Chapter 1: Introduction

Project Management
Summer 2014/2015

Dr. Nouh Alhindawi

Department of Software Engineering

Jordan University of Science and Technology
 The project (30%)
(Due last day of week 5, presentation starts at week 6,
maximum 4 students per project)
Reports: (5%)
Two reports the first due at end of week 4 the other end of week 8, 3-5 pages each report, done by each student
individually (Meeting minutes, who is doing what, how the project evolving, an appraisal of the team)

Project document includes: (10%)

- mission and scope
- Statement Of Work
- Project charter
- Work Breakdown Schedule
- GANTT chart
- standards followed

Technical documentation: (5%)

- SDLC document
Presentation: (5%)
- problems you face and how you solve it
- success factors
- Failure factors
- lessons learned
Implementation: (5%)
- scenarios you implement
 Once upon a time...

Once upon a time there was a company with four

employees, named Everyone, Someone, Anybody
and Nobody. One day it became necessary to complete an
important task.
Everyone was sure that Someone will do it. Anybody
could do it, but Nobody did not do it. Someone got angry
because it was work for Everyone.
Everyone thought that Anybody could do it but Nobody
realized that Everyone will not do it.
In the end, Everyone blamed Someone that Nobody
did not do what Anybody could do.
 Managers and Leaders

Managers are people who do things right.

Leaders are people who do the right thing.

The difference may be summarized as activities

of vision and judgment versus activities of
mastering routines.
 More about mangers and leaders
The manager administers; the leader innovates.
The manager is a copy; the leader is an original.
The manager maintains; the leader develops.
The manager accepts reality; the leader investigates it.
The manager focuses on systems and structure; the leader focuses on people.
The manager relies on control; the leader inspires trust.
The manager has a short-range view; the leader has a long-range perspective.
The manager asks how and when; the leader asks what and why.
The manager has his or her eye always on the bottom line; the leader has his
or her eye on the horizon.
The manager imitates; the leader originates.
The manager accepts the status quo; the leader challenges it.
The manager is the classic good soldier; the leader is his or her own person.
The manager does things right; the leader does the right thing.
 More about mangers and leaders
position A person becomes a manager by his position. A person becomes a leader
on basis of his personal qualities.
Followers The subordinates are the followers of managers. The group of employees
whom the leaders leads are his followers.
Necessity A manager is very essential to a concern. A leader is required to create
friendly and warm relation between person working in and for organization.
Functions A manager performs all five functions of management. Leader influences
people to work willingly for group objectives. (Planning, staffing, Organizing,
Directing/Leading, Controlling)
Stability It is more stable. Leadership is temporary.
Accountability Manager is accountable for self and subordinates behavior and
performance. Leaders have no well defined accountability.
Followers People follow manager by virtue of job description. People follow them
on voluntary basis.
Role continuation A manager can continue in office till he performs his duties
satisfactorily in correspondence with organizational goals. A leader can maintain his
position only through day to day wishes of followers.
 Five functions of Management
Planning, It is the basic function of management. Planning is deciding in advance - what to
do, when to do & how to do. It bridges the gap from where we are & where we want to be.
A plan is a future course of actions. It is an exercise in problem solving & decision making.

Staffing, It is the function of manning the organization structure and keeping it manned.
Manpower, training.
Organizing: It is the process of bringing together physical, financial and human resources
and developing productive relationship amongst them for achievement of organizational
goals. According to Henry Fayol, To organize a business is to provide it with everything
useful or its functioning i.e. raw material, tools, capital and personnels.
Directing, Supervision, Motivation, Leadership, Communication

Controlling, The purpose of controlling is to ensure that everything occurs in conformities

with the standards. An efficient system of control helps to predict deviations before they
actually occur. According to TheoHaimann, Controlling is the process of checking whether
or not proper progress is being made towards the objectives and goals and acting if necessary,
to correct any deviation. Therefore controlling has following steps:
Establishment of standard performance.
Measurement of actual performance.
Comparison of actual performance with the standards and finding out deviation if any.
Corrective action.
 Quotes
Remember the difference between a boss and a leader; a boss says "Go!" - a leader says "Let's go!"

A chief is a man who assumes responsibility. He says "I was beaten," he does not say "My men were
beaten.

A leader leads by example, whether he intends to or not.

"Leadershipistheartofgettingsomeoneelsetodosomethingyouwantdone
becausehewantstodoit."

Leadership is action, not position.

You don't have to hold a position in order to be a leader.

Example is not the main thing in influencing others. It is the only thing.

Leaders don't create followers, they create more leaders.

 Why Project Management?
Better control of financial, physical, and human
resources
Improved customer relations
Shorter development times
Lower costs
Higher quality and increased reliability
Higher profit margins
Improved productivity
Better internal coordination
Higher worker morale
 Standish Group.
Project Attribute 1994 2004
Statistics Statistics
Cancelled before 31% 23%
completion
Missed deadline, 88% 51%
over budget
Average cost 189% 45%
overrun
schedule overrun 223% 65%
 Latest Report of Standish Group
Recession-related IT budget slashing and layoffs are taking their toll on IT project
success rates, according to the results of the latest CHAOS Summary 2009 report
from The Standish Group
The Boston, Mass.-based IT project management research and consulting firm
surveyed 400 organizations and found a decrease in IT project success rates and an
increase in IT Project Failure rates during the past two years. Specifically:
- 32 percent of IT projects were considered successful, having been
completed on time, on budget and with the required features and functions. Nearly
one-in-four

- 24 percent IT projects were considered failures, having been cancelled before

they were completed, or having been delivered but never used.

- The rest (44 percent) were considered challenged: They were finished late, over
budget, or with fewer than the required features and functions.
 Project Fails for many different
reasons
Other project take precedence
Team members loose sight of the purpose
Project managers try to do the work rather than lead the
team
At the root is a fundamental problem: VISION.
Vision in project management terms, is the ability to
clearly see intangible and recognize the actions
required to get there
One of your jobs, as PM, is to develop, nurse, and
transfer the vision to everyone on your team.
 Quotes in Vision
People only see what they are prepared to see.

Vision is the art of seeing what is invisible to others.

Vision without action is a dream. Action without vision is

simply passing the time. Action with vision is making a
positive difference.

There are always flowers for those who want to see them.

It's easy to see, hard to foresee.

 Vision
Is an attractive, ideal future that is credible yet not
readily attainable, the dream of what it wants to
become, where the organization needs to be headed.
It represent a dream that can come true:
- Is easily understood by all stakeholders
- Is briefly stated, yet clear and comprehensive
- Is challenging, yet attainable
- Is lofty, yet tangible
- Stir excitement, create unity of purpose
- Is not concerned with numbers
 Sampleofvisions
Heinz vision, is to be "THE WORLD'S PREMIER (best) FOOD COMPANY, OFFERING
NUTRITIOUS, SUPERIOR TASTING FOODS TO PEOPLE EVERYWHERE.
Nike, 1960s: Crush Adidas
Current: To be the number one athletic company in the world
HONDA vision is to Be a Company that Our Shareholders, Customers and Society Want.
Kraft Foods, Our Vision is Helping People Around the World Eat and Live Better.
Mazda established a new corporate vision in December 1999, comprised of:
- Vision: To create new value, excite and delight our customers through the best
automotive products and services.
- Mission: With passion, pride and speed, we actively communicate with our
customers to deliver insightful automotive products and services that exceed their
expectations.
- Value: We value integrity, customer focus, creativity, and efficient and nimble
actions and respect highly motivated people and team spirit. We positively support
environmental matters, safety and society.
 Mission
A broadlystateddefinitionoftheorganizationsbasicbusinessscopeand
operationsthatdistinguishesitfromsimilartypesoforganizations.

The mission takes the next step (after vision) and describes WHO the organization
is, WHAT it does, and WHERE it is going.

Is a brief description of a company's fundamental purpose. It answers the

question, "Why do we exist?

When writing mission, be brief, but comprehensive, choose wording that is

simple, easy to understand, and descriptive

Avoid HOW statements, how the mission will be accomplished is described in the
strategies section in the plan

Microsoft mission Toenablepeopleandbusinessthroughouttheworldto

realizetheirfullpotential
 Management is needed in ALL:
Sizes of organization
Types of organizations
Organization levels
Organization areas

An organization is a deliberate arrangement of

people to accomplish some specific purpose.
 Things (sayings) to think about..
Golden Rules
If you can not measure it, you can not manage it
Do unto others as you would have them do unto you
Dont ever take a fence down until you know the reason why
it was put up
Similar problems have similar (not same) solutions.
 Management approaches
Traditional culture, managers think and employee do what they are
told, the role of the manager in a traditional management model is to
solve problems at the top level
Quality culture, managers are coaches of the team they do:
- communicate the vision, mission, and goals
- Provide resources
- Remove barriers
- Seek employee input and feedback
- Build trust
- Provide training
- Reward and recognize performance
 Denver International Airport
(example of project failure)

Designed as largest US airport

Denver International Airport Baggage System. It ran over
budget by almost 30%, with an actual cost of $250M vs.
$195M planned, and completion was delayed 18 months.

Cost
Estimate $1.7 billion (to be done Oct 1993)
Pre-construction budget $2.08 billion
Aug 1994 spent $3.2 billion
Final 16 months late, $2 billion over budget
 What is a project?
It is a group of individuals who are assembled to perform different tasks on a common set of
objectives for a defined period of time

How is it different from work?

A project is a temporary endeavor (attempt) undertaken to accomplish a unique product,
service, or result
(PMBOK Guide 2009, p. 4
A project is a temporary effort to create a unique product or service. Projects usually include
constraints and risks regarding cost, schedule or performance outcome.

Attributes of projects
Unique, despite the presence of repetitive elements within it.
Temporary, definite beginning and end, does not apply to the product or service of the
project.
require resources, often from various areas
should have a primary sponsor and/or customer
involve uncertainty
 Software project versus others
Invisibility, progress in software project is not
immediately visible.
Complexity.
Conformity, software system has to conform to
the requirement of human (inconsistent) clients.
Flexibility, one strength of software is its flexible
and easy to change.
 Categories of Software projects

Information system project, system interface

with organization, registration system.

Embedded system (process control), system

interface with a machine, control the air
conditioning equipment in a building.
 Project management and operation
management
Similarities are, consume resources,
constrained, planned , executed, uncertainty,
Consist of activities, Predecessor relationships
and controlled.
Differences, projects are temporary and
unique, operations are repetitive and ongoing.
 Project and operation
Opening new branch in city center is a project
Daily weather forecast is an operation.
Soccer team daily training sessions is an operation.
Installing a pool in your backyard is a project
Room service at a hotel is an operation
Soccer team qualifying for world champion ship cup
is a project.
Cutting your grass is considered operation
 Group Size
individual term paper
group wedding
system implementation
organization auditing
plant construction
multi-organization space shuttle
wars
 What is Project Management?
Project management is the application of knowledge,
skills, tools, and techniques to project activities in
order to meet project requirements
(PMI, Project Management Body of Knowledge , 2009, p. 6)

Project Management is the discipline of planning, organizing, motivating,

and controlling resources to achieve specific goals

Project management is a methodical approach to planning and

guiding project processes from start to finish.
 PM at its Most Basic
Key project management responsibilities include
- creating clear and attainable project objectives,
- building project requirements
- managing the triple constraint for projects, which is cost, time, and scope
The Triple Constraint
The scope constraint refers to what must be done to produce the project's
end result
The time constraint refers to the amount of time available to complete
a project?
The cost constraint refers to the budgeted amount available for the project
It is the project managers duty to balance these three often competing goals
 What to do if we have lot of
projects?

Are they independent?

If they have common goal >> Program
If not?
What causes their mutual dependence?
How to manage this situation?
Portfolio = a means for management of a
collection of Projects and/or Programs.
 Program and Portfolio
A program is a group of related projects managed together to
obtain specific benefits and controls that would likely not
occur if these projects were managed individually. The
Program Manager will be responsible for the rolling up of
information from each of the projects and ensuring the overall
program is driving towards achieving the business objectives.

A portfolio is a collection of projects or programs grouped

together to facilitate effective management of efforts to meet
strategic business objectives. The Portfolio Manager will
become very involved in the frontend activities of identifying,
prioritizing and initiating projects and programs.
 Portfolio, program, project,
and sub project
All project done by a company is a portfolio

Construction projects done by same company is

a program.
Development of a subdivision contains 500
houses is a project.
Construction of a house in the subdivision is a
sub project.
 Quotes
The sooner you begin coding the later you finish.

What is not on paper has not been said.

If you dont know where youre going, any road will take you there.

If you fail to plan you are planning to fail.

If you don't attack the risks, the risks will attack you.
 PM Tools and Techniques
Assist project managers and their teams in
various aspects of project management
Some specific ones include
Project Charter, scope statement, and WBS (scope)
Gantt charts, network diagrams, critical path
analysis, critical chain scheduling (time)
Cost estimates and earned value management
(cost)
 Project Charter
It is similar to the goal, but more official, more detailed, and in line with
vision and goals of the company. In most companies a project charter is
the foundation for success, it accomplishes the following:
-The Project Charter describes the project vision,
objectives, scope, organization and implementation
plan
Authorizes the project
Define the business need
Identify the sponsor of the project
Identify the project manager, makes him accountable for the project.
Assigns authority to the project manager on behalf of the project sponsor
 How to create a Project Charter
Step 1: Identify the Project Vision
Vision: The first step taken when defining a Project Charter is to identify
the project vision. The vision encapsulates the purpose of the project and is
the defined end goal for the project team.
Objectives: Then based on the vision, list three to five objectives to be
achieved by the project. Each objective should be Specific, Measurable,
Achievable, Realistic and Time-bound (SMART).
Scope: With a clear view of the Vision and Objectives of the project, its
time to define the project scope. The scope defines the formal boundaries
of the project by describing how the business will be changed or altered by
the project delivery.
Deliverables: Then you need to describe each of the deliverables that the
project will produce.
 How to create a Project Charter
Step 2: Describe the Project Organization
The next step is to identify how the project will be structured by listing the
customers, stakeholders, roles, responsibilities and reporting lines.
Customers: First, identify the project customers. A customer is a person or entity
that is responsible for accepting the deliverables when the project is complete.
Stakeholders: Then identify the project stakeholders. A stakeholder is a person or
entity within or outside of the project with a specific key interest or stake in the
project. For example, a Financial Controller will be interested in the cost of the
project, and a CEO will be interested in whether the project helps to achieve the
company vision.
Roles: Now list the key roles involved in delivering the project. Examples of roles
include the Project Sponsor, Project Board and Project Manager. Then summarize
each of the primary responsibilities of each role identified.
Structure: Once you have a clear view of the roles needed to undertake the project,
you can depict the reporting lines between those roles within a Project Organization
Chart.
 How to create a Project Charter
Step 3: Plan the Approach to Implementation, You now have a solid
definition of what the project needs to achieve and how it will be organized to
achieve it. The next step is to describe the implementation approach as follows:
Implementation Plan: To provide the Customer and Stakeholders with confidence
that the project implementation has been well thought through, create an
Implementation Plan listing the phases, activities and timeframes involved in
undertaking the project.
Milestones: In addition, list any important milestones and describe why they are
critical to the project. A milestone is typically an important project event, such as
the achievement of a key deliverable.
Dependencies: List any key dependencies and their criticality to the project. A
dependency is defined as an activity that is likely to impact on the project during its
life cycle.
Resource Plan: Create plan which summarizes the resources involved in
undertaking the project by listing the labor, equipment and materials needed. Then
budget the financial resources needed.
 How to create a Project Charter
Step 4: List the Risks and Issues
The final step taken to complete your Project Charter is to identify any project
risks, issues, assumptions and constraints related to the project.
And thats it. If you complete each of the steps above, then you will create a solid
Project Charter for your project, helping you to manage scope and deliver
consistently on time and within budget.
 Project charter elements
Project name
Project sponsor name
Project manager name
Project team
Project purpose
Business case
Project result
Project resources
Project objectives (measurable with success criteria)
Requirement and description at high level
Risks at high level
Basic time line and Milestone schedule at a summary level
Budget at a summary level
Approval requirements
 Management Styles
Situational management, is a method whereby the
current state of the organization determines what operational procedures
will be implemented to achieve desired outcomes. Situational
managementemphasizes a very adaptive management style.

Change management, is a systematic approach to dealing

with change, both from the perspective of an organization and on the
individual level.
To define Change Management, you could say that it is about
managing this transition from the old position to the new one.
Change management has at least three different aspects, including:
adapting to change, controlling change, and implementing change
 So youre gonna
be a Project Manager
Requisite Skills
Comfortable with change
Understand the organizations they work in
Able to lead teams to accomplish project goals
Need both hard and soft skills
Hard skills - product knowledge, knowing the various
PM tools and techniques
Soft skills - being able to work with people
 So youre gonna
be a Project Manager
Suggested Skills
Soft skills (expanded)
Communication: listening, persuading
Organizational: planning, goal-setting, analyzing
Team Building: empathy (understanding), motivation.
Leadership: set examples, be energetic, have vision
(big picture), delegate, be positive
Coping: flexibility, creativity, patience, persistence
Technological: experience, project knowledge
Effective Project Manager requires:
For a project manager to be effective he/she
needs to be able to both manage and Lead .
Manage: Knowledge in PM good practice. Tools, and techniques Plans
project, risk, contingency, assumptions, scope, change, communication, Resource
Allocation, Time/schedule, Costs/budgets, Monitoring and Controlling,
Coordinating, Directing, Conflict, Decision Making and Problem Solving

Lead, Vision/goals, Team Building, Persuasion, Inspiration & Motivation,

Communications, Counseling & Coaching, Instructing & Teaching, Mentoring &
Guiding
 Project manger power
Expert, authority comes from experience.
Reward, authority to reward the team.
Formal (legitimate), assigned by senior
management.
Coercive, (intimidation) has the authority to
discipline members of the project team.
Referent, referred by CEO and has some of the
power of the person who assigned him.
 Effective decision making
Ability to negotiate and influence the
organization and the project management team
Guidelines:
- focus on goals to be served
- follow a decision making process
- study the environment factors
- develop personal qualities
- simulate team creativity
- manage opportunity
 Decision making process
Define Problem: The problem here is which TV to buy
Fact Collection: Collect all data related to the different TVs from different
showrooms

Solution Finding: narrow down the TV options. Consider your budget and your
needs

Select Solution: narrow down your choice to select any one.

Implement Solution: Once you have decided on the TV, go ahead and buy it
Monitor Solution: See if the TV that you purchased is working for you.
Check if all the features that you selected work for you or no
 Effective Project manger

Follow management, do the same they have done before you.

Delegation is necessary.
You are in charge, establish the flow of communication from
your team to you, not around you.
Remember the user.
Keep the big picture in mind.
Learn how to speak different languages, business speak,
techno-speak, speak appropriately to the audience you address.
Delegate, delegate, delegate
 Delegation
Youcandelegateauthority,butyoucanneverdelegate
responsibilityfordelegatingatasktosomeoneelse.

Empowering other to act on your behalf.

Accountability remains with the manager as he still
responsible for success
Team member is accountable towards the manager.
Management function should not be delegated such as
appraisal, motivation, and reprimands.

Benefits of delegation are free your self for important work,

team building, and skill development.
Presenting the project to Management

Start at the end, tell them first what the

proposed project will deliver, forgot the
techno-language that only impresses geeks.

Follow WIIFM Principle, Whats In It For Me.

Tailor the presentation, get to the point.

PM phases.
Relationships Among PGs and Knowledge Areas
 The Process groups interactions
(Topics of Project Management)
1- Project integration management, includes the process and activities
needed to identify, define, combine, unify, and coordinate the
various processes and PM activities.
2- project scope management, includes processes required to ensure
that the project includes the work required, and only the work
required to, complete the project successfully.
3- Project time management, includes the processes required to
manage the timely completion of a project.
4- Project cost management, includes the processes involved in
estimating, budgeting, and controlling cost so that the project can
be completed within the approved budget.
5- Project quality management, includes the processes and activities
of the performing organization that determine quality policies,
objective and responsibilities so that that project will satisfy the
needs for which it was undertaken
 The Process groups interactions
(Topics of Project Management)

6- Project human resources, includes the processes that organize

and mange project team.
7- Project communications management, includes the processes
required to ensure timely appropriate generation, collection,
distribution, storage, retrieval, and ultimate disposition of
project information.
8- Project risk management, includes the processes concerned with
conducting risk management planning, identification, analysis,
responses, and monitoring and control on a project.
9- Project procurement management, includes the processes to
purchase or acquire the product, services, or results needed
from outside the project team to perform the work.
 Quotes
Themostimportantthingincommunicationishearingwhatisn'tsaid .
PeterF.Drucker

Theroleofawriterisnottosaywhatweallcansay,butwhatweare
unabletosay.
Whatisimportantisseldomurgentandwhatisurgentisseldomimportant.
DwightD.Eisenhower

Aworkwellbegunishalfended
 FoxMeyer Drug

Large drug distributor, wanted to implement ERP

 ERP Market Share
(SAP)
Systems, Applications & Products in Data Processing
founded 1972, Walldorf, Germany
#1 vendor of standard business-application software in the world - 32% market
share
PRODUCTS: R/2 (mainframe; 11 modules)
R/3 (client/server - 1992; now > 1 million users
over 9000 customers in 90 countries
 FoxMeyer Corp
Statistics:
Public Company
Incorporated: 1977
Employees: 4,097
Sales: $5.17 billion (1995)
Stock Exchanges: New York

Holding company in health care services

wholesale distribution of drugs & beauty aids
served drug stores, chains, hospitals, care facilities
US: 23 distribution centers
 FoxMeyer
Due to aging population & growth in health care, expected high
growth
Market had extreme price competition, threatening margins
Long-term strategies:
efficiently manage inventory
lower operating expenses
strengthen sales & marketing
expand services
3 data processing centers, linked
included electronic order entry, invoice preparation, inventory tracking
1992 began migration of core systems
Benefits not realized until system fully integrated
 New System
Needed new distribution processes & IS to capitalize on growth
Wanted to be able to undercut competitors
Replacing aging IS key
PROJECT: 1994 - hoped to save $40 million annually (estimated cost $65
million)
complete ERP installation & warehouse automation system (another $18
million)
Select ERP
hundreds of thousands of transactions
meet DEA & FDA regulations
benchmarked & tested for months
picked SAP R/3
hired Andersen Consulting to integrate
hired Pinnacle Automation for warehouse automation system
 Operations
FoxMeyer expected the new systems to
improve operational efficiency
Signed several giant contracts
counted on savings, underbid competitors
Counted on being up and running in 18
months
 Project risks

The FoxMeyer Corporation Delta III project had the following project
risks:

- Environmental- the management had little or no control.

- Execution- the project lacked skilled and knowledgeable personnel.
- Scope- FoxMeyer was an early adopter of SAP R/3. After the project
began, FoxMeyer signed a large contract.
- customer mandate the commitment from the top management and
users. This was not the case for some of the senior management.
- SAP & warehouse automation system integration, two sources, two
installers - coordination problems
- New contracts forced change in system requirements after testing &
development underway
Late, Over budget
SAP successfully implemented
 Outcomes
Lost key customer - 15% of sales
To recoup, signed new customer, expected $40 million benefit from
ERP immediately - pushed ERP project deadline ahead 90 days, no
time to reengineer
Warehouse system consistently failed
late orders, incorrect shipment, lost shipments
losses of over $15 million
August 1996 filed for Chapter 11
McKesson Bought FoxMeyer operation
Made ERP work
On time
Within budget
Full functionality
 Project Critical Success Factors
Belassi & Tukel [1996]
Goal Definition
Define goals, scope, requirements
Top Management Support
Continued involvement
User Involvement
Project Manager
Competent; on-site
Others
Project team, manpower, accurate estimates, test & train
see table 1-2 on page 11 for more.
 Executive Summary
Knowledge AND skills (and attitude(
Thanks!
 Summary
All projects are complex
IS projects even more so
Get diverse people to work together
Time
Cost
Functionality
Systems view helps understand projects
Critical Success Factors
Top management support
Clearly stated objectives
End user involvement