Professional Documents
Culture Documents
- Building a house
- Coming to school everyday
- Getting married
- Investigating in user’s computer problem
- A programming coursework
- Writing an Operating system
- Installing a new application (Windows,…)
-Doing undergraduate studies
SOFTWARE PROJECT SUCCESS RATE
A successful project is one that has been delivered on time, on
budget, with the required functionality.
Poor Requirements
Scope Creep Gathering
Time
Quality
Cost Scope
COMMON PROJECT TERMS
Stakeholder: Any person or group of person who may be affect by the project
WHAT IS MANAGEMENT
Planning-- deciding what to be done (Predetermining a course of
action for accomplishing organizational Objectives)
Development costs are one time costs that will not come back after the
project has been completed (e.g. Labor, resources, salaries,…)
Set-up costs (e.g. installation cost, hardware, staff recruitment, training,
….)
Operating costs are costs that tend to come back throughout the
lifetime of the system (e.g. support, maintenance).
Benefits:
Direct (e.g. reduction in staff costs)
Indirect (e.g. reliability, usability)
Intangible (lower staff turnover, improve decision making,..).
- Net profit
Pay-back period
Average Rate of Return (ARR) or Return On Investment (ROI)
Net Present value (NPV)
1. NET PROFIT
FV= PV (1+i) t
FV: Future value
PV: Present value
i: rate
T: no of years
FV= 100 (1+0.1)1
= 110; $ 110 after 1 year;
FV= 100 (1+0.1)2
= 121; $ 121 after 2 years.
PRESENT VALUE OF MONEY
This concept acknowledges the fact that a dollar losses value with time and as
such if it is to be compared with a dollar to be received in t year then the two
must be at the same values.
Discount factor
Df=1/ (1+i/100) t
Example:
The future value of $ 100 today at a rate of 10% is :
PV = FV * DF
= $ 100 * 0.909
= $90.9 in 1 year time
In 2 years time PV= $82.8
4. NET PRESENT VALUE (NPV)
The difference between the present value of the future cash flows
from an investment and the amount of investment.
(PV)=
Project 1
We have cash flow for 5 years
Rate = 15%
Calculate NPV
PV = FV * DF
NPV PROJECT 1
NPV PROJECT 2
NPV PROJECT 3
NPV PROJECT 4
The table shows the timing of cash flow over the lifetime of a
project. The negative cash flow at the beginning represents the
initial investment (cost) and the positive cash flows each year
thereafter show investment return (benefits)
If the project is financed from cash reserves then the cost is the
interest that could otherwise have been earned.
Discount rates reflect a risk premium over Bank interest rates.
Some project may be sensitive to small changes in rate
OTHER CONSIDERATIONS
The later in the life cycle the requirements change, the more
severe the impact on the project.
Member identity*
Group emphasis*
People focus
Unit integration*
Control
Risk tolerance*
Reward criteria*
Conflict tolerance*
Means-ends orientation
Open-systems focus*
*Project work is most successful in an organizational culture where
these items are strong/high and other items are balanced.
STAKEHOLDER MANAGEMENT
Agile means being able to move quickly and easily, but some
people feel that project management, as they have seen it used,
does not allow people to work quickly or easily.
Early software development projects often used a waterfall
approach, as defined earlier in this chapter. As technology and
businesses became more complex, the approach was often
difficult to use because requirements were unknown or
continuously changing.
Agile today means using a method based on iterative and
incremental development, in which requirements and solutions
evolve through collaboration.
Scrum