Lecture 01A Introduction to Project Management by StuartSpruce


									             INFO3402 Management    of IT Projects and Systems

             Lecture 01A: Introduction to Project Management
                                  The PMI Body of Knowledge (PMBOK) and the Capability Maturity Model

1. By the end of this lecture you will be able             3. Unrealistic schedules
   to:                                                     4. Poor project requirements
•     Understand the importance of managing IT             4. Introduction Project Management
      projects effectively
•     Recognise factors that make IT project manage-       A project is “a temporary endeavour undertaken to
      ment difficult                                       create a unique product or service.” (PMBOK Guide
•     Understand what is expected of you in the unit of    2004). It has a clearly defined beginning and end.
      study INFO3402                                       A project absorbs resources in order to produce some
2. The NZ Police ‘INCIS’ project                           specific output. The task of the project manager is to
                                                           have the project completed on time and within bud-
(Integrated National Crime Information System)             get, whilst at the same time satisfying the quality of
In 1993 the initial estimate was $NZ30.1 million. The      work required.
system was to be developed in 3 phases. The annual         The project manager is bound by the so-called “Triple
cost of crime to the nation $4.8 Billion.                  Constraint”: scope, time, cost
In 1995 a new set of user requirements was drawn up.       5. Project Management Institute “Body of
The next year (1996) the specified operating system           Knowledge” (PMBOK)
was changed from OS/2 to NT, and the network pro-
tocol changed from token ring to Ethernet, TCP/IP.         5.1       Five “Process Groups”

By 1997 the project was already 12 months behind
schedule, and then the project manager resigned.
In 1998 the estimate was revised to $118 million (4
times original estimate). By march 1999 Phase 1 was
complete, but the estimate was now $126.7 million.
In August of 1999 the hardware supplier, IBM, pulled
out, citing requirements creep and lack of control.
In 2000 the plug pulled on the project at a cost of over
$100 million and with only Phase 1 completed.              Figure 1      Overlapping processes during a project
3. Failures in IT Projects                                 5.2       Nine “Knowledge Areas”
Standish Group's Chaos Report 1995 claimed “31                   •   Integration Management
percent of software projects will be cancelled before            •   Scope Management
they ever get completed”.                                        •   Time Management
http://www.standishgroup.com/visitor/ chaos.htm                  •   Cost Management
In 2004 the cost of project failure across the European          •   Quality Management
Union was €142 billion                                           •   Human Resources Management
                                                                 •   Communications Management
3.1      Characteristics IT projects                             •   Risk Management
•     Complex systems across several domains                     •   Procurement Management
•     Often never previously attempted                     6. The Capability Maturity Model (CMM)
•     Involve people with a variety of skills
•     Under time and budget pressure                       The Capability Maturity Model originated from docu-
•     Rapid rate of technological change                   ment written by Watts S. Humphrey in 1987. From
•     End-users often not easily identifiable              1959 to 1986 Humphrey had worked for IBM. In
                                                           1986 he founded a program in “Software Process” at
3.2      Reasons for IT Project Failure                    the Software Engineering Institute (SEI), Carnegie
Four most common reasons reported by Computing             Mellon University. The SEI is now federally funded
Technology Industry Association (CTIA) Survey of           and sponsored by the U.S. Department of Defense.
1,000 respondents, 2007:
                                                           The Capability Maturity Model is now used to assess
1. Poor communications                                     the capabilities of software development companies
2. Insufficient resource planning                          and other companies seeking government contracts.

Lecture 01A Introduction to Project Management                                                  G J Kennedy, 2009
                                   INFO3402 Management of IT Projects and Systems

There is no certification or accreditation as such, but     governmental organization that forms a bridge
CMM is an evolving and widely accepted framework            between the public and private sectors.
for both self-evaluation and buyer evaluation in the IT
                                                            8. The ISO 9000 Series
area. CMM documents are typically structured along
the lines of distinguishable process areas (PA), and        The ISO 9000 series is a set of five universal stan-
the subordinate best practices (BP).                        dards for a Quality Assurance System (9000 is for
                                                            standards relating to quality management).
The model ranks software development organizations
in a hierarchy of five levels, each with a progressively    ISO 9000: Quality Management and Quality Assur-
greater capability of producing quality software. Each      ance - Guidelines for use of the others in the series.
level is described as a “level of maturity”. A company      ISO 9001: Quality Systems - Model for Quality
only satisfying a few of the characteristics it is on       Assurance in Design/Development, Production,
level 1; a company displaying all characteristics has       Installation and Servicing - encompasses 9002 and
reached level 5. An estimated 75% of software devel-        9003. Geared towards external parties. Comprises 20
opment organizations exist at level 1, which can best       quality systems elements.
be described as ‘chaotic’ (1998). They also are
unlikely to achieve ISO accreditation.                      ISO 9002: Quality Systems - Model for Quality
                                                            Assurance in Production and Installation is used in
Level 1 - Initial                                           situations where the design of the product is fixed and
Processes are usually ad hoc and the organization usu-      there is a need for assurance of conformance to pro-
ally does not provide a stable environment.                 duction and installation specifications. Comprises
Level 2 - Repeatable                                        quality 18 elements. Three of these are less stringent
Software development successes are repeatable. The          than ISO 9001.
organization may use some basic project management          ISO 9003: Quality Systems - Model for Quality
to track cost and schedule.                                 Assurance in Final Inspection and Test is used where
Level 3 - Defined                                           assurance of conformance to specifications is
Processes are well characterized and understood, and        required only at the final inspection and testing phase.
are described in standards, procedures, tools, and          Comprises 12 quality system elements. Less stringent
methods.                                                    than either ISO 9001 or ISO 9002.
Level 4 - Managed                                           ISO 9004: Quality Management and Quality System
Using precise measurements, management can effec-           Elements - Guidelines assists companies in the imple-
tively control the software development effort.             mentation of quality systems. Geared towards internal
                                                            quality management practices and emphasizes func-
Level 5 - Optimizing                                        tional responsibilities, the importance of risk and ben-
Focuses on continually improving process perfor-            efit assessment, and customer satisfaction.
mance. Processes are concerned with addressing com-
mon causes of process variation and changing the            9. Claimed Benefits of ISO Registration
process to achieve the established quantitative pro-        •   improved teamwork
cess-improvement objectives.                                •   increased demand for products and services
A a firm which satisfies all Level 3 Process Areas          •   cost savings from higher quality products, and
under CMM-SM would have little if any difficulty in         •   time savings with customer audits.
obtaining ISO 9001 certification.                           ISO 9000 is recognised as a standard internationally
A recent survey of 89 different software applications       and is becoming a competitive strategy for organiza-
found no difference on average between the number           tions and a prerequisite for doing business, especially
of code defects in software from companies that iden-       for Government contracts.
tified themselves above Level 1 on the CMM levels,          Cost of ISO Registration depends on organization
and those that did not. It also found that on average       size, location and product scope. Registration fee is
Level 5 companies had higher defect rates than any-         typically in the range of $5,000-10,000 but invest-
one else!                                                   ment in staffing measures and internal modifications
7. International Standards Organisation                     necessary for quality assurance systems and processes
                                                            is usually greater than direct costs.
ISO (Organisation internationale de normalisation)
ISO was founded 23 February 1947, headquarters              P      Purchase your copy of the Course
Geneva, Switzerland. It is the world's largest devel-              Notes from University Copy Centre
oper and publisher of International Standards. It
                                                                   (about $30) for tutorials next
                                                                   Tuesday or Wednesday
boasts a network of the national standards institutes of
160 countries, one member per country. It is A non-

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