SOFTWARE PROJECT MANAGEMENT

Unit – Ist
What is Project

A project is a group of tasks that need to complete to reach a clear result. A project
also defines as a set of inputs and outputs which are required to achieve a goal.
Projects can vary from simple to difficult and can be operated by one person or a
hundred.

What is Software Project Management

Software project management is an art and discipline of planning and supervising

software projects. It is a sub-discipline of software project management in which
software projects planned, implemented, monitored and controlled.

It is a procedure of managing, allocating and timing resources to develop computer

software that fulfills requirements.

Needs for Software Project Management

There are three needs for software project management. These are:

1. Time
2. Cost
3. Quality
 IMPORTANCE OF SOFTWARE
PROJECT MANAGEMENT

Project management plan: Project management software allows you to plan

projects whilst taking previous track records into account.

Tracking project progress in terms of completion, time and costs: Certain

warning signs that software allows you to easily spot gives way for in-time
warnings.

Scheduling and time management: The importance of project scheduling cannot

be ignored. Each member receives their schedule and is aware of what is expected
and when.

Resource allocation: Certain software such as Sinnaps, measures resource

spending and also allocates resources for each task and each member.

Budgeting: Controlled in real-time costs and time evaluation. Sinnaps sends all of
whom are involved with the project weekly updates of progress.

Communication and Collaboration: The importance of communication in

project management is undeniable and we’ve said it here more than once! Software
such as Sinnaps offer real-time chat options and also includes a project wall which
is similar to a social media feed, updating all involved of any change or addition.

Documentation: Documents can be created within project managementsoftware

and stored there for safe keeping, especially if the app is cloud-based like Sinnaps.
The importance of project report writing is taken into account by most project
management software.

User-friendly: Effective software should act as an enabler and not as a barrier.

 Activities of Software Project Management

Software Project Management consists of many activities, that includes planning of

the project, deciding the scope of product, estimation of cost in different terms,
scheduling of tasks, etc.

The list of activities are as follows:

1. Project planning and Tracking

2. Project Resource Management
3. Scope Management
4. Estimation Management
5. Project Risk Management
6. Scheduling Management
7. Project Communication Management
8. Configuration Management

1. Project Planning and Tracking: It is a set of multiple processes, or we can

say that it a task that performed before the construction of the product starts.

2. Project Resource Management: In software Development, all the elements

are referred to as resources for the project. It can be a human resource,
productive tools, and libraries.

3. Scope Management: It describes the scope of the project. Scope management

is important because it clearly defines what would do and what would not.
Scope Management create the project to contain restricted and quantitative
tasks, which may merely be documented and successively avoids price and
time overrun.
 4. Estimation management: This is not only about cost estimation because
whenever we start to develop software, but we also figure out their size(line
of code), efforts, time as well as cost.

5. Project Risk Management: Risk management consists of all the activities

like identification, analyzing and preparing the plan for predictable and
unpredictable risk in the project.

6. Scheduling Management: Scheduling Management in software refers to all

the activities to complete in the specified order and within time slotted to each
activity. Project managers define multiple tasks and arrange them keeping
various factors in mind.

7. Project Communication Management: Communication is an essential

factor in the success of the project. It is a bridge between client, organization,
team members and as well as other stakeholders of the project such as
hardware suppliers.

8. Configuration Management: Configuration management is about to control

the changes in software like requirements, design, and development of the
product.

Project Management Methodologies

A methodology is a model, which project managers employ for the design,

planning, implementation and achievement of their project objectives. There are
different project management methodologies to benefit different projects.
For example, there is a specific methodology, which NASA uses to build a space
station while the Navy employs a different methodology to build submarines.
Hence, there are different project management methodologies that cater to the needs
of different projects spanned across different business domains.
Following are the most frequently used project management methodologies in the
project management practice:
1 - Adaptive Project Framework
In this methodology, the project scope is a variable. Additionally, the time and the
cost are constants for the project. Therefore, during the project execution, the
project scope is adjusted in order to get the maximum business value from the
project.
2 - Agile Software Development
Agile software development methodology is for a project that needs extreme agility
in requirements. The key features of agile are its short-termed delivery cycles
(sprints), agile requirements, dynamic team culture, less restrictive project control
and emphasis on real-time communication.
3 - Crystal Methods
In crystal method, the project processes are given a low priority. Instead of the
processes, this method focuses more on team communication, team member skills,
people and interaction. Crystal methods come under agile category.
4 - Dynamic Systems Development Model (DSDM)
This is the successor of Rapid Application Development (RAD) methodology. This
is also a subset of agile software development methodology and boasts about the
training and documents support this methodology has. This method emphasizes
more on the active user involvement during the project life cycle.
5 - Extreme Programming (XP)
Lowering the cost of requirement changes is the main objective of extreme
programming. XP emphasizes on fine scale feedback, continuous process, shared
understanding and programmer welfare. In XP, there is no detailed requirements
specification or software architecture built.
6 - Feature Driven Development (FDD)
This methodology is more focused on simple and well-defined processes, short
iterative and feature driven delivery cycles. All the planning and execution in this
project type take place based on the features.
7 - Information Technology Infrastructure Library (ITIL)
This methodology is a collection of best practices in project management. ITIL
covers a broad aspect of project management which starts from the organizational
management level.
8 - Joint Application Development (JAD)
Involving the client from the early stages with the project tasks is emphasized by
this methodology. The project team and the client hold JAD sessions collaboratively
in order to get the contribution from the client. These JAD sessions take place
during the entire project life cycle.
9 - Lean Development (LD)
Lean development focuses on developing change-tolerance software. In this
method, satisfying the customer comes as the highest priority. The team is
motivated to provide the highest value for the money paid by the customer.
10 - PRINCE2
PRINCE2 takes a process-based approach to project management. This
methodology is based on eight high-level processes.
11 - Rapid Application Development (RAD)
This methodology focuses on developing products faster with higher quality. When
it comes to gathering requirements, it uses the workshop method. Prototyping is
used for getting clear requirements and re-use the software components to
accelerate the development timelines.
In this method, all types of internal communications are considered informal.
12 - Rational Unified Process (RUP)
RUP tries to capture all the positive aspects of modern software development
methodologies and offer them in one package. This is one of the first project
management methodologies that suggested an iterative approach to software
development.
13 - Scrum
This is an agile methodology. The main goal of this methodology is to improve
team productivity dramatically by removing every possible burden. Scrum projects
are managed by a Scrum master.
14 - Spiral
Spiral methodology is the extended waterfall model with prototyping. This method
is used instead of using the waterfall model for large projects.
15 - Systems Development Life Cycle (SDLC)
This is a conceptual model used in software development projects. In this method,
there is a possibility of combining two or more project management methodologies
for the best outcome. SDLC also heavily emphasizes on the use of documentation
and has strict guidelines on it.

Categorization of Software Projects

 Setting objectives of Software Project Management

Effective objectives in project management are specific. A specific objective

increases the chances of leading to a specific outcome. Therefore objectives
shouldn't be vague, such as "to improve customer relations," because they are
not measurable. Objectives should show how successful a project has been,
for example "to reduce customer complaints by 50%" would be a good
objective. The measure can be, in some cases, a simple yes or no answer, for
example, "did we reduce the number of customer complaints by 50%?"

Objectives of Software Project Management

1. Performance and Quality

The end result of a project must fit the purpose for which it was intended. At one
time, quality was seen as the responsibility of the quality control department. In
more recent years the concept of total quality management has come to the fore,
with the responsibility for quality shared by all staff from top management
downwards.

2. Budget
The project must be completed without exceeding the authorised expenditure.
Financial sources are not always inexhaustible and a project might be abandoned
altogether if funds run out before completion. If that was to happen, the money and
effort invested in the project would be forfeited and written off. In extreme cases
the project contractor could face ruin. There are many projects where there is no
direct profit motive, however it is still important to pay proper attention to the cost
budgets, and financial management remains essential.

3. Time to Completion
Actual progress has to match or beat planned progress. All significant stages of the
project must take place no later than their specified dates, to result in total
completion on or before the planned finish date. The timescale objective is
extremely important because late completion of a project is not very likely to
please the project purchaser or the sponsor.
 Principles of Project Management

The principles of project management are the fundamental rules that should be
followed for the successful management of projects. Here are the nine principles of
project management:

• Formal project management structure

• Invested and engaged project sponsor

• Clear and objective goals and outcomes

• Documented roles and responsibilities

• Strong change management

• Risk management

• Mature value delivery capabilities

• Performance management baseline

• Communication plan

1. Formal structure

Projects need to have a formalized structure, including processes, procedures, and

tools. If you’ve ever tried to complete a project without a formalized structure you
know how hard it can be to control it and provide the attention it deserves. A
project should have a project charter, project plan, and a designated project team to
successfully prioritize and manage the project.

2. Project sponsor

An effective project sponsor is critical to the success of a project. Sponsors

champion your project and act as a spokesperson to other executives. Having an
engaged sponsor makes it easier to communicate progress, escalate issues to
overcome roadblocks, and guide stakeholders through decision-making processes.

3. Goals and outcomes

Without precise requirements and approval criteria, it will be difficult to measure a

project’s success. You may think that your final product does everything requested,
only to have the customer or user complain that you left out a critical
component. The most common factor behind failed projects is a lack of clear goals.
Project requirements and approval criteria should be determined and documented
at the beginning of the project. These must be reviewed and approved by all key
stakeholders, including the sponsor and customer.

4. Roles and responsibilities

Two forms should be used to document and define the roles and responsibilities of
everyone involved with a project. For project team members, RACI or RASCI is
used to determine duties and expectations. RASCI stands for:

• R: Responsible

• A: Accountable

• S: Sign-off authority (not always used)

• C: Consulted

• I: Involved

In a RACI chart, team members are listed along the top, with tasks along the sides.
Each member is assigned a letter (R, A, C, and I) according to their role for each
job. A stakeholder register documents stakeholders outside the primary team, as
well as important information such as the following:

• Communication preferences (type and frequency)

• Contact information

• Level of influence on the project

• Engagement level with the project

• Their role within the company

• Other relevant details or notes

5. Management of project changes

A project needs a well-defined scope to ensure the outcome meets customer

expectations. Without strong change management, a project could suffer from
scope creep and gradually grow beyond the initial project guidelines. To give an
example, team members or stakeholders may want to add additional features to a
product. However, if you don’t carefully control changes, you could end up with a
great product that costs twice what you expected and is delivered six months late.
6. Risk management

Since we cannot execute projects in a bubble, they all face some risks. Risk can
affect your resources, technology, or processes. It’s important to manage risk to
minimize or eliminate its impact on your projects. This involves identifying,
evaluating, and monitoring risks and deciding upon action plans to implement if
they occur.

7. Value delivery capabilities

Your value delivery capabilities are the project tools, processes, and procedures
that help you deliver value to your customers. This can include your project
systems, like your scheduling software. It may also include your processes, such as
using an Agile project methodology. If you have established and tested approaches
for delivering successful projects, you'll be better equipped than if you’re starting
from scratch. The more mature your processes and procedures are, the more likely
your project will be a success.

8. Performance management baseline

Projects typically have three basic components: cost, schedule, and scope. Each of
these components should have a baseline or plan against which performance can be
measured. When these baselines are integrated, it’s called a performance
management baseline — then, if you have a change in any one of these
components, its impact will be reflected in the others.

Say you have a scope change. With your performance management baseline, you
can see how this will impact your project schedule and cost, allowing you to better
monitor the overall effect of changes on a project. A performance management
baseline improves decision-making, as you can view the whole picture and identify
all impacts of potential decisions.
9. Communication

If you’ve worked in project management for a while, you may have heard the
saying that project management is 90% communication. A project’s success
requires communication of project activities, risks, issues, and status, both within
the project team and with other stakeholders. Communication is essential for a
variety of reasons, including:

• Keeping stakeholders engaged

• Coordinating tasks and schedules

• Decision-making and problem-solving

• Identifying and resolving conflicts

• Escalating risks and issues

Project Management Control

Controlling are processes needed to track, review, and regulate the progress and
performance of the project. It also identifies any areas where changes to the project
management method are required and initiates the required changes.

The Controlling process group includes eleven processes, which are:

1. Monitor and control project work: The generic step under which all other
monitoring and controlling activities fall under.
2. Perform integrated change control: The functions involved in making
changes to the project plan. When changes to the schedule, cost, or any other
 area of the project management plan are necessary, the program is changed
and re-approved by the project sponsor.
3. Validate scope: The activities involved with gaining approval of the project's
deliverables.
4. Control scope: Ensuring that the scope of the project does not change and
that unauthorized activities are not performed as part of the plan (scope creep).
5. Control schedule: The functions involved with ensuring the project work is
performed according to the schedule, and that project deadlines are met.
6. Control costs: The tasks involved with ensuring the project costs stay within
the approved budget.
7. Control quality: Ensuring that the quality of the project?s deliverables is to
the standard defined in the project management plan.
8. Control communications: Providing for the communication needs of each
project stakeholder.
9. Control Risks: Safeguarding the project from unexpected events that
negatively impact the project's budget, schedule, stakeholder needs, or any
other project success criteria.
10. Control procurements: Ensuring the project's subcontractors and vendors
meet the project goals.
11. Control stakeholder engagement: The tasks involved with ensuring that all
of the project's stakeholders are left satisfied with the project work.

Project Portfolio Management

Introduction

When there are many projects run by an organization, it is vital for the
organization to manage their project portfolio. This helps the
organization to categorize the projects and align the projects with their
organizational goals.
Project Portfolio Management (PPM) is a management process with the
help of methods aimed at helping the organization to acquire information
and sort out projects according to a set of criteria.

Objectives of Project Portfolio Management

Same as with financial portfolio management, the project portfolio

management also has its own set of objectives. These objectives are
designed to bring about expected results through coherent team players.
When it comes to the objectives, the following factors need to be
outlined.
• The need to create a descriptive document, which contains vital
information such as name of project, estimated timeframe, cost and
business objectives.
• The project needs to be evaluated on a regular basis to ensure that
the project is meeting its target and stays in its course.
• Selection of the team players, who will work towards achieving the
project's objectives.

Benefits of Project Portfolio Management

Project portfolio management ensures that projects have a set of

objectives, which when followed brings about the expected results.
Furthermore, PPM can be used to bring out changes to the organization
which will create a flexible structure within the organization in terms of
project execution. In this manner, the change will not be a threat for the
organization.
 Cost benefit Evaluation Techniques

We would consider proceeding with a project only where the benefits

outweigh the costs. However, in order to choose among projects, we
need to take into account the timing of the costs and benefits as well as
the benefits relative to the size of the investment.

In the following sections we will take a brief look at some common

methods for comparing projects on the basis of their cash flow forecasts.

Net profit

The net profit of a project is the difference between the total costs and
the total income over the life of the project.this is at the expense of a
large investment. Indeed, if we had £lm to invest, we might undertake all
of the other three projects and obtain an even greater net profit. Note
also, that all projects contain an element of risk and we might not be
prepared to risk £1 m. We shall look at the effects of risk and investment
later in this chapter.

Moreover, the simple net profit takes no account of the timing of the
cash flows. Projects 1 and 3 each have a net profit of £50,000 and
therefore, according to this selection criterion, would be equally
preferable. The bulk of the income occurs late in the life of project 1,
whereas project 3 returns a steady income throughout its life. Having to
wait for a return has the disadvantage that the investment must be
funded for longer. Add to that the fact that, other things being equal,
estimates in the more distant future are less reliable that short-term
estimates and we can see that the two projects are not equally preferable.

Payback period

The payback period is the time taken to break even or pay back the
initial investment. Normally, the project with the shortest payback
period will be chosen on the basis that an organization will wish to
minimize the time that a project.

The advantage of the payback period is that it is simple to calculate and

is not particularly sensitive to small forecasting errors. Its disadvantage
as a selection technique is that it ignores the overall profitability of the
project - in fact, it totally ignores any income (or expenditure) once the
project has broken even. Thus the fact that projects 2 and 4 are, overall,
more profitable than project 3 is ignored.

Return on investment

The return on investment (ROI), also known as the accounting rate of

return (ARR), provides a way of comparing the net profitability to the
investment required. There are some variations on the formula used to
calculate the return on investment but a straightforward common version
is

The main difficulty with NPV for deciding between projects is selecting
an appropriate discount rate. Some organizations have a standard rate
but, where this is not the case, then the discount rate should be chosen to
reflect available interest rates (borrowing costs where the project must
be funded from loans) plus some premium to reflect the fact that
software projects are inherently more risky than lending money to a
bank. The exact discount rate is normally less important than ensuring
that the same discount rate is used for all projects being compared.
However, it is important to check that the ranking of projects is not
sensitive to small changes in the discount rate - have a look at the
following exercise.

Internal rate of return

One disadvantage of as a measure of profitability is that, although it

may be used to compare projects, it might not be directly comparable
with earnings from other investments or the costs of borrowing capital.
 Project Risk Evaluation

Risk is inevitable in a business organization when undertaking projects.

However, the project manager needs to ensure that risks are kept to a
minimal. Risks can be mainly divided between two types, negative
impact risk and positive impact risk.
Not all the time would project managers be facing negative impact risks
as there are positive impact risks too. Once the risk has been identified,
project managers need to come up with a mitigation plan or any other
solution to counter attack the risk.

Project Risk Management

Managers can plan their strategy based on four steps of risk management
which prevails in an organization. Following are the steps to manage
risks effectively in an organization:
• Risk Identification
• Risk Quantification
• Risk Response
• Risk Monitoring and Control
Let's go through each of the step in project risk management:

Risk Identification

Managers face many difficulties when it comes to identifying and naming

the risks that occur when undertaking projects. These risks could be
resolved through structured or unstructured brainstorming or strategies.
It's important to understand that risks pertaining to the project can only
be handled by the project manager and other stakeholders of the project.
Risks, such as operational or business risks will be handled by the
relevant teams. The risks that often impact a project are supplier risk,
resource risk and budget risk. Supplier risk would refer to risks that can
occur in case the supplier is not meeting the timeline to supply the
resources required.
Resource risk occurs when the human resource used in the project is not
enough or not skilled enough. Budget risk would refer to risks that can
occur if the costs are more than what was budgeted.

Risk Quantification

Risks can be evaluated based on quantity. Project managers need to

analyze the likely chances of a risk occurring with the help of a matrix.

Risk Response

When it comes to risk management, it depends on the project manager to

choose strategies that will reduce the risk to minimal. Project managers
can choose between the four risk response strategies, which are outlined
below.
• Risks can be avoided
• Pass on the risk
• Take corrective measures to reduce the impact of risks
• Acknowledge the risk

Risk Monitoring and Control

Risks can be monitored on a continuous basis to check if any change is

made. New risks can be identified through the constant monitoring and
assessing mechanisms.

Strategic Program Management

While project management takes a project from its starting point to its
end, strategic project management looks at the big picture. It links the
project to how it benefits the company’s efficiency and competitiveness.

Strategic project management identifies and implements the

organisation’s long-terms goals and objectives into the project. With top
tier management involvement, it explains why the organisation exists
and the context within which it operates.

There are three common components which drive the project to its
ultimate goal for the company:

1. Strategic analysis

This forms the basis for which projects an organisation chooses to

undertake. Each project needs to link to the organisation’s mission and
be key to meeting long-term objectives.

However, bearing in mind that strategic management is about the big

picture, it also addresses external factors that could affect progress.
Thus, project managers often use strategic analysis tools such as
PESTLE to identify potential issues and minimise their impact.

2. Strategic choice

Just how does a company decide which projects to be involved with?

Managing multiple projects is a complex task, and something that
project managers do in their daily routine. But deciding on the ‘right’
projects is an important step which requires a strategic choice.

Essentially, it means identifying projects that meet the aspirations and

expectations of stakeholders, while also playing to the company’s
strengths. There’s also a need to identify and take advantage of external
opportunities, while avoiding external threats.
3. Strategic implementation

With the scene set, the third stage of strategic management is

implementation. Here, strategic project management sets out the long-,
medium- and short-term goals for projects and programmes.

Steps in Project Planning

Planning is the most difficult process in project management. The
framework described is called the Stepwise method to help to
distinguish it from other methods.

Step 0: Select Project

Step 1: Identify project scope and objectives

: Identify objectives and practical effectiveness in meeting those

objectives.
: Establish a project authority.

: Stakeholder analysis - identify all stakeholders in the project and their

interests.

: Modify objectives in the light of stakeholder analysis.

: Establish methods of communication with all parties.

Step 2 : Identify project infrastructure

: Identify installation standard and procedures

: Identify project team organization

Step 3 : Analyse project characteristics

: Distinguish the project as either objectives- or product-driven.

: Analyse other project characteristics
: Identify high-level project risks
: Take into account use requirements concerning implementation
: Select development methodology and life-cycle approach
: Review overall resource estimates

Step 4 : Identify project products and activities

: Identify and describe project products
: Document generic product flows
: Recognize product instances
: Produce ideal activity network
: Modify the ideal to take into account need for stages and checkpoints

Step 5 : Estimate effort for each activity

: Carry out bottom-up estimates
- distinguish carefully between effort and elapsed time
: Revise plan to create ontrollable activities
- breakup very long activities into a series of smaller ones
- bundle up very short activities

Step 6 : Identify activity risks

: Identify and quantify activity based risks
- damage if risk occurs
- likelihood if risk occuring
: Plan risk reduction and contingency measures
- risk reduction : activity to stop risk occuring
- contingency : action if risk does occurs
: Adjust overall plans and estimates to take account of risks

Step 7 : Allocate resources

: Identify and allocate resources
: Revise plans and estimates to take into account resource constraints

Step 8 : Review/ Publicize plans

: Review quality aspects of the project plan
: Documentr plans and obtain agreement

Step 9 and 10 : Execute plan. Lower levels of planning