CS 414 (IT Project Management)

CS 414:
IT PROJECT MANAGEMENT

Prepared by: Prof. Marian A. Malig-on

SYSTEMS DEVELOPMENT

When an organization needs to accomplish a new task or
change a work process, how does it do it?
It develops a new system or modifies an existing one..

Systems Development is the activity of creating or
modifying existing systems. It refers to all aspects of the
process.

2

UNDERSTANDING THE BUSINESS

IT professionals must understand a company’s business
operations to design successful systems.
Each business situation is different. A system’s analyst
uses a process called business process modeling to
represent a company’s operations and information
needs. It requires business profile and a series of
models that document various business processes.

3

Business profile - is an overview that describes a
company’s overall
functions, processes, organization, products, services, c
ustomers, suppliers, competitors, constraints and future
direction.

To develop a business profile, a system’s analyst (S.A)
investigates a company’s products and services and
Internet opportunities. The analyst also studies
interactivity among the firm’s IS, specialized information
needs and future growth projection.
The S.A then creates series of business models.

4

Business Models – is a graphical representation of one
or more business processes that a company performs.
This make it easier for managers and S.A to understand
day-to-day business operations.

A business process describes a specific set of
transactions, events, tasks and results.

5

PARTICIPANTS IN SYSTEM DEVELOPMENT
Effective systems development requires a team effort.
The team usually consists of stakeholders, users,
managers, systems development specialists(systems
analyst, programmers, project managers etc.) and various
support personnel.

This team is called development team

6

THE ROLE OF SYSTEMS ANALYSIS AND
DESIGN
Systems Analysis and Design is a step-by-step
process for developing high-quality information systems.

An INFORMATION SYSTEM combines IT, people, and
data to support business requirements.

7

SYSTEMS DEVELOPMENT GUIDELINES

With experience as a System’s Analyst, you will develop
your own style and techniques. Although each project is
different, you should consider some basic guidelines as
you build an information system.

8

CONT…
Develop a Project Plan
Prepare an overall project plan and stick to it. If you use
structured analysis-SDLC as a framework for systems
development, complete the phases in sequence. If you
use an O-O methodology, follow a logical series of steps
as you define the components. If you use agile methods,
set the ground rules and be sure they are understood
clearly.

9

CONT…
Involve Users and listen carefully to them.

Ensure that users are involved in the development
process, esp. when identifying and modeling user
requirements in order to understand user needs and
develop a better system. When you interact with
users, put aside any preconceived notions and listen
closely to what they are saying.

10

CONT…
Use Project Management Tools to Identify tasks and
milestones

Regardless of the development methodology, the
system’s analyst must keep the project on track and avoid
surprises. Create a reasonable number of checkpoints-
too many can be burdensome, but too few will not provide
adequate control.

11

CONT…
Develop accurate Cost and Benefit information

Provide accurate and reliable cost and benefit
information. Managers need to know the cost of
developing and operating a system. At the start of each
phase, provide specific estimates and updates these as
necessary.

12

CONT…
Remain flexible

Be flexible within the framework of your plan. Systems
development is a dynamic process, and overlap often
exists between the phases of systems planning, analysis,
design, and implementation.

13

 Duringthe systems planning phase, the IT team
reviews a proposal to determine if it represents
a strong business case.

Business Case – refers to the reasons, or
justification for a proposal.
 A strong business case suggests that the
company should pursue the alternative, above
other options. Analyst then must consider the
company’s overall mission, objectives, and IT
needs.

According to ProSci, the business case must answer
questions such as the following:
Why are we doing this project?
What is the project about?
How does this solution address key business issues?
How much will it cost and how long will it take?
Will we suffer a productivity loss during the transition?
What are the risks of doing the project? if not doing the
project?
How will we measure success?
What alternatives do we have?

ProSci BPR Online learning center offers a business case tutorial
series that focuses on how to write a business case.

MAIN REASONS FOR SYSTEMS PROJECTS

 The starting point for most projects is called
SYSTEMS REQUEST-A formal way of asking
for IT support. It might propose an
enhancement for an existing system, the
correction of problems, the replacement of an
older systems, or the development of an
entirely new system that is needed to support
a company’s current and future business
needs.

Improved
services
Better
Reduced
performance
cost

System
request

Stronger Support for
controls new products
and services

More
information

SAMPLE SYSTEM REQUEST FORM
SYSTEM REQUEST FORM

Date Department:
Submitted by: Location:
Title: Email:

REQUEST FOR: URGENCY
Correction of system issue Immediate attention required
 System enhancement Handle in normal priority sequence
 new system Defer until new system is developed

DESCRIPTION OF THE REQUEST
(ATTACH ADDITIONAL DOCUMENT IF NECESSARY)

To be completed by the IT department
 approved Assigned to IT contact person:
 modified (see attach notes) User:
 rejected (see attach notes) Urgency code: low high
Date: Action:

SYSTEM REQUEST FORM MUST BE:
 Easy to understand
 Include clear instructions

 Include enough space for all required information

 Indicate what supporting documents are needed.

When the request is received, a systems analyst or IT
manager examines it to determine what IT resources
(staff and time) are required for the preliminary
investigation.

EVALUATION OF SYSTEMS REQUEST
 Many organizations assign responsibility for evaluating
systems request to a group of key managers and users
called as Systems Review Committee or a Computer
Resources committee.
 Why?

*provides a variety of experience and knowledge
* establish priorities more effectively than individual
* disadvantages?
 consists of IT director and several managers from other
departments. IT director serves as a technical committee
to ensure that members are aware of critical issues
, problems and opportunities.

SYSTEMS REQUEST
 Must undergo feasibility study to see if it is worthwhile
to proceed further : operational, technical, economic
and schedule feasibility and identify which are feasible
and not feasible.

 Set priorities for the remaining for the remaining.
Highest priority goes to projects that provide the
greatest benefit, at the lower cost in the shortest
period of time.

FACTORS THAT AFFECT PRIORITY
 Will the proposed system reduce costs? Where ?
when? How? How much?
 Will the system increase revenue for the company?
Where ? when? How? How much?
 Wil the systems project result in more information or
produce better results? How? Are results measurable?
 Will the system serve customers better?
 Will the system serve the organization better?
 Can the project be implemented in a reasonable time
period? How long will the results last?
 Are the necessary financial, human, and technical
resources available?

DISCRETIONARY AND NONDISCRETIONARY
PROJECTS

 Is the project absolutely necessary?
Projects where management has a choice in
implementing them are called: discretionary projects.
Example: creating a new report for a user
 Projects where no choice exists are called:
nondiscretionary projects.
Example: adding a report required by federal law ,
annual updates to payroll, tax percentages

FACTORS THAT AFFECT SYSTEMS PROJECT
 Internal factors oExternal factors
 Strategic plan  Technology
 Top managers  Suppliers
 Customers
 Users request
 Competitors
 Information technology
 The economy
department  Government
 Existing systems and
data

Whether you are developing an information system or
constructing a building, the process is just similar.

PROJECT MANAGEMENT

 is the discipline of planning, organizing, securing,
managing, leading, and controlling resources to
achieve specific goals.(general)

 Is the process of planning, scheduling, monitoring and
controlling and reporting upon the development of an
information system. (IT)

PROJECT
 is a temporary endeavor with a defined beginning and
end (usually time-constrained, and often constrained by
funding or deliverables), undertaken to meet unique goals
and objectives, typically to bring about beneficial change
or added value.

 A project isn't something that's part of normal business
operations. It's typically created once, it's temporary, and
it's specific.

 As one expert notes, "It has a beginning and an end." A
project consumes resources (whether people, cash,
materials, or time), and it has funding limits.

A SUCCESSFUL PROJECT
 Must be completed on time
 Within budget

 Deliver a quality product that satisfies users and
meets requirements.

•Project scope
•Budget limits
•Time Project
constraints success
•Quality
standards

If one factor changes, adjustments must be made to keep things in
balance.

Whether a project involves a new office or an information
system, good leadership is essential.
A PROJECT MANAGER OR PROJECT LEADER
 is a professional in the field of project management.
 has the responsibility of the planning, execution, and closing of
any project.
 accountable for accomplishing the stated project objectives.
Key project management responsibilities include creating clear
and attainable project objectives, building the project
requirements, and managing the triple constraint for projects,
which is cost, time, and scope.
 Usually is a seniors system analyst or an IT dept.manager if
the project is large.

PROJECT MANAGEMENT TASKS
No matter what the type of project, project management
typically follows the same pattern:

 Defining
 Planning

 Scheduling

 Monitoring and Controlling

 Reporting

1- DEFINING THE PROJECT

 In this stage, the project manager defines what the
project is and what the users hope to achieve by
undertaking the project.
 includes a list of project deliverables, the outcome
of a specific set of activities.
 The project manager works with the business
sponsor or manager who wants to have the project
implemented and other stakeholders -- those who
have a vested interest in the outcome of the project.

2- PLANNING THE PROJECT
PROJECT PLAN – provides an overall framework for
managing costs and schedules. Project planning takes
place at the beginning and end of each SDLC phase to
develop a plan and schedule for the phases that follow.
 Define all project activities. Lists all activities or tasks,
how the tasks are related, how long each task will take,
and how each tasks is tied to a specific deadline with
costs.
 Define relationships between tasks, so that, for
example, if one task is x number of days late, the project
tasks related to it will also reflect a comparable delay.
Likewise, the project manager can set milestones, dates
by which important aspects of the project need to be
met.

CONT….
 Define requirements for completing the project. Identify
how many people (often referred to as "resources") and
how much expense ("cost") is involved in the project, as
well as any other requirements that are necessary for
completing the project.
 Manage assumptions and risks related to the project.
 Identify project constraints:
schedule, resources, budget, and scope. A change in
one constraint will typically affect the other constraints.

For example, a budget constraint may affect the number
of people who can work on the project, thereby imposing
a resource constraint. Likewise, if additional features are
added as part of project scope, that could affect
scheduling, resources, and budget.

PLANNING PROCESS
* list tasks or activities
Task or activity- is any work that has beginning and
an end and requires the use of company resources such
as people, time, or money.
It’s a basic unit of work that the project manager plans,
monitors, and tracks, so it should relatively small and
manageable.
Example: conducting interviews, designing a report,
selecting software, waiting for delivery of equipments, or
training users.

PLANNING PROCESS CONT…..

In addition to tasks, every project has events, or
milestones.- is a recognizable reference
point that can be used to monitor progress
and manage the project.
Example: an event might be the start of user
training , conversion of system data, or
completion of interviews. A milestone such
as Complete 50 percent of program testing
would not be useful information unless you
could determine exactly when that event
should occur.

Project Managers must:
1- identify all tasks and developing time and cost
estimates for each task.
2- determine the order in which the task must be
performed and assign tasks to specific members of
the project team.
As the work is performed,
3- lead and coordinate the team, monitor events and
4- reports on progress

Using questionnaire requires a series of tasks and events to track the
progress . The illustration below shows the relationship between the tasks
and the events or milestones that mark the beginning and end of each task.

All All
Start work on Questionnaire Tabulation
questionnaire questionnaire
Approved complete
questionnaire distributed returned

Tabulate
Prepare Distribute Await return of
Questionnaire
questionnaire questionnaire questionnaire
response

Event or milestone Task

The figure shows an example of tasks and events that might be involved in the
creation, distribution, and tabulation of a questionnaire.

Notice that the beginning and end of each task is marked by a recognizable
event.

If project to be managed is one large task, break the
project down into series of smaller tasks called a Work
Breakdown Structure (WBS)
Steps:
1- Identify Tasks
Factors to consider:
a.) project size – the amount of work increases dramatically as
project scope increases.
1 2

PROJECT
1 2
Team Members 4 3

Team Members
1 1
2

B
6 3
2 3
5 4
Programs

Programs
PROJECT A

b.) capabilities of project team members also affect time
requirements
less experienced analyst will need more time to
accomplish a task than an experienced team member.
c.) project time requirements, including attitude of users, the
degree of management support and the priority of the project
compared with the other projects within the organization.

2- Estimate Task Completion Time and Cost
Task completion and related cost estimates usually are
expressed in person=days that represent the amount of work
that one person can complete in one day. This approach
however can present some problems.
Example: if it will take 1 person 20 days to perform a particular
task, it might not be true that two people could complete the
same task in 10 days or that 10 people could perform the task
in 2 days.

 Some tasks can be divided evenly so it is possible to
use different combinations of time and people, up to a
point.
Example: if it takes 2 person-days to install the cables
for a new LAN, 1 person might do the task in 2 days, 2
people in 1 day or 4 people in a half day.

 In most systems analysis tasks, however, time and
people are not interchangeable. If one analyst needs 2
hours to interview a user, 2 analysts also will need 2
hours to do the same interview.

 Project managers often use a weighted formula for
estimating the duration of each task. The project manager
first makes 3 time estimates for each task:
Optimistic or best-case estimate (B), a probable-case
estimate (P), and a pessimistic or worst-case estimate
(W).
The manager then assigns a weight, which is an
importance value, to each estimate. The weight can vary,
but a common approach is to use a ratio of B=1, P=4,
and W=1.
 The expected task duration is calculated as follows:
(B+4P+W)
6

Example: A project manager might estimate that a
file-conversion task could be completed in as few
as 20 days or could take as many as 34 days, but
most likely will require 24 days. Using the
formula, the expected task duration is 25
days, calculated as follows:
=25
(20+(4*24)+34)
6

4 FACTORS AFFECTING TIME AND COST
ESTIMATES
1- Project size and scope
 project managers must estimate the time required to
complete ach project phase. To develop accurate
estimates, a project manager must identify all project
tasks, from initial - fact finding to system implementation.
 Regardless of the systems development methodology
used, the project manager must determine how much
time will be needed to perform each task.
 In developing an estimate, the project manager must
allow time for meetings, project reviews, training ad any
factors that could affect the productivity of the
development team.

ESTIMATES CONT…
2- IT Resources
 Companies must invest heavily in cutting-edge technology
and web-based systems to remain competitive in a connected
world.
 Project manager must assemble and guide a development
team that has the skill and experience to handle the project. If
necessary, additional systems analysts and programmers
must be hired or trained and must be accomplished within a
specific period of time.
 After a project gets under way, the project manager must deal
with turn over, job vacancies, and escalating salaries in the
technology sector-all of which can be completed on time and
within budget.

ESTIMATES CONT…
3- Prior experience with similar projects or systems
 Project manager develop time and cost estimates based
on the resources used for similar, previously developed
IS.
 Project manager might not be able to use experience
from projects that were developed in a different
environment. Example: when you use a new web based
database application. In this case, you can design a
prototype or pilot system to gain technical and cost
estimating experience.

ESTIMATES CONT…
4- Constraints
 Must be defined as part of the preliminary investigation of
a project. Constraint is a condition, restriction, or
requirements that the system must satisfy.
 Example: maximums for one or more resources, such as
time, money or people
 Given those limitations, project manager must define the
system requirements that can be achieved realistically,
within the required constraints.
 In the absence of constraints, calculate resources
needed. If present, adjust other resources or must change
the scope of the project.

3- PROJECT SCHEDULING

 A project schedule is a specific timetable, usually in
the form of charts, that show tasks, task
dependencies, and critical tasks that might delay the
project.
 It also involves selecting and staffing project team,
assigning specific tasks to team members, and
arranging for other necessary resources.
 When scheduling,
1- project manager must know the duration of each
task,
2- the order in which the activities will be performed,
3- the start, and end times for each task,
4- and the person(s) assigned to each specific task.

3- PROJECT SCHEDULING CONT…

5- Once the duration for each task is estimated, the
project manager determines whether or not the task is
dependent on other tasks.
Example: you cannot tabulate questionnaires until they
have been developed, tested, approved, distributed,
and returned.
6- After identifying all the task dependencies, he or she
arranges the tasks in a logical sequence.
7- Set starting and ending times for each task. A task
cannot start until all preceding activities on which it
depends are completed. The ending time for a task is
its start time plus whatever time it takes to complete
the task.

3- PROJECT SCHEDULING CONT…

 When scheduling a project, project managers decide
how will they assign people to the work. Assignments
should not be overload or underutilize team members,
and alternate periods of inactivity followed by intense
effort can cause problems and should be avoided.
 Scheduling can be a difficult task, a project manager
must balance task time estimates, sequences, and
personnel to achieve a workable schedule.
 Several graphical planning aids can help a project
manager in the scheduling process.

GANTT CHART
 Developed almost 100 years ago by Henry Gantt.
 Goal was to design a chart that could show planned
and actual progress on a complete chart.

 Gantt chart is a horizontal bar chart that represent a
series of tasks.
 Displays time on the horizontal axis and arranges the
task vertically from top to bottom. The position of the
bar shows the planned start and end of the task and
The length of the bar indicates its duration
On the horizontal axis, time can be shown as elapsed
time from a fixed starting point or as actual calendar
dates.

 A Gantt chart for a very large project would be complex
and might be hard to understand. To simplify, project
manager can combine related activities which are then
called task groups.
 A Gantt chart can show task status in several ways:

 Current date can be represented with vertical line

 Different colors or arrow heads show how much of the
task has been completed and whether or not the work is
on schedule.
 Using contrasting color bars to show task progress.

 Gantt chart can present an overview of the project’s
status, but they do not provide detailed information that
is necessary when managing a complex project

PERT/CPM CHARTS

 Program Evaluation Review Technique (PERT) was
developed by a US navy to manage very complex
projects.
 At approximately the same time Critical Path
Method (CPM) was developed by private industry to
meet similar project management needs.
 The distinction between the 2 disappeared over
time, today the technique is now called PERT,CPM
or PET/CPM called as bottom-up technique, that
analyzes a large, complex project as a series of
individual tasks called as project tasks.

PERT/CPM CHARTS CONT…

To create:
1- identify all the project tasks and estimate how
much time each task will take to perform.
2- determine the logical in which the tasks must be
performed.

Then you can calculate the time that it will take to
complete the project. You also will be able to
identify the specific tasks that will be critical to the
project’s on time completion.

PERT/CHART TASKS

 Project tasks are shown as rectangular boxes arranged
in sequence in which they must be performed.
 Each rectangular box, is called task box with 5 sections.

 Task box format:

Task Name

Start day/date Task ID
Finish day/date Task duration

 Task name – should be brief and descriptive but it does not
have to be unique in the project.
 Task ID – can be a number or code that provides unique
identification.
 Task duration – amount of time it will take to complete a
task. It must be the same time units which can be hours,
days, weeks or months depending on the project.
actual date project starts on a specific date, but can be
measured from point in time such as Day1
 Start day/date – the start is the time that a task is scheduled
to begin.
Example: suppose a simple project has 2 tasks: task 1 and
task 2. Also suppose that task 2 cannot begin until task 1 is
finished. If task 1 begins on Day 1 and has a duration of 3
days, it will finish on Day 3. Because task 2 cannot begin until
task 1 is completed , the start time for Task 2 is Day4 the day
after Task 1 is finished.

In any projects, large or small, tasks depend on each other and must
be performed in sequence not unlike the commands in a software
program.
 Task Patterns – can involve dependent tasks , multiple
successor tasks, and multiple predecessor tasks.
In larger projects, these patterns can become quite complex, and an
analyst must study the logical flow carefully.

 Dependent tasks – when one tasks must be completed one
after another, like the relay race.

Prepare Outline Create Document

Start: day 1 ID: 1 Start: day 6 Task ID
Finish : day 5 Dur:5 Finish: day 14 Dur:9
Dependent task shows that the finish time of Task1, Day5, controls the start date of Task 2 ,
which is Day6 .

 Multiple Successor Tasks
When several tasks can start at the same time, each is
called concurrent task.
Often two or more concurrent tasks depend on a single
prior task which is called a predecessor task.
In this situation, each concurrent task is called
successor task.
Gather data

Start: day 1 ID: 1
Gather data Finish : day 30 Dur:30
Start: day 1 ID: 1
Finish : day 30 Dur:30
Prepare Outline
This example of multiple successor Start: day 31 ID: 4
tasks shows that the finish time for task
1 determines the start time for both Finish : day 40 Dur:10
Tasks 2 and 3

 Multiple Predecessor Tasks
Suppose that task requires 2 or more prior tasks to be
completed before it can start.

Obtain Authorization

Start: day 1 ID: 1 Conduct Interviews
Start: day 16 ID: 3
Create Job Description
This example of multiple predecessor tasks
Start: day 1 ID: 2 shows that the start time for a successor task
Finish : day 5 Dur:5 must be the latest (largest) finish time for any
of its preceding tasks. In the example shown,
Task 1 ends on Day 15, while task 2 ends on
day 5, so task 1 controls the start time for task
3.

 Complex Task Patterns
When various task patterns combine, you must study the facts carefully in order
to understand the logical sequence. A project schedule will not be accurate
unless the underlying task pattern is logically correct.

1 Dependent Tasks: Perform task 1. When
2
task 1 is complete, perform task 2

5
3
6
1 2
4

Dependent Tasks and Multiple Successor tasks: Perform task 1. When
task 1 is complete, perform task 2. When task 2 is finished, start two tasks:
Task 3 and Task 4. When task 3 is complete, start two more tasks: Task 5
and Task 6.

5
3 7
6 8
1 2
4

Dependent Tasks and Multiple Successor tasks and multiple
predecessor tasks: Perform task 1. When task 1 is complete, perform task
2. When task 2 is finished, start two tasks: Task 3 and Task 4. When task 3 is
complete, start two more tasks: Task 5 and Task 6.When tasks 5 and 6 are
done, start Task 7 . Then , Tasks 4 and 7 are finished, perform task 8.

CRITICAL PATH
Once the tasks and relationships have been defined,
you can determine the critical path.
Critical Path- is a series of tasks which, if delayed, would
affect the final completion date of the overall project. In
other words, tasks on the critical path have no slack
time.
Slack time – is the amount of time that the task could be
late without pushing back the completion date of the
entire project.

Example:

Task 2 could be as much as 10 days late before it would have an impact on
the overall project completion date. 20 days of slack time exist for task3, so
task 3 could start up to 20 days late and still not affect the overall project
completion date. If any task along the critical path falls behind schedule, the
entire project is delayed.
Plan training
Start: day 41 ID: 3
Obtain Authorization Hire Analyst
Start: day 1 ID: 1 Start: day 11 ID: 2
Finish : day 15 Dur:15 Finish : day 40 Dur:30 Arrange Logistics
Critical Path: 1-2-4-5 Start: day 41 ID: 4
After the start and finish times were entered, using
the rules, Notice that the overall project has a
duration of 95 days. Announce Training
Start: day 66 ID: 5
A critical path includes all tasks that are vital
to the project schedule. Project managers
always must be aware of the critical path, so
they can monitor the vital tasks and keep the
project on track.

TRANSFORMING A TASK LIST INTO A PERT/CPM
CHART
From the list of tasks, make sure that each task must have
an ID, a description, a duration, and a reference to
predecessor tasks if any.
Steps:
1- Create the work breakdown structure- identify the
tasks, determine task dependencies, and enter the
name, ID, and duration for each task and may include
dependent tasks, tasks with multiple successor tasks, and
tasks with multiple predecessor tasks.
2- Enter start and finish times

AS YOU PROCEED, THERE ARE 3 IMPORTANT RULES
YOU MUST KEEP IN MIND:

 If a successor task has more than one predecessor task,
use the latest finish time of the predecessor tasks to
determine the start time for the successor task,
 If a predecessor task has more than one successor task,
use the predecessor task’s finish time to determine the
start time for all successor tasks,
 Continuing from the left to right, add the task duration for
each task to its start time to determine and enter its
finish time. Again, be very careful not to add too many
days. For example, if a task starts on Day 10 and has a
duration of 5 days, then the finish would be day 14- not
Day 15.

COMPARISON
 GANTT CHART offers a rapid overview that graphically
displays the timing, duration, and progress of each task,
many project managers find PERT/CPM charts more
helpful for scheduling, monitoring, and controlling
projects.
 A PERT/CPM chart displays complex task patterns and
relationships. This information is valuable to a manager
who is trying to address the highest priority issues.
 PERT/CPM are not mutually exclusive techniques.
Project managers often use both methods.

PROJECT RISK MANAGEMENT
Every IT project involves risks that SA and project
managers must address.

Risk- an event that could affect the project negatively.

Risk Management – is the process of identifying,
analyzing, anticipating, and monitoring risks to minimize
their impact on the project.

STEPS IN RISK MANAGEMENT
The first step in risk management is to develop a specific plan.
A basic list would include the following tasks:
1- Develop a Risk Management Plan – includes a review of the
project’s scope, stakeholders, budget, schedule, and any other
internal or external factors that might affect the project. It
should define project roles and responsibilities, risk
management methods and procedures, categories of risks and
contingency plan.
2- Identify the Risks – Risk Identification list each risk and
assess the likelihood that it could affect the project. The details
would depend on the specific project, but most lists would
include means of identification, and a brief description of the
risk, what might cause it to occur, who would be responsible for
responding and the potential impact of the risk.

STEPS IN RISK MANAGEMENT
3- Analyze the Risks – it takes two steps:
a.) Qualitative risk analysis –evaluates each risk by estimating
the probability that it would occur and the degree of impact.
Project managers can use a formula to weigh risk and impact
values or they can display the results in a two-axis grid.
Example, an MS Excel XY chart can be used to display the
matrix. This tool can help a project manager focus on the most
critical areas, where risk probability and potential impact are
high.
b.) Quantitative risk analysis – intended to understand the actual
impact in terms of money , time, project scope or quality. It can
involve a modeling process called what-if-analysis , which
allows a project manager to vary one or more element(s) in a
model to measure the effect on other elements.

 Create a risk response plan – Risk response plan is a
proactive effort to anticipate a risk and describe an
action plan to deal with it. An effective risk response plan
can reduce the overall impact by triggering a timely and
appropriate action.

 Monitor risks - the activity is on going throughout the risk
management process. It is important to conduct a
continuous tracking process that can identify new risks,
notice changes in existing risks, and update any other
areas of risk management plan.

RISK MANAGEMENT SOFTWARE TOOLS
 Most project management software programs, such as :
MS Project, contain various tools that a project
manager can use to assign specific dates as
constraints, align task dependencies, note external
factors that might affect task , track task progress, and
display tasks that are behind schedule.
 Microsoft sells also an Enterprise edition called
Microsoft Office Project Server 2007 which has a built-
in risk management capability that can be used for
large, corporate-wide projects specifically probability
and impact, assign ownership, and track progress to
manage projects more efficiently.

MICROSOFT ‘S RISK MANAGEMENT MODEL
INCLUDES THE FOLLOWING FACTORS:
 Probability, which represents the likelihood that the risk
will happen, expressed as a percentage.
 Impact, which indicates the degree of adverse effect
should the risk occur, on a scale of 1 to 10.
 Cost which indicates the potential financial impact of the
risk.
 Category, which specifies the risk type
 Description, which specifies the nature of the risk
 Mitigation plan, which identifies plans to control or limit
the risk.
 Contingency plan, which specifies actions to be taken
if the risk occurs.
 Trigger, which identifies a condition that would initiate
the contingency plan.

Armed with this information, the IT team can make
a recommendation regarding the risks associated
with the project. Depending on the nature and
magnitude of the risks, the final decision might be
made by management.

4- PROJECT MONITORING AND CONTROL
A project must be planned and scheduled before the
work actually starts. After the project tasks begin, the
project manager concentrates on monitoring and
controlling the project.

Monitoring and Control Techniques
Regardless of whether the project was planned and
scheduled, with project management software or in
some other manner, the project manager must keep
track of the tasks and progress of team members,
compare actual progress with the project plan, verify
the completion of project milestones, and set
standards and ensure that they are followed.

To help ensure that quality standards are met, many
project managers institute structured walkthrough.

A Structured walkthrough is a review of a project team
member’s work by other members of the team.
Systems analyst review the work of other systems
analysts and programmers review the work of other
programmers, as a form of peer review.

Structured Walkthrough takes place throughout the
SDLC and are called design reviews, or testing
reviews, depending on the phase in which they occur.

Maintaining a Schedule
Maintaining a project schedule can be a challenging
task, and most projects run into at least some problems or
delays.

By monitoring and controlling the work, the project manager
tries to anticipate problems, avoid them or minimize their
impact, identify potential solutions, and select the best way
to solve the problem.

The better the original plan, the easier it will be to control the
project. If clear, verifiable milestone exist, it will be simple to
determine if and when those targets are achieved. If enough
milestones and frequent checkpoints exist, problems will be
detected rapidly.

A project that is planned and scheduled with PERT/CPM can
be tracked and controlled using these same techniques.
As work continues, the project manager revises the plan to
record actual times for completed tasks and revises times for
tasks that are not yet finished.

Project managers often spend most of their time tracking the
tasks along the critical path, because delays in those tasks
have the greatest potential to delay or jeopardize the project.

Other tasks cannot be ignored, however. Example: suppose
that a task not on the critical path takes too long and depletes
the allotted slack time. At that point, the task actually become
part of the critical path , and any further delay will push back.

5 – PROJECT REPORTING
 Members of the project team regularly report their
progress to the project manager, who in turn reports to
management and users.
Management

Project manager
collects, verifies, Summary
Team Progress
organizes, and
reports report
members evaluates
information Users

The project manager collects, verifies, organizes, and evaluates the information he
or she receives from the team. Then the manager decides which information needs to
be passed along , prepares a summary that can be understood easily, adds
comments and explanations if needed, and submits it to management and users.

Project Status Meetings
Project managers schedule regular meetings to update
the team and discuss project status, issues, problems,
and opportunities. Although meetings can be time
consuming, most project managers believe they are
worth the effort.
The sessions give team members an opportunity to
share information, discuss common problems and
explain new techniques. The meetings also give the
project manager an opportunity to seek input and
conduct brainstorming sessions.

Project Status Reports
A project manager must report regularly to his or
her immediate supervisors, upper management,
and users which can be given verbally to an
immediate supervisor, reports to management
and users usually are written. Gantt charts often
are included to progress reports to show project
status graphically.

AT WHAT POINT SHOULD YOU INFORM MANAGEMENT
ABOUT THE POSSIBILITY OF COST OVERRUNS,
SCHEDULE DELAYS OR TECHNICAL PROBLEMS?
 One extreme: the overly cautious project manager who
alerts management to every potential and slight delay
The danger here is manager loses credibility over a
period of time, and management might ignore potentially
serious situations.
 Other extreme: project manager who tries to handle all
situations single-handedly and does not alert
management until a problem is serious.
By the time management learns of the problem, little
time might remain in which to react or devise a solution.

 Project manager’s best course of action : lies somewhere
between the two extremes, but is probably closer to the
first.

If you are unsure of the consequences, you should be
cautious and warn management about the possibility of a
problem.
When you report the situation, you also believe the
situation is beyond your control, you might want to
suggest possible actions that management can take to
resolve the situation.

Most managers recognize that problems do occur on
most projects it is better to alert management sooner
rather than later.

SOFTWARE CHANGE CONTROL
 The process of managing and controlling changes
requested after the system requirements document has
been submitted and accepted.
 It can be a real problem because the development process
involves many compromises, and users are never entirely
satisfied with the results.
 Changes to an information system’s requirements are
inevitable.
 The issue therefore is how to create an effective process
for controlling changes that protects the overall project, but
allows those changes that are necessary and desirable.

 The project coordinator rather than the project
manager has primary responsibility for change
control because requests for change most often
are initiated by someone outside the information
systems department.
 A specific process must be in place for handling
requested changes. The process must be formal,
but flexible enough to incorporate desired
changes promptly with minimal impact to the
overall project.
 The procedure for processing requests for
changes to an information system’s requirements
consists of four steps:

1-Complete a change request form. The person
requesting the change completes a System
Requirements Change Request Form.
SYSTEMS REQUIREMENTS CHANGE REQUEST FORM

Name: Job Title:
Department: Date:
Description of change Request:

Reason for Change Request:

Project coordinator/manager completes this following section

Control Number: Date received:
Impact analysis including estimates of resources needed, costs, benefits, and
timetable

 Accept:
 More investiagation needed
 Reject for following reasons:
 Defer until Date:

2 – Take initial action on the request. The
project coordinator enters a sequential control
number and the date on change request
form, reviews the specific change, and then
determines if the change should be
accepted, deferred or rejected for specific
reasons., or investigated further.
If the request is deferred or rejected,, the project
coordinator sends a copy of the request to the
requester..
If the change is to be investigated further, then
the request is reviewed for impact by the project
manager or systems analyst.

3- Analyze the impact of the requested change. The
project manager or a systems analyst must review the
request and determine the impact of incorporating the
change into the information system’s requirements.
Then the manager or analyst prepares an impact
analysis describing the effect of the change on the
information system’s requirements and on costs and
schedules.
The analysis should address the impact of incorporating
the change immediately versus incorporating the
change after the currently configured information system
that has been implemented.

4- Determine the disposition of the request change.
Based on the impact analysis and the project
coordinator’s recommendation, the change might be
accepted, deferred, or rejected. In each of the three
cases, the project coordinator informs the requester of the
action taken.

KEYS TO PROJECT SUCCESS
 To be successful, an information system must
satisfy business requirements, stay within its
budget, be completed on time, and-most
importantly, be managed effectively.
 When a project develops problems, the reasons
typically involve business, budget or schedule
issues.
 Project manager must be able as well to
recognize problems and deal with them
effectively.

 Business issues
The major objective of every system is to provide a solution
to a business problem or opportunity. If the system does not
do this, then it is a failure – regardless of positive reaction
from users, acceptable budget performance, or timely
delivery.
When the information system does not meet business
requirements causes might include:
unidentified or unclear requirements
inadequately defined scope
imprecise targets
Shortcuts or sloppy work during systems analysis
poor design choices
insufficient testing or inadequate testing procedures
lack of change control procedures
changes of organization’s culture, funding or
objectives

 Budget issues
Cost overruns typically result form one or more of the
following:
-Unrealistic estimates that either are too optimistic
or are based on incomplete definitions of the work
to be done
- failure to develop an accurate TCO (Total Cost of
Ownership)
- poor monitoring of progress and inadequate
reaction to early signs of problems
- schedule delays due to unanticipated factors
- human resource factors, including turn over,
inadequate training and motivation issues

 Schedule issues
Problems with timetables and project milestones can
indicate a failure to recognize task dependencies
confusion between effort and progress
poor monitoring and control methods
personality conflicts among team members
turn over of project personnel
poor management techniques- project manager forgets to
plan, staff, organize, supervise, communicate, motivate,
direct, and control properly.

SUCCESSFUL PROJECT MANAGEMENT
 Project management is a challenging task. Project managers
must be alert, technically competent, and highly resourceful,
good communicator with strong human resource skills.
 When project manager first recognizes that a project is in
trouble, what options are available?
alternatives include trimming the project requirements,
adding to the project resources, delaying the project
deadline, improving management controls and procedures.
 When project experiences delays or cost overruns
system can still be delivered on time and within budget if
several less critical requirements are trimmed. The system
can be delivered to satisfy the most necessary requirements
and additional features can be added later as part of a
maintenance or enhancement project.

 If a project is in trouble because of lack of resources or organizational
support
management might be willing to give the project more commitment
and higher priority.
for example: management might agree to add more people to a
project that is behind schedule. Adding staff however will reduce the
project’s completion time only if the additional people can be
integrated effectively into the development team.
 If team members lack experience with certain aspects of the required
technology,
temporary help might be obtained from IT consultants or part time
staff. Adding staff can mean training and orienting the new people
however. Adding more people might increase time necessary to
complete the project. More staffs also means increased costs and
and the potential for exceeding budget limits.
 When project is behind schedule
Typical response is to push back the completion date. This is an
option only if the original target date is flexible and the extension will
not create excessive costs of other problems.

5- CLOSURE OF THE PROJECT

 In this stage, the project manager and business
owner pull together the project team and those who
have an interest in the outcome of the project
(stakeholders) to analyze the final outcome of the
project.

CS 414 (IT Project Management)

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CS 414 (IT Project Management)