of the project. In the absence of an appropriate
project structure, the project appears as an arrangement of unrelated
activities. Moreover, team members do not get adequate information
required to perform project activities. Thus, designing a project or-
ganisation structure involves the following activities:
Splitting project work into various divisions and sub-divisions.

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Grouping people involved in the project at higher, middle and low-

er levels and allocating them activities.
Identifying global project organisations.
Integrating people working on the project in terms of communica-
tion, coordination, reporting, team building, conflict management,
etc.
Deciding how authority, decision making and responsibilities
should be delegated within the project organisation structure.
The following criteria should be considered while determining the

project organisation structure:
Strengths and weaknesses of different project organisation struc-
tures
Legal aspects of all available project organisation structures
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Growth patterns of a project organisation structure
Decision-making roles and accountabilities
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Relationship between the project manager and his/her subordi-
nates
Flow of information and the frequency of communication
Number of subordinates under a project manager
Autonomy given to employees at various levels of project organi-
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sation
Level of flexibility
Need for innovation
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Diversity ratio, that is, the ratio between male and female employ-
ees
Determining the project organisation structure requires proper atten-

tion and supervision as any inaccuracy during this phase may hamper
the accomplishment of organisational goals and objectives. Table 3.1
shows different types of project organisation structures:
TABLE 3.1: DIFFERENT TYPES OF PROJECT

ORGANISATION STRUCTURES
Type of Structure Explanation
Traditional Structure In today’s constantly changing and hyper-compet-
itive global business environment, the traditional
organisation structure has become obsolete and
unproductive. Instead of focussing on customer
satisfaction and organisational growth, this struc-
ture lays emphasis on various levels of manage-
ment and their authorities. Such an organisational
structure makes it very difficult for employees
and managers to perform tasks as a team, which
adversely affects the growth of the organisation.

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Type of Structure Explanation

Functional Structure In this structure, a project is divided into smaller
groups based on specialised functional areas such
as IT, finance or marketing.
Pure Project Organi- In this structure, a project manager has total over
sation Structure the project supervised by them.
Matrix Organisation It is a blend of functional and pure project struc-
Structure tures. If the matrix form is chosen, resources are
taken from different functional areas for project
activities.
Line and Staff Project In this structure, project activities are assigned
Organisation Struc- in accordance with a specific and supportive line
ture of command. In this structure, the control of the
project is in the hands of line executives, who are
responsible for making decisions in the organisa-
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tion. On the other hand, staff supervisors, who are
the functional experts, are responsible for guiding
line executives in decision making.
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HUMAN RESOURCE (HR) PLANNING
HR planning is all about identifying and defining the roles and re-
sponsibilities of team members, skills required for performing project
activities and reporting relationships. It helps the project team mem-
bers to be clear of what is expected from them. On the other hand, it
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helps the project manager to have insight into human resource re-
quirements for carrying out the project. A project manager has to be
careful while planning human resource. This is because if human re-
sources exceed the requirements, it will lead to wastage and increased
costs. On the other hand, if there is a shortage of human resource, it
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will hamper project performance.
HR planning is done by taking into consideration project management

plan, activity resource requirements, enterprise environmental fac-
tors and organisational process assets. Various tools and techniques
are used by project managers for conducting HR planning. Some of
these tools are organisational charts and process descriptions, net-
working, organisational theory, expert judgement, etc.
1. ____________ involves a group of individuals who are assigned

duties to complete a project within the stipulated time.
2. The full form of PSP is __________.
3. In which of the following structure a project is divided into
smaller groups based on specialised functional areas?
a. Traditional structure
b. Functional structure

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c. Pure project organisation structure

d. Matrix organisation structure
4. In _____________ structure, a project manager has total over
the project supervised by them.
Activity
Using the Internet, find information on any five projects that were
carried out using a line and staff organisation structure.
3.3 IT PROJECT TEAM

At a broad level, a project team can be defined as a group of people
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who collaborate and work with each other to perform certain tasks or
activities for a project. The ultimate aim of organising people in such
a consolidated work group or team is to achieve project objectives and
produce deliverables in a timely manner. The people involved in the
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project may be working on a full- or part-time basis. A group of people
transforms into a full-fledged team if the people:
understand the work to be done for the successful accomplish-
ment of project goals.
plan for their respective assigned activities.
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perform their tasks within the given time and budget.

deliver the desired quality of project activities.
communicate with their supervisors regarding the status of their
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work.
communicate regarding issues or risks or quality concerns faced
by them.
work as a team and resolve intra-team conflicts without any delay.
A project team is generally formed by a project manager. The process

of developing a project team passes through five stages, as shown in
Figure 3.1:
Forming
Storming
Norming
Performing
Adjourning
Figure 3.1: Stages of Project Team Development

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Now, let us discuss these stages in detail.

1. Forming stage: This is the first stage of project team development
wherein a project manager selects individuals from different
departments or organisational units as per the required skills
and competencies. At this stage, team members are introduced to
one another and communicated about the project to be initiated.
During this stage, it is very important for a project manager to
have deep insight into the project goals and objectives to be
fulfilled so that he/she can better communicate them to team
members. Also, the project manager should be able to solve the
queries of team members as well as give them proper guidance.
2. Storming stage: At this stage, team members are informed
about the goals and objectives of the project. At this stage, the
project manager establishes performance standards and clearly
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communicates the exact requirements of the project to all team
members. In the storming stage, various members of the team
compete with one another in a bid to gain status and acceptance.
Developing disagreement and frustration is a common occurrence
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among the team members at this stage. Therefore, it is the
responsibility of the project manager to resolve contradictions
and conflicts among team members, and make them focus on
the accomplishment of project goals and objectives. The project
manager should ensure that team members start listening and
respecting one another’s ideas and thoughts.
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3. Norming stage: It indicates the third stage of the team

development process, which is characterised by an increase
in bonding and cohesiveness among the members of the team.
By the time this stage is reached, conflicts and contradictions
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among the team members are resolved by the project manager.

The project manager at the norming stage strives to bring
harmony, hope, conviction and respect among team members.
On the other hand, the team members start acknowledging
the contribution and efforts of one another. At this stage, the
team members are encouraged to participate in the decision-
making process, which, in turn, motivate them and increase
their productivity. The project manager supports team members
by providing them proper feedback about their performance.
Moreover, as there is greater coordination and cohesiveness
among team members, they start sharing ideas, and giving
feedback to one another.
4. Performing stage: It indicates the stage characterised by a
high level of productivity, confidence and morale of the team
members. The productivity of the team is highest at this stage.
Not all project teams are able to reach this stage. Teams that
reach this stage are characterised by a high level of trust and
interdependency among team members.

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At this stage, the project manager should encourage team

members to handle problems on their own and intervene only
when it is absolutely necessary. However, he/she should ensure
that the team members are not overburdened with excessive
responsibility as it can hamper the team’s performance.
5. Adjourning stage: This is the final stage of project team
development. At this stage, the project carried out by the team gets
completed, and the project team prepares to get disassembled.
Before disassembling the project team, the project manager
summarises the project and all the tasks are performed by the
team. The adjourning stage is quite an emotional phase for team
members as they develop a close bonding among themselves
during the course of the project.
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3.3.1 NEED FOR HAVING AN EFFICIENT AND EFFECTIVE
IT PROJECT TEAM
Effective IT teams do not exist rather they are like parts of a puzzle
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which must be put together through the hard work and leadership of
the IT project manager. An efficient team is said to be one that is fo-
cused on meeting the objectives of a project within the specified time
and budget. Below are some guidelines that a project manager must
follow to build an effective IT project team:
Setting realistic project goals and objectives and communicating
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to the team members clearly

Defining roles and responsibilities of team members based on
their skills and abilities
Maintaining effective communication among team members and
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timely addressing their queries

Building up trust among team members so that they are proactive
in meeting project goals and objectives
Assessing team performance from time to time and rewarding the
best performers
Asking for suggestions for making improvement in project perfor-
mance
3.3.2 NEED FOR HAVING A BALANCED IT PROJECT TEAM
Having a balanced team size plays a major role in a project’s success.

This is because if human resources are less than what is actually need-
ed, it will hamper project activities. On the other hand, if human re-
sources exceed the requirement, it will lead to high costs for the or-
ganisation. Thus, it is of utmost importance for the top management
to accurately estimate human resource requirements for a project be-
fore making the project team.

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A project team comprises a project manager and a group of people

who work together and share common objectives towards project’s
success. These people are from different departments with specific
subject matter knowledge or skills to carry out project work. Although
each member of the team plays a crucial role in meeting project ob-
jectives, the project manager is the one who manages the entire team.
A project team includes the following roles:

Project management staff: It comprises members who are re-
sponsible for performing various project management activities
such as planning, scheduling, budgeting, reporting, risk manage-
ment and administrative support.
Project staff: It includes team members who perform project ac-
tivities to achieve project deliverables.
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Support staff: It performs activities involved in developing or ex-
ecuting the project plan. These activities can include contracting,
financial management, logistics, legal, safety, engineering, test, or
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quality control. Support staff can be hired full time or on a need
basis depending on the size of the project.
Customer representatives: These are the members of the organ-
isation who ensure proper coordination, advise on requirements,
or validate the acceptability of the project’s results.
Sellers: These are external parties who generally enter into a con-
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tractual agreement with the organisation to provide components

or services necessary for the project.
Business partners: These are external organisations that provide
installation, customisation, training or any other support required
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for the project.
3.3.3 CRITERION FOR DEVELOPING AN IT PROJECT TEAM
The following are the essentials of developing an efficient project

team:
Team plan: A project manager has to be clear what is expected
from the team and what is the objective of the team. Moreover, the
manager should pay attention to whether the communication is
clear between the top management and among the team members
and whether the team members are striving to meet project goals
within the specified time and budget.
Situation: Are the team members able to understand their respon-
sibility in the team and are they following the project execution
per the strategy devised?
Assurance: Is the team ready to commit their time totally to the
project and their interests is in line with the project strategy?

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Do they perceive the duties to be performed seriously? Is the team

dedicated on to the project?
Capability: It should be made sure that the team has appropriate
team members in the team? The whole team should be satisfied
about the competence of the teammates.
Cooperation: The team members should cooperate with each oth-
er and should empower the whole team and show the ownership
and confidence to stand up and finish the contract.
Innovation: The team should be selected in such a way that the
team members are inclined towards creative ideas and innovation,
if the whole team is working hard but stick to the old techniques
and is not inviting to innovative procedures, the project will be
completed but it will not stand out. So, the team should always be
balanced.
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Along with that collaboration, communication between the team
members, and the responsibility to face the consequences during the
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project execution along with coordination and the collective cultural
behaviour should be considered in order to form a balanced, efficient
and effective team.
5. In _______stage, team members are informed about the goals

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and objectives of the project.

6. _____________ comprises a project manager and a group
of people who work together and share common objectives
towards project’s success.
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7. Sellers are external parties who generally enter into a

contractual agreement with the organisation to provide
components or services necessary for the project. (True/False)
Activity
Suppose you are appointed as the project manager of a website de-

velopment project. A website development project includes a wide
array of activities such as:
Planning Testing
Content Hosting
Design Publicity
Construction Review
As the project manager, how will you assign the roles to team mem-
bers as per their skills and encourage them to accomplish project
goals within the specified time and budget.

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3.4 PROJECT ENVIRONMENT

As studied earlier, human resource is critical to the successful comple-
tion of a project. However, people can perform their best only when
they are provided a suitable project environment. Project environ-
ment refers to a physical setting in which individuals work. It also
includes the work culture of an organisation. A project manager plays
an important role in ensuring a congenial project environment for in-
dividuals.
In addition, a project manager should ensure that all project team

members (internal or external) are allotted a comfortable workspace.
He/she should also ensure that there is regular interaction between
team members so that they can bring into the problems and queries
faced by them as a part of project’s culture. Adequate arrangements
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for infrastructure and office supplies should also be made.
Project environment is generally divided into three types, which are:

Social
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environment: It encompasses communication between the
project manager and the team members, resolution of conflicts,
team values and culture, trust and cooperation among team mem-
bers.
Psychological environment: It covers the personality and individ-
ual values of team members, mental wellbeing, emotional intelli-
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gence, stress factors and so on.

Technical environment: It involves the design and program of the
project, risk management and safety systems, etc.
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8. ______________ ensure that all project team members (internal

or external) are allotted a comfortable workspace.
Activity
As the project manager, what steps will you take towards maintain-
ing a congenial environment where team members feel encouraged
towards accomplishing project goals?
3.5 MANAGING CHANGE

Change is inevitable; managing change is not about avoiding change
but to ensure that the change is carefully analysed and implemented
for the successful achievement of project goals. To meet the growing
expectations of customers and survive in a highly competitive busi-
ness environment, it has become inevitable for every organisation to
make changes in its existing products or processes from time to time.
Change can take place in any area of the project be it project scope, fi-

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nancial aspect, project timing and schedule and so on. A project man-
ager’s job is to constantly analyse changes that may occur or are to
be made at any point in the project. However, it is important for the
project manager to take approval of all project stakeholders before
introducing any change in the project.
Change management is a process of identifying and implementing the

required changes in an organisation in a controlled manner. Change
management should be made a part of project management at its ini-
tial stage itself. The project manager must be responsible for analys-
ing the consequences of change along with recommendations given
by the stakeholders at the time of approval. He/she should answer the
following questions while analysing a change:
What kind of change is required to be made?
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What is the reason for the change?
What resources will be required to introduce that change?
What is the cost pertaining to the change?
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What can be the risks if the particular change is made?
Change management is a systematic process that involves a number

of steps. First the project manager receives the request for a change.
After that, the manager needs to decide if the situation for which the
change is demanded can be resolved with few corrective actions or
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it is necessary to introduce the change. If the manager is not able to

resolve the issue with the corrective action, then the manager must
do an analysis of the change and communicate the results of the anal-
ysis to the project sponsor along with recommendations. Thereafter,
the sponsor is responsible for approving or rejecting the change after
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considering the recommendations. When the request for change is ap-

proved, the project manager schedules and manages the budget and
timeline for the change.
9. _____________is a process of identifying and implementing the

required changes in an organisation in a controlled manner.
Activity
Assume that one of your team members has requested for a change
in the design of an application development project. How will you
analyse such change requested by the member?
3.6 RESISTANCE AND CONFLICTS

Whenever any change takes places in the current situation, the people
involved may show some kind of resistance as human beings general-

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ly prefer to operate from their comfort zone. Such resistance shown

by team members can take the form of conflicts. Conflict is unavoid-
able in a project environment. In a team, conflicts can take place due
to scarce resources, scheduling priorities and personal work styles.
If these conflicts are not managed on time, it may lead to severe ad-
verse effects on the project. Conflict management is all about reducing
the negative effects of conflict. Effective project management prac-
tices such as clear communication and role definition are some tech-
niques that help in reducing conflicts in the project team.
Successful conflict management leads to high team productivity and

healthy relationships among team members. Sometimes differences
in opinions among team members lead to creativity and better deci-
sion making. However, if differences become a negative factor, team
members should initially try to resolve them. If they are not able to do
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so, the project manager should come up with a satisfactory resolution.
The success of a project depends a great deal on a project manager’s
ability to resolve conflict. However, the conflict resolution process is
affected by a number of factors. Some of these factors are:
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Relevance and intensity of the conflict
Time required for conflict resolution
Behaviour of people involved
Motivation to resolve conflict
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Project managers use various techniques of resolving conflicts. Some

of them are shown in Figure 3.2:
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Withdraw/Avoid
Smooth/Accommodate
Compromise/Reconcile
Force/Direct
Collaborate/Problem Solve
Figure 3.2: Techniques of Conflict Resolution
Let us discuss the techniques of conflict resolution.

Withdraw/avoid: In this technique, an actual or potential conflict
situation is simply avoided or postponed or is expected to be re-
solved by others.

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Smooth/accommodate: In this technique, focus is laid on the

agreement and not on the difference within an aim to maintain
harmonious relationships among team members.
Compromise/reconcile: In this technique, solutions are found in
such a way that it brings some degree of satisfaction to all parties.
Force/direct: In this technique, only win-lose situations are pre-
ferred. In other words, one’s viewpoint is forced on others.
Collaborate/problem solving: This technique lays emphasis on
cooperative attitude and open dialogue to reach a consensus and
commitment.
10. In a team, __________ can take place due to scarce resources,
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scheduling priorities and personal work styles.
11. Which of the following is not the technique for resolving
conflicts?
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a. Collaborate
b. Smooth/Accommodate
c. Compromise/Reconcile
d. Unforce
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Activity
As a project manager, which technique will you use to resolve con-

flicts?
N
3.7 SUMMARY
A project structure is a framework of roles and responsibilities,
authority and communication flow within an organisation.
There are five important types of project/organisation structures
namely traditional project structure, line and staff organisation,
functional structure, pure project structure and matrix structure.
Project organisation is a structure wherein a sequence of project
activities is defined; thereby ensuring the successful execution of
a project.
Project organisation structure defines the roles and responsibili-
ties delegated to individuals at different levels of an organisation
sharing the common goals of the project.
HR planning is all about identifying and defining the roles and
responsibilities of team members, skills required for performing
project activities and reporting relationships.

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A project team can be defined as a group of people who collaborate

and work with each other to perform certain tasks or activities for
a project.
The process of developing a project team passes through five stag-
es: forming, storming, norming, performing, and adjourning.
An efficient team is said to be one that is focused on meeting the
objectives of a project within the specified time and budget.
Project environment is generally divided into three types, which
are social environment, psychological environment, and technical
environment.
Change management is a process of identifying and implementing
the required changes in an organisation in a controlled manner.
Conflict is unavoidable in a project environment. In a team, con-
S
flicts can take place due to scarce resources, scheduling priorities
and personal work styles.
Successful conflict management leads to high team productivity
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and healthy relationships among team members.
Some techniques of resolving conflicts are withdraw/avoid,
smooth/accommodate, compromise/reconcile, force/direct, and
collaborate/problem solve techniques
key words
M
Change management: It is a process of identifying and imple-

menting the required changes in an organisation in a controlled
manner.
N
Conflict management: It is a process of reducing the negative

effects of conflict. Effective project management practices such
as clear communication and role definition are some techniques
that help in reducing conflicts in the project team.
Emotional intelligence: It is an ability of identifying and man-
aging one’s and other emotions.
Organisational chart: It is a structure of an organisation that
defines relationships between different departments.
Organisational theory: It studies organisational designs and
structures.

1. Who are responsible for project organisation?
2. Define the steps for designing a project organisation structure.
3. Explain the essential principle for developing a good IT project
team.

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4. Describe the term project environment.

5. What is change management?

Project Organisation and HR 1. Project team
Planning
2. Project Structure Plan (PSP)
3. b.
4. Pure Project
Organisation Structure
S
IT Project Team 5. Storming
6. Project team
7. True
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Project Environment 8. Project manager
Managing Change 9. Change Management
Resistance and Conflicts 10. Conflicts
11. d.
M

1. Individuals who are responsible for project organisation are
categorised into three different groups. They are directors of the
project, project team and steering committee. Refer to Section
N
3.2 Project Organisation and HR Planning.

2. The steps in designing a project organisation structure are
splitting project work into various divisions and sub-divisions,
grouping people involved in the project at higher, middle and
lower levels and allocating them activities and so on. Refer to
Section 3.2 Project Organisation and HR Planning.
3. The essentials of developing an efficient project team are team
plan, situation, assurance, etc. Refer to Section 3.3 IT Project
Team.
4. Project environment refers to a physical setting in which
individuals work. Refer to Section 3.4 Project Environment.
5. Change management is a process of identifying and implementing
the required changes in an organisation in a controlled manner.
Refer to Section 3.6 Resistance and Conflicts.

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3.10 SUGGESTED READINGS & REFERENCEs
SUGGESTED READINGS
Dvir, D., Raz, T., &Shenhar, A. J. (2003). An empirical analysis of
the relationship between project planning and project success. In-
ternational Journal of Project Management, 21 (2), 89-95.
Lewis,J. P. (2005). Project Planning, Scheduling & Control, 4E. Mc-
Graw-Hill Pub. Co..
Hughes,B., & Cotterell, M. (2006). Software Project Management.
New Delhi: Tata McGraw-Hill.
Royce, W. (1999). Software Project Management. Pearson Educa-
tion India.
S
Larson,E. (2004). Project Management Structures (pp. 48-66). John
Wiley & Sons, Inc..
Pinto,
J. K. (2002). Project management 2002. Research-Technology
IM
Management, 45 (2), 22-37.
E-REFERENCES
A. (n.d.). Human Resource Plan. Retrieved May 08, 2017, from
http://www.projectmanagementdocs.com/project-planning-tem-
plates/human-resource-plan.html
M
Construction Scheduling & Planning Software. (n.d.). Retrieved

May 08, 2017, from https://www.teamgantt.com/construction-plan-
ning-software/
IT Project Management. (n.d.). Retrieved May 08, 2017, from
N
https://www.projectsmart.co.uk/it-project-management.php
IT Project Management for Beginners. (n.d.). Retrieved May
08, 2017, from https://resources.workfront.com/project-manage-
ment-blog/it-project-management-for-beginners
IT Project Management. (n.d.). Retrieved May 08, 2017, from
https://www.coursera.org/learn/it-project-management

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M
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C h a
4 p t e r
Developing the Project

Charter and Project Plan
CONTENTS
S
4.1 Introduction
4.2 Project Management Process
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Activity
4.3 Project Integration Management
Activity
4.4 The Project Charter
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Activity
4.5 Planning of a Project
4.5.1 Need for an IT Project Plan
N
4.5.2 Criteria for Developing an IT Project Plan

4.5.3 Contents of a Project Plan
4.5.4 Planning Process
Activity
4.6 The Work Breakdown Structure (WBS)
4.6.1 Key Points to be Observed During WBS Creation
4.6.2 Resource Allocation as per WBS
Activity
4.7 The Linear Responsibility Chart
Activity
4.8 Multidisciplinary Teams
Activity

CONTENTS
4.9 Summary
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Developing the Project Charter and Project Plan 75
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STATE BANK OF INDIA, WORLD’S LARGEST CENTRALISED

CORE PROCESSING IMPLEMENTATION
State Bank of India (SBI) is the largest public sector bank in

India. It is one of the oldest banks in India catering to various
types of customers, such as rural, urban and the people living in
metro cities of India as well as the Indians living in other coun-
tries across the world.
Of late, due to the influx of private and multinational banks, SBI

has been losing its market share. The prime reason for the loss of
customers is the fact that these foreign banks have quickly adopt-
ed the advantages of the Information Technology advancements
and the power of networking into their business processes. SBI
S
being a public sector bank, could not take advantage of the tech-
nology due to several government regulations involving the ap-
provals and the sanctions.
IM
However, SBI has also to survive the market and, consequently,
the government and the State Bank management decided to re-
gain the market share by providing tough competition to these
foreign banks by inducting information technology into their
core-banking operations and providing superior facilities to their
customers. The management of SBI believed that with this ap-
M
proach, they would be able to regain the market share.
Consequently, they hired the best consultant and IT specialist to

carry out this project. The project steering committee went ahead
and prepared the project plan to carry out this massive comput-
N
erisation of the banking operations of SBI.

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learning objectives

>> Describe the project management process
>> Explain the project integration management
>> Elucidate the project charter
>> Describe the planning of a project
>> Explain the Work Breakdown Structure (WBS)
>> Elucidate the linear responsibility chart
>> Describe the multidisciplinary teams
4.1 INTRODUCTION
S
In the previous chapters, we have discussed the various aspects of
people management issues and challenges that a project manager is
IM
required to undertake. However, despite such challenges and com-
plexities in IT projects and their wavering nature, every project must
be completed within time. These timelines, in most of the cases, get
extended due to several factors, some of which are enumerated as fol-
lows:
Existence of communication gap among stakeholders and share-
holders and their failure to define exactly as to what is required in
M
the project.
Customers are unable to define their exact requirements.
The review process is inadequate and, hence, results in delay of
N
efficient project management processes.

The delay in providing sufficient training to software development
professionals working on the crucial projects.
The problems arising due to time constraints and inflexible sched-
ules.
The various issues related to environmental constraints, assump-
tions, dependencies and the like.
These are some of the factors that affect the project management pro-
cesses but nevertheless their effects can be minimised by creating a
project plan. The reason as to why the effects can be minimised and
not eliminated altogether is the fact that the nature of the IT industry
forces these factors to stay, no matter how effectively we may devise
means and mechanisms to deal with IT project management issues.
In this chapter, you will first learn about project management process
and project integration management. Next, you will learn about proj-
ect charter and planning of a project. Further, the Work Breakdown
Structure (WBS) is explained. Towards the end, you will learn about
the linear responsibility chart and multidisciplinary teams.

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4.2 PROJECT MANAGEMENT PROCESS

A process can be defined as a group of related activities that are per-
formed to achieve predefined goals, provide service or create a prod-
uct. In other words, you can define a process as a way to get some re-
sults. It might involve some type of input along with directions, tools,
or practices to modify the input in order to achieve the pre-specified
output or result. Consider an example of baking a cake for which you
need some ingredients, tools and directions. The ingredients could be
cream, flour, etc. Tools may include mixer, oven, utensils, etc. and di-
rections include recipe method required to bake a cake.
This single process of baking a cake can be further divided into multi-
ple subprocesses, such as mixing, baking, or decorating, etc. If some-
one is preparing a cake for the first time, he/she might follow the reci-
S
pe directions strictly. When the person gets experienced, he/she might
experiment with the process of baking the cake by changing the quan-
tity of ingredients, trying some new cream flavours, etc.
IM
A process is a significant component of project management. It sup-
ports all the tasks that are required for planning, creating, and manag-
ing all the activities related to a project. The project management pro-
cess helps in initiating, planning, executing, monitoring, controlling,
and finally closing a project. Suppose you are a caterer and get an
order to supply cake in a birthday party. In this case, the project man-
M
agement processes are required for defining, planning, estimating the

cost, and delivering a cake to fulfill the expectations of the customer
while making the process profitable for you.
The project management process is grouped into five process groups

N
that are required for managing the project by functionality or accord-

ing to the nature of the work that requires to be performed. The five
different project management process groups are shown in Figure 4.1:
Initiating
Project Management Process Groups
Executing
Monitoring and Controlling
Closing
Planning
Figure 4.1: Project Management Process Groups

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Let’s elaborate these process groups:

Initiating: The initiating process group indicates the starting of
the project or a phase. For example, the organisations can develop
a business case as a part of their IT development methodology to
initiate a project. A group of project management processes may
define the way of initiation of the project and the first phase of
the methodology. When the business case gets approved, another
set of processes can be started to move onto the next phase of the
project which may include development of a project plan and a
project charter.
Planning: The planning process group provides support to plan
the entire project or each individual phase of the project inde-
pendently. Supporting project management processes might in-
clude activity planning, cost estimation, resource planning, time
S
estimation and scope planning. The planning process relies on the
size and complexity of the project, that is, large and more complex
projects require smaller and less complex projects. Planning pro-
cesses are most important in the second phase of IT project meth-
IM
odology after the development of the project charter and the proj-
ect plan. Planning processes are significant for each phase while
objectives and activities can be redefined as per the availability of
the new information or feedback.
Executing: After the approval of a project plan, the executing pro-
cess group emphasises on the integration of people and resources
M
in order to perform the activities planned in the planning phase.

In this phase, the product-oriented processes, which are nothing
but software engineering processes, tools, and methods, play a sig-
nificant role and are supported by project management processes,
N
such as quality assurance, risk management, and team develop-

ment.
Monitoring and Controlling: The monitoring and controlling pro-
cess group enables you to manage and measure the progress to-
wards the project’s schedule, budget and quality. The monitoring
and controlling process enables a project manager to keep an eye
on the progression of the project to know whether it is progressing
in the direction to achieve the desired result or not. It also allows
the project manager to measure the deviations between the actual
and the planned results so that corrective actions can be taken,
whenever required.
Closing: The closing process group facilitates formal closing of the
project with the client after its acceptance of the product or service.
Closure of a project can be done in two ways—contract closure
and administrative closure. Contract closure allows you to ensure
that all the project-related deliverables and agreed points of the
project are fully completed and delivered so that the project can
be finished. Administrative closure, on the other hand, includes
project-related documentation and archiving of those documents.

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1. The project management process can be grouped into _____

process groups.
2. The planning process group only provides support to plan the
entire project. (True/False)
Activity
Find out and enlist the differences between the project manage-
ment and product-oriented processes.
4.3 PROJECT INTEGRATION MANAGEMENT
S
Project integration management comprises processes and activities
for determining, defining, combining, unifying, and coordinating the
several processes and activities related to project management. In
IM
the context of project management, integration consists of features
of unification, association, communication and integrative tasks that
play major roles to control the execution of a project by completing
it successfully, managing the stakeholder expectations and meeting
requirements.
M
Project integration management allows you to make choices about al-

location of resources, achieve trade-offs among the challenging objec-
tives and options, and handle interdependencies that exist among the
project management knowledge areas.
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The various processes of project integration management are shown

in Figure 4.2:
Develop project charter

Project integration management process
Develop project management plan
Direct and manage project work
Monitor and control project work
Perform integrated change control
Close project or phase
Figure 4.2: Various Processes of Project Integration Management

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The various processes of project management are as follows:

Develop project charter: Project charter is a formal document
that is used to authorise a project and provide specific rights to the
project manager for using organisational resources in the project
tasks or activities. You cannot initiate a project without creating
a project charter. A project charter must contain the name of the
project manager and a statement of work (SOW) or a first draft of
what the project manager has to deliver. The project deliverables
might also comprise the project plan, the high-level features and
functionality of the application system.
Develop project management plan: The project management
plan document describes execution, monitoring, controlling and
closing of the project. The project plan may be changed several
times during the life cycle of the project. Therefore; the document
S
acts like a tool that summarises how the goal and objectives of the
project will be met.
Direct and manage project execution: The project manager ful-
IM
fills the project management plan by combining all the project pro-
cesses into an organised effort.
Monitor and control project work: During the execution of the
project, effort and resources are used for achieving the pre-decid-
ed goals and objectives of the project. Therefore, monitoring is re-
quired to know whether the project is moving in the right direction
M
or not. The controlling of the project is done if the project is devi-

ating from the pre-decided goals and objectives. The defect repair
tasks and rework are required in case the quality standards of the
project deliverables or processes do not meet.
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Perform integrated change control: Changes during the execu-

tion of the project life cycle is unavoidable. Some methodologies in
the project life cycle welcome the changes during the project life
cycle while others do not. Irrespective of this, the change control
processes ensures that all the proposed changes must be docu-
mented, reviewed, and decided upon. After that, the tasks required
for correction, prevention or defect repairs must be done efficient-
ly and effectively as the proposed changes impact the scope, bud-
get, schedule and quality of the project.
Close project or phase: This phase includes the closure of the proj-
ect by using the administrative and contract closure procedures.
Irrespective of the completion of a project on time or earlier, the
project must be closed using the close project processes.
3. You cannot initiate a project without creating a project charter.

(True/False)

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4. ______ is required to know whether the project is moving in

the right direction or not and _______ of the project is done
if the project is deviating from the pre-decided goals and
objectives.
Activity
Meet the project manager of an IT organisation to know how inte-

gration management is performed in the organisation.
4.4 THE PROJECT CHARTER

A project charter is a document prepared by the project sponsor, i.e.
S
by the executive management. It is then handed over to the project
manager to set the plan accordingly. When planning is over, the proj-
ect charter is executed as per the project plan prepared by the project
manager. The project charter includes the following points:
IM
The reason as to why the organisation wants to execute the
project: There can be many reasons for it, such as expansion of
business to other geographical territories to stay competitive in
the market, to gain a multifarious expertise, etc. For example, a
company wants to move into the Android arena from the Linux
arena. For this, it enters into a project based on the development of
M
software that will allow users to control their banking operations

on their Android-based phones.
Various stakeholders and their predefined requirements: This
refers to the individuals who are directly or indirectly associated
N
with the project. For example, the executive management wants to

have software that will provide them with the analysis of market
surveys.
Various objectives of the project: The objectives of the project
provide clear directions to reach the target. These objectives must
be stated in a numeric format.
Defining the scope of the project: This refers to what is to be or
not to be there in the project.
Various assumptions and constraints that manifest in the proj-
ect: This defines various types of restrictions that are required in
the project.
Figure 4.3 shows a sample project charter document having different

fields, such as project title, problem statement, goal statement, project
scope, etc.:

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Project Charter Worksheet

Project Title:
Business Case:
Problem/Opportunity Statement:
Goal Statement:
Project Scope:
Project Champion: Other Stakeholders:
S
Project Sponsor:
Project Manager:
Steering Committee:
IMEstimated Cost Savings: Realised/Actual Cost Savings:
(This will be completed after the
project is complete)
Preliminary Plan Target Date Actual Date Notes/Lessons Learned:
Start Date (This will be completed after the
Define project is complete)
Measure
Analyse
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Improve
Control
Completion Data
Terminology:
Define = Map the process, identify the problem (what are we measuring? Who/what is impacted?)
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Measure = Data collection plan (how will you collect data?)

Analyse = Analyse data (effectiveness), process (efficiency), and root cause
Improve = Determine solutions (e.g. brainstorming afffinity diagram, etc.)
Control = Set up control measures (e.g. Audits)
Figure 4.3: Project Charter Template

Source: https://s-media-cache-ak0.pinimg.com/564x/82/be/8d/82be8d561f8cfc786e8d5bd498b-
6c61d.jpg
It has been mentioned earlier that there are few similarities between
a project plan and a project charter. However, project plans are pre-
pared by project managers, whereas project charters are prepared by
the executive management, generally the chief technical officer (CTO).
Thus, a project plan has its own set of constraints and assumptions,
and a project charter has its own. For example, in case of a project
charter, the constraint could be budgetary, i.e. financial constraints,
whereas, in case of a project plan, the constraint could be that the
developers are required to work at night due to time difference with
the client in US.

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5. A project plan has its own set of constraints and assumptions

while the project charter does not have any constraints or
restrictions. (True/False)
6. A ________ is a document which is handed over to the project
manager to set his/her planning upon.
Activity
Determine how to avoid pitfalls in a project charter.
S
4.5 PLANNING OF A PROJECT
A plan means a series of steps which must be followed to accomplish
a predefined goal by taking into consideration the present status of
IM
the available resources and various other related factors. When we
talk of an IT project plan, we mean taking into account the current
status of various interrelated entities and applying them to reach the
destination where we want to be. In other words, IT project planning
identifies the current resources including the environment and ap-
plies them to reach to the destination in future.
M
Let us take an example to illustrate the concept of planning a project.

Suppose a company gets an order to develop a Web-based software
application for a particular client. Now, the project manager will de-
velop a project plan in which first of all, a WBS, i.e. the work break-
N
down structure is created. The WBS determines the tasks that are
to be done in the project. Based on the WBS, the project manager
will determine the number and type of resources required for each
of the tasks enlisted in the WBS. These resources can be in terms of
manpower resources, software resources and the hardware resources.
The project manager will apply these identified resources to achieve
the final target that is to deliver the software to the client. While ap-
plying the identified resources, the project manager will take into ac-
count the various constraints, risks, assumptions, dependencies and
other entities, which may hinder the process of reaching the destina-
tion that is delivering the software to the client.
4.5.1 NEED FOR AN IT PROJECT PLAN
From the above discussions, it is clear that when it comes to the pro-
cess of planning an IT project, we use the present structure (that is
project execution environment), identify the available and required
resources and apply them in that structure to accomplish the goal.

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The following points discuss the need to prepare an IT project plan:

An IT project plan details out the scope of the work required to
be carried out in the project execution process. For example, it
provides the details of the methodologies to be deployed, how the
execution and monitoring of the project would be carried out and
the like.
An IT project plan provides an overview of the various aspects of
the project at the start and at the selected stages of the project
depending on the frequency of updating the project plan. These
different aspects of the project are project risks, constraints, or-
ganisational structure, project deliverables and the like.
An IT project plan sets the clear expectations about the roles and
responsibilities of each entity participating in the project execu-
tion process. For example, the role and responsibility of the config-
S
uration manager is to implement the configuration management
process in the project life cycle, while the role of the marketing
team project is to interact with the customer regarding the pos-
IM
sibility of repeat orders or an extended version of the software.
By clearly defining the roles and boundaries, each person exactly
knows as to what is to be done with respect to his responsibility
and authority in the various facets of the project life cycle.
An IT project plan sets the timelines for all interconnected activi-
ties and events in the project execution process.
M
An IT project plan provides the framework for the usage of various

metrics to be used in the project execution process. These metrics
ensure an effective and efficient project management and tracking
mechanisms.
N
An IT project provides the list of receivables from the customers

and a list of deliverables to the customer and the manner in which
these can be used in the project execution process.
4.5.2 CRITERIA FOR DEVELOPING AN IT PROJECT PLAN
After learning the significance of having an IT project plan, let us now

dwell on the aspects related to the development of an IT project plan.
As mentioned above, the project plan provides the roadmap for the
execution of an IT project but the means and methodology deployed
in the preparation of the plan is not an easy task as there are several
aspects which needs to be taken into consideration.
Some aspects that are taken into consideration for the preparation of
an IT project plan include the following:
The business objective of the project: Determining the business
objective is the most important step in the preparation of the proj-
ect plan. Unless and until this aspect is taken into consideration,
the whole exercise related to the preparation of the plan is a waste.

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The scope of the project: This takes into consideration the bound-
aries of the work to be done in the project.
The project organisational structure: This ensures that the roles,
responsibilities and authorities of the various entities in the proj-
ect are clearly defined to ease out the project execution process.
Risks, assumptions, dependencies and constraints of the project:
All these aspects of a project and the methodologies to deal with
them are clearly outlined in the project management processes.
Acceptance criterion of the project deliverables: This criterion
is set in conjunction with the customer on the basis of which the
client signs off the project, that is, the project will be considered as
closed.
Project standards: This depicts the project standards to be de-
ployed in the project. Setting project standards makes project
S
tracking and management easier.
Experiences gained in the previous projects: The lessons learned
from the experiences of an earlier project helps the project exe-
IM
cutioners to deal with the current tasks in a more efficient and
effective manner.
Estimation of cost to be used in the project: This is another im-
portant point which is to be utilised in the consideration of prepa-
ration of the project plan. This helps various stakeholders to assess
the estimated cost and plan their work accordingly.
M
Budgetary control measures: This is the major aspect at which

managers would like to focus their attention with the objective of
not exceeding the allocated project budget. The managers prepare
their plans and take appropriate measures to finish the project
N
within the allocated budget.

Project status and review meetings: This is another aspect which
is related to the progress of the project. The timely status helps
in getting the knowledge about the progress of the project or how
much work is completed. The review meetings are also conducted
for reviewing the quality of work being done or required in the
project.
Communication plan: This aspect deals with the issues related to
communication of the various audiences, such as project manager,
project sponsor, project stakeholders, etc. related to the project.
A good communication plan comprises frequency of communica-
tion, communication goals, target audiences, key content for the
communication and method of communication.
4.5.3 CONTENTS OF A PROJECT PLAN
Having discussed the various points of consideration while creating a

project plan, let us now dwell on the various contents of an IT project
plan.

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In general, the following are the contents of an IT project plan:

Project overview: This section covers the overview of the project
and provides the introduction to the project and what the project
hopes to achieve.
Project details section: This section covers the details of the proj-
ect, such as the type of the project and the phases of the project,
the estimated effort involved in the project, the cost of the project,
the client contact details and the like.
Critical dependencies, milestones and the deliverables: This sec-
tion is used to state the critical dependencies and the milestones of
the project along with the deliverables that are in the project.
The strategy to be adopted in the project execution process: This
section highlights the strategy to be adopted in the project, such
S
as the type of the model to be adopted in the project management
process. In other words, it details out the various aspects related to
the management of the project.
IM
Roles and responsibilities of the project team members: These
are required to be clearly defined in the project plan. By including
the roles and responsibilities, the boundaries are set and the exe-
cution process becomes easier for the work to commence.
Data management process: This is concerned with the data re-
ceived from the client as well as the data received from other
M
stakeholders.
Risk management process: This covers the various aspects of de-
termining the risks in the projects based on the project type, the
project execution methodology and the environment of the project.
N
Hardware and software requirements of the project: This sec-

tion covers the hardware and software requirements related to the
project. It ensures proper configuration of the hardware and sup-
porting software required to execute the developed project.
Projectmonitoring and tracking: This section describes the
means and mechanisms to monitor the project so that appropriate
management controls can be applied.
Metrics related to project management controls: This section of
the project plan contains the various metrics, such as cost, sched-
ule, etc. deployed in the project management processes.
Quality assurance and the quality control: This section of the
project management deals with the issues related to project’s qual-
ity management. The quality assurance and quality control make
sure that what has been done in the project till now must meet the
quality standards.

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Configuration management section: This section deals with the

process of managing configuration of the project items. It also en-
sures that multiple versions of the deliverable project must not be
created.
Safety and security of the project entities: This section deals
with the safety and security of the project entities especially of the
means and mechanisms deployed for the security of the financials
related to the project, travel costs and the like.
Compliance to quality model and the organisational processes:
This is another vital section of the project plan that covers the as-
pects such as compliance to quality models, e.g. CMMI and the
like.
4.5.4 PLANNING PROCESS
S
Every IT project is required to be planned and managed properly.
The planning of a software project is usually performed in two stages.
At the outset, the marketing team and CTO sit together and work out
IM
the project plan. This is the stage wherein the bidding process com-
mences. This project plan is done for the purpose of showing it to the
client.
Once the project has been allotted to the company after bidding, a
second project plan is prepared, this time by the project manager.
M
At this stage, the project plan is aimed to provide direction to the team
members regarding the schedule and resources.
The planning process starts with the identification of the key areas
in the project management and establishment of management con-
N
trols in those key areas. Examples include project communications

management, project scope management, project quality assurance
management, etc.
When planning for IT projects, the following key points must be kept
in mind:
Setting objectives of the project: This means defining the objec-
tives that the project will achieve. There can be more than one
objective for the project. For example, the financial objective may
be to execute the project with a margin of 40%, meaning that the
profitability of the project should be 40%. Other example could be
that the resources’ capacity utilisation for the project should be
more than 80%, and so on.
Determining steps to achieve objectives: This could mean iden-
tifying the crucial components or parameters that will guarantee
the achievement of the objectives of the project.

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7. The project plan takes into account the project _______

structure.
8. Acceptance criterion is also one of the components of project
plan formulation. (True/False)
Activity
Conduct a research on various factors that can be taken into ac-

count for preparing the project plan. Prepare a report with exam-
ples.
S
Exhibit
Baseline Plan
IM
A software development project is highly dynamic, which means
that during the development of the software, several changes are
expected to be proposed by the client, and all these changes are
also required to be introduced into the software. These changes
can be regarding the technology, documentation, scope of the pro-
ject or its requirements. For example, the client initially proposes
the development of a single module of student registration in the
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student information system. However, during the course of the de-

velopment of the software, the client comes up with a new set of
requirements, such as generation of marksheet and fee collection
systems in addition to the student registration module. The client
N
is also ready to increase the time and cost involved in the new ad-
ditional requirements. Hence, in this case, the entire design is re-
quired to be changed. In fact, the whole process is required to be
reconstructed.
With new changes or additions in the features of the software under

process, the baseline plan, which is a fixed schedule to represent
the standard on which the project performance is measured time
to time, will also be adjusted. This newly revised baseline plan is to
be used instead. However, any changes in the baseline plan must
be done with the permission and knowledge of all those who will
directly or indirectly be affected by the changes.
THE WORK BREAKDOWN STRUCTURE

4.6
(WBS)
After understanding the various aspects related to the contents of the
project plan, let us now dwell on the concepts of another very import-
ant facet of project management plan. This important facet is the work
breakdown structure.

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But before we dwell on the various features of work breakdown struc-

ture, let us first define as to what we mean by work breakdown structure.
In simple terms, work breakdown structure refers to the macro view
of all the tasks and the associated activities related to the tasks that
are required to be carried out in the project.
Worth mentioning is the fact that the activities in the task may follow
a waterfall model or they may start as parallel activities. It all depends
on the type of the project and the order of the execution of tasks and
the activities of tasks in the project.
Let us take an example of WBS so as to bring out conceptual clarity.
Let us say that a software development project is about to commence
and the project manager is required to prepare the WBS.
The first step that the project manager would be following is the iden-
S
tification of the tasks to be carried out in the project. The following
are the various tasks in the project, which are enumerated as follows:
Tasks related to requirements gathering and requirement analysis
IM
Tasks related to the design of the software
Tasks related to coding of the software based on the requirements
and design
Tasks related to testing of the software
Tasks related to implementation of the software
M
This is the macro view of the tasks, which are to be carried out in
the project. In other words, this is the Work Breakdown Structure.
The macro view contains the various activities that are required to be
N
carried out in the project. The following illustrates the concept:

Tasks related to requirements gathering and requirement analysis:
Requirement gathering for Module A
Requirement gathering for Module B
Tasks related to design of the software
Preparation of ERD diagram
Preparation of the database of the software
Tasks related to coding of the software based on the requirements
and design:
Coding for Module A
Coding for Module B
Tasks related to testing of the software
Testing for Module A
Testing for Module B

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Tasks related to implementation of the software:

Server preparation
Installation of database
Installation of the software on the server
Testing the software
Acceptance testing by client
Worth mentioning is the fact that in this WBS, the project manager
can depict the sequence of the activities to be followed in the project
management process. For example, the requirement gathering and
analysis for Module A and for Module B can proceed in parallel and so
is the design phase. But the implementation activity can only be car-
S
ried out once the software coding and testing have been completed.
Apart from that, the project manager can depict the timelines as well
as depict the resources deployed for each of the activities as well as
the tasks in the project life cycle. Nowadays, several tools are available
IM
such as MS project which can depict the costs for the resources as well
as the percentage of the activity which has been completed in the task.
Figure 4.4 depicts the WBS of an IT project:
M
N
Figure 4.4: Work Breakdown Structure of an IT Project

Source: http://edge.rit.edu/edge/P09141/public/MSD%20I%20WBS.bmp

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4.6.1 KEY POINTS TO BE OBSERVED DURING WBS

CREATION
Having understood the basic concept of a WBS, let us now dwell on
the key points to be observed while creating a WBS. In general, the
following points are observed while creating a WBS:
Business objectives of the project: This is the one of the most es-
sential components in WBS. The reason as to why this is the most
important component of the WBS preparation is the fact that de-
pending on the objectives of the project, certain other activities
and tasks come into the picture, which normally do not have much
weightage in the project execution. For example, if the project in-
volves the development of a software application for a mission-crit-
ical project, such as sending a spacecraft into space, then its qual-
ity aspects, such as zero defects software play the most important
S
role. Therefore, more weightage on quality assurance activities,
such as multiple checks, review process and the like are necessar-
ily required in WBS.
Nature of the IT project: It describes the type of the project such
IM
as whether it is a turnkey project or time-and material-based proj-
ect or onsite or offshore project.
Duration of an IT project: It describes the time in which the proj-
ect must be completed. This factor is taken into consideration as
the duration of the project is the most important factor. Any delay
in the time factor has disastrous consequences, like increase in the
M
overall cost of project, decrease in gains, client dissatisfaction, etc.

Operational cost of an IT project: This factor involves cost of op-
erating an IT project. It may include expenditures, such as cost
involved in staffing, maintenance cost of hardware, electricity cost,
N
etc. This is also an important aspect of an IT project which defi-

nitely impacts the project margin.
Number of activities and their order of execution: The number
of activities and the priority of their execution are also considered
in WBS. There are certain activities which run in parallel exe-
cution mode, which means they can be executed simultaneously
while there are certain activities which run in the waterfall mode,
which means that after completion of one activity, another activity
will start.
Time factor involved in the conduct of supporting activities:
There are certain activities in project execution that support a
main or major activity. These activities are known as supporting
activities.
Buffer time: The other crucial point that must be taken into con-
sideration is keeping some buffer time to take stock of the various
aspects of the project before embarking on the implementation
phase. Buffer time is the extra time that is added to different activ-
ities or phases of the project to keep it on track. Sometimes, extra

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time may be required in a task to complete it. Due to already allo-

cated buffer time, the task would not use the portion of the time of
another activity for getting completed. Generally, IT project man-
agers do not include this aspect while preparing the WBS.
Implementation phase of an IT project: Worth mentioning is the
fact that implementation phase of an IT project is the most cru-
cial phase because the developed software is ultimately required
to run on the client machines, that is, in the actual project envi-
ronment, otherwise it is of no use. It becomes extremely difficult
for the project manager to assess the actual conditions at client’s
end for running the project. Thus, preparation of WBS becomes
difficult and is sometimes based on approximations of the project
manager.
S
4.6.2 RESOURCE ALLOCATION AS PER WBS
Having understood the key points that are to be observed in the

preparation of WBS, let us now discuss the allocation of resources for
IM
the various identified activities in the project. Allocating resources for
the various activities in the WBS requires some of the key issues that
need to be taken into consideration. Some of the key points are listed
as follows:
Resource allocation is done on the basis of the objectives of the
project. For example, if the objective of the project is to execute the
M
project as quickly as possible and if the project should be the qual-

ity software so that the company expects to get many orders on
long-term basis. Therefore, to develop the good-quality software,
the company will pump in more and more resources having expe-
rience in quality-assurance activities. This enhances the quality of
N
the software developed.

It is done on the basis of the stage of the project and the status of
the project execution progress at that particular stage. For exam-
ple, if the work in a particular functionality of a module of a partic-
ular software is delayed due to late response on the query raised by
a software developer, then the project manager may allocate an ad-
ditional software developer on the project to encounter the delay.
Itis also done on the basis of the expertise of a particular per-
son. For example, an experienced resource in an organisation may
work only 50% of the time in the project as he is already playing
the key role in another project. In such a case, his expertise is
available only for 50% of the time.
It is also done on the basis of the cost of the resource that is the
billing rate of the resource. When more experienced persons are
allocated to a project, the cost increases automatically due to their
high salaries. In order to maintain the profit balance, the resourc-
es are allocated in a balanced way, i.e. the combination of expe-
rienced persons and fresher employees in the company. The in-

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volvement of heavy-cost resource in the project may decrease the

profit margin. Hence, balanced allocation of resources is neces-
sary for the project.
Itis also done on the basis of demand of the customers. In IT proj-
ect development, due to frequent interaction between the software
developers and clients, a customer relationship gets developed.
Hence, the client feels comfortable in interacting with a particular
developer during the project development. Hence, allocation of re-
sources is done on the demand raised by the customer.
9. A WBS refers to __________ level view of all the tasks in project.

10. Resource allocation is also done on the basis of stage of the
S
project. (True/False)
Activity
IM
Research the contents of a project plan. Prepare a report with ex-
amples.
Exhibit
Project execution and tracking as per the project plan

M
Just preparing the WBS is not enough, the project is required to

be tracked as per the WBS. Unless the project is tracked, managed
and controlled, it cannot be completed at any cost. Hence, project
-tracking and management is the most important function of the
N
project manager with regard to the project execution process and

the achievement of the business objective of an IT project.
In simple terms, the word ‘tracking’ refers to the process of com-
paring the various defined parameters of the project with what was
planned initially and what is the current status of that parameter.
If the actual value of the parameter is more than the planned value
of the said parameter, then the project is said to be not on track. Of
course, variations are bound to be there, but there must not be too
much variation. Let us take an example of what we are discussing
with respect to tracking.
Suppose a project manager has planned in the WBS that the time
required for writing a piece of code for request registration func-
tionality is 10 days. But the developer took 12 days to complete the
work. Hence, there is a delay of 2 days which is an acceptable vari-
ation, but if the developer has taken 25 days, then the variation is
of 15 days and this variation has been arrived due to tracking of the
project and the figure has been obtained by comparing the planned
with the actual value of the parameter effort.

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In general, the tracking of an IT project is done in the following

manner at various levels and by different persons:
The tracking of the project is done by the executive manage-
ment, client, project manager, the quality manager and other
various stakeholders.
The tracking of the project is done with respect to what was
planned and what has been achieved with respect to the said
parameter; for example, effort required for coding the function-
ality in the above example.
The parameters for tracking an IT project are decided before-
hand and these parameters are determined with respect to the
project objectives set by the executive management. For exam-
ple, the mission critical software projects lay heavy weightage
to quality parameters whereas in other types of projects, qual-
S
ity parameters will be given hardly any weightage and more
weightage will be given to cost parameters.
The tracking of an IT project is also done by the persons who
IM have expertise in their domain. For example, the technical per-
son will evaluate the progress of the project in terms of the per-
formance of the database and network traffic. In the same man-
ner, the finance person will track the project in terms of the cost
which is going into the project with respect to planned and the
actual cost parameters.
M
4.7 THE LINEAR RESPONSIBILITY CHART

We know that project management involves identifying and defining
the necessary activities with clear scope. Since the project activities
N
are to be executed by human resources, there must be a responsibility

chart to detail out the specifications of the tasks to be met by each in-
dividual involved. Hence, we have Linear Responsibility Chart (LRC).
An example of an LRC is shown in Figure 4.5:
Figure 4.5: A Linear Responsibility Chart

Source: https://web.njit.edu/~ml7/ie492_project/IE_LRC2.jpg

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It can be concluded from Figure 4.5 that to construct an LRC, there

is a need of the existence of a WBS. WBS is the process of breaking a
task into smaller tasks parallel to the objectives of the project. These
tasks are then executed in an order for meeting the deadlines, keep-
ing the cost under control, and delivering quality product, that is, a
defect-free software. It renders the whole process simple and quick.
An LRC can be as detailed and specific as required depending upon

the type of the project and methodology that the project manager
adopts. There can be several versions of this chart. Let us understand
this through an example: An industrial engineer is responsible for
task A1, that is, he is fully responsible to ensure the completion of task
A1 in time, and the project manager is the approver of task A1. Hence,
the performer and the approver of task A1 will be clearly depicted in
the LRC. The following points summarise the importance of an LRC:
S
It sets directions for each of the players in the project team.
It
brings clarity with respect to who is responsible for what and at
what point of time in the PLC.
IM
It ensures that there is no overlapping of the jobs and expectations
of the resources.
Itbrings in a process-driven approach to manage and control the
project.
Without an LRC, no project can survive because of the occurrence of

M
turbulence in the project as well as in the team.

N
11. LRC stands for:

a. Linear responsibility chart
b. Lower responsibility chart
c. Lower response chart
d. Linear response chart
12. To construct an LRC, there is a need of the existence of a
__________.
Activity
With the help of the Internet, find out the disadvantages of linear
responsibility chart.

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4.8 MULTIDISCIPLINARY TEAMS

The project team ensures whether the project is able to fulfill its ob-
jectives or deliver the software to the client as per its guidelines. The
formulation of the project team is the most important aspect in the
management of IT projects. The following factors are important for
the formulation of the project team:
The formulation of the team is based on the requisite output that
each team member is required to deliver.
Those persons who do not have attitudinal issues are included in
the project team. Issues, such as ego problems, politics, etc. derail
a project’s track and create several bottlenecks, resulting in exces-
sive time loss.
During the course of formulation of the project team, the team
S
members’ career plans, individual problems and issues must be
considered.
Leadership qualities and excellent communication skills are one
IM
of the most important factors for the formulation of the project
team.
The formulation of the project team should be based on the tech-
nical knowledge of the team members. They should be technically
sound in their respective domains.
The formulation of the team members should be done on the basis
M
of the various stages of the project. For example, a beginner or a

novice is considered during the initial phases of the project. On the
other hand, if the project is in the development or implementation
phase, then the experienced professionals are preferred.
N
Figure 4.6 depicts the criteria for the formulation of the project team:
Skills
Availability
Cost
Project
Team Experience
Formulation
Criteria
Ability
Knowledge
Attitude
Figure 4.6: Criteria for Project Team Formulation

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IT projects are highly dynamic and prone to frequent changes. These

changes can be in varied forms. There may be changes in require-
ments, design, business model, approach to project management, bill-
ing of the resources, and project execution methodology. Apart from
these changes, software professionals have to travel abroad and work
during the night. So, IT projects need multidisciplinary and multicul-
tural teams.
Let us consider a classic example of multidisciplinary and multicul-

tural teams. An IT company is working on a project that is a joint
venture between four companies from different countries. The project
is the complete digitalisation of telecom services for Zimbabwe. Its
hardware component is provided by the Japanese and the software
is developed by the Indian companies. The quality consultant of this
project is the German company. In this project, all the project manag-
S
ers from different countries coordinate with one another, irrespective
of their cultural differences. They handle multidisciplinary roles so
that the project must be completed on time.
IM
During the execution of the project, differences of opinions, opposing
ideas, self-interest and personal goals in multidisciplinary teams may
take place. These things lead to conflicts in the teams. Therefore, it
becomes the duty of the project manager to manage these conflicts.
While managing the conflict, the following aspects are considered:
Identifyingor recognising the conflict through visible indicators,
M
such as body language, facial expressions, etc.

Classifying the type of the conflict, i.e. whether it is a group conflict
or peer-to-peer conflict
Resolving the conflict by appointing a facilitator, or an experienced
N
person
The techniques that can be followed to resolve conflicts are collabora-

tion, facilitation and compromise.
13. ________ and ________ skills are one of the most important
factors for the formulation of the project team.
14. The techniques that can be followed to resolve conflicts are
collaboration, facilitation and compromise. (True/False)
Activity
Using the Internet, find out how management controls can be de-
ployed for measuring team performance.

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4.9 SUMMARY
A process is a significant component of project management which
supports all the tasks that are required for planning, creating, and
managing all the activities related to a project.
Projectmanagement process helps in initiating, planning, execut-
ing, monitoring and controlling, and finally, closing a project.
The monitoring and controlling process group enables you to
manage and measure the progress towards the project’s schedule,
budget and quality.
The project management plan document describes execution,
monitoring, controlling and closing of the project.
An IT project plan sets the timelines for each of the interconnected
S
activities and events in the project execution process.
Work breakdown structure refers to macro view of all the tasks and
the associated activities related to the tasks which are required to
IMbe carried out in the project.
An LRC can be as detailed and specific as required, depending
upon the type of the project and methodology that the project
manager adopts.
key words
M
Process: It can be defined as a group of related activities per-

formed to achieve the predefined goals, service or a product.
Project charter: It is a formal document that is used for authori-
N
sation of the project and provides specific rights to the project

manager for applying organisational resources to the project
tasks or activities.
Plan: It is used to determine the series of steps which must be
followed to reach to a particular destination.
Project team: It ensures whether the project is able to fulfill its
objectives or deliver the software to the client as per its guide-
lines.
Work breakdown structure: It refers to macro view of all the
tasks and the associated activities related to the tasks which are
required to be carried out in the project.

1. Define project management process. Elaborate the process
management groups with a suitable diagram.
2. What do you understand by project integration management?
Discuss its various processes.

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3. Discuss the importance of project charter in project planning

process.
4. What do you understand by planning a project? Discuss the need
and contents of a project plan.
5. Define work breakdown structure? Discuss the key points that
need to be observed during the creation of a WBS.
6. Explain the concept of LRC in project management with a
suitable diagram.
S
Project Management 1. Five
Process
IM
2. False
Project Integration Man- 3. True
agement
4. Monitoring, controlling
The Project Charter 5. False
M
6. Project charter
Planning of a Project 7. Organisational
8. True
N
The Work Breakdown 9. Macro

Structure (WBS)
10. True
The Linear Responsibility 11. a. Linear responsibility chart
Chart
12. Work Breakdown Structure (WBS)
Multidisciplinary Teams 13. Leadership qualities, excellent
communication
14. True
HINTS FOR DESCRIPTIVE ANSWERS

1. A process can be defined as a group of related activities that are
performed to achieve the predefined goals, service or a product.
Refer to Section 4.2 Project Management Process.
2. Project integration management comprises processes and
activities for determining, defining, combining, unifying, and
coordinating the several processes and activities related to

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project management present in the project management process

groups. Refer to Section 4.3 Project Integration Management.
3. A project charter is a document prepared by the project sponsor,
i.e. by the executive management. Refer to Section 4.4 The
Project Charter.
4. The word ‘plan’ is used to determine the series of steps which
must be followed to reach a particular destination. Refer to
Section 4.5 Planning of a Project.
5. In simple terms, work breakdown structure refers to macro
view of all the tasks and the associated activities related to the
tasks which are required to be carried out in the project. Refer to
Section 4.6 The Work Breakdown Structure (WBS).
6. We know that project management involves identifying and
S
defining the necessary activities with clear scope. Refer to
Section 4.7 The Linear Responsibility Chart.

IM
SUGGESTED READINGS
Marchewka, J.T. (2015). Information Technology Project Manage-
ment. Hoboken: John Wiley & Sons.
Lientz,
B.P. (2011). Information Technology Project Management.
M
Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.
E-REFERENCES
Writer, L.G. (2013, May 02). Multidisciplinary Teams & the Im-
N
portance of Teamwork. Retrieved March 18, 2017, from http://

yourbusiness.azcentral.com/multidisciplinary-teams-impor-
tance-teamwork-21959.html
Project Integration Management: Definition, Processes & Exam-
ple – Video & Lesson Transcript. (n.d.). Retrieved March 18, 2017,
from http://study.com/academy/lesson/project-integration-man-
agement-definition-processes-example.html
The Project Planning Process. (n.d.). Retrieved March 18, 2017,
from http://asq.org/learn-about-quality/project-management/over-
view/tutorial.html

C h a
5 p t e r
Planning the Scope, Budget,

Schedule for IT Projects
CONTENTS
S
5.1 Introduction
5.2 Scope Management in IT Projects
IM
5.2.1 Challenges in Scope Management
Activity
5.3 Project Scope Initiation
Activity
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5.4 Project Scope Planning

5.4.1 Scope Boundary
5.4.2 Scope Statement
5.4.3 Work Breakdown Structure (WBS)
N

Activity
5.5 Project Scope Definition
5.5.1 Product-oriented Scope
5.5.2 Project-oriented Scope
Self Assessment Question
Activity
5.6 IT Project Scope Verification
Activity
5.7 Scope Change Control
5.7.1 Scope Change Control Procedures
5.7.2 Benefits of Scope Change Control
Activity
5.8 Tracking and Monitoring Scope during Project Execution
Self Assessment Question
Activity

CONTENTS
5.9 Developing the Project Schedule

5.9.1 Gantt Charts
5.9.2 Project Network Diagram
5.9.3 Activity on the Node (AON)
5.9.4 Critical Path Analysis
5.9.5 Program Evaluation and Review Technique (PERT)
5.9.6 Precedence Diagramming Method (PDM)
5.9.7 Critical Chain Project Management (CCPM)
Activity
5.10 Project Management Software Tools
S
Activity
5.11 Methods of Budgeting
5.11.1 Incremental Budgeting
IM
5.11.2 Zero-based Budgeting
Activity
5.12 Developing the Project Budget
5.12.1 Cost Estimation
5.12.2 Other Costs
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5.12.3 Resource Allocation

Activity
5.13 Improving Cost Estimates
N

Activity
5.14 Finalising the Project Schedule and Budget
Activity
5.15 Summary

Planning the Scope, Budget, Schedule for IT Projects 103
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ECOSYS EPC—A PROJECT COST MANAGEMENT SOLUTION
About the Client
Tahoe Resources is a publicly-traded, Canadian silver exploration

and development company. It is focused on production growth,
low cash costs and growing silver resources. The company under-
took its first project, Escobal, in 2013 in Southeast Guatemala with
an estimated lifespan of 18 years and a capital cost of $325 million.
Tahoe was looking for a cost management system for Escobal as
well as a model for future projects. EcoSys EPC was selected as its
project cost management software.
About EcoSys EPC
S
EcoSys EPC is a Web-based project cost management solution.
It provides the usability of Excel-like spread sheets, with the
power and control of an enterprise database application. It pro-
IM
vides insight into project costs, efficiency in cost management
and provides greater accuracy and accountability. EcoSys EPC is
designed to provide robust cost management solutions that span
the planning cycle, from estimating, to budgeting and forecasting,
through all stages of project execution.
M
N
Source: http://2nxigckrn3e3s7mb22ph525o.wpengine.netdna-cdn.com/wp-content/up-
loads/2012/08/IntegratedCostReporting.jpg
Organisations can leverage EcoSys EPC to make proactive busi-

ness decisions which positively impact project performance.
Key Features of EcoSys EPC
The following features make EcoSys EPC the ultimate project

cost management solution:
Budgeting and Forecasting

EPC helps to manage costs, quantities and hours for any num-
ber of budget types and revisions.

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It can provide visibility of the budget in any currency.

EPC can import budget line items from Excel or other file for-
mats.
It can help to maintain cash flow forecasts.
EPC can apply performance measures for scenario forecast-
ing.
It can manage actual costs and hours based on the same attri-
butes maintained in GL/ERP/Timesheet systems.
It can integrate actual expenditures from one or more General
Leader (GL) or ERP systems using files or automated imports.
EPC can integrate with actuals from timesheet systems and
S
manage and report accruals.
It can perform periodic closeouts with history lockdown.
IM
Change Management
EPC can maintain changes at each stage of the approval pro-
cess.
It can apply changes to any number of budget types (original
budget, current budget, current forecast, etc.).
M
EPC can designate the business rules for change approval to

align with standard processes.
It can automate workflow and email notification.
EPC can link changes with contracts/purchase orders.
N
Performance Management, Reporting & Auditing

EPC can provide tabular and graphical reporting and analy-
sis.
It provides dashboards and drill down views.
EPC can provide budget status reporting.
It can provide variance and trend reporting.
It can provide reporting by varied periods: fiscal periods, in-
ception to date, current period, etc.
EPC provides unlimited “What-If” scenario analysis.

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learning objectives

>> Explain the importance of scope management in IT projects
>> Describe project scope initiation
>> Explore how to plan project scope for IT projects
>> Discuss how to define project scope for IT projects
>> State the importance of IT project scope verification
>> Explain scope change control
>> Track and monitor scope during project execution
>> Develop the project schedule
>> Describe project management software tools
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>> Discuss different methods of budgeting
>> Develop the project budget
>> Improve cost estimates
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>> Finalise the project schedule and budget
5.1 INTRODUCTION
In the previous chapter, you have learned about planning and prac-
tices required for completing a project. In this chapter, you will learn
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how the scope, schedule and budget of a project are prepared.
Every project has a scope which defines work boundaries and proj-
ect deliverables. Project scope lists specific project goals, desired de-
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liverables, tasks to be performed, costs to be incurred and deadlines

to be met. The Project Management Body of Knowledge (PMBOK)
has defined five processes for project scope management, which are
scope initiation, scope planning, scope definition, scope verification
and scope change control.
Project boundaries and deliverables serve as inputs to determine the

schedule and budget of the project. Project scheduling is all about ar-
ranging project activities in a timely order keeping into consideration
the logical sequence and interdependencies of these activities. Vari-
ous tools and techniques are used for developing the project schedule.
These tools include Gantt charts, project network diagrams, Activity
on the Node (AON), critical path analysis, Program Evaluation and
Review Technique (PERT), precedence diagramming method, and
Critical Chain Project Management (CCPM).
After the project schedule is made, the next step is to prepare a project
budget, which is the sum of costs allocated for the specific purpose of
the project for a particular period of time. An accurate project budget

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helps to control project costs within the approved budget and deliver
the expected project goals.
In this chapter, you will study about scope management in IT projects.

After that, you will study about how to develop a project schedule us-
ing various tools and techniques. Towards the end, you will be familia-
rised with how to prepare the project budget using various tools.
5.2 SCOPE MANAGEMENT IN IT PROJECTS

In the context of project management, the term ‘scope’ is used for de-
fining work boundaries and deliverables of a project. Project scope,
a part of project planning, involves deciding and listing specific proj-
ect goals, deliverables, features, functions, tasks, deadlines and costs.
In other words, project scope is all about determining what is to be
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achieved and what is to be done to achieve that. According to the
PMBOK, project scope is defined as “the work that needs to be accom-
plished to deliver a product, service, or result with the specified features
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and functions.”
The success or failure of a project highly depends on whether the scope

of the project is defined clearly in alignment with time, resources and
budget throughout the span of the project. Project scope management
is a methodology that involves a sequential order of steps performed
to ensure that a project’s scope is defined and mapped accurately. It
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involves five stages as shown in Figure 5.1:
p e i n it ia t io n
Sco
N
Pr del
l
y
oj ive
tr o
ar
ec ra
d
Sc
t-o b
un
c on
o
rie les
o pe
B
nt
e ch a ng e
ed
p la n n i n g
Scope
Sco p
Pr de
oj liv
ec er
t-o ab
V
rie les
O
M
nt
ed
on
S
ti
op
ca
ifi r de
e
ve fi n
pe itio
S co n
Figure 5.1: Scope Management Plan

Source: http://dbmanagement.info/Books/MIX/The_ch05_of_IT_Management_Project.pdf

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These five stages are briefly explained in Table 5.1:
TABLE 5.1: SCOPE MANAGEMENT PROCESS

Stages in Scope Description
Management
Project scope Involves ensuring that resources and authority are
initiation dedicated to create a scope management plan.
Scope planning Involves defining the work needed to be done in
order to accomplish project objectives. Therefore, the
main activity performed under the scope planning
stage is the development of Work Breakdown Struc-
ture (WBS). A WBS is a framework that splits com-
plex project tasks and activities into smaller activities
and represents them in a simple and easy to under-
stand manner.
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Scope definition Involves identifying and listing product and project
deliverables which support the MOV of the project.
Scope verification Involves ensuring that the project scope is precise
and is in alignment with the overall goal of the pro-
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ject.
Scope change Involves ensuring that controls are available for
control managing modifications required to be made in the
project scope once it is set. Modifications are general-
ly made after taking the approval of the client.
A detailed explanation of all these stages in scope management is pro-

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vided in the upcoming sections of the chapter.
Depending on the need and the requirements of an IT project, project

scope is defined based on various parameters. These parameters are
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explained as follows:
Business model of the organisation: A business model refers to
a conceptual structure that supports the feasibility of an organ-
isation’s business, its purpose, goals and objectives and its busi-
ness plan for achieving them. Project scope is defined as per the
business model of the organisation under which a project is to be
executed. For example, if the project is to be executed under the
Lab on Hire business model, the scope of the client gets limited to
managing the team.
Interfaces of the project: Project scope is defined as per the num-
ber of interfaces, that is, the entities with which a project manager
is required to interact during project execution. For example, an
organisation may need to procure resources from an external ven-
dor in order to carry out a project. In such a case, project scope
must clearly state the constraints that the organisation may face
during the entire project life cycle.
Government policies: Project scope is defined after taking into
consideration the policies of various government agencies such as

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income tax authorities, sales tax authorities, etc. Sudden changes

can occur in the government policies of a country. For example, in
India, demonetisation in November 2016 affected many on-going
IT projects of organisations to a large extent. Therefore, project
scope should be defined after considering the risks that may erupt
in government policies of a country where the project is to be car-
ried out.
5.2.1 CHALLENGES IN SCOPE MANAGEMENT
Project scope management is not always easy for a project manager.

Scope creep is the major challenge faced by organisation while de-
termining project scope. It refers to sudden changes that may occur
at any point after the project initiates and deviate the project from its
original goals. According to Software Productivity Research (SPR), a
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consulting firm, requirements in an internal development project grow
each month by about 2% of the original list. But as time passes, accom-
modating requests becomes more expensive, with new requirements at
the coding or testing stages costing an order of magnitude more than
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those added during the first three months. Scope creep, if not timely
managed, can lead to complex end results. To manage scope creep, it
is important to understand the reasons of scope creep. The following
are some main reasons of scope creep:
Poor Work Breakdown Structure (WBS): This is one of the major
reasons of scope creep. Sometimes people involved in a project do
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not have a clear idea what they have to do, which may lead to extra,
unplanned resources and further increased costs and lengthened
duration of the project. For example, in a IT project, a software
developer is also able to perform database administration work. If
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his roles and responsibilities are not defined and new database ad-
ministrators are hired, this will unnecessarily result in increased
project costs. Therefore, it is necessary that a thorough WBS is
created which should clearly mention the roles and responsibili-
ties of all project stakeholders.
Lack of focus on the changing dynamics: Generally, project scope
is defined based on existing conditions of a business. However,
during the project execution process, the project environment
is subject to change, which creates a mismatch between project
scope and prevailing business conditions. As a result, it may cause
the project to be over budget and often late. Therefore, it is neces-
sary to define a contingency plan while determining project scope.
Presence of several interfaces: This is another reason of scope
creep in IT projects. IT projects necessarily need the help of sever-
al interfaces (such as the project manager, team members and the
client); thus, any delay in the execution of a task by any interface
forces the project manager to extend the boundaries of the scope.
In other words, he/she is forced to ensure that the job gets complet-
ed anyhow in order to meet project deadlines, and the only way to

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get this done is to go beyond the defined boundaries of the scope.

To resolve this issue, it is important that the roles and expectations
of all project interfaces or stakeholders are clearly defined.
1. ____________ is a methodology that involves a sequential order

of steps performed to ensure that a project’s scope is defined
and mapped accurately.
2. Project scope initiation involves ensuring that resources and
authority are dedicated to create a scope management plan.
(True/False)
3. WBS stands for
a. Work Breakdown Structure
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b. Work Break Structure
c. Work Breaking Structure
d. None of these
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Activity
Using the Internet, find out any IT project completed recently by

an IT organisation. Determine project scope for the same project.
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Now, compare the scope defined by you with the one defined by the
organisation. Prepare a report on the strengths and weaknesses of
both the scopes.
5.3 PROJECT SCOPE INITIATION

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Project scope is generally initiated when a business need arises. For

example, a customer may approach a consulting organisation to rede-
sign its website. As and when that need arises, project scope is initi-
ated to evaluate that need and find out an acceptable solution. At this
stage, a project manager is assigned to the potential IT project.
After that, a feasibility analysis is performed wherein technical, eco-

nomic and financial aspects of the project are assessed. Technical
aspects cover whether the technological expertise to carry out the
project is available. Economic aspects cover cost-benefit ratios of
different technological alternatives available and the rate of return
of the project. Financial aspects deal with all possible costs related
to the project. In this way, project scope initiation provides a green
signal for the project to proceed. In addition to feasibility analysis, a
business case is developed which provides insight into why the project
was proposed and how it aligns with the overall business strategy of the
organisation.

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4. Technical aspects cover whether the technological expertise

to carry out the project is available. (True/False)
Activity
Conduct a feasibility analysis for any IT project of your choice.
5.4 PROJECT SCOPE PLANNING

Project scope planning is an important stage of project scope man-
agement wherein tasks, deliverables and constraints associated with
the project are defined. For this, an elaborate scope statement is pre-
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pared; project boundaries are defined; and a thorough Work Break-
down Structure (WBS) is developed. Let us discuss these three main
activities of project scope planning in the next sections.
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5.4.1 SCOPE BOUNDARY
Project boundaries refer to measurable characteristics that explain

what belongs and what does not belong to a project. For example, an IT
administrator of an organisation needs to install a new software appli-
cation on computer workstations of marketing and human resources
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departments. In such a case, the boundaries of this project for install-

ing the software application extend to these two departments only. All
other departments of the organisation are out of scope. It should be
noted that project boundaries are closely linked to project objectives.
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Moreover, project boundaries provide a holistic view of project work

and the expected results. A clear boundary statement helps the proj-
ect manager and the project team to make efforts in specific project
areas within the project scope.
5.4.2 SCOPE STATEMENT
A scope statement is an essential part of scope planning as it serves as

a written confirmation for a project manager of the results a project
will deliver. Moreover, it defines constraints and assumptions under
which project team members have to work. A scope statement also
mentions terms and conditions pertaining to the project. It is import-
ant that all project stakeholders should agree upon those terms and
conditions before the actual project work begins. An ideal scope state-
ment provides the following information:
Description of product scope: It states the features of products,
services or results a project is intended to produce.
Acceptance criteria: It covers conditions that must be fulfilled be-
fore project deliverables are accepted.

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Deliverables: They state the products, services or results the proj-

ect is intended to produce in accordance with project objectives.
Projectexclusions: These are what the project is not intended to
produce.
Constraints: These are restrictions that limit what can be achieved.
Assumptions: These are statements related to how uncertain in-

formation will be addressed in the project.
5.4.3 WORK BREAKDOWN STRUCTURE (WBS)
While planning project scope, project activities are divided into

achievable and smaller tasks. These tasks are arranged in a frame-
work called Work Breakdown Structure (WBS), which is the hierar-
chical, graphical representation of large, complex projects into small-
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er tasks. The structure helps in the efficient planning and allocation
of resources. Figure 5.2 shows the example of WBS of a hypothetical
software product release project:
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Software Product
Release (0)
Project Project Integration and

Detail Design Development
Management Requirements Test
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Software
Planning Software Software Software
User
Documentation User
Meetings Client Client
Documentation
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Training
Program Training
Administration Materials Server Server Program
Materials
User User
Documentation Documentation
Training Training
Program Program
Materials Materials
Figure 5.2: A Sample Work Breakdown Structure Organized by

Phase
Source: http://www.brighthubpm.com/project-planning/6180-the-role-of-the-
wbs-in-the-project-planning-lifecycle-explained/#imgn_0
As mentioned earlier WBS represents major project deliverables into

smaller, more specific and manageable components. This also helps
in:
Facilitating an accurate calculation of actual costs of deliverables
Ensuring accurate performance measurement and control

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Extracting information on important and risky work efforts

Mapping requirements, plans and outcomes of the project
Providing clarity on ownership to managers and task leaders
5. A ______ statement also mentions terms and conditions

pertaining to the project.
Activity
Choose any IT project of your choice and prepare a scope state-

ment for it.
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5.5 PROJECT SCOPE DEFINITION
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Defining project scope is the most crucial stage of project scope man-
agement because until it is not defined what is supposed to be deliv-
ered at the end and what the boundaries of the project are, the project
cannot be executed. The scope of the project can be defined in terms
of deliverables that must be provided at the project completion. These
deliverables can be split into two parts which are project-oriented
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scope and product-oriented scope. Such division of deliverables pro-

vides clear insight into activities to be performed; thereby facilitating
the efficient allocation of resources and making accurate time and cost
forecasts. Project scope is dependent on the product scope; therefore
without a clear understanding of product scope, one cannot define the
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project scope. Let us discuss product scope and project scope in detail.
5.5.1 PRODUCT-ORIENTED SCOPE
Product scope indicates the features and functions of a product. In

other words, product scope explains how the product will look like,
how will it work, its features, etc. For instance, if a product is soft-
ware, product scope will include its features, quality and reliability,
design, licence and patents, etc. Product scope is developed by the
project manager and the project team as per the information provided
by the client in the project initiation phase. Defining a product scope
is generally not a difficult task. If a project is taken by an organisation
through a contract, product scope is mentioned in the contract docu-
ment. On the other hand, if the project is initiated by the organisation,
the product scope is to be defined by the organisation by taking into
consideration the requirements and expectations of all stakeholders
regarding the final product.
Context level Data Flow Diagram (DFD) is a commonly used tool to

define the product scope. It displays a high-level presentation of the

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system that has a single process that is represented by a circle or

rounded rectangle displaying the system as a whole and represents
all the incoming and outgoing information between the system and its
external entities. External entities are generally depicted by a square
and can be personnel, departments, or other systems that are pro-
viding or receiving flow of information. Arrows display the direction
of flow of data between external entities and the system. Each arrow
and entity must be written properly. Lower level DFDs can be created
later for modelling the processes and flows of data in more detail. An
instance of a context level DFD of a banking e-commerce system is
shown in Figure 5.3:
Account balance info
Account balance request
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Customer Product Service request r ERP system
be
n um
Cu t nfo
sto
me c o un i o ni
Ac c t
r in nsa
Product & fo Tra
service info
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0 Account info
Fund transfer request
E commerce Transaction confirmation
Fund transfer confirmation banking system
Promotion info
Usage
reports
Senior
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management
Figure 5.3: Context Level Data Flow Diagram (DFD)

Source: http://ebook.nscpolteksby.ac.id/files/Ebook/Computer%20Engineering/Information%20
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Technology%20Project%20Management%20(2011)/7.%20Chapter%205%20-%20Defining%20
and%20Managing%20Project%20Scope.pdf
Another useful tool used to define the product scope is the use case
diagram. This kind of diagram is used in the object-oriented scenarios
as part of the Unified Modeling Language (UML). The use case dia-
gram was introduced as a tool for software development, but can also
provide a high level model to define, verify and reach an agreement
related to the product scope. Creating a use case diagram is simple in
the context of using symbols and syntax; however, it is a powerful tool
for determining the main functions or characteristics of the system
and various users or external systems that communicate with the sys-
tem. In the initial phase of the project, a high level diagram is provided
by the use case diagram which can be later refined and detailed while
performing requirements analysis in the project. In the use case dia-
gram, actors are people who can be users, customers, managers, etc.
or external systems that can communicate or use the system.
While creating a use case diagram, actors can be determined using

stick figures, while use cases are displayed using ovals. Figure 5.4 dis-
plays an example of a use case diagram for a bank:

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EC Banking System
Check balance
transaction
histories
View check
images Get account
info
Order checks
Update
account balances ERP
Pay bills
system
Transfer funds
Customer Print reports
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Change address Manager
Apply for loans

IM Check interest
rates
Find product/
service info
Get balance info

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Look up ATM
locations
Figure 5.4: Use Case Diagram for a Bank

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Source: http://ebook.nscpolteksby.ac.id/files/Ebook/Computer%20Engineering/Information%20
Technology%20Project%20Management%20(2011)/7.%20Chapter%205%20-%20Defining%20
and%20Managing%20Project%20Scope.pdf
A use case diagram allows you to provide a simple and effective out-
line of the functionality and interactivity between the use cases and
the actors. In Figure 5.4, you can see, the box separates the use cases
from the actors and also creates a system boundary that is used to
define the scope boundary. Use cases defined in the boundary are con-
sidered inside the project’s scope, while anything defined outside of
the boundary is considered outside the project’s scope.
Enlisting the actors allows you to determine various stakeholders and

understand the overall requirement of the organisation. The use case
diagram is also used to identify security issues. Creating the use case
diagram refers to an iterative process that can be developed while
having a Joint Application Development (JAD) session. In the JAD
session, the users and systems analysts mutually illustrate the system
requirements or design the system. Later in project development, the

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use case diagram is used for defining the product scope in order to
refine the level of detail and functionality.
But the question arises is, what is the suitable level of detail required
to define the product scope? The right level helps the project manager
in estimating the time required to develop the application system ac-
curately. Estimating the time and effort for developing the application
system deliverable relies on the size of the application, the number of
features needs to be included and their complexity level. Proper esti-
mation depends upon the level of understanding of the information
system needs to be delivered.
The time and resources allocated to develop the project charter and
plan may reduce the amount of time and energy required to define the
information system in detail. Therefore, the aim during the planning
phase of the project should be to secure sufficient detail about the
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information system for estimating the time and effort required for ob-
taining this deliverable. During the analysis and design phases, more
time and resources can be committed for increasing understanding
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and documenting the level of detail required for creating and deliver-
ing the system.
5.5.2 PROJECT-ORIENTED SCOPE
Project scope is concerned with activities that must be performed to

create a product. For example, the procurement of raw material for
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developing software as specified by the client comes under project

scope. Project scope defines the results a project is intended to deliv-
er, associated constraints and assumptions. It also provides tangible
evidence of the progress of the project. Deliverable Definition Table
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(DDT) is a tool used to define project scope. In the table, all project
deliverables to be attained by the project team are defined. Each de-
liverable must have a clear objective. Table 5.2 shows DDT:
TABLE 5.2: DELIVERABLE DEFINITION TABLE

Deliverable Structure Standards Approval Resources
Needed By Required
Business case Document As defined in Project sponsor Business case
the project team and office
methodology automation
(OA) tools
Project charter Document As defined in Project sponsor Project man-
and project plan the project ager, Project
methodology sponsor, & OA
tools
Technology and Document As defined in Project sponsor Bank’s systems
organisational the project /project man- analysts, users,
assessment methodology ager case tool, and
OA tools

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Deliverable Structure Standards Approval Resources

Needed By Required
Requirements Document As defined in Project man- System ana-
definition the project ager lysts, users,
methodology case tool and
OA tools
User interface As defined in Project sponsor System analyst,
the user inter- programmer,
face guidelines users, and inte-
grated develop-
ment environ-
ment (IDE)
Physical & tech- Document As defined in Project sponsor System analyst,
nical design the project / project man- programmer,
methodology ager and case tool
Application Files & As defined in Project sponsor Programmers,
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system database the project System ana-
methodology lysts, network
specialists,
program devel-
IM opment tools,
and relation-
al database
management
system
Testing plan Document As defined in Project man- System analysts
the project ager and OA tools
methodology
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Testing results Document As defined in Project man- Programmers,

the project ager Files system an-
methodology alysts, and OA
tools
Change Document As defined in Project man- Systems ana-
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management the project ager lysts and OA

and implemen- methodology tools
tation plan
Training pro- As defined in Project man- Trainers,
gram the project ager/ project documentation
methodology sponsor writers, and OA
tools
Final report and Document As defined in Project sponsor Project Spon-
presentation the project sor, project
methodology manager, and
OA tools
Project eval- Document As defined in Project man- Project team,
uations and the project ager/ project knowledge
lessons learned methodology sponsor management
system
Source: Inspired by Graham McLeod and Derek Smith, Managing Information Technology
Projects (San Francisco: Boyd & Fraser, 1996), 51-52.
After defining the deliverables in the DDT, a Deliverable Structure

Chart (DSC) can be created as an interim step for defining detailed

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work packages that will be required for estimating the project sched-
ule and cost. Later on, these work packages can be utilised for creat-
ing a Work Breakdown Structure (WBS). Figure 5.5 shows a DSC:
Electronic
Commerce
banking
Evaluation
Close project
Initialize & project success
Project charter Execute & (final project
conceptualize/ (Project
& project plan control report/formal
Business case evaluation
acceptance)
lessons)
Implementation
Analysis Design (logical
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Testing (test Documentation
(strategic ED design/ Construction
plan, test (training
plan, system technical EC application
results) problem &
proposal design)
conversion plan
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Figure 5.5: Deliverable Structure Chart (DSC)
Source: http://pabipedia.wikidot.com/deliverable-structure-chart
6. The scope of the project can be defined in terms of deliverables

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that must be provided at the project completion. (True/False)

7. DFD stands for
a. Database Flow Diagram
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b. Data Flowing Diagram

c. Data Flow Diagram
d. None of these
Activity
Research about DDT of an IT project. Prepare a Deliverable Struc-

ture Chart (DSC) for the project.
5.6 IT PROJECT SCOPE VERIFICATION

After defining the project’s scope, it is necessary that it must be veri-
fied. Scope verification is all about getting a formalised acceptance on
completed project deliverables from project stakeholders. Table 5.3
shows the inputs, tools and techniques and output of the scope verifi-
cation process:

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TABLE 5.3: SCOPE VERIFICATION ESTIMATION INPUTS,

TOOLS AND TECHNIQUES AND OUTPUT
Input Tool and Technique Output
Work results: What Inspection: Reviews, Formal accept-
deliverables are fully product reviews, au- ance: Documentation
or partially completed; dits, and walk-throughs stating that the client
what costs are incurred with the help of check- has accepted the prod-
or anticipated, etc. lists (which contains uct of the project.
deliverables, quality
standards, milestones,
review and accept-
ance.)
Product documen-
tation: The project’s
products (plans, spec-
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ifications, technical
documentation, draw-
ings, etc.)
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8. Scope ________ is all about getting a formalised acceptance on

completed project deliverables from project stakeholders.
9. Formal acceptance refers to documentation stating that the
client has accepted the product of the project. (True/False)
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Activity
Research any IT project and verify its scope. Prepare a checklist for
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scope verification.
5.7 SCOPE CHANGE CONTROL

Scope change control is the final stage of project scope management.
At this stage, an organisation tries to restrict unapproved changes in
the project scope. In other words, at this stage, an organisation tries to
ensure that only those changes, which are approved by the client, are
made in the project. Any unauthorised change in the scope of a project
leads to the following situations:
Scope grope: It refers to the inability of a project team in defin-
ing project scope. This situation occurs early in the project when
the project team and sponsor face problems in understanding the
functionality of the project.
Scope creep: It describes the situation in which additional fea-
tures need to be included in a project for meeting the need of the
client. The inclusion of additional features consumes a lot of time
and resources after the approval of project’s scope. For example, a

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project sponsor may also add some changes in the later stages of
the project. Not only this, the project team members can also come
up with the novel ideas during the progress of the project. The sit-
uation of scope creep must be determined and controlled during
the project because it might affect the project schedule and thus,
increase the cost of the project.
Scope leap: It refers to a situation which suggests fundamental
and important alterations in the scope of the project. Scope leap
often leads to drastic changes in the entire scope and focus of the
project. It occurs due to changes in the environment, the business
and the competitive nature of the industry. Scope leap lays empha-
sis on modifying the overall goal of the project; therefore, requires
the re-estimation of the value of the current project. If the changes
required to be done on the project are critical, it is always bet-
ter that an organisation should close the current project and start
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with the new project.
5.7.1 SCOPE CHANGE CONTROL PROCEDURES

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A scope change procedure must be there before the commencement
of the project. It must be part of or referenced in the project charter
so that it can be conveyed to all project stakeholders. This procedure
must cover all requested modifications to be made in project scope.
The requests made for the scope change must be assessed to know the
impact on the project. Then, a decision can be made whether to accept
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or reject the change in the scope.
The first step in the scope change procedure is to fill a scope change
request form. This form can be filled by the individual or group mak-
ing the scope change request. A scope change request form contains
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some basic information, which is as follows:

Description of the change request so that the project manager and
project team should be able to understand the nature and cause
for the scope change.
Alternatives for assessing the impact on scope, schedule, resource
and cost.
These alternatives can include an extension in the deadline of the

project or addition of more resources in terms of employees, overtime
or technology. Finally, all changes required in the scope must be ap-
proved so that allocation of additional resources can be done in the
project. It must be noted that the scope change request must be ap-
proved only if the scope change can bring the project closer to achieve
its overall goal.
5.7.2 BENEFITS OF SCOPE CHANGE CONTROL
Generally, a project manager has to be attentive and careful while

managing project scope. If the project’s scope alters in the middle of

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the project, it can lead to additional costs, greater risks and longer
time duration. Many projects get failed because of poor scope man-
agement. It is often seen that small scope changes in large numbers
lead to the failure of the project. An ideal project manager is one who
knows that rigorous scope control is essential for delivering projects
within the allocated time and budget.
The main focus for the project manager should not only to provide the
agreed scope within time and budget but also to optimise the benefit
that is provided by the project. If there are benefits from the project,
then allowing the scope to change is a good move. It is not necessary
that all scope changes must be resisted rather it should be ensured
that the impact of change must be fully reflected in the project scope.
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10. Scope ________ refers to the inability of a project team in
defining project scope.
11. Scope grope describes the situation in which additional
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features need to be included in a project for meeting the need
of the client. (True/False)
Activity
Assume that you are appointed as the project manager of a soft-

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ware development project. What steps will you take to manage the
situations of scope grope, scope creep and scope leap?
TRACKING AND MONITORING SCOPE

5.8
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DURING PROJECT EXECUTION

Execution is the crucial stage of project management as in this stage
work defined in the project management plan is put into practice to
meet project objectives. It involves coordinating with people, allocat-
ing resources, addressing stakeholder expectations and performing
project activities in alignment with the project management plan.
However, during the execution phase, there is high possibility of
changes in scope in terms of alterations in expected activity duration,
resource productivity and availability and unanticipated risks. These
variances can have a major impact on the project management plan.
Therefore, it is of utmost importance for a project manager to con-
stantly track and monitor any changes in the scope during the project
execution phase. Changes in scope during the execution phase can be
tracked and monitored by:
adopting a well-defined and documented process based approach
wherein the scope is defined for project activity.
reviewing the status of the project at defined intervals and taking
corrective actions if required.

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using the checklist that serves as a guide to the project manager

in ensuring that the scope of the project and several of its compo-
nents are managed properly without the instances of scope creep.
conducting an external audit of the project. Since external audit is
done by the client or any external agency, any scope creep is glar-
ingly pointed out by the auditors.
12. During the _________ phase, there is high possibility of changes

in scope in terms of alterations in expected activity duration,
resource productivity and availability and unanticipated risks.
13. Changes in scope during the execution phase can be tracked
and monitored by adopting a well-defined and documented
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process based approach wherein the scope is defined for
project activity. (True/False)
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Activity
Suppose you are an external consultant hired by an IT firm for con-

ducting an audit of one of its one-going projects. Choose any IT
project of your choice. How will you help the firm in managing and
tracking project scope?
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5.9 DEVELOPING THE PROJECT SCHEDULE

A project schedule is a type of plan that lists the milestones, activi-
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ties and deliverables of a project with their possible start and finish
dates. A project schedule plays an important role in the successful
accomplishment of project goals by ensuring that all the activities of
the project are finished within the given time frame. While preparing
a project schedule, an organisation needs to assess the effort required,
identify staffing needs, define resource requirements, calculate work
duration, sequence different project activities and split these activities
into smaller tasks, decide on the methods to perform these tasks and
allocate these tasks to different people. The following are the inputs
required for preparing a project schedule:
Activity duration: Each project activity has a specific start and
finish date based on which activities are scheduled.
Calendars: These enable the planning of working days, shifts and
resources.
Project scope: A detailed project scope helps to determine the
start and end dates, and major assumptions and constraints asso-
ciated with the project. At times, stakeholder expectations are also
included for determining project milestones.

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Potential risks: Enumeration of various risks of the project helps

a project manager to prepare a better schedule by setting a time
margin for each activity in case a risk occurs.
Resource requirements: Information about availability and con-
straints related to resources including manpower helps to sched-
ule the project in an effective and efficient way.
Developing the project schedule is a systematic process that involves

a number of steps, as shown in Figure 5.6:
Examining a Allocating
Estimating
Determining relationship each task to a
the required
the tasks between specific staff
effort
tasks member
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Rechecking
Examining Reserving a Examining the
for the over-
other time project’s
allocation
variables schedule critical path
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Incorporating
Establishing a schedule
baseline information in
a Gantt Chart
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Figure 5.6: Steps in Developing a Project Schedule
After determining the project schedule, a bottom-up technique is used

for defining the target deadline by adding the total time and cost of
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each activity. However, the project sponsor or client is required to re-

view or accept the project schedule and budget that may need some
iterations in the project schedule before finalising the relationship be-
tween scope, schedule and budget by all the project stakeholders. The
project plan becomes the baseline once it is approved by all project
stakeholders.
Work Breakdown Structure (WBS) is considered to be the most im-

portant component of the project schedule as it determines tasks and
activities that must be accomplished for providing project scope deliv-
erables. Time duration is defined for each project activity depending
on the feature of the activity, allocated resources, necessary support
required for the activity, etc. On the other hand, a project network
examines the dependencies and sequences of activities for developing
project schedule; it is also responsible for monitoring and controlling
the activities of the project.
An effective project schedule can be prepared only if an organisation

employs effective tools and techniques. Let us discuss some of the
commonly used tools and techniques of developing a project schedule
in the next sections.

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5.9.1 GANTT CHARTS
A Gantt chart is one of the most commonly used project management

tool which was developed by Henry L. Gantt during World War I. The
main functionality of this chart is that it helps to compare planned
activities of the project with the actual progress of the project. Figure
5.7 shows a basic Gantt chart used for scheduling:
Tasks
A
S
E
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
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Figure 5.7: Gantt Chart
Figure 5.7 shows a Gantt chart containing five tasks represented by

letters A, B, C, D, and E respectively. The estimates for these tasks are
represented through bars across horizontal time axis and milestone
events are represented through diamonds. The progress of a project
can also be monitored or tracked with the help of a Gantt chart, as
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Tasks
N
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Status
day
Figure 5.8: Displaying Project’s Progress through a Gantt Chart
A Gantt chart is simple to use and helps in determining the prog-

ress of the project. For example, from Figure 5.8, it can be analysed
that tasks A and B have been completed and Task C is behind the
schedule. However, a Gantt chart has certain limitations too. One of
the major limitations of a Gantt chart is its inability of visualising re-
lationship between tasks or activities. This limitation can be seen in
Figure 5.8 where it cannot be identified that what should be the impact

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of task C being behind schedule on other tasks including task D and E.

Also, it cannot be identified how Task C impacts the actual deadline of
the project. However, these limitations have been minimised in Gantt
charts used in modern project management software.
5.9.2 PROJECT NETWORK DIAGRAM
A project network diagram contains is used to plan and monitor the

progress of the project. This diagram is not only limited to the repre-
sentation of workflow activities but also provides information related
to the logical sequence and dependencies between the activities. In
this way, a project network diagram helps in determining the comple-
tion date of activities or project deadline. Apart from this, the diagram
also helps a project manager in anticipating delays in the completion
of specific activities, thereby ensuring that such delays do not affect
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the project deadline.
5.9.3 ACTIVITY ON THE NODE (AON)

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Activity on the Node (AON) is a graphical tool that represents a logical
sequence and interdependencies between different project activities
where boxes (nodes) indicate activities while arrows show precedence
and flow. While creating an AON diagram, a project manager first
needs to examine the activities and tasks defined in the WBS. There-
after, he/she should allocate estimated time to each activity or task. In
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addition, the project manager should determine the nature of each

activity whether the activity is predecessor, successor or parallel.
Activities that must be completed before starting another activity are

known as predecessor activities. An example of a predecessor activity
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is installing computer’s operating system before installing an applica-

tion. On the other hand, activities that must follow a specific activity
are called successor activities. Activities that run simultaneously with
another activity is called a parallel activity. Table 5.4 summarises the
activity analysis for AON:
TABLE 5.4: ACTIVITY ANALYSIS FOR AON

Activity Description Estimated Time Predecessor
Duration (In Days)
A Estimate current 2 None
technology platform
B Describe user 5 A
requirements
C Design Web page layouts 4 B
D Set up server 3 B
E Evaluate Web traffic 1 B

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Activity Description Estimated Time Predecessor

Duration (In Days)
F Test Web pages and links 4 C, D
G Move Web pages to 3 D, E
production environment
H Write announcement of 2 F,G
intranet
I Train users 5 G
J Write report to 1 H, I
management
An AON project network diagram can be created after defining rela-

tionships and time estimates for each activity in the WBS, as shown
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in Figure 5.9:
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C F
A B D J
M
G U
E
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Figure 5.9: Activity on the Node (AON) Network Diagram
In an AON, work process takes place from left to right which means
that the predecessor activity needs to be completed first before start-
ing another activity.
5.9.4 CRITICAL PATH ANALYSIS
Critical path analysis involves viewing all project activities and arriv-
ing at the critical path to be taken so as to complete the project within
a minimum amount of time. In this method, the earliest and latest
start and finish dates for all project activities are calculated, and de-
pendencies between these activities are estimated to arrive at the pro-
posed schedule of critical activities. The project completion time and
the project schedule are determined by the time estimates defined for
each activity. This can be done by examining the possible paths and
total duration for each path, which can be identified from Table 5.5:

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TABLE 5.5: POSSIBLE ACTIVITY PATHS

Possible Paths Path Total
Path 1 A+B+C+F+H+J 18
2+5+4+4+2+1
Path 2 A+B+D+F+H+J 17
2+5+3+4+2+1
Path 3 A+B+D+G+H+J 16
2+5+3+3+2+1
Path 4 A+B+D+G+I+J 19*
2+5+3+3+5+1
Path 5 A+B+E+G+I+J 17
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2+5+1+3+5+1
In the above table * indicates the critical path.

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From the above table, it can be analysed that the longest path is Path
4 that contains 19 days for completion. Two estimations can from the
above table, which are as follows:
The project deadline is 19 days.
Path 4 is the critical path and signifies the shortest time for the
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completion of the project.
It is a major problem for the project manager to identify the critical

path as the project schedule is badly affected with any change in the
time duration set for the activities on the critical path. For example, in
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the above table, it can be seen that the activity E is not on the critical
path and therefore delaying in that activity will not affect the project
schedule as it will be completed before affecting the project schedule.
Similarly, with any delay in activities A, B, D, G, I, and J that are on
critical path, the total duration of the project will be increased by the
same amount.
Therefore, it is clear that the decision of a project manager is varied

on the basis of the critical path. For example, resources can be allocat-
ed for an activity on the critical path for reducing the time duration.
Also, some resources can be diverted from one activity to another by
the project manager for reducing the project schedule; however, it
may expand the project’s budget. The project schedule can also be
shortened with the help of parallel activities as they reduce the critical
path. This process of using the parallel activities is called fast tracking
the project. The responsibility of a project manager is not only limited
to the identification of critical path, however, he/she is also responsi-
ble for monitoring and managing the critical path.

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5.9.5 PROGRAM EVALUATION AND REVIEW

TECHNIQUE (PERT)
In the late 1950s, the PERT method was first introduced for super-
vising the Polaris submarine project. During the development of the
PERT method, another method called the Critical Path Method (CPM)
was also developed. A combination of these two methods is commonly
known as PERT/CPM. A project network diagram is used in the PERT
method for representing scheduled activities visually. The represen-
tation shows a logical sequence and interrelationships of the sched-
uled activities. A statistical distribution approach is also used in the
PERT method. This approach allows the project manager to evaluate
the deadline of the project and its associated activities. The evaluation
of the deadline is based on the following three estimates for each ac-
tivity:
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Optimistic: Specifies the minimum time duration in which an ac-
tivity or task is completed. This estimate is also known as a best-
case estimate as the time estimation is accurate or there is a little
variance in time.
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Most likely: Specifies the expected time in which an activity or
task can be completed. There may be variance in time of complet-
ing an activity or task in the estimated time.
Pessimistic: Specifies the maximum time for the completion of an
activity or task. It is also called worst-case estimate as there is no
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surety of completion of the activity in the estimated time duration.
The PERT estimate of each activity can be computed with the help of
the following equation:
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optimistic time + ( 4 × Most likely time ) + Pessimistic time

activity estimate =
6
After calculating the expected time of each activity, the total expected
time to complete the project can be calculated with the help of the
following equation:
n
total expected time of Project = ∑ activity estimates
i =1
Table 5.6 shows the estimates of different activities made by a project

manager and his/her team:
TABLE 5.6: ACTIVITY ANALYSIS FOR PERT

Activity Predecessor Optimistic Most likely Pessimistic Expected
estimates estimates estimates duration
(In Days) (In Days) (In Days)
a b c
A None 1 2 4 2.2

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Activity Predecessor Optimistic Most likely Pessimistic Expected

estimates estimates estimates duration
(In Days) (In Days) (In Days)
a b c
B A 3 5 8 5.2
C B 2 4 5 3.8
D B 2 3 6 3.3
E B 1 1 1 1.0
F C, D 2 4 6 4.0
G D, E 2 3 4 3.0
H F, G 1 2 5 2.3
I G 4 5 9 5.5
J H, I .5 1 3 1.3
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After analysing estimates of different activities, possible activity paths
can be analysed as shown in Table 5.7:
TABLE 5.7: POSSIBLE PERT ACTIVITY PATHS

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Path 1 A+B+C+F+H+J 18.8
2.2 + 5.2 + 3.8 + 4.0 + 2.3 + 1.3
Path 2 A+B+D+F+H+J 18.3
2.2 + 5.2 + 3.3 + 4.0 + 2.3 + 1.3
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Path 3 A+B+D+G+H+J 17.3

2.2 + 5.2 + 3.3 + 3.0 + 2.3 + 1.3
Path 4 A+B+D+G+I+J 20.5*
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2.2 + 5.2 + 3.3 + 3.0 + 5.5 + 1.3

Path 5 A+B+E+G+I+J 18.2
2.2 + 5.2 + 1.0 + 3.0 + 5.5 + 1.3
From Table 5.7, it can be analysed that Path 4 is still the critical path
as in AON. It can also be seen that the expected completion time of the
project has been increased from 19 days (in AON) to 20.5 days. How-
ever, it can also be analysed that the most likely estimates are used in
the AON method while two other estimates including optimistic and
pessimistic in addition to most likely estimates, are used in the PERT
method. This approach is basically used for making simulations that
help in conducting a sensitivity analysis for schedule planning and
risk analysis. However, the usefulness of simulations depends on the
quality of the estimates.
5.9.6 PRECEDENCE DIAGRAMMING METHOD (PDM)
Precedence Diagramming Method (PDM) refers to a planning and

scheduling tool similar to AON that helps in defining relationships

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among project activities. This technique defines four fundamental re-

lationships, as shown in Figure 5.10:
Finish-to-start Task A
Task B
Task A
Start-to-Start
Task B
Task A
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Finish-to-Finish
Task B
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Start-to-Finish Task A
Task B
Figure 5.10: PDM Relationships
A description of relationships shown in Figure 5.10 is as follows:

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Finish-to-Start (FS): It is a relationship between activities in a

logical sequence, which means an activity B cannot be started be-
fore the completion of activity A. This relationship is similar to the
successor and predecessor relationships of the AON method.
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Start-to-Start (SS): It is a relationship between activities that oc-

cur simultaneously. This type of relationship can be called a par-
allel activity, however, two tasks or activities must start simultane-
ously but can finish at different durations. Due to its functionality
of being parallel activity, this type of relationship helps in reducing
the project schedule.
Finish-to-Finish (FF): It is a relationship where two activities or
tasks start at different times, but complete simultaneously. There-
fore, the next set of activities start only after the completion of first
set of FF activities. Also, if there are no more activities, the project
is said to be complete.
Start-to-Finish (SF): It is a relationship that is opposite in work-
ing to the FS relationship and states that task B should be started
before the completion of task A.
PDM allows the project manager to identify lead and lag times for
several activities where lead time acknowledges the overlapping of
activities.

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5.9.7 CRITICAL CHAIN PROJECT MANAGEMENT (CCPM)
Critical Chain Project Management (CCPM) refers to an important

project management technique that is based on the idea of expanding
time estimates for the project completion to compensate any uncer-
tainty caused during the project. There are three reasons of expand-
ing time estimates, as follows:
The work is dependent on other’s work. For example, an addition
in time estimates may be required when the chances of delaying
the work is high.
Project planning made in the past was inaccurate.
The project sponsor cuts the proposed schedule.
It should be noted that adding safety time estimates may fail. The
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CCPM approach is based on a different theory. It implies the addition
of safety in the form of buffers including feeding buffers, resource buf-
fers and buffer at the end of the project instead of adding them direct-
ly to each task. A comparison of traditional project network schedule
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and CCPM schedule is shown in Figure 5.11:
Project Schedule with Safety in Each Task
A B C E
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10 days 10 days 10 days 10 days
D
10 days
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Critical Chain Project Schedule
A B C E 10
5 days 5 days 5 days 5 days
D
Buffers
5 days
Figure 5.11: Critical Chain Project Management Schedule
From Figure 5.11, it can be analysed that safety time estimate has
been added to each task in the upper part of the figure. It can also be
analysed that the project schedule is 40 days for the critical path being
Tasks A, B, C, and E. On the other hand, in CCPM, the team holding
the task’s responsibility is asked to provide an estimate of 50% chanc-
es of its completion. Suppose 50% chance of completion of each task

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is 5 days. A buffer to the end of the project that is half of the total time
saved during individual tasks can be added. Here, it is 10 days for the
critical path tasks A, B, C and E. As task D is on feeder, a feeder buffer
is required that is half of the 50% chance of the completion of the task,
i.e. 2.5 days. CCPM assimilates project buffer as each task has 50%
chances of being completed on the scheduled time and signifies that
half of the tasks will be delayed. Also, it is better to look for the project
buffer instead of adding buffer to each task separately.
14. A ___________ is a type of plan that lists the milestones,

activities and deliverables of a project with their possible start
and finish dates.
15. Which of the following input is/are required for preparing a
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project schedule?
a. Activity duration b. Project scope
c. Potential risks d. All of these
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Activity
Make a comparison list of all tools and techniques used for devel-
oping the project schedule. Also, analyse the best tool used for an
organisation.
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PROJECT MANAGEMENT SOFTWARE

5.10
TOOLS
Nowadays, organisations use various software tools for planning,
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scheduling and allocating resources of the project. Also, these tools

are used by a project manager for managing costs, budget and quality
as well as for controlling and tracking. There are a number of soft-
ware tools available in the market; however, one of the most commonly
used project management software tool is Microsoft Project. The Gantt
Chart view of the Microsoft Project application is shown in Figure 5.12:
Figure 5.12: Microsoft Project Gantt Chart View

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From Figure 5.12, it can be analysed that the Gantt chart view incor-
porates the project network diagram and PDM tools in addition to the
Gantt chart where a finish-to-start relationship is shown for Tasks A
and B, while a start-to-start relationship for Tasks B and C. Similarly,
Figure 5.12 also shows a finish-to-finish relationship for Tasks D and
E. A milestone is represented by the task Project Complete having
zero days. The critical path of a project is represented by the Network
Diagram View, as shown in Figure 5.13:
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Figure 5.13: Microsoft Project Network Diagram
IM View and Critical Path
Planning and scheduling can be done easily with the help of a calen-
dar. The project’s Calendar View is shown in Figure 5.14:
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Figure 5.14: Microsoft Project Calendar View
The main element of the planning process is developing the project

schedule and budget for which a number of activities should be de-
scribed and evaluated. Also, it is important to analyse that the project
plans change frequently as it is hard to predict future happenings.
However, to cope with project planning effectively, you need to use a
technique known as rolling wave planning. A summary plan can be

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prepared by the project manager instead of developing a large project

plan.

16. Project management software tools help in planning,
scheduling and allocating resources of the project. (True/
False)
Activity
Find any project management software tools available in the mar-

ket. Explore advantages and disadvantages of those software tools.
5.11 METHODS OF BUDGETING
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As Thomas J. Stanley and William D. Danko mentioned in their book
The Millionaire Next Door, budgeting is one thing that sets the wealthy
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apart from the rest of us - 55% of millionaires keep a budget. Before dis-
cussing the methods of the budgeting process, let us first understand
what budget is. A budget refers to a detailed estimate of all costs re-
quired to complete project tasks. It provides the project sponsor with
insight into the cost/benefit for the project.
The budgeting process differs depending on the nature of the indus-

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try, size of the business, etc. For example, a private sector organisation
has the objective to maximise profit that can be achieved by increasing
the sales of the products and reducing the costs. On the other hand, a
public sector organisation has a qualitative objective i.e. welfare of the
people in terms of providing low cost products or services to people.
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There are two types of budgeting techniques widely used by organisa-

tions. These are:
Incremental technique
Zero-based technique
Let us discuss these techniques in detail.
5.11.1 INCREMENTAL BUDGETING
Incremental budgeting refers to a budgeting method in which budget

is made by first taking the base of current period’s budget or actual
performance and then adding the incremental amount for the new
period. In this budgeting technique, inflation and planned increments
in sales prices and costs are considered as the adjustments in the in-
cremental amounts.
According to the Chartered Institute for Public Finance and Account-

ing (CIPFA), the budget process is considered to be a negotiation and

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compromise process that is the key feature of the incremental bud-

geting method. Therefore, it can be said that incremental budgeting
depends on the distinct view of decision making. According to CIP-
FA, a stable form of government is required for using the incremental
approach. The process of budgeting using the incremental approach
involves certain steps, which are shown in Figure 5.15:
Building the base that defines required

expenditure and making adjustment
Replicating planned savings by adding to the

implications of the development budget
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Producing the new budget
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Figure 5.15: Process of Incremental Budgeting
There are several advantages of the incremental budgeting approach.

This approach is easy to use and cheap and allows minimal changes.
Moreover, it helps representatives to look only for key areas of chang-
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es or improvement. It is useful where it is hard to describe outputs.
Other than many advantages of the incremental budgeting approach,

some disadvantages of this approach are as follow:
Itdepends on the previous budget instead of operational require-
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ments and objectives of the future.

It does not provide the overview of overall performance.
It cannot be used for recognising budgetary ‘slack’.
It urges systemic unwillingness.
It is reactive instead of proactive.
It is based on the assumption that the previous budget is satisfac-
tory.
5.11.2 ZERO-BASED BUDGETING
Zero-based budgeting refers to a budgeting technique where the pro-

cess starts from base zero. There is no requirement of budget or actu-
al performance of the previous period. Therefore, it can be said that
budget headings are started with a zero balance. Zero-based budget-
ing attempts to provide the best resource allocation to those sections
of the organisation that need them more. This can be done by asking

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managers to validate each activity in their departments. During this

process, their departmental budget remains zero. Also, the resources
to those departments are not allocated, which are unable to justify
their departmental budget. Similarly, all the departments who are un-
able to justify their expenditures are ceased.
According to CIPFA, zero-based budgeting in its purest form involves

the preparation of operating budgets on the assumption that the organi-
sation is starting out afresh in the new planning period – it as is the life
of the organisation exists as a series of fixed-term contracts.
Some of the advantages of zero-based budgeting are:

It allows enquiring of the natural position.
It deals closely with the objectives and output of the budget.
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Operational managers are actively involved in the budget.
It provides a better allocation of resources.
Some disadvantages of zero-based budgeting are:

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It consumes more time than incremental budgeting.
It requires specialised skills/training.
It is difficult to identify proper performance measures.
Managers get demotivated with a minimum level of specification
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of service provision.
Itleads to threats to organisations when inherited positions are
questioned.
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17. In the incremental budgeting method, the budget is made

by first taking the base of current period’s budget or actual
performance and then adding the incremental amounts for
the new period. (True/False)
Activity
Prepare a budget for a project using both incremental budgeting

and zero-based budgeting methods. Analyse both the budgets and
discuss their benefits over one another.
5.12 DEVELOPING THE PROJECT BUDGET

For developing the project budget, individual project cost estimates for
work packages are aggregated to produce total project cost estimates.
Aggregation of all costs results in the cost baseline. If management

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reserves (is an amount of the contract budget kept aside for manage-
ment control purposes instead of designated for the accomplishment
of one or more tasks) are added to the cost baseline, it becomes the
cost budget. Thus, cost estimation is the primary step in developing a
project budget.
5.12.1 COST ESTIMATION
The process of cost estimation of a specific activity or task with an es-

timated duration contains five steps, as shown in Figure 5.16:
Describing the Defining the Determining the

required required number cost of using each
resources of resources resource
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Confirming the leveling of Estimating the
resources such that overal cost of each task
location is avoided or activity
Figure 5.16: Process of Cost Estimation

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For example, in an organisation, one team member is selected for a

particular task that will complete it in one day. It is also considered
that there is no need of other resource. This specific resource will be
assigned a cost. The cost of this specific resource will include his/her
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earnings per days before taxes and deductions and the equal values
of the benefits (health care, life insurance, and so forth) borne by the
organisation for the selected resource. You should note that the ben-
efits vary from one organisation to another. It can be assumed that
a cost accounting analysis is followed by the accounting department
and true cost has been analysed as ` 300 per hour including wages and
benefits. Therefore, the cost of completing the specified task can be
calculated by the following formula:
Cost of task = Estimated duration × True cost of the resource
= 8 hours × ` 300/hour
= ` 2400
However, the process of calculating costs can be made simple by

using the project management software tool. You can use the Microsoft
Project tool for assigning resources to specific tasks, as shown in
Figure 5.17:

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Figure 5.17: Using Microsoft Project to Assign Resources to Tasks
The Microsoft Project tool can also be used for identifying the total
budget of the project that can be received by summing individual
costs for each task or activity.
5.12.2 OTHER COSTS
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Earlier, only direct costs which are cost of the labour as the resource
are determined. However, there are many other costs that are to be
considered while developing a project budget. These costs are costs
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incurred on purchasing materials and supplies and maintaining re-

serves. Other costs to the project include the following:
Administrative and operational costs: These include costs relat-
ed to rent, utilities, insurance etc. The consultation charges for the
resource also come under these costs.
Sunk costs: The costs that have been observed before the start
of the project are called sunk costs. For example, the work on the
same application was made earlier by three resources, but they
failed to meet the objectives. The cost made on these attempts be-
fore the actual start of the project is also considered for the project
budget.
Learning curve: It signifies the time and effort wasted when a new
technology needs to be learnt and mistakes are made by the inex-
perienced employees. The project budget should consider the time
wasted in learning the new technology.
Reserves: They signify some cushion in case of any unexpected
condition. The reserves provide flexibility to the project manager
in case any unexpected condition occurred during the project.

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5.12.3 RESOURCE ALLOCATION
After allocating resources to the project, it becomes the responsibility

of a project manager to review the project plan. It is required for con-
firming the level of resources. For a better project budget, it should be
considered that the resources are not over allocated which means that
more than one task cannot be allocated to more than one resource at
the same time. The resource level should be reviewed after making
the project schedule and allocating resources. If the project manager
is unable to identify and resolve this mistake, it can lead to unplanned
costs and put demoralising effect on the team. These over allocated
resources can be identified by using a project management tool, called
Microsoft Project. An example of the resource over allocation view is
S
IM
M
N
Figure 5.18: Example of Resource Over-allocation
A project manager can also use some management tools for levelling
the resources automatically.
18. Sunk costs signify the time and effort wasted when mistakes
are made by the inexperienced person. (True/False)
Activity
Search for tools used for estimating the cost of a project.

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5.13 IMPROVING COST ESTIMATES

The estimation of final cost or actual cost of the project is a difficult
task. There is always some uncertainty in the prediction of the cost of
each element of the project. The final cost can only be estimated after
the completion of the project as some additional costs are appeared
with risk events. The estimation of these additional costs is a difficult
task. However, some tips help the project manager in improving cost
estimates. These tips are:
Identifying risks at the appropriate time: The risks associated
with the project should be identified and addressed on time. This
is because if the risks are not identified, it may lead to over bud-
get later on. The project manager should use risk management
approaches at all levels of the project so that risks can be resolved
S
at the time when they arise. It helps in making estimates more
accurately.
Applying realistic approaches: A project manager should not
IM
commit tasks that are impossible to achieve in the specified time
interval. The costs of all the events during the project should be
estimated properly. Being realistic helps the project manager to
estimate more accurate cost and project budget.
Planning accurately: One of the major elements of estimation of
project cost and budget is accurate planning. The certainty of bud-
M
get cost being over budget or under budget depends on the plan-
ning of the project manager. A good plan gives good results and
more accurate cost estimates. The project manager should make
a proper plan with variable change for the cost estimation of the
project.
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Making more cost estimates: The project cost estimates can be

improved by generating a number of cost estimates for each activ-
ity and task. It helps in identifying loopholes and advancement in
estimates, thereby, allowing project managers to choose appropri-
ate cost estimates. Doing so helps the project manager to make a
proper cost estimate.
Checking contingency plans: Contingency plans help the project
manager in improving the cost estimates as he/she has the predict-
ed plans to achieve the target in a cost-effective manner. It helps
the project manager to switch from one plan to another if the plan
has loopholes in the middle.
19. The cost estimates can be made accurate without any fault by
identifying risks at the appropriate time. (True/False)

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Activity
Search the Internet and look for the tips and guidelines that can be
followed for improving cost estimates.
FINALISING THE PROJECT SCHEDULE

5.14
AND BUDGET
The final approval of the project schedule and budget by the sponsor,
the project manager, and the project team is made after several iter-
ations in the project. It is the responsibility of the project manager
to analyse all the assumptions related to duration and cost estimates
and document these assumptions. For example, an organisation may
need to hire a person for the post of Database Administrator (DBA)
S
in the future. The project manager should document the estimated
salary of that person. For the basic estimation of costing of the DBA,
the project manager can take help of salary advertisements or salary
surveys. Therefore, the source of the cost should be documented by
IM
the project manager for defining more credibility to cost estimates. It
should be noted that things can be more organised by documenting
assumptions.
The project plan becomes the base plan and is used as a benchmark
for tracking the exact progress of the project after the project plan
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and project schedule are agreed upon. After the acceptance, the plan
is authorised to be executed by the project manager and project team.
The project plan must be updated with the completion of tasks and
activities so that the progress of the project can be communicated in
relation to the baseline plan. A project manager is required to keep
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the plan updated and realistic with the approval of changes made in
the project’s estimates.
20. The final approval of the project schedule and budget is made
by the project manager only. (True/False)
Activity
Meet a project manager working in an IT organisation and ask him

about the activities followed during project budget estimation and
how to finalise the project budget.
5.15 SUMMARY
In the context of project management, the term ‘scope’ is used for
defining work boundaries and deliverables of a project. Project
scope, a part of project planning, involves deciding and listing spe-

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cific project goals, deliverables, features, functions, tasks, dead-

lines and costs.
The success or failure of a project highly depends on whether the
scope of the project is defined clearly in alignment with time, re-
sources and budget throughout the span of the project.
Scope management process involves five stages, which are project
scope initiation, scope planning, scope definition, scope verifica-
tion and scope change control.
Project scope is generally initiated when a business need arises.
Project scope planning is an important stage of project scope man-
agement wherein tasks, deliverables and constraints associated
with the project are defined.
Defining project scope is the most crucial stage of project scope
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management because until it is not defined what is supposed to be
delivered at the end and what the boundaries of the project are,
the project cannot be executed.
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After defining the project’s scope, it is necessary that it must be
verified. Scope verification is all about getting a formalised accep-
tance on completed project deliverables from project stakeholders.
Scope change control is the final stage of project scope manage-
ment. At this stage, an organisation tries to restrict unapproved
changes in the project scope.
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A project schedule is a type of plan that lists the milestones, ac-

tivities and deliverables of a project with their possible start and
finish dates. A project schedule plays an important role in the suc-
cessful accomplishment of project goals by ensuring that all the
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activities of the project are finished within the given time frame.
Nowadays, organisations use various software tools for planning,
scheduling and allocating resources of the project. Also, these
tools are used by a project manager for managing costs, budget
and quality as well as for controlling and tracking.
There are two types of budgeting techniques widely used by or-
ganisations, which are incremental technique and zero-based
technique.
For developing the project budget, individual project cost esti-
mates for work packages are aggregated to produce total project
cost estimates.
The final approval of the project schedule and budget by the spon-
sor, the project manager, and the project team is made after sev-
eral iterations in the project. It is the responsibility of the project
manager to analyse all the assumptions related to duration and
cost estimates and document these assumptions.

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key words
MOV (Management of Value): It is a concept of evaluating the

project value and managing it in a very efficient manner.
Scope: It is the boundaries or limits defined for executing tasks
or activities of the project under execution.
Software: It is a set of instructions and associated documenta-
tion that instructs a computer what to do or how to perform a
task.
Sunk costs: It is a cost that has already been incurred and can-
not be recovered.
Time duration: It is the duration between the start of the activ-
ity and the end of the activity in a project.
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1. What is meant by scope management in IT projects?
2. Why the scope management is difficult in IT projects?
3. What do you understand by project-oriented scope of IT projects?
4. Explain the need of scope change control in IT projects.
5. What is the functionality of the Precedence Diagramming Method
M
(PDM)? Describe the relationships defined by this technique.

6. What are the steps for developing a project schedule?
7. Describe the steps in cost estimation.
N
8. Write a short note on incremental budgeting. Discuss its

advantages and disadvantages.

Scope Management in IT Projects 1. Project scope
management
2. True
3. a. Work Breakdown
Structure
Project Scope Initiation 4. True
Project Scope Planning 5. scope
Project Scope Definition 6. True
7. c. Data Flow Diagram

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IT Project Scope Verification 8. verification
9. True
Scope Change Control 10. grope
11. False
Tracking and Monitoring Scope dur- 12. execution
ing Project Execution
13. True
Developing the Project Schedule 14. project schedule
15. d. All of these
Project Management Software Tools 16. True
Methods of Budgeting 17. True
Developing the Project Budget 18. False
S
Improving Cost Estimates 19. False
Finalising the Project Schedule and 20. False
Budget
IM
1. The term scope is used for defining work boundaries and
deliverables of the project. Refer to Section 5.2 Scope
Management in IT Projects.
M
2. Scope management is difficult due to the fact that dynamics

of IT projects keep on changing. Refer to Section 5.2 Scope
Management in IT Projects.
3. Project-oriented deliverables support project management and
N
IT development processes. Refer to Section 5.5 Project Scope

Definition.
4. Scope change control is concerned with handling alterations
in project requirement and ensuring that any modifications
to the scope of the project must be beneficial. Refer to Section
5.7 Scope Change Control.
5. Precedence Diagramming Method (PDM) refers to a planning
and scheduling tool that helps in defining relationships among
project activities. This technique defines four fundamental
relationships including Finish-to-Start (FS), Start-to-Start (SS),
Finish-to-Finish (FF), and Start-to-Finish (SF). Refer to Section
5.9 Developing the Project Schedule.
6. A project schedule determines associated costs of a project,
the estimated time for completing project tasks, their start
and finish dates, allocated staff resources and the sequence of
tasks to be followed for completing the project. Refer to Section
5.9 Developing the Project Schedule.

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7. The process of cost estimation of a specific activity or task with

an estimated duration contains five steps. Refer to Section
5.9 Developing the Project Budget.
8. Incremental budgeting refers to a budgeting method in which
the budget is made by first taking the base of current period’s
budget or actual performance and then adding the incremental
amounts for the new period. Refer to Section 5.11 Methods of
Budgeting.
SUGGESTED READINGS
Goldratt, E. M. 1997. Critical Chain. Great Barrington, MA: The
S
North River Press.
Haugan, G. T. 2002. Project Planning and Scheduling. Vienna, VA:
Management Concepts.
IM
Kinsella, S. M. 2002. Activity-Based Costing: Does It Warrant In-
clusion in A Guide to the Project Management Body of Knowledge
(PMBOK Guide)? Project Management Journal 33(2): 49–55.
Project Management Institute (PMI) 2008. A Guide to the Project
Management Body of Knowledge (PMBOK® Guide). Newtown
Square, PA: PMI Publishing.
M
E-REFERENCES
Decarboni.se,. (2015). 2.1. Define the risk assessment scope &
risk criteria | Decarboni.se. Retrieved 25 July 2015, from http://
N
decarboni.se/publications/guideline-risk-management-exist-
ing-wells-co2-geological-storage-sites/21-define-risk
Projectsmart.co.uk,. (2015). Scope Management. Retrieved 25 July
2015, from http://www.projectsmart.co.uk/scope-management.php
Tenrox.com,. (2015). Scope Management | Tenrox | Professional
Services Automation. Retrieved 25 July 2015, from http://www.ten-
rox.com/glossary/Scope-Management.htm

C h a
6 p t e r
RISK MANAGEMENT IN IT PROJECTS
CONTENTS
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6.1 Introduction
6.2 IT Project Risk Management Planning Process
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Activity
6.3 Identifying IT Project Risks
Activity
6.4 Risk Analysis and Assessment
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Activity
6.5 Risk Management Strategies
Activity
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6.6 Risk Monitoring and Control

6.6.1 Risk Response and Evaluation
Activity
6.7 Summary

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NSE’s IT RISK MANAGEMENT STRATEGY
National Stock Exchange (NSE) of India is the leading stock

exchange in India, headquartered in Mumbai. Globally, NSE
has around 1,200 members and is ranked among the top five in
the single stock futures and stock index futures. It is purely an
IT-dependent firm and being treated as the most sensitive organ-
isation due to the criticality of its processes in nature.
Therefore, it required the best risk management strategy for deal-

ing with its day-to-day operations. In addition to business risk
management, the organisation had to assess risks in operations
dependent on IT. Some of the objectives of IT risk management
for the organisation are to:
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define the risk management outline on the basis of the avail-
able business and IT standards.
implement the structure evenly throughout the organisation.
IM
conduct risk identification workshops so as to check the exist-
ing and new risks in the processes.
develop risk responses for the identified risks.
build the risk register to have a control on the risks.
establish communication between team members for commu-
M
nicating the risks’ information.

compare risks with governance processes.
The organisation made a comparative research on the exist-

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ing standards and frameworks to develop a new strategy so as

to achieve these objectives and meet all IT risk management re-
quirements of the organisation. After examining all, the organisa-
tion decided for the risk management framework. The NSE’s risk
management framework consists of three parameters named risk
governance, risk evaluation and risk response so as to achieve all
the required objectives of the organisation. This was done at two
levels:
1. Developing the risk register for dealing with risks. Business
processes were segmented as core production processes,
production and support functions. The core production
processes are the most critical ones, whereas the support
functions are the trivial. The steps involved are evaluating
risks for workshops, generating risk profiles, obtaining
response options, controlling risks, finalising the risk
register, etc.

RISK MANAGEMENT IN IT PROJECTS 147
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2. Defining the aggregation process for dealing with

organisational-level risks. It involved a number of steps,
such as collecting department-wise data and building the
matrix for them, measuring the criticality for each of the
departments, reviewing risk profiles, etc.
The strategy helped the organisation in creating a consistent

structure for its operations and determining information technol-
ogy risks in the organisation. This consistent structure created a
positive impact on stakeholders, thereby encouraging them to in-
volve themselves in the processes. In addition to the above strate-
gy, the organisation also applied an Excel-based tool for updating
risk profiles automatically. The tool helped in tracking and con-
trolling risks by classifying risks into three categories – inherent
risk, current risk and residual risk. Here inherent risks represent
S
the total risk of the process, current risks refer to the risk at the
present time after applying solutions on the existing ones and re-
sidual risks represent the phase after applying responses and con-
IM
trols on the inherent risks.
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learning objectives

>> Discuss risk management planning process for IT projects
>> Identify risks in IT projects
>> Analyse and assess risks in IT projects
>> List various risk management strategies
>> Explain risk monitoring and control
6.1 INTRODUCTION
In the previous chapter, we discussed the planning of scope, budget
S
and schedule for IT projects. Now, in this chapter, you will study the
management of risks arising while executing the project.
A risk can be defined as a variability of return from an investment.

IM
Every project is prone to some kind of risk or the other as certain as-
sumptions are made before initiating any project. One cannot avoid
assumptions in a project as every project is unique in all respects and
no project can be identical to the one executed in the past. These as-
sumptions are related to project cash flows, life of machinery, salvage
value of machinery, etc. However, these assumptions can prove wrong
at some point in a project life cycle, which can lead to a risk. Such risk
M
cannot be handled through quick-fixes, rather a systematic approach

is required to mitigate that risk.
Project risk management is a proactive approach to identify, assess

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and respond to the possible future events that may adversely affect a
project. It is an on-going process of ensuring that high-priority risks
are aggressively managed and making available the information re-
quired to make informed decisions on issues critical to project suc-
cess. It is the duty of a project manager to keep constant tab on risks
that may occur at any point and keep them to the minimum by adopt-
ing appropriate tools and techniques.
In this chapter, you will study about the concept of project risk man-
agement and its five processes, namely plan risk management, identi-
fy risks, risk assessment, plan risk responses and control risks.
IT PROJECT RISK MANAGEMENT

6.2
PLANNING PROCESS
A risk can be defined as a probability or threat of damage, injury, lia-
bility, loss or any other negative occurrence that is caused by internal
or external vulnerabilities and may be avoided through a pre-emptive
action. A risk can occur anytime in the life of an IT project. If not man-

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aged properly, it may lead to failure of the entire project. Thus, risk
management is a crucial part of project management irrespective of
how large or small a project is. It involves the application of various
methods and procedures for analysing, identifying and responding to
the risks that may occur at any point during the entire life cycle of an
IT project.
A project manager and the project team members should always keep
a constant tab on risks occurring in the project. However, there is no
pre-defined process for risk management as it depends on the type of
project and its nature. Table 6.1 lists five main processes of risk man-
agement as given by PMBOK:
TABLE 6.1: PROCESSES INVOLVED IN RISK MANAGEMENT

S. Process Description Input Techniques Output
No.
S
1. Plan risk Defining how � Project management � Analytical Risk manage-
manage- to conduct risk plan techniques ment plan
ment management � Project charter � Expert judge-
activities in ment
� Stakeholder register
a project and
IM � Meetings
an approach � Enterprise environmen-
to be adopted tal factors
against the
� Organisational process
risks encoun-
assets
tered.
2. Identify Determining � Risk management plan � Documentation Risk register
risks and categoris- � Cost management plan reviews
ing risks that � Information-
� Schedule management
gathering
M
may affect the plan

project and techniques
� Quality management
recording their � Checklist anal-
plan ysis
characteristics.
� Human resourceman- � Assumptions
agement plan analysis
� Scope baseline � Diagramming
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� Activity cost estimates techniques

� SWOT analysis
� Activity duration esti-
mates � Expert judge-
ment
� Stakeholder register
� Project documents
� Procurement docu-
ments
� Enterprise environmen-
tal factors
� Organisational process
assets
3. Analyse risks
Qualita- Prioritising � Risk management plan � Risk probabil- Project docu-
tive risk risks on the � Scope baseline ity and impact ment updates
analysis basis of their � Risk register assessment
occurrence � Enterprise environmen- � Probability and
and the ratio of tal factors impact matrix
its impact on � Organisational process � Risk data quali-
the project assets ty assessment
� Risk categori-
sation
� Risk urgency
assessment
� Expert judge-
ment

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S. Process Description Input Techniques Output

No.
Quantita- Estimating � Risk management plan � Data-gathering Project docu-
tive risk the impact of � Cost management plan and representa- ment updates
analysis risks on the tion techniques
� Schedule management
project’s goals plan � Quantitative
numerically risk analysis
� Risk register
and modelling
� Enterprise environmen- techniques
tal factors
� Expert judge-
� Organisational process ment
assets
4. Plan risk Taking � Risk management plan � Strategies for � Risk man-
responses measures to � Risk register negative risks agement
reduce and or threats plan
lessen risks � Strategies for � Project
and achieve positive risks or document
the project’s opportunities updates
objectives � Contingent
response strat-
egies
S
� Expert judge-
ment
5. Control Monitoring � Project management � Risk reassess- � Work per-

IM risks of older risks plan ment formance
and identifying � Risk register � Risk audits information
any new risks � Work performance data � Variance and � Change
in the project trend analysis requests
� Work performance
tenure. reports � Technical � Project man-
performance agement
measurement plan updates
� Reserve analy- � Project
sis document
updates
M
� Meetings
� Organisa-
tional pro-
cess assets
updates
All these risk management processes are performed in collaboration

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with all the members associated with the project, such as project team,
stakeholders, management, testers, experts, etc.
1. _____________ involves the application of various methods

and procedures for analysing, identifying and responding to
the risks that may occur at any point during the entire life
cycle of an IT project.
2. Which of the following is not an input of risk management
plan?
a. Schedule management plan
b. Organisational process assets
c. Project scope baseline
d. Risk management plan

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Activity
Select any IT project of your choice. How will you plan risk man-
agement using expert judgement?
6.3 IDENTIFYING IT PROJECT RISKS

Risks can be of two types—high threat or low threat. Likewise, some
risks require a detailed mitigation plan while some risks do not in-
volve any major planning. Whatever the case may be, risks must be
identified as early as possible so as to have a lesser impact on the proj-
ect. Identification of risks forms the basis for the risk management
process. It is an on going process as new risks may be developed at
any stage of a project. Therefore, it should have a clear path to find out
new risks from time to time. Figure 6.1 shows the mind map of the risk
S
identification process:
Schedule overruns Budget exceeded

Tasks omitted from Cost
IM Unanticipated expenditure
Schedule
Time
Time Team is under-resourced
Opportunity to compress
Schedule Materials shortage
Poor communications Resources Machinery unavailable
(Stakeholder dissatisfaction) Industrial action
Identify
Communications Skills gap
Positive & timely Risks
communication (positive Bad weather
M
publicit results in re-work

Scope creep
Weather delays progress
Scope poorly
Scope Environmental Adverse environmental
define
effects occur
Project changes Environmental approvals
poorly managed not complied with
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Figure 6.1: Mind Map of Identification of Risks

Source: www.continuingprofessionaldevelopment.org
In an IT project, there are five major risks categories, which are:

1. Schedule risks: Every project has a defined schedule. However,
due to number of reasons, such as wrong estimation at the initial
stage or unavailability of resources, etc., the schedule may get
impacted, which, in turn, can lead to unnecessary delay in project
completion or increase in project costs.
2. Budget risks: Budget risks occur due to the wrong estimation
of project budget, overrunning of the cost and the unexpected
expansion of the project.
3. Operational risks: These risks occur due to various events, like
failure of any process, lack of resources, issues in implementing
processes, lack of communication among team members,
mismatch between the project plan and project execution, etc.
4. Technical risks: Technical risks occur due to the failure of any
functionality of the project. It also occurs due to the complexity

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in achieving the target, complex project modules, or any other

issues in the technical aspect of the project.
5. Programmatic risks: Programmatic risks are the unexpected
ones which cannot be determined in advance. The causes for
these risks are external factors, like shortage of funds planned,
present market scenario not matching the product, any rule
amendment by the government or any new expectation received
from the client. These risks are taken care of at that time only
when they arise.
Risks in an IT project can come up at any stage, in any shape or of
any size. Therefore, risk identification starts from the project initia-
tion stage and continues throughout the entire life cycle of the proj-
ect. However, it is the responsibility of a project manager to decide
whether the risks can be avoided as per the situation or they should
be treated seriously. New strategies are developed from time to time to
S
manage these risks, resulting in the new plan for the project in terms
of budget, schedule, resource, etc. However, the measures to deal with
the risks are already planned in the initial stages of the project.
IM
As shown in Table 6.1, let us now study some of the major inputs of the
risk identification process or the factors that help in identifying risks.
Risk management plan: It is one of the key inputs of the risk iden-
tification process. It describes the methods of risk identification,
the requirements for risk analysis and the overall management of
the risk management framework.
M
Activity cost and activity duration estimates: These estimates

help in understanding the project schedule and budget, which are
considered to be one of the risk areas of a project. Thus, activity
cost and activity duration estimates should be examined carefully
to determine latent risks that lie within them.
N
Stakeholder register: A stakeholder is an individual/group/organ-

isation who has a bearing on the outcome of a project either direct-
ly or indirectly. A stakeholder register includes information about
all stakeholders involved in the risk identification process.
Organisational process assets: These assets include guidelines,
policies or procedures of risk management, historical information
or databases and experience of previous similar projects. All these
assets help in determining risks that may come up during a project.
Some important tools and techniques used in the risk identification
process are:
Documentation review: It involves examining various baseline
documents that provide an idea of the ideal project execution path.
This helps in ensuring the validity of assumptions and checking
the constraints as they may alter the baseline estimates.
Information-collection techniques: These include techniques,
such as brainstorming, Delphi technique, interviewing and root
cause analysis.

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Brainstorming: It is a method of collecting ideas and viewpoints

from different stakeholders of a project. The brainstorming ap-
proach needs not to be confined to the project team alone; it can
be extended to the external subject matter experts, customers and
other stakeholders too. They may also have a view on the proj-
ect status or execution that can be vital in the risk identification
process. The idea behind this exercise should be to get as many
suggestions and opinions as possible and then apply appropriate
filters to check what is useful in risk identification.
Delphi technique: It is a method of holding anonymous interviews
with experts about foreseeable risks. The results of the interviews
are collated and studied by an independent team. The purpose
of keeping interviews anonymous is to avoid confirmation bias
or being influenced by other experts. Thus, experts share their
thoughts solely based on their risk assessment. There can be mul-
tiple rounds of anonymous discussions until a consensus or some
S
trend on project risks emerges. Experts provide their views on dif-
ferent aspects of a project, such as cost, budget, etc. Based on the
discussion, the project is executed or stopped.
IM
Checklist analysis: It is one of the simplest techniques to comply
with standard processes and check any deviation causing risks. It
is more useful in projects involving some standard operations. For
example, assembly lines work in a manufacturing or construction
project. Not following checklists may lead to adverse situations
and put the project at a significant risk.
M
Diagramming techniques: There are many diagramming tech-

niques that help in the identification of risks. Some of them are
explained as follows:
Ishikawa diagram: This is also called the cause-effect diagram or
fishbone diagram. It lists the top causes of a particular defect. The
N
root cause provides insight into potential risks. Figure 6.2 shows
an example of an Ishikawa diagram:
Cause Category 1 Cause Category 2
MATERIALS EQUIPMENT
Vendors Maker
Effect
Cause Age
Delivery
Maintenance PRODUCTION
DOWNTIME
Training Steps PROBLEM
Cause
Experience Sequence
WORKERS PROCESS
Cause Category 3 Cause Category 4
Figure 6.2: Example of an Ishikawa Diagram

Source: http://maaw.info/images/Figure8-6.gif

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Flowchart: System or process flowcharts provide visual depiction

of the overall process and the relation between various compo-
nents. Such visual representation helps in identifying the system
or process gaps or points out failures quickly. Figure 6.3 shows an
example of a flowchart:
Project Information
Initiation Team Development

Process
Organisation
Commitment
Scope Definition
S
Planning Activity Definition
Process
IM
Schedule Cost Resource
Development Estimation Planning
Information Distribution
Update Project
M
Control
Process Performance Report
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Are there
Yes Changes?
No
Project
Complete? No
Yes
Closure
Process Project Close-out
Administrative Close-out
Project Completion
Figure 6.3: Example of a Flowchart

Source: http://www.wisely.com.sg/wpmc/images/Project%20Management%20Process%20
Flow%20Diagram.jpg
Influence diagram: An influence diagram depicts the deci-

sion-making flow. It identifies all elements, decisions and objec-
tives of a project and determines how various factors influence

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each other. Potential risks in the decision-making process can be

identified from these diagrams. Figure 6.4 shows an example of an
influence diagram:
Project
Funding
Market
Economy
Health
Education Jobs
Figure 6.4: Example of an Influence Diagram
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Source: http://3.bp.blogspot.com/-6UEqdbzHw4I/T_cdvpyHbXI/AAAAAAAACy0/gK-
wkufq-O9g/s1600/09-influence%2Bdiagram.JPG
Figure 6.4 shows that the funding of projects is dependent on various

IM
factors, such as market health, economy, education and jobs. In addi-
tion, all these factors influence each other.
The final output of this process is the risk register. The risk register re-
cords the results of risk analysis and response planning. This register
also records the outcomes of other risk management processes. There
are two major components of the risk register which includes the list
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of all identified risks and the list of potential responses.

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3. Ishikawa diagram depicts the decision-making flow. It

identifies all elements, decisions and objectives of a project
and determines how various factors influence each other.
(True/False)
4. Which of the following risks occurs due to the failure of any
functionality of the project?
a. Schedule risks b. Budget risks
c. Technical risks d. Operational risks
5. ____________ is a method of holding anonymous interviews
with experts about the foreseeable risks.
Activity
You are the project head of a particular project. You need to identi-
fy the risk associated with the project and convey those risks to its
stakeholders. Which tools and techniques will you use to identify
risks and why?

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6.4 RISK ANALYSIS AND ASSESSMENT

Under the risk assessment process, the probability of occurrence for
each risk and its impact (if a risk is realised) is analysed. At times, risk
assessment is also called ‘risk analysis’ or ‘risk evaluation’. Risk as-
sessment or risk analysis is done based on the list of risks obtained as
the output of the risk identification process. It should be performed as
early as possible so that the necessary time and resources can be allo-
cated for mitigating risks and more serious risks can be given prefer-
ential treatment. While performing risk assessment, a method called
the Probability and Impact Matrix (PIM) is used to rank and prioritise
risks. You will study about PIM in detail in the later part of this section.
Risk assessment is also a continuous function because as the project

progresses, new risks may arise and the characteristics of the existing
S
risks may change. The risk assessment process attempts to address
What is the scope of risk assessment?
IM
What adverse/favourable events can happen?
How likely are these adverse events?
How severe can be the consequences?
As mentioned in Table 6.1, there are basically two types of project risk
assessment, namely qualitative and quantitative risk assessment. Let
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us discuss these two methods in detail.
QUALITATIVE RISK ASSESSMENT

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According to the PMBOK, qualitative risk analysis is the process of

prioritising risks for further analysis or action by assessing and com-
bining their probability of occurrence and impact. Qualitative risk
assessment helps project managers to focus on high-exposure or
high-priority risks, thus reducing the level of uncertainty associated
with the project.
Some important tools and techniques of qualitative risk assessment

are described as follows:
Risk probability and impact assessment: This method assesses
the probability of occurrence of each risk in a project. In addition,
the impact of each risk on various project objectives and on the
project cost, scope, quality is also assessed. Based on probability
and impact assessment, risks are ranked.
Probability and impact matrix: The priority of risks is decided
based on the PIM, which presents various combinations of prob-
abilities and impact of risks. This helps in rating risks into high,
moderate and low categories. Table 6.2 shows a sample PIM:

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Table 6.2: A SAMPLE PIM

PROBABILITY AND IMPACT MATRIX
Probability
Very high 0.5 0.5 0.10 0.15 0.20 0.25
High 0.4 0.4 0.8 0.12 0.16 0.20
Medium 0.3 0.3 0.6 0.9 0.12 0.15
Low 0.2 0.2 0.4 0.6 0.8 0.10
Very low 0.1 0.1 0.2 0.3 0.4 0.5
10% 20% 30% 40% 50%
Impact Very low Low Medium High Very high
Risk data quality assessment: This involves an analysis of the
degree to which the risk is understood. In other words, accuracy,
quality, reliability and integrity of the risk data is examined in or-
S
der to determine if the risk data would be useful for risk manage-
ment or not.
Note that qualitative risk analysis prioritises risks based on their
IM
probability of occurrence and the impact they can cause along
with certain other factors, such as organisation’s risk tolerance,
project cost, schedule, scope and quality constraints.
Qualitative risk analysis is a convenient, cost-effective and quick
way to prioritise risks for developing risk responses. Qualitative
risk analysis is a continuous process and is carried out throughout
M
the project life cycle. Risk register updates are the output of this
process.
QUANTITATIVE RISK ASSESSMENT

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According to the PMBOK, quantitative risk analysis is the process of

numerically analysing the effect of identified risks on overall project
objectives. Quantitative risk assessment produces numerical data that
can be used for decision-making.
Quantitative risk analysis is conducted after the risks have been pri-
oritised during qualitative risk analysis. It helps in finding out the im-
pact of risks on project objectives. Usually, qualitative risk analysis is
followed by quantitative risk analysis. However, the absence of suffi-
cient data from qualitative analysis may render it impossible to con-
duct a quantitative analysis.
Some of the important tools and techniques used in quantitative risk

management are as follows:
Data gathering and representation techniques: These include
techniques, such as interviews and probability distribution. Inter-
viewing experienced professionals along with an analysis of his-
torical data helps in generating database, which can quantify the
impact and probability of risks on project objectives.

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Modelling techniques: These include techniques, such as sen-

sitivity analysis, modelling and simulation and decision tree and
EMV analysis.
Table 6.3 lists differences between quantitative and qualitative risk

analysis:
TABLE 6.3: DISTINCTION BETWEEN QUANTITATIVE AND

QUALITATIVE RISK ANALYSIS
Quantitative Risks Analysis Qualitative Risk Analysis
It is a fast approach. It takes time as it involves analys-
ing every aspect of the project.
It does not provide in-depth research It provides real-time information
and review for risks. on risks.
It focusses only on the low-level It focusses only on the high-level
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risks. risks.

IM
6. While performing ________________, a method called the
Probability and Impact Matrix (PIM) is used to rank and
prioritise risks.
7. Risk assessment is also a continuous function because as the
project progresses, new risks may arise and the characteristics
of the existing risks may change. (True or False)
M
Activity
N
Construct a probability and impact matrix for any IT project of

your choice.
6.5 RISK MANAGEMENT STRATEGIES

Once project risks are identified, a risk management strategy should
be developed. Figure 6.5 shows different risk management strategies
used for IT projects:
Transference
Risk
Acceptance Management Avoidance
Strategies
Reduction/
Mitigation
Figure 6.5: Different Risk Management Strategies

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These strategies are often referred to as TARA (Transference, Avoid-

ance, Reduction and Acceptance). Let us study each of them in detail:
Transference: In this approach, an organisation transfers its ex-
posure to risk by sharing the risk with a third party which is hired
on a paid basis by the organisation. The risk is transferred to the
third party wholly or in part. A common example of risk transfer-
ence is insurance.
Avoidance: This approach eliminates a risk by avoiding it com-
pletely. However, risks are inevitable in a project and can be avoid-
ed altogether only by withdrawing from the project completely.
Reduction/mitigation: Reduction/mitigation is all about limiting
the exposure of the risk, reducing its undesirable effects on the
project.
S
Acceptance: This is the last measure taken when no other tech-
nique can be applied to reduce risks. If the reduction or avoidance
of the risks fails, then the risks are accepted. It can be either pas-
sive or active. Passive acceptance documents risks for the team
IM
members to deal with them. On the other hand, in active accep-
tance, a possibility document is designed to recover money, re-
sources and time lost due to the risks encountered. In other words,
the approach is described as “if one cannot eliminate the risk, then
accept it and face the associated challenges”.
However, it is not always easy for an organisation to select an appro-

M
priate risk management strategy. A risk map provides a framework

for determining a suitable risk strategy. Figure 6.6 shows a risk map:
N
IMPACT/CONSEQUENCE
LOW HIGH
HIGH
PROBABILITY/
Reduce Avoid
LIKELIHOOD
LOW
Accept Transfer
Figure 6.6: Risk Map for Determining a Risk Management Strategy

Source: www.kfknowledgebank.kaplan.co.uk
8. TARA stands for Transference, ________________, Reduction

and Acceptance.
9. Which risk strategy can either be passive or active?

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Activity
Suppose you are appointed as the project manager of an IT project.

What risk strategy will you use to manage project risks?
6.6 RISK MONITORING AND CONTROL

Risk monitoring and control refer to the process of keeping track of
identified risks and mitigation measures against the risk management
plan. The process involves monitoring the identified risks, ensuring
the execution of risk responses as per the plan, evaluating the risk
management plan for mitigating risks, identifying new risks having
impact on the deliverables, monitoring and controlling the risk trig-
gers, etc. It is a continuous process that must be followed on a daily
basis. If any new risks or similar symptoms are determined, it should
S
be reported immediately to the project manager so that evaluation
can be done immediately without losing any parameter. A risk trigger
is a term used for the events which cause a risk to occur. Figure 6.7
IM
shows the process of risk monitoring and controlling in a closed loop
feedback system:
Objectives Planning Communicate Action Monitor

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Feedback and
revision
Close
Figure 6.7: Risk Monitoring and Control

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Source: www.gpmfirst.com
As shown in Table 6.1, let us discuss some inputs for monitoring and
control of risks:
Risk register: It lists the details of all identified risks, their causes,
responses, symptoms and warnings.
Project management plan: It includes the risk management plan,
team members’ information, resources required for monitoring
the risks, etc.
Work performance report: It has a record of work performance
status.
Tools for monitoring and controlling risks:

Risk assessment: It involves checking for the past identified risks
and new risks, and generating risk responses.
Risk audits: Effectiveness of risk responses applied should be doc-
umented. These documents are needed in scheduled meetings to
discuss the project’s progress.

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Variance and trend analysis: Performance of the project in terms

of the risks incurred, responses taken in lieu of that, progress of
the project, etc. should be monitored. This analysis helps in pre-
dicting the output of the project in the future.
Technical performance measurement: Technical aspects of the
project should be measured by testing the achievement of the proj-
ect till that time. It determines the technical success of the project.
Reserve analysis: Reserves of the risk should be analysed for tak-
ing decision on its adequacy in the complete project tenure.
Status meetings: Regular team meetings should be conducted for
all the issues and achievements of the project.
Outputs for monitoring and controlling of risks are:

Work performance information: It includes a record of risks oc-
S
curring in the project throughout the term and whether a response
is needed for the same or they can be ignored. It also includes
schedule progress, deliverables status, costing, requirement of re-
IM
sources, etc.
Organisational process assets updates: They involve templates
for risk planning, risk breakdown structure and lessons learnt
from the previous issues and errors.
Change requests: They involve modifications in the project plan
as per the need, such as adding the extra budget, extending the
M
schedule, including of more resources, etc. for dealing with the

emergency purposes.
Figure 6.8 shows the control risks flow diagram to understand the
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working process of the risk-monitoring and controlling phase:
Project Risk Management

Develop Project Project
• Project Documents
Management Plan Identify
• Project documents
Risks
management updates
plan • Risk Develop Project
register Management Plan
Monitor and Control • Project
Project Work • Work management
Control Perform Integrated
performance plan updates
Risks Change Control
data
• Change
• Work requests Monitor and
Direct and Manage
performance Control Project Work
Project Work • Work performance
reports
Information
Enterprise/
• Organisational
Organisation
assets updates
Figure 6.8: Control Risks Data Flow Diagram

Source: www.safaribooksonline.com

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6.6.1 RISK RESPONSE AND EVALUATION
Risk response planning is the final step in the risk management pro-
cess. In this process, risk responses are developed. The risk response
can be drawn on the basis of three categories of risks, viz. controllable
known risks, uncontrollable known risks and unknown risks. While
risk responses can be developed for known risks, no response can be
developed for unknown risks. Now let us study how a risk response is
created for controllable and uncontrollable known risks.
CONTROLLABLE KNOWN RISKS
Risk response for controllable known risks involves risk prevention.

Risk prevention can be achieved in two ways, which are:
Risk avoidance: As the name suggests, the risk avoidance ap-
S
proach is all about eliminating risks and not taking them at all.
The simplest way of avoiding a risky project is not to take that
project.
IM
Risk mitigation: It involves taking measures for reducing the
probability of occurrence of a risk and its impact on the overall
project. It is not meant to eliminate the risk altogether, but to re-
duce the risk exposure. Providing safety training and safety gear
to construction workers on a site is for mitigating the risk of injury
or accident. It does not eliminate the risk, but it certainly reduces
the probability or impact of risk. Similarly, some risks are not mit-
M
igated within a project, but are transferred to others.
UNCONTROLLABLE KNOWN RISKS

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Risk response for uncontrollable known risks involves reactive re-

sponse after a risk event has occurred. It may be done through contin-
gency planning, where a contingency budget is set aside to take care
of the risk event. For example, assume that 2% of the inventory will
get damaged, destroyed or stolen and will have to be purchased again.
However, the budget for the additional 2% inventory can be set aside
as a contingency budget if, in case, the inventory damage exceeds the
quantity already factored in. The other possibility, with reference to
dealing with effects, is that you may simply “accept” the risk if it oc-
curs and do not respond. It can be for two extreme reasons:
If the loss in case of a risk event is too trivial, you may not want to
respond to such a risk since planning the response for it might be
costlier.
If the loss in case of a risk event is massive and beyond control, the
only option is to “accept” the risk.
Tools and techniques employed for risk response planning are the
same as studied before. Several risk response strategies are being de-
veloped in the planning process and the one best suited for the risk is

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applied at that time to deal with risks. The risk response actions are
based on 4Ts, viz., Terminate, Treat, Tolerate and Transfer as shown
in Figure 6.9:
• Risk termination is done by changing the project plan

to terminate the impact of risk on the project. If the
Terminate
termination of the risk is not possible, it may be avoided
by taking the pre-emptive actions.
• Treatment involves reducing the probability of risks by

taking actions in advance at an early stage. It may require
Treat
extra resources, extra time schedule and modification in
the plan to minimise risks.
• Tolerance does not ask any changes in the project plan.

Tolerate Risks are borne as no strategies can be applied on that.
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• A third party is hired to deal with the risk and, therefore,
IM
Transfer the project risks are transferred to them.
Figure 6.9: Risk Response Actions
Action plans are needed in every risk management plan and should
M
be applied on all the identified risks starting with the crucial ones,
i.e. those having the highest impact on the project. These plans must
match up with the budget of the project or should be effective enough
to make a change in the budget. Action plans include the following
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information:
Description for all planned activities
Ownership of activities, i.e. the concerned person/team responsi-
ble for performing those activities
All conditions related to risks must be followed
Requirements of actions such as cost requirement and resources
needed to complete the procedure
Start date for actions and tentative time to complete the procedure
Any secondary risks developing from action plans

Any comments or information for the team performing these plans

10. ___________ includes the risk management plan, team
members’ information, resources required for monitoring the
risks, etc.

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11. Risk mitigation involves taking measures for reducing the

probability of occurrence of a risk and its impact on the overall
project. (True/False)
Activity
Select a software development project of your choice. Make a list of

controllable and uncontrollable risks that may occur during the life
cycle of a project. Develop response actions for these risks.
6.7 SUMMARY
A risk can be defined as a probability or threat of damage, injury,
S
liability, loss or any other negative occurrence that is caused by
internal or external vulnerabilities and may be avoided through a
pre-emptive action.
IM
A risk can occur anytime in the life of an IT project. If not managed
properly, it may lead to failure of the entire project.
Risk management is the application of various methods and pro-
cedures for analysing, identifying and responding to the risks that
may occur at any point during the entire life cycle of an IT project.
PMBOK has given five processes of risk management, namely plan
M
risk management, identify risks, analyse risks, plan risk responses

and control risks.
Risk management planning involves defining how to conduct risk
management activities in a project and an approach to be adopted
N
against the risks encountered.

Risk identification involves determining and categorising risks
that may affect the project, and recording their characteristics.
Risk analysis can be of two types, namely qualitative risk analysis
and quantitative risk analysis.
Qualitative risk analysis includes prioritising risks on the basis of
their occurrence and the ratio of their impact on the project.
Quantitative risk analysis involves estimating the impact of risks
on the project’s goals numerically.
Risk response planning involves taking measures to reduce and
lessen risks and achieve the project’s objectives.
Risk controlling involves monitoring older risks and identifying
any new risks in the project tenure.

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key words
Brainstorming: It is a creative technique of generating numer-

ous ideas in a short period of time.
Budget risk: It occurs due to the wrong estimation of project
budget, overrunning of the cost and the unexpected expansion
of the project.
Programmatic risks: These are unexpected risks that cannot
be determined in advance.
Projectscope baseline: It includes project scope document,
WBS, WBS dictionary, etc.
Root cause analysis: It is a technique of identifying risks by
finding the main cause of the risks.
S
IM
1. What do you understand by the term ‘risk’?
2. Write a short note on ‘stakeholder register’.
3. Explain qualitative risk assessment with its tools and techniques.
4. Discuss TARA.
5. Briefly discuss risk response planning.
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ANSWERS for SELF ASSESSMENT QUESTIONS

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IT Project Risk Management 1. Risk Management
Planning Process
2. d. Risk management plan
Identifying IT Project Risk 3. False
4. c. Technical risks
5. Delphi technique
Risk Analysis and Assessment 6. Risk assessment
7. True
Risk Strategies 8. Avoidance
9. Acceptance
Risk Monitoring and Control 10. Project management plan
11. True

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1. A risk can be defined as a probability or threat of damage, injury,
liability, loss or any other negative occurrence. Refer to Section
6.2 IT Project Risk Management Planning Process.
2. A stakeholder register includes information about all stake-
holders involved in the risk identification process. Refer to
Section 6.3 Identifying IT Project Risks.
3. According to the PMBOK, qualitative risk analysis is the process
of prioritising risks for further analysis or action by assessing
and combining their probability of occurrence and impact. Refer
to Section 6.4 Risk Analysis and Assessment.
4. Risks management strategies are often referred to as TARA
(Transference, Avoidance, Reduction and Acceptance). Refer to
S
Section 6.5 Risk Management Strategies.
5. Risk response planning is the final step in the risk management
process, wherein risk responses are developed. Refer to Section
IM 6.6 Risk Monitoring and Control.
SUGGESTED READINGS
Vasudevan K. (2013). IT Project Management – Explained. India:
M
Partridge India.
Schwalbe K. (2016). Information Technology Project Management
(Eighth Ed.). USA: Cengage Learning.
Horine G M. (2017). Project Management Absolute Beginner’s
N
Guide (Fourth end). USA: Pearson Education.
E-REFERENCES
Bookboon.com (2009). Project Management. Retrieved 16 April
2017, from http://home.hit.no/~hansha/documents/theses/project-
management.pdf
WorkSmart (2012). Fundamentals of Project Management. Re-
trieved 18 April 2017, from https://www.nesacenter.org/uploaded/
conferences/SEC/2014/handouts/Rick_Detwiler/15_Detwiler_Re-
sources.pdf
Chandler Arizona. Project Management Methodology Guidelines.
Retrieved 18 April 2017, from https://www.chandleraz.gov/Con-
tent/PM000PMMethodologyGDE.pdf

C h a
7 p t e r
Allocating Resources to A Project
CONTENTS
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7.1 Introduction
7.2 Expediting a Project
7.2.1 Using Excel to Crash a Project
IM
7.2.2 Fast Tracking a Project
Activity
7.3 Critical Path Method
Activity
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7.4 Resource Loading

Activity
7.5 Resource Levelling
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7.5.1 Resource Loading/Levelling and Uncertainty

Activity
7.6 Allocating Scarce Resources to IT Projects and Several Projects
7.6.1 Some Comments about Constrained Resources
7.6.2 Some Priority Rules
7.6.3 Allocating Scarce Resources to Several Projects
7.6.4 Criteria of Priority Rules
Activity
7.7 Goldratt’s Critical Chain
7.7.1 Estimating Task Time
7.7.2 Common Chain of Events
7.7.3 The Critical Chain
Activity

CONTENTS
7.8 Objectives of Communication Management

Activity
7.9 Communication Matrix and Channel
Activity
7.10 Plan-Monitor-Control Cycle (PMC Cycle)
7.10.1 Designing a Project Control System
7.10.2 Project Control through Metrics
7.10.3 Project Communication Plan
Activity
S
7.11 Reporting
7.11.1 Data Collection for Reporting
7.11.2 Information Distribution
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7.11.3 Reporting Performance and Progress
Activity
7.12 Summary
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N

Allocating Resources to A Project 169
n o t e s
FEMSA CSC’S ON TIME PROJECT COMPLETION USING

HPE PPM
FEMSA CSC is the worldwide Shared Services Centre of FEM-

SA. It is the world’s biggest beverage company in Mexico and
Latin America dealing in different types of beverages. The com-
pany also owns OXXO, which is a store chain in Latin America
and a stakeholder in Heineken Beer Company. CSC is into the
development of consultancy projects for FEMSA business units
with the services around 40 FEMSA projects every year. As it has
many projects of different domains, their size and complexities
were running together in parallel, which made the management
of project a tough job. This resulted in the complications and the
resources were also not being utilised completely and efficient-
ly. The company was not able to communicate the project status
S
to the team members. The result was the incompletion of some
projects and some after the deadlines. Therefore, the company
adopted Project and Portfolio Management (PPM) from Hewlett
IM
Packard Enterprise (HPE).
The system (HPE PPM) is composed of a number of task specific

modules, which enabled CSC in improving its project manage-
ment activities. The services of HPE PPM are:
PortfolioManagement, for project proposal and business case
M
evaluation
Financial Management, for weighing forecasted costs against
actual costs
Project Management, for end-to-end project administration
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Resource Management, for allocating and tracking resources

Time Management, to determine the actual cost of projects
related to resources
The system transformed the company in terms of working and

managing projects. After that the company noticed a big improve-
ment in its services, day to day activities and estimated the annual
savings of around 11.3 million Mexican pesos. Also, the company
can now forecast the project cost accurately, allocate resources
efficiently to the activities of different projects. This led to the re-
duction of project cost by 12 percent.

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learning objectives

>> State the importance of expediting a project
>> Discuss the critical path method
>> Define resource loading
>> Explain the concept of resource levelling
>> Discuss the allocation of resources to IT projects
>> Explain the Goldratt’s critical Chain
>> List the objectives of communication management
>> Describe the communication matrix and channel
>> Discuss the PMC cycle
S
>> Explain the reporting of projects
7.1 Introduction
IM
The previous chapter discussed about different risk strategies to be
adopted for managing, monitoring and controlling the risks in the IT
projects.
Once the plan has been set for the project scope, budget, schedule
M
and risks, the allocation of resources to the individual processes or

activities can be started. There are four categories of resources in a
project, namely, labour, equipment, material and supplies. There are
some other resources also in the virtual terms such as time and money
which also needs the allocation for the different activities of the proj-
N
ect. While allocating the resources, the main focus should be on crit-
ical path activities as they exhibit the major processes of the project.
These processes decide the completion of the project on the scheduled
time. The float value should also be considered when having more
critical path activities. There are some priority rules defined which
may be used to decide for the allocation of the resources to the activ-
ities.
The chapter discusses the expedition of the project including the use
of excel to crash the project and fast-track the project. It also discusses
the critical path method. Next, the chapter explains about resource
loading and resource levelling. After that, it explains the methods for
allocating the resources to the IT projects. Next, the chapter explains
the Goldratt’s critical chain method in detail. Then, the chapter lists
the different objectives of the communication management. Then, it
describes the communication matrix and channel and PMC cycle. Fi-
nally, it explains the procedure of reporting in the IT project manage-
ment.

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7.2 Expediting A Project

Expediting refers to speeding up project activities with an aim to en-
sure before-time or on-time delivery of the products. For expediting a
project, it is necessary to meet up with all parameters set during proj-
ect planning in terms of targets, quality, safety, packaging, quantity,
etc. Sometimes it is done by the external expeditor, and sometimes by
the internal procurement department.
Project expeditors are the people who are responsible for performing
the expedition task. They may be located at the client site or at the
project office. They maintain a direct contact with each project stake-
holder such as project manager, planners, buyers, design engineers
and development engineers. The process of expediting involves two
methods, which are:
S
Desk expediting: A routine check is done over the telephone or on
desk by mutually deciding with customers. This method is used for
obtaining submission dates for the documentation, order place-
IM
ment and progress of project deliverables. The method is used
generally for the small-scale projects.
Field expediting: It involves an actual visit to the site or field of
the project. This type of expedition can be project-oriented or ar-
ea-oriented. Project-oriented expediting is done by visiting the
project site one by one for all project instances. On the other hand,
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area-oriented expediting involves the identification of an individ-

ual in the organisation who may solve the problem easily and ef-
fectively. Field expediting is mainly used for critical projects with
a tight schedule.
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7.2.1 Using Excel to Crash A Project
Project crashing is all about shortening the duration of a project by

reducing the time of one (or more) of the critical activities of project
activities. The manual method of project crashing is quite tedious, and
therefore most organisations prefer to use a computerised approach
for crashing in which linear or nonlinear programming and Excel
Solver are used.
Different organisations use different methods or approaches for proj-

ect crashing. Some argue that the linear programming solver ap-
proach is the most reliable approach for estimating cost-time adjust-
ments in a project. Others recommend that the use of Excel Solver
is better due to its effective features for selecting activities to crash a
project. The network diagram used in the approach relies on the AOA
(Activity-on-Arrow) networks. However, creating an AOA network is
generally difficult due to problems in classifying and applying dummy
activities. Moreover, in an AOA network, event time of nodes (i.e., the
earliest time on which the event related to a particular node may oc-

n o t e s
cur) needs to be provided for specifying precedence relationships and

finding the time for project completion. Also, setting the constraints in
Excel Solver is quite tedious.
Excel Solver using the AOA approach includes a number of disadvan-

tages in terms of increased complex constraints and dummy activi-
ties for precedence relationships. Hence, Excel Solver has been intro-
duced as a new and efficient method for project crashing. This method
is based on the AON (Activity-on-Node) network approach that can be
understood and implemented easily.
Consider an example of a project crashing problem in which a project

needs to be completed before the given deadline. Table 7.1 contains
data for the project crashing problem:
Table 7.1: Data for the Project Crashing Problem
S
Activ- Immedi- Normal Crash Nor- Crash Crash
ity ate Prede- Duration Dura- mal Cost ($) Cost per
cessor(s) (days) tion Cost Day ($)
IM (days) ($)
A — 6 5 60 90 30
B — 7 4 50 150 33
C A 6 4 100 160 30
D A 7 7 30 30 n/a
E B 5 4 70 85 15
M
F C 9 7 40 120 40
G D,E 7 4 50 230 60
Source: https://www.cluteinstitute.com/ojs/index.php/IJMIS/article/view/6917
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In Table 7.1, the last column is displaying the details of the crash cost
per day, which is calculated by dividing the difference between crash
cost and normal cost from the difference between normal duration
and crash duration. Now, consider Figure 7.1 which shows the AON
network of the project:
A C F
B E
Figure 7.1: The Project AON Network


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According to Figure 7.1, the critical path of the project is ACF and the
project needs to be completed in 21 days. Besides this critical path,
two other paths of the project are ADG and BEG. The completion time
of these two paths are 20 days and 19 days, respectively. Now, the proj-
ect can be crashed by completing it before 21 days and at a minimum
cost. Let us first understand the logic of the problem for project crash-
ing, which is related to the minimum total cost of the project. Some
guidelines to formulate this problem of project crashing are as follows:
The project completion time must be less than or equal to (≤) the
earliest possible deadline.
The number of days taken by any activity can be shortened to such
an extent that it must be less than or equal to (≤) the maximum
number of days available for crashing the activity.
Non-negative decision variables, which are actually the number of
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days to crash an activity.
In case of an AON network, there is an additional set of constraints for

IM
defining precedence relationships. The number of constraints for each
node is dependent on the number of direct precedence relationships
with other nodes. For example, if node 11 has 9 direct precedence re-
lationships, there is a need of defining 9 constraints for node 11 only. It
should be noted that in a project that involves a large number of activ-
ities and complex relationships, and then there arises a requirement
of a large number of constraints within the network structure. This
M
can make the constraints setup tedious, error-prone and can cause
ineffectiveness in Solver implementation. However, in the case of the
AON network approach, the network structure can be defined clearly
and easily, without the need of any additional constraints.
N
Now, the next step in resolving the problem is to set up the Excel Solv-
er. The setup requires the below three steps to be followed in an Excel
sheet:
1. Organising and creating the input data
2. Creating the AON network
3. Defining Solver parameters and constraints
Now, consider the following Excel sheet in Figure 7.2 which is pre-
pared on the basis of the data given in Table 7.1:

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S
IM
M
Figure 7.2: Displaying the Excel Sheet

N
Now, we have first organised and prepared the input data so that set-
ting up Excel Solver can become convenient. nformation is specified
in cells B15 to E24. The detailed description of columns specified in
the Excel sheet from B15 to E24 is as follows:
Maximum Crash Days: These are represented from cells B18 to
B24 in the Excel sheet. These are the maximum available days re-
quired for crashing an activity. It can be calculated by determining
the difference between the ‘normal duration’ and ‘crash duration’
columns of each activity.
Number of Days Crashed: These are represented from cells C18
to C24 and are also known as decision variables. Solver tries to
determine the ideal number of days for crashing each activity in
order to minimise the cost of the project.
Actual Crash Costs: These are represented from cells D18 to D24
which can be defined as the additional cost required for crashing
each activity by certain duration. It can be calculated by multiply-
ing ‘crash cost per day’ and ‘number of days crashed’.

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Actual Activity Durations: These are represented from cells E18

to E24. It can be defined as the duration after which the activities
get crashed. It can be determined by subtracting the Normal Du-
ration and Number of Days Crashed.
Total
Normal Cost: It can be obtained by determining the sum of
normal cost.
Total Crash Cost: It can be calculated by finding the total of actual
crash cost for each activity.
Now, you can calculate the total cost of the project by adding the total
normal cost and the total crash cost which is aimed to be minimised
in project crashing. Next, we need to create an AON network by men-
tioning the network paths and determining the critical path. A net-
work structure is created with the help of network paths. A specific
S
group of paths uniquely represent a specific network structure.
Let us consider Figure 7.1 in which you can see that the network dia-
gram consists of three paths—ACF, ADG and BEG. The period of each
IM
path can be determined by the actual period of activities on the path,
before or after the crashing of an activity. For example, the time of path
completion for ACF can be determined in the cell G18 by adding the
cells E18, E20 and E23, which is the total of actual durations of activi-
ties A, C and F. Then, the project completion time can be determined
by the duration of critical path, which is actually the longest path in
the project. Therefore, we can calculate the project completion time
M
in the cell G25 by using the formula MAX (G18:G20), which provides
the longest duration among the three paths present in the network. In
this way, you can see that the network structure of AON can be clearly
defined and understood. In the end, we need to set up parameters and
N
constraints in Excel Solver, the Solver Parameters dialog box is shown

in Figure 7.3:
Figure 7.3: Displaying the Solver Parameters Dialog Box
In Figure 7.3, the Set Target Cell option allows you to specify the cell
number in which the total cost of the project is minimised. The By
Changing Cells option allows you to specify the Linear Programming
(LP) decision variables. You can crash an activity by changing the

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number of days of each activity. The Excel Solver tries to determine

the optimal values that satisfy all constraints and reduce the total cost
of the project to a minimum value. The constraints are mentioned in
the Subject to the Constraints field in the dialog box.
After setting up the Solver, project crashing problems can be resolved

easily and estimated in Excel.
7.2.2 Fast Tracking a Project
In the previous section, you studied the crashing mechanism using

Excel. Just like the crashing method, fast tracking is a strategy to com-
plete the project on time. It is applied on projects to compress the
project timeline so as to meet the planned deadlines. This involves the
process of performing project activities in parallel or partially parallel
S
to save time instead of performing a sequential mechanism.
In the sequential mechanism, one activity generally waits for the pre-
vious activity to be completed so that the execution of the first activ-
IM
ity can be started. On the other hand, in the parallel mechanism, an
activity is executed in parallel with the other activity resulting in the
reduction of time planned as compared to the sequential mechanism.
The parallel technique does not affect the cost, it just rearranges activ-
ities; however, results in the increase of risks in the project.
Sequential activities may be fast tracked to the level of 33% only, i.e.
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the next activity can only be started if the previous activity has been
executed at least 66%. In this case both the activities will be over-
lapped, therefore increases the level of the risk impact on the project
which may be in acceptable limits. If fast tracking is being applied be-
N
yond the limits of the project timeline, it can cause a major risk to the
project resulting in the rework to be done. Figure 7.4 demonstrates
the fast tracking process:
Before Fast Tracking
After Fast Tracking
Figure 7.4: Demonstration of the Fast Tracking Process

Source: https://pmstudycircle.com/wp-content/uploads/2012/09/Schedule-Fast-Tracking.jpg
Let us take an example to understand the concept of fast tracking.
Consider that the present project schedule is not able to meet project
deadlines. In that case you can adopt the technique of fast tracking

n o t e s
for saving time. You assign more than one activity to be run together
in parallel depending upon the requirement of resources needed for
them. This way, if more processes are running simultaneously, the fi-
nal or end activity will complete faster resulting in shortening of the
schedule. However, if the resultants of those activities are not accu-
rate, they may exhibit some risk and will need rework to be done fi-
nally.
1. The process of expediting involves ____________ methods.

2. Sequential activities may be fast tracked to the level of
____________ only.
S
Activity
Select any IT project of your choice. Crash the project using Solver.
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7.3 Critical Path Method
Critical path shows the flow of sequential activities from a starting
point to the end point of the project. It shows the earliest time by which
M
the project can be completed. Though it is not desired, some projects

may show multiple critical paths depending on the logic of the flow in
the project. The deliverables of the project are directly dependent on
the activities of the project, i.e. if there is a delay in any of the activi-
ties on the critical path, there will be a delay in the deliverables of the
N
project. This situation requires re-sequencing or project acceleration

to provide the deliverables as per the plan.
Critical Path Method (CPM), also known as critical path analysis, is

a network technique used to estimate the project duration. It may be
applied on all forms of the project such as software development, re-
search project, engineering, product development, etc. In a project,
multiple activities can be done in parallel depicting the multiple crit-
ical paths. Amongst the entire paths, the longest path having all the
critical activities is taken for the consideration to know the project
completion time. A project must complete all those activities first. The
key steps for determining the critical path are as follows:
1. Specifying Activities: All activities of the project must be
identified in the initial stage, which can be done through Work
Breakdown Structure (WBS). These activities will be treated as
the input for CPM. It should be noted that only critical activities
or higher level activities should be used in the CPM, otherwise
the critical path will become complex if all activities of the project
has been used in it.

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2. Establishing the Sequence of Activities: After determining

all activities of the project, their sequence of execution should
be determined. This can be done by finding the independent
activities, dependent activities, activities that can be executed in
parallel, activities that need a defined sequence only, etc.
3. Making the Network Diagram: After the sequence of activities
is known, their network diagram should be drawn either on
paper or using any of the computer software packages for it.
4. Estimating each Activity: The estimates for each of the activity
can be taken from the WBS using the 3-point estimation methods
such as COCOMO or any other method.
5. Identifying the Critical Path: The identification process of
critical path needs the determination of a few parameters for each
of the activities. The parameters are Earliest Start Time (ES),
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Earliest Finish Time (EF-ES + activity duration), Latest Finish
Time (LF) and Latest Start Time (LS-LF – activity duration).
The float time can also be treated as a parameter which denotes
IMthe time between ES and LS or EF and LF.
6. Drawing the Critical Path Diagram: In the end, the critical
path diagram can be drawn taking into account all the values
determined in the previous steps. It depicts the realistic figure
of the project as it is based on the actual values received for the
activities.
M
Consider Figure 7.5 to understand more about the critical path dia-
gram. It shows a critical path diagram using the activity-on-node tech-
nique. The technique represents the activity with box or node and the
relationships are shown with the help of arrows from predecessor to
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successor. The representation of the critical path diagram has been

Figure 7.5: Example of Critical Path Diagram

Source: https://cdn2.hubspot.net/hub/125770/file-1390970583-pdf/Critical_Path_Method_e-
Book.pdf?t=1456943256378

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In the above diagram, activities A, B, C, D and E shows the longest

path whereas activities F, G and H does not seem to be on the critical
path having the float values as 15 days, 5 days and 20 days, respective-
ly. This shows that activities on the critical path will have the critical
path drag, i.e. they may delay the completion of the project and the
activities off the path will not delay the project. If a critical path activ-
ity does not have any activity in parallel to it, the drag will be equal to
its duration; otherwise the drag will be equal to whichever is less: its
duration or the total float of the parallel activity having the least float
value.
3. WBS stands for ____________.
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4. The float time denotes the time between the ES and LS or EF
and LF. (True or False)
IM
Activity
Build WBS for any IT project.
7.4 Resource Loading

M
Resource loading, also known as resource aggregation, involves de-

termining resources required from time-to-time to complete a project.
In other words, resource loading is all about identifying and quantify-
ing the requirement of different resources at different points of time
N
during the project life cycle. Resource loading involves:

Specifying the type of resources required
Quantifying the amount of resources
Aggregating the amount of resources
It should be noted that resource loading is done at the activity lev-

el. The requirement of resources for each different activity is clearly
identified and aggregated. The aggregate amount of required resourc-
es is presented in a histogram. There are separate graphs for separate
resources. The aggregation can be done on a daily, hourly or weekly
basis.
In the process, every employee is given a task as per the decided per-
centage of the complete project, which is generally 25% of the whole
project. Similarly, other assignments are also given to employees till
the point they get booked 100%. At that point, employees cannot take
more assignments as they will have no capacity to accommodate more.

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In resource loading, the project manager calculates the working hours

for the employees and decides how to assign the task to them so that
maximum output can be generated from them. This also makes the de-
cision for the project whether more employees or contractual employ-
ees are needed for the project or the present employees are enough
for the same. While making all these decisions, it should also be noted
that no employee can be 100% booked as any unexpected situation
may arise sometimes which may affect the project schedule. Also, if
the employees are overloaded, their productivity decreases with time.
Figure 7.6 presents a graph showing how resources are loaded in a

project:
S
IM
Figure 7.6: Example Chart for Resource Loading
M
Source: https://hubpages.com/business/RESOURCE-MANAGEMENT—
LOADING – LEVELING
The upper part of the resource loading graph shows the requirement
of resources in each week of the project. The lower part of the graph
N
shows a graphical representation of the requirement of resources in

each week. Therefore, it should be noted that the requirement of re-
sources is not constant throughout the life of a project.
5. In resource loading, a project manager calculates the working

hours for employees. (True or False)
6. The upper part of the resource loading graph shows the
requirement of resources in each week of the project. (True or
False)
Activity
Provide a scenario for resource loading in a project.

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7.5 Resource Levelling

The requirement of resources does not remain constant throughout
the duration of the project. Sometimes, the demand for a particular
resource can be more than the availability of resources. Generally,
a project manager needs to maintain a constant requirement of re-
sources. He/she always needs to strive to make efficient utilisation of
resources, which, in turn, minimises the idle time. Resource levelling,
also called resource smoothing, is concerned with ensuring that the
demand of resources does not exceed its availability.
The requirement of resources should be constant, so that the project

can progress smoothly. Similar to project crashing, resource levelling
also involves reallocation of resources. However, in crashing, the ob-
jective is to minimise the duration of the project, whereas in resource
S
levelling, the objective is to maintain consistency in the utilisation of
resources.
The resource levelling graph can be used for comparing demand and
IM
availability of resources. The starting time of activities in a project can
be adjusted for levelling the requirement of resources throughout the
life of a project. Each individual resource can be utilised on a daily
basis. Sometimes, resources are not adequate as per their demand. In
such a case, there is a mismatch between the demand of resources and
the actual available resources. Figure 7.7 presents a graph showing
M
the mismatch between the demand and supply of resources:

N
Figure 7.7: Resource Levelling Graph
Let us consider an example to understand the concept of resource lev-

elling. A hypothetical project network is shown in Figure 7.8:

n o t e s
2
8 )
2(1
Q
5(
M
8)
P3(16) T5(12)
1 5 6
N1
(14
2)
)
(1
R1
3 )
O
2( (12
6) S5
Figure 7.8: Project Network
The values inside brackets show the number of labourers required for
S
a particular project activity. The critical activities are M, Q and T. All
project activities need to be drawn in a time scale for the purpose of
resource levelling. Figure 7.9 shows project activities on a time scale:
IM
M
N
Figure 7.9: Time Schedule
The time schedule also shows the number of workers needed each
day, throughout the life of the project. It can be observed that there
is a large variation in the requirement of workers each day. In
Figure 7.9, it can be seen that more workers are required in the initial
days as compared to the last few days of the project.
Now, project activities are rescheduled to minimise variation in the

required number of workers. You have already studied that critical
activities cannot be rescheduled without affecting the duration of the
project. This is because the sum total of the duration of critical ac-
tivities is equal to the duration of the project. However, non-critical
activities can be rescheduled by utilising floats of activities. The re-
quirement of manpower can be reduced in earlier days and increased
later on by rescheduling non-critical activities. For activities shown

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in Figure 7.9, the rescheduling of non-critical activities is shown in

Figure 7.10:
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Figure 7.10: Revised Schedule of Activities
Resource levelling also has a few disadvantages, which are:

Some tasks get delayed due to the waiting of indefinite time for
resources.
The assignment of different resources becomes difficult for the
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project.
Task dependencies cannot be modified.
Removal or addition of task is not possible in the procedure.
N
Due to all the above problems, some delays and overrunning of

budget happens in the project.
7.5.1 Resource Loading/Levelling and

Uncertainty
In the previous section, you have studied balancing resources under

normal conditions. However, situations are not always certain. Holi-
days, vacations and sick leaves can reduce human resource availabili-
ty. Moreover, all required facilities and equipment are not necessarily
available when needed.
Let us understand resource levelling under uncertainty with the help

of an example.
In a group, 21 engineers are assigned the task to work for 40 hours in

a week. This results in the capacity equal to
21 × 40 = 840 labour hours in a week

n o t e s
The data is represented in Figure 7.11:
10
8 c
e
Units of A 6 f f
b b
4
i i i
a a e
2
f
g
0
S
10 20 30 40
Days
(a)
IM
10
8
i
Units of B
e
6
i i
4
f
j j
h d
2 d d
N
c h
b b e
0
10 20 30 40
Days
(b)
Figure 7.11: (a) Load Diagram for Resource A with Activities e and f
delayed by one day each (b) Load Diagram for Resource B with
Activities e and f delayed by one day each
Source: https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&c-
d=1&cad=rja&uact=8&ved=0ahUKEwjJ1KGOktvTAhUfR48KHWfvC34QFggh-
MAA&url=https%3A%2F%2Fxa.yimg.com%2Fkq%2Fgroups%2F20890241%2F213883446%2F-
name%2FPresentation1.ppt&usg=AFQjCNG_-O6KPkQ5gXpCWktiMu5E-V2cTA
The data shown in the graph covers the area through February to Sep-
tember, i.e. a period of total 34 weeks. Therefore the capacity of the
engineers becomes:
34 × 840 = 28,560 labour hours
However, as per the graph, the total capacity needed is 28,282, that
mean there is excess capacity in labour hours.

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In this situation, some problems may arise, such as asymmetrical dis-

tribution of demand for engineering labours and scheduling of scarce
resources for not more than 85–90% of the capacity. However, this con-
dition seems normal for the project. In such situation of excess capac-
ity, the following alternatives can be considered:
The demand for labour can be balanced by moving some of it for-
ward and some backward.
The trade-off time between overcapacity and under capacity peri-
ods during working hours can be altered.
Additional resources can be employed for the overload period.
7. The resource levelling graph can be used for comparing
S
demand and ____________.
8. The task dependencies cannot be modified in resource
levelling. (True/False)
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Activity
Create a graph on resource leveling for an IT project.

M
Allocating Scarce Resources to IT

7.6
Projects and Several Projects
N
When allocating resources, MSP uses the available activity slack for
rescheduling the WBS items. Due to this, the duration of the project
or schedule of the project does not change because of the capacity of
WBS to accommodate the items. However, this situation comes very
often and the software package needs input about the priority for us-
ing while doing the allocation of scarce resources to the tasks. This is
done to decide the sequence of the task, i.e. which will go immediately
or which may wait for some time period. For assigning these priorities,
a solution to the problem must be identified first using PERT/CPM
schedule.
The activities are examined for the time period and resources needed
in it. If the resource demand exceeds the supply then the software au-
tomatically considers the task one-by-one and provides the resources
as per the priority rules defined. On receiving the resources, the tasks
precede their execution as per the plan. The task which does not re-
ceive the resources waits for the resources from the current running
tasks to be free so as to get its turn and therefore delays. It will affect
the project duration and may be seen on the Gantt chart.

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7.6.1 Some Comments about Constrained

Resources
When more number of tasks wait for the resources to be freed up to

complete the execution, they delay the project and the project man-
ager requests more resources so as to complete the project on time.
The manager may complain for the scarcity of resources; however it
rarely applies to the resources. These types of resources which force
the tasks in the waiting mode may be said as ‘Waits’. Let us take an
example. There is an individual, Walter A., an employee of an IT or-
ganisation. He is the specialist for all software development projects of
the organisation. He is having good IT skills and the experience in the
same. Whenever a new software development project is undertaken
by the organisation, he is asked for his opinions and ideas. He is the
only one in the organisation having such capabilities. Projects need-
S
ing Walt’s input have to wait until he gets free. So he may be treated
as the true scarce resource. The main problem here is the solution for
deciding which project will get the scarce resource first and in what
sequence.
IM
7.6.2 Some Priority Rules
There are many rules available for the assignment of scarce resourc-
es to the tasks in a project, however, project management software
packages have a limitation for the automatic application and need the
M
manual application of the rules. The most commonly used rules are as
follows:
As soon as possible: This is treated as the default and standard
rule in the scheduling of resources. Here, tasks are scheduled to
N
begin with their EST’s and in that order only resources are pro-
vided to them.
As late as possible: Here, tasks are allocated resources on the ba-
sis of LST’s wherever possible without affecting much for the proj-
ect schedule.
Some other measures are:

Shortest task duration first: Shorter tasks as given priority as
compared with the longer tasks.
Minimum slack first: The tasks receive the resources for its com-
pletion in the inverse order of their slacks.
Most critical followers: Tasks with higher critical successors on
the critical path is given the first priority.
Most successors: Tasks with higher critical successors of the com-
plete project are given first priority.
Most resources first: The task with more number of resource re-
quirements is given the more priority.

n o t e s
The start dates of tasks as per the schedule allow the application of
early or late start rules and task slack information provides the min-
imum slack rule. The task duration is the necessity for the shortest
task duration rule.
7.6.3 Allocating Scarce Resources to Several

Projects
Allocation of scarce resources is a tough job, but if it is the case when

several projects are running concurrently, the problem extends and
the size and the complexity of the problem increase. These projects
may be independent of each other or may be a part of the large project
as sub-projects.
Let us consider an example of a single project. The project comprises
S
the first level tasks combined together to form a technological connec-
tion of predecessors and successors. The first-level tasks comprise the
second level tasks under them and arranged in the same manner. The
procedure continues with third level, fourth level and so on. If there
IM
are several projects, then they may be linked together with the pseudo
activities which have the duration, but do not require the resources.
The projects can be separated on time by establishing preferences be-
tween the projects using the pseudo tasks. This represents the AOA
(Activity-on-Arrow) network as given in Figure 7.12:
M
A C
Start End
N
D
F
Figure 7.12: Several Projects Connected Together with Pseudo Activ-

ities on a Timeline
Source: https://mosaicprojects.files.wordpress.com/2015/10/aoa.jpg
Each node in the figure represents a project and the arrows are pseu-
do activities which are connecting different projects together. Here,
scarce resources are allocated to each of the tasks in a single proj-
ect. The same method may be applied for several projects at a time.
Pseudo activities are capable enough to separate projects depending
on their planned schedule or in the random way. If the projects have
been arranged as a single project, then resource loading and levelling
charts may be used for them. However, the timelines for all projects
must be arranged likewise which allows examining the resource allo-
cation status.

n o t e s
7.6.4 Criteria of Priority Rules
Generally, a project manager has to face variations in the outcomes

due to the availability of different priority rules. The project manager
assigns a task the higher priority if it is of utmost importance to the
project or having maximum complexities in it. Due to this, sometimes
contract workers are also hired in an organisation and released once
the task or the project gets over. For assigning resources to such tasks,
a resource allocation procedure is needed by the project. Another sit-
uation for setting the high priority to the task may be because of the
nature of a task if its completion promotes a large amount of payment
for the project.
The other criteria would be uncertainty for scheduling tasks. There

can be two types of tasks in a project such as a task for which the time
period may be estimated and a task which is uncertain in nature. This
S
modifies priority rules for both the tasks. Therefore, the priority is de-
cided on the basis of the float value and the uncertainty factor of the
task. The task having greatest uncertainty will have higher priority as
IM
compared with the other tasks whose time duration can be calculated.
This is done because certain time tasks may be postponed or execut-
ed later as their actual time is already known which will not affect
the project schedule. Also if a task does not need the same resource
throughout the execution, the requirement for the resource for that
particular task is altered when it reaches to that point. Resources that
have been already used for a task in the project cannot be unsched-
M
uled and used in some other process. A task can only be unscheduled
if it does not have any economic loss to the project and the organisa-
tion.
N
Various measurable criteria which help in the selection of priority

rules are:
Schedule slippage: A set of projects delayed by applying the level-
ling rule to the tasks.
Resource utilisation: The degree of resources that is overworked
or underworked.
In-process inventory: The amount of pending assignments in the
project or organisation.
9. A solution to the problem must be identified first using

____________ schedule.
10. The other criteria would be the uncertainty for ____________
the tasks.

n o t e s
Activity
Suppose you are appointed as the project manager of a website

development project. How will you allocate constrained resources?
7.7 Goldratt’s Critical Chain

Eliyahu M. Goldratt has developed many theories for project man-
agement. One of the major ones is the theory of critical chain. The
critical chain theory is a measure to complete the project on time by
adjusting time schedules and reducing the probability of the project
getting late. It results in a delay of the project until it reaches to the
late schedules instead of early schedules as it is being done in the case
of older scheduling methods. The late schedule arranges all tasks on
S
the critical path, a buffer is allowed on to the schedule for reaching
the completion date. Goldratt suggests that a delay in the project work
encourages the project team members to learn from the knowledge
IM
gained while doing other assignments or part of the project.
A project schedule consists of two types of tasks, critical and non-crit-

ical tasks. The critical chain tasks are the traditional critical path,
which means that they do not have any float after the solving of re-
source confliction. The tasks other than critical chains are non-critical
tasks and carry some float with them. These tasks combine to form
M
groups to be represented as the sub-projects of the main project. Gol-

dratt calls these chains as ‘feeder chains’. The feeder chains do not
depend on critical chains, however, a task on the critical chain can
depend on feeder chains.
N
Figure 7.13 represents feeder and critical chains together:
A B C D
L M N O P Q
F G H J
A B C D Total
Expected value 30 20 25 10 85
Standard deviation 3 3 4 2 6.2
Figure 7.13: Feeder and Critical Chains

Source: http://academlib.com/3388/management/goldratts_critical_chain_theory
In Figure 7.13, A, B, C and D are the feeder chains where task P, which
is on the critical chain, is dependent on them. This shifts all feeder

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chains to the critical path. The feeder chain tasks will result is a delay
in the project schedule. A buffer may be used to avoid this situation.
7.7.1 Estimating Task Time
The following measures must be taken into consideration for setting

the schedule correctly:
The critical chain of the project must be computed once resource
conflicts and schedule constraints are resolved.
The critical path should be buffered. This can be done by calcu-
lating a two standard deviation buffer. Its application may be such
that the project starts earlier to its start date or the scheduled date
or by promising the stakeholders a later project completion date to
the early finish date.
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Group the feeder chain tasks into feeder chains.
Calculate the two standard deviation buffer for the feeder chain.
Once done, scheduling of tasks in the feeder chain must be done as
IM
per their late project schedule dates minus the calculated buffer.
After adopting this scheduling method, feeder chains have a 95%

probability of being completed within their buffered schedule and not
disturbing the critical chain tasks. The critical chain tasks are also
buffered so that the probability of missing the buffered promise date
of the project completion is 95 percent.
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7.7.2 Common Chain of Events
According to Goldratt, tasks discussed in the previous section may

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lead to the following chain of events:

1. If the time taken by activities is already known in advance and
their paths are independent of each other, the situation may
lead to underestimation of the actual project time needed for its
completion.
2. Project team members tend to inflate the time as compared with
the estimated time for activities due to the underestimation of
project time.
3. Inflated time leads to work filling for the available time. The
workers do not inform the project manager for the early
completion of the task. This generates a warning for the team
members for the safety time which may be misused by them.
4. The project development and deadlines get missed by the team
members.
5. Some of the unknown safety time in turn makes the procedure of
assigning priorities to the tasks difficult. The vague assignment
of priorities results in poor multitasking.

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6. Poor multitasking develops an increment in task durations and

leads to irregular demand for resources by the activities of the
project such as some activities may demand for overloaded
resources and others for under-loaded.
7. As there will be more resources, this will force to carry more
projects so as to fully utilise all the resources.
8. The addition of more number of projects will result in reduced
multitasking.
According to Goldratt, this chain of events leads to adverse situations.

The work gets piled up, team members get pressurised to complete
all the work by multitasking. This in turn increases the time taken for
completing activities, and thereby, an increase in the project time. Due
to this, the organisation will be able to complete fewer projects only.
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7.7.3 The Critical Chain
IM
The critical chain concept considers some problems that lead to proj-
ect delays and inefficiencies of tasks. These problems are:
Time duration for tasks are not known and are independent of
each other
The labours may increase their work time to protect themselves
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The completion of tasks early to their scheduled time is difficult

The project will extend to cover the extra time
The tasks may not start until it reaches the last minute
Multitasking may lead to interruption
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The demand for resources will not be reasonable

Task delays may happen and finally more projects will come up to
balance the resource utilisation.
So as to rectify these problems, some feeder time buffers must be tak-

en into consideration every time while planning for the project, spe-
cifically for an IT project. The project buffer is added at the end of the
project when there is a need of more time and money. The successful
completion of projects depends on the availability of bottleneck re-
sources required by the task, and some buffers are considered for the
resources which feed those bottleneck resources.
11. Goldratt calls non-critical tasks as ____________.

12. Feeder chains do not depend on critical chains. (True/False)

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Activity
Represent the critical chain graphically.
Objectives of Communication
7.8
Management
In project management, communication is crucial to get project activi-
ties done on time, which further leads to overall success of the project.
Therefore, it is important for a project manager to effectively manage
communication in all aspects of the project. The objectives of commu-
nication management in a project are as follows:
Alignment with organisational objectives: Suppose an IT compa-
S
ny wants to effectively implement cost-cutting measures in its on-
going IT projects. The company wants to increase its cost-cutting
measures by 5% of the previous year’s target. In order to achieve
IMthis, the cost-cutting target value should be communicated to all
team members working in active projects. This communication
may be made effective by sending e-mails or putting up the target
value on blogs, notice boards, in team meetings, as a part of KRAs,
etc. The aim is to constantly remind the concerned employees that
this is something to be achieved.
M
Alignment with market conditions and structure: Suppose an IT

company that is developing products for a US company is fighting
for survival in the market. The reason for this is the late adoption
of the quality management system, that is, Statement on Auditing
Standards No. 70 (SAS-70) or Sarbanes-Oxley (SOX) Compliance,
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by the company. It has long been mandated for IT companies in

the US market to possess this compliance certificate. After the
IT Company has obtained the compliance certificate, it needs to
communicate this information to the market. This may be done
through a website update, advertising through leaflets and bro-
chures, etc.
Alignment with the needs of the project, project team, software
developers and associated supporting functions: Let us take an
example of a project under execution. Suddenly, there are changes
in the requirements, and information needs to be communicated
to the teams involved, such as the testing team, human resource
team, etc., for the induction of the new sought requirements. Tele-
conferencing can serve as the best mode of communication here.
However, even this will be ineffective if the communication does
not take place in a timely manner, with as much details and spec-
ifications as needed by software developers and supporting staff
members. Therefore, the channel of communication should be
such that the intended audience is also able to revert in a timely
manner on the information that is communicated. This is a crucial

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aspect because, on many occasions, information is communicated

but the concerned person does not act in a timely manner; and
hence, the purpose of the communication is defeated.
Alignment with the needs of the client or customers: Let us re-
consider the example in which an IT project is under execution.
The client wants to have an effective communication channel so
that critical issues experienced in the project, such as a server
crash during support operation, are notified to the client punc-
tually. Although sending status reports to the client on a weekly
or daily basis is a way of communication that has been followed
across organisations customarily, sometimes, there are sudden ur-
gent matters that need to be communicated to the client on an
event-driven basis. The presence of a fast communication channel
will prompt the client to resolve such issues in a timely manner.
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Alignment with the needs of all stakeholders: All the stakehold-
ers of an IT project should be constantly updated on its current
status, including the progress made so far, the changes made and
the new requirements. For example, the project manager must
IM
communicate in a timely manner travel requirements of the team
members who are about to travel onsite or internationally in the
interest of the project. When travelling to international sites, com-
munication has to be detailed and specific and must be provided to
the travel desk in advance so that it can take care of their accom-
modation.
M
Alignment with the business processes: Consider an example of

an IT company whose current project is about developing soft-
ware for a client. During a private meeting with the client, the CEO
makes a statement about the status of the project, which is at the
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implementation stage. The statement is concerned with the pro-

curement of a hardware device that is required to be connected to
the server for retrieving Call Detail Record (CDR) from the switch
of the network. Later, the company also has a meeting with the cli-
ent. In the meeting, the VP makes the statement regarding the de-
velopment of an interface program for that hardware component.
This scenario illustrates how the business processes of this com-
pany go out of order as there are two versions of one matter – one
dealing with the procurement of hardware, while the other dealing
with the development of an interface program for that hardware.
Hence, there is a misalignment of business processes.
Alignment with technology advancements: The IT field is rapidly
advancing. Therefore, its players need to align themselves with
technological advancements; otherwise, they will have to strug-
gle for survival in the competitive market that is getting tougher
with time. For example, an IT company may still be doing projects
based on the earlier versions of .NET technology when its latest
versions have already hit the market. If the company wishes to
stay a step ahead of competition, it must update itself on a regular

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basis as well as adopt newer technologies that arrive in segments

of its interest.
13. After the IT company has obtained the compliance certificate,

it needs to communicate this information to the developers.
(True or False)
14. When travelling to international sites, communication has to
be detailed and specific. (True or False)
Activity
Give an example of communication management.
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Communication Matrix and
7.9
IM
Channel
Project communication management refers to defining the commu-
nication matrix and channels for managing the information flow. A
communication matrix is a type of assessment tool for mapping the
content, paths and endpoints of communication in respect of all the
M
members of a project. On the other hand, a channel refers to a medi-

um that is used to transmit information to the project team.
In this reference, let us consider an example of an ongoing project that

is currently in the development phase. Suppose a telecom project for a
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client based in Newark, USA is under progress in India. As the project

passes the development stage, an issue regarding the changing of the
address functionality comes up and requires a one-to-one with the
client immediately. A meeting with the client is fixed where the devel-
opment team and the project manager from India communicate with
the client in the US. The meeting goes on for more than two hours,
and finally both the client and the project team arrive at a solution
after a long discussion.
As the issue is resolved, there are new roles for certain team members
to play as defined during the discussion. These are as follows:
The testing team will update the test cases and test the code as per
the updated and new requirements.
The database administrator will make the changes required in the
database.
The configuration manager will be maintaining the configuration
of project components.

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The business analyst will be analysing the impact of the changes in

the subsequent functionalities.
The marketer or account manager will assess the financial impli-
cations of these changes in functionality.
The documentation team will update the technical documents of
the project.
Here, a communication matrix will be an effective process to ensure

that the decisions out of the discussion reach all the concerned mem-
bers of the project.
A communication matrix with respect to this example is shown in

Table 7.2:
Table 7.2: Communication Matrix
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Issue To be com- To be com- Frequency Channel
municated municated
by to
IM
Functional Project man- Executive Event driven Email,
requirements ager manage- whenever intranet; em-
related to ment, con- changes are ployee por-
software figuration to be incor- tal, e-room,
manager, porated PMO
DBA, testing
team, busi-
M
ness analyst,
marketer,
documenta-
tion team
Functional Project Concerned Event driven Mail
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requirements manager, manager;

related to ad- concerned concerned
ministration; in-change person
issues such
as relocation
of workplace
General HR repre- Entire organ- Event driv- Mail, in-
notification sentative, isation en, regular tranet, blog,
for all the administra- intervals notice board,
employees, tion repre- circulars, etc.
such as dec- sentative
laration of
public holi-
days, get-to-
gethers,
awareness
information,
new initi-
atives like
cleanliness
drive, etc.

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Table 7.3 shows another form of an organisational communication

matrix including other aspects such as category, method and detail:
Table 7.3: Organisational Communication Matrix

Audience Category Informa- Method Frequen- Detail
tion cy
Core team Project Core team Team Daily Action
execution/ project meeting
status progress,
accom-
plish-
ments,
issues and
challenges
Core team Status High-level Email Weekly Info/action
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project
status
Core team Project Issues and Meeting Weekly Action
execution challenges
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Core team Status Detailed Status Weekly Info/action
status report
document
Extended Status Status Email or Monthly Info/action
team overview meeting
Entire Status High-level All-hands Quarterly Info/action
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team project meeting

progress
Manage- Generic Project Meeting Weekly Info/action
ment informa- progress,
tion/status significant
N
accom-
plish-
ments,
issues and
challenges
requiring
manage-
ment
assistance
Extended High-level Email or Ongoing Info
team project webpage
status
We can have several versions of the communication matrix – it all de-

pends upon the needs and expectations of an organisation.
After understanding the basic concepts of a communication matrix,

let us now discuss various channels of communication. A channel, as
we have discussed earlier, it refers to the means or mechanism used
for communicating some information.

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The following are communication channels generally used in an IT

organisation:
Annual meetings, biannual meetings, general meetings: These
are the meetings in which the top management, i.e., the CEO and
board of directors, participates. These meetings are more or less
confidential as they mostly discuss the business, performance, fi-
nancial results and achievements of the organisation. The CEO
briefs the members about the progress of the organisation, rev-
enue earned from the projects, new ventures and initiatives, etc.
Notice boards: This is a channel for communication whereby ge-
neric information is displayed with the purpose of informing the
maximum number of employees. This may be information related
to newly introduced policies, general performance of the projects,
changes in the administrative facilities such as change in transport
S
timings, canteen timings, etc.
Surveys: In this type of communication channel, the organisation
gathers the opinions and views of its employees before implement-
IM
ing something at the organisational level.
Induction meetings and sessions: This is another form of commu-
nication channel whereby new recruits are briefed about the work
culture, mission and vision of the organisation.
Group meetings or departmental meetings: In this form of com-
munication, the achievements/issues/concerns of a department or
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group are communicated to all the concerned members. The main

purpose of such meetings is to ensure that the group is aware of
the current picture of work and performs in harmony as a single
unit, even if individuals have their own style of working.
N
Intranet:In this communication channel, the information is com-

municated to all or a selected group of people through the intranet.
Website: This is a form of communication channel whereby ex-
ternal entities are communicated regarding the products and ser-
vices or achievements of the organisation.
15. A channel refers to a medium that is used to transmit

information to the ____________.
16. Several versions of the communication matrix cannot be
possible. (True/False)
Activity
Using the Internet, find some organisations that have used the
communication matrix.

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Plan-Monitor-Control Cycle
7.10
(PMC Cycle)
Before we learn about these three vital steps to guide a project through
its initial stages to the destination in IT project management, let us
first define the terms plan, monitor and control separately and un-
derstand how they find importance in the management of IT projects.
The term plan refers to determining the path, means and mechanism
to reach to an aspired place in the future. Planning means visualis-
ing the future elements and tasks at the present time so as to analyse
problems and risks arising in them. Let us understand ‘plan’ with an
example. When we start serious planning over a project, what we do is
actually bring the future into the present. How? We want to finish the
project within a deadline of, say, 6 months. Once the deadline is fixed,
S
we turn to devising the best means including resource requirements
and quality assurance requirements, software requirements, hard-
ware requirements, etc., for meeting this deadline. This way, we have
IM
already determined that the project will be successfully completed in
six months.
The term monitor refers to keeping a tab on the application and work-
ing of the means and mechanisms that were planned to be used for
the project. In other words, to monitor is to oversee the associated
resources, schedules, cost implications, etc.
M
Control, in simple words, means ensuring that the project is going for-
ward according to the plan. If there is a deviation, software profession-
als will deploy workable measures that will get it back on track, i.e., in
the path as defined in the plan. For example, suppose during the exe-
N
cution of an IT project, it is seen that the schedule for the development

of a module is late by 1.5 months; so the controlling measures may
include induction of more resources so that the delay can be covered.
7.10.1 Designing a Project Control System
Every project is required to be controlled efficiently. This is more cru-

cial in the case of IT projects because they are carried out to create
technical products. In a technical piece, even if one part does not func-
tion well or is missing, the overall working will be affected. Hence,
adequate controlling tools must be deployed to ensure that no error or
negligence goes unnoticed in the project. Designing a project control
system is a big activity in itself, which every project manager must
conduct right at the beginning of the project plan.
The following are the basic steps of designing a project control system:
1. Setting objectives: By setting the objectives of a project control
system, the management specifically fixes the direction with
respect to the requirements of the project as well as of the
organisation. Note that these objectives must be aligned with the

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business objectives of the organisation. If this alignment is not

there, the whole purpose of developing a project control system
would be ineffective.
For example, if an IT company develops software by using .NET
technology, the objectives must be set with respect to the .NET
system. On the other hand, if the company sets the objective of the
project control system in the PRO-IV environment (a business
rule engine to deliver complex and critical software projects
quickly and securely through a varied range of environments),
which is not much in demand, this will defeat business objectives
as the main operations of the company is in the .Net environment.
Another example could be reduction of software testing defects
by 10% of the previous year at an overall organisational level.
2. Identifying key control parameters: This step involves the
S
identification of key control parameters. Continuing with the
example from the previous step, one of the key control parameters
is 10% reduction in the fatal defects in software of the company.
By establishing this parameter, project managers know their
IM
requirement that is to be controlled in an exact manner. The
classification of the defects such as fatal, minor or major is done
according to the definitions as accepted by the organisational
decision makers.
In the absence of this classification system, managers may
wrongly classify a fatal defect as minor and may not take the level
M
of action that is actually appropriate or required. For example,

during the testing of software, a defect is observed, and the
software cannot run unless this defect is removed. Now, as per
the classification criteria drafted by experts, it is a fatal defect,
but the project manager classifies this defect on his/her own
N
judgment and labels it as a major defect. Will it not disrupt the

smooth progress of the project and cause unwarranted delays
and arguments? Hence, along with objectives, an IT project
must also have its key parameters defined beforehand.
3. Formulating processes for the controlling system: This is
another important step that formulates processes required for
implementing the controlling system. The process so formed
must follow the Entry, Task, Verification and Exit (ETVX) model
that is widely used in the IT industry. ETVX is a framework
for the Software Development Life Cycle (SDLC) processes or
phases. Entry refers to the point at which a process comes into
existence. Task refers to a job to be executed in a sequence.
Verification refers to the method of checking whether all tasks
of the process have been executed. Exit refers to the stage where
the process moves out of the system.
4. Deploying metrics in processes: During the formulation of
processes, metrics must be incorporated. Metrics refer to data
that actually assist in the controlling of processes, and thereby, of
the project also. For example, in the case of project management,

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schedule variance is a metric that enables the project manager to

take additional measures such as instructing employees to work
overtime to finish the project in time.
5. Implementing processes: Here, the project enters the execution
mode, and the processes formulated in the previous steps are
put into practice. Various metrics generated are collected and
analysed in a systematic manner, and control measures are
deployed in the project execution mode. Suppose a project
that has just commenced is at the requirements stage. Hence,
requirements gathering and analysis take place at this stage,
and the metrics documented in the process are gathered as per
the steps in the process. These metrics are analysed, and control
measures are taken in case the project is going slow or fast.
Figure 7.14 shows various performance requirements of a project con-
S
trol system:
Resource Performance
IM
Stakeholder A’s 0% Usability
Financial Budget [Operator]
[Management] Reliability
Stakeholder B’s
Financial Budget
100% Security
M
Elapse Function
Environment
Time
100%
Innovation
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Effort
0%
Cost Reduction
Client Accounts
Figure 7.14: Various Performance Requirements of a Project Control

System
Source: http://www.methodsandtools.com/archive/gilb1_1.gif
7.10.2 Project Control Through Metrics
Metric is a measurement standard that helps in measuring the quality

or performance of a deliverable project. Something that can be mea-
sured can be controlled. Thus, metrics are used for the controlling
purpose. The importance of metrics can be listed through the follow-
ing advantages:
They provide direction to the project manager: Through metrics,
the project manager can easily know whether the project is behind
schedule or ahead of it.

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They can be used for comparison: This means that the project
manager will be able to compare and conclude who has done the
job in an efficient manner and who has not. For example, the man-
ager can compare whether Joe is a good tester or Dean, as both
have tested the software and the data pertaining to the number of
defects of each tester is available.
They help in taking decisions: With the help of metrics, taking de-
cisions is easier, and the decisions made are more effective, as they
provide objective evidence of the progress status of project execu-
tion. For example, the project manager is able to decide whether to
continue with smoke testing or any other testing technique not as
the timeline for project delivery is approaching fast.
They help with proactive measures: With metrics in hand, the
project manager is able to take proactive measures. For example,
S
suppose the root cause analysis of reviewed defects has indicated
that a lack of experience in gathering requirements as the main
cause of the defects; therefore an experienced person should be
deployed for this purpose now.
IM
The following project metrics are widely used in IT projects:
Effort overrun: This is used as a control measure to monitor effort
variance in the ongoing project.
Size variance: This is used to determine variance in terms of the
M
project size with respect to the initial and final estimates of the
project. The size estimate can be in the form of a number of func-
tion points, objects, screens, reports, etc., depending upon the
project.
Productivity: This is used to measure the productivity of the ap-
N
pointed software professionals. The productivity output can be in

terms of the number of functions developed per day or the number
of defects per line of code.
Resource utilisation: This is used to measure the rate of utilisa-
tion of resources employed in the project. This can be in terms of
percentage also; for example, resource utilisation can be 90% over
a given period.
Schedule compliance: This is used to measure how well the
planned schedule was adhered to by those for whom it was meant.
For example, schedule compliance of 90% means that the project
is behind 10 days assuming 100 days as the time for completion.
Defect density: This is used to measure the defect density of the
code. For example, defect density can be in the form of 5 defects/fp.
Test efficiency: This is used to measure the efficiency of the test-
ing process. It is generally 70% as per the industry, which means
the testing process is able to detect 70% of the defects only.

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Review effectiveness: This is used to determine the effectiveness

of the review process. An efficient review process is able to detect
and remove 80% of the defects before implementation.
Test coverage: This is used to determine the adequacy of the test-
ing process. Testing is an endless process, and its adequacy can be
measured only by covering a limited part of the process.
Turnaround time: This is used to determine the time taken to
clear or rectify the reported issue or defect.
7.10.3 Project Communication Plan
Communication plays an integral role in any project. It is a coordinat-

ed effort by all the team members. A project communication plan is an
administrative approach for providing stakeholders with the relevant
S
information about the project. This plan defines who will receive the
information, what information will be communicated, how the infor-
mation will be distributed and how often, who will be responsible for
delivering the information and who for taking action upon it, and, fi-
IM
nally, what channels will be used to deliver the information.
The following are the generic contents of a project communication

plan:
Scope: This section describes the scope of the communication
plan. For example, the scope of the communication plan is lim-
M
ited to software professionals who are directly or indirectly in-

volved in the development of the software. The testers, HR staff,
and admin staff are indirectly involved in software development,
while software coders are directly involved; hence, there is a need
to communicate on the progress of the project at regular inter-
N
vals. Whereas, in the case of project managers, 80% of their time is

spent communicating, as is globally evident.
References: This section describes the references to project docu-
ments repository, such as Visual Source Safe (VSS) or Concurrent
Versions System (CVS), wherein the documents related to import-
ant communication are stored and managed as per the configura-
tion management policy of the organisation.
Intended audience: This is the section in which the intended au-
dience and the role it plays in the communication system are cov-
ered. For example, a software developer need not have access to
information related to financial requirements. Rather, he/she re-
quires access to the functional requirements of the project.
Project structure: This section describes the structure of the proj-
ect. It is on this structure that the flow of information is defined
along with its access mechanism, such as read-only information,
for information purpose only, or for taking necessary actions.
Steering committee: This section describes the role of the steer-
ing committee of the project as well as its role in handling the in-

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formation, such as acting as the ultimate decision maker in han-

dling escalation of issues like legal, technical, cost, management,
organisational and personnel with a good resolve.
Project sponsor, project director, project manager, advisory com-
mittee, business project team and other stakeholders: This sec-
tion describes the role of each of these stakeholders in the project
and the type of information it is required to manage and act upon.
For example, the project director must have access to the project
status, resource utilisation, capacity utilisation, and other related
issues, while the project manager is required to have access to op-
erational information details, in addition to information related to
capacity utilisation.
Information communication process: This section describes the
means and mechanism for how the information will flow and what
type of information must flow to the concerned persons. For exam-
S
ple, the configuration manager must allow information related to
configuration items to the stakeholders.
Communication changes: This section describes any kind of
IM
changes in project information and how these changes will be com-
municated to all the members affected. For example, if the client’s
requirements change, in what manner will they be communicated,
as well as when and how much?
Communication tracking and storage: This section takes care of
communication tracking and information storage. For example,
M
when requirement changes take place, the section helps check

whether the information has been communicated to the DBA, tes-
ters, configuration manager, and other associated project stake-
holders or not.
N
Table 7.4 (A) and (B) show the summary and communication plan,
respectively, of a project:
Table 7.4 (a): Project Summary

Project Title:
Project Manager:
Executive Sponsor:
Principal Stakeholder:
Date:
Table 7.4 (b): Communication Plan

Deliverable Recipient(s) Delivery Schedule Who’s Re-
Info (What) (Who) Method(s) (When) sponsible?
(How) (Owner)
Project infor- Project Team Sharepoint As needed Project Man-
mation Team meet- ager
ings Confer-
ence calls

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Deliverable Recipient(s) Delivery Schedule Who’s Re-

Info (What) (Who) Method(s) (When) sponsible?
(How) (Owner)
Project sta- Project Plan- ePortfolio By 12 noon Project Man-
tus ner PMO Email every Tues- ager
Director day By noon
every Mon-
day
Agenda/ Project Team Email Share- Monthly Project Man-
Minutes Steering point Team ager
Committee meetings
Timeline Steering Meetings As needed Project Man-
Update Committee Sharepoint ager
Exec. Spon-
sor Manag-
S
ers
Project Up- Project Man- Team meet- As needed Project Team
dates Action ager ings Confer-
Item Status ence calls
IM
Email
Project Risks ITEC/ Exec. Risk meet- As needed Project Man-
Sponsor Pro- ing Meeting ager
ject Team minutes
This plan depicts what type of information is required to be delivered

and to whom, and the timeframe for delivering the information, etc.
M
Figure 7.15 shows another format of a project communication plan:

N
Figure 7.15: Format of a Project Communication Plan

Source: http://www.swiftlightsoftware.com/communications-plan/communica-
tions-plans-in-Swiftlight.html

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The main purpose of depicting in this format is to highlight that there

is no hard-and-fast rule regarding the structure of the project commu-
nication plan. It all depends upon the needs of the project as well as
of the client.
17. ____________ describes the structure of the project.

18. ____________ describes any kind of changes in project
information.
Activity
Using the Internet, find an example of an IT organisation where the
S
project control system is used.
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7.11 Reporting
In simple terms, reporting means the manner in which information is
presented to the concerned audience. While communication is about
using tools – oral/verbal, written or visual – to inform the audience,
reporting means presenting information in a manner appropriate to
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the concerned audience. Reporting is more formal, succinct and to

the point. For example, the weekly status reports of a project that are
mailed to the client will contain the completion level of the project at
the week’s end. It may also contain information related to the new
issues that may have cropped up.
N
Thus, in case of reporting, the focus is invariably on the manner of

presenting the information in a concise manner that is fit for the re-
cipients. When it comes to reporting for IT projects, there are several
points to be taken into account. Some of these are as follows:
Timing of reporting: This is the most important point of consider-
ation as a report that comes after it was expected will lose its sig-
nificance. For example, sending the status report of the first week
at the end of the month has no value as further developments will
already have taken place in the project.
Contents of report: The contents of the report must have rele-
vance to the intended audience; otherwise, the report will not have
any meaning. For example, presenting a report on the number of
testing defects found and presented to the human resource per-
sonnel has no value if it comes late; such a report will result in a
waste of time for the one who prepared the report, the one who
read it and, in the end, for the organisation altogether.

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Accuracy and precision of report: This is yet another important

aspect that needs serious consideration. The beauty of a commu-
nicated piece lies in how accurate and precise the matter is; and
when the form of information is as formal as a report, accuracy and
precision become all the more important. This is because the in-
tended recipient of the report is supposed to act upon its contents;
and without the accuracy, that person cannot bring to the notice
of the concerned authorities on the action to be taken. This will
result in the wastage of time. Similarly, an imprecisely written re-
port will also waste time because if the matter rambles than clearly
conveying the intended meaning, the recipient will first take a few
reads to make sense of it and, eventually, lose interest.
Report contents in a logical order: A report should be organised
with proper headings and subheadings. A logical report is easy to
follow and, hence, will get prompt action.
S
Validation and verification of report: A report must be verified
and validated before it is shared with the intended audience. This
procedure needs to be followed without fail as action on wrong
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information provided may lead to unpleasant consequences. This
will result in the intended audience losing faith in the reporting
party.
In this section, we will discuss how data is collected for reporting on

IT projects.
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7.11.1 Data Collection for Reporting
The following are the steps that can be followed for the collection of
data:
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1. Identification of data: The first task is the identification of the

data to be collected for each of the functions or departments in
the organisation. This practice enables the concerned authorities
to take corrective and preventive actions timely, based on the
data reports so generated. In general, the following functional
departments are entrusted with the responsibility of identifying
and collecting data:
Marketing department: This department will collect the met-
rics related to the number of proposals that are at the nego-
tiation stage or in the pipeline, or the proposals on which no
activity has been performed as yet.
Networking department: This department will manage the
metrics related to server uptime, number of machines de-
ployed for particular projects, configuration of machines, ma-
chine maintenance history, etc.
Software development department: This department will
maintain the metrics related to number of screens developed,

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number of pages developed, number of defects found, project

effort variance, schedule variance, productivity, etc.
Quality assurance department: This department will collect
metrics related to process effectiveness, process compliance,
number of changes suggested by development teams, etc.
Human resource department: This department will manage
the metrics related to the number of persons deployed in proj-
ects, number of persons deputed onsite, number of persons re-
turning from onsite, etc.
Materials management department: This department will
manage the metrics related to quality of the materials received,
materials found defective, materials requiring repair, etc.
2. Identification of means and mechanism: Once the first task
S
has been executed, the next step is identification of the means
and mechanism through which the metrics will be collected
and stored. Thus, in order to execute this step, a process-
IM
based approach is applied. This involves the formulation of
processes and templates, forms and logs wherein the metrics
will be captured by the concerned individuals and posted to
the centralised recordkeeping system. This centralised record
keeping system is the core of the metrics collection process and
may be maintained through VSS or CVS software or any other
software.
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3. Verification and validation of data: Once the collected data is

posted to the central repository, it is verified and validated by
the concerned departmental head. If any changes are considered
essential, this person carries out the necessary changes.
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4. Distribution of information: The information is then floated

to all the concerned entities either by mailers or by any other
mechanism as decided in the weekly or departmental meetings.
5. Compiling the information: Finally, the organisational metrics
group takes in the data from all the responsible departments’
centralised repository. The group compiles the data and prepares
a baseline report for the organisation. This report is then utilised
for various business activities.
7.11.2 Information Distribution
Distribution of project-related information first requires the imple-

mentation of a communication management plan so that the channels
of communication, ethics of communication and the individuals to be
informed are all pre-set. For the purpose of information distribution,
all transactions that take place during the life cycle of the project are
regularly documented in the form of reports, such as weekly reports

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or monthly reports, so that the information can be shared or distribut-

ed to the project stakeholders as and when needed.
Apart from weekly/monthly reports, this distribution of information

can be done in the form of emails, status meetings, client meetings, re-
view meetings, etc. Alternatively, the information may be made avail-
able on a central repository system, access to which may be provided
to the concerned persons or departments (only). In other cases, the
information may be floated around through the intranet or the organ-
isation’s website.
7.11.3 Reporting Performance and Progress
Tracking and documenting performance to regularly produce reports

is one of the demanding activities of any IT project. The progress and
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performance report of an IT project should cover the following key
points:
The name and code (if any) of the project
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The current condition of the project
The percentage of work expected to be completed today
The percentage of work actually completed today
The number of days the project is running behind or ahead of the
schedule
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The number of identified issues, decisions or resources required
Reporting on project performance and progress keeps project stake-

holders well informed of the progress and resources used or to be
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used in achieving project objectives. This is crucial because if all those

associated are not updated on the latest status of the project; they will
not be able to attune their performance to the current requirements,
which will complicate the project situation lead to unnecessary delay
in project delivery.
The performance and progress of a project under execution can be

reported in client review meetings; weekly review meetings or on an
event-driven basis. Alternatively, the information can be distributed
through either brown-bag sessions or informal sessions among the
concerned individuals.
19. Once the collected data is posted to the central repository, it

is verified and validated by the concerned departmental head.
(True/False)
20. Distribution of project-related information first requires
implementation of a risk management plan. (True/False)

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Activity
Give an example of the reporting format.
7.12 Summary
Project expeditors are the people who are responsible for perform-
ing the expedition task.
The aim of project crashing is to finish a project earlier than the
decided deadline at a minimum cost.
The sequential activities may be fast tracked to the level of 33%
only, i.e. the next activity can only be started if the previous activity
has been executed at least 66%.
S
Criticalpath shows the flow of the sequential activities from start-
ing point to the end point of the project.
Resource loading includes the involvement of manpower or the
IM
employees of the organisation.
Resource levelling is a technique in the project management phase
which decides the resource allocation to the tasks of the project
and helps in resolving the conflicts of requiring resources on pri-
ority basis.
M
There are many rules available for the assignment of scarce re-
sources to the tasks in a project.
The project manager assigns a task the higher priority if it is of
utmost importance to the project or having the maximum com-
plexities in it.
N
The critical chain theory is a measure to complete the project on

time by adjusting the time schedules and reducing the probability
of the project getting late.
Projectcommunication management is defining the communica-
tion matrix and channels for managing the information flow.
Reporting is a manner in which information is presented to the
concerned audience.
key words
In-process inventory: The amount of pending assignments in

the project or organisation.
Minimum slack first: The tasks receive the resources for its
completion in the inverse order of their slacks.
Most critical followers: Task with higher critical successors on
the critical path is given first priority.

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Most resources first: The task with more number of resource

requirements is given the more priority.
Most successors: Tasks with higher critical successors of the
complete project are given the first priority.
Resource utilisation: The degree of resources that is over-
worked or underworked.
Schedule slippage: The set of projects delayed by applying the
levelling rule to the tasks.
Shortest task duration first: Shorter tasks are given priority as
compared with the longer tasks.
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1. What is the aim of project crashing?
2. Define critical path.
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3. Discuss resource loading.
4. Discuss resource levelling.
5. List two priority rules for resource allocation.
6. Name the different types of tasks in a project.
7. What is the use of communication channel?
M
8. Explain project communication management.

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Answers for Self Assessment Questions

Expediting a Project 1. Two
2. 33%
Critical Path Method 3. Work Breakdown
Structure
4. True
Resource Loading 5. True
6. True
Resource Levelling 7. Availability of resources
8. True
Allocating Scarce Resources to IT 9. PERT/CPM
Projects and Several Projects
10. Scheduling

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Goldratt’s Critical Chain 11. Feeder chains
12. True
Objectives of Communication 13. False
Management
14. True
Communication Matrix and Chan- 15. Project team
nel
16. False
Plan-Monitor-Control Cycle (PMC 17. Project structure
Cycle)
18. Communication changes
Reporting 19. True
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20. False
Hints for Descriptive Questions

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1. The aim of project crashing is to finish a project earlier than
the decided deadline at a minimum cost. Refer to Section
7.2 Expediting a Project.
2. Critical path shows the flow of the sequential activities from
starting point to the end point of the project. Refer to Section
7.3 Critical Path Method.
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3. Resource loading includes the involvement of manpower or the

employees of the organisation. Refer to Section 7.4 Resource
Loading.
4. Resource levelling is a technique in the project management
N
phase which decides for the resource allocation to the tasks of

the project. Refer to Section 7.5 Resource Levelling.
5. The priority rules are as soon as possible and as late as possible.
Refer to Section 7.6 Allocating Scarce Resources to IT Projects
and Several Projects.
6. A project schedule consists of two types of tasks, critical and
non-critical tasks. Refer to Section 7.7 Goldratt’s Critical Chain.
7. The presence of a fast communication channel will prompt the
client to resolve such issues in a timely manner. Refer to Section
7.8 Objectives of Communication Management.
8. Project communication management is defining the
communication matrix and channels for managing the
information flow. Refer to Section 7.9 Communication Matrix
and Channel.

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Suggested Readings
Schwalbe K. (2016). Information Technology Project Management
(Eight Ed). USA: Cengage Learning.
E-References
DANS (2006). Project Management Handbook. Retrieved 21 April
2017, from https://www.projectmanagement-training.nl/wp-con-
tent/uploads/2015/05/book_project_management.pdf
free-management-ebooks.com (2015). Principles of Project Man-
agement. Retrieved 24 April 2017, from http://www.free-manage-
S
IMment-ebooks.com/dldebk-pdf/fme-project-principles.pdf
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N

C h a
8 p t e r
QUALITY MANAGEMENT IN IT PROJECTS
CONTENTS
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8.1 Introduction
8.2 Quality Movement
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Activity
8.3 Quality System
8.3.1 International Organisation for Standardisation (ISO)
8.3.2 Six Sigma (6σ)
8.3.3 Capability Maturity Model Integration (CMMI)
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Activity
8.4 IT Project Quality Plan
8.4.1 Quality Philosophies and Principles
8.4.2 Quality Standards and Metrics
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8.4.3 Change Control and Configuration Management

Activity
8.5 Summary

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QUALITY JOURNEY OF INFOSYS LIMITED
Infosys Technologies Limited, a leading, multinational company

that provides business consultation, information technology and
outsourcing services. It was founded in the year 1981 and head-
quartered in Bangalore, India and is among the largest software
exporter companies as per the revenues of 2016. The joint part-
ners of Infosys are N. R. Narayana Murthy, Nandan Nilekani, N.
S. Raghavan, S. Gopalakrishnan, S.D. Shibulal, K. Dinesh and
Ashok Arora. Earlier, the name of the company was ‘Infosys Con-
sultants Pvt Ltd’. It was changed to ‘Infosys Technologies Private
Limited’ in April 1992, and then to “Infosys Technologies Limit-
ed” in June 1992 after becoming a public limited company. Final-
ly, it got changed to ‘Infosys Limited’ in June 2011.
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In 1983, Infosys was in the process of developing an application on
a new platform for a German customer. While testing the product,
Mr. Narayan Murthy noticed an error in the output. He informed
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the customer about the error immediately, which impressed the
customer with the quality aspects of the company. As a result, the
customer did not even perform further testing of the product and
accepted that on the trust for Infosys.
Over the next few years, they took many steps to increase the level
of quality metrics and its scope for the company by refining their
M
development processes. During the CMM evaluation, they ranked

level 5 in the list in 1997, which proved to be a quality certificate
for the company.
Some of the key features of Infosys’s quality management process

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are:
The company implements quantitative quality management
techniques, thereby following the highest quality standard.
The company has many quality certifications, such as CMMI
level 5 certification, ISO, EN9100, Six Sigma and the Baldridge
quality standard.
The company has been declared the winner of the CII-EXIM
Award for maintaining excellence in Total Quality Manage-
ment in 2002.
Among all, the major development was the creation of its own
Infosys Quality System, which lists and documents quality strat-
egies of the company. Presently, the company has around 620 cli-
ents worldwide and approx. 6500 projects. In spite of increasing
complexities in maintaining the business, the company is still able
to reach the quality standard in projects, and thereby satisfying
its stakeholders and customers throughout a project life cycle.

QUALITY MANAGEMENT IN IT PROJECTS 215
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learning objectives

>> Describe the quality movement
>> Discuss different quality systems
>> Explain the project quality plan
8.1 INTRODUCTION
In the previous chapter, you studied parameters and different meth-
ods for allocating resources in a project. Also, you studied various im-
portant concepts related to resource allocation such as project expedi-
tion, critical path method, resource loading, resource levelling, PMC
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cycle and reporting. This chapter emphasises the significance and the
requirement of quality management in an IT project.
The term ‘quality’ means different to different people. From the per-
IM
spective of customers, quality is all about how a product or service
meets their requirements and expectations. On the other hand, from
the perspective of an organisation, it is about how efficiently a prod-
uct or service is produced as per the pre-defined standards. In literal
terms, quality refers to a distinguishing feature or characteristic of
something. In the context of business, it refers to conformance to re-
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quirements or standards.
Project quality management is all about defining quality policies and

objectives to be abided by every stakeholder so that a project can sat-
isfy its goals and objectives. It is an on-going process where project
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deliverables are checked against non-conformance at every level of

the project.
The chapter explains the quality movement. Next, it discusses differ-

ent quality systems including ISO, Six sigma and CMMI model. Final-
ly, the chapter discusses quality philosophies and principles, quality
standards and metrics, change control and configuration manage-
ment of a project quality plan.
8.2 QUALITY MOVEMENT

The quality revolution started in the year 1950 in Japan by Dr. W. Ed-
wards Deming, an American engineer and management consultant.
According to Dr. W. Edwards Deming, expenses are reduced with im-
proved quality. Thereafter, many quality movements occurred. Among
all, a quality movement called Total Quality Management (TQM)
gained more popularity because of its effectiveness. TQM is a proac-
tive approach which most organisations implement to manage quality
of their products and services. According to Barrie G. Dale, “TQM is

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the mutual cooperation of everyone in an organisation and associated

business processes to produce value-for-money products and services to
meet and hopefully exceed the needs and expectations of customers.”
According to the Poonsook Janpen (2005), “Total Quality Management

(TQM) is a continuous set of mindset that keeps on improvement pro-
cesses for individuals, groups and whole organizations by understand-
ing and discovering better process.”
Figure 8.1 represents the evolution from quality control to TQM:
1950s - 1960s 1960s - 1970s 1970s - 1980s 1980s - Present
Quality Quality Quality

TQM
Control Assurance Management
S
Figure 8.1: Evolution from Quality Control to TQM
There is one more quality method which complements TQM, known

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as Just in Time (JIT) also referred to as lean production. The Ameri-
can Production and Inventory Control Society (APICS) has given the
following definition of JIT:
“A philosophy of manufacturing based on planned elimination of all

waste and continuous improvement of productivity. It encompasses the
successful execution of all manufacturing activities required to produce
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a final product, from design engineering to delivery and including all

stages of conversion from raw material onward. The primary elements
include having only the required inventory when needed; to improve
quality to zero defects; to reduce lead time by reducing setup times, queue
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lengths and lot sizes; to incrementally revise the operations themselves;

and to accomplish these things at minimum cost.”
In simple terms, JIT can be defined as a structural approach that

aims at improving timeliness, quality, productivity and flexibility es-
pecially in manufacturing organisations by utilising various methods
of work simplification and waste elimination. In the context of project
management, JIT provides easy-to-follow approaches so as to reduce
costs, improve quality and ensure the timely completion of the project.
In 1990, another movement named Six Sigma (6σ) was started at Mo-
torola. It was further popularised by the General Electric in 1995. It
proved to be a more controlled and planned mechanism as compared
to TQM. It was used to control the process in such a way that there
were no defects or fewer defects in a product or service. Many other
methods also came into existence under Six Sigma for developing and
improving quality aspects of the projects, such as DMADV (Define,
Measure, Analyse, Design and Verify) and DMAIC (Define, Measure,

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Analyse, Improve and Control). Table 8.1 shows the history of quality
management:
TABLE 8.1: HISTORY OF QUALITY MANAGEMENT

Year Milestone
Early 1920 Scientific management
1920s Statistical process control
1930s Acceptance sampling
1940s Military standards
1950s Quality management in Japan
1960s Quality tools and Taguchi method
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1970s Strategic quality mechanisms
1980s LEAN, Baldrige Award and TQM
1990s Six sigma
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2000s Supply chain management
1. What aims at improving timeliness, quality, productivity

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and flexibility especially in manufacturing organisations by

utilising various methods of work simplification and waste
elimination?
2. TQM is referred to as Total Quality Management. (True/False)
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Activity
Using different sources, find information on different milestones

of quality. Prepare a report on strengths and weaknesses of each
milestone.
8.3 QUALITY SYSTEM

Well-planned and effective quality management begins with identi-
fying customer requirements and attempting to fulfil those require-
ments. This is done on the basis of quality standards defined at the
initial stage of a project. It includes certain measures to reduce risks
which affect the completion of the project. In a project, quality man-
agement takes place at three levels, which are shown in Figure 8.2:

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Plan Quality
Project Quality
Undertake Quality Assurance
Management
Control Quality
Figure 8.2: Stages of Project Quality Management
Let us understand these stages in detail.

Quality planning: It is a process wherein the methods, process-
es and metrics to be followed for maintaining quality throughout
a project are identified and defined. It also includes identifying
probable non-conformances of the project and measures to over-
S
come those instances of non-conformances. A project quality plan
should be well-aligned with the procurement plan, risk plan, com-
munication plan and human resource plan.
IM
Quality assurance: It involves checks to ensure the implementa-
tion of quality measures as defined in the quality plan. It keeps a
check on the application of the designated metrics in the project.
The process of quality assurance provides confidence to the or-
ganisation that every step necessary for the timely and effectively
completion of the project is taken.
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Quality control: It is an ongoing process that includes monitoring

and taking corrective actions so as to achieve the planned quality
of the project. The process is similar to the quality assurance pro-
cess and checks whether quality assurance is being done as per
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the defined quality plan. It keeps an eye on project requirements

and standards whether they are being followed or not.
8.3.1 INTERNATIONAL ORGANISATION FOR

STANDARDISATION (ISO)
International Organization for Standardization (ISO) is an interna-

tional organisation with a membership of more than 160 national stan-
dard bodies. It was originated from the merger of two organisations,
International Federation of National Standardizing Associations and
United Nations Standards Coordinating Committee. The organisation
was started in 1947 as a non-governmental and non-profit organisa-
tion. It covers around 100 countries with a single standard body for
each country. For example, for US, the body is American National
Standards Institute (ANSI). The organisation is a team of members
who decide the development and the promotion of quality standards
in the country.
ISO 9000 standard defines the quality assurance terms and conditions
which can be applied to any of business products and services. A com-

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pany has to register itself as a member in the designated body of ISO

to acquire a quality certification. There are designated auditors for
checking quality standards of operations being followed in the compa-
ny. If the audit result is positive, the company gets the certificate from
the registered body. After initial certification, annual or semi-annual
audits are done.
Figure 8.3 shows the quality management principles of ISO 9000:
Document
Control
Preventive Record
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Action Control
Core Principles
of ISO
IM
Certification
Corrective Internal
Action Review
Non-
M
Conformance
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Figure 8.3: Quality Management Principles of ISO
These standards provides many benefits to companies, such as im-

proved efficiency, expanded marketplace, cost savings, fulfilment of
procurement tenders, high ratio of customer satisfaction and many
more.
8.3.2 SIX SIGMA (6σ)
Sigma (σ) is the eighteenth letter of the Greek alphabet, which rep-
resents standard deviation in statistics. In quality management, six
sigma signifies that if there were one million opportunities for a defect
to occur in a process, not more than 3.4 defects would be permitted
to occur. This makes the quality of the resultant to be almost perfect.
This is done by considering the present quality scenario of an organ-
isation and comparing it with the desired level of quality. It follows a
process improvement procedure and tends to reduce variations com-
ing in its path.

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There are two sub-methodologies in Six Sigma, which are:

1. Define, Measure, Analyse, Improve and Control (DMAIC): It
is the commonly used process in Six Sigma, which focuses on
defining and measuring improvement in the existing quality
level of an organisation. This process is applied to projects that
are below the satisfaction level and needs further improvement.
Figure 8.4 shows different phases of DMAIC:
Who is the customer and what are his/her

Define
needs?
How is the process defined and how are de-

Measure
fects measured?
S
What are the most important causes of the de-
Analyse
fects?
How can the causes of the defects be eliminat-

IM Improve
ed?
What actions are needed to sustain

Control
improvement?
Figure 8.4: Phases of DMAIC

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2. Define, Measure, Analyse, Design and Verify (DMADV):

This process is used primarily for ensuring the quality of new
processes, products, services or projects.
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Six Sigma helps the organisation to improve standard metrics. Af-

ter achieving stability in the metrics, the methodology may be again
applied to stabilise new process metrics. Let us take an example to
understand this more clearly. The cycle time for delivering a Pizza
is 60 minutes. After applying the Six Sigma methodology, it can be
minimised to 45 minutes. The methodology may be again applied on
the process of delivering pizza, which can again reduce the timeline
from 45 minutes to 30 minutes. This is the mostly used method in the
present market due to its high result giving ratio and problem-solving
strategies.
8.3.3 CAPABILITY MATURITY MODEL INTEGRATION

(CMMI)
Capability Maturity Model (CMM) is a method of measuring the ma-

turity of a particular project of an organisation on a scale of 1 to 5.
Earlier, the model was developed only for software development and
maintenance. Later, it was used in various other processes, such as
system engineering, integrated product and process development, etc.

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Capability Maturity Model Integration (CMMI) was developed to cov-

er and resolve the issues of applying multiple CMMs. It merges three
source models together as a single and improved framework so as to
provide process improvement. The source models are Capability and
Maturity Model for Software (SW-CMM), Electronic Industries Alli-
ance Interim Standard (EIA/IS) and Integrated Product Development
Capability Maturity Model (IPD-CMM). The objectives of CMMI are
to:
facilitate the production of quality products.
create value for project stockholders.
achieve high customer satisfaction.
grab increased market share.
The structure of CMMI comprises the following elements:
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1. Maturity levels
2. Process areas
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3. Generic and specific goals
4. Common features
5. Generic and specific practices
Here, you will study two elements of CMMI in detail which are matu-
rity levels and process areas.
M
Maturity levels aim at achieving well-defined path for processes es-

pecially in software organisations. A CMMI model has five maturity
levels shown by numbers 1 to 5 as listed in Figure 8.5:
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Optimising
5 Focus on continuous
process improvement
Quantitatively
4 Process measured Managed
and controlled
Defined
3 Process characterised
for the organisation
and is proactive
Managed
2 Process characterised
for projects and is
often reactive
Initial
1 Process
unpredictable,
poorly controlled,
and reactive
Figure 8.5: CMMI Maturity Levels

Source: https://www.tutorialspoint.com/cmmi/cmmi_maturity_levels.htm

n o t e s
Let us discuss these maturity levels in detail.

Level 1- Initial: At this level, usually software processes are new
and prone to reactive crisis. Therefore, no stable and structured
environment is provided by the organisation. It is the personnel of
the organisation who execute processes rather than depending on
any other factors.
Level 2- Managed: Here, the organisation has already achieved ge-
neric specific goals of processes. At this level, projects are planned
and controlled in accordance with the defined requirements. In
other words, it can be said that this level manages all the aspects
of the project and shows information in the form of a documented
plan. Such information can be accessed at some defined intervals
of a project life cycle.
Level 3- Defined: At this level, the standards, tools, measures,
S
mechanisms, procedures, etc. required for carrying out processes
and projects are well documented. The standards and other fac-
tors are visualised from the organisational point of view and not
IM
from a single process. Level 3 is described in more detail as com-
pared to level 2. Therefore, at level 3, a consistent performance
of the processes is expected except for the situations where the
guidelines have been modified or tailored.
Level 4- Quantitatively Managed: Organisations at this level fo-
cus on sub-processes of the overall task or activity. They control
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these sub-processes using statistical and quantitative techniques.

Here, processes are managed by considering and establishing the
quantitative objectives in terms of quality of a product. These ob-
jectives depend on the requirements of customers, organisation,
end users and the implementers of the project. Management of the
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processes with statistical techniques is done throughout the life

of the project. At level 3, processes were controlled using only a
qualitative mechanism whereas at level 4, they are also controlled
using a quantitative mechanism.
Level 5- Optimising: At this level, the organisation has already
completed all general and particular goals allocated with 1, 2, 3
and 4 maturity levels. This level mainly focuses on the continuous
improvement of processes using incremental and modern scientif-
ic techniques.
The maturity levels should not be missed in any circumstances as they

play an important role in providing the required base for the imple-
mentation of processes at the next level effectively.

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Table 8.2 provides the name of process areas of all maturity levels un-
der CMMI:
TABLE 8.2: PROCESS AREAS OF MATURITY LEVELS

Maturity Process Area Focal Point Result
Level
Initial Informal and temporary Lowest Quality/
process Highest Risk
Managed zz Requirements manage- Basic project Low quality/high
ment management risk
zz Project planning
zz Project monitoring and
control
zz Supplier agreement
S
management
zz Measurement and anal-
ysis
zz Process and product
IM
quality assurance
zz Configuration manage-
ment
Defined zz Requirements develop- Process Medium quality/
ment standardisa- medium risk
Technical solution tion
M
zz
zz Product integration
zz Verification
zz Validation
N
zz Organisational process
focus
zz Organisational process
definition
zz Organisational training
zz Integrated project man-
agement (with IPPD
extras)
zz Risk management
zz Decision analysis and
resolution
zz Integrated teaming
(IPPD only)
zz Organisational envi-
ronment for integration
(IPPD only)
zz Integrated supplier
management (SS only)

n o t e s
Maturity Process Area Focal Point Result

Level
Quanti- zz Organisational process Quantitative- Higher quality/
tatively performance ly managed lower risk
Managed zz Quantitative project
management
Optimis- zz Organisational innova- Continuous Highest quality/
ing tion and deployment process im- lowest risk
zz Causal analysis and provement
resolution
Source: https://www.tutorialspoint.com/cmmi/cmmi_maturity_levels.htm
S
3. Quality planning is the first step in the ___________________.
4. __________ ensure the implementation of the quality measures
as defined in the quality plan.
IM
5. ISO 9000 standard defines the quality assurance terms and
conditions. (True/False)
6. There is a single type of sub-methodology in Six Sigma. (True/
False)
7. At which maturity level of CMMI standards, tools, measures,
mechanisms, procedures, etc. required for carrying out
M
processes and projects are well documented?

8. Capability Maturity Model (CMM) is a method of measuring
the maturity of a particular project of an organisation on a
scale of ______________.
N
Activity
Find information on any two bodies under the ISO. Also, list the
functions of these two bodies.
8.4 IT PROJECT QUALITY PLAN

The execution of a project comprises a number of sub-processes with
internal deliverables. These deliverables should adhere to the quality
standards and requirements of the client. Therefore, these delivera-
bles are checked for quality at various levels before they are delivered
to the client. For this, a plan or list of guidelines must be followed
throughout the project lifetime. To address this requirement, a docu-
ment named ‘Project Quality Plan’ is developed by the project team.
It is necessary for all team members, the project manager and other
stakeholders to adhere to this quality plan throughout the project for
maintaining the quality of the project.

n o t e s
The components of a project quality plan depend on the nature of the

project and processes required to carry out that project. Some com-
mon components of a project quality plan are listed in Figure 8.6:
Responsibility of Management
Document Management and Control
Requirements Scope
Design Control
Development Control and Rigor
Testing and Quality Assurance
Risks & Mitigation
S
Quality Audits
Defect Management
IM
Figure 8.6: Common Components of the Project Quality Plan
8.4.1 QUALITY PHILOSoPHIES AND PRINCIPLES
Prior to the development of the quality plan, its purpose, requirement

M
and overall direction must be clearly identified. The focus areas for
the project quality plan are as follows:
Customer satisfaction: Customer satisfaction is the basis of qual-
ity management. Customers may be internal or external. Internal
N
customers are project stakeholders whereas external customers

are the project sponsor or client for whom the project is carried
out. Between the two, external customers primarily influence the
quality plan.
Prevention, not inspection: According to Deming, one cannot
inspect for quality in the built up product. It is either built in it
or not. He assumed four cost components for quality: prevention,
inspection, internal failure and external failure. Prevention costs
refer to costs incurred on preventing errors, defects, faults, etc.
Inspection costs include costs for the evaluation and audit of the
project for confirming the quality and the standards followed in
an organisation. Internal failure costs refer to costs of fixing and
rework on issues identified during the product development stage.
External failure costs refer to the cost of fixing and rework after
the product has already been developed.
Improve the process to improve the product: A project comprises
many sub-processes. Therefore, improving the quality, standard,
speed and time of these sub-processes will improve the quality of
the entire project. All processes of the project must be controlled
appropriately so as to ensure the quality of the project.

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Quality is everyone’s responsibility: Quality parameters depend

on the time and resources. It is not the duty of the project manag-
er only to improve the quality or adhere to quality standards. It
should be the duty of all project team members to adhere to the
quality plan. The management should also provide opportunities
to each team member to play an active role in ensuring quality.
Fact-based management: The quality plan to be followed in the
project tenure must be based on facts and figures. The data re-
lated to the plan must be collected and analysed accurately and
managed in such a way that it can be shown to the stakeholders
whenever required.
8.4.2 QUALITY STANDARDS AND METRICS
Quality standards determine specifications and criteria that should be
S
followed in a project. Standards must be meaningful, should have a
scope and should be relevant to the project. They can be set with re-
spect to a project’s usability, reliability, security, performance, etc. Con-
sider Figure 8.7 wherein the MOV represents the overall goal of the
IM
project in terms of the value that the project can bring to the organisa-
tion. MOV serves as the basis for defining the project’s scope and re-
quirements. The project scope defines high-level project deliverables
as well as basic features and functionalities of the project. Based on
features and functionalities, project standards can be defined in terms
of reliability, usability, performance, conformance, maintenance, etc.
Thereafter, quality attributes and dimensions for each of the project’s
M
requirements, features and functionalities are determined. These at-

tributes and dimensions are further translated into metrics.
Metrics provide operational definitions for quality management

and control by identifying defects. A defect refers to an instance of
N
non-conformance of the project or product standard. Figure 8.7 shows

the development of standards and metrics:
Projects MOV
Project scope & requirements
Project standards
zz Reliability
zz Usability
zz Performance Quality metrics
zz Response zz Product
zz Conformance zz Process
zz Aesthetics zz Project
zz Maintainability
zz Other
Figure 8.7: Developing Standards and Metrics

Source: https://books.google.co.in/books?id=cNNlN64BU_8C&printsec=frontcover&dq=infor-
mation+technology+project+management&hl=en&sa=X&sqi=2&pjf=1&ved=0ahUKEw-
iN34j4jOXTAhWDpJQKHeDYCAcQ6AEIRzAG#v=onepage&q&f=false

n o t e s
8.4.3 CHANGE CONTROL AND CONFIGURATION

MANAGEMENT
Change is inevitable in every aspect of business that can neither be

ignored nor stopped. In a project life cycle, change can occur at any
stage of a project. In a project, change can be formal or informal. As
the deliverables get ready, changes can be incorporated informally till
the project reaches a state of completeness. However, informal chang-
es are not permitted when the project is ready to be delivered. This is
because changes at the last hour of project delivery can lead to chang-
es in the initial plan and delivery dates. On the other hand, a formal
change is a proposed change that is assessed thoroughly. Based on the
assessment, the decision to incorporate or reject the change is made.
This decision is documented to provide a sense of stability to the proj-
ect.
S
Configuration management is a tool of project quality management
that is most commonly used by organisations for controlling and man-
aging changes in project documents and software products. Configu-
IM
ration management tools help in maintaining an environment wherein
a project team can access previous versions of documents and files. In
this way, configuration management helps to maintain the reliability
of project and product deliverables throughout the project life cycle.
In a nutshell, it attempts to answer the following questions:
What changes were made?
M
Who made the changes?

Why were the changes made?
When were the changes made?
N
The past documents may be compared with the current ones to iden-
tify new changes made. It assigns the team members with a specific
section of the document so that they can clearly identify the change
without any difficulty. The documents can be checked from the data
repository to maintain the control. Configuration management in-
volves certain policies that restrict anyone to access documents and
files without permission.
9. Internal customers are project stakeholders whereas external

customers are the project manager. (True/False)
10. According to Deming, one cannot inspect for quality in the
built up product. (True/False)
11. A ________________ to be followed in the project tenure must
be based on facts and figures.

n o t e s
Activity
Select any IT project of your choice. Assume that you are the proj-
ect manager of that project. Define quality standards and metrics
for that project.
8.5 SUMMARY
The quality revolution started in the year 1950 in Japan by Dr. W.
Edwards Deming, an American engineer and management con-
sultant.
In a project, quality management takes place at three levels, name-
ly quality planning, quality assurance and quality control.
Quality planning is a process wherein the methods, processes and
S
metrics to be followed for maintaining quality throughout a proj-
ect are identified and defined.
Qualityassurance checks to ensure the implementation of quality
IM
measures as defined in the quality plan.
Quality control is an on-going process that includes monitoring
and taking corrective actions so as to achieve the planned quality
of the project.
International Organization for Standardization (ISO) is an inter-
M
national organisation with a membership of more than 160 nation-

al standard bodies.
In quality management, six sigma signifies that if there were one
million opportunities for a defect to occur in a process, not more
than 3.4 defects would be permitted to occur.
N
Capability Maturity Model (CMM) is a method of measuring the

maturity of a particular project of an organisation on a scale of 1
to 5.
The execution of a project comprises a number of sub-processes
with internal deliverables. These deliverables should adhere to the
quality standards and requirements of the client. For this, a plan or
list of guidelines must be followed throughout the project lifetime.
A document named ‘Project Quality Plan’ is developed by the proj-
ect team that lists guidelines to be adhered with for maintaining
quality. It is necessary for all team members, the project manager
and other stakeholders to abide by this quality plan throughout
the project for maintaining the quality of the project.
The components of the project quality plan depend on the nature
of the project and processes required for carrying out a project.
The project quality plan depends on quality philosophies, princi-
ples and research studies that have performed over the years for
the similar project.

n o t e s
Configuration management is a tool of project quality management

that is most commonly used by organisations for controlling and
managing changes in project documents and software products.
key words
Capability Maturity Model (CMM): It is a method for measur-

ing the maturity of a particular project of the organisation on a
scale of 1 to 5.
DMADV (Define, Measure, Analyse, Design and Verify): This
process is applied to new developments and projects for main-
taining their quality.
DMAIC (Define, Measure, Analyse, Improve and Control): It
is a commonly used process of Six Sigma. The process focuses
S
on defining improvement areas.
Quality assurance: It defines checks to ensure the implementa-
tion of measures defined in the quality planning phase.
IM
Quality control: It is an ongoing process that includes monitor-
ing and taking corrective actions to achieve the planned quality.
Quality planning: It is the first step in quality management
plan which involves defining tools and methods to be followed
for managing the overall quality of the project.
Quality standards: They define quality specifications for proj-
M
ect deliverables.

N
1. Discuss the process of quality planning.

2. What is DMAIC?
3. How does Six Sigma help in maintaining the quality of a project?
4. What do you mean by quality standards?
5. Discuss the role of configuration management in a project.

Quality Movement 1. Just in time approach
2. True
Quality System 3. Quality management plan
4. Quality assurance
5. True

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6. False
7. Level 3
8. 1 to 5
IT Project Quality Plan 9. False
10. True
11. Quality plan

1. Quality planning is the first step in the quality management plan,
which suggests methods, processes and metrics which should
be followed throughout the project life cycle. Refer to Section
8.3 Quality System.
S
2. DMAIC is the commonly used tool by Six Sigma. The process
focuses on defining improvement areas. Refer to Section
8.3 Quality System.
IM
3. Six Sigma helps an organisation to improve standard metrics.
After achieving the stability in the metrics, the methodology
may be again applied to stabilise new process metrics. Refer to
Section 8.3 Quality System.
4. Quality standards provide quality specifications of deliverables.
Refer to Section 8.4 IT Project Quality Plan.
M
5. Configuration management manages changes that may occur in

a project by allowing the access of different past files. Refer to
Section 8.4 IT Project Quality Plan.
N
8.8 SUGGESTED READINGs & REFERENCEs
SUGGESTED READINGS
T. Marchewka J. (2015). Information Technology Project Manage-
ment (Fifth Ed). USA: Wiley.
A. Kelkar S. (2011). Information Technology Project Management
(Third Ed). India: PHI Learning Private Limited
E-REFERENCES
PM4DEV (2016). Project Quality Management. Retrieved
9May 2017, from https://www.pm4dev.com/resources/docman/
doc.../5-project-quality-management.html

C h a
9 p t e r
Project Outsourcing
S
CONTENTS
9.1 Introduction
9.2 Software Development Outsourcing
IM
9.2.1 Beginning of outsourcing
9.2.2 Types of outsourcing
9.2.3 Challenges in outsourcing
Activity
9.3 Implementation Plan of Software Projects
M
9.3.1 Setting the Implementation Objectives of an IT Project

9.3.2 Role and Importance of the Implementation Plan
9.3.3 Contents of the Implementation Plan
9.3.4 Challenges and Issues of the Implementation Plan
N

Activity
9.4 Project Implementation
9.4.1 Direct Cutover
9.4.2 Parallel
9.4.3 Phased
Activity
9.5 Summary

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Online Portal Implementation at IITS
Introduction
The Institute of Innovation and Technical Studies (IITS) is an en-

gineering institution that offers technical courses in the field of
information technology (IT). It was established in 2007 when the
demand for courses in the field of IT was on its peak. Thus, the
institution became popular among students and IT professionals
in a short span of time.
Problem
The students and professional who enrolled for different courses

were not able to avail the benefits provided by the institution due
S
to inefficiency of the existing information system of the institu-
tion. One of the major problems faced by students was timings.
The students who were IT professionals were not able to attend
IM
classes during weekdays like regular students and therefore,
wanted to enroll themselves for weekend classes. However, it was
not possible for the institute to allocate the weekend time slot to
each and every student because of a large number of students
already demanded the weekend time slot. Due to a large number
of students, a certain batch of students received a session of only
half an hour, which made it difficult for students to clear their
M
queries in the class due to a lack of timing.
Another issue was informing students about any changes in the

timing of classes. Many students often missed their classes which
extended their course duration to cover the overall course. More-
N
over, the location of the institution was too far from connecting
residential areas, which made it difficult for students to travel
a long distance to attend classes. In such a case, changes in the
schedule of classes and lack of communication lead to dissatisfac-
tion among students. As a result, the management of the institu-
tion started getting a large number of complaints from enrolled
students.
Solution
To overcome these challenges, the management of the institution

decided to implement an online information portal for students.
Students can enroll the portal to access related information. They
can:
access notes, syllabus and study material.
attend classes using video conferencing.

Project Outsourcing 233
n o t e s
posttheir grievances and queries and get feedback from the

concerned department.
enroll in their desired courses.
This implementation of online portal helped the institution to

handle the students in a better way by answering their queries
and resolving their issues.
S
IM
M
N

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learning objectives

> Explain software development outsourcing
> Discuss the implementation of software project
> Explain the project implementation plan
9.1 INTRODUCTION
Software project implementation or deployment is the process of
distributing the software or applications for installation on the tar-
get computers or servers. After the successful testing and debugging
phases of an IT project, the next phase is to deploy it. For example, a
S
website is deployed on the server so that it can be accessed globally.
The purpose of deploying an application is to ensure a simple and

easy installation of application files on a client computer or server. If
IM
a software project is in the implementation phase, it means that the
project is going to be executed. The implementation of the project can
be done at the client’s site or at the organisation’s site who developing
the project.
The organisation developing the project uses its own resources for
M
the implementation of the project. The development process of an IT

project does not provide the actual environment in which the soft-
ware project would be ultimately running. The software, after pass-
ing through all the phases of development, is required to work in the
client’s environment. In other words, the software must run on the
N
machines owned by the client. If it is unable to do so, the client will

refuse to accept the software and, the release of the payment for the
software would be delayed.
When we talk about the implementation of software, it means a sys-

tematic process of transferring the software which was working fine
in a simulated environment to work in an environment for which it is
constructed.
The process of implementing software is not an easy task. Therefore, a

well-developed methodology needs to be adopted during the software
implementation phase. This helps in effectively managing the various
issues that may be encountered in the process. If the implementation
phase is not managed properly, the entire effort made during the de-
velopment and testing of the software project gets wasted.
The following are some points to note about the implementation phase
of a software development project:
The implementation phase of IT projects truly certifies the success
or the failure of the software development process.

n o t e s
The implementation phase is marked by the client by giving the

acceptance certificate of the software on the basis of which the de-
velopment organisation raises an invoice for the release of further
payments.
The implementation phase provides an opportunity to plan for the
release of the resources to be deployed in other projects likely to
start in the near future.
The implementation phase brings its own problems and challeng-
es, and hence this phase provides a lot of learning to software de-
velopers.
The end of the implementation phase provides an opportunity to
evaluate the project in terms of what went right and what went
wrong with the project so that the learning and experiences gained
from the project can be utilised in other projects.
S
The implementation phase is the real test for software profession-
als as they have to use their skills to ensure that all tasks or actions
related to the phase are completed smoothly. It is the most crucial
IM
and difficult phase of the project.
After the successful completion of the implementation phase, project

auditing and closure is done.
This chapter begins by discussing the implementation of software

projects. It then explains the implementation objectives of IT projects
M
and the role and importance of the implementation plan. In addition,

you learn about the various challenges and issues software develop-
ers encounter in the implementation phase of software development.
Towards the end of the chapter, you learn the three techniques of the
N
implementation phase.
SOFTWARE DEVELOPMENT
9.2
OUTSOURCING
In this section, we will discuss outsourcing of software development
and the practices that are being currently observed in this realm.
Let us begin by understanding the term outsourcing. Outsourcing re-

fers to a process wherein an organisation or individual hires another
organisation or individual under contract to produce a certain prod-
uct or service. For example, an IT company is into the process of soft-
ware development, and the project now requires a small module to be
developed in Pro*C language. The IT company does not have software
developers who have worked in Pro*C language before. For this, the
company contacts another company whose core expertise is working
in Pro*C. They enter into a contract to develop the required module
on mutually agreed terms and conditions, deadline, and remunera-
tion. Thus a work is outsourced.

n o t e s
Now, we will try to understand why outsourcing is so common in the

IT industry. The following are the reasons behind it:
Outsourcing saves cost to the company. For instance, in the above
example, if the company was required to develop the module in
Pro*C on its own, it would first have to acquire the software, then
train its developers, and then the work would start on the module.
This would be time consuming as well as would involve cost con-
siderations. By outsourcing, this company has only saved a suffi-
cient amount of time and money for itself.
As mentioned several times, IT industry is dynamic; and hence,
one never knows what type of requirement might suddenly sur-
face in the new project. The best possible way is to get the work
done through the companies that are experienced in dealing out of
such situations. Since the cost of maintaining resources is high as
S
well, so why not outsource.
Outsourcing also lowers software development cost by contract-
ing with the countries where labour is cheap. For example, if a
IMDBA from India is required to provide support to a project team
in the US, it will be cheaper for the project owner than seeking
the services of an American DBA as the latter will charge more on
account of the strict rules of employment enforced in the US. For
this reason, US IT companies are outsourcing most of their project
works to India or other countries where the cost of doing software
development work is relatively less.
M
In some countries, such as the US, the government provides tax

benefits to companies if they outsource the work to the countries
where the labour cost is less. For example, during the Recession
days, India witnessed tremendous boom in its IT industry.
N
Figure 9.1 shows various drivers of outsourcing, that is, why outsourc-
ing is important:
Figure 9.1: Drivers of Outsourcing

Source: http://www.isaca.org/Journal/archives/2005/
Volume-5/Pages/Outsourcing-A-Risk-Management-Perspective1.aspx

n o t e s
9.2.1 BEGINNING OF OUTSOURCING
The word outsourcing can be viewed as composed of two words –

outside resourcing – which when translated means to utilize exter-
nal resources and their expertise to perform a certain task that the
organisation is presently unable to do due to several factors, such as
resource crunch, lack of experts, to save on the cost to do the work,
etc. The word outsourcing dates back to the year 1981, although the
function similar to what is performed in outsourcing was already pres-
ent in the trades of agriculture and assembly line earlier. However,
this phenomenon saw great shift of focus with the advent of IT field.
Coming back to the phenomenon of IT outsourcing, the year 1990

saw the emergence of outsourcing industry. The first evidence of out-
sourcing can be found in the reference to global airlines that started
outsourcing most of their software development work to India after
S
realizing the benefits of cheap availability of IT software developers
here. With the passage of time, India became a popular choice for out-
sourcing IT-related services.
IM
With boom in IT technology and advancements in telecom and Internet
services, the IT outsourced projects generated huge profits for the com-
panies; and thus, they opened their own development centres across
several cities to cater to the needs of the project as well as of the client
that was providing quality products and services at a very low cost.
M
9.2.2 TYPES OF OUTSOURCING
There are various types of outsourcing that are common to IT proj-

ects:
N
Maintenance outsourcing: In this type of outsourcing model, the

client pays a fixed amount to the organisation for a defined time-
frame. The outsourced company is required to attend to the prob-
lems and issues that may arise from the day–to-day operations of
the software under the maintenance contract. For example, fixing
of defects or tuning database for query optimisation. In this con-
tract, no change in the requirement of the software is carried out.
In case the client wants some change in the functionality of the
software, a separate process is required for which the marketer
and the technical head get involved to work out the commercials
and timeframe required to incorporate the change.
Fixed bid outsourcing: This is an outsourcing model whereby
the client pays a fixed amount of money for the task to be done in
a definite timeframe. In this type of outsourcing, major require-
ments are fixed under the statement of work and SRS document,
and minor changes in requirements are allowed. The project man-
agement is under the control of the organisation to which the work
has been outsourced. Development of new software for a govern-
ment-owned telecom company is a fixed bid outsourcing model.

n o t e s
Lab-on-hire outsourcing: This is an outsourcing model whereby

the client utilizes the facilities such as desktops, servers, and soft-
ware developers for a particular project for a limited period. The
project management is with the client, and the developers of the
outsourced organisation work as team members under the project
manager of the client.
Service-level outsourcing: This is an outsourcing model whereby
the work related to the maintenance of computer machines, such
as desktops, laptops, etc., is done by the outsourced company. Each
hardware component that is utilised is covered in a Service-Level
Agreement (SLA).
Time and materials outsourcing: This is an outsourcing model
whereby the terms and conditions related to the payment part are
dependent upon time and the type of task that is performed on the
S
software. An example of this type includes any changes to the de-
veloped software due to changes in business processes.
Business process outsourcing: This is an outsourcing model
IM
whereby an organisation entirely outsources its business opera-
tions to another company by deploying IT resources to manage
day-to-day operations. Major foreign insurance companies have
outsourced their business processes to India.
Knowledge process outsourcing: This is an outsourcing model
whereby the people possessing specialised knowledge, such as ad-
M
vocates, doctors, professors, etc., provide their knowledge to re-

solve the queries of the customers. It is similar to business process
outsourcing and, hence, widely uses information technology.
Onsite-offshore outsourcing model: This is an outsourcing model
N
whereby a part of the team is working at the client’s site and the
rest of the team is working at the development centre. Most of the
projects follow this type of outsourcing.
9.2.3 CHALLENGES IN OUTSOURCING
There are various challenges and issues that are encountered in an

outsourcing process. They are:
The issue of quality: This is the greatest issue that is observed
when IT projects are outsourced. For example, the client wants
the product up to the mark of quality he or she has fixed, but the
outsourced organisation prefers to work in the manner as it deems
fit. Such an attitude results in the delivered product being of poor
quality or project failure in the worst case.
The issue of communication gap: This is another great challenge
that is encountered by project managers at outsourced units. For
example, during discussions with the client, a software developer
puts forth a problem or query to the client, and the client sits silent
on the issue for a long time; and hence, the project is delayed.

n o t e s
The issue of transparency: Usually, outsourced parties prefer to

do the work in their own way. By this, they end up violating some
conditions of the contract. In other extreme cases, they even ma-
nipulate the contract to suit their own purpose.
Weak relationship between the project manager and organisa-
tion: As is mostly observed, external project managers do the work
within the scope of the contract or agreed terms and do not per-
form any work that is not a part of the contract. Worth mentioning
is the fact that an IT industry works with variations; and hence,
problems are bound to escalate. For example, if an organisation
outsources the work of database administration during the admin-
istration process, it demoralises the organisation’s own database
administration leading to a slowdown in their performance.
The project manager has little knowledge about organisational
S
culture and processes: This is another challenge that organisa-
tions must overcome. Project managers usually show little interest
in understanding the structure and culture of the outsourcing or-
ganisation and try to do things in their own manner, thus posing
IM
problems for the project-owning organisation.
Resistance from within the organisation: In most cases, it has
been observed that the people within the organisation develop
a feeling of animosity and will try to resist the changes brought
about by outsourcing the work.
M
For a project of longer duration, risk increases by outsourcing

the work: This is another challenge that organisations are required
to overcome due to the fact that a risk gets compounded when the
duration of the project is long and most of the project work is out-
sourced. This happens because the outsourced organisation tries
N
to gain control over the outsourcing organisation thinking since

they are doing the work, they have no responsibility or account-
ability to the organisation that has outsourced the work. They are
accountable to their parent organisation only.
Access-sensitive information: Outsourcing organisations must
clearly define the restricted areas and access mechanism so that
any confidential information is not leaked out to other organisa-
tions.
Managing the outsourced work and communicating with the
outsourced team members are not easy: The outsourcing and
outsourced parties are legally bound by certain terms and condi-
tions of the project under contract. Hence, they both must be wary
that no information of either organisation, which is not necessary
for the project, is extracted or tried to be stolen by each other, for
it may have disastrous effects.

n o t e s
1. Outsourcing increases software development cost by

contracting with the countries where labour is cheap.
(True/False)
2. It is not necessary to define the restricted areas and
access mechanism by outsourcing organisations so that
any confidential information is not leaked out to other
organisations. (True/False)
3. ________________refers to a process wherein an organisation
or individual hires another organisation or individual under
contract to produce a certain product or service.
4. Outsourcing also _________ software development cost by
____________ with the countries where labour is cheap.
S
5. In a ______________model an organisation entirely outsources
its business operations to another company.
IM
6. In a ___________ model whereby the people possessing
specialised knowledge, such as advocates, doctors, professors,
etc., provide their knowledge to resolve the queries of the
customers.
Activity
M
Find out at list 10 BPO and KPO related to software domain.
Implementation PLan of Software

N
9.3
Projects
As mentioned earlier, implementation is the process of transporting
the software from the developer organisation to the client organisa-
tion. In other words, it means preparing the software so that it can
move from the development phase to the production phase. This re-
quires the following tasks to be performed:
Preparing the hardware and software as per the specifications of
the environment in which the project is required to run.
Taking the backup of the project’s database and that of the project
as a whole from the central repository and then creating the same
environment on the client’s machine. This is the most crucial as-
pect as the components of the project may not be compatible and
the developer may take time to understand the problem and then
resolve them.

n o t e s
Preparing the acceptance test plan and the test cases on the basis
of which the client will test the software and then provide the ac-
ceptance certificate.
Preparing the team members with respect to the tasks allocated to
them and the work they are required to do in the implementation
phase. Further, if the client is located at a foreign location, then the
developer’s organisation would take care of issues related to the
travel plans, documents, and logistics of the team members.
9.3.1 Setting the Implementation Objectives

of an IT Project
After discussing the basic importance and utility of the implementa-

tion phase of a software development project, let us now understand
the objectives of the implementation phase of an IT project. These
S
objectives can be listed as follows:
Getting the final sign off and acceptance certificate, which will en-
sure the release of the remainder of the payment of the software
IM
project
Developing customer relationship with the client and exploring
possibilities for repeat orders
Striving for delivery of defect free software to the client.
Ensuring that minimum delay in the implementation schedule
M
is observed so as to reduce the implementation cost. This issue

becomes critical when the team is posted at an international site
where the cost of accommodating them is quite high and currency
fluctuations are frequent.
N
Ensuring that the project manager is able to stick to the agreed set
of requirements till the implementation phase; otherwise, the cli-
ent will ask the project manager to implement those requirements
in the software. This results in requirements creep and the conse-
quent escalation of costs in the project.
Resolving the issues of the project team as well as the client. This
is very important for the project manager as there should be no
barrier in the communication or interaction between the develop-
ment team and the client or its team members.
To capture the learning of the implementation phase and share it
with other team members so that the experience can be utilised in
future projects.
Figure 9.2 shows a summarised version of the preceding points of the

implementation phase:

n o t e s
People
• Attract, retain and develop the best talent
Integrity
• Gain customer satisfaction through respect, honesty and trust
Quality
• Provide the best quality of projects
Innovation
• Show commitment to excellence through innovative thinking
Accountability
• Acknowledge and assume reponsibility for decisions and obligations
S
Figure 9.2: Displaying the Objectives of the
Implementation Phase of an IT Project
IM
9.3.2 Role and Importance of the Implementation
Plan
The implementation plan is a roadmap depicting the activities that

are required to be executed during the implementation phase of the
project along with the timelines and the resources required to imple-
M
ment those activities.
Let us take an example of an implementation plan of an IT project,

which is under implementation phase. It is a multisite telecom project
that is required to be implemented at five places. The implementation
N
plan for the project is shown in Table 9.1:
Table 9.1: Displaying the Implementation Plan

Sr. Site Activity Start Date End Date Number
No. of people
required
1. Site A, Cen- Facility prepara- 1st Jan, 2015 30th June, 2015 10
tral Site tion
2. Server room 1st Jan, 2015 28th Feb, 2015 2

preparation
3. Electrical fittings 28th Feb, 2015 20th Mar, 2015 5
4. Server installation 20th Mar, 2015 5th April, 2015 2
5. Server testing 5th April, 2015 20th May, 2015 2
6. Database creation 20th May, 2015 30th June, 2015 4
7. Software installa- 1st June 2015 30th June, 2015 10

tion (including ac-
ceptance testing)

n o t e s
Table 9.1 provides a glimpse of the implementation plan. From the

table, it is evident that the details covered are those of macro level
only for the main site. In reality, an implementation plan is quite com-
prehensive and covers minute details for all the sites. For example,
the implementation plan may depict the micro level details of software
installation, including the following:
Software installation
Installation of the request registration module
Testing of the request registration module
Installation of the fault repair module
Testing of the fault repair module
Let us now discuss the role and importance of the project implemen-
S
tation plan.
9.3.2 ROLE and Imporance of the implementation

PLAN
IM
The implementation plan plays a very important role in the imple-
mentation of a project. The role of the implementation plan can be
understood through the following points:
It provides guidelines to all the stakeholders of the project.
M
It brings transparency to the project’s implementation process

mechanism. In other words, various stakeholders know the cur-
rent status of the project and know what the issues are as well as
other requirements are in terms of resources, funds, etc.
N
Itprovides a tracking mechanism to the executive management,

the client, and the project managers so that effective control mea-
sures can be deployed to ensure that the implementation phase
goes on uninterrupted.
Itlets the manager decide the most feasible path to take to ensure
that the project gets completed on time.
It provides a bridging mechanism for the client and the develop-
er to monitor the implementation process as per the implementa-
tion plan. In other words, it provides a communication mechanism
for the client to remain informed about the various activities per-
formed in the implementation process.
The following points depict the importance of the implementation

plan:
The most important aspect of the implementation plan is that it
allows the client to have sufficient control of the project during
the last stage of the development cycle. For example, the imple-

n o t e s
mentation plan depicts the acceptance testing phase, which allows

the partial control of the project. Prior to this stage of the project,
the client is involved in discussions and negotiations only but was
never allowed to have the control of the software to know how it
will perform in reality.
This implementation plan helps the client to know the areas in
which the developers, DBAs, testers, etc., would actually be work-
ing on with respect to the client’s infrastructural facilities such as
server, network, etc. Plans that were made earlier were used to de-
pict the development activities at the developer’s site only, but the
implementation plan necessarily depicts the usage of the client’s
infrastructure by the developer organisation.
The implementation plan also provides the scope of the work that
the development team members are likely to undertake. For exam-
S
ple, in Table 9.1, the server room activity determines exactly the
scope of the work to be carried out in that room.
The implementation plan provides both the client and the devel-
IM
oper organisation a platform from where the developer will trans-
fer the control of the software and the supporting functions to the
client.
The implementation plan depicts the induction of the key players
from the client site. These players are entrusted with the job of ver-
ifying and validating the software requirements. This is in sharp
M
contrast to the initial stages of the project, where the key players
from the developer’s side get involved to give shape to the project
nuances; in the end, however, it is the client’s key players that get
involved through a team work. For example, during the project’s
finalisation process, the CEO, Chief Technical Officer (CTO), and
N
Chief Financial Officer (CFO) from the developer organisation get

involved so as to ensure that the project is materialised whereas
in the implementation phase, the client’s key players get into the
picture to check whether the project is developed per the decided
specifications.
9.3.3 Contents of the Project Implementation

Plan
Having understood the role and importance of the project implemen-

tation plan, let us discuss the contents of the plan. Due to the nature
of the IT projects, the implementation plan of these projects does not
have a fixed structure. This is because IT projects having their own
characteristics and features, and it is these which guide the imple-
mentation process. For example, if it is a single site project, its im-
plementation plan would be different from that of a multisite project.
However, irrespective of the nature of the project, all projects share
some common features or content related to the project implementa-
tion plan. These can be listed as follows:

n o t e s
Purpose: Defining the purpose of the implementation plan sets

the direction with respect to what is required to be achieved in the
implementation process.
System description: It describes the different aspects related to
the system or the complete project. The purpose of this section is
to let the client know the details of the system and how it is going
to be implemented.
Assumptions, dependencies and constraints: These are invari-
ably a part and parcel of every project. The assumptions, depen-
dencies and constraints in the project implementation phase let
the client know the areas where the implementation process might
be hindered.
Client point of contact: This section of the implementation plan
provides information about the client in case it has to be contacted
S
for any issues and challenges that are likely to occur in the imple-
mentation phase.
Major tasks during implementation: This section depicts the sig-
IM
nificant tasks that need to be performed in the implementation
phase, for example, setting up of the hardware at the client site.
Implementation schedule: This denotes the schedule of the im-
plementation phase. In other words, this provides details about
the schedule, including the time, of all the tasks or activities that
are to be completed in the implementation phase.
M
Safety, security and privacy: This section focuses on the plan

which comprises the rules related to the safety, security and priva-
cy of the client’s and developer’s assets.
N
Facility management: This section focuses on aspects related to

the facilities provided by the client during the implementation
phase.
Implementation requirements by sites: This section provides the
schedule for all the requirements of the various sites of the project
covered under the implementation process.
Risk and contingencies by site: This section deals with the vari-
ous risks and complexities involved in the site where the project is
required to be implemented.
Verification and validation for site: This section deals with differ-
ent aspects related to the verification and validation process of the
sites where the project is to be implemented.
Acceptance criterion: This is the most important section of the
implementation program. Here, the acceptance process of the soft-
ware by the client is documented.
Figure 9.3 shows the implementation plan of an IT project of an or-

ganisation:

n o t e s
Phase 1: Analysis, Design and Development Phase 2: Development and Operation
Project Management
Project and Training Test Plan and Test Test and Golive
Plan Cases Plan
Analysis Design Development Deployment Operation
Functional Requirement Functional Specification Technical and User

Document Document Documentation
Support
Change Request Management
Project Start 30 Days 60 Days 90 Days 120 Days
S
Figure 9.3: Depiction of the Implementation Plan for an IT Project
After understanding the various aspects related to the project imple-

mentation process, let us now discuss the challenges faced in the im-
IM
plementation phase.
9.3.4 Challenges and Issues in the

Implementation PLAN
Any challenge or issue may appear in any phase of the software de-
M
velopment life cycle. These challenges and issues must be adequately

addressed for the successful development of a project. A big challenge
encountered by a project manager in the implementation phase is
management of the team and the client, as well as executive manage-
ment of the developer organisation. In fact, during the implementa-
N
tion phase, the tendency of the client is to make the developer organ-
isation work as hard as possible and implement minor changes in the
software. Occasionally, the client may call in the quality or a functional
expert to have a look at the software and give his/her opinion about the
interface and functionality of the software, and recommend changes,
if required.
Another challenge managers and developers may face is about the

compatibility of the hardware or the Operating System (OS) at the cli-
ent’s end. The software that was working without any problems at the
developer’s site may fail when installed at the client site because of the
incompatibility of the hardware or OS. Managers may face challenges
with regard to logistics support and the setting up of the workstation
for the developer(s) at the client’s end. This results in wastage of time
and often causes avoidable delays in the implementation phase.
Project managers may also find it difficult to ask for time from the cli-
ent. For example, suppose an issue crops up, and the client represen-
tative is not authorised to take any decision. In this case, the represen-
tative has to wait for the person in authority to discuss the issue. This

n o t e s
person may be too busy to discuss the issue with the representative,
as a result of which the implementation schedule may be delayed. As
mentioned earlier, managing team members is also a challenge that
project managers face routinely. For example, team members may be
placed at a site or sites where parallel implementation is going on.
In such a case, a representative at site 1 may have implemented the
software and is running fine while the representative at site 2 may be
unable to get the software up and running even though he/she has fol-
lowed the same steps for the implementation of the software project.
The other issue that managers usually face during the implementation
phase is related to the usage of the client’s data to which they cannot
make any changes as they are guided by the security and safety poli-
cies of the data. Thus, they either have to create the data themselves,
in which case it will take time, or they have to seek permission to use
S
the data and check the software as a part of the testing process.
Managers also face challenges while dealing with vendors required

supplying components such as desktops, laptops, servers, etc., need-
IM
ed for the development and implementing the software project. If the
components cannot be used with the software, it leads to further loss
of time.
Managers may also face challenges while dealing with the internal
politics of the team members and the client. The problem gets com-
pounded when one client provides suggestion or tries to resolve a que-
M
ry while the other client tries to delay, thwart, and manipulate things
to its advantage. Apart from this, managers have to deal with the chal-
lenge of balancing time, cost, and quality and scope creep of the proj-
ect during the implementation process.
N
7. The development process of an IT project provides the actual

environment in which the software project would be ultimately
running. (True/False)
8. Implementation plan brings _________________ to the project’s
implementation process mechanism.
9. Managers may also face challenges while dealing with the
internal politics of the team members and the client. (True/
False)
10. Which of the following is the most important section of
implementation program?
a. Acceptance criterion
b. Verification and validation for site
c. Implementation requirements by sites
d. Facility management

n o t e s
Activity
Research on implementation phase of an IT project and present

your findings in a short note.
9.4 Project Implementation

Project implementation is all about putting the project into practice.
In other words, installing or delivering the information system that
was developed or purchased. The first step in project implementation
is to test the information system against its functions. It is done to en-
sure that the information system is working as per the client’s expec-
tations. For this, an organisation requires a systematic approach to the
implementation of an information system. Any mistakes at the project
S
implementation level can lead to project failure and incur heavy costs
for an organisation. Therefore, it is of utmost importance for an organ-
isation to select an appropriate approach for implementing a project.
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The selection of an approach for the implementation of an information
system requires thoughtful consideration and careful supervision. An
approach is selected based on system requirements. There are three
main tactical approaches used in project implementation at the cli-
ent’s end. They are:
Direct cutover
M
Parallel
Phased
Let’s discuss about each in detail.

N
9.4.1 Direct Cutover
In the direct cutover approach, the old system is replaced with a new
one. The developer and the client get agreed on a particular date for
replacing the old system. Figure 9.4 shows the working of the direct
cutover approach:
Target date
Old system
New system
Figure 9.4: Direct Cutover Approach

n o t e s
The direct cutover approach is generally adopted in emergency sit-

uations when a client organisation cannot operate with the old sys-
tem and the replacement has to be done as early as possible. In other
words, this approach is appropriate in case of failure of the old system
or the old system is not critical for a mission. Irrespective of the aim,
it is crucial to thoroughly test the new system and ensure its proper
functioning.
Besides some advantages of using the direct cutover approach, there

are some disadvantages of it which makes it the least favoured ap-
proach in some situations. One must keep it in mind that there is no
roll back in this approach which means if the old system is replaced
then it cannot be implemented again. In addition, sometimes a new
system does not work effectively which leads to client dissatisfaction
and the loss of revenue. Therefore, there is a great pressure on the
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team implementing the new system as they have to make sure that
everything is functioning properly.
9.4.2 Parallel
IM
In the parallel approach, the old system and the new system run con-
currently for a particular period of time. After some time, the new sys-
tem totally replaces the old system. Figure 9.5 shows how the parallel
approach works:
M
Target date
Old system
N
New system
Figure 9.5: Parallel Approach
The parallel approach is useful when the sudden replacement of the

old system may prove fatal for an organisation. For example, an or-
ganisation wants to implement some new features in their existing
payroll software. The organisation implements the new system but
will run both the systems concurrently to view and compare the out-
put of both, so that the organisation can ensure that the new system
with some additional features is working efficiently before completely
relying on it.
As compared to the direct cutover approach, the parallel approach is

easier to adopt for the implementation team but a bit difficult for the

n o t e s
user. This is because the user of the new system has to enter the data
for both the old and the new system and compare the output provided
by both the systems. If the new system is working as expected, the
extra workload comes on the newly developed system. Such workload
is generally put till its schedule date when the system is expected to
work independently. If the new system encounters some unexpected
problem due to the workload, its date of working alone can be pushed
further. After resolving the encountered problem, the new system re-
places the old system and works independently.
9.4.3 Phased
In the phased approach, a project is implemented in phases or incre-

mentally. This implies that some modules of the project are imple-
mented before the other modules at the client’s end. The working of
S
the phased approach of project implementation is shown in Figure 9.6:
Target date Target date Target date

IM
Old system
M
New system
Phase 1 Phase 2 Phase 3

N
Figure 9.6: Phased Approach
The phased approach is advantageous when a software project needs

to be implemented in different areas of an organisation. For example,
an organisation wants to update operating systems used by employ-
ees. Then, the organisation can do so in phases by fixing an appropri-
ate date for each department to upgrade the operating system. The
advantage of the phased approach is that the team can learn from its
past experience of deploying a module and can use that experience in
implementing other modules of the project smoothly.
Although the phased approach takes longer time in implementation

in comparison to direct cutover approach, the risk involved in the
phased approach is less and manageable. Moreover, in the phased
approach, if problems occur in the early implementation phase of a
module, the dates of implementation of other modules needs to be
rescheduled. Delays in project implementation may lead to extra cost
and time which are unpaid by the client. Moreover, the client always
remains concerned whether the time and money spent on project im-
plementation will give the required benefits.

n o t e s
11. In which approach the old system is shut down and the new
system is turned on?
a. Direct cutover b. Parallel
c. Phased d. All of the above
12. ________________may also be appropriate when the system is
not mission critical.
13. The parallel approach to implementation allows the old and
the new systems to run concurrently for a time. (True/False)
14. The ____________ approach is appropriate when problems
or the failure of the system can have a major impact on the
organisation.
S
Activity
IM
Discuss the advantages and disadvantages of the parallel approach.
9.5 Summary
Software project implementation or deployment is the process of
distributing the software or applications for installation on the tar-
M
get computers or servers.

After the successful testing and debugging phases of an IT project,
the next phase is to deploy it.
N
The purpose of deploying an application is to ensure a simple and

easy installation of application files on a client computer or server.
The software, after passing through all the phases of development,
is required to work in the client’s environment.
When we talk about the implementation of software, it means a
systematic process of transferring the software which was working
fine in a simulated environment to work in an environment for
which it is constructed.
If the implementation phase is not managed properly, the entire
effort made during the development and testing of the software
project gets wasted.
The direct cutover approach is an approach where the old system
is shut down and the new system is turned on.
The direct cutover approach can be effective when quick delivery
of the new system is critical or when the existing system is so poor
that it must be replaced as soon as possible.

n o t e s
The parallel approach to implementation allows the old and the

new systems to run concurrently for a time.
The parallel approach is appropriate when problems or the failure
of the system can have a major impact on the organisation.
In phased approach, the system is introduced in modules or in dif-
ferent parts of the organisation incrementally.
key words
Direct cutover approach: It refers to an approach where the

old system is shut down and the new system is turned on.
Parallel approach: It refers to an approach that allows the old
and the new systems to run concurrently for a time.
Phased approach: It refers to an approach in which the system
S
is introduced in modules or in different parts of the organisa-
tion incrementally.
IM
1. What is outsourcing? Explain different types of outsourcing.
2. Compare between the three techniques of project implementation.
3. Discuss the role and importance of implementation plan.
M
4. Explain the contents of the project implementation plan.

5. List the challenges and issues in the implementation phase.
6. List the points to be kept in mind while setting the implementation
N
objectives.
7. Describe the Direct Cutover approach of project implementation.

Software Development Out- 1. False
sourcing
2. False
3. Outsourcing
4. Lowers, contracting
5. Business process outsourcing
6. Knowledge process outsourc-
ing

n o t e s

Implementation Plan of Software 7. False
Projects
8. Transparency
9. True
10. The correct option is a.
Project Implementation 11. The correct option is a.
12. Direct cutover
13. True
14. Parallel
Hints for Descriptive Questions

1. Outsourcing refers to a process wherein an organisation or
S
individual hires another organisation or individual under
contract to produce a certain product or service. There are
various types of outsourcing that are common to IT projects:
IM
maintenance outsourcing, fixed bid outsourcing, lab-on-hire
outsourcing, service-level outsourcing, time and materials
outsourcing, business process outsourcing, knowledge process
outsourcing, and onsite-offshore outsourcing model. Refer to
Section 9.2 Software Development Outsourcing.
2. After discussing the basic importance and utility of the
M
implementation phase of a software development project, let

us now understand the objectives of the implementation phase
of an IT project. Refer to Section 9.3 Implementation Plan of
Software Projects.
N
3. The implementation plan is a roadmap depicting the activities

that are required to be executed during the implementation
phase of the project along with the timelines and the resources
required to implement those activities. Refer to Section
9.3 Implementation Plan of Software Projects.
4. However, irrespective of the nature of the project, all projects
share some common features or content related to the project
implementation plan. Refer to Section 9.3 Implementation Plan
of Software Projects.
5. Any challenge or issue may appear in any phase of the software
development life cycle. Refer to Section 9.3 Implementation
Plan of Software Projects
6. In general, the project team can take one of three approaches
for implementing the information system. These approaches
include (1) direct cutover, (2) parallel, and (3) phased. Refer to
Section 9.4 Project Implementation.

n o t e s
7. The direct cutover approach is generally adopted in emergency

situations when a client organisation cannot operate with the old
system and the replacement has to be done as early as possible.
Refer to Section 9.4 Project Implementation.
Suggested Readings
Kerzner, H. (2001). Project management. New York: John Wiley.
Field, M., & Keller, L. (1998). Project management. London: Inter-
national Thomson Business Press.
Heerkens, Gary. (2002) Project management. New York: Mc-
Graw-Hill.
S
E-References
www2.cdc.gov, (2015). PMG | Implementation Phase. Retrieved
IM
22 July 2015, from http://www2.cdc.gov/cdcup/library/pmg/imple-
mentation/
pmi.org, ‘Project Management Training for Your Organization |
Project Management Institute’, 2015. Web. 24 July 2015.
M
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C h
10 a p t e r
IT Project Closure Management
CONTENTS
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10.1 Introduction
10.2 Administrative Closure
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10.2.1 Project Sponsor Acceptance
10.2.2 Final Project Report
10.2.3 Final Meeting and Presentation
10.2.4 Closing the Project
Activity
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10.3 Project Evaluation

10.3.1 Individual Performance Review
10.3.2 Post-mortem Review
10.3.3 Project Audit
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10.3.4 Project Success Evaluation – The MOV

Activity
10.4 Summary

n o t e s
Closing Projects At Global Green Books

Publishing
With time, Global Green Books Publishing is growing and gaining

height in the business. Presently, the need for customised eBooks
has grown and Green Books Publishing has a lot of experience
in eBook projects. The company completed its first eBook for a
local college and post that it started receiving contracts from new
customers. As the previous eBook projects were functioning well
and clients were happy with the results; therefore, the new orders
were received from previous clients as well as the new clients de-
cided to approach Global Green Books for their eBook produc-
tion needs.
S
However, as and when the new projects popped in, various types
of problems faced to ensure the successful closure of the projects.
Some of the team members involved in the new projects and their
manager, Samantha, discussed how the problems were the same
IM
that they solved in the past projects while working with super-
visors. To ensure successful and quick closure of new projects,
the manager and the team decided to look into the final project
reports of the previously successfully closed projects.
The final project reports were submitted by Samantha after the

M
closure of the previous projects. Such reports were used by super-

visors to track the actual effort and costs and convert that infor-
mation over to cost accounting for billing purposes. For the new
projects, Samantha and colleagues decided to look into the his-
torical data to resolve their problems faced in the new ventures.
N
Also, the historical data, stored in the previous project delivera-

bles or documents, was used to develop estimates for new ven-
tures or projects as requests for new eBooks were coming from
the customers.
Moreover, the PMO team discussed to make certain changes to

the PM manual and conduct a short training of supervisors to in-
corporate certain enhancements to their project completion pro-
cesses. They thought of changing their standard job template to
include these additions:
A planned job for supervisors to ensure successful project clo-
sure
A report defining the lessons learnt from the project so that
the learning can be implemented while working on new proj-
ects
Mark the project closure with a celebration with the team,
manager and other stakeholders of the project

IT Project Closure Management 257
n o t e s
The management team at the publishing house realised that it

was important to start capturing lessons learned from the proj-
ects. Such information could be collated by the supervisors at the
project closure or it would encourage supervisors to plan, sched-
ule and conduct the project closure meeting with team members
in order to appreciate them. Moreover, the information associat-
ed with the learning from the project could be captured from the
team. In the project closure meeting, the feedback from various
stakeholders should be welcomed and the customer service rep-
resentatives or managers should be invited.
These suggestions for changes were appreciated by the supervi-

sors mainly because the close-out meeting or team celebration
would bring a chance to recognise and reward team members and
would serve to motivate teams for future projects. With time, the
S
PMO started taking initiatives to collect the lessons learnt from
many projects.
IM
According to this caselet, you came across the importance of the
documentation done in the project closure phase. Also, you learnt
why it is important to close a project and what the managers can
accomplish during the closure phase. Moreover, the case study of
the publishing house highlights on the fact that the project les-
sons should be captured as they can serve as historical data for
future projects. Such information can be used by the managers
M
or other stakeholders of the new projects. Also, the benefits of

celebrating the project closure is mentioned as the rewards and
recognition ceremony will serve as the motivating factor for the
team members and managers for future projects.
N

n o t e s
learning objectives

>> Discuss the administrative closure of an IT project
>> Define the elements of a final project report
>> Discuss the concept of final meeting and presentation
>> Examine a project
>> Perform individual performance review
>> Evaluate the success of a project
10.1 INTRODUCTION
S
In the previous chapter, you studied the concept of project outsourc-
ing. In this chapter, you will study about project closure, which is the
last stage of the project management life cycle.
IM
A project manager is generally responsible for announcing a formal
closure of the project and then delivering a report on the overall suc-
cess of the project to the project sponsor and other stakeholders. A
project is considered to be closed once the client approves all its deliv-
erables. However, all projects are not closed under normal conditions.
In such a case, it is necessary to assess whether there is any salvage
M
value and understand why a particular project was not successful.
After the project is closed, the project manager should perform project
evaluation in order to assess and provide feedback to each team mem-
ber on his/her performance in the project. Moreover, project evalua-
N
tion provides insight into lessons learned and best practices that can
be adopted in the organisation for future projects.
In this chapter, you will study the significance of project closure. Af-
ter that, you will study the concept of project evaluation and its four
types, namely individual performance review, post-mortem review,
project audit and project success evaluation based on the MOV.
10.2 Administrative Closure

Generally, the closure of a project or its termination is done under
normal circumstances when all the desired goals and objectives of the
project are fulfilled. The scope of the project is achieved within the
given budget and quality and schedule. In such a case, the project
sponsor is highly elated and the project is closed with a celebration,
awards and recognitions. Under the normal closure of a project, more
projects are offered by the client in future to the organisation. How-
ever, sometimes, a project is also brought to an end under various ad-
verse situations. Some of these situations are:

n o t e s
Premature: Sometimes change in the client’s requirements and

the inability of the organisation to meet those requirements can
lead to calling off the project before normal closure.
Perpetual: Some projects are considered to be taken on a “life or
their own” and are known as either runaway or perpetual proj-
ects. Such projects are the result of the delays or a scope or an
MOV that was not defined clearly during the initial stage of the
project. Further, the attempts are made by the project sponsor to
add various functionalities to the product; thereby, there will be an
increase in the time duration and resources for the closure of the
project. Also, the budget gets affected.
Failed: Sometimes a project fails due to a lack of focus towards
people, techniques and processes of the organisation. Although
the importance of the project is defined in MOV, yet the budget
S
and the schedule fail when costs become higher than the benefits
of the project.
Changed priorities: At times a project can be terminated because
IM
of a change in priorities. It is possible that the finance and resourc-
es of one project are transferred to the other project that has a high
priority. Such a change generally occurs when the importance of
a project is not identified properly during the initial phase of the
project. Therefore, in the long run, the priority changes and the
crucial project are assigned the resources. As a result, the running
project is either closed or put on hold.
M
As mentioned earlier, when a project is closed under normal circum-

stances, it is followed by rewards and recognitions. However, it is actu-
ally not the case. Even under normal situations, the project manager
and the team members may have to face the following realities:
N
Concern of team members for their future employment: It has

been found that as soon as a project is about to close the team
members are worried about their next task. Generally, the team
members are taken from different departments of the organisa-
tion. And post the project completion, the team members will shift
from one project to another. In other words, they will move back to
their previous tasks.
Generally, irrespective of paying attention to the project closure,
the team members start focusing on what they will do next. There-
fore, the team members seek priority to their career; instead of
project closure. As a result, the team members will not focus on the
tasks to be performed to close the project; thereby, project closure
becomes a challenging task.
Bugs still persist: During the testing phase, not all bugs or defects
in the product are closed. Although, testing is an essential and cru-
cial process in a project, but all bugs may not be identified. After
the release of the product or post system implementation, certain
bugs are identified. Such a situation becomes stressful for all proj-

n o t e s
ect stakeholders. Until all the defects or bugs are closed, customer
satisfaction in association with the product is an issue.
Lack of resources: Although all the resources required by the
project are identified at the initial stage, sometimes resources and
time becomes a concern during project closure. In such a situa-
tion, the project manager may find that the required resources for
addressing the challenge or issue of the project are not available.
Therefore, such a situation becomes irritating for the manager and
becomes more aggressive when the management takes a call to cut
or manage the budget of the project.
Lot of documentation: Generally, every project requires a lot of
documentation at various levels such as project stages, system,
training and users. While planning for the project, the time re-
quired to write documents is included in the project plan. Some-
S
times, the task of creating documents is done at the end of the proj-
ect. As and when the project closure approaches, documentation
becomes important. A lot of time is consumed in the completion of
documentation, which becomes a challenge in the project closure.
IM
Mismatch between deadlines and the actual progress: Many a
time a project does not complete within the planned schedule due
to various reasons such as inadequate project management, high
risk associated with the implementation of the project and over-es-
timation. Every project needs some amount of resources and time
for completion. Any sort of misjudgement done while planning re-
M
sults into the difference between the planned and actual project
performance.
Increased level of stress of team members: When deadlines are
not met, an alarm is raised for various project stakeholders. The
N
managers of various departments are stressed whether or not the

project will result in profits or will be able to gain customer sat-
isfaction. The cause of worry of sponsor and customer is wheth-
er the project will be delivered on time. In addition, the project
stakeholders are also stressed whether or not the project will be
successful and therefore the blame will lie on stakeholders. The
tensed work environment reduces the chances of completion of
the project.
Irrespective of the fact whether or not a project closes in a normal

fashion or prematurely, a standard process is followed for project clo-
sure. It is expected from the team to wind up the project in the most
logical manner and after performing a series of steps. From the ad-
ministrator’s perspective, this process ensures that all the loopholes
are tied together for closure.
10.2.1 Project Sponsor Acceptance
During the closure of a project, the acceptance of the project sponsor

for the project is achieved. Generally, it is a myth that if a project is de-

n o t e s
livered, installed, or released, it will be accepted by the project sponsor

or customer. As the acceptance of a project is based on the completion
of the scope of the project and its quality objectives, it becomes the re-
sponsibility of the project manager to ensure that all the deliverables
of the project are completed as per the defined specifications.
Various elements such as documentation, training, and on-going sup-

port should not be added later on in the project, instead should be
included at the early stage of the project. Any negotiations regarding
what should and what should not be the part of the project should not
be done at the later stage of the project as it can result in a situation
where the client holds the payment for the project.
There are generally two types of project sponsors: short-sighted and

knowledgeable. Short-sighted sponsors consider a project as a short-
term buyer-seller relationship wherein the main goal of taking the
S
project is to earn maximum profits. Sometimes, such a relationship
turns out to be adversarial provided the project sponsor tries to re-
negotiate the scope of the project as well as the project cost during
IM
closure. On the other hand, knowledge sponsors feel that they play
a crucial role in the result of the project. Therefore, they will actively
participate in the project and will interrogate tough questions while
conducting a project review. However, their goal is not to embarrass
the team or a manager; instead, they are focused on the successful
closure of the project.
M
Irrespective of the type of project sponsor, the team should realise

that a project will be accepted only if the acceptance criteria is clearly
mentioned during the initial stage of a project. Also, the completion of
documentation or all deliverables of the project on the specified time
N
is essential.
Also, the content to be covered in project deliverables should be clear-

ly mentioned as it is an important factor of project scope management.
Also, the details of the two elements namely, project scope and system
requirements should be exact and complete. Moreover, clear defini-
tion of project scope will ensure that all stakeholders have same ex-
pectations instead of assuming what will or will not be delivered at
project closure.
10.2.2 Final Project Report
Generally, a final project report is created by the project manager and

the team members, which is to be delivered to the project sponsor and
other stakeholders of the project. The goal of creating the report is to
ensure that the project has been completed with the defined outlined
business case and specification mentioned in the plan. Such a report
puts the sponsor in the confident position. Apart from the report, a
presentation is given by any team member or project manager to the
project sponsor and stakeholders.

n o t e s
Prior to the presentation, the report is given to all stakeholders so that

a feedback can be received, which helps in identifying loopholes in
the project. The final project report includes the background history
of the project and various other items such as:
Summary of the project (Description of the project, MOV of the
project, scope, schedule, budget and quality objectives of the proj-
ect)
Comparison of planned result with the actual one (Original history
of the approved changes in the project, original deadlines vs. the
planned scheduled deadline, planned budget vs. the actual bud-
get, test plans and test results, etc.)
Outstanding issues (Expected date of completion of the project,
any further support required)
S
Project documentation list (User manuals, system specifications,
training materials and maintenance documentation)
IM
10.2.3 Final Meeting and Presentation
If a project manager has been able to seek the confidence of the proj-
ect sponsor, the final meeting and presentation have to be arranged.
The benefits of conducting a final meeting are:
Sending a message to the board that the project is closed: The
project manager formally announces the closure of the project in
M
front of key stakeholders available in the meeting. This provides a

sense of closure to all stakeholders.
Transferring the product or the system: Although the implemen-
tation of the product or system at the client’s end is completed, a
N
formal transfer of the product to the organisation is done in this

meeting.
Acknowledging the contribution made by various authorities
and members in the project: A project manager acknowledges
the hard work, dedication, and devotion of the team members and
other key stakeholders in closing the project on time.
Receiving the formal signoff: Lastly, the project sponsor or cus-
tomer formally accepts the product by giving the formal signoff.
The final report is signed by them along with some contractual
documents.
10.2.4 Closing the Project
After the acceptance is received for the project from the sponsor or
customer, various administrative closure processes are to be per-
formed. Preparation of documents needed at the time of closure is
quite challenging. This is because at that time the team members
look forward to the next assignment and they may lose interest at this

n o t e s
stage. However, administrative closure is crucial because after releas-

ing the project, it is necessary that the project manager and the team
wrap up every minute detail of the project, which is cumbersome. The
administrative closure of a project is important as it helps to:
ensure that all deliverables are completed.
take formal acceptance from the project sponsor and the client.
schedule review of the team members involved in the project as
well as the project.
close all the project accounts.
plan a celebration on the successful closure of the project.
S
1. Although the importance of the project is defined
in____________, yet the budget and the schedule fail when
costs become higher than the benefits of the project.
IM
2. Generally, the closure of a project or its termination is done
under normal circumstances when all the desired goals and
objectives of the project are fulfilled. (True/False)
3. The administrative closure includes acceptance from project
sponsor, creating the final project report, and project closure.
(True/False)
M
4. Which one of the following is not the benefit of conducting a

final meeting?
a. Delivering a message that the project is closed
N
b. Passing the funds or details of the project

c. Admiring the efforts of the team involved in the project
d. Receiving the formal signed off
5. Post the closure of the project and receiving the acceptance
from _______________ must be performed.
6. Another important aspect for successful closure of a project
includes involving every team member and project manager
and documenting every minute details. (True/False)
Activity
Suppose you are appointed as the project manager of a website

development project. After a while, you find that the costs of the
project are more than its benefits. You take every measure of con-
trolling the costs but are unable to maintain a normal situation.
Therefore, you have to close the project. What steps will you take to
close the project?

n o t e s
10.3 Project Evaluation

The most important activity during the project closure phase is the
project evaluation. This is because the main cause of worry for every-
one is whether or not the project is closed successfully. Every stake-
holder has a different perspective on the success of a project. The
views of different stakeholders are as follows:
Project team members: They believe that the submission of the
project on time will have a positive impact on the organisation and
give them valuable experience.
Project manager: He/she has a view that a successful closure of a
project leads the organisation to earn profits, which, in turn, will
lead to promotion or increment in his/her salary.
S
Client or project sponsor: He/she believes that post the implemen-
tation of the project, the success of the project will be determined
resulting in the great impact on organisation’s value.
IM
Therefore, project evaluation can be performed in four ways as listed
in Figure 10.1:
Individual Performance Review

M
Post-Mortem Review
Project Audit
N
Project Success Evalution – The MOV
Figure 10.1: Types of Project Evaluation
Let us discuss each of them in detail in the next sections.
10.3.1 INDIVIDUAL PERFORMANCE REVIEW
An individual performance review is conducted by the project manag-

er for each project team member. Every organisation generally has a
set of rules for conducting reviews to get the best results. However, the
following are the points that every project manager must keep in mind
while conducting an individual performance review:
Initiate the review with the evaluation of an individual’s per-
formance: The project manager must evaluate the performance of
an individual team member with genuine intentions. However, be-
ing critical on any concern can make the employee feel offensive.
Therefore, the manager should begin by asking the team member

n o t e s
how he/she rates his/her performance. It is possible that the proj-

ect manager may get critical issues from the member, which can
serve as an opportunity for the manager to carry forward. To avoid
any kind of conflict between the manager and the member, it is of
utmost importance for the project manager to give constructive
feedback to the member on his/her performance.
Avoid comparison of a team member with that of the other:
Comparisons always result into counter effects. For example,
the team member may inculcate the feeling of jealousy; thereby,
finding ways to discredit the person in comparison. The project
manager must remember that each person is unique and possess-
es discrete qualities. The fact is that no one is perfect; however,
identifying the areas of improvement is important. Therefore, the
manager and the team member should seek consent of each other
on the improvement areas. Moreover, they should agree upon how
S
improvement in the team member will result in the growth of the
organisation.
Focus on the behaviour or actions instead of the individual: The
IM
project manager must remember that if the areas of improvement
are discussed, focus should be laid on a few behaviours of the mem-
ber as an example. To better understand it let us take an example.
Suppose a team member has a habit of reaching late which makes
him/her unable to attend team meetings. In such a scenario, the
manager should not ask blunt questions like what is the reason for
M
his/her laziness. Instead, the project manager can politely convey

to the team member that getting late and not attending can affect
their career growth. Such a methodology will surely help the team
member to improve the aspect of getting late for the office.
N
10.3.2 POST-MORTEM REVIEW
After creating the final project report and delivering the presentation,
the project manager and the project team should go for a post-mortem
review of the project. This review should be conducted prior the team
gets released from the current project. This is because it becomes
cumbersome to let the people participate post they get engaged in the
other projects or they are no longer working for the organisation. In
addition, with time the team may forget the aspects related to the cur-
rent project. The main objective or focus areas of the post-mortem
review are as follows:
Analyse the MOV of the initial project. A few questions need to be
answered such as whether or not the MOV of the project was clear-
ly defined and agreed upon by the sponsor or customer. In addi-
tion, the project manager must ensure whether or not any change
was incorporated in the project. Also, he/she must consider what
the chances are that the project scope is achieved.

n o t e s
Analyse the project from various aspects such as scope, schedule,

budget, and quality objectives. The project manager must answer
How well the project scope defined in the document?
Did the scope of the project change during the course of time?
What is the effectiveness of the scope management processes?
Was the actual deadline and project cost identical to the
planned or scheduled one?
Were the quality objectives laid during the initial phase of the
project met?
Analyse every project deliverable and answer the following ques-
S
tions:
How effective were the business case, the project charter, the
project plan?
IM
How can the manager or team members improvise these de-
liverables?
Analyse various project plans and Project Management Body of
Knowledge (PMBOK®) areas. The effectiveness of the project
should be reviewed in the following areas:
M
Project integration management

Project scope management
Project time management
N
Project cost management

Project quality management
Project human resources management
Project communications management
Project risk management
Project procurement management
Organisational change management
Project implementation
The conclusion of the post-mortem review should also be documented

as other reviews. The project manager as well as the team should get
to know the best areas of the project. In addition, the best practices
should be identified and become the part of the IT project methodol-
ogy of the organisation.

n o t e s
10.3.3 Project Audit
The internal working of the project is analysed with the help of indi-
vidual performance and post-mortem reviews. As discussed earlier,
these reviews are conducted between the project manager and the
team. To get a narrower perspective on the project, the audit should
be done by an external party along with the internal team. The inter-
nal audit team comprises the project manager, the project team, proj-
ect sponsor and other key project stakeholders. This helps in identify-
ing problems, issues or scope of improvement.
As suggested by Gray and Larson in 2000, the depth of the audit is de-
pendent on the size of the organisation, the importance and size of the
project, risks involved and the problems encountered while working
on the project.
S
The external party should:
not have the direct engagement or interest in the project
be honoured and seen as impartial and fair
IM
have interest in listening
not have fear of recrimination from special interests
perform in the benefit of the organization
have sufficient interest in containing project or industry experi-
M
ence
be able to document the results of the project audit along with
learning and best practices.
N
10.3.4 Project Success EVALUATION – The MOV
The MOV, short form of measurable organisation value, is introduced

at the beginning of the project. It provides the base for getting hold
on the project and supports many decision points throughout the life
cycle of the project. Generally, at end of the project, the MOV cannot
be identified.
As mentioned earlier, each stakeholder will have a different and

unique perspective towards the fact whether or not the project as a
success. Also, it is crucial to get the value that the project provides
to the organisation. This review may be done by many people from
both sides such as the project sponsor or client’s organisation and the
organisation or area responsible for carrying out the project. The fol-
lowing questions are answered while evaluating the project’s success
based on the MOV:
Did the project achieve its MOV?
Was the sponsor/customer satisfied?
Was the project managed well?

n o t e s
Did the project manager and team act in a professional and ethical
manner?
What was done right?
What can be done better the next time?
Prior to evaluating the success of the project, the consulting firm or

individuals representing the project should be confident that the in-
formation system delivered will not be altered. Generally, when an in-
formation system is handed over to the project sponsor, the users or
personnel may make changes.
7. Project evaluation implies reviewing the performance of the
S
project from every aspect as every stakeholder has a different
perspective in evaluating a project. (True/False)
8. Various types of reviews that should be done during project
IM evaluation are an individual performance review, project
audit and evaluating the project success. (True/False)
9. In the post-mortem review, the entire project is analysed prior
to letting the team members getting involved in new projects
or no longer working with this organization. (True/False)
10. The individual performance review must be conducted by the
M
project manager for each project team member. (True/False)

11. These reviews, such as project audit, are conducted between
the project manager and the team. To get a narrower
perspective on the project, the audit should be done by an
N
external party. (True/False)
Activity
As a project manager, which type of evaluation will you perform?
10.4 SUMMARY
Every project comes to an end; however, sometimes because of
various reasons, a few projects need to be closed.
The normal closure of a project is as per the plan. In other words,
a project closes normally when the scope of a project is achieved
along with various objectives such as minimised cost and adequate
quality.
Sometimes, a project team may be insisted for project closure even
if all the features or functionalities have not been included in the
product.

n o t e s
Some projects are based on their own guidelines as well as the

time duration for closure. Such projects are known as perpetual
projects, which are the result of the delays or a scope or an MOV
that was not defined clearly during the initial stage of the project.
Sometimes a project fails because insufficient focus is paid to-
wards the people, techniques and processes of the organisation.
At times a project can be terminated because of the change in the
priorities.
Generally, the closure of a project or its termination is done under
normal circumstances when the project is able to fulfil all the de-
sired goals and objectives.
At the time of closure, every project must create all the required
details.
S
Most of the times, a project does not get completed within the
planned schedule due to inadequate project management, risk as-
sociated with the implementation of the project and over-estima-
tion.
IM
Irrespective of the fact whether or not a project closes in a normal
fashion or prematurely, the series of processes should be followed
to ensure project closure.
The most important need to ensure that the project closes under
normal situations is to seek the acceptance of the project sponsor
M
for the project.

Generally,the final project report should be created by the proj-
ect manager and the team, which is to be delivered to the project
sponsor and other stakeholders of the project.
N
key words
Organisational change management: It is an outline formulat-

ed for managing the effect of introduction of a new business
process, changes in organisational structure or cultural, etc.
Procurement management: It is a process of purchasing raw
material and other supplies required for carrying out a project
from external suppliers.
Project audit: It is a process of verifying whether project re-
alisation is in adherence with the rules and principles of proj-
ect management.
Recrimination: An accusation in response to one from some-
one else.
User manual: It refers to a user guide that is intended to assist
people while using a particular system.

n o t e s

1. Explain the process of administrative closure.
2. What elements should be included in the final project report?
3. Explain the benefits of conducting the final meeting and
presentation.
4. What are the four types of project evaluation?
5. Compare individual performance review and post-mortem
review.
S
Administrative Closure 1. MOV
IM
2. True
3. True
d. Receiving the formal signed
4.
off
sponsor, the administrative closure
5.
processes
M
6. False
Project Evaluation 7. True
8. True
9. True
N
10. True
11. True

1. Every project comes to an end; however, sometimes because of
various reasons, a few projects need to be closed. Refer to Section
10.2 Administrative Closure.
2. Generally, the final project report should be created by the project
manager and team, which is to be delivered to project sponsor
and other stakeholders of the project. The goal of creating the
report is to ensure that the project has been completed with the
defined outlined business case and specification mentioned in
the plan. Refer to Section 10.2 Administrative Closure.
3. If the project manager has been able to seek the confidence
of the project sponsor, the final meeting and presentation will
be handled with ease. Refer to Section 10.2 Administrative
Closure.

n o t e s
4. The main cause of worry for everyone is whether or not the

project be closed successfully. Every stakeholder has a different
perspective in the context of success. Refer to Section 10.3
Project Evaluation.
5. The individual performance review must be conducted by the
project manager for each project team member. Refer to Section
10.3 Project Evaluation.
SUGGESTED READINGS
Buttrick, R. 2000. The Interactive Project Workout. London: Pren-
tice Hall/Financial Times.
S
Gray, C. F. and E. W. Larson. 2000. Project Management: The Mana-
gerial Process. Boston: Irwin McGraw-Hill.
Keil,M. 1995. Pulling the Plug: Software Project Management and
IM
the Problem of Project Escalation. MIS Quarterly (December): 421–
447.
Meredith,J. R. and S. J. Mantel, Jr. 2000. Project Management: A
Managerial Approach. New York: John Wiley & Sons.
Nicholas,J. M. 1990. Managing Business and Engineering Projects:
Concepts and Implementation. Upper Saddle River, NJ: Prentice
M
Hall.
ProjectManagement Institute (PMI) 2008. A Guide to the Project
Management Body of Knowledge (PMBOK® Guide). Newtown
Square, PA: PMI Publishing.
N
E-REFERENCES
Fitzgerald,M. (2010). Project Management: When Good IT Proj-
ects Go Bad. CIO Magazine. July 26.
Kanaracus, C. (2009). SAP Project Costs Cited in Jeweler’s Bank-
ruptcy Filing. CIO Magazine. January 14.
Kanaracus,
C. (2009). SAP: We’ve Spent Millions So Far on Waste
Management Suit. CIO Magazine. April 9.
Wailgum, T. (2009). 10 Famous ERP Disasters, Dustups, and Disap-
pointments. CIO Magazine. March 24.
Wailgum,T. (2009). After a Massive Tech Project Failure: What IT
Can Expect. CIO Magazine. August 5.

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M
IM
S
C h
11 a p t e r
CASE STUDIES
S
CONTENTS
Case Study 1 It Project Management: Xyz Limited

Case Study 2 Communication Management in It Projects
IM
Case Study 3 Constructing an It Team: Kp It Solution Providers
Case Study 4 Developing an It Project Plan: Stinray Technologies
Case Study 5 Project Scope Management in It Projects
Case Study 6 Identifying Risks in It Projects
Case Study 7 Communication Management in It Projects
Case Study 8 Quality Management in It Projects
M
Case Study 9 Project Outsourcing by a Restaurant

Case Study 10 Project Execution Tracking and Monitoring
Case Study 11 Project Implementation and Project Closure Management in It
Projects
N
Case Study 12 Project Scope, Risk, and Cost Management in It Projects

274 IT Project Management
Case study 1
n o t e s
IT PROJECT MANAGEMENT: XYZ LIMITED
This Case Study discusses issues related to IT project management

in XYZ Limited. It is with respect to Chapter 1 of the book.
XYZ Limited, an IT company, develops telecom software for gov-

ernment organizations. It carries out several telecommunications
projects in underdeveloped countries of Africa. Recently, the
company has received a turnkey project for telecom operations
in a country in Africa. The contract is required to be executed
with the help of Japanese and Indian partners. Under this project,
XYZ Limited is supposed to develop a software platform that will
provide operational support to the telecom network of its client
company. For example, providing new connection to customers,
S
attending to faults reported by customers, and so on.
In order to execute this project, the project manager of XYZ Lim-

ited is required to interact with Japanese and Indian partners for
IM
the development and execution of the project plan. The project
manager faces challenges in interaction with partners due to cul-
tural differences and the manner of doing work. While the Japa-
nese are very methodological and work systematically, the Indians
believe in doing things with minimum documentation. These is-
sues pose problems to the manager in the execution of the project.
M
The Japanese want foolproof documentation for every activity.

The Indian partners develop documents that are either not re-
viewed or sometimes they miss out on the major concepts that
involve re-work. This has resulted in serious quality issues and
security breaches in the projects undertaken by XYZ Limited. As
N
a result, the company is forced to reconsider on its project man-

agement strategies to deal with cultural and other issues that in-
fluence project outcomes. It has approached a consultant for sug-
gestions.
questions
1. Discuss issues faced by the project manager of the XYZ

Limited while implementing the project in Africa.
(Hint: The project manager faces issues related to culture
and ways of working.)
2. As a consultant, what initiatives would you take to bridge
the cultural differences?
(Hint: As a consultant, some of the initiatives include
conducting cultural seminars, discussion sessions,
workshops, etc.)

Case study 2: COMMUNICATION MANAGEMENT IN IT PROJECTS 275
Case study 2
n o t e s
COMMUNICATION MANAGEMENT IN IT PROJECTS
This Case Study discusses the application of communication man-

agement in IT projects. It is with respect to Chapter 2 of the book.
HP Techno Solutions, an IT company with a global presence, has

several offices and development centres that are spread across
US, UK, Canada, Germany, France, Australia, India, New Zealand
and Brazil. Due to global operations of the company, managing
communication has become one of the key issues in a large num-
ber of projects that are being executed in different countries.
Team members, generally, need to communicate with their cli-

ents/counterparts in other countries. Due to different time zones,
sometimes the client takes too much time to respond to a query.
S
Moreover, if there are any changes in the project, it may require
some time to communicate the changes to the team members.
IM
In order to overcome the problems of communication manage-
ment, the executive management has proposed the concept of
PMO, i.e., the Project Management Office. This is the mechanism
which is followed by IT organisations with global presence. This
is sort of an e-room wherein the team members and the project
managers discuss their work status.
M
PMO can provide project management support to the organiza-

tion as well as directly manage the project.
Finally, HP Techno Solutions adopted the PMO, and reaped sub-

stantial benefits. The following are the significant benefits of im-
N
plementing PMO:
The communication problem was solved.
The operation cost was reduced to 20%.
The market share increased to 60%.
Time requirement for a project was reduced to 30%.

Case study 2
n o t e s
questions
1. Suppose you are a project manager and your task is to

ensure effective communication management so that the
various communication issues are minimised and the
project can be managed smoothly. Identify the key areas
wherein the problems and issues due to communication
gaps may affect the project delivery. Support your answer
with reasons as to why this key area is the potential target
for communication issue related problems.
(Hint: The communication mechanism must be strong
enough in every IT project so that problems are minimised
to a great extent.)
S
2. What communication controls will you deploy to ensure
that communication mechanism is effective and efficient?
Support your answer with valid reasons explaining why
the deployed communication control is effective and
IM
efficient.
(Hint: Areas wherein the communication mechanism is
required to be effective and efficient must be identified.)
M
N

Case study 3: CONSTRUCTING AN IT TEAM: KP IT SOLUTION PROVIDERS 277
Case study 3
n o t e s
CONSTRUCTING AN IT TEAM: KP IT SOLUTION PROVIDERS
This Case Study discusses IT consulting for a turnkey project. It is

with respect to Chapter 3 of the book.
KP IT Solution Providers is one of the India’s leading IT com-

panies. Services offered by the company include IT consultancy,
networking, software development, training, etc. In short, com-
plete IT solution under a single roof.
Recently, the company signed a contract for a turnkey solution

to a client, who operates a chain of hospitals across the country.
The client wanted to integrate the database of all its hospitals so
that patients’ records could be tracked and the treatment could
be continued anytime and anywhere. Earlier, hospitals followed a
S
manual process wherein the availability of patients’ records was
a big challenge. This is because prescriptions were hand written
and patients would forget to bring papers.
IM
In order to carry out this project, the KP IT Solution Providers
prepared an action plan according to which the first task was the
appointment of a project champion. The project champion was
briefed about the project by the project in-charge. Once having
understood the project scope, the project champion formed a
project team. Although forming a team was a tricky task for the
M
project champion, the project could not be completed without the

formation of a team.
questions
N
1. What are the key points that the project champion must
look for in the formation of the team so as to ensure the
timely completion of the project?
(Hint: Project team is formed by keeping in mind the
potential of each team member.)
2. What personality traits the project champion must look
for in each of the team members while selecting the team?
Support your answer with reasons.
(Hint: Team members are required to possess certain
qualities so that they can perform effectively.)

Case study 4
n o t e s
DEVELOPING AN IT PROJECT PLAN:

STINRAY TECHNOLOGIES
This Case Study discusses issues in formulating a plan for IT proj-

ects. It is with respect to Chapter 4 of the book.
StinRay Technologies is an IT solutions provider. The company

provides solutions to IT-related problems faced by customers
while executing their business processes.
Recently, StinRay Technologies has undertaken a software devel-

opment and IT consulting project for a client. The client was in-
volved in providing insurance-related services to customers like
updating the details of customers, payment of premium, etc. After
understanding the requirements of the client, StinRay Technolo-
S
gies was asked by the client to prepare the project plan. As per the
terms and conditions of the contract, the entire project was to be
executed in a timeframe of 1.5 years.
IM
The project plan was prepared on certain basic parameters. First-
ly, the objectives of the project were defined. Once the objectives
were set, the other phases of project plan formulation were put
into practice.
M
questions
1. What criterion was included in the project plan for the

project mentioned in the given case study? Support your
answer with reasons as to why this criterion is included.
N
(Hint: The project plan is prepared with some basic

objectives in place.)
2. Do you think that the implementation of WBS can help in
developing the project plan mentioned in the given case
study? Support your answer with reasons as to why this
concept should be included.
(Hint: WBS is all about the subdivision of activities to
achieve the predefined objectives.)

Case study 5: PROJECT SCOPE MANAGEMENT IN IT PROJECTS 279
Case study 5
n o t e s
PROJECT SCOPE MANAGEMENT IN IT PROJECTS
This Case Study discusses the project scope management in IT proj-

ects. It is with respect to Chapter 5 of the book.
ESOP Technologies, an IT company, has its headquarters in Sac-

ramento, California. Its development centres are in Boise, Idaho
and Noida, India. The company develops software for global cus-
tomers.
Recently, the company has received an order to develop software

for its client. The client wants to implement this software at all its
centres in the US. Thereafter, it moves on to the process of inte-
grating it at centres that are spread across Europe, Australia and
Asia.
S
The scope of the software is limited to the development of the da-
tabase structure and the technical documents, which are generat-
IM
ed from the project execution process. In other words, the client
wants to have the rights of the software without implementing it
on the production server.
The project is needed to be executed on onsite-offshore model

with the requirements being done by the team of ESOP Technol-
ogies and the rest of the work being done by the offshore team.
M
questions
1. Suppose that you have been given the charge ofare a project
champion for the offshore unit; and you are requiredhave
N
to ensure that the project ismust be successfully delivered

to the onsite team within the timeline of 6 months. Identify
the areas where the problems related to scope not being
defined specifically are likely to make their presence felt.
Support your answer with the reason.
(Hint: In the absence of scope, problems are bound to
occur. In the case of onsite-offshore projects, scope is an
inherent feature.)
2. Why is the scope in IT projects required to be managed?
(Hint: The scope in IT projects is required to be managed
or else it will have disastrous consequences in the project
execution process.)

Case study 6
n o t e s
IDENTIFYING RISKS IN IT PROJECTS
This Case Study discusses the risk management in IT projects. It is

with respect to Chapter 6 of the book.
Gatwick Infotech Solutions, an IT company, is based in Folsom,

CA, USA. It provides IT solutions that include software product
development, software development projects, IT consultancy, net-
working, database optimisations and process improvement con-
sultancy and implementation of quality models such as CMMI,
ISO, TickIT, Six Sigma, etc. to its customers.
Recently, the company has received a project from a telecom firm.

The scope of the work includes IT consultancy, networking solu-
tions and the development of software. The duration of the proj-
S
ect is 2 years. andThe first 6 months will be given to the IT consul-
tancy. During thesese 6 months, the existing infrastructure will be
studied, the scope of the work will be identified and the detailed
IM
report of consultancy findings will be prepared. Once this report
is prepared, it will be presented to the executive management of
the telecom firm. The management will provide solutions and rec-
ommendations of the report within 15 days. Thereafter, Gatwick
Infotech Solutions will work on networking solutions and the de-
velopment of software.
M
Suppose you are as a project manager for the aforementioned

project and you have to complete it within the allotted time. So,
you study risks associated with it because IT projects are highly
prone to risks.
N
questions
1. Identify risks that are involved in the aforementioned

project. How will risks influence it.?
(Hint: IT projects are highly prone to several types
of risks. So, they must be executed on account of their
nature.)
2. Based on the identified risks, what various mitigation
options will be deployed in the project? Out of several
mitigation options, select the one that will have the
greatest impact on the project. Support your answer with
reasons.
(Hint: In order to reduce the impact of risk, mitigation
measures are deployed.)

Case study 7: COMMUNICATION MANAGEMENT IN IT PROJECTS 281
Case study 7
n o t e s
COMMUNICATION MANAGEMENT IN IT PROJECTS
This Case Study discusses the application of communication man-

agement in IT projects. It is with respect to Chapter 7 of the book.
HP Techno Solutions, an IT company has a global presence. The

company has several offices and development centres which are
spread across US, UK, Canada, Germany, France, Australia, In-
dia, New Zealand and Brazil. Due to global operations of the com-
pany, the communication management becomes the key issues
for managing large number of projects which are being executed
at different countries.
One of the major issue for managing the communication system

is the fact that different time zones present a separate set of prob-
S
lem for the project team. This is due to the fact that several issues
of the team members related to software development process are
not handled in real time manner. It implies that either the com-
IM
munication is through e-mail which has its own drawback or the
telephonic communication through which team members com-
municate with their counterparts in other countries at odd hours.
Hence, in order to overcome the problems of communication

management the executive management has been proposing the
concept of PMO, i.e., the project management office. This is the
M
mechanism which is followed by IT organisations with global

presence. This is sort of an e-room wherein the team members
and the project managers discuss their work status.
But apart from the concept of PMO, there are several communica-
N
tions related problems and issues related to the project execution

processes. For example, client taking too much time to respond to
the query, changes in the project requirement are not communi-
cated carefully to the project team members.
questions
1. Suppose you are a project manager and your task is

to ensure effective communication management so
that issues are minimisedthe project can be managed
smoothly. Identify the key areas wherein the problems
and issues due to communication gaps have significant
impact on the project delivery. Support your answer with
reasons as to why this key area is the potential target for
communication issue related problems.
(Hint: The communication mechanism must be strong
enough in every IT projects so that the problems are
minimised to a great extent.)

Case study 7
n o t e s
2. What communication controls you will deploy to ensure

that communication mechanism is effective and efficient?
Support your answer with valid reasons which explain
why the deployed communication control is effective and
efficient.
(Hint: Areas wherein the communication mechanism is
required to be effective and efficient must be identified.)
S
IM
M
N

Case study 8: QUALITY MANAGEMENT IN IT PROJECTS 283
Case study 8
n o t e s
QUALITY MANAGEMENT IN IT PROJECTS
This Case Study discusses the application of quality management in

IT projects. It is with respect to Chapter 8 of the book.
HT techno solutions is an IT company which has its headquarter

in Chicago. It is CMMI level 5 assessed company and in addition
to this it has several other certifications such as ISO 9001, TickIT,
Six Sigma, SAS-70 and so on. This is because of the fact that it is
now almost mandatory for an IT company to have certifications
from leading authorities to do business in US and also the quality
of the software produced needs to be taken into consideration as
there are many software projects that have failed. Further, some
countries give preference to six sigma, while others give prefer-
S
ence to TickIT. Hence, it can be said that these certifications have
been acquired from a strategic perspective.
A long-term project has been under execution by HT techno solu-

IM
tions. The project is critical, which means that there is absolute-
ly no tolerance for any defects, bugs or errors in the software.
Hence, the executive management of HT techno solutions wants
to adopt a process-based approach wherein the defects, bugs and
errors are removed to a great extent. This approach ensures that
defects, bugs, errors detected in the testing phase are minimal
so that they can be handled accordingly. Thus, by adopting pro-
M
cess-based approach they are able to adhere to the requirements

of CMMI model, ISO model and so on.
questions
N
1. Suppose you are a project manager and your main task

is to ensure that the project is delivered to the client with
zero defects. Identify the key areas wherein the chances of
defect injection are the maximum. Support your answer
with reasons as to why the area identified by you has the
maximum potential for defect injection.
(Hint: The IT project when goes into execution mode is
bound to inject defects in the process. The process-based
approach ensures that the defects are removed in the
process itself rather than being detected at the testing
phase.)
2. What control measures you will adopt to ensure that
the defects do not get injected in the project execution
process?
(Hint: Quality management ensures that least amount of
defects get injected hence procedures and processes are
drafted to reduce the number of defects.)

Case study 9
n o t e s
PROJECT OUTSOURCING BY A RESTAURANT
This case study discusses the outsourcing of an IT project by a res-

taurant. It is with respect to Chapter 9 of the book.
Go-n-Try is a family restaurant in the New York. The restaurant

started providing its service with a few employees such as manag-
ers, waiters, and chefs. Initially, the customer’s base was not very
impressive, but gradually the restaurant started gaining popular-
ity and its its customer base increased significantly.
The management of the restaurant decided to increase its em-

ployees so that they would be able to provide better service and
experience to the customers.
S
The restaurant has also increased the number of menu items in
its menu to lure more customers. Every task in the restaurant
was being perfomed manually which includes taking customers’
IM
order, managing staff and inventory control. However, soon the
management realised that the customers are facing difficulty like
they have to wait for a long time to get their orders and even ta-
bles. As a result of this, the customers were moving to other res-
taurants which were providing better facility and service to them.
After an intense discussion on the situation, the management

M
decided to computerise the entire system. This involves imple-

mentation of hardware and software in the restaurant. But, the
problem is that nobody in the resturant was expert in implement-
ing such type of project. Therefore, the management decided to
outsource the project to an IT organisation which is an expert in
N
the development and implementation of such kind of IT projects.
The IT organisation soon implemented the project to manage the

restaurant business effectively. Now, a waiter can take the order
from customers and then enter the order in the software by using
the computers placed in the restaurant’s dining room. The order
is then transferred to printers that were allocated different tasks
to manage orders effectively without any confusion. Suppose a
customer orders an icecream, the order navigates to the cold item
printer. Similary, if a customer order a hot item, such as coffee
then the order goes to the hot item printer. Likewise, the order
for a hard drink is sent to restaurant’s bar printer. Moreover, the
bill of a particular customer can be generated automatically and
efficiently by the software on the basis of the intake of food items
in the restaurant. If any food item in the kitchen gets out of stock
then the out of stock information of that food item can be dis-
played on the computer systems located in the dining area. This
helps in notifying the waiters about the availability of a specific

Case study 9: PROJECT OUTSOURCING BY A RESTAURANT 285
Case study 9
n o t e s
food item or dish in the restaurant. This makes the process faster
and enables waiters to give better service to customers.
Other significant benefits of the project is that it helped manage-

ment to plan and control their business. The software provided
instant information on the food items ordered and helped man-
agement to decide which item is selling the most to make men-
us according to the customer’s taste. The software also helped in
controlling cost by comparing the weekly sales totals with food
costs.
questions
1. Do you think outsourcing the IT project was the only
S
solution to the restaurant problems?
(Hint: Outsourcing IT project helps in managing the
business effectively and to remain competitive in the
market)
IM
2. What are the benefits of software project developed for
the Go-n-Try restaurant?
(Hint: It makes the tasks automated and flow of
information more effective)
M
N

Case study 10
n o t e s
PROJECT EXECUTION TRACKING AND MONITORING
This Case Study discusses the project execution tracking and mon-
itoring of an IT project. It is with respect to Chapter 10 of the book.
Parth Infotech Solutions is an IT company that is into IT project

execution domain. The company is based in Noida, UP. The scope
of the company is the development of software products as well
as software based on the needs and requirements of the customer.
It implies that the company also undertakes the execution of the
development of software on a project basis.
Recently, the company has bagged an order for an international

client having offices in Hamburg, Munich, Berlin and Stuttgart.
The proposed software is to be developed based on the old tech-
S
nology, which is the client–server technology. The reason as to
why the client wants to develop the software on the old technol-
ogy is that the operators are more comfortable and that the cost
IM
of software budget is not much. The database is to be installed on
the server, while the developed software is to be installed physi-
cally on the machines at the four sites mentioned above. Further,
each of the four sites has a maximum of four computers.
The project plan has been developed, and the execution has al-
ready commenced on this project.
M
questions
1. Suppose you are the project manager and need to ensure

that the project is successfully implemented inat all the
N
four sites. What are the key points that you will consider
to ensure that the project is successfully implemented as
per the schedule. Also, mention as to why the key point
is relevant and the impact it will have on the project
execution process.
(Hint: The project execution process is required to be
tracked and monitored without which the project cannot
be managed or successfully delivered to the client.)
2. What are the various controls that you will deploy so that
the project execution, tracking and monitoring is effective
and efficient?
(Hint: The successful execution of an IT project requires
that effective management controls must be deployed.
These controls need to be identified first.)

Case study 11: Project Implementation and Project Closure Management
in IT projects 287
Case study 11
n o t e s
Project Implementation and Project Closure

Management in IT projects
This Case Study discusses the application of Project implementa-

tion and Project Closure management in IT projects. It is with re-
spect to chapters 9 and 10 of the book.
TC Technologies is an IT company that provides IT solutions and

services to various clients in Insurance and Banking Sector. The
company is based in Chennai but most of the projects have been
executed in foreign countries. The domestic market share of TC
technologies is very low as compared to international market.
An international software development project has just complet-
S
ed the testing and development phase. Due to delay in the server
delivery by a hardware vendor, the implementation phase is de-
layed by 4 days. The expected time for implementation and sign
off by the client is approximately 4 months. While the delivery of
IM
the server is awaited the project manager has inspected the setup
for the server room and according to him things are being carried
out as per the specifications.
With this project background, suppose you are the project man-
ager and need to ensure that the project is successfully completed
with the approval of the client.
M
questions
1. Identify the key areas where management control

N
techniques are to be deployed in the implementation

phase. Support your answer as to why the identified
area must be managed in accordance with the identified
controls.
(Hint: Implementation phase is the most important phase
for an IT project on account of the fact that this phase has
the greatest risk associated with it. This phase must be
managed and controlled at any cost. If these controls are
inadequately deployed then the project is bound to be a
failure.)
2. Identify the key areas which need to be taken into
consideration during the project closure process. Support
your answer with reasons as to why the identified area
needs to be managed and controlled and the impact it will
have on the project closure process.
(Hint: IT projects are required to be formally closed due
to the fact that the resources which were to be deployed
in the project must be released.)

Case study 12
n o t e s
Project Scope, Risk, and Cost Management in

IT projects
This Case Study discusses the application of project scope, risk and
cost management in IT projects. It is with respect to Chapters 1, 3,
and 4 of the book.
SQTC Technologies is a software development company which is

based in Noida. The company is into software development as well
as IT solutions. The types of the software which the company devel-
ops are mostly application software and customised software.
Recently, the company has bagged a software development project

related to the client who is a telecom service provider. The scope
S
of the work is restricted to the development of the software which
will cater to the business requirements of the client. In particular
the business requirements are not only confined to common day to
day business operations, but the proposed software should have an
IM
interface with the telephone exchange unit wherein the call details
of the subscribers are required to be printed on the bills. Though
the company has sufficient pool of human resources for developing
the software but the software required to pull the data from the
telephone switch requires specialised persons who can write the
code in C programming language. On account of these limitations,
M
the SQTC technologies decide to outsource this work to another

vendor who can write the code in C programming language. Af-
ter much negotiations and deliberations the company appoints a
person for writing the programs at the rate of `5000 per hour. The
scope of the work for this person was limited to developing the pro-
N
gram for pulling in the data from the telephone exchange.
questions
1. Suppose you are a project manager and required to ensure

the successful implementation of the project for the client.
Identify the risks that you are likely to encounter in this
project.
(Hint: IT projects are executed with risks which are liable
to affect the objectives of the project.)
2. Identify the various scoping parameters which are
necessary for the work which has been outsourced to
the person who can code in C programming language.
Support your answer as to why the identified parameter
needs to be scoped.
(Hint: In order to manage the outsourced work, the
quantum of work along with roles and responsibilities
must be defined correctly.)

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IT PROJECT MANAGEMENT

Chief Academic Officer Content Reviewer

TOC Reviewer TOC Reviewer

Reviewed By: Dr. R Vijaylakshmi

NMIMS Global Access - School for Continuing Education

CHAPTER NO. CHAPTER NAME PAGE NO.

1 An Overview of It Project Management 1

2 Conceptualising and Initialising the It Project 27

3 People Management in It Projects 53

Planning the Scope, Budget,

6 Risk Management in It Projects 145

7 Allocating Resources to a Project 167

8 Quality Management in It Projects 213

9 Project Outsourcing 231

10 It Project Closure Management 255

11 Case Studies 273

NMIMS Global Access - School for Continuing Education

An overview of IT Project Management: What is a Project, examples of IT projects, what is Proj-

Outsourcing of projects and Project Closure: Introduction, project implementation, administra-

NMIMS Global Access - School for Continuing Education

An overview of IT Project Management

Self Assessment Questions

NMIMS Global Access - School for Continuing Education

1.11 IT Project Manager—Roles and Functions

NMIMS Global Access - School for Continuing Education

SOFTWARE MAINTENANCE PROJECT OF

In the year 2008, Indian Railways had set up an organisation

 The website should have useful and updated content.

Finally, the website was built. The project manager of IROAF

NMIMS Global Access - School for Continuing Education

After studying this chapter, you will be able to:

In a span of last few years, the field of information technology has

started and is being implemented in some major cities of India. Bhar-

Chandigarh region. We can clearly see the impact made by 4G on the

Suppose an individual wants to book his train ticket for travelling

When dealing with Information Technology, it is important to have a

NMIMS Global Access - School for Continuing Education

1.2 WHAT IS A PROJECT?

The different attributes of development of an IT project can be briefly

development project. This is because the time attribute directly af-

NMIMS Global Access - School for Continuing Education

 Interdependent attribute: Every software project consists of a

self assessment Questions

1. The ______ attribute directly affects the cost factor.

2. It is not necessary that every software project has a client or a

Research about various public sector organisations around the

1.3 EXAMPLES OF IT PROJECTS

NMIMS Global Access - School for Continuing Education

self assessment Questions

3. The ______ number of the individuals is linked to bank

Research about various types of IT projects. Prepare a report on

1.4 MEANING OF PROJECT MANAGEMENT

Let us take an example to bring out conceptual clarity. A software de-

NMIMS Global Access - School for Continuing Education

processes in an organisation is required to be executed within a time

Having understood the basic definition of management, let us now

manager prepares the work breakdown structure and on the basis

status of various activities of the project so as to know the direction

Project management is the application of processes, methods, knowl-

NMIMS Global Access - School for Continuing Education

Monitoring & Contributing

Figure 1.1: Depicting the Concepts of Project Management

self assessment Questions

4. Which of the following functions ensures the deployment of

The website should have useful and updated content.

Interdependent attribute: Every software project consists of a

Time and Material Dependent: These are the projects in which

Does the organisation have enough resources and infrastruc-

ProjectDesign: This stage is concerned with the content design

1.11.2 TECHNICAL BACKGROUND FOR AN IT PROJECT

An IT project manager with a strong technical background is able