Introduction 2 A Sad Story � Standish Group Research Study “CHAOS” 1995 Info IV Fully successful (on-time, late, over-budget, IT Project Management on-budget, with all features or offered fewer 16% 53% as initially specified features than originally specified Prof. Dr. Peter Müller 31% cancelled prior to Software Component Technology completion � The average unsuccessful project (yellow and red) - Lasts 222% longer than it was planned to last - Goes over budget by 189% (4% by more than 400%) - Offers 61% of originally specified features (yellow) Summer Semester 04 Peter Müller – Info IV – IT Project Management, SS 04 3 4 Introduction Introduction Why IT-Projects Fail How to Avoid Troubled Projects � Top 5 reasons measured by frequency of responses by IT � Apply proper engineering executive management � Characteristics of IT-projects � Failure profiles of yellow projects � Phases of IT-projects with their purpose, methods, and 1. Lack of User Input 12,80% deliverables 2. Incomplete Requirements 12,30% 3. Changing Requirements 11,80% � Apply proper project management 4. Lack of Executive Support 7,50% � Main processes of project management with their inputs, 5. Technology Incompetence 7% techniques, tools, and outputs � Failure profiles of red projects � Main areas of project management 1. Incomplete Requirements 13,10% (scope, time, cost, quality, risk, etc.) 2. Lack of User Involvement 12,40% 3. Lack of Resources 10,60% � Recognize the importance of non-technical aspects 4. Unrealistic Expectations 9,90% � Some basic rules of successful project management 5. Lack of Executive Support 9% Peter Müller – Info IV – IT Project Management, SS 04 Peter Müller – Info IV – IT Project Management, SS 04 5 6 Agenda Basics Agenda What is a Project? Every project has a definite beginning and a definite end Basics � Definition: Integration Management A project is a temporary endeavor undertaken to create a unique product or service Project Lifecycle The product or service Project Management Lifecycle is different in some distinguishing way from all similar products and services � In contrast: Operations are ongoing and repetitive Peter Müller – Info IV – IT Project Management, SS 04 Peter Müller – Info IV – IT Project Management, SS 04 1
Basics 7 Basics 8 Examples for Projects and Operations What is an IT-Project? � Projects � Definition: An IT-project is a project to create a product or - Developing a new software application service, of which the usage of information - Implementing a new business procedure technology is the decisive characteristic - Adding functionality to an IT system - Doing a Diplomarbeit � Operations � Examples - Bugfixing of an existing software application - The development of a software application is an IT- - Selling train tickets project (IT-based product) - The development of a car is not an IT-project, although - Running a car factory information technology is involved substantially Peter Müller – Info IV – IT Project Management, SS 04 Peter Müller – Info IV – IT Project Management, SS 04 9 10 Basics Basics From Projects to Operations Characteristics of Projects � Temporary endeavor Project Operation management management � Unique product or service � Performed by people Project Operation Ideas, � Constrained by limited resources studies (Development) (Production) - Budget, time, staff � Planned , executed , and controlled Project duration Time � Have their own organization Project Project start end � Applications are neither projects nor operations, but products Peter Müller – Info IV – IT Project Management, SS 04 Peter Müller – Info IV – IT Project Management, SS 04 11 12 Basics Basics Core Activities and Project Management Project Management ultimately create the product of a project � Definition of Project Management (PM): Project Management is the application of Core Activities knowledge, skills, tools, and techniques to project activities to meet project requirements. Project Management organizes and leads the project work to meet project requirements Peter Müller – Info IV – IT Project Management, SS 04 Peter Müller – Info IV – IT Project Management, SS 04 2
Basics 13 Basics 14 Typical Core Activities in IT-Projects Typical Project Management Activities � Design of a graphical user interface � Communication with team, clients, management � Installation of a local area network � Effort estimations � Integration test of all system components � Planning activities and assigning resources � Training of users on a new application � Comparing actual performance to plan � Implementation of a set of Java classes � Risk analysis � Documentation of design decisions and code � Negotiation with subcontractors � Staff acquisition Peter Müller – Info IV – IT Project Management, SS 04 Peter Müller – Info IV – IT Project Management, SS 04 15 16 Basics Agenda PM Knowledge Areas Agenda PM activities fall into nine Knowledge Areas Basics Project Management Integration Management Project Life Cycle Project Integration Project Scope Project Time Management Management Management Project Management Life Cycle Project Cost Project Quality Project Human Management Management Resource Management Project Communications Project Risk Project Procurement Management Management Management Peter Müller – Info IV – IT Project Management, SS 04 Peter Müller – Info IV – IT Project Management, SS 04 17 18 Integration Management Integration Management The Triple Constraint The Triple Constraint ☺ ☺ Scope Scope � � Time Cost Time Cost ☺ ☺ ☺ ☺ � Project objectives are equally important � Tradeoffs among objectives must be managed � Actions in one project area usually affect other areas � Priorities are set by customers and management Peter Müller – Info IV – IT Project Management, SS 04 Peter Müller – Info IV – IT Project Management, SS 04 3
Integration Management 19 Integration Management 20 More Competing Objectives Project Success � Definition: Scope A project is successful if the specified results are delivered in the required quality and within the Quality Risk predetermined time and resource limits. � Computer scientists tend to focus on scope and quality only Time Cost - The development of a technically perfect application is not a success if the cost exceeds the price clients are willing to pay Customer - Excellent project results often are worthless if they come Satisfaction too late (temporary market windows, external deadlines) Peter Müller – Info IV – IT Project Management, SS 04 Peter Müller – Info IV – IT Project Management, SS 04 21 22 Integration Management Integration Management Project Integration Management Integration Management Processes � Ensure that various elements of the project are � Project plan development properly coordinated - Integrates various planning outputs (time, cost, risk, etc.) - Estimate cost of staffing alternatives - Produces a formal, consistent document to manage project execution - Determine effects of a scope change on schedule � Project plan execution � Make tradeoffs among competing objectives and alternatives - Produces actual work results � Integrated change control � Primarily task of project manager since he / she is responsible for seeing the overall “ big picture ” - Determines that a change has occurred - Manages the changes as they occur - Results in corrective actions and project plan updates Peter Müller – Info IV – IT Project Management, SS 04 Peter Müller – Info IV – IT Project Management, SS 04 23 24 Agenda Project Life Cycle Agenda Projects are Complex Unique Product Project Basics Requirements or Service Integration Management Project Life Cycle � At project start, only broad information about characteristics of product are available Project Management Life Cycle � Average size of IT projects is 500-2000 person days � Different tasks have to be performed such as designing a GUI, testing a module, installing hardware, training users, or negotiating with customers � How can we handle this complexity? Peter Müller – Info IV – IT Project Management, SS 04 Peter Müller – Info IV – IT Project Management, SS 04 4
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