Couse On

IT8075
Software Project Management
Dr. N. K. Sakthivel, M.Tech., Ph.D.
Dean (Computing)
Nehru Institute of Engineering and Technology
Accredited by NAAC, Recognized by UGC with Section 2(f) and 12(B), NBA Accredited UG Courses : Aero, CSE and Mech
Coimbatore, Tamil Nadu, INDIA

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IT8075 Software Project Management
OBJECTIVES:

• To understand the Software Project Planning and Evaluation Techniques

• To plan and manage projects at each stage of the Software Development Life Cycle (SDLC)
• To learn about the Activity Planning and Risk Management Principles
• To manage Software Projects and Control Software Deliverables
• To develop skills to manage the various phases involved in Project Management and People
Management
• To deliver successful software projects that support organization’s strategic goals

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IT8075 Software Project Management
UNIT I PROJECT EVALUATION AND PROJECT PLANNING
Importance of Software Project Management – Activities - Methodologies – Categorization of Software
Projects – Setting objectives – Management Principles – Management Control – Project portfolio
Management – Cost-benefit evaluation technology – Risk evaluation – Strategic program Management
– Stepwise Project Planning.
UNIT II PROJECT LIFE CYCLE AND EFFORT ESTIMATION
Software process and Process Models – Choice of Process models - Rapid Application development –
Agile methods – Dynamic System Development Method – Extreme Programming– Managing interactive
processes – Basics of Software estimation – Effort and Cost estimation techniques – COSMIC Full
function points - COCOMO II - a Parametric Productivity Model.
UNIT III ACTIVITY PLANNING AND RISK MANAGEMENT
Objectives of Activity planning – Project schedules – Activities – Sequencing and scheduling – Network
Planning models – Formulating Network Model – Forward Pass & Backward Pass techniques – Critical
path (CRM) method – Risk identification – Assessment – Risk Planning –Risk Management – – PERT
technique – Monte Carlo simulation – Resource Allocation – Creation of critical paths – Cost schedules

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IT8075 Software Project Management
UNIT IV PROJECT MANAGEMENT AND CONTROL
Framework for Management and control – Collection of data – Visualizing progress – Cost monitoring –
Earned Value Analysis – Prioritizing Monitoring – Project tracking – Change control – Software
Configuration Management – Managing contracts – Contract Management.
UNIT V STAFFING IN SOFTWARE PROJECTS
Managing people – Organizational behavior – Best methods of staff selection – Motivation – The
Oldham – Hackman job characteristic model – Stress – Health and Safety – Ethical and Professional
concerns – Working in teams – Decision making – Organizational structures – Dispersed and Virtual
teams – Communications genres – Communication plans – Leadership.
TEXT BOOK:
1. Bob Hughes, Mike Cotterell and Rajib Mall: Software Project Management – Fifth Edition, Tata
McGraw Hill, New Delhi, 2012.

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IT8075 Software Project Management
OUTCOMES :
At the end of the course, the students should be able to:
• Understand Project Management Principles while Developing Software
• Gain Extensive Knowledge about the basic Project Management Concepts, Framework and the
Process Models
• Obtain Adequate Knowledge about Software Process Models and Software Effort Estimation
Techniques
• Estimate the Risks Involved in Various Project Activities
• Define the Checkpoints, Project Reporting Structure, Project Progress and Tracking Mechanisms
Using Project Management Principles
• Learn Staff Selection Process and the Issues Related to People Management

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IT8075 Software Project Management
UNIT I PROJECT EVALUATION AND PROJECT PLANNING
Importance of Software Project Management – Activities - Methodologies – Categorization of Software Projects –
Setting objectives – Management Principles – Management Control – Project portfolio Management – Cost-benefit
evaluation technology – Risk evaluation – Strategic program Management – Stepwise Project Planning.

Project
• A project is well-defined task, which is a collection of several operations done in order to achieve a
goal
• Characterized as
• Every project has a Unique and Distinct Goal
• Project is not routine activity or day-to-day operations
• Project comes with a start time and end time… Project ends when its goal is achieved
• Project needs adequate resources in terms of Time, Manpower, Finance, Material and
Knowledge-bank

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Importance of SPM
Software Project
• A Software Project is the complete
procedure of software development from
• Requirement Gathering to Testing and
Maintenance
• Carried out According to the Execution
Methodologies to achieve Intended
Software Product
• Specific Plan… Planned Undertaking
Importance of Software Project
Management
• Software is said to be an intangible product
• Most software products are tailor made to
fit client’s requirements
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Importance of SPM

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Activities of Project Management / Characteristics of Project

• Overview of the Project

• Project Deliverables
• Managerial Processes
• Technical Processes
• Schedule of the Project
• Work Packages
• Budget
• Non-Routine… Planned… Aiming at Specific
Target… Work carried out for a Customer…
Involving Specialists… Constrained by Time…
Resources…
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Software Project Management - Feasibility Study

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Software Project Management - Feasibility Study

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Software Project Management - Feasibility Study

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Setting Objectives
• Project Steering Committee
• Project Management Board
• SMART
• Specific Objectives
• Measurable
• Achievable
• Relevant
• Time Constrained

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Management Principles

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Management Principles… Management Control

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Management Control
• The following are common types of Management Control
• Structures
• Organizational structures
• Authority, Roles, Accountability, Responsibility and Separation Of Concerns
• Objectives
• Performance Management
• Task Assignment
• Setting Expectations
• Supervision
• Measurements
• Monitoring

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Project Portfolio Management
• 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
• The three key aspects of project portfolio management are
• Portfolio Definition
• Portfolio Management
• Portfolio Optimization

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Evaluation of Individual Projects
• Technical Assessment
• Cost-Benefit analysis
• Cash-Flow Forecasting

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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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Cost Benefit Evaluation Technology
• The Cost Benefit Evaluation techniques are
• Net Profit

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Cost Benefit Evaluation Technology
• The Cost Benefit Evaluation techniques are
• Payback Period
• The payback period refers to the amount of time it takes to
recover the cost of an investment
• The limitation of the payback period is that it ignores the overall
profitability of the project

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Cost Benefit Evaluation Technology
• The Cost Benefit Evaluation
techniques are
• Return on Investment

• Net Present Value

• Internal Rate of Return
• The IRR indicates the annualized
rate of return for a given
investment—no matter how far into
the future—and a given expected
future cash flow.

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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

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Risk Evaluation

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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
• Delivery of Software
• Development Budget Exceeded Limit
• Estimation of Maintenance Costs
• Response Time Targets
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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

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NPV and Risk
• Risky projects always have a Higher Discount Rate for the Net Present
Value
• calculation
• The risk level may be very high for a specific project due to rise in NPV
value
• High, Medium and Low Level
• Discounted cash flow techniques can be used to evaluate the Net Present
Value of future cash flow taken into account the interest rates and
uncertainty

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Risk in Cost Benefit Analysis
• Cost-Benefit Analysis focuses on the estimated cost defined for the
project compared with the actual costs incurred in the development
process
• Evaluation of risk involves the possible outcomes of the project by
estimating the probability of occurring
• Basically, cost-benefit analysis is done for evaluation of larger projects
which are subject to uncertainty
• It is most appropriate to evaluate a portfolio of projects to determine the
overall Profitability

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Risk Profile Analysis
• Risk profiles are constructed using sensitivity analysis based on factors
that affect the project costs or benefits
• For example, the original estimate of a project was calculated with
plus or minus 5% of risk
• Sensitivity Analysis identifies the factors that yields a success to the
project and decide about whether to carry on with the project or lay off
• The sensitivity analysis takes into account every risk factor, and evaluates
on the possible chances of a particular outcome of the project
• Monte Carlo Simulation Tool

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Risk Profile Analysis

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Risk Profile Analysis

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Risk Profile Analysis

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Risk Profile Analysis

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Risk Profile Analysis

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Risk Profile Analysis

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Risk Profile Analysis

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Risk Profile Analysis

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Risk Profile Analysis

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Risk Profile Analysis

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