Description
This PPT on Planning and Managing Software Projects
Planning and Managing Software Projects 2011-12
Class 4
More on Software
Project Management
Project and Organizations, Project Portfolio Management,
Procurement Management
Emanuele Della Valle
http://emanueledellavalle.org
Planning and Managing Software Projects – Emanuele Della Valle
Credits
! This slides are largely based on Prof. John Musser
class notes on Principles of Software Project
Management
! Original slides are available at
http://www.projectreference.com/
! Reuse and republish permission was granted
2
Planning and Managing Software Projects – Emanuele Della Valle
Today
! Project and Organizations
! Project Portfolio Management
! Procurement Management
3
Planning and Managing Software Projects – Emanuele Della Valle
Class 3 Review
! PMI Fundamentals and Processes
! Project Selection
! Initial documents
• Statement of Work (SOW)
• Project Charter
4
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Understanding Organizations 5
Structural frame:
Focuses on roles and
responsibilities,
coordination and control.
Organization charts help
define this frame.
Human resources
frame: Focuses on
providing harmony
between needs of the
organization and needs of
people.
Political frame:
Assumes organizations
are coalitions composed
of varied individuals and
interest groups. Conflict
and power are key
issues.
Symbolic frame:
Focuses on symbols and
meanings related to
events. Culture is
important.
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Organizational Structures
! Functional
• Engineering, Marketing, Design, etc
• Production and Logistics (P&L) from production
! Project
• Project A, Project B
• Income from projects
• PM has P&L responsibility
! Matrix
• Functional and Project based
• Program Mgmt. Model
• Shorter cycles, need for rapid development process
6
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Functional Organization 7
• Pros
– Clear definition of
authority
– Eliminates duplication
– Encourages
specialization
– Clear career paths
• Cons
– Walls: can lack
customer orientation
– Silos create longer
decisions cycles
– Conflicts across
functional areas
– Project leaders have little
power
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Project Organization 8
• Pros
– Unity of command
– Effective inter-
project
communication
• Cons
– Duplication of facilities
– Career path
• Examples: defense avionics, construction
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Matrix Organization 9
• Pros
– Project integration
across functional lines
– Efficient use of
resources
– Retains functional
teams
• Cons
– Two bosses for personnel
– Complexity
– Resource & priority
conflicts
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Matrix Forms
! Weak, Strong, Balanced
! Degree of relative power
! Weak: functional-centric
! Strong: project-centric
10
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Organizational Structure Influences on Projects 11
Matrix Organization Type
Project
Characteristics
Functional Weak Matrix Balanced
Matrix
Strong Matrix Projectized
Project Manager's
Authority
Little or
None
Limited Low to
Moderate
Moderate
To High
High to
Almost Total
Percent of Performing
Organization's
Personnel Assigned Full-
time to Project Work
Virtually
None
0-25% 15-60% 50-95% 85-100%
Project Manager's Role Part-time Part-time Full-time Full-time Full-time
Common Title for
Project Manager's Role
Project
Coordinator/
Project Leader
Project
Coordinator/
Project Leader
Project
Manager/
Project Officer
Project
Manager/
Program Manager
Project
Manager/
Program Manager
Project Management
Administrative Staff Part-time Part-time Part-time Full-time Full-time
PMBOK Guide, 2000, p. 19
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Organizational Impact
! Form can greatly impact your role
! Determine what skills youll need from which functions
! The new Project Office [1-2]
A. As centralized project management
B. As coach and info. office to project teams
! The Enterprise PMO (EPMO)
[1] http://www.projectperfect.com.au/info_setup_po.php
[2] http://en.wikipedia.org/wiki/Project_management_office
12
Planning and Managing Software Projects – Emanuele Della Valle
Project Portfolio Management
! Portfolio: a group of IT project under a coordinated
management structure
! Different portfolio models are available:
• Economic return model
– NPV, IRR, ROI
• Cost-benefit model
– Can include less tangible factors
• Market research model
– For new products
! Each considers relative value and resource/budget
interactions
13
Planning and Managing Software Projects – Emanuele Della Valle
Project Portfolio Management
5 level approach 1/3
A 5 level approach (from CIO magazine)
1. Create a Portfolio Database
• Information needed
– Project names & descriptions
– Estimated costs, timeframes, staffing
• Benefits
– Spotting redundancies
– Communication across orgs & teams
– Holistic view
14
Planning and Managing Software Projects – Emanuele Della Valle
2. Prioritize Projects
• Try quantifiable rankings
– Risk and return
• Still subjectivity and disagreements
3. Divide into budgets based on type
• To align with business needs
• Ex: utilities (keeping the lights on), incremental
upgrades, strategic investments
15
Project Portfolio Management
5 level approach 2/3
Planning and Managing Software Projects – Emanuele Della Valle
4. Automate the repository
• Input of new data (new projects)
• Automated tracking (PM software integration)
5. Apply modern portfolio theory
• More advanced than most of us need
16
Project Portfolio Management
5 level approach 3/3
Planning and Managing Software Projects – Emanuele Della Valle
Project Portfolio Management
Products - Oracle|Primavera 17
[Source http://www.oracle.com/applications/primavera/primavera-portfolio-management.html ]
Planning and Managing Software Projects – Emanuele Della Valle
Project Portfolio Management
Products - Planview 18
[Source http://www.planview.com/products/enterprise/enterprise-portfolio-management/ ]
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
! Procurement means acquiring goods and/or services
from an outside source
• a.k.a. purchasing or outsourcing
! Know how your project fits-into this model
• Are you building in-house? for hire?
– Thus are you the outside source?
• As a startup? (thus in-house but as basis for the
business itself)
19
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Why Outsource?
! To reduce both fixed and recurrent costs
! To allow the client organization to focus on its core
business
! To access skills and technologies
! To provide flexibility
! To increase accountability
20
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Procurement Management
! Procurement planning: determining what to procure
and when
! Solicitation planning: documenting product
requirements and identifying potential sources
! Solicitation: obtaining quotations, bids, offers, or
proposals as appropriate
! Source selection: choosing from among potential
vendors
! Contract administration: managing the relationship
with the vendor
! Contract close-out: completion and settlement of the
contract
21
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Project Procurement Management Processes and Key Outputs 22
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Procurement Tools & Techniques
! Make-or-buy analysis (build vs. buy)
• Determining whether a particular product or service
should be made or performed inside the organization or
purchased from someone else. Often involves financial
analysis
! Experts
• Both internal and external, can provide valuable inputs
in procurement decisions
23
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Make-or Buy Example
! Assume you can lease an item you need for a project
for $150/day. To purchase the item, the investment
cost is $1,000, and the daily cost would be another
$50/day.
! How long will it take for the lease cost to be the same
as the purchase cost?
! If you need the item for 12 days, should you lease it
or purchase it?
24
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Make-or Buy Solution
! Set up an equation so the make is equal to the
buy
! In this example, use the following equation. Let d be
the number of days to use the item.
$150d = $1,000 + $50d
! Solve for d as follows:
• Subtract $50d from the right side of the equation to get
$100d = $1,000
• Divide both sides of the equation by $100
d = 10 days
! The lease cost is the same as the purchase cost at 10
days
! If you need the item for > 12 days, then purchase it
25
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Types of Contracts
! Fixed price or lump sum: involve a fixed total price for
a well-defined product or service
! Cost reimbursable: involve payment to the seller for
direct and indirect costs
! Time and material contracts: hybrid of both fixed price
and cost reimbursable, often used by consultants
! Unit price contracts: require the buyer to pay the
seller a predetermined amount per unit of service
26
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Cost Reimbursable Contracts
! Cost plus incentive fee (CPIF)
• Buyer pays seller for allowable performance costs plus a
predetermined fee and an incentive bonus
! Cost plus fixed fee (CPFF)
• Buyer pays seller for allowable performance costs plus a
fixed fee payment usually based on a percentage of
estimated costs
! Cost plus percentage of costs (CPPC)
• Buyer pays seller for allowable performance costs plus a
predetermined percentage based on total costs
27
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Contract Types Versus Risk 28
Planning and Managing Software Projects – Emanuele Della Valle
Optional Reading
! McConnell: 7 Lifecycle Planning
! Schwalbe:
• 3 Project Integration Management (62-67),
• 4 Project Scope Management
29
doc_799724363.pdf
This PPT on Planning and Managing Software Projects
Planning and Managing Software Projects 2011-12
Class 4
More on Software
Project Management
Project and Organizations, Project Portfolio Management,
Procurement Management
Emanuele Della Valle
http://emanueledellavalle.org
Planning and Managing Software Projects – Emanuele Della Valle
Credits
! This slides are largely based on Prof. John Musser
class notes on Principles of Software Project
Management
! Original slides are available at
http://www.projectreference.com/
! Reuse and republish permission was granted
2
Planning and Managing Software Projects – Emanuele Della Valle
Today
! Project and Organizations
! Project Portfolio Management
! Procurement Management
3
Planning and Managing Software Projects – Emanuele Della Valle
Class 3 Review
! PMI Fundamentals and Processes
! Project Selection
! Initial documents
• Statement of Work (SOW)
• Project Charter
4
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Understanding Organizations 5
Structural frame:
Focuses on roles and
responsibilities,
coordination and control.
Organization charts help
define this frame.
Human resources
frame: Focuses on
providing harmony
between needs of the
organization and needs of
people.
Political frame:
Assumes organizations
are coalitions composed
of varied individuals and
interest groups. Conflict
and power are key
issues.
Symbolic frame:
Focuses on symbols and
meanings related to
events. Culture is
important.
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Organizational Structures
! Functional
• Engineering, Marketing, Design, etc
• Production and Logistics (P&L) from production
! Project
• Project A, Project B
• Income from projects
• PM has P&L responsibility
! Matrix
• Functional and Project based
• Program Mgmt. Model
• Shorter cycles, need for rapid development process
6
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Functional Organization 7
• Pros
– Clear definition of
authority
– Eliminates duplication
– Encourages
specialization
– Clear career paths
• Cons
– Walls: can lack
customer orientation
– Silos create longer
decisions cycles
– Conflicts across
functional areas
– Project leaders have little
power
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Project Organization 8
• Pros
– Unity of command
– Effective inter-
project
communication
• Cons
– Duplication of facilities
– Career path
• Examples: defense avionics, construction
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Matrix Organization 9
• Pros
– Project integration
across functional lines
– Efficient use of
resources
– Retains functional
teams
• Cons
– Two bosses for personnel
– Complexity
– Resource & priority
conflicts
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Matrix Forms
! Weak, Strong, Balanced
! Degree of relative power
! Weak: functional-centric
! Strong: project-centric
10
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Organizational Structure Influences on Projects 11
Matrix Organization Type
Project
Characteristics
Functional Weak Matrix Balanced
Matrix
Strong Matrix Projectized
Project Manager's
Authority
Little or
None
Limited Low to
Moderate
Moderate
To High
High to
Almost Total
Percent of Performing
Organization's
Personnel Assigned Full-
time to Project Work
Virtually
None
0-25% 15-60% 50-95% 85-100%
Project Manager's Role Part-time Part-time Full-time Full-time Full-time
Common Title for
Project Manager's Role
Project
Coordinator/
Project Leader
Project
Coordinator/
Project Leader
Project
Manager/
Project Officer
Project
Manager/
Program Manager
Project
Manager/
Program Manager
Project Management
Administrative Staff Part-time Part-time Part-time Full-time Full-time
PMBOK Guide, 2000, p. 19
Planning and Managing Software Projects – Emanuele Della Valle
Organizations and Projects
Organizational Impact
! Form can greatly impact your role
! Determine what skills youll need from which functions
! The new Project Office [1-2]
A. As centralized project management
B. As coach and info. office to project teams
! The Enterprise PMO (EPMO)
[1] http://www.projectperfect.com.au/info_setup_po.php
[2] http://en.wikipedia.org/wiki/Project_management_office
12
Planning and Managing Software Projects – Emanuele Della Valle
Project Portfolio Management
! Portfolio: a group of IT project under a coordinated
management structure
! Different portfolio models are available:
• Economic return model
– NPV, IRR, ROI
• Cost-benefit model
– Can include less tangible factors
• Market research model
– For new products
! Each considers relative value and resource/budget
interactions
13
Planning and Managing Software Projects – Emanuele Della Valle
Project Portfolio Management
5 level approach 1/3
A 5 level approach (from CIO magazine)
1. Create a Portfolio Database
• Information needed
– Project names & descriptions
– Estimated costs, timeframes, staffing
• Benefits
– Spotting redundancies
– Communication across orgs & teams
– Holistic view
14
Planning and Managing Software Projects – Emanuele Della Valle
2. Prioritize Projects
• Try quantifiable rankings
– Risk and return
• Still subjectivity and disagreements
3. Divide into budgets based on type
• To align with business needs
• Ex: utilities (keeping the lights on), incremental
upgrades, strategic investments
15
Project Portfolio Management
5 level approach 2/3
Planning and Managing Software Projects – Emanuele Della Valle
4. Automate the repository
• Input of new data (new projects)
• Automated tracking (PM software integration)
5. Apply modern portfolio theory
• More advanced than most of us need
16
Project Portfolio Management
5 level approach 3/3
Planning and Managing Software Projects – Emanuele Della Valle
Project Portfolio Management
Products - Oracle|Primavera 17
[Source http://www.oracle.com/applications/primavera/primavera-portfolio-management.html ]
Planning and Managing Software Projects – Emanuele Della Valle
Project Portfolio Management
Products - Planview 18
[Source http://www.planview.com/products/enterprise/enterprise-portfolio-management/ ]
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
! Procurement means acquiring goods and/or services
from an outside source
• a.k.a. purchasing or outsourcing
! Know how your project fits-into this model
• Are you building in-house? for hire?
– Thus are you the outside source?
• As a startup? (thus in-house but as basis for the
business itself)
19
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Why Outsource?
! To reduce both fixed and recurrent costs
! To allow the client organization to focus on its core
business
! To access skills and technologies
! To provide flexibility
! To increase accountability
20
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Procurement Management
! Procurement planning: determining what to procure
and when
! Solicitation planning: documenting product
requirements and identifying potential sources
! Solicitation: obtaining quotations, bids, offers, or
proposals as appropriate
! Source selection: choosing from among potential
vendors
! Contract administration: managing the relationship
with the vendor
! Contract close-out: completion and settlement of the
contract
21
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Project Procurement Management Processes and Key Outputs 22
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Procurement Tools & Techniques
! Make-or-buy analysis (build vs. buy)
• Determining whether a particular product or service
should be made or performed inside the organization or
purchased from someone else. Often involves financial
analysis
! Experts
• Both internal and external, can provide valuable inputs
in procurement decisions
23
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Make-or Buy Example
! Assume you can lease an item you need for a project
for $150/day. To purchase the item, the investment
cost is $1,000, and the daily cost would be another
$50/day.
! How long will it take for the lease cost to be the same
as the purchase cost?
! If you need the item for 12 days, should you lease it
or purchase it?
24
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Make-or Buy Solution
! Set up an equation so the make is equal to the
buy
! In this example, use the following equation. Let d be
the number of days to use the item.
$150d = $1,000 + $50d
! Solve for d as follows:
• Subtract $50d from the right side of the equation to get
$100d = $1,000
• Divide both sides of the equation by $100
d = 10 days
! The lease cost is the same as the purchase cost at 10
days
! If you need the item for > 12 days, then purchase it
25
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Types of Contracts
! Fixed price or lump sum: involve a fixed total price for
a well-defined product or service
! Cost reimbursable: involve payment to the seller for
direct and indirect costs
! Time and material contracts: hybrid of both fixed price
and cost reimbursable, often used by consultants
! Unit price contracts: require the buyer to pay the
seller a predetermined amount per unit of service
26
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Cost Reimbursable Contracts
! Cost plus incentive fee (CPIF)
• Buyer pays seller for allowable performance costs plus a
predetermined fee and an incentive bonus
! Cost plus fixed fee (CPFF)
• Buyer pays seller for allowable performance costs plus a
fixed fee payment usually based on a percentage of
estimated costs
! Cost plus percentage of costs (CPPC)
• Buyer pays seller for allowable performance costs plus a
predetermined percentage based on total costs
27
Planning and Managing Software Projects – Emanuele Della Valle
Procurement Management
Contract Types Versus Risk 28
Planning and Managing Software Projects – Emanuele Della Valle
Optional Reading
! McConnell: 7 Lifecycle Planning
! Schwalbe:
• 3 Project Integration Management (62-67),
• 4 Project Scope Management
29
doc_799724363.pdf