Integrated Software Project Fundamentals in project management Jean-Louis Binot 15/09/2014...

Fundamentals in project management1

Integrated Software ProjectFundamentals in project management

Jean-Louis Binot

15/09/2014


Agenda

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Challenges of IT ProjectsChallenges of IT Projects33

Organizing an IT projectOrganizing an IT project44

IT Applications and IT ProjectsIT Applications and IT Projects22

Objectives of this sessionObjectives of this session11

Project Management & deliverablesProject Management & deliverables55


Objectives of this session

Explain why project management is important for Information Technology

Present the role of project manager and the fundamentals of project management

Explain the requirements of this course in terms of project management

Introduce project management templates which will be used in the course

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Agenda

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Why Project Management ?

In a company, IT supports the business through IT applications and IT services

Implementation of a new IT application, or rolling out of IT services, is done through IT projects

IT projects are difficult to execute, and require a specific discipline to succeed: Project Management

Project management is a management activity, which can involve large teams and budget. The role of project manager may be part of a typical IT career path

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An IT Application

Is a computer software designed to help the user to perform specific tasks

Automates business processes in order to produce business benefits, in four possible categories: Increase sales and hence revenues

Reduce costs and hence increase profits

Increase quality of product / service & customer satisfaction

Ensure compliance to regulations

Needs to store, retrieve, and process data in order to achieve that automation and thus typically involves some form of database

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Example of a large IT project: Vehicle order mgt

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Sales person

Benefits: reduce costs &increase customer satisfaction

Challenges- Project size (300 M€, 30

countries)- Performance: < 2 secs in Europe

- Interface with ERP system- Accurate ETA- Complexity of algorithms- Data accuracy, availability

- Customisation

Customer

Factory

New built

From stock

Production planning

Factory Stocks

Car sale + ETA

Order

CustomerSales person Customer

Logistic routes

Hub Distributor Vendor

ERP (Enterprise Ressources Planning)orders, car status over Europe, car allocation to order

route optimization, ETA calculation…


IT applications support the business

All important IT application issues will have business impacts

Application availability matters (must “keep the lights on”) Challenge both for application teams and for operational management

Application performance matters Delays have business impact

Respecting deadlines matters Many deadlines are “business critical”: they can’t be moved without impact

Data accuracy matters Impact of data errors goes from inconvenience to critical liability

Application reliability matters Bugs have business consequences

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Some of these criteria are important for your application as well


Agenda

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10 Fundamentals in project management

Is there a missing level ?

IT added value in the enterprise : a maturity model

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TransactionalIT acts as “order taker” fulfilling requirements specified by businessIT only focuses on technology and operational efficiency

Incompetent IT is not even able to execute on business requests

PartnerIT interacts with business to understand and specify business requirementsIT may recommend alternate solutions

ConsultativeIT understands both business and technology issuesIT is proactive in recommending solutions for competitive advantage

Strategic leaderIT is viewed as a strategic leader within the enterpriseIT is a partner in the planning and execution of the business strategy

The added value of IT depends on its capacity to support the business


The difficulty of delivering IT projects

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How many projects realy succeed ?The Standish group (IT project management research and consulting firm) delivers each year a “Chaos report” surveying project success rate

The first report (1995) was a landmark:

16% success 31% failure 51% challenged

http://www.standishgroup.com/newsroom/chaos_2009.php


More recent Standish data (2012)

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Slight improvement in project success rate, but still many failures

2004 2006 2008 2010 20120%

10%20%30%40%50%60%

39%

18%

43%

Project results

Successful Failed Challenged

Better results with agile methodologies for small projects


Why so many project failures ?

Requirement issues

Architectural or technical mistakes

Lack of organization or discipline

Difficulty of integrating / managing all aspects

Difficulty of managing consensus within team

Difficulty of managing consensus between stakeholders

Competition for scarce budget and resources

Management pressures

Psychology and politics …

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You will face at least part of these challenges


Consequences on application life cycle

Because IT projects are difficult and costly, application renewal is slow. Applications tend to exist for a long time (e.g. 2 y project, 15/20 y maintenance !)

The highest cost comes from maintenance, hence the importance of quality

In most cases, after a few years, the original developers are no longer around

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A typical application lifecycle, with defect rate evolution


Agenda

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What is a project ?

A project is a temporary endeavor undertaken to create a unique product or service (PMI) Temporary: it has a definite start and a definitive end

Unique: it is not repetitive (not production nor maintenance)

A project has three main dimensions

Time (respect of deadline / schedule)

Cost (respect of budget, which can be “fixed price”)

Quality (of the delivered product / outcome)

A project involves many additional domains, such as Scope, human resources, communication, risks, procurement, integration…

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The project life cycle (a typical view)

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IDENTIFY

& QUALIFY

CONTRACTPROPOSE Go/No GoGo /No Go

N N

Y Y

PROJECT DEFINITION PHASEPROJECT DEFINITION PHASE PROJECT DELIVERY CYCLEPROJECT DELIVERY CYCLE

Project selection- which projects include in yearly plan (portfolio)?- for IT provider: whichbids to work on ? Opportunity profile Business case Risk analysis

PROJECTEXECUTE

PROJECTCLOSE

Project definition Updated business case Technical solution High level plan Project costs estimate Updated risk analysis

Selection of supplier & contracting Milestones Specific clauses Subcontracts Updated risks Updated

financials

Follow-up cycle Schedule / plan Estimates Quality Staffing Skills & coaching Scope mgt Customer mgt Risks & counter Financials

Closing internal, client, subs

Organizational learning

PROJECTINITIATE

Project organization Project governance

internal, client, subs

Handover from opportunity phase

Project Baselines scope, schedule, cost

Staffing


Project Definition Phase

Project Opportunity Is the project motivated by business needs / strategy ?

Are there enough business benefits generated by its outcome ?

Feasibility Have we identified a high level technical solution, schedule, costs, and risks ?

Are these acceptable / manageable ?

ROI Is the Return On Investment acceptable given business needs?

In this case the project definition phase has been done by the academic team(cf. document “Engagement pédagogique”)

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The project life cycle ./.

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IDENTIFY

& QUALIFY

CONTRACTPROPOSE Go/No GoGo /No Go

N N

Y Y

PROJECT DEFINITION PHASEPROJECT DEFINITION PHASE PROJECT DELIVERY CYCLEPROJECT DELIVERY CYCLE

Project selection- which projects include in yearly plan (portfolio)?- for IT provider: whichbids to work on ? Opportunity profile Business case Risk analysis

PROJECTEXECUTE

PROJECTCLOSE

Project definition Updated business case Technical solution High level plan Project costs estimate Updated risk analysis

Selection of supplier & contracting Milestones Specific clauses Subcontracts Updated risks Updated

financials

Follow-up cycle Schedule / plan Estimates Quality Staffing Skills & coaching Scope mgt Customer mgt Risks & counter Financials

Closing internal, client, subs

Organizational learning

PROJECTINITIATE

Project organization Project governance

internal, client, subs

Handover from opportunity phase

Project Baselines scope, schedule, cost

Staffing

The scope of this Integrated software projectcovers the Project Delivery phase(with a limited set of deliverables)


Project delivery phase: Integrated sotfware project

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Project proposal

Project initialization

Project execution

Delivery control

Project closing

Projectoffice

OrganizationalLearning cycle Project review cycle

Start in orderly fashion- Avoid cost leakage- Avoid costly

mistakesApproval based on accurate estimates

Improve efficiency(estimates, reuse, KPIs…)

Project trackingConsistent approach to reduce mistakes and increase efficiency (standards, templates, coaching)

Deliver on time, on budget, with quality

Orderly close projectPresent resultsReflect on lessons learned

Student teams

Delivery coach

Project delivery follows a systematicdelivery cycle


How to structure the project delivery phase ?

Several types of IT projects Application development Application Rollout / Service rollout ERP (Enterprise Resource Planning) Consulting …

For application development, at least two approaches Classical approach (planning & control) Agile methodologies

We will follow the classical approach, to highlight project management tasks

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How to structure the project delivery phase ? ./.

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Which % of project efforts is typically used by coding ?

RequirementsFunctional analysis Architecture

DevelopmentUnit testing(coding)

Functional, integration, performance, stress, regression testing

CustomerAcceptance

Warranty

Internal gateway

Internal gateway

Customer gateway

20% 35% 25/30% 5/10% 10%

To be added: Project mgt 15%; contingency >= 10% linked to risks; quality 2-3 %

Init meeting

Case of an IT application development project

Efforts

Coding is only 1/3 of a project activity There are challenges at every stage A good project has gateways (go / no go points)


Calendar and phases: Integrated software project

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Phase structure and duration is indicative. Project teams may adjust them. Final deadline and dates of reviews are fixed. Final project defense will occur in April.

Initialisation & requirements Architecture & Design Development Development Tests et closingChristmas & exams

15/09KIck-off

15/10End of phase

15/11End of phase

28/02End of phase

31/03Final project deadline

15/12Project freeze

02/02Project restart

13/10Review 1

10/11Review 2

23/02Review 3

23/03Review 4


Challenges by phase: requirement analysis

Old joke, still true Customer may have only a high level view of

his needs and be unclear He is often not IT/process literate But he has to accept system and pay bill

Challenges for IT project Elucidate requirements (first in NL) Detect incompleteness, inconsistency, risks Formalize functional requirements and data Obtain sign-off in reasonable time frame

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Requirement analysis: Integrated software project

You are given requirements, gathered from real users for a needed application

They have been collected and written with care; however: Like all initial requirements, they are written in natural language, not formally specified

They may be incomplete

There may be inconsistencies

There may be ambiguities

Some requirements may require more expensive solutions and may lead to design compromizes

Your first task is thus to analyze, understand and clarify the requirementsto produce a reasonable functional & non functional Requirements deliverable Try to structure requirements in a meaningful functional description facilitating design & coding

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Challenges by phase: architecture & design

Functional specifications state what the proposed system is to do, whereas architecture & design is about how the system is to be constructed.

This seminar being about project management, the topic will not be covered here

Some obvious advices: Do not rush into coding without some reasonable system architecture and data design

Pay attention to how you can possibly divide that work among the team

Once again, it will provide a sounder basis to divide coding efforts and integrating results

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Challenges by phase: coding

Coding is subject to competing constraints Highest cost comes from maintenance, and applications are long-lived; typically original

developers are no longer around => need for software quality

To be competitive, the project must meet deadline and cost targets=> need for speed and efficiency

Typical industry requirements for the coding activity Reuse (libraries of routines, frameworks)

Coding must be teamwork Quality (correctness if possible, but also testing) Standards (documentation, naming conventions…) allowing maintenance

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Coding: Integrated software project

Like in any IT project, you will need to balance efforts: You are expected to deliver a running application by final deadline

This application will be assessed and needs to have sufficient quality

As you are working as a team, coding tasks needed to be shared: Fairly (everybody must support his/her share)

Adequately, in order to allow individual work to progress without too many dependencies on separate modules, which can then be integrated together

The document « Coding style » (course Projet de Programmation, INFO0030, BAC Sciences Info) is an appropriate reference for coding standards in C

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Challenges by phase: testing

Testing should be documented (test plans, test results) Unit tests are typically a developer’s responsibility Other tests are ideally done by other people Acceptance test criteria should be agreed before you start coding

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The classical “V” of testing


Testing: Integrated software project

You may not have the time and the resources to implement a full testing strategy as described in the previous slide. However you should at least foresee

There are no official acceptance tests this year. The application will be assessed on its quality. To reach sufficient quality:

Unit tests are strongly recommended They are performed by each developer on his/her own code

They do not necessarily need to be documented but are part of individual discipline

Some quality control (i.e. peer review) may be organized

Final tests checking the functional and system aspects of your resulting application are mandatory They need to be documented

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Evaluating your resulting application

All important IT application issues will have business impacts

Application availability matters (must “keep the lights on”) Your application should be able to run without any frequents interruptions

Application performance matters Your application should have reasonable performance

Respecting deadlines matters Your application must be delivered by the deadline

Data accuracy matters Data loaded in your application must be correct

Application reliability matters Your application should be as far as possible free of bugs

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32 Fundamentals in project management 15/09/2014

Agenda


Organizing your IT projectOrganizing your IT project44





Role of the Project Manager

Project : The mission of Project Manager is to deliver the result of the project On time Within budget With quality

Manager: The Project Manager is not a content expert nor an administrator. His job is to manage the project Planning Assigning tasks, delegating Monitoring and controlling Assessing risks, making decisions, anticipating Leading and motivating a team Communicating and negotiating

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In this Integrated software projectThe role of project manager will be

rotated by phase to all (4) team members


Project Management standards

Standards provide methods, templates… to assist the project manager in properly managing a project

Several important international standards exist, a.w. PMI: Project Management Institute

(publishes the PMBOK: Project Management Book of Knowledge)

Prince 2 (PRojects IN Controlled Environments)initially developed for the British government, now recognized as an international standard

They also provide certification of project managers

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Project manager deliverables in the delivery cycle: Initialisation

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Project proposal


Project execution

Delivery control

Project closing

Projectoffice








Student teams

Delivery coach


Activities & deliverables : initialization phase

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Activities Clarify and manage project objectives (scope, deadline, budget, assumptions, etc.)

Define project organization

Break down the project into tasks, assign them, monitor performance, detect deviations and take counter-measures

Manage project costs against budget, make forecast of cost evolution, detect deviations and take counter-measures

Clarify and confirm user requirements

Deliverables (mandatory in red) Project charter/ Project statement

included in Project Statement

Project plan (initial plan = baseline; may be included in Project Statement)

Project costs (initial cost plan = baseline; may be included in Project Statement)

Final requirements document

ProjectManager

Team


Project Statement– typical agenda

The project charter summarizes initial mission of the Project Manager and is his first important deliverable

Project purpose and business justification

Specific objectives of the project

Background and stakeholders (key people having stake in / decision on the results)

Project scope: in scope, out of scope

Project schedule, including main deliverables with their milestones

Project budget

Communication plan (including reviews, steering committee)

High level risk management plan (risks & counter-actions)

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A template is provided


Project Organisation – typical roles

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Project Manager

Business Modeling

Team Lead

BusinessAnalysts

Architect Lead

Architects

FunctionalTeam Lead /Testing lead

FunctionalAnalysts /

Testers

DevelopmentTeam Lead

Developers

DeploymentManager

Project OfficerQuality

Manager

In your case: Small team

3 roles: Project Manager Project Officer Team Member

Project Manager & Project Office roles need to rotate to all team members This is part of your project

organisation

Team members are assigned to tasks as you see fit Pr Manager and Pr Officer are

also team members !


Project planning

What is a project plan ?

PMI: a formal, approved document used to guide both project execution and project control…which document approved scope, cost, and schedule baselines

The Project Charter refers to the document that the project sponsor and project manager use to agree on the initial vision of the project (scope, baseline, resources, objectives...) at a high level.

The project management plan is the document that the project manager builds to describe in more details the planning of the project and its organization

PRINCE2: a statement of how and when a project's objectives are to be achieved, by showing the major products, milestones, activities and resources required on the project

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A note on project control psyhological challenges

Many (maybe all) people have a natural resistance against control: « I do not need control, I know what I am doing »

« You do not trust me »

« Your control is costing me time »

Team spirit, motivation, autonomy, delegation ARE important

However, in addition to these, a project MUST be controlled or it will likely fail

Control should be willingly accepted by all team members, including the project manager, as part of a common team discipline Project control needs to be done in a positive way whenever possible: understand how tasks are

progressing, identify issues, but also try to provide support or find alternate solutions

Project control is not about doing the job of the other person in his/her place

Project control is not the same as quality control (which may also happen)

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Project Planning: how is it done ?

The purpose of a project plan is to exercise control on your project, by telling a) where you had planned to be, b) where you are and c) what is the deviation between the two

In order to detect issues and take corrective actions to bring your project back on track

To do that your plan needs to be sufficiently detailed to give visibility and control Typically it should use tasks of a few days elapsed or a few man-days

To measure deviations you need two versions of the plan The initial plan (baseline) cannot be changed once established. Often limited to high level milestones

The actual plan status includes as many task details as appropriate

The plan needs to be refined after the requirement analysis phase

The choice of tool to maintain the plan is not the most important issue

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42 Fundamentals in project management 15/09/2014

Assessment (10 interview sessions @ 0.5 mds; assessment 5 mds) 10 mds

Action plan (3 mds draft, 1md review, 1md finalization) 5 mds

Total 15 mds

21/02 20/03 31/03

Kick-off Assessment review Action plan reviewwith Executive Committee

Planning

Efforts (consultant)

Assessment Action plan definition Implementation

13/03assessment

draft

27/03action plan

draft

Activities and deliverables

1. Assessment of existing status Deliverable: status report (Powerpoint)

2. Definition of improvement plan Deliverable: action plan (Powerpoint)

A simple plan in Powerpoint (consulting project, 1 team member)

In real-life fixed price projects a contingency would be added.


A reasonably simple plan in Excel (4 team members)

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Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8Milestones Review 15/10 Review 15/11Schedule planPhase 1Project Initialisation PMRequirement Analysis All

Phase 2Analysis of part 1 TM1 3 3Analysis of part 2 TM2Analysis of part 3 TM3Analysis of part 4 TM4Analysis - integration TM1, TM2Architecture

Preparing review PM

Resource plan

TM1 Req Anal Req Anal Req Anal Req Anal F.A. Part 1 F.A. Part 11 1 1 1 3 3

TM2

THIS IS ONLY AN EXAMPLE


A more complex schedule in MS Project

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Integrated software project: input for planning

A project plan should include a schedule view and a resource view

Think about how you break the work, especially for analysis and architecture

A good architecture makes it easier to divide work for coding and testing

Requirements analysis requires another type of breakdownThink about organizing them in categories, brainstorming sessions,clarification sessions with users

In brainstorming sessions do not forget to appoint one or several note takers.It could be the project officer, but not necessarily.

A basic template is provided. Other free templates & tools exist on the web

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Estimating: key points

Estimating is used to: Define the initial size / budget of the project Build your project plan, by allocating realistic efforts to task Track progress and costs (both are linked)

The purpose of cost tracking is to exercise control on your budget/efforts by telling a) how much budget you still have, b) how much you will spend, c) what is the difference In order to detect issues and take corrective actions to bring your project back on track

To answer that question the Project Manager needs two views of its budget The initial budget or baseline, which cannot be changed by the project manager himself. The actual cost Estimate At Completion (EAC): the current estimate of what the total cost will be

Estimating requires to break down the project into tasks, and count efforts Size of the tasks must be small enough to do that, but not too small (e.g. a few man-days)

Estimates should be refined after requirements and after analysis/architecture.

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Example of estimating method (partial)

Actor Type Description Quantity Weight Factor Subtotal

Simple Defined API 3 1 3

Average Interactive or protocol-driven interface 2 2 4

Complex Graphical user interface 1 3 3

Total Actor Points 10

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Use Case Points (Schneider & Winters, 2001) Based on Universal Modeling (UML) approach;

distinguishes actors, use cases

Use Case Points = Total * corrective factors (technology, experience) Efforts= Use Case Points * Effort Rate (e.g. 20 mh / point)

Use Case Type Description Quantity Weight Factor Subtotal

Simple Up to 3 transactions 3 5 15

Average 4 to 7 transactions 2 10 20

Complex More than 7 transactions 1 15 15

Total Use Cases 50


Cost Control and Financial indicators

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BAC

Budget

InitialBudget

CR

Actuals

ACWP(recognized

revenue)

ETC

EAC

ACWP/EAC =%

completionEarned

Value = BAC *

% completion

Budget

Variance

Cost

Variance

Billing

Billed

WIP

At each review, the Pr Mgr re-evaluates the Estimate to Complete (ETC) based on plan and status.What is still needed is not simply budget minus actual costs.


Main Financial Indicators

BAC Budget At Completion

BCWS Budgeted Cost of Work Scheduled

ACWP Actual Cost of Work Performed

ETC Estimate To Complete

EAC Estimate At Completion

PC Percentage complete (ACWP/EAC)

BCWP Budgeted Cost of Work Performed - Earned Value(can be estimated as BAC*PC)

BV Budget Variance (BAC-EAC)

SV Schedule Variance

CV Cost Variance (BCWP-ACWP)

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Reviewing estimates – basic example

BAC(budget)

Actuals(ACWP)

ETC(Estimate to complete)

EAC(Estimate at completion)

BV(budget variance)

% Complete(ACWP/EAC)

Assessment 10 13 5 18 8 72%

Action Plan 5 0 6 6 1 0%

Total 15 13 11 24 9 (60%) 54%

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21/02 20/03 31/03

Planning Baseline and statusAssessment Action plan definition Implementation

13/03assessment

draft

27/03action plan

draft

Budget baseline and status

Schedule variance: 7 days (assessment completion estimate: 22/03 + 5 = 27/03)

Budget variance: 9 person-daysEarned value (pd rate 1000 euro): 72%*15=10.8 person/days or 10800 euro

Actual status 22/3


Estimating: Integrated software project

You can’t challenge the budget (300 h per person)

You can’t challenge the deadline

Estimation still need to be done to Allocate efforts to tasks and build an appropriate project plan

Track efforts, detect deviations and take counter-measures

To track efforts, each team member must keep track of how much effort is spent on each task

Be able to explain budget deviation at end of project

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Project manager deliverables in the delivery cycle: Execution

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Project proposal


Project execution

Delivery control

Project closing

Projectoffice








At each cycle (at least monthly):

- review status and risks

- reassess planning and estimates

Student teams

Delivery coach


Activities & deliverables : execution phase

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Activities Assign tasks, monitor project plan and performances, detect deviations and take counter-measures

Manage project costs against budget, make forecast of cost evolution, detect deviations and take counter-measures

Periodically report on project status (in project review)

Identify risks and issues and take counter-measures

Implement and follow-up needed actions

Realise functional analysis and architecture

Realise coding

Deliverables (mandatory in red) Project plan (actual status)

Project costs (actual status)

Project status report

Risks & issues status register

Tracking of decisions and actions (action list, minutes of meetings …)

Functional & architecture document(s)

Application code

ProjectManager

ProjectOfficer

Team


What is a project review ?

A Project Review is a meeting between the project team and the delivery coach, where

The whole team attends and may contribute

The project manager presents and explains the Project Status Reportthat he has prepared with support of the team

The project manager brings also any other useful document, such as the current Project Plan, details of project costs, drafts of deliverables, etc.

Each point of the Project Status Report may be the opportunity of questions, clarification, advise, request for actions or modifications for next review…

The meeting is an exchange of information, and also an opportunity for the project to bring up issues and receive assistance and coaching

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A template is provided


Project manager deliverables in the delivery cycle: Closing

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Project proposal


Project execution

Delivery control

Project closing

Projectoffice








At each cycle (at least monthly):

- review status and risks

- reassess planning and estimates

Student teams

Delivery coach


Activities & deliverables : closing phase

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Activities

Make sure all tasks are properly done, summarize project results (deliverables, schedule, cost), reflect on lessons learned

Deliver application, with evidence of (acceptance) testing

Present final project results to stakeholders, management, steering commitee

Deliverables (mandatory in red)

Project completion report

Working application softwarewith test results

Final defense

Team

Team (PMcoordinates)

Team

Project Management57

Phases, roles and deliverables

Responsibility Phase 1 Phase 2 Phase 3 Phase 4

Project Manager(deliverable to submit to project review)

Project statementProject plan & costs

Project status report 1Project plan & costs



Project officer(deliverable to submit to project review)

Minutes of team meetingAction list




Team(deliverable must be present in final result)

Functional requirements Architecture & design Code TestsProject completion report (end march)Final presentation (in April)

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Responsibility does not mean “doing alone”. Team members are expected to contribute their input


What does it take to be a good project manager ?

According to survey by ESI International of project managers following their training

Inspires a Shared Vision

Good Communicator

Integrity

Enthusiasm

Empathy

Competence

Ability to Delegate Tasks

Cool Under Pressure

Team-Building Skills

Problem Solving Skills

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I would add:- Anticipation- Strength of character


Conclusion

Project Management is a management role not a leading content / expert one

not an administrative one

As such it is well suited for IT engineers

This project should offer each of you the opportunity to experience it

Do not hesitate to request advice

Best success to all of you

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Integrated Software Project Fundamentals in project management Jean-Louis Binot 15/09/2014...

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