Effective Project Management-Final

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    Effective Project Management

    by

    Dr. Kanhaiya JethaniTata Consultancy Services

    ISPMC 200321 May 2003

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    Agenda

    Need for Effective Project Management

    Project Success Criteria

    Critical Factors for Effective Project Management

    Barriers

    Case Study

    Learning Organization

    Conclusions

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    Need for Effective ProjectManagement

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    $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 of89%

    84% of projects missed schedule and budget targets

    The Chaos Report - the Standish group report on software application

    development projects in US, 1995

    Scenario in US software industry

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    Effort & Budget

    Overrun

    Poor Quality

    Unimplemented

    Functionality

    Cancelled

    Projects

    So is Software Development a Mission Impossible?

    Why is it so prone to failure?

    Problems in Software Projects

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    Why projects fail ...

    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

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    Project Management

    Application of knowledge, skills, tools and

    techniques to project activities to meet project

    requirements (PMBOK)

    Basic project management processes: Planning

    Executing

    Controlling

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    Effective Project Management

    Software Project Planning (SW-CMMSM) - establish

    reasonable plans

    Without reasonable plans, effective project

    management cannot be implemented (SW-CMMSM)

    Processes critical for effective project management

    Metrics critical for objective project management

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    Project Success Criteria

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    Project Success Criteria

    Fit for use

    Within budget

    Within scheduleDesired Quality

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    Constraints of Project Management

    Scope

    Schedule Cost

    Quality

    Risks

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    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, projectsuccess depends on individual heroics (person

    dependence)

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    Process Focus

    Project Management

    Processes defined in PMBOK

    Basic Project Management

    Processes are the focus of

    SW-CMMSM Level 2 KPAs

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    Critical Factors for Effective Project

    Management

    Setting Customer Expectations

    Requirements Management

    Planning & Controlling

    Change Management

    Configuration Management

    Risk ManagementRework Reduction

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    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

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    Requirements Management

    Prevent scope creep

    Prevent gold plating

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    Planning

    Plan: Theory/ hypothesis

    Improve probability of success: Plan based on estimate / WBS

    Use optimistic, pessimistic, most likely

    estimates

    Use historical data/ expert opinion for

    estimation Replan when significant changes occur

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    Project Planning

    Customer

    demands,

    Deadlines

    Constraints of

    Cost, resources,

    Organizational

    Requirements

    Involves ensuring balance between the two

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    Controlling

    Proactive Tracking

    Tracking without metrics

    90% completion syndrome

    Metrics

    Provide visibility

    Pulse of the project

    Project dashboard - health overview

    Stakeholder involvement -

    customer, sponsor, project team Corrective actions

    Thresholds for taking corrective actions

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    Metrics

    Why Metrics

    bring objectivity in decision

    making

    provide status visibility

    help to set realistic expectations

    focus peoples activities

    help in competitive comparisons

    and benchmarking

    In God we trust, all others bring data.

    - W. Edward Deming

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    Change Management

    Changes in

    Scope

    Cost

    Schedule

    Reserves (contingency/

    buffer) for cost & schedule

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    Configuration Management

    Ensure all requirements are

    satisfied

    Maintain consistency betweenwork products

    Ensure all changes are fully

    implemented

    Baselines are controlled

    Ensure the sum of allcomponents is the desired

    product

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    Risk Management

    Project Management by Risk

    Management

    Involve all stakeholders

    (customer, sponsor, project

    team)

    Quantitative risk management

    Track top 10 (5) risks

    Re-prioritize risks (continuous

    risk management)

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    Rework Reduction

    Do it right the first time -

    training/ induction

    Early defect detection -review/ inspection

    Stop recurring problems -

    causal analysis/ preventive

    measures

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    Barriers

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    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

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    Case Study

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    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

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    Causal Analysis

    Project management practiced as a black art

    The requirements flow in and the product flows out 90 % completion syndrome

    In Out

    Case Study (2 of 5)

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    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

    Case Study (3 of 5)

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    Benefits of Process Changes

    Project management system in place

    Milestone visibility

    In Out

    Case Study (4 of 5)

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    After process changes:

    Project completed in 20 months

    after new team took over

    Acceptance testing by the

    customer

    Case Study (5 of 5)

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    Learning Organization

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    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

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    Conclusions

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    Conclusions

    Effective project management processes critical

    for project success

    Metrics provide visibility and objectivity

    Reuse of organization learning provides

    confidence