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Unit1-Introduction and Importance of Software Project Management
Unit1-Introduction and Importance of Software Project Management
Course Outcomes :
Course Prerequisites
None
Syllabus
• Lecture Objectives
To introduce the concept of
1. Software project management and its lifecycle
2. Management Activities
3. Methodologies
• Lecture Outcomes
At the end of the lecture, a student will be able to
❖ Understand characteristics of a project and software
project
❖ Enumerate the responsibilities of a project manager
❖ Understand the concept and need of software project
management
❖ Illustrate software project management lifecycle
❖ List and explain software management activities and
methodologies
What is a Project?
• A project is well-defined task, which is a collection of several
operations done in order to achieve a goal.
• A project is a combination of set objectives to be
accomplished within a fixed period.
• PMI (Project Management Institute) defines a project as
– a “temporary endeavor”,
– aiming to create a unique result (which may usually refer to
products and services but can also include driving organizational
change),
– enabling the creation of quantifiable benefits (also referred to as
“business value”), and
– is initiated by leaders of the organization.
Characteristics of a project
❖ Has distinct and specific goals/objectives to be met.
❖ Non-routine routine activity and tasks are involved.
❖ Pre-determined time span with a start time and end time.
❖ Temporary undertaking i.e., ends when its goal is achieved.
❖ Involves specialized skills.
❖ Most of the time carried out for someone else.
❖ Carried out in phases with specified deliverables.
❖ Needs adequate resources in terms of time, manpower,
finance, material and knowledge-bank.
Examples of project
❖ Constructing a building.
❖ Developing a new pharmaceutical compound.
❖ Merging two organizations.
❖ Exploring for oil in a region.
❖ Installation of machinery in a factory.
❖ Relief efforts after a natural disaster.
❖ Student project assignment.
❖ Organizing a hackathon.
Detailed phases
Waterfall Methodology
❖ The waterfall methodology is a process in which the
phases of the project flow downward.
❖ The waterfall model requires that you move from one
project phase to another only once that phase has been
successfully completed.
❖ When to use it: The waterfall approach is great for
manufacturing and construction projects which are highly
structured, and when it’s too expensive to pivot or change
anything after the fact. In software development, this
methodology is suitable for projects which do not have
changing requirements and are short in duration.
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management
Prince 2
❖ PRINCE2 stands for “projects in controlled environments”
and was created by the United Kingdom government in
1996 as a version of the waterfall project management
methodology.
❖ When to Use: PRINCE2 is a well-structured and proven
methodology that’s widely used. It’s also considered more
flexible than the traditional waterfall method. However,
PRINCE2 can be time-consuming with a lot of processes
that can slow down a small project. Therefore, it’s best for
more complex projects where quality standards are high.
Prince 2 Phases
Starting a project: Start the project by submitting a project plan that defines
the business case.
Directing a project: The project board reviews the plan and decides to move
forward.
Initiating a project: The board chooses a project manager who creates a more
detailed project plan.
Controlling a project: The project manager breaks down the project into more
manageable stages.
Managing product delivery: The project manager oversees the project’s
progress and assesses quality standards.
Managing stage boundaries: Project board holds a review at the end of each
stage before moving forward.
Closing a project: The project manager completes the project and creates the
final report.
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management
Six Sigma
❖ Six Sigma was developed by Motorola to improve
business processes by eliminating any defects or errors in
the process. It uses statistical models to continuously
improve quality management so the project’s outcome is
successful.
❖ When to Use. The Six Sigma framework helps improve
quality, eliminate waste, increase efficiency and reduce
costs. However, Six Sigma is complex and requires a
knowledgeable manager to implement it. For this reason,
it’s only right for larger organizations who are looking for
efficiency gains in existing processes.
❖
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management
Lean Methodology
Defining Value: define customer value
Mapping the Value Stream: use the customer’s value as a reference
point and identify all the activities that contribute to these values.
Activities that do not add value are considered waste.
Creating Flow: Ensure that the remaining steps after eliminating waste,
runs smoothly without interruptions or delays.
Using a Pull System: A pull-based system's goal is to limit inventory and
work in process (WIP) items while ensuring that the requisite materials
and information are available for a smooth flow of work.
Pursuing Perfection: Project Manager ensures that employees on every
level are involved in continuously improving the process and finds ways
to get a little better with each day.
Contd.
Compulsory versus voluntary users: POS software has different
requirement and user than Games.
Information system interfaces with the organization whereas an
embedded system interfaces with a machine. Typical example for an
information system can be inventory system maintained by an
organization, learning management system, database system.
An embedded system or an industrial system can be a process
control system such as maintaining air conditioning equipment in a
company.
Contd.
Projects are also defined by producing a product or meeting the
objectives. A project that produces the product must meet all kinds
of client requirements. The produced product must be justified by
the client. The project is also required to satisfy certain objectives.
The objectives can guide and motivate individual or groups to
perform well in their assigned task.
Outsourced Project: Most of the companies outsource parts of its
work to other companies. There can be several reasons to
outsource project, e.g. company does not have sufficient expertise,
or project is to be completed in limited period in that case it can be
outsourced to company with their development centre.
Outsourced project fetch one time revenue in good amount while
product based company project earn over period of time.
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management
Setting Objectives
Setting Objectives
Management Principles:
Contd:
Contd:
Subordination of Individual Interest to Mutual Interest - The
management must put aside personal considerations and put
company objectives firstly. Therefore the interests of goals of the
organization must prevail over the personal interests of individuals.
Remuneration - Workers must be paid sufficiently as this is a chief
motivation of employees and therefore greatly influences
productivity. The quantum and methods of remuneration payable
should be fair, reasonable and rewarding of effort.
The Degree of Centralization - The amount of power wielded with
the central management depends on company size. Centralization
implies the concentration of decision making authority at the top
management.
Contd:
Equity - Employees must be treated kindly, and justice must be
enacted to ensure a just workplace. Managers should be fair and
impartial when dealing with employees, giving equal attention
towards all employees.
Stability of Tenure of Personnel - Stability of tenure of personnel is
a principle stating that in order for an organization to run smoothly,
personnel (especially managerial personnel) must not frequently
enter and exit the organization.
Initiative - Using the initiative of employees can add strength and
new ideas to an organization. Initiative on the part of employees is a
source of strength for organization because it provides new and
better ideas. Employees are likely to take greater interest in the
functioning of the organization.
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management
Net Profit
➢ The difference between the total costs and the total income over
the life of the project is calculated as net profit.
➢ Net profits do not involve the timing of the cash flows. When
there are many projects,the net profit of preferable projects is done
on selection criteria.
➢ Some projects incomes are returned only towards the end of the
project. This is a major disadvantage which means that the
investment must be funded for longer time.
➢ Estimates in distant future are less reliable than the short-term
estimates which are more preferable.
Payback Period
➢ The time taken to break even or pay back the initial investment is
the payback period.
➢ The project with the shortest payback period will be taken based
on organizations that wish to minimize the time limit.
➢ The payback period is simple to calculate but sensitive to
forecasting errors.
➢ The limitation of the payback period is that it ignores the overall
profitability of the project.
Rate on Investment
➢ The accounting rate of return or the return on investment
compares the net profitability to the investment required.
➢ Return on Investment (ROI) is calculated using the given
formulae;
➢ The ROI provides simple, easy to calculate the measure of return
on capital.
Risk Evaluation
➢ Risk is associated with almost every project. Risk can become an
important factor when the project is not able to meet its objectives.
➢ Every possible risk must be identified, analyzed and minimized
during the development of the software system.
Risk Identification
➢ Every project evaluation involves risk handling issues.
➢ All possible risks are identified and must be quantified with their
potential measures of evaluation.
➢ A project risk matrix can be implemented in creating a checklist
of all possible risks and classify them based on their relative
importance.
➢ The risk matrix contains values of high, medium and low based
on their likelihood.
➢ Some factors classified in the risk project matrix contains,
delivery of software, development budget exceeded limit,
estimation of maintenance costs, response time targets and so on.
Risk Ranking
➢ Based on the risk identified, ranking can be established for
projects.
➢ Evaluating projects based on the risk project matrix gives a clear
picture of how to rank the different risks that occurs in projects.
➢ Risk ranking involves giving scores to projects based on priorities
defined for each risk in the project.
Recommended Books
Text books:
• Bob Hughes, Mike Cotterell and Rajib Mall: Software Project
Management – Fifth Edition, McGraw Hill, New Delhi, 2012.
Reference Book
• Robert K. Wysocki ―Effective Software Project Management – Wiley
Publication, 2011.
• Walker Royce: ―Software Project Management- Addison-Wesley, 1998.
• Gopalaswamy Ramesh, ―Managing Global Software Projects – McGraw
Hill Education (India), Fourteenth Reprint 2013.
Additional online materials
https://onlinecourses.nptel.ac.in/noc19_cs70/preview