SPM
SPM
Project Planning
1. Initiation:
o Before the project officially starts, the initiation phase determines the project's need and
feasibility. The team develops a business case that explains why the project is important
and what problems it will solve. Afterward, a feasibility study is conducted to evaluate
whether the project is viable in terms of cost, time, and potential benefits.
o Example: For a software development project, the business case might explain the need
for a new customer support system and its expected benefits in improving response
times.
2. Stakeholder Involvement:
o In this step, you identify key stakeholders such as project sponsors, team members, and
clients. Engage with them to understand their expectations and requirements. It’s
crucial to ensure everyone is aligned on the project’s scope, budget, and timeline, and to
secure their buy-in.
o Example: Meeting with stakeholders early on ensures that any concerns or additional
requirements are addressed, reducing the chances of conflicts later in the project.
3. Prioritizing Goals:
o A project often has multiple objectives. Prioritizing these goals helps the team stay
focused on what is most important. Not all goals can be accomplished equally, so
focusing on key objectives, like completing the core functionalities of a software product
before adding additional features, is essential.
o Example: In a project to build a mobile app, prioritizing goals might mean focusing first
on the app’s functionality over aesthetic design.
4. Identifying Deliverables:
o This step involves defining the specific outputs or results expected from the project. Each
deliverable should have a clear deadline and set of success criteria. Metrics can be
established to track the quality and timeliness of each deliverable.
o Example: For a website development project, a deliverable could be "a fully functional
homepage," and success is defined as "loads within 3 seconds and is responsive across
all devices."
5. Scheduling:
o Based on the previous steps, a timeline is created for the project. Tasks are broken down
and assigned deadlines. Scheduling involves mapping out when each task needs to be
completed, considering task dependencies and resource availability.
o Example: Using a Gantt chart or project management tool to visually represent the
project timeline helps ensure that the team stays on track and meets deadlines.
6. Developing a Project Plan:
o A project plan consolidates all the information from previous steps into a structured
format. It details the activities, resources, timelines, and workflow needed to complete
the project. The project plan acts as the roadmap for the project’s execution.
o Example: A software development plan would include timelines for coding, testing, and
deployment phases, with assigned team roles for each task.
7. Bake in Contingency Plans:
o No project goes perfectly, so it’s essential to anticipate potential risks and challenges. A
contingency plan prepares the team for unforeseen issues by providing alternative
strategies for managing problems like budget overruns or delays.
o Example: If a key resource becomes unavailable, a contingency plan could involve
reallocating tasks to other team members to prevent project delays.
Importance of WBS
1. Improved Planning: By dividing the project into manageable pieces, WBS facilitates
be er planning, scheduling, and execu on.
2. Resource Alloca on: It helps in alloca ng resources efficiently to specific tasks and
deliverables.
3. Cost Tracking: The cost of each task can be iden fied, aiding in budget management.
4. Progress Monitoring: Task dependencies, start and end dates, and task statuses can be
tracked easily.
5. Clear Communica on: A WBS ensures clarity among team members and stakeholders
regarding deliverables and expecta ons.
Types of WBS structure
Work Breakdown Structures (WBS) can be categorized into Deliverable-Based WBS and Phase-
Based WBS, each designed to suit different project needs. Below is an explana on of these
types, accompanied by their advantages.
1. Deliverable-Based WBS
A Deliverable-Based WBS organizes the project work around the final deliverables of the
project, such as products, services, or results. Each level of the WBS represents a breakdown of
the deliverables into smaller components un l the tasks needed to complete each deliverable
are clearly iden fied.
Example Structure (for a House Construc on Project):
Level 1 (Main Deliverables):
o Internal Work
o Founda on
o External Work
Level 2 (Sub-deliverables):
o Internal Work: Electrical, Plumbing
o Founda on: Excava on, Steel Erec on
o External Work: Masonry, Finishes
Advantages:
Clear linkage between project scope and deliverables.
Makes it easy to track progress for specific deliverables.
Ideal for projects with clearly defined outputs.
2. Phase-Based WBS
A Phase-Based WBS organizes tasks based on the phases of the project lifecycle. These phases
typically include ini a on, planning, execu on, monitoring and control, and closure. This
approach is par cularly useful for projects that follow a sequen al or itera ve development
process.
Example Structure (for a House Construc on Project):
Level 1 (Project Phases):
o Ini a on
o Planning
o Execu on
o Closure
Level 2 (Tasks within Phases):
o Execu on: Founda on, Framing, Plumbing
o Closure: Inspec on, Final Approval
Advantages:
Focuses on project management processes, ensuring each phase is completed.
Useful for projects with itera ve development or requiring phase-by-phase progress
tracking.
Simplifies planning and resource alloca on for each project phase.
Product Breakdown Structure (PBS) vs Work Breakdown Structure (WBS)
Both Product Breakdown Structure (PBS) and Work Breakdown Structure (WBS) are essen al
tools in project management, but they serve different purposes. While the PBS focuses on
breaking down the end product into its components, the WBS emphasizes breaking down the
work required to create those components. Below is an explana on of these structures with
examples.
1. Product Breakdown Structure (PBS)
A Product Breakdown Structure (PBS) is a hierarchical diagram that breaks down the final
product into smaller, more manageable components or sub-products. It helps teams visualize
the deliverables required to complete the project.
Key Features of PBS:
Focuses solely on the product and its components.
Represents the physical or func onal parts of the product.
Does not include the tasks or processes needed to create the product.
Example: For a project to build a Car, a PBS might look like this:
Advantages of PBS:
1. Provides a clear understanding of the product structure.
2. Helps iden fy all required components for the final product.
3. Facilitates cost es ma on and procurement of materials.
4. Focuses teams on product-related deliverables.
2. Work Breakdown Structure (WBS)
A Work Breakdown Structure (WBS) is a hierarchical decomposi on of all the work required to
complete a project. It breaks the project into smaller work packages, each represen ng a task or
set of tasks.
Key Features of WBS:
Focuses on the tasks or work needed to create the product.
Includes all processes, ac vi es, and deliverables required to complete the project.
Ensures alignment between project scope, schedule, and budget.
Example: For the same Car Construc on Project, a WBS might look like this:
Advantages of WBS:
1. Helps manage the project by breaking it into smaller, manageable tasks.
2. Facilitates resource alloca on, scheduling, and cost tracking.
3. Ensures all necessary work is accounted for, reducing the risk of missing tasks.
4. Makes progress tracking and repor ng easier.
how to choose process model
A Process Model is a structured framework that defines the ac vi es, tasks, and steps required
to develop so ware. It provides a systema c approach to plan, implement, test, deliver, and
maintain so ware, ensuring the process is organized and efficient. Process models help manage
complexity, improve quality, and align development with business objec ves.
Examples of process models include:
Waterfall Model: A sequen al approach with fixed phases like requirements, design,
development, tes ng, and deployment.
Agile Model: An itera ve and flexible approach allowing changes at any stage.
Spiral Model: Combines itera ve development with risk management.
Incremental Model: Breaks development into smaller, deliverable increments.
V-Model: Focuses on valida on and verifica on at every stage of development.
Choosing the right process model for a project is crucial to its success. Below are the factors and
their explana ons point-wise:
1. Project Requirements
"Before you choose a model, take some me to go through the project requirements."
If the requirements are clear and fixed:
o Use the Waterfall Model because it provides a structured approach for well-
defined requirements.
If the requirements are unclear or evolving:
o Use the Agile Model for flexibility in adap ng to changes.
o Use the Spiral Model for itera ve development combined with risk management.
2. Project Size
Consider the size of the project you will be working on. Larger projects mean bigger teams,
so you’ll need more extensive and elaborate project management plans.
o For small projects:
Use the Waterfall Model for its simplicity.
Use the Agile Model if there is a need for quick itera ons and feedback.
o For large projects:
Use the Spiral Model, as it allows for risk assessment and itera ve
development.
Use the Incremental Model, as it divides the project into manageable
phases and delivers parts of the product incrementally.
3. Project Complexity
Complex projects may not have clear requirements. The requirements may change o en,
and the cost of delay is high.
o For highly complex projects:
Use the Spiral Model, as it handles risks and complexity effec vely.
Use the Agile Model, as it provides adaptability for managing changing and
complex requirements.
o For less complex projects:
Use the Waterfall Model, as it is straigh orward and suitable for well-
understood projects.
4. Cost of Delay
Is the project highly me-bound with a huge cost of delay, or are the melines flexible?
o If me-to-market is cri cal:
Use the Agile Model, as it delivers incremental results quickly.
Use the Incremental Model, which enables early delivery of func onal
components.
o If melines are flexible:
Use the Waterfall Model, as it is methodical and ensures a complete
product before release.
5. Customer Involvement
Do you need to consult the customers during the process?
o If frequent customer feedback is needed:
Use the Agile Model, as it involves regular interac on and adaptability.
o If customer involvement is minimal:
Use the Waterfall Model or V-Model, as they follow a more rigid,
predefined process.
6. Familiarity with Technology
This involves the developer’s knowledge and experience with the project domain,
so ware tools, language, and methods needed for development.
o If the team has strong exper se:
Use any process model, depending on other factors like requirements and
complexity.
o If the team lacks exper se:
Use a simpler model like the Waterfall Model or Incremental Model to
minimize technical risks.
7. Project Resources
This involves the amount and availability of funds, staff, and other resources.
o If resources are limited:
Use the Agile Model, as it is lightweight and focuses on delivering results
quickly.
o If resources are abundant:
Use the Spiral Model, as it allows thorough planning, risk analysis, and
phased delivery.
Measurement Parameters
1. External Inputs (EI): Inputs provided by the user to the system, such as forms or data entered into the
applica on.
2. External Outputs (EO): Outputs generated by the system and presented to the user, like reports or
error messages.
3. External Queries (EQ): Requests for informa on or data retrieval made by the user.
4. Internal Logical File (ILF): A user-iden fiable group of logically related data or control informa on
maintained within the boundary of the applica on.
5. External Interface File (EIF): A group of users recognizable logically related data allusion to the
so ware but maintained within the boundary of another so ware.
Advantages of FPA
1. Provides a reliable and objective measurement of software functionality.
2. Allows comparison of productivity across projects or organizations.
3. Enables early effort and cost estimation, aiding better project planning.
4. Encourages a focus on user requirements rather than technical implementation.
5. Language-independent, meaning they can be applied across different programming languages.
6. Objec ve measurement of func onality.
7. Helps in effec ve project planning and es ma on.
Gan Chart
A Gan chart is a visual project management tool that displays tasks or ac vi es along a meline. It shows
the start and end dates of tasks, task dependencies, and overall project progress. Each task is represented
as a bar on the chart, with its length corresponding to the task's dura on.
Features:
Dependencies: Shows rela onships between tasks, ensuring proper task sequence.
Benefits:
Coordina on: Enhances team coordina on by highligh ng task dependencies and roles.
PERT
Example:
A project consists of three activities with their time estimates (in weeks) as follows:
1→2 1 4 7
2→3 2 5 8
3→4 3 6 15
Critical Path Model
Project Status Report
A Project Status Report is a formal document used in project management to provide a summary
of the current progress, status, and overall health of a project. It is shared with stakeholders,
team members, and management to ensure transparency, maintain alignment, and support
decision-making throughout the project lifecycle. The report helps track whether the project is
proceeding as planned, highlights any challenges or risks, and outlines the next steps.
Key Components of a Project Status Report:
1. Project Overview: This section provides a brief description of the project, its objectives,
and its scope. It ensures that all stakeholders are reminded of the project's purpose and
goals.
2. Current Status: The report includes an assessment of the project's overall status, such as
whether it is on track, delayed, or at risk. It may also include a completion percentage to
give a clear picture of progress made so far.
3. Milestones and Deliverables: This section outlines the milestones achieved since the last
status update. It highlights key deliverables and how they align with the planned timeline.
4. Challenges and Risks: Any issues encountered during the project are detailed here,
including potential risks and challenges that might impact timelines, budget, or
deliverables. The report may also include mitigation strategies being implemented to
address these risks.
5. Budget and Resource Updates: The report provides an update on the project's financial
status, including whether it is within the allocated budget. It also covers resource
utilization, availability, and any potential variances from the original plan.
6. Next Steps: This section outlines the upcoming tasks, deadlines, and priorities for the
project team. It ensures clarity regarding what needs to be done to keep the project
moving forward.
Importance of a Project Status Report:
1. Improved Communication: The report ensures that all stakeholders are updated on the
project's progress and aligned with the ongoing work.
2. Supports Decision-Making: By highlighting risks, challenges, and progress, the report
provides the necessary information to help stakeholders and management make
informed decisions to keep the project on track.
3. Accountability: It ensures that team members are aware of their responsibilities,
deadlines, and tasks, fostering a sense of accountability.
4. Enhances Transparency: Regular updates build trust among stakeholders and ensure
there are no surprises regarding the project's progress or challenges.
Example:
In a weekly project status report for a website development project, the team might
communicate:
"The project is 75% complete, with the design phase fully completed and the development
phase nearing completion. Testing is scheduled to begin next week. However, a delay in
receiving content from the client is a potential risk, which we are addressing by setting a
revised deadline for submission. The project remains within the allocated budget."
In summary, the Project Status Report is a critical tool for tracking progress, ensuring alignment,
and fostering effective communication among all stakeholders involved in the project.
Project Metrics
Project metrics are quantitative measures used to assess, track, and monitor the performance,
progress, and overall health of a project. These metrics provide data-driven insights into various
aspects of a project, such as timelines, budgets, resource utilization, quality, and risks.
Significance of Project Metrics in Project Management
1. Performance Monitoring: Metrics help evaluate whether the project is meeting its goals
and staying on track in terms of time, cost, and quality. For example, tracking schedule
variance ensures that tasks are completed on time.
2. Informed Decision-Making: By providing accurate and real-time data, metrics enable
project managers and stakeholders to make well-informed decisions, such as reallocating
resources or adjusting timelines.
3. Risk Management: Metrics help identify potential risks early by highlighting deviations or
anomalies in project performance, allowing for timely corrective actions.
4. Accountability: Metrics create transparency, ensuring team members and stakeholders
are accountable for their responsibilities by measuring individual and team contributions.
5. Continuous Improvement: Metrics provide insights into project outcomes, which can be
used to refine processes and improve efficiency in future projects.
Examples of Project Metrics
Schedule Variance (SV): Measures the difference between planned and actual progress.
Cost Performance Index (CPI): Indicates whether the project is within budget.
Defect Density: Evaluates the quality of deliverables by measuring defects per unit.
Earned Value Analysis (EVA)
Earned Value Analysis (EVA) is a project management technique used to measure project
performance and progress objectively. It integrates project scope, cost, and schedule data to
assess whether a project is on track in terms of budget and timeline. EVA provides a
comprehensive view of the project’s current status and forecasts its likely future performance.
Methods of Earned Value Analysis
EVA uses several key metrics and methods to analyze project performance:
1. Planned Value (PV):
o The estimated cost of the work planned to be completed by a specific point in time.
o Also known as the Budgeted Cost of Work Scheduled (BCWS).
2. Earned Value (EV):
o The estimated value of the work actually completed by a specific point in time.
o Also called Budgeted Cost of Work Performed (BCWP).
3. Actual Cost (AC):
o The actual cost incurred for the work completed by a specific time.
o Also known as Actual Cost of Work Performed (ACWP).
4. Variance Analysis:
o Cost Variance (CV): CV=EV−AC Indicates whether the project is under or over budget.
Negative value of CV indicates that the project is over the Budget.
o Schedule Variance (SV): SV=EV−PV Indicates whether the project is ahead of or
behind schedule. Negative value of SV indicates that the project is behind the
schedule.
Features of Earned Value Analysis
1. Integrated Performance Measurement: EVA combines scope, cost, and schedule metrics
into a single system for better project evaluation.
2. Real-Time Monitoring: Provides continuous monitoring of project performance and
identifies deviations early.
3. Forecasting Capabilities: Helps predict future performance trends, such as total project
costs and time required for completion.
4. Quantitative Insights: Offers data-driven insights into project efficiency and
effectiveness.
5. Variance Analysis: Helps identify the root causes of cost and schedule variances, enabling
corrective actions.
Importance of Earned Value Analysis in Project Management
EVA is crucial for effective project management because:
1. Objective Measurement of Progress: It quantifies progress in monetary terms, making it
easier to assess performance against the baseline.
2. Early Warning System: By highlighting variances, EVA helps identify risks and problems
early, allowing for timely corrective measures.
3. Improved Decision-Making: EVA provides actionable insights to adjust schedules,
budgets, or resource allocation based on current trends.
4. Transparency and Accountability: Ensures clear reporting to stakeholders by presenting
concise and accurate performance data.
5. Forecasting and Planning: EVA enables project managers to forecast the likely cost at
completion (Estimate at Completion or EAC) and remaining work (Estimate to Complete
or ETC).
Chapter 4
Risk Management Approaches
Risk Avoidance
Descrip on: This approach involves completely elimina ng the poten al for a risk to occur by
avoiding ac vi es or decisions that could expose the organiza on to that risk. Instead of dealing
with a risk, the company chooses to sidestep it altogether.
How It Works: When a company iden fies a risk that it deems too dangerous or costly to handle,
it may avoid the situa on en rely. For example, if expanding into a vola le market carries the risk
of major financial losses, the company might decide not to enter that market at all.
Example: A company may choose not to invest in a country with unstable poli cal condi ons to
avoid the risk of na onaliza on or poli cal unrest.
Cons: Avoiding risks can also mean missing out on poten al opportuni es for growth or profit.
2. Risk Mi ga on
Descrip on: Mi ga on involves taking steps to reduce the likelihood or impact of a risk. Instead
of avoiding the risk completely, this approach minimizes its effect should it occur.
Example: Installing fire suppression systems in a building reduces the risk of fire damage, or
implemen ng backup systems to mi gate data loss in case of system failure.
Pros: Reduces the overall impact or probability of risks, o en providing a balance between safety
and opportunity.
Cons: It doesn’t eliminate the risk completely, and can be costly in terms of resources or me.
3. Risk Acceptance
Descrip on: In this approach, the risk is acknowledged, and the organiza on decides to take no
ac on, accep ng the poten al impact. The risk may be considered minor, or the cost of mi ga ng
it may outweigh the benefits.
How It Works: With risk acceptance, the organiza on calculates that the poten al consequences
of a risk are manageable or too insignificant to warrant any costly ac on. For example, a company
may accept the risk of a minor system outage, as the impact on its opera ons is low.
Example: A startup may accept the risk of ini al financial losses when entering a compe ve
market, believing that long-term growth will outweigh short-term issues.
Pros: It’s cost-effec ve since no ac on is taken to mi gate the risk, allowing resources to be used
elsewhere.
Cons: If the risk occurs, the organiza on must bear the full consequences, which could some mes
be greater than an cipated.
4. Risk Transference
Descrip on: Risk transference involves shi ing the risk to another party, typically through
mechanisms like insurance, outsourcing, or partnerships. The risk remains, but another en ty
takes on the responsibility.
How It Works: This approach is common in situa ons where a company wants to protect itself
from major losses but doesn't want to bear the burden of mi ga on. For example, companies
o en transfer the risk of poten al damages from accidents to an insurance provider, so if an
incident occurs, the insurer pays for the damages.
Example: Purchasing business insurance to transfer the financial risk of property damage, or hiring
a third-party vendor to handle logis cs, transferring the risk of opera onal delays to them.
Pros: Reduces the organiza on’s liability for significant risks, and can provide financial protec on
in case of disaster.
Cons: Risk transfer usually comes at a cost, such as insurance premiums or fees for outsourced
services. It also doesn’t eliminate the risk, but just shi s the responsibility.
Chapter 5
Chapter 6
Chapter 7
Chapter 8