Information Technology Project

Management – Fifth Edition

By Jack T. Marchewka
Northern Illinois University

1-1 Copyright 2015 John Wiley & Sons, Inc.

 The Nature of Information Technology
Projects

Chapter 1

1-2 Copyright 2015 John Wiley & Sons, Inc.

Learning Objectives
 Understand why information technology (IT) projects are
organizational investments..
 Understand why projects are planned organizational change and
why they must align with an organization’s business strategy.
 Define what a project is and describe the attributes of a project.
 Define the discipline called project management.
 Understand the relationship among project portfolios, programs,
and projects.
 Understand how the disciplines of information technology and
project management have evolved together and have led to how
we manage projects today
 Understand the current state of IT project management.
 Understand why some projects fail and how to improve the
likelihood of success.
1-3 Copyright 2015 John Wiley & Sons, Inc.
Introduction
 Information Technology (IT) projects are organizational
investments that require
 Time
 Money
 And other resources such as people, technology, facilities,
etc.
 Organizations expect some type of value in return for this
investment
 IT projects enable the integration of technology in new
products, services, or processes that can change existing
relationships between an organization and its customers and
suppliers as well as among the people within the organization.

1-4 Copyright 2015 John Wiley & Sons, Inc.

The PMBOK® Guide’s Definitions for …

• A project is a temporary endeavor

undertaken to create a unique product,
service, or result.
• A project manager is the person assigned
by the performing organization to achieve
the project objectives.

1-5 Copyright 2015 John Wiley & Sons, Inc.

Project Attributes

 Time Frame – start and end time

 Purpose (to provide value!)
 Ownership/champion –sponsor (some organizations)
 Resources (the triple constraint) – cost, time, scope
 Roles
 Project Manager
 Project Sponsor
 Subject Matter Expert (SME) – the expert in particular area
 Technical Expert (TE) – the one who develop the system
 Risk & Assumptions
 Interdependent Tasks – semua members kena on tim
 progressive elaboration – steps & increments
 Planned Organizational Change – the work culture need to change,
so we need to plan the changes and
 Operate in Environments Larger than the Project Itself – 4:50
explain
1-6 Copyright 2015 John Wiley & Sons, Inc.
What is Project Management?
 Project Management is the application of
knowledge, skills, tools and techniques to project
activities to meet project requirements.
 Project Portfolio – a collection of diverse projects
managed collectively to align with the organization’s
strategy and overall plan to achieve competitive
advantage.
 Program – a collection of projects within a project
portfolio whose activities are coordinated so that the
benefits of the program are great than the sum of the
benefits of the individual projects.
7 Copyright 2015 John Wiley & Sons, Inc.
What is Project Management?
 Project Management is the application of
knowledge, skills, tools and techniques to project
activities to meet project requirements.
 Project Portfolio – a collection of diverse projects
managed collectively to align with the organization’s
strategy and overall plan to achieve competitive
advantage.
 Program – a collection of projects within a project
portfolio whose activities are coordinated so that the
benefits of the program are great than the sum of the
benefits of the individual projects.
8 Copyright 2015 John Wiley & Sons, Inc.
 Project Management and Information
Technology

1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s

First EDP PC Network Globalization

Electronic Era Era Era
Computer

1-9 Copyright 2015 John Wiley & Sons, Inc.

The State of IT Project Management
 The Standish Group (the CHAOS studies) and others
have studied IT project success and failure.
 In general, a successful project is defined as one that
is completed on time, within budget, and including all
of the features or requirements envisioned.
 The bottom line is that, on a percentage basis, failed
or challenged projects greatly exceed successful
projects. – exeed time given, overbudget

1-10 Copyright 2015 John Wiley & Sons, Inc.

Why Many Projects Fail: Project Failure can be
grouped into four categories –
 People – The stakeholders of a project with varied roles and
interests in the project’s success or failure.
 Processes – This includes having a set of project
management and product management processes.
 Technology – Only three percent of IT project failures can be
attributed to technical challenges but this percentage can be
increased if obsolete, unproven, or incompatible technologies
are used.
 Organization – Organizational issues can lead to project
failure. A lack of clear direction, improper strategy, rapidly
changing business environment and/or customer needs can
create a moving target for the product’s product or service.

1-11 Copyright 2015 John Wiley & Sons, Inc.

Why Many Projects Fail: Project Failure can be
grouped into four categories – Examples

1-12 Copyright 2015 John Wiley & Sons, Inc.

Improving the likelihood of success
 A Value-Driven Approach
 Plain & Simple: IT Projects must provide value to the organization
 Socio-technical Approach
 It’s not just about the technology or building a better mouse trap
 Project Management Approach
 processes and infrastructure (Methodology)
 resources
 expectations
 competition
 efficiency and effectiveness
 Knowledge Management Approach
 lessons learned, best practices & shared knowledge

1-13 Copyright 2015 John Wiley & Sons, Inc.

 Information Technology Project
Management – Fifth Edition
By Jack T. Marchewka
Northern Illinois University

2-1 Copyright 2015 John Wiley & Sons, Inc.

 Project Methodologies and Processes

Chapter 2

2-2 Copyright 2015 John Wiley & Sons, Inc.

Learning Objectives
 Define what a methodology is and describe the role it serves in IT projects.
 Describe the project life cycle (PLC).
 Describe the Project Management Body of Knowledge (PMBOK®) and be
familiar with its knowledge areas and process groups.
 Describe PRINCE2® and be familiar with its core principles, processes, and
themes.
 Describe the Systems Development Life Cycle ( SDLC).
 Describe the Waterfall method for developing the project’s product or
system.
 Describe the Agile approach for developing the project’s product or system
as well as two commonly used approaches called eXtreme Programming
(XP) and Scrum..
 Describe and apply the concept of Leaning Cycles and lessons learned.

2-3 Copyright 2015 John Wiley & Sons, Inc.

Introduction
 Project Methodology
 A strategic-level plan for managing and controlling the
project
 Game plan for implementing project and product lifecycles
 Recommends phases, processes, tools, and techniques for
supporting an IT project
 Must be flexible and include “best practices” learned from
experiences over time.
 Can be
 Traditional (e.g., Waterfall)
 Agile (e.g., XPM, SCRUM)

2-4 Copyright 2015 John Wiley & Sons, Inc.

The Project Life Cycle

Collection of logical stages or phases that

 maps the life of a project
 from its beginning, through its middle,
to its end,
 to define, build, and deliver the product.

2-5 Copyright 2015 John Wiley & Sons, Inc.

Project Phases
 Phase Exits, Stage Gates, Kill Points
 These are the phase-end review of key deliverables
 Allows the organization to evaluate project performance and
take immediate action to correct errors or problems

 Fast Tracking
 Starting the next phase of a project before approval is obtained
for the current phase
 Can be used to reduce the project schedule
 Can be risky and should only be done when the risk is
acceptable

2-6 Copyright 2015 John Wiley & Sons, Inc.

Figure 2.1 – A Generic Project Life Cycle

2-7 Copyright 2015 John Wiley & Sons, Inc.

Project Life Cycle – Define and Plan
 Define Project Goal
 The project goal should be focused on providing business value
to the organization
 Provides a clear focus and drives the other phases of the project
 How will we know if this project is successful given the time,
money, and resources invested?

 Plan Project
 Project Objectives
 Resources
 Controls

2-8 Copyright 2015 John Wiley & Sons, Inc.

Project Life Cycle – Execute, Close, and Evaluate
 Execute Project Plan
 Manage the project scope, schedule, budget, and people to
ensure the project achieves its goal
 Progress must be documented and compared to the baseline
plan
 Project performance must be communicated to all of the
stakeholders
 Close and Evaluate Project
 Ensures that all of the work is completed as planned
 Final project report and presentation to the client
 Postmortem review
 Lessons learned and best practices documented and shared

2-9 Copyright 2015 John Wiley & Sons, Inc.

Figure 2.2 – The PMBOK® Guide – The
10 Project Management Knowledge Areas

2-10 Copyright 2015 John Wiley & Sons, Inc.

PMBOK® Guide – The 10 Project Management
Knowledge Areas
1. Project integration management
2. Project scope management
3. Project time management
4. Project cost management
5. Project quality management
6. Project human resource management
7. Project communications management
8. Project risk management
9. Project procurement management
10. Project stakeholder management

2-11 Copyright 2015 John Wiley & Sons, Inc.

Project Management Framework

12
Figure 2.3 – PMBOK® Project Management
Process Groups

2-13 Copyright 2015 John Wiley & Sons, Inc.

The Five (5) PMBOK® Project Management
Process Groups
1. Initiating

2. Planning

3. Executing

4. Monitoring and Controlling

5. Closing

2-14 Copyright 2015 John Wiley & Sons, Inc.

Figure 2-4 – PRINCE2® – The Seven (7)
Processes

2-15 Copyright 2015 John Wiley & Sons, Inc.

The PRINCE2® – Seven (7) Processes
PRINCE2® = Projects IN Controlled Environments

1. Start Project

2. Initiate Project

3. Direct Project

4. Control Stage

5. Manage Product Delivery

6. Manage Stage Boundaries

7. Close Project
2-16 Copyright 2015 John Wiley & Sons, Inc.
The PRINCE2® – Themes (guidelines to aid project
goal achievement)
PRINCE2® = Projects IN Controlled Environments

1. Business Case

2. Organization

3. Risk

4. Quality

5. Planning

6. Change

7. Progress
2-17 Copyright 2015 John Wiley & Sons, Inc.
The PRINCE2® – Principles (Universal guidance for all
projects)
PRINCE2® = Projects IN Controlled Environments

1. Business Case Driven

2. Product Focus

3. Lessons Learned

4. Manage the Stage

5. Adapt to the Project

6. Manage by Exception

7. Accountability
2-18 Copyright 2015 John Wiley & Sons, Inc.
Figure 2.5 The Systems Development Life Cycle

2-19 Copyright 2015 John Wiley & Sons, Inc.

Systems Development Life Cycle (SDLC)

 Planning
 Analysis
 Design
 Implementation
 Maintenance and Support

2-20 Copyright 2015 John Wiley & Sons, Inc.

Figure 2.6 – The Project Life Cycle (PLC) and
the Systems Development Life Cycle (SDLC)

2-21 Copyright 2015 John Wiley & Sons, Inc.

Implementing the SDLC

 Defines all of the subphases and deliverables

associated with the Execute and Control
Project Management Life Cycle phase.
 Number of Ways to implement the SDLC
 Waterfall
 Agile

2-22 Copyright 2015 John Wiley & Sons, Inc.

Figure 2.7 – The Waterfall Model

2-23 Copyright 2015 John Wiley & Sons, Inc.

Agile Systems Development – What is Agile?

 Condenses the SDLC into an iteration or sprint

 Users and developers work closely together to
define and prioritize important (“must have”)
features
 Emphasize working software to measure
progress and rely heavily on face-to-face
communication
 Umbrella term that includes a number of
approaches or methods
2-24 Copyright 2015 John Wiley & Sons, Inc.
Figure 2.8 – The Agile Manifesto

2-25 Copyright 2015 John Wiley & Sons, Inc.

Agile Systems Development – Four (4)
Themes or Categories

 Customer

 Product

 Project Team
 Performance

2-26 Copyright 2015 John Wiley & Sons, Inc.

Agile Methods: Extreme Programming
(XP) and Scrum
 Methods for project management that are becoming increasingly
popular
 Characterize many of today’s projects that exemplify speed, uncertainty,
changing requirements, and high risks
 XP
 User requirements first documented as user stories
 Document user stories in an object oriented model called a class diagram
 Transfers the system in a series of versions called releases
 Scrum
 Three important roles:
 Scrum master – similar to project manager
 Product owner – represents the business side, ensures the most important features are included
 Development team – responsible for delivering a quality product or system
 Product backlog – team prioritizes features that need to be developed/delivered
 Sprint – iterations lasting a few weeks (usually) and delivers a complete product
 Daily scrum – short stand-up meeting
2-27 Copyright 2015 John Wiley & Sons, Inc.
Figure 2.10 – A Learning Cycle

2-28 Copyright 2015 John Wiley & Sons, Inc.

 Figure 2.11 – An Example of a Team Learning
Record

What we know What we think we know What we don’t know

(Facts) (Assumptions) (Questions to be Answered)

Company has too much It may be an efficiency Why are inventory levels so
inventory on hand problem high?
Cost of maintaining current Management believes a new What are the current levels of
inventory is becoming information system will inventory?
prohibitive improve efficiency and
therefore lower inventory
levels

Inventory turnover needs to What is the desired level of

be increased inventory?

2-29 Copyright 2015 John Wiley & Sons, Inc.

Figure 2.12 – An Example of an Action Plan

Who? Does What? By When?

Shedelle and Steve Interview sales team to understand Tuesday

past, current, and future trends for
the company’s product.

Myra Provide a detailed count of the Thursday

current physical inventory on
hand.

Corean Research potential inventory Thursday

management system commercial
packages

Steve Research average inventory levels Wednesday

for the industry

2-30 Copyright 2015 John Wiley & Sons, Inc.

Figure 2.13 – Team Learning Cycles over the
Project Life Cycle

Each cycle provides the opportunity to

challenge framing assumptions, create new
understanding & find radical solutions
2-31 Copyright 2015 John Wiley & Sons, Inc.
Team Learning

2-32 Copyright 2015 John Wiley & Sons, Inc.

 Information Technology Project
Management – Fifth Edition
By Jack T. Marchewka
Northern Illinois University

3-1 Copyright 2015 John Wiley & Sons, Inc.

 Measurable Organizational Value and the
Business Case

Chapter 3

3-2 Copyright 2015 John Wiley & Sons, Inc.

Chapter Objectives

 Describe and develop a project’s MOV.

 Understand the purpose of a business case.
 Prepare a business case.
 Distinguish between financial and scoring models.
 Understand how projects are selected.

Define goals  Planning  Execute  Close Project

To develop MOV and business case which phase?

• Define

3-3 Copyright 2015 John Wiley & Sons, Inc.

Measurable Organizational Value (MOV) and Project
Objectives
 The MOV is a “Measure of Success”
 The MOV must support the organization’s vision, mission, and
strategy
 Also, the MOV must:
 Be measurable – bilangan customer, sales, profit, time (nak
tau business success or not)
 Provide value – social impact, financial impact, process, cust
 Be agreed upon – everybody must agreed
 Be verifiable
 Project Objectives – support the MOV and include:
 Scope (the project work to be completed
 Schedule (time)
 Budget (money)
 Quality (conformance
3-4
or fitness for use)
Copyright 2015 John Wiley & Sons, Inc.
Figure 3.1 – Project Alignment
Nak uitm ada dalam world map macam havard uni
Organizational Drives
Vision & Mission
What drives mobility:
Universal student
Holistic student

Drives
Organizational
Strategy
Supports
mobility

Project’s
Organizational
Measurable
Supports Value
(MOV)

3-5 Copyright 2015 John Wiley & Sons, Inc.

Project Objectives

 Project Objectives – support the MOV and include:

 Scope (the project work to be completed
 Schedule (time)
 Budget (money)
 Quality (conformance or fitness for use)

3-6 Copyright 2015 John Wiley & Sons, Inc.

Figure 3.2 – The MOV and Project Objectives

3-7 Copyright 2015 John Wiley & Sons, Inc.

 An Example of a Good Goal

I believe that this nation should commit

itself to achieving the goal before this
Time frame
decade is out, of landing a man on the
moon and returning him safely to Earth.
Value – This nation should commit
Time - decade is out
John F. Kennedy
Social impact – this nation 35th President of the United States
Metric – landing a man 1961-1963
(berapa banyak hantar berapa banyak pulang)
Verify – return safely

3-8 Copyright 2015 John Wiley & Sons, Inc.

Developing the MOV

1. Identify the desired area of impact

Potential Areas:
• Customer
• Strategic
• Financial
• Operational
• Social

3-9 Copyright 2015 John Wiley & Sons, Inc.

Figure 3-3 – Potential Areas of Project Impact and Examples

3-10 Copyright 2015 John Wiley & Sons, Inc.

Developing the MOV

2. Identify the desired value of the IT project

Organizational Value:
• Better?
• Faster?
• Cheaper?
• Do More? (growth)

3-11 Copyright 2015 John Wiley & Sons, Inc.

Figure 3-4 – Project Value

3-12 Copyright 2015 John Wiley & Sons, Inc.

Developing the MOV
3. Develop an Appropriate Metric
 Provides the project team with a performance target or
directive
 Sets expectations among all stakeholders
 Affords a means for evaluating whether the project is a
success
 Metrics are expressed in …
 Money ($, £, ¥ – increase or decrease)
 Percentage (% – increase or decrease)
 Numeric Values (increase or decrease)

3-13 Copyright 2015 John Wiley & Sons, Inc.

Developing the MOV

4. Set a time frame for achieving the MOV

 When will these results (the MOV) be achieved?

5. Verify the MOV and get agreement from the project

stakeholders
 Project manager’s responsibility is to guide the process,
while the project sponsor must identify and specify the
metrics and the acceptable values for the metrics

3-14 Copyright 2015 John Wiley & Sons, Inc.

Developing the MOV

6. Summarize the MOV in a clear, concise statement or

table

This project will be successful if _________________.

MOV: Increase awareness for healthy living by

having 250 new subscribers sign up for a weekly
newsletter within 6 months.

3-15 Copyright 2015 John Wiley & Sons, Inc.

Table 3-1 – Examples of MOV Statements

3-16 Copyright 2015 John Wiley & Sons, Inc.

Table 3-2 – Examples of MOV Table Format

3-17 Copyright 2015 John Wiley & Sons, Inc.

Figure 3-5 – Summary of the Process for Developing MOV
to Increase Awareness for Healthy Living

3-18 Copyright 2015 John Wiley & Sons, Inc.

The Business Case
 Definition of Business Case: an analysis of the
organizational value, feasibility, costs, benefits, and risks
of several proposed alternatives or options.
 Attributes of a Good Business Case
 Thorough in detailing all possible impacts, costs, and benefits
 Clear and logical in comparing the cost/benefit impact of each
alternative
 Objective through including all pertinent information
 Systematic in terms of summarizing findings

3-19 Copyright 2015 John Wiley & Sons, Inc.

Developing the Business Case
 Step 1: Define Measurable Organizational Value (MOV)
 Step 2: Form a Cross-Functional Business Case Team
 Advantages:
 Credibility
 Alignment with organizational goals
 Access to the real costs
 Ownership
 Agreement
 Bridge building

3-20 Copyright 2015 John Wiley & Sons, Inc.

Developing the Business Case
 Step 3: Identify Alternatives
 Possible Options
 Change existing process without investing in IT
 Adopting or adapting an application developed by a different area or
department within the organization
 Reengineer the existing system
 Purchasing an off-the-shelf application package from a software
vendor
 Custom building a new application using internal resources or
outsourcing the development to another company

3-21 Copyright 2015 John Wiley & Sons, Inc.

Developing the Business Case
 Step 4: Define Feasibility and Assess Risk
 Feasibility (“do able and worth doing?”)
 Economic feasibility
 Technical feasibility
 Organizational feasibility
 Other feasibilities
 Risk
 Identification – What can go wrong? What must go right?
 Assessment – What is the impact of each risk?
 Response – How can the organization avoid or minimize the risk?

3-22 Copyright 2015 John Wiley & Sons, Inc.

Developing the Business Case
 Step 5: Define Total Cost of Ownership
 Direct or Up-front costs
 Ongoing Costs
 Indirect Costs
 Step 6: Define Total Benefits of Ownership
 Increasing high-value work
 Improving accuracy and efficiency
 Improving decision-making
 Improving customer service

3-23 Copyright 2015 John Wiley & Sons, Inc.

 Developing the Business Case
 Step 7: Analyze alternatives
 Payback

Payback Period = Initial Investment

Net Cash Flow (ni untuk even cash flow)

= $100,000
$20,000
= 5 years

3-24 Copyright 2015 John Wiley & Sons, Inc.

Developing the Business Case
 Breakeven
Materials (putter head, shaft, grip, etc.) $12.00

Labor (0.5 hours at $9.00/hr) $ 4.50

Overhead (rent, insurance, utilities, taxes, etc.) $ 8.50

Total $25.00

If you sell a golf putter for $30.00 and it costs $25.00 to make, you have a profit margin of
$5.00:

Breakeven Point = Initial Investment / Net Profit Margin

= $100,000 / $5.00
= 20,000 units
3-25 Copyright 2015 John Wiley & Sons, Inc.
Developing the Business Case

 Return on Investment

Project ROI = Total Expected Benefits – Total Expected Costs

Total Expected Costs

= ($115,000 - $100,000)
$100,000
= 15%

3-26 Copyright 2015 John Wiley & Sons, Inc.

Developing the Business Case

 Net Present Value

Year 0 Year 1 Year 2 Year 3 Year 4

Total Cash Inflows $0 $150,000 $200,000 $250,000 $300,000

Total Cash Outflows $200,000 $85,000 $125,000 $150,000 $200,000

Net Cash Flow ($200,000) $65,000 $75,000 $100,000 $100,000

NPV = -I0 +  (Net Cash Flow / (1 + r)t)

Where:
I = Total Cost or Investment of the Project
r = discount rate
t = time period
3-27 Copyright 2015 John Wiley & Sons, Inc.
Developing the Business Case

 Net Present Value

Time Period Calculation Discounted Cash Flow

Year 0 ($200,000) ($200,000)

Year 1 $65,000/(1 + .08)1 $60,185

Year 2 $75,000/(1 + .08)2 $64,300

Year 3 $100,000/(1 + .08)3 $79,383

Year 4 $100,000/(1 + .08)4 $73,503

Net Present Value (NPV) $77,371

3-28 Copyright 2015 John Wiley & Sons, Inc.

Developing the Business Case

 Scoring models
 provide a method for comparing alternatives or projects
based on a weighted score.
 can combine both qualitative and quantitative criteria
 weights and scores can be subjective
 Things to keep in mind about financial and scoring models
 Financial models can be biased toward the short run
 Some criteria are reversed-scored
 Past experience may help create a more realistic business
case.

3-29 Copyright 2015 John Wiley & Sons, Inc.

 Developing the Business Case
Sample Weighted Scoring Model

30
Table 3.3 – Comparison of Project Alternatives

3-31 Copyright 2015 John Wiley & Sons, Inc.

 Developing the Business Case

 Step 8: Propose and Support the Recommendation

 Once the alternatives are identified and analyzed, the last step is
to recommend one of the options.

3-32 Copyright 2015 John Wiley & Sons, Inc.

Figure 3.6 – Business Case Template

3-33 Copyright 2015 John Wiley & Sons, Inc.

Project Selection and Approval
 The IT Project Selection Process

 The Project Selection Decision

 The project must align with the organization’s values, vision,
mission, and strategies.
 The project must provide MOV that can be verified at the
completion of the project.

3-34 Copyright 2015 John Wiley & Sons, Inc.

 Information Technology Project
Management – Fifth Edition
By Jack T. Marchewka
Northern Illinois University

4-1 Copyright 2015 John Wiley & Sons, Inc.

 Project Planning: The Project
Infrastructure
Chapter 4

4-2 Copyright 2015 John Wiley & Sons, Inc.

Learning Objectives
 Describe the planning phase of the project life cycle
(PLC)
 Define the project’s infrastructure.
 Describe project governance and its role.
 Understand the roles of the project manager and how
the project team is selected.
 Understand how a project acquires both internal and
external resources.
 Understand and describe the project environment.
 Describe three general categories for procurement-
type contracts.
 Develop a project charter and understand its
relationship to the project plan.
4-3 Copyright 2015 John Wiley & Sons, Inc.
Introduction
 The Project Planning Phase Attempts to Answer the
Following Questions:
 What work needs to be done?
 Who will do the work?
 What resources will be needed to do the work?
 When will they do the work?
 How long will it take?
 How much will it cost?
 Does the time, money, and resources invested support the
project’s MOV?

4-4 Copyright 2015 John Wiley & Sons, Inc.

Introduction (continued)
 Project’s have…
 An Infrastructure
 A Governance structure
 Required Resources (must be obtained)
 A Project Charter

4-5 Copyright 2015 John Wiley & Sons, Inc.

Figure 4.1 – The Project Infrastructure

4-6 Copyright 2015 John Wiley & Sons, Inc.

Project Governance
 Should flow from organizational governance
 Provides a framework to ensure that a project aligns with a
chosen business strategy while ensuring that the time,
money, and resources provide real value to the
organization.
 Projects governance must define:
 Structure
 Authorization
 Oversight and Accountability
 Decision Making
 Resources

4-7 Copyright 2015 John Wiley & Sons, Inc.

Figure 4.2 Project Governance

4-8 Copyright 2015 John Wiley & Sons, Inc.

The Project Team
 The Roles of the Project Manager
 Managerial role (daily operation, only managge)
 Leadership role (visionary person, strategic planning,
people follow them, think forward)
 Attributes of a successful project manager
 ability to communicate with people
 ability to deal with people
 ability to create and sustain relationships
 ability to organize
 The Project Team
 Technology Skills
 Business/organization knowledge
 Interpersonal skillsCopyright 2015 John Wiley & Sons, Inc.
4-9
 The Formal Organization

 Formal groupings & specializations

 Published Lines of
 Authority
 Responsibilities
 Reporting Relationships
 Communication
 Decision-Making

4-10 Copyright 2015 John Wiley & Sons, Inc.

Figure 4.3 – The Organization and Project
Resources INFORMAL – between friends,
override PM terus ke boss
FORMAL – sebab diaorg tau kena
report ke siapa and have rules

FORMAL FORMAL FORMAL

4-11 Copyright 2015 John Wiley & Sons, Inc.

 The Functional Organization

 Advantages  Disadvantages
 Increased Flexibility  Determining Authority
 Breadth & Depth of & Responsibility
Knowledge &  Poor Response Time
Experience  Poor Integration
 Less Duplication

4-12 Copyright 2015 John Wiley & Sons, Inc.

 The Project-Based Organization

 Advantages  Disadvantages
 Clear Authority &  Project Isolation
Responsibility  Duplication of Effort
 Improved  “Projectitis”
Communication
 High Level of
Integration

4-13 Copyright 2015 John Wiley & Sons, Inc.

 The Matrix Organization

 Advantages  Disadvantages
 High Level of  Higher potential for
Integration conflict
 Improved  Team members may
Communication wonder “Who’s my
boss?”
 Increased Project Focus
 Poorer Response Time

4-14 Copyright 2015 John Wiley & Sons, Inc.

Procuring External Project Resources -
Procurement
 Project resources can be internal or externally acquired.
 The decision depends on
 The project scope
 Availability of the products and services in the marketplace
 Cost
 Quality
 Terms and Conditions
 Experience and skills of the project team
 Similar to a “make” or “buy” decision
 Business process outsourcing, including offshoring, is one
option for acquiring external resources (outsource outside
the country)

4-15 Copyright 2015 John Wiley & Sons, Inc.

Figure 4.4 – The Project Outsourcing Model

4-16 Copyright 2015 John Wiley & Sons, Inc.

Procurement Planning
 Begins by determining which project needs can be
fulfilled internally or externally by the project team
 Focuses on not only what can best be filled internally
or externally, but
 How
 When
 How Many
 And Where these products or services will be acquired
 A Request for Proposal (RFP) may be developed and
used to solicit bids(bidding), quotes, or proposals for
services or goods from prospective sellers.
4-17 Copyright 2015 John Wiley & Sons, Inc.
Contracts Between Sellers and Buyers

 Once a seller is selected, the buyer may enter into

contract negotiations so that a mutual agreement can
be reached
 A contract is a document signed by the buyer and
seller that defines the terms and conditions of the
buyer-seller relationship. IT serves as a legally
binding agreement that obligates seller to provide
specific products, services, or even results, while
obligating the buyer to provide specific monetary or
other consideration.

4-18 Copyright 2015 John Wiley & Sons, Inc.

General Categories of Procurement-type
Contracts (1)

 Fixed-Price or Lump-Sum Contracts

 A total or fixed price is negotiated or set as the final
price for a product or service
 May include incentives for meeting certain
performance objectives or penalties if those
objectives are not met

EXAMPLE:
Situation: buyer nak buat banglo with 1M cost and fixed, with 1M you have
to fulfill the requirement yang buyer nak
Buyer or seller risk on the contract? Seller bc kalau ada masalah or delay
yang perlukan extra cost dia takleh tambah cost lagi sebab 1M dah fix
4-19 Copyright 2015 John Wiley & Sons, Inc.
Categories for Procurement-Type Contracts (2)
 Cost-Reimbursable Contracts
 Payment or reimbursement is made to the seller to cover the
seller’s actual direct costs (i.e., labor, materials, etc.) and
indirect costs (i.e., admin. salaries, rent, utilities, etc.)
 May include incentives for meeting certain objectives or
penalties if those objectives are not met
 Types incentives
 Cost-Plus- Fee (CPF) or Cost-Plus-Percentage (CPPC) – harga
material naik, fee pun naik bc of percentage
 Cost-Plus-Fixed-Fee (CPFF) higher risk to seller, lower risk to buyer
 Cost-Plus-Incentive-Fee (CPIF) Which one is the most risky? For
buyer to seller

4-20 Copyright 2015 John Wiley & Sons, Inc.

Types of Cost-Reimbursable Contracts (2)
 Cost-Plus-Fee (CPF) or Cost-Plus-Percentage Cost (CPPC) -1
 The seller is paid for the costs incurred in performing the work as well as
a fee based upon an agreed on percentage of the costs. (cth – total cost
200k, so agree 10% of 200k – 20k – so cost + fee = 220k)
 Cost-Plus-Fixed-Fee (CPFF) - 2
 The seller is reimbursed for the total direct and indirect costs of doing the
work, but receives a fixed amount that does not change unless the
project’s scope changes. (cth tetibe 200k naik harga, along the
development ken stop sebab pandemic, so cost sekarang 300k, 10% of
300k - 30k – so total cost – 330k)
 (cth project 200k, being paid 20k so kerja 220k, katakana project naik
300k, paid still 20k, so the cost 320k)
 Kiranya upah sama je walaupun harga material naik
 Cost-Plus-Incentive-Fee (CPIF) - 3
 The seller is reimbursed for the costs incurred in doing the work and
receives a predetermined fee plus an incentive bonus for meeting certain
objectives. (cth project kena siap dalam masa setahun, dalam masa
4-21
setahun siap and dapatCopyright
20k (sebab dalam conract dah janji))
2015 John Wiley & Sons, Inc.
Categories for Procurement-Type Contracts (3)
 Time and Materials (T&M) Contracts (Cost reimbursable
+ fixed price contracts) – direct cost+indirect cost
 A hybrid of cost-reimbursable and fixed-price contracts
 The buyer pays the seller for both the time and materials
required to complete the work
 Resembles a cost-reimbursable contract because it is open-ended and
full cost of project is not predetermined
 But can resemble a fixed-price contract if unit rates are set

4-22 Copyright 2015 John Wiley & Sons, Inc.

The Project Environment
 A place to call home
 Technology
 Office supplies
 Culture
 What is expected from each team member?
 What role will each team member play?
 How will conflicts be resolved?

4-23 Copyright 2015 John Wiley & Sons, Inc.

The Project Charter
 Serves as an agreement and as a communication tool for
all of the project stakeholders
 Documents the project’s MOV
 Defines the project’s infrastructure
 Summarizes the details of the project plan
 Defines the project’s governance structure
 Shows explicit commitment to the project

 See Figure 4-5 (next slide) for the typical areas of a

project charter

4-24 Copyright 2015 John Wiley & Sons, Inc.

cost, time, communication, integration – bila combine all
knowledge area so its called integration)

4-25 Copyright 2015 John Wiley & Sons, Inc.

The PMBOK® Guide – The 10 Project
Management Knowledge Areas

26 PMBOK 2015;
John Wiley & Sons, Inc. (2015)
1. Define goals – business case
2. Planning – chap4
1. Procurement
2. Human Resource
3. Scope (integration)
• What is planning stage deliverable
• Project charter and project plan (project charter is summary of project plan)
3. Execute
4. Close

Project Planning: Scope and the Work

Breakdown Structure
Chapter 5

5-1 Copyright 2015 John Wiley & Sons, Inc.

Learning Objectives

 Understand and describe the relationship among scope,

schedule, and budget.
 Understand the processes and apply several tools for
defining and managing the scope of a project.
 Understand the difference between project scope (i.e.
project deliverables) and product scope (i.e. features and
functionality of the product or system).
 Develop a Work Breakdown Structure (WBS).
 Differentiate between an deliverable and a milestone.
 Describe and apply several project estimation methods.

5-2 Copyright 2015 John Wiley & Sons, Inc.

Introduction

 Scope –
 defines the work boundaries and deliverables of the project so
what needs to get done, gets done – and only what needs to get
done, gets done.
 is determined directly by the project’s MOV.
 Defines all the work, activities, and deliverables that the project
team much provide for the project to achieve its MOV
 Work Breakdown Structure – a project management tool
that provides a hierarchical structure that acts as a bridge, or link,
between the project’s scope and the detailed project plan that will
be created.

5-3 Copyright 2015 John Wiley & Sons, Inc.

Figure 5.1 – The Triple Constraint

Relationship between scope, budget and schedule – If scope bertambah, budget and schedule
bertambah
kalau schedule sikt, scope banyak, kerja tak siap. And u need more budget if the scope is
bigger.

5-4 Copyright 2015 John Wiley & Sons, Inc.

Scope Management Processes
 Plan Scope Management
 Defines and Documents how the project and product scope will be defined, verified, and changed if
necessary. (at the end of plan scope management we will get scope management plan)
 Collect Requirements
 Defining and documenting the customer, sponsor, or stakeholder needs and expectations. This may be a
formal document.
 Define Scope
 A detailed description of the product, service, or information system to be designed, built and
implemented. A detailed scope statement defines what work will and will not be part of the project and
will serve as a basis for all future project decisions
 Create the Work Breakdown Structure
 The decomposition or dividing of the major project deliverables (i.e., scope) into smaller and more
manageable components
 Validate Scope
 Confirmation and formal acceptance that the project’s scope is accurate, complete, and supports the
project’s MOV. The project team and sponsor must agree to all deliverables
 Control Scope
 Ensuring that controls are in place to manage proposed scope changes once the project’s scope is set.
Must be communicated to all project stakeholders. – how do you control the scope (look back at
triple constraint - tak overbudget, tak overdue)

5-5 Copyright 2015 John Wiley & Sons, Inc.

Figure 5.2 – Scope Management Plan

5-6 Copyright 2015 John Wiley & Sons, Inc.

Figure 5.3 – Scope Boundary

Work within the Scope Boundary

Must Support the
Project’s MOV

Work Outside of the Project Scope

5-7 Copyright 2015 John Wiley & Sons, Inc.

Statement of Work (SOW) – must be in narrative
form
 Narrative description (explain scope (wht you want to
do) in textual form) of the product, service, or
information system.
 For internal projects, this is tied to the business need
 For external projects,
 this would include specifications, quantities, quality
standards, and performance requirements for
prospective bidders and
 The SOW is often included in a document that may
be called a request for proposal (RFP), request for
information (RFI), or request for bid (RFB).

5-8 Copyright 2015 John Wiley & Sons, Inc.

Scope Statement
A scope statement is another way to define the scope
boundary; it is a detailed documentation of the sponsor’s
needs and expectations.

Examples of Scope Statements – e-commerce banking

1. Develop a proactive electronic commerce strategy that identifies the
processes, products and services to be delivered through the World
Wide Web.
2. Develop an application system that supports all of the processes,
products, and services identified in the electronic commerce strategy.
3. The application system must integrate with the bank’s existing
enterprise resource planning system.

4. Ada 3 scope
5-9 Copyright 2015 John Wiley & Sons, Inc.
Scope
 Project-Oriented Scope – requirement gathering (client
requirement), design (design requirement) , develop
(system)
 Support the project management processes defined by the
Project Life Cycle (PLC) and the chosen project methodology.
 Deliverable Structure Chart (Figure 5.4 – DSC) – a tool used
by the project manager and team.
 Product-Oriented Scope – input (review), info review
 Specific features and functionality of the application system
 First cut of requirements definition
 Use Case Diagram (Figure 5.5) – a system modeling tool used
for refining the scope boundary and defining what the system
must do.

5-10 Copyright 2015 John Wiley & Sons, Inc.

Out of Scope
1. Technology and organizational assessment of the
current environment
2. Customer resource management and data mining
components

5-11 Copyright 2015 John Wiley & Sons, Inc.

Project Scope Definition
 The scope boundary and scope statement provide a
useful first step
 The project’s scope must now be defined in more
detail in terms of specific deliverables that provide a
basis for developing the project’s work breakdown
structure (WBS)
 Tools:
 Deliverable Definition Table
 Deliverable Structure Chart
 Context Level Data Flow Diagram
 Use Case Diagram
5-12 Copyright 2015 John Wiley & Sons, Inc.
13 Copyright 2012 John Wiley & Sons, Inc.
Figure 5.4 – Deliverable
Structure Chart

5-14 Copyright 2015 John Wiley & Sons, Inc.

 Context Level Data Flow Diagram

15 Copyright 2012 John Wiley & Sons, Inc.

 Data Flow Diagram

16 Copyright 2012 John Wiley & Sons, Inc.

Figure 5.5 – Use Case
Diagram

5-17 Copyright 2015 John Wiley & Sons, Inc.

Validate Scope
 Verification of the MOV
 Has the project’s MOV been clearly defined and agreed upon?
 Documentation of All Deliverables
 Are the deliverables tangible and verifiable?
 Do they support the project’s MOV?
 Specification of Quality Standards
 Are controls in place to ensure that the work was not only
completed but completed to meet specific standards?
 Identification of Milestones (target/checkpoint) – e.g:
gantt chart milestones – star tu milestone. Why do we
need to take note on milestone? To keep track, to
manage time, manage resources, dateline
 Are milestones defined for each deliverable?
 yes, because every milestone we need to pay
5-18 Copyright 2015 John Wiley & Sons, Inc.
 Review and Acceptance
Control Scope and Scope Change Control Procedures

 Concerned with managing changes to the project’s scope and to ensure that
these changes are beneficial when they occur
 Potential Issues:
 Scope Grope – unable to define the scope
 Scope Creep – creep menjalar, scope tak freeze and getting bigger, ada
banyak scope, scope jadi besar
 Scope Leap – the scope change: e.g: bila tengah buat, tetibe totally
berubah
 Procedures:
 Scope Change Request Form (Figure 5.6) – if tak buat masa tracking and
audit jadi susah
 Scope Change Request Log (Figure 5.7)

Why we need to control the scope?

5-19 Copyright 2015 John Wiley & Sons, Inc.
Figure 5.6 – Scope Change Request Form

5-20 Copyright 2015 John Wiley & Sons, Inc.

Figure 5.7 – Scope Change Request Log

5-21 Copyright 2015 John Wiley & Sons, Inc.

Work Breakdown Structure (WBS)
 The PMBOK® Guide states that the WBS represents a
logical decomposition of the work to be performed and
focuses on how the product, service, or result is naturally
subdivided. It is an outline of what work is to be
performed.

5-22 Copyright 2015 John Wiley & Sons, Inc.

Figure 5.8 – Work Package

5-23 Copyright 2015 John Wiley & Sons, Inc.

Deliverables versus Milestones
 Deliverables
 Tangible, verifiable work products - NOUN
 Reports, presentations, prototypes, etc.
 Milestones
 Significant events or achievements
 Acceptance of deliverables or phase completion
 Cruxes (proof of concepts)
 Quality control
 Keeps team focused

5-24 Copyright 2015 John Wiley & Sons, Inc.

Developing the WBS (Figure 5.4 repeated)

 A work package is developed for each of the phases and deliverables

defined in the Deliverable Structure Chart (DSC)

5-25 Copyright 2015 John Wiley & Sons, Inc.

Deliverable: Test Results Report – WBS boleh
buat dalam bentuk chart or narrative (slide 26)
 Logical Activities:
1. Review the test plan with the client so that key stakeholders
are clear as to what will be tested, how the tests will be
conducted, and when the tests will be carried out.
2. Carry out the tests as outlined in the plan.
3. Once the test results are collected, we need to analyze them.
4. The results should be summarized in the form of a report and
presentation to the client.
5. If all goes well, the client will sign-off or approve the test
results and then we can move on to the implementation phase
of the project. If not, then we need to address and fix any
problems.

What are the deliverables? Milestones?

5-26 Copyright 2015 John Wiley & Sons, Inc.
Example Work Breakdown Schedule

5-27 Copyright 2015 John Wiley & Sons, Inc.

Figure 5.9 – Work Package and Work Breakdown Structure

5-28 Copyright 2015 John Wiley & Sons, Inc.

Things to Keep in Mind When developing the
WBS…

 Should support the project’s MOV

 Should be “deliverable-oriented” – at every
phase mesti ada result or report)
 The level of detail should support planning and
control (pecahkan satu task tu kepada 2-3 hari)
 Developing the WBS should involve those who
will be doing the work

5-29 Copyright 2015 John Wiley & Sons, Inc.

Estimation Questions

What are you going to estimate?

Cost, time.
Where do you start? WBS

How do you estimate?

ADA TECHNIQUE

5-30 Copyright 2015 John Wiley & Sons, Inc.

Estimation Techniques - Traditional
Project Management Approaches
 Guesstimating – bukan technique but ppl often use it
 Delphi Technique -
 Time Boxing
 Top-Down
 Bottom-Up
 Poker Planning

5-31 Copyright 2015 John Wiley & Sons, Inc.

 Guestimating

Estimation by guessing or just picking numbers out of the air is not the
best way to derive a project’s schedule and budget. Unfortunately,
many inexperienced project managers tend to guesstimate, or guess at
the estimates, because it is quick and easy.

5-32 Copyright 2015 John Wiley & Sons, Inc.

Delphi Technique
 Involves multiple, anonymous experts
 Each expert makes an estimate
 Estimates compared
 If close, can be averaged
 If not, do another iteration until consensus is reached

5-33 Copyright 2015 John Wiley & Sons, Inc.

Time Boxing

 Often used on A “box” of timAgile projects

 A “box” of time is allocated for a specific activity,
task, or deliverable
 Can focus a team if used effectively
 Can demoralize a team if not used effectively

5-34 Copyright 2015 John Wiley & Sons, Inc.

Top-Down

 Top & middle managers determine overall project

schedule &/or cost
 Lower level managers are expected to breakdown
schedule/budget estimates into specific activities (WBS)

 Cth: the whole thing 5 months, tengok each task total

jadi 5 months. Need to finish within 5 months

5-35 Copyright 2015 John Wiley & Sons, Inc.

Bottom-Up – people estimation
 Schedules & budgets are constructed from WBS
 Starts with people who will be doing the work
 Schedules & budgets are the aggregate of detailed
activities & costs
 May use analogous estimation – developing estimates
based on one’s opinion that there is a significant
similarity between the current project and others.

 Dari bawah naik atas. Cth: u ask opinion from team and
dia cakap boleh buat dalam 5 hari, 3 days and from semua
tu total jadi 5 bulan

5-36 Copyright 2015 John Wiley & Sons, Inc.

Poker Planning – For Agile estimation
 Variation of Delphi Technique
 Uses a deck of cards that represents an estimate in days
 Moderator describes particular task, feature, deliverable, or
user story to be estimated.
 Attempts to reach consensus in a few rounds of “play”

 Fibonarchi number - 1,2,3,5,8, 13, 21, 34

5-37 Copyright 2015 John Wiley & Sons, Inc.

 Information Technology Project
Management – Fifth Edition
By Jack T. Marchewka
Northern Illinois University

6-1 Copyright 2015 John Wiley & Sons, Inc.

Define goal (business case)  plan (charter, proj plan) 
execute ([product/prototype)  close (evaluation)

This chapter phase planning:

PMBOK
• HR
• Scope
• Procurement
• Integration
• Today: Schedule and budget

Project Planning: The Schedule and

Budget
Chapter 6

6-2 Copyright 2015 John Wiley & Sons, Inc.

Learning Objectives
 Develop a GANTT chart.
 Develop a project network diagram using a technique called activity
on the node (AON).
 Identify a project’s critical path and explain why it must be
controlled and managed.
 Develop a PERT diagram.
 Describe the concept of precedence diagramming and identify finish-
to-start, start-to-start, finish-to-finish, and start-to-finish activity
relationships.
 Describe the concept of critical chain project management (CCPM).
 Describe the various types of costs that make up the project’s budget.
 Define what is meant by the baseline project plan.

6-3 Copyright 2015 John Wiley & Sons, Inc.

scope  wbs (phase, task)  sequence time
 schedule + budget

 The project’s schedule can be determined based upon the

tasks and time estimates in the WBS
 The schedule will also depend on how these activities are
sequenced
 The project’s budget can be determined based upon the
activities and time estimates from the WBS as well as the
cost of the resources assigned to the WBS tasks
 Iterations may still be necessary
 The objective is to create a realistic project schedule and
budget!

6-4 Copyright 2015 John Wiley & Sons, Inc.

The Project Planning Framework

6-5 Copyright 2015 John Wiley & Sons, Inc.

Developing the Project Schedule
 Project Management Tools
 Gantt Charts (1)
 Project Network Diagrams (2)
 Activity on the Node (AON)
 Acitivity on arrow (AOA)
 Critical Path Analysis
 Program Evaluation and Review Technique (PERT)
 Precedence Diagramming Method (PDM)

6-6 Copyright 2015 John Wiley & Sons, Inc.

Gantt Chart for Planning

Duration

Milestone

6-7 Copyright 2015 John Wiley & Sons, Inc.

Gantt Chart Reporting
Project’s Progress

Dark blue – actual

Biasa - estimate

6-8 Copyright 2015 John Wiley & Sons, Inc.

 Activity Analysis for AON
Activity Description Estimated Predecessor
Duration (Days)
A Evaluate current technology 2 None
platform
B Define user requirements 5 A
C Design Web page layouts 4 B
D Set-up Server 3 B
E Estimate Web traffic 1 B
F Test Web pages and links 4 C,D
G Move web pages to production 3 D,E
environment
H Write announcement of intranet 2 F,G
for corp. newsletter
I Train users 5 G
J Write report to management 1 H,I
6-9 Copyright 2015 John Wiley & Sons, Inc.
 Activity Description Estimated Duration (Days) Predecessor
A Evaluate current technology platform 2 None
B Define user requirements 5 A
C Design Web page layouts 4 B
D Set-up Server 3 B
E Estimate Web traffic 1 B
F Test Web pages and links 4 C,D
G Move web pages to production environment 3 D,E
H Write announcement of intranet for corp. newsletter 2 F,G
I Train users 5 G
J Write report to management 1 H,I

Activity Node
A (2)  B (5)  C (3) 

Sambungan dekat recording line slow lol

6-10 Copyright 2015 John Wiley & Sons, Inc.

Activity on the Node (AON)
Network Diagram

6-11 Copyright 2015 John Wiley & Sons, Inc.

Possible Activity Paths
Possible Paths Path Total
Path 1 A+B+C+F+H+J 18
2+5+4+4+2+1
Path 2 A+B+D+F+H+J 17
2+5+3+4+2+1
Path 3 A+B+D+G+H+J 16
2+5+3+3+2+1
Path 4 A+B+D+G+I+J 19* * The
Critical
2+5+3+3+5+1 Path
Path 5 A+B+E+G+I+J 17
2+5+1+3+5+1
6-12 Copyright 2015 John Wiley & Sons, Inc.
Critical Path
 Longest path
 Shortest time project can be completed
 Zero slack (or float)
 The amount of time an activity can be delayed before it delays the
project
 Must be monitored and managed!
 Project manager can expedite or crash by adding resources
 Fast tracking – running activities in parallel which were
originally planned as sequential
 The CP can change
 Can have multiple CPs

6-13 Copyright 2015 John Wiley & Sons, Inc.

PERT
 Program Evaluation and Review Technique
 Developed in 1950s to help manage the Polaris Submarine
Project
 Developed about the same time as the Critical Path
Method
 Often combined as PERT/CPM
 Employs both a project network diagram with a statistical
distribution

6-14 Copyright 2015 John Wiley & Sons, Inc.

 Activity Analysis for PERT
Activity Predecessor Optimistic Most Likely Pessimistic Expected
Estimates Estimates Estimates Duration
(Days) (Days) (Days) (a+4b+c)
a b c
6
A None 1 2 4 2.2
B A 3 5 8 5.2
C B 2 4 5 3.8
D B 2 3 6 3.3
E B 1 1 1 1.0
F C,D 2 4 6 4.0
G D,E 2 3 4 3.0
H F,G 1 2 5 2.3
I G 4 5 9 5.5
J H,I .5 1 3 1.3
6-15 Copyright 2015 John Wiley & Sons, Inc.
Possible PERT Activity Paths

Possible Paths Path Total

Path 1 A+B+C+F+H+J 18.8
2.2+5.2+3.8+4.0+2.3+1.3
Path 2 A+B+D+F+H+J 18.3
2.2+5.2+3.3+4.0+2.3+1.3
Path 3 A+B+D+G+H+J 18.6
2.2+5.2+3.3+3.0+2.3+1.3
Path 4 A+B+D+G+I+J 20.5*
2.2+5.2+3.3+3.0+5.5+1.3
Path 5 A+B+E+G+I+J 18.2
2.2+5.2+1.0+3.0+5.5+1.3

* The Critical Path

6-16 Copyright 2015 John Wiley & Sons, Inc.
Precedence (what task come first and what task
come next) Diagramming Method - PDM

 Based on 4 fundamental relationships

 Finish-To-Start (FS)
 Start-To-Start (SS)
 Finish-To-Finish (FF)
 Start-To-Finish (SF)

6-17 Copyright 2015 John Wiley & Sons, Inc.

PDM Relationships

Arrow shows
kena habis on
the same time

6-18 Copyright 2015 John Wiley & Sons, Inc.

Lead and Lag times
 Lead is starting the next task before the first task is
complete
 Example: Begin installing the operating systems when half of the
PCs are set up
 Lag (or negative lead) is the adding of a buffer of time
before the next task begins
 Example: Once the walls have been painted, wait one day before
laying the carpet so that the walls have had a chance to dry

6-19 Copyright 2015 John Wiley & Sons, Inc.

Critical Chain Project Management (CCPM)
 Introduced in 1997 in a book called Critical Chain by Eliyahu
Goldratt
 Based on his previous work called the Theory of Constraints
 CCPM is based on the idea that people often inflate or add
cushioning to their estimates to create a form of “safety” to
compensate for uncertainty or risk because …
 Your work is dependent upon the work of someone else, and you
believe that starting your work will be delayed (1)
 Your pessimism from previous experience where things did not
go as planned (2)
 Your belief that the project sponsor or customer will cut your
project schedule or budget so you inflate your estimates to
guard against this cut (3)
6-20 Copyright 2015 John Wiley & Sons, Inc.
If people build safety into their estimates, then …
 Why are projects still late?
 Student’s Syndrome or procrastinating until the last minute
before starting to work on a task
 Parkinson’s Law or the idea that work expands to fill the time
available
 People will rarely report finishing something early because there is
little incentive to do so or because they may fear that management will
cut their estimates next time
 Multitasking of resources or “resource contention”
 A person is often assigned to more than one project or required to
attend meetings, training, etc. As a result, they can no longer devote
their time to tasks that are on the critical path

6-21 Copyright 2015 John Wiley & Sons, Inc.

CCPM Assumptions
 Begins by asking each person or team working on a task to
provide an estimate that would have a 50% chance of being
completed as planned
 About half of the project tasks will be completed on time, about half
won’t
 Instead of adding safety to each task, put that safety in the form
of buffers where it is needed most CRICTICAL CHAIN PROJECT MANAGEMENT
 Feeding buffers
 Reduce the likelihood of bottlenecks by ensuring that critical tasks will start
on time when a task acts as a feeder to another task on the critical path
only at critical activities
 Resource buffers
 Reduce resource contention
 End of Project buffers
 Are equal to one-half of the time saved from putting safety into each task
6-22 Copyright 2015 John Wiley & Sons, Inc.
The Critical Chain Project Schedule
Project Schedule with Safety in Each Task

A B C E 40 days
10 Days 10 Days 10 Days 10 Days

D Critical activities
10 Days

Critical Chain Project Schedule

A B C E 10 Project buffer
5 Days 5 Days 5 Days 5 Days Normal, 30 days
If buffer, 22.5 days
D
Buffers
5 Days 2.5 Days
22.5 days je

6-23 Copyright 2015 John Wiley & Sons, Inc.

Critical Chain Project Management – sama
cam critical path bagi extra time Cuma
critical path takde resources
 And the critical path are similar
 The difference is the CCPM takes into account resource contention
 Takes a more project portfolio view
 Other projects should be scheduled so that a resource can be dedicated to a
particular task – bc they said its not good to multitask
 Requires that everyone understand that each project task has a 50% chance
of being completed as scheduled, so about half of the tasks will be late.
 This is the reason for having the project buffer.
 Instead of tracking each task individually, we become more concerned with the
project buffer –i.e., the project will be late only if it uses more than the allocatted
project buffer.
 Instead of penalties for being late, bonuses or other incentives for
completing tasks early may be needed

6-24 Copyright 2015 John Wiley & Sons, Inc.

Project Management Software Tools
 A number of project management software tools are
available to plan and track the progress of your project
 However, having a fundamental understanding of these
project management techniques is important to make the
most of these software tools

6-25 Copyright 2015 John Wiley & Sons, Inc.

GANTT Chart in Microsoft Project ®

WBS

6-26 Copyright 2015 John Wiley & Sons, Inc.

Network Diagram and Critical Path in Microsoft
Project ®

6-27 Copyright 2015 John Wiley & Sons, Inc.

Developing the Project Budget
1. Define what resources will be needed to perform
the work
2. Determine the quantity of resources that are needed
3. Define the cost of using each resource
4. Calculate the cost of the task or activity
5. Ensure that the resources are leveled, that is, not
over allocated. An example of over allocation is
assigning a project team member to two tasks
scheduled at the same time.

6-28 Copyright 2015 John Wiley & Sons, Inc.

Project Resources Assigned to Project Tasks in
Microsoft Project ®

6-29 Copyright 2015 John Wiley & Sons, Inc.

Other Costs

 Direct Costs
 The direct cost of labor or other resources
 Indirect Costs
 The cost for covering such things as rent, utilities, insurance, etc.
 Sunk Costs
 Costs incurred prior to the project, such as a project that has been
restarted after a failed attempt
 Learning Curve – the cost of prototype – one off paid
 Often have to “Build one and throw it away” to understand a problem
or a new technology
 Prorated Costs –
 The idea that there is a cost associated with using a resource
 Reserves
 Contingency funds to be used at the discretion of the project manager

6-30 Copyright 2015 John Wiley & Sons, Inc.

Finalizing the Project Schedule and Budget

 The project schedule and budget may require several

iterations before it is acceptable to the sponsor, the project
manager, and the project team.
 Resource Allocation – PM reviews project to make sure
resources are properly allocated – leveled – not over
allocated
 Once the project schedule and project plan are accepted,
the project plan becomes the baseline plan.
 Once accepted, the project manager and project team have
the authority to execute or carry out the plan and can have
a Kickoff Meeting.

6-31 Copyright 2015 John Wiley & Sons, Inc.

The PMBOK® Guide – The 10 Project
Management Knowledge Areas

32 PMBOK 2015;
John Wiley & Sons, Inc. (2015)