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Effective Project Management

by Dr. Kanhaiya Jethani Tata Consultancy Services

ISPMC 2003 21 May 2003

Need for Effective Project Management Project Success Criteria Critical Factors for Effective Project Management Barriers Case Study Learning Organization Conclusions


Need for Effective Project Management


1995 4 .the Standish group report on software application development projects in US.Scenario in US software industry  $250 billion/year spent on software projects  31% of projects cancelled before completion  $81 billion spent on cancelled projects  53% of projects had cost overruns of 89%  84% of projects missed schedule and budget targets The µChaos Report¶ .

Problems in Software Projects Effort & Budget Overrun Unimplemented Functionality Poor Quality Cancelled Projects So is Software Development a Mission Impossible? Why is it so prone to failure? 5 .

6 .

 Lack of project management   Improper Estimation Inadequate planning and tracking discipline  Lack of user involvement  Trying to chase unrealistic targets  Volatility of requirements   Ambiguous Changes to original set  Lack of training 7 .Why projects fail ...

tools and techniques to project activities to meet project requirements (PMBOK)  Basic project management processes: ‡ Planning ‡ Executing ‡ Controlling 8 . skills.Project Management  Application of knowledge.

establish reasonable plans  Without reasonable plans.Effective Project Management  Software Project Planning (SW-CMMSM) . effective project management cannot be implemented (SW-CMMSM)  Processes critical for effective project management  Metrics critical for objective project management 9 .

Project Success Criteria 10 .

Project Success Criteria  Fit for use  Within budget  Within schedule  Desired Quality 11 .

Constraints of Project Management Scope Risks Quality Schedule Cost 12 .

Process Focus  Quality of product depends on quality of processes followed to produce the product  Project success depends on implementation and effectiveness of project management processes  In the absence of effective processes. project success depends on individual heroics (person dependence) 13 .

Process Focus  Project Management Processes defined in PMBOK  Basic Project Management Processes are the focus of SW-CMMSM Level 2 KPAs 14 .

Critical Factors for Effective Project Management 15 .

Critical Factors for Effective Project Management  Setting Customer Expectations  Requirements Management  Planning & Controlling  Change Management  Configuration Management  Risk Management  Rework Reduction 16 .

Setting Customer Expectations  Marketing: Promise the moon  Project: Deliver the moon?  Problem: Expectations mismatch  Resolution: Deliver the image of the moon Involve the customer/end user from planning stage 17 .

Requirements Management  Prevent scope creep  Prevent gold plating 18 .

pessimistic. most likely estimates Use historical data/ expert opinion for estimation Replan when significant changes occur 19 .Planning  Plan: Theory/ hypothesis  Improve probability of success: Plan based on estimate / WBS Use optimistic.

Deadlines Constraints of Cost.Project Planning Customer demands. Organizational Requirements Involves ensuring balance between the two 20 . resources.

sponsor.Controlling  Proactive Tracking  Tracking without metrics 90% completion syndrome  Metrics Provide visibility Pulse of the project  Project dashboard .health overview  Stakeholder involvement customer. project team  Corrective actions Thresholds for taking corrective actions 21 .

Metrics Why Metrics  bring objectivity in decision making  provide status visibility  help to set realistic expectations  focus people¶s activities  help in competitive comparisons and benchmarking ³In God we trust. Edward Deming 22 .´ .W. all others bring data.

Change Management  Changes in Scope Cost Schedule  Reserves (contingency/ buffer) for cost & schedule 23 .

Configuration Management Ensure all requirements are satisfied Maintain consistency between work products Ensure all changes are fully implemented Baselines are controlled Ensure the sum of all components is the desired product 24 .

sponsor. project team)  Quantitative risk management  Track top 10 (5) risks  Re-prioritize risks (continuous risk management) 25 .Risk Management  Project Management by Risk Management  Involve all stakeholders (customer.

Rework Reduction  Do it right the first time training/ induction  Early defect detection review/ inspection  Stop recurring problems causal analysis/ preventive measures 26 .

Barriers 27 .

Barriers  Mindset .Project management is not for techies  No time for project management  Lack of experience or data to support estimation  Too busy in fire-fighting  Unrealistic demands 28 .

Case Study 29 .

Case Study (1 of 5)  Before project management processes: A large project nearing acceptance testing phase (4 years after project start-up) The project team vanishes New team takes over  Project review by new team Only about 25 % of scope satisfied 30 .

Case Study (2 of 5)  Causal Analysis In Out Project management practiced as a black art The requirements flow in and the product flows out 90 % completion syndrome 31 .

Case Study (3 of 5)  Actions taken by new team: Negotiation with customer for revised schedule Close interaction with customer Planning & Controlling Requirements management Change management Configuration management Peer reviews Independent testing 32 .

Case Study (4 of 5)  Benefits of Process Changes In Out Project management system in place Milestone visibility 33 .

Case Study (5 of 5)  After process changes: Project completed in 20 months after new team took over Acceptance testing by the customer 34 .

Learning Organization 35 .

Learning Organization        Use processes to implement project management Use automation to facilitate project management Facilitate reuse through data repository Use historical data for estimation and planning Reuse lessons learnt in past projects Confidence in planning process Repeat the success of past projects  Improve processes and project performance 36 .

Conclusions 37 .

Conclusions  Effective project management processes critical for project success  Metrics provide visibility and objectivity  Reuse of organization learning provides confidence 38 .