Cmgt 410 Project Management Plan - PowerPoint by wnm97593

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									             CMGT/410
Project Planning and Implementation




            Randy Hill, PMP
                          Agenda


         1. Admin

         2. Review

         3. Project Cost Management

         4. Project Quality Management




Week 3         CMGT/410 - Project Planning and Implementation   2
              Questions?




Week 3   CMGT/410 - Project Planning and Implementation   3
CMGT/410 – Project Planning and Implementation

   • Week 1: Project Management

   • Week 2: Project Time Management

   • Week 3: Project Cost and Project Quality
     Management

   • Week 4: Project Human Resources and
     Project Procurement Management

   • Week 5: Project Risk Management

  Week 3      CMGT/410 - Project Planning and Implementation   4
                   Objectives
 • Explain project cost management.

 • Explain project quality management.




Week 3       CMGT/410 - Project Planning and Implementation   5
   Project Management Framework
                       Core Functions

   Scope        Time       Cost                         Quality
   Management   Management Management                   Management



Stakeholders
needs and               Project Management Integration
expectations




  HR            Communications Risk                           Procurement
  Management    Management     Management                     Management
                  Facilitating Functions



Week 3            CMGT/410 - Project Planning and Implementation            6
Week 3   CMGT/410 - Project Planning and Implementation   7
                 General Comments
 • Cost estimating and cost budgeting are often
   combined on small projects
         – They are so tightly integrated


 • Ability to influence cost is highest earliest in
   the project

 • Need scope and requirements done first and
   ASAP!



Week 3              CMGT/410 - Project Planning and Implementation   8
                                                              PMI Project Cost Management




7.1 Cost Estimating                            7.2 Cost Budgeting                     7.3 Cost Control
7.1.1 Inputs                                   7.2.1 Inputs                           7.3.1 Inputs
   1 WBS                                          1 Cost estimates                       1 Cost baseline
   2 Resource requirements                        2 WBS                                  2 Performance reports
   3 Resource rates                               3 Project schedule                     3 Change requests
   4 Activity duration estimates                  4 Risk management plan                 4 Cost management plan
   5 Estimating publications                   7.2.2 Tools and Techniques             7.3.2 Tools and Techniques
   6 Historical information                       1 Cost budgeting tools &               1 Cost Control Plan
                                               techniques                                2 Performance Measurement
   7 Chart of Accounts
                                               7.2.3 Output                              3 EVM
   8 Risks
                                                  1 Cost baseline                        4 Additional planning
7.1.2 Tools and Techniques
   1 Analogous estimating                                                                5 Computerized tools
   2 Parametric estimating                                                            7.3.3 Output
   3 Bottom up Estimating                                                                1 Revised cost estimates
   4 Computerized tools                                                                  2 Budget updates
   5 Other cost estimation methods                                                       3 Corrective action
7.1.3 Output                                                                             4 Estimate at completion
   1 Cost estimates                                                                      5 Project closeout
   2 Supporting detail                                                                   6 Lessons learned
   3 Cost management plan




   Week 3                            CMGT/410 - Project Planning and Implementation                                  9
           Chart of Accounts
 • Coding structure by which we group
   expenses

 • Can be per phase

 • Per step of development process

 • Will be defined by the bean counters but VIP




Week 3       CMGT/410 - Project Planning and Implementation   10
Tools and Techniques for Estimating
 • Analogous (or top-down) estimating

 • Parametric estimating

 • Bottom-up estimating

 • Computerized tools

 • Other cost estimation methods


Week 3       CMGT/410 - Project Planning and Implementation   11
              Analogous Estimating
 • Also called top-down
 • Compare against a similar project
 • Is another form of expert judgment
 • Used when we have little information to work
   with, normally at the beginning of the project
 • Least costly of the 5 methods, but least
   accurate
         – Most accurate when the projects really are similar
           and/or people really are experts




Week 3              CMGT/410 - Project Planning and Implementation   12
         Parametric Estimating
 • Uses a mathematical model to estimate
 • Works best when the method has been used
   for a long time (e.g., construction)
 • Great if the model is scalable




Week 3      CMGT/410 - Project Planning and Implementation   13
         Bottom-Up Estimating
 • Start at the bottom of the WBS and roll up

 • Normally we can estimate very accurately in
   the small

 • Assumes that we have done sufficient
   breakdown so that we can so estimate




Week 3       CMGT/410 - Project Planning and Implementation   14
               Computerized Tools
 • May find a computer tool that could be useful

 • Example:
         – CoCoMo-II
           • Software development projects
           • http://sunset.usc.edu/research/COCOMOII/




Week 3              CMGT/410 - Project Planning and Implementation   15
              Types of Cost Estimates

    Type of Estimate            When Done                     Why Done         How Accurate
 Rough Order of           Very early in the             Provides rough         –25%, +75%
 Magnitude (ROM)          project life cycle,           ballpark of cost for
                          often 3–5 years               selection decisions
                          before project
                          completion
 Budgetary                Early, 1–2 years out          Puts dollars in the    –10%, +25%
                                                        budget plans
 Definitive               Later in the project, < Provides details for         –5%, +10%
                          1 year out              purchases, estimate
                                                  actual costs




Week 3                 CMGT/410 - Project Planning and Implementation                  16
Typical Problems with IT Cost Estimates
   • Developing an estimate for a large software project is
     a complex task requiring a significant amount of effort
           – Remember that estimates are done at various stages of the
             project
   • Many people doing estimates have little experience
     doing them
           – Try to provide training and mentoring
   • People have a bias toward underestimation
           – Review estimates and ask important questions to make sure
             estimates are not biased
   • Management wants a number for a bid, not a real
     estimate
           – Project managers must negotiate with project sponsors to
             create realistic cost estimates



  Week 3                CMGT/410 - Project Planning and Implementation   17
         Cost of Software Defects*




 It is important to spend money up-front on IT projects
 to avoid spending a lot more later.


         *Collard, Ross, Software Testing and Quality Assurance, working paper (1997).

Week 3                   CMGT/410 - Project Planning and Implementation                  18
         Time-based Cost Approaches
 • Net Present Value (NPV)

 • Internal Rate-of-Return (IRR)

 • Return on Investment (ROI)

 • Breakeven/Payback




Week 3         CMGT/410 - Project Planning and Implementation   19
             Net Present Value (NPV)
 • The value today of a future payment
   discounted at an assumed rate
         – If that rate is positive, will make money


 • Also called the Discounted Cash Flow

 • Pros and cons
         – Present value analysis not only considers all costs
           and benefits, but adjusts the values based on
           timing
         – NPV results depend on future estimates, and are
           only as reliable as the forecasts themselves


Week 3               CMGT/410 - Project Planning and Implementation   20
         Internal Rate of Return (IRR)
 • Finds the nominal percentage that an
   investment will return

 • Find the interest rate at which the
   NPV=ProjectCost

 • Can be done with Excel and iteration

 • Not so common now



Week 3         CMGT/410 - Project Planning and Implementation   21
          Return on Investment (ROI)
 • Measure of the efficiency of the investment

 • Calculated as:
   ((total benefits - total costs) / total costs) * 100

 • Pros and cons
         – ROI does consider all costs and benefits during
           the system’s life, and is a more precise method
           than payback analysis
         – ROI only measures the overall rate of return for
           the total period, and annual rates can vary
           considerably
         – ROI ignores the timing of costs and benefits

Week 3              CMGT/410 - Project Planning and Implementation   22
          Breakeven/Payback
 • Date when cumulative benefit flow exceeds
   cumulative costs flow

 • Normally expressed in months




Week 3       CMGT/410 - Project Planning and Implementation   23
Traditional Cost Reduction Approaches
   • Cost displacement – cost avoidance

   • Work Value Analysis

   • Cost of Quality (CoQ)




  Week 3       CMGT/410 - Project Planning and Implementation   24
Cost Displacement – Cost Avoidance
 • Compares the cost for the proposed system
   against the replaced one

 • Most common way to justify IT projects
         – Used for CPUs for years




Week 3             CMGT/410 - Project Planning and Implementation   25
         Work Value Analysis
 • Permits white collar workers to do more
   profitable work

 • Increases efficiency of doing “same” work

 • Permits “higher” valued work to be done

 • 15% can be saved by such recalibration and
   increase of intellectual specialization



Week 3       CMGT/410 - Project Planning and Implementation   26
         Cost of Quality (CoQ)
 • Based on observation that organizational
   resources can be split into “value-added”
   services and “cost-of-quality” activities

 • Includes costs associated with lack of quality

 • Reducing quality costs can save a bundle




Week 3        CMGT/410 - Project Planning and Implementation   27
         Outputs from Cost Estimating
 • Cost estimates

 • Supporting detail

 • Cost management plan




Week 3         CMGT/410 - Project Planning and Implementation   28
              Cost Estimates
 • Are quantitative estimates normally
   expressed in $$

 • Every cost must be estimated

 • If there are guidelines, follow them




Week 3        CMGT/410 - Project Planning and Implementation   29
            Supporting Detail
 • Description of the work estimates (WBS)

 • Explain the basis of the estimate

 • Document all assumptions made

 • Indicate the range (mean and standard
   deviation)




Week 3       CMGT/410 - Project Planning and Implementation   30
             Cost Management Plan
 • Describes how cost variances will be
   managed
         – Different responses between major and minor
           variances


 • Detail sufficient to do the work




Week 3             CMGT/410 - Project Planning and Implementation   31
                                                              PMI Project Cost Management




7.1 Cost Estimating                            7.2 Cost Budgeting                     7.3 Cost Control
7.1.1 Inputs                                   7.2.1 Inputs                           7.3.1 Inputs
   1 WBS                                          1 Cost estimates                       1 Cost baseline
   2 Resource requirements                        2 WBS                                  2 Performance reports
   3 Resource rates                               3 Project schedule                     3 Change requests
   4 Activity duration estimates                  4 Risk management plan                 4 Cost management plan
   5 Estimating publications                   7.2.2 Tools and Techniques             7.3.2 Tools and Techniques
   6 Historical information                       1 Cost budgeting tools &               1 Cost Control Plan
                                               techniques                                2 Performance Measurement
   7 Chart of Accounts
                                               7.2.3 Output                              3 EVM
   8 Risks
                                                  1 Cost baseline                        4 Additional planning
7.1.2 Tools and Techniques
   1 Analogous estimating                                                                5 Computerized tools
   2 Parametric estimating                                                            7.3.3 Output
   3 Bottom up Estimating                                                                1 Revised cost estimates
   4 Computerized tools                                                                  2 Budget updates
   5 Other cost estimation methods                                                       3 Corrective action
7.1.3 Output                                                                             4 Estimate at completion
   1 Cost estimates                                                                      5 Project closeout
   2 Supporting detail                                                                   6 Lessons learned
   3 Cost management plan




   Week 3                            CMGT/410 - Project Planning and Implementation                                  32
                   Cost Budgeting
 • Should be done before budget request
         – Often not the case




Week 3              CMGT/410 - Project Planning and Implementation   33
         Outputs from Cost Budgeting
 • The cost baseline
         – Usually displayed by an S-curve


 • Could be several plans (e.g., spending plan,
   cash-flow forecast)




Week 3              CMGT/410 - Project Planning and Implementation   34
                                       Cost Baseline Display

                             250
   cumulative expenditures




                             200

                             150
                                                                                                Expected Cash Flow
                                                                                                Cost Baseline
                             100

                             50

                              0
                                   1   2   3    4    5    6    7   8    9 10 11 12
                                                         months




Week 3                                         CMGT/410 - Project Planning and Implementation                        35
                                                              PMI Project Cost Management




7.1 Cost Estimating                            7.2 Cost Budgeting                     7.3 Cost Control
7.1.1 Inputs                                   7.2.1 Inputs                           7.3.1 Inputs
   1 WBS                                          1 Cost estimates                       1 Cost baseline
   2 Resource requirements                        2 WBS                                  2 Performance reports
   3 Resource rates                               3 Project schedule                     3 Change requests
   4 Activity duration estimates                  4 Risk management plan                 4 Cost management plan
   5 Estimating publications                   7.2.2 Tools and Techniques             7.3.2 Tools and Techniques
   6 Historical information                       1 Cost budgeting tools &               1 Cost Control Plan
                                               techniques                                2 Performance Measurement
   7 Chart of Accounts
                                               7.2.3 Output                              3 EVM
   8 Risks
                                                  1 Cost baseline                        4 Additional planning
7.1.2 Tools and Techniques
   1 Analogous estimating                                                                5 Computerized tools
   2 Parametric estimating                                                            7.3.3 Output
   3 Bottom up Estimating                                                                1 Revised cost estimates
   4 Computerized tools                                                                  2 Budget updates
   5 Other cost estimation methods                                                       3 Corrective action
7.1.3 Output                                                                             4 Estimate at completion
   1 Cost estimates                                                                      5 Project closeout
   2 Supporting detail                                                                   6 Lessons learned
   3 Cost management plan




   Week 3                            CMGT/410 - Project Planning and Implementation                                  36
         Purpose of Cost Control
 • Influencing the factors that create changes to
   the cost baseline to make sure the changes
   are acceptable

 • Determine that the cost baseline has
   changed

 • Make the changes in a controlled manner




Week 3       CMGT/410 - Project Planning and Implementation   37
         Activities of Cost Control
• Monitoring the cost performance

• Ensuring that all approved changes are reported
  in the cost baseline

• Preventing unauthorized, incorrect, inappropriate
  costs from being incurred

• Informing stakeholders (as appropriate) about
  the changes

• Keeping expected costs within limits
Week 3        CMGT/410 - Project Planning and Implementation   38
                         TCO for PCs (Gartner Group)

                    45                                                       Development

                    40                                                       Downtime
                    35
                    30                                                       Support
         % of TCO




                    25                                                       Communications
                    20
                    15                                                       Management

                    10                                                       Hardware and
                    5                                                        Software
                    0                                                        End-user IS Cost




                                                                                           123
Week 3                      CMGT/410 - Project Planning and Implementation                 39
         How to Lower TCO
 • Standardize on a platform

 • Purchase cheaper hardware

 • Provide end-user training

 • Use management tools




Week 3       CMGT/410 - Project Planning and Implementation   40
         Common Cost Problems
 • Poor estimating

 • Out-of-sequence starting of events

 • Inadequate WBS

 • No management policy on reporting / control

 • Poor work definition at low levels

 • Inadequate formal planning

Week 3        CMGT/410 - Project Planning and Implementation   41
               More Problems
 • Poor comparison of actual / planned costs

 • Unforeseen technical problems

 • Schedule delays requiring overtime / idle time

 • Unforeseen material escalation factors

 • Inflation


Week 3         CMGT/410 - Project Planning and Implementation   42
Cost Overrun Causes in Proposal Phase
   • Failure to understand requirements

   • Unrealistic appraisal of in-house abilities

   • Underestimating time requirements




  Week 3        CMGT/410 - Project Planning and Implementation   43
Cost Overrun Causes in Planning Phase
   • Omissions

   • Inaccuracy of WBS

   • Misinterpretation of information

   • Use of wrong estimating techniques

   • Failure to identify major cost elements

   • Failure to perform Risk Assessment

  Week 3         CMGT/410 - Project Planning and Implementation   44
Cost Overrun Causes in Negotiation
 • Settling too quickly

 • Procurement ceiling costs

 • Negotiation team that “must win”




Week 3        CMGT/410 - Project Planning and Implementation   45
Cost Overrun Causes in Contracts
 • Contractual discrepancies

 • SOW different from RFP

 • Proposal team different from project team




Week 3       CMGT/410 - Project Planning and Implementation   46
Cost Overrun Causes in Design Phase
  • Accepting customer requests without
    management approval

  • Problems in customer communications

  • Problems in design review meetings




 Week 3       CMGT/410 - Project Planning and Implementation   47
Cost Overrun Causes in Production
 • Excessive material costs

 • Specifications not acceptable

 • Manufacturing and engineering disagreement




Week 3       CMGT/410 - Project Planning and Implementation   48
 Earned Value Management Terms
• Planned Value (PV)
     – formerly called the budgeted cost of work scheduled (BCWS)
     – also called the budget
     – is that portion of the approved total cost estimate planned to be spent
       on an activity during a given period
• Actual Cost (AC)
     – formerly called actual cost of work performed (ACWP)
     – is the total of direct and indirect costs incurred in accomplishing work on
       an activity during a given period
• Earned Value (EV)
     – formerly called the budgeted cost of work performed (BCWP)
     – is an estimate of the value of the physical work actually completed
     – is based on the original planned costs for the project or activity and the
       rate at which the team is completing work on the project or activity to
       date
• Rate of Performance (RP)
     – Is the ratio of actual work completed to the percentage of work planned
       to have been completed at any given time during the life of the project
       or activity
Week 3                CMGT/410 - Project Planning and Implementation             49
         Earned Value Formulas




Week 3      CMGT/410 - Project Planning and Implementation   50
         Rules of Thumb for Earned
              Value Numbers
• Negative numbers for cost and schedule
  variance indicate problems in those areas

• CPI or SPI that is less than 100% indicate
  problems



• Problems mean the project is costing more than
  planned (over budget) or taking longer than
  planned (behind schedule)

Week 3        CMGT/410 - Project Planning and Implementation   51
Week 3   CMGT/410 - Project Planning and Implementation   52
   The Five Perspectives of Quality
 • Transcendental view

 • User view

 • Manufacturing view

 • Product view

 • Value-based view


Week 3         CMGT/410 - Project Planning and Implementation   53
                    Transcendental
 • Quality can be recognized, not defined
         – An ideal to which we strive, never attaining it
         – Like Plato’s description of the ideal


 • Also called ethereal view




Week 3               CMGT/410 - Project Planning and Implementation   54
                    User View
 • Concrete view

 • Grounded in product characteristics that meet
   the user’s needs




Week 3       CMGT/410 - Project Planning and Implementation   55
                Manufacturing View
 • Focuses on product quality
         – During and after production


 • Leads to a QA almost independent of the
   product itself

 • ISO9001 and CMM two good examples




Week 3              CMGT/410 - Project Planning and Implementation   56
               Product View
 • Looks at the inside of the product

 • Assumes that by controlling internal product
   properties, better externals will result




Week 3       CMGT/410 - Project Planning and Implementation   57
                Value-Based View
 • If it costs more, it should have higher quality
         – Cadillac’s are worth more than VWs, and thus,
           should be of superior quality




Week 3              CMGT/410 - Project Planning and Implementation   58
         The Quality Life Cycle
 • The Cost of Quality

 • The Problems of Quality (improvement)

 • People

 • Process

 • Technology


Week 3       CMGT/410 - Project Planning and Implementation   59
               The Cost of Quality
 • “Invisible” costs
    – Downtime
    – Rework
    – Warranty charges

 • “Visible” costs
         – Failure costs
         – Appraisal costs
         – Prevention costs




Week 3            CMGT/410 - Project Planning and Implementation   60
            Reasons for Bad Quality
 • A lack of:
         – Understanding
         – Acceptance
         – Involvement
         – Support
         – Expectations
         – Recognition




Week 3           CMGT/410 - Project Planning and Implementation   61
                                 People
 • Need buy-in of all members of the organization

 • Establish specialist groups
         –   Quality improvement experts
         –   Process team
         –   Reengineering team
         –   Measurement team
         –   Estimating team




Week 3               CMGT/410 - Project Planning and Implementation   62
                       Process
 • Need methods to improve to reduce time-to-
   market

 • Need flexible development methodology

 • Need defined evolution methodology




Week 3       CMGT/410 - Project Planning and Implementation   63
                  Technology
 • Maintenance workbench with reengineering
   tools

 • Integrated development supporting the
   methodology

 • Change management system

 • Suite of measurement tools



Week 3       CMGT/410 - Project Planning and Implementation   64
             Quality Metrics
 • QA Reviews

 • Software Quality Metrics




Week 3       CMGT/410 - Project Planning and Implementation   65
         Performing Quality Reviews
 • Insures uniformity

 • Leads to metrics collection

 • Can lead to process improvements




Week 3        CMGT/410 - Project Planning and Implementation   66
   McCall’s Software Quality Factors (SQFs)
                                                Interoperability (can it be interfaced to
                                                another system?)
Maintainability (fix it?)                       Portability (to another machine?)
Flexibility (change it?)                        Reusability (can some of the SW be
Testability (test it?)                          reused?)
                       Product Product
                       Revision Transition


                            Product
                            Operations


              Correctness (does what we want?)
              Reliability (does it do it accurately?)
              Efficiency (does it not waste?)
              Integrity (is it secure?)
              Usability (is the user happy?)
     Week 3                 CMGT/410 - Project Planning and Implementation             67
         SQFs - Product Operations
 • Correctness
         – Extent to which requirements are met
 • Reliability
         – Extent to which software achieves required
           precision
 • Efficiency
         – Amount of resources needed to perform
 • Integrity
         – Extent to which access to software or data by
           unauthorized agents can be controlled
 • Usability
         – Effort to learn, operate, prepare input, interpret
           output of software
Week 3               CMGT/410 - Project Planning and Implementation   68
           SQFs - Product Revision
 • Maintainability
         – Effort required to locate and fix defects in an
           operational program


 • Flexibility
         – Effort to modify existing program


 • Testability
         – Effort to test software to determine if it satisfies
           requirements



Week 3               CMGT/410 - Project Planning and Implementation   69
          SQFs - Product Transition
 • Interoperability
         – Effort required to couple this system with another


 • Portability
         – Effort required to transfer software from one
           platform to another


 • Reusability
         – Extent to which software can be used by other
           applications



Week 3              CMGT/410 - Project Planning and Implementation   70
                                ISO9126
 • Standard for software quality

 • Defines six primary attributes:
         –   Functionality
         –   Reliability
         –   Usability
         –   Efficiency
         –   Maintainability
         –   Portability




Week 3                CMGT/410 - Project Planning and Implementation   71
                ISO9126 - Functionality
 • Existence of a set of functions and their
   specified properties
         –   Suitability
         –   Accuracy
         –   Interoperability
         –   Security




Week 3                 CMGT/410 - Project Planning and Implementation   72
                ISO9126 - Reliability
 • Capability of the software to maintain its
   performance level under stated conditions for
   a stated period of time
         – Maturity
         – Fault Tolerance
         – Recoverability




Week 3              CMGT/410 - Project Planning and Implementation   73
                 ISO9126 - Usability
 • Effort needed for use and on the individual
   assessment of such use by the customers
         – Understandability
         – Learnability
         – Operability




Week 3              CMGT/410 - Project Planning and Implementation   74
               ISO9126 - Efficiency
 • Relationship between the software’s
   performance and the amount of resources
   used under stated conditions
         – Time Behavior
         – Resource Behavior




Week 3             CMGT/410 - Project Planning and Implementation   75
              ISO9126 - Maintainability
 • Making modifications
         –   Analyzability
         –   Changeability
         –   Stability
         –   Testability




Week 3               CMGT/410 - Project Planning and Implementation   76
                  ISO9126 - Portability
 • Ability of software to be transferred from one
   place to another
         –   Adaptability
         –   Installability
         –   Conformance
         –   Replaceability




Week 3                CMGT/410 - Project Planning and Implementation   77
           Hewlett-Packard’s FLURPS
 • Functionality
         – Evaluates the feature set and capabilities of the program, the
           generality of the delivered functions and the security of the overall
           system
 • Localization
         – Will the system be in the local language
 • Usability
         – Considers human factors such as aesthetics, consistency,
           documentation
 • Reliability
         – Measures the frequency and severity of failure, accuracy of output
           results, MTBF, ability to recover from failure, and predictability of
           the program
 • Performance
         – Evaluates processing speed, response time, resource
           consumption, throughput, and efficiency
 • Supportability
         – Combines the ability to extend the program, adapt, and service it



Week 3                  CMGT/410 - Project Planning and Implementation             78
                    FLURPS Metrics
 • FLURPS occurs in each life cycle phase
         –   Specification
         –   Design
         –   Implementation
         –   Testing
         –   Support




Week 3               CMGT/410 - Project Planning and Implementation   79
               The Old Tools
 •   Pareto Charts
 •   Cause-and-Effect Diagrams
 •   Histograms
 •   Control Charts
 •   Scatter Diagrams
 •   Graphs
 •   Check sheets




Week 3        CMGT/410 - Project Planning and Implementation   80
                         Pareto Charts

                                                                                         100%
               N = 243                       79%
                                                                        96%
                       51%
    Defects
(normalized)




               123.5                 67.5                 44.0                 8.0
               Module 1            Module 2              Module 3             Module 4



    Week 3             CMGT/410 - Project Planning and Implementation                     81
                Ishikawa Template


Environment       People                          Process




  Measurement    Machines                         Materials


    Week 3       CMGT/410 - Project Planning and Implementation   82
                  Ishikawa Diagrams

Environment                  People                          Process

          frequent changes             inexperience                      hard to modify


               icons most trouble             new contractor                    hard coded

                                                                                        Unit 12
                                                                                        costs
           inaccurate timing                                                            50% of all
                                        test HW down
                                                                                        Effort LQ
                                                                        p’s finding parts
                 new time system               No spares
                                                                              few spares


Measurement                  Machines                        Materials



 Week 3                CMGT/410 - Project Planning and Implementation                         83
                         Histograms
         60

         50

D        40
e
f        30
e
c        20
t
s
         10

         0
              1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
                                Week Worked

Week 3              CMGT/410 - Project Planning and Implementation   84
                     Control Charts

   60

   50

   40
                                                                                           UCL
   30                                                                                     (μ+3σ)
                                                                                             CL
   20                                                                                        (μ)

                                                                                           LCL
   10
                                                                                          (μ-3σ)

    0
         1   2   3   4     5      6     7      8      9     10        11   12   13   14   15




Week 3               CMGT/410 - Project Planning and Implementation                            85
                  Scatter Diagrams
         30

         25
D
e
         20
f
e        15
c
t        10

R        5
a
t        0
e
              0   2          4           6          8          10      12   14   16
                         Module Size in Function Points

Week 3                CMGT/410 - Project Planning and Implementation             86
                                      Graphs
             30
         P   25
         e
         r
         c   20
         e
         n   15
         t
         a
             10
         g
         e
             5
         E
         r   0
         r
         o        2   3     4     5     6    7     8     9 10 11 12 13 14 15 16
         r
         s

Week 3                    CMGT/410 - Project Planning and Implementation          87
                  Checksheets
          Prog A                    Prog B                 Prog C   Sum




Defects




           5                        21                          1    27




Week 3         CMGT/410 - Project Planning and Implementation             88
               The New Tools
 •   Relations Diagram
 •   Affinity Chart
 •   Tree Diagram
 •   Matrix Diagram
 •   Matrix Data - Analysis Diagram
 •   PDPC Chart
 •   Arrow Diagram




Week 3         CMGT/410 - Project Planning and Implementation   89
                      Relations Diagram

      Network                           System                               Application


hardware   software                              Software
                                hard                                    reqs,specs    code



design     repair                              OS     DBMS
                               design                                                data
                                                                          design

                                               Comm
 install
                               repair                                   process      test




                                                                                     repair




  Week 3               CMGT/410 - Project Planning and Implementation                       90
                 Affinity Chart

                                                    Project
                                                    Selection
 Design

                                                                Data
                                                                Manip.
               Software
               Defects
                                                      Coding


Requirements
                                                                Logic
                  Data




 Week 3        CMGT/410 - Project Planning and Implementation           91
           Tree Diagram
          Management                                      Poor client
          rewards project                                 relationships
          completion only
                                                          No ConfMan


High                                                      High Staff
           Frequent
Defect                                                    Turnover
           requirements
Rates      Changes
                                                          Neophyte
                                                          Coders

                                                          No Reviews
             Very
             Buggy
             Code                                         No Recognition
                                                          for QA


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         Matrix Diagram




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         Matrix Data-Analysis Diagram




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  Program Decision Process Chart
                                        Improve
                                        System
                                        reliability



         Error-prone                     Invalid                         System
         program                         Data                            software
         changes                                                         crashes




         Inspect                        Bullet-proof                    Develop
         designs &                      the                             recovery
         code                           interfaces                      procedures




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             Arrow Diagram

                                  4


                                                          7
         2



   1                                                              9
                                   5


                                                              8
         3


                                      6


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    Process Factors Affecting Quality
•   Inexperienced staff                     • Low-level software
•   Irrational schedules                      languages
•   Inexperienced managers                  • Crowded offices
•   Unstable requirements                   • Poor organization
•   Unstructured methods                    • Generalists only
•   No inspections                          • Severe size constraint
•   Perfunctory testing                     • Severe performance goals
•   No metrics                              • Ordinary tools
•   Low design reuse                        • Unstable hardware
•   Low reuse                               • Marginal computers
                                            • Manual planning


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                Why Resist Quality?
 • Managers do not want to pay for it

 • Professionals assume they are creating a
   “perfect” product
         – To institute a QA function is insulting


 • Where should it sit in the org chart?

 • Extra non-productive “red tape”



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                    QA Pluses
 • Reduce software defects

 • Lower maintenance costs

 • Improve reputation

 • Higher reliability (save lawyer costs!)

 • Overall life cycle costs drops

 • People pride increases

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                  The QA Minuses
 • Requires upfront dollars (hard to justify)

 • Hard in small institutions

 • Represents a cultural change
         – Change is never easy




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Week 3   http://www.sei.cmu.edu/cmmi/adoption/pdf/cmmi-overview05.pdf
                        CMGT/410 - Project Planning and Implementation   101
http://www.cio.com.au/index.php?id=1303773243&fp=2&fpid=2
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          PMI’s Maturity Model
 • PMI released the Organizational Project Management
   Maturity Model (OPM3) in December 2003

 • Model is based on market research surveys sent to
   more than 30K project management professionals and
   incorporates 180 best practices and more than 2400
   capabilities, outcomes, and key performance indicators

 • Addresses standards for excellence in project,
   program, and portfolio management best practices and
   explains the capabilities necessary to achieve those
   best practices



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                       ISO Standards
• ISO9000 is a quality system standard that:
         – Is a three-part, continuous cycle of planning, controlling, and
           documenting quality in an organization
         – Provides minimum requirements needed for an organization to
           meet its quality certification standards
         – Helps organizations around the world reduce costs and
           improve customer satisfaction

• ISO15504, sometimes known as SPICE (Software
  Process Improvement and Capability Determination), is
  a framework for the assessment of software processes

• ISO14000



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               Questions




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               Next Workshop




          Project Human Resources and
         Project Procurement Management




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                        • Don’t hesitate to
                          call or email
                        • Have a great week!




Week 3   CMGT/410 - Project Planning and Implementation   107

								
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