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Department of Applied Computational Science & Engg.

Program: BTech CSAI/ CSAIML/


CSDS/ AIML/ AIDS
Course Code: KOE 068
Course Name: Software Project
Management
Lecture No: Unit 1
Department of Applied Computational Science & Engg.
Course Code: KE068 Course Name: Software Project Management

Course Outcomes :

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Course Prerequisites

None

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Syllabus

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

• Lecture Objectives
To introduce the concept of
1. Software project management and its lifecycle
2. Management Activities
3. Methodologies

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

• 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

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

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.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

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.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

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.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

What is a Software Project?


A software project is a collection of tasks,
resources, and schedules that are brought
together to create a software system.
It involves the planning, development, testing, and
maintenance of software, often following a specific
methodology or framework.
Software projects can vary in size and complexity,
ranging from individual applications to large-scale
enterprise systems.
The goal of a software project is to deliver a
functional and high-quality software product within
the constraints of time, budget, and scope.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Software Project Management


Software project management is a discipline of
planning and supervising software projects.
It is the process of overseeing and coordinating
software development projects.
This includes everything from planning and budgeting
to development and testing.
In order to be successful, software project managers
must have a strong understanding of the software
development process and be able to communicate
with all members of the development team effectively.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Need for Software Project Management


Software is said to be an intangible product.
Software development is still treated as a new stream in
world business.
Very little experience in building software products.
Most software products are tailor made to fit client’s
requirements.
Rapid changes and advances in underlying technology.
All such business and environmental constraints bring risk
in software development hence it is essential to manage
software projects efficiently.
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Triple Constraints of a Software Project


It is essential for a software organization
to deliver quality product, keeping the
cost within user’s budget constrain and
deliver the project as per scheduled.
Several factors, both internal and
external, may impact these constraints.
Also, any of three factors can severely
impact the other two.
Software project management is
essential to manage this triple constraint
triangle keeping the delivered software
within the scope of user requirements.
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Software Project Manager


A software project manager is a person who undertakes
the responsibility of executing the software project.
Software project manager is thoroughly aware of all the
phases of SDLC but may never directly involve in producing
the end product.
A project manager closely monitors the development,
prepares and executes various plans, arranges necessary
and adequate resources.
A project manager maintains communication among all
team members in order to address issues of cost, budget,
resources, time, quality and customer satisfaction.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Responsibilities of a Software Project Manager


Managing People
– Act as project leader
– Liaison with stakeholders
– Managing human resources
– Setting up reporting hierarchy etc.
Managing Project
– Defining and setting up project scope
– Managing project management activities
– Monitoring progress and performance
– Risk analysis at every phase
– Take necessary step to avoid or come out of problems
• ActName:
Program as project spokesperson
BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Software Project Management Life Cycle

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Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Software Project Management Life Cycle Explained


Initiation phase defines the start of a new project and determines what
the project should accomplish and related constraints.
Project Planning phase covers about 50% of the whole process.
Planning phase determines the scope of the project as well as the
objective of the project, and ensures all activities pertaining to
successful execution of the project.
The executing phase involves managing stakeholder expectations,
coordinating with people and resources, as well as performing other
activities related to project deliverables.
After execution phase, to check the project is on right track, monitoring
and controlling phase becomes active. During this phase various
changes and reviews to enhance the project performance is done.
If everything goes well, the project is closed with the right deliverables.
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Detailed phases

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Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Software Project Management Activities


Software project management activities entail the umbrella of
tasks which must be carried out when a project is undertaken.
These activities include:
❖ Project planning and Tracking
❖ Project Resource Management
❖ Scope Management
❖ Estimation Management
❖ Project Risk Management
❖ Scheduling Management
❖ Project Communication Management
❖ Configuration Management

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Software Project Management Activities


❖ Project planning and Tracking: It is a set of multiple
processes, or we can say that it a task that performed before
the construction of the product starts.
❖ Project Resource Management: It deals with management of
human resource, productive tools, and libraries etc. For
example, creating and hiring a project team and assign
responsibilities to every team member
❖ Scope Management: It describes the scope of the project
what a project would do and what it would not. Scope
Management keeps the project to contain restricted and
quantitative tasks, which may merely be documented and
successively avoids price and time overrun.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Software Project Management Activities


❖ Estimation Management: a project manager figures out
the size(line of code), efforts, time and cost.
❖ Project Risk Management: Risk management consists of
all the activities like identification, analyzing and
preparing the plan for predictable and unpredictable risk
in the project. For ex., what to do if an experienced team
leaves the project, or a new product is launched by rival
company etc.
❖ Scheduling Management: Scheduling Management in
software refers to all the activities to complete in the
specified order and within time slotted to each activity.
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Software Project Management Activities


❖ Project Communication Management: Communication
is an essential factor in the success of the project. It is a
bridge between client, organization, team members and
as well as other stakeholders of the project such as
hardware suppliers.
❖ Configuration Management: Configuration management
is about to control the changes in software like
requirements, design, and development of the product.
The Primary goal is to increase productivity with fewer
errors.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Software Project Management Methodologies


• A project management methodology is a set of
principles, tools and techniques that are used to plan,
execute and manage projects.
• Project management methodologies help project
managers lead team members and manage work while
facilitating team collaboration.
• A project manager needs to learn about project
management methodologies to decide which one works
best for their scenario.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Software Project Management Methodologies


• Some popular project management methodologies are
– Waterfall Methodology
– Prince2
– Six Sigma
– Critical Path Method (CPM)
– Critical Chain Project Management (CCPM)
– Lean Methodology
– Agile Methodology

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

How to Choose right methodology


• Budget: how much you can afford to implement and manage
• Team: the size and skill set of your team.
• Complexity: simple or complex?
• Flexibility: How flexible or rigid does your process have to be?
• Timeline: Is it more important to finish quickly or spend time
on a high-quality result?
• Risk: Projects with higher risk often use a more rigid
methodology, such as the waterfall method, while projects
with less risk use a more flexible approach.
• Collaboration: How much feedback and communication do
you need from stakeholders?
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

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

Waterfall Methodology Phases


Requirements: Gather information and create a detailed project plan
that outlines each stage of the process, key dependencies, timelines
and more.
Design: this phase specifies things, including hardware, coding
languages and user interface design.
Implementation: this is where software development would take
place.
Verification: Test the software with a quality assurance (QA) team to
discover and fix bugs and defects as well as identify additional risks
Deployment: At this stage, the software is deployed to the end-user or
the final deliverable is given to the end customer.
Maintenance: Maintain the software and make occasional
modifications to fix defects, improve performance and add features.
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.

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 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.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Categorization of Software Projects


Projects may differ because of the different technical products to be
created.
So we need to identify characteristics of a project which could affect
the way in which project should be planned and managed.
The Categories are
• Compulsory versus voluntary users
• Information System versus Embedded Systems
• Outsources Projects
• Objective-driven development
• Product driven development

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

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.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

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

To develop a successful project, the project manager and the team


members must be aware of the factors that lead them to success.
There must be well-defined objectives accepted by all the people
involved in the development process. A project authority must be
identified to have an overall authority over the project. This
authority is governed by a project steering committee also called as
a project management board. Day–to-day activities must be
reported to the steering committee by the project manager at
regular intervals. Any changes to the defined objectives can be done
only by the steering committee.

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

An effective objective’s scope for an individual must be within the


individual’s control. Objectives can be broken down into goals or
sub-objectives in order to achieve them. SMART technique is used
for a well-defined objective.
➢ Specific ; Concrete and well-defined; Up to the point.
➢ Measurable : measures of effectiveness.
➢ Achievable ; power within the individual or the group.
➢ Relevant : satisfy the purpose of the project.
➢ Time-oriented : time limit for successful achievement of the
project.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Management Principles:

Division of Work - According to this principle the whole work is


divided into small tasks. The specialization of the workforce
according to the skills of a person , creating specific personal and
professional development within the labour force and therefore
increasing productivity; leads to specialization which increases the
efficiency of labour.
Authority and Responsibility - This is the issue of commands
followed by responsibility for their consequences. Authority means
the right of a superior to give enhance order to his subordinates;
responsibility means obligation for performance.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Contd:

Discipline - It is obedience, proper conduct in relation to others,


respect of authority, etc. It is essential for the smooth functioning of
all organizations.
Unity of Command - This principle states that each subordinate
should receive orders and be accountable to one and only one
superior. If an employee receives orders from more than one
superior, it is likely to create confusion and conflict.
Unity of Direction - All related activities should be put under one
group, there should be one plan of action for them, and they should
be under the control of one manager.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

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.

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Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project 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

Management Control System:


A Management Control System (MCS) serves as a guide for
organizations. It assists in tracking performance, maintaining the
right direction, and making improvements. MCS helps to establish
goals, evaluate progress, and make adjustments as needed. In this
way, businesses can stay focused and make ongoing progress. The
processes and mechanisms of an MCS can be implemented using
software, but they can also be implemented manually.
In simple terms, an MCS enables organizations to make informed
decisions, align their actions with their goals, and continuously
adapt to changing conditions for sustained success.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Software-based and Manual-based Management


Control Systems:
Software-based MCSs are computer programs that are designed to
help organizations track and measure performance, identify risks
and opportunities, and make decisions. Software-based MCSs can
be either standalone applications or modules that are integrated
with other enterprise software systems, such as enterprise resource
planning (ERP) systems and customer relationship management
(CRM) systems.
Benefits of software-based MCSs:
Automated data collection and analysis
Improved visibility into performance
Standardized reporting and analysis
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Example of Software-based Management Control


Systems:
ERP systems
Performance management software
Business intelligence (BI) software
Project management software

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Manual-based Management Control Systems:

Manual-based MCSs are systems that are implemented and


maintained without the use of computer software. They typically
rely on manual data collection, analysis, and reporting.
Examples of manual-based MCSs
Spreadsheets: Spreadsheets can be used to track data and calculate
performance metrics.
Charts and graphs: Charts and graphs can be used to visualize data
and identify trends.
Checklists and audits: Checklists and audits can be used to identify
and track risks.
Performance reviews: Performance reviews can be used to evaluate
employee
Program performance.
Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Project Portfolio Management


Project portfolio management provides an overview of all the
projects that an organization is undertaking or is considering.
The concerns of project portfolio management include:
• Identifying which project proposals are worth implementation
• Assessing the amount of risk of failure that a potential project has
• Deciding how to share limited resources, including staff time and
finance, between projects

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Why Project Portfolio Management is important?


According to the Project Management Institute, "portfolio
management is a way to bridge the gap between strategy and
implementation." The portfolio manager's job is to ensure the right
projects are being done at the right time to maximize the
company's investment. This is particularly important in an
organization with a lot of internal projects.
Ideas for projects can come from anywhere, at any time, and it's
common for a business to have a long list of potential projects to
complete. However, there usually is not enough time, money, or
resources to do them all right away. Project portfolio management
is necessary to understand which projects will have the largest
beneficial impact on the company and prioritize them accordingly.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Benefits of project portfolio management


Provides alignment between company objectives and projects
A PMI survey found that a lack of clearly defined goals is the first
reason for project failure. Project portfolio management promotes
transparent and open discussions amongst the team with a
company-first attitude.
Takes the personal bias out of project planning
With PPM, there are no “pet projects.” Subjectivity in project
planning is eliminated as PPM focuses on prioritizing projects based
on their inherent risk, business goals, resource, and skill availability.
Multiple qualitative and quantitative techniques such as ranking
models and scoring methods are used to make project decisions

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Benefits of project portfolio management


Makes decision-making easier
Stakeholders may struggle to manage disputes that can arise with
different project teams focusing on their priorities and vying for
limited resources. By employing a standardized approach to
decision-making, PPM subjectively evaluates the demand from
competing project teams.
Focuses on the big picture
Sometimes project teams concentrate so much on execution that
they miss the big picture. While chasing trends, they fail to achieve
strategic goals and overwork their teams. When teams adopt
project portfolio management, they prioritize and execute only
value-delivering projects.
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

five steps of project portfolio management


1. Identify the guiding objectives of the business:
Before you start thinking about portfolio management, you’ll need
to understand your organization’s business objectives and strategic
goals. The idea is that your project portfolio aligns with the strategic
planning of your organization, so you’ll need to check if its
financial objectives and customer value are good enough for your
organization.
2. Capture and research requests and idea:
Once you’ve defined your portfolio’s strategic goals it’s time to start
building it. To do so, you’ll need to start collecting projects. Those
could be in-progress projects or project ideas that are similar enough
to be managed simultaneously.
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

five steps of project portfolio management


3. Select the best projects
Once ideas are captured, portfolio managers must go through a
standard process to evaluate and select the projects that will move
forward.
4. Validate portfolio feasibility and initiate projects
Once a determination has been made on which projects to move
forward, it's important to validate the portfolio as a whole. This can
include making sure the mix of projects chosen isn't too large, too
risky, too expensive, or too interdependent. if two projects are
interrelated and a delay in one will push out the other, you may
want to reconsider starting them both simultaneously. Once the
portfolio is validated, project managers can be assigned and the
projects initiated.
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

five steps of project portfolio management


5. Manage and monitor the portfolio
Projects change and evolve over time, and new ideas may be added
to the list of potential projects. This is why it's important to
continually manage both the ongoing portfolio execution and the
intake process. Managing and monitoring the portfolio may include
the following:
Working with project managers to monitor the performance of
projects
Identifying and resolving conflicts between projects
Making changes to the portfolio as needed, including putting
projects on hold, canceling projects, and adding in new projects
Ensuring projects are still aligned with the business objectives
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Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Cost Benefit Evaluation Technology


The Cost Benefit Evaluation techniques are
• Net profit
• Payback period
• Return on Investment
• Net Present Value
• Internal Rate of Return

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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.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

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.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

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.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

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.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

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.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

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.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Stepwise Project Planning


An outline of Step Wise planning is listed below:
➢ Selecting project
➢ Project scope & objectives
➢ Project infrastructure
➢ Analyze project characteristics
➢ Project products and activities
➢ Estimation effort
➢ Activity risks
➢ Allocate resources
➢ Review plan
➢ Execute plan
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Strategic Program Management:


While project management takes a project from its starting point to
its end, strategic project management looks at the big picture. It
links the project to how it benefits the company’s efficiency and
competitiveness.
Strategic project management identifies and implements the
organisation’s long-terms goals and objectives into the project. With
top tier management involvement, it explains why the organisation
exists and the context within which it operates.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Components of Strategic Program Management:


There are three common components which drive the project to its
ultimate goal for the company:
1. Strategic analysis
This forms the basis for which projects an organisation chooses to
undertake. Each project needs to link to the organisation’s mission
and be key to meeting long-term objectives.
2. Strategic choice
Just how does a company decide which projects to be involved
with? Managing multiple projects is a complex task, and something
that project managers do in their daily routine. But deciding on the
‘right’ projects is an important step which requires a strategic
choice.
Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS
Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Components of Strategic Program Management:


3. Strategic implementation
With the scene set, the third stage of strategic management is
implementation. Here, strategic project management sets out the
long-, medium- and short-term goals for projects and programmes.

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Measuring the success of strategic project management


Any strategy and project within the ‘bigger picture’ needs to have
indicators to measure success. The same is true for strategic project
management.
Strategic project managers often use these four categories of
performance measurement:
Finance
Customer
Learning and growth
Internal business processes.
Essentially, they provide the basis for defining objectives

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
Department of Applied Computational Science and Engg.
Course Code068 Course Name: Software Project Management

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

Program Name: BTech CSAI/CSAIML/CSDS/AIML/AIDS


Program Code:
THANK YOU

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