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PROJECT MANAGEMENT FOR INFORMATION, TECHNOLOGY, BUSINESS AND CERTIFICATION

INSTRUCTOR GUIDE


Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur No part of this manual may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage or retrieval system, without the written permission of the publisher, except where permitted by law. Copyright 2005, KAPUR International, Inc. Center for Project Management® All rights reserved. Published by: Center for Project Management® One Annabel Lane, Suite 108 San Ramon, CA 94583 Phone: (925) 275-8000 Fax: (925) 275-8115 Email: project@center4pm.com web page: http://www.center4pm.com PRINTED IN THE UNITED STATES OF AMERICA Selected materials in this document are based on Center for Project Management’s publications Estimating MIS Projects, PERT, CPM®, and Gantt.

Instructor Guide 1.1 ©2005 Center for Project Management, All Rights Reserved

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Table of Contents

Table of Contents PREFACE.................................................................................. xxi Chapter 1

Introduction............................................................1

Chapter 1: Introduction.....................................................................................3 Objectives.....................................................................................................3 Overview......................................................................................................4 Details..........................................................................................................4 Why Project Management?.........................................................................4 What is a Project?......................................................................................4 Project vs. Operations................................................................................5 It’s not a “Three-Legged Stool”...................................................................5 When Does Work Turn into a Project?.........................................................5 What is Project Management?.....................................................................5 Project Management is not a Tool...............................................................5 The State of Project Management...............................................................5 Extreme Project Failures.............................................................................6 The Seven Deadly Sins of Project Management............................................6 Why Your Project Management Investment may Never Pay Off....................6 The Success Equation.................................................................................6 The Project Process Architecture (PPA)..................................................7 Idea Stage.............................................................................................7 Pre-Launch Stage...................................................................................7 Launch Stage.........................................................................................7 Execute Stage........................................................................................7 Implement Stage....................................................................................7 Operation Stage.....................................................................................7 Tailoring the PPA.................................................................................8 Mapping the PPA to PMBOK.....................................................................8 Mapping the PPA to CompTIA Project+....................................................8 Mapping the PPA to SEI’s CMMI...............................................................9 Product Development Methodology.............................................................9 Celebrating Project Success......................................................................10 It’s the Other Leg, Stupid.........................................................................10 Organizational Discipline and Individual Skills.............................................10 The Mocking Post.....................................................................................10 Summary.................................................................................................11 Questions and Discussion Points...............................................................11

Chapter 2

Fundamentals........................................................13

Chapter 2: Fundamentals................................................................................15 Objectives...................................................................................................15


Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur Overview....................................................................................................15 Details........................................................................................................15 Project Management Roles and Responsibilities..........................................15 Project Sponsor....................................................................................16 Project Manager...................................................................................16 Program Manager.................................................................................16 Stakeholders.........................................................................................16 Customers and End Users......................................................................16 Functional Managers.............................................................................16 Team Members.....................................................................................17 Subject Matter Experts (SMEs)...............................................................17 Vendors...............................................................................................17 Contractors and Consultants..................................................................17 Key Project Elements................................................................................17 Phase...................................................................................................17 Deliverable...........................................................................................17 Task.....................................................................................................18 Subtask................................................................................................18 Activity.................................................................................................18 Event...................................................................................................18 Milestone..............................................................................................18 Issue....................................................................................................18 Resource..............................................................................................18 Lag......................................................................................................18 Work Product.......................................................................................19 Work Package.......................................................................................19 Work Breakdown Structure.......................................................................19 Creating a WBS....................................................................................19 Phase-Level Decomposition...................................................................19 Deliverable-Level Decomposition............................................................19 Task-Level Decomposition.....................................................................20 Order of WBS Decomposition.................................................................20 Level of WBS Decomposition.................................................................20 WBS Exercise........................................................................................21 Task Network...........................................................................................21 Activity-on-Arrow (AOA) Network...........................................................21 Activity-on-Node (AON) Network............................................................21 Task Dependencies or Relationships.......................................................21 Finish-to-Start (FS)............................................................................21 Start-to-Start (SS).............................................................................22 Finish-to-Finish (FF)...........................................................................22 Start-to-Finish (SF)............................................................................22 Developing a Task Network...................................................................22 Critical Path Calculation............................................................................23 iv

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Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur Forward Path and Backward Path Computation.......................................23 Example............................................................................................24 Late Finish (LF).................................................................................25 Late Start (LS)...................................................................................25 Example............................................................................................25 Determining the Critical Path.................................................................26 Activity Float, Free Float, or Free Slack...............................................26 Path Float or Total Slack....................................................................26 Network Constraints..............................................................................27 Extra Resources....................................................................................28 Why Version 0 Network?.......................................................................28 Network Diagram Exercise.....................................................................28 Tree House: Suggested WBS and Task Network.........................................28 Summary.................................................................................................29 Questions and Discussion Points...............................................................29

Chapter 3

Idea Stage.............................................................31

Chapter 3: Idea Stage.....................................................................................33 Objectives...................................................................................................33 Overview....................................................................................................33 Details........................................................................................................33 The Wheel of Half-Baked Ideas.................................................................33 Idea Statement—PPA Step 1..................................................................34 Situation Analysis..................................................................................34 Purpose of the Project...........................................................................34 Focus on the Business Problem..............................................................34 Who Will Use It?...................................................................................34 Key Search Words.................................................................................34 Strategy Alignment...............................................................................34 Value-to-Business.................................................................................34 Critical Success Factors.........................................................................35 Customer’s Deadline.............................................................................35 Project Impact......................................................................................35 Consequences of Doing Nothing............................................................35 Security Requirements..........................................................................35 Window of Opportunity.........................................................................35 Project Request—PPA Step 2.................................................................35 Key Stakeholders..................................................................................36 Key Assumptions..................................................................................36 Organizational Change..........................................................................36 Spending Limit......................................................................................36 Funding Source.....................................................................................36 Ownership............................................................................................36 Project Duplication/Overlap...................................................................36 Instructor Guide 1.1 ©2005 Center for Project Management, All Rights Reserved

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Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur The Filtering Process................................................................................36 Stage Gate No. 1......................................................................................36 Summary.................................................................................................37 Questions and Discussion Points...............................................................37

Chapter 4 The Pre-Launch Stage............................................39 Chapter 4: Pre-Launch Stage...........................................................................41 Objectives...................................................................................................41 Overview....................................................................................................42 Details........................................................................................................42 The Pre-Launch Stage..............................................................................42 Responsibility.......................................................................................42 Project Description—PPA Step 3.............................................................42 The Nature of the Project......................................................................43 Project Objectives.................................................................................43 Validated Assumptions..........................................................................43 Conceptual Build...................................................................................43 Runaway Triggers.................................................................................43 Shutdown Conditions............................................................................43 Current System Retirement...................................................................44 Intra-Project Priority Analysis—PPA Step 4..............................................44 Definition of Quality..................................................................................44 Intra-Project Priorities—Example 1.........................................................44 Intra-Project Priorities—Example 2.........................................................44 Intra-Project Priorities—Example 3.........................................................44 Intra-Project Priorities—Example 4.........................................................45 A Change in Intra-Project Priorities............................................................45 Option 1...............................................................................................45 Option 2...............................................................................................45 Option 3...............................................................................................45 Worst Case Scenario.............................................................................46 Stakeholder Analysis—PPA Step 5..........................................................46 Stakeholder Assessment........................................................................46 Policy Level Stakeholders.......................................................................46 Implementation Level Stakeholders........................................................46 Examples.............................................................................................47 Complexity Assessment—PPA Step 6......................................................47 Project Complexity Assessment..............................................................47 Business Environment...........................................................................48 Technical Environment..........................................................................48 Complexity Zones.................................................................................48 Value-to-Business vs. Complexity..............................................................49 High Value and Low Complexity: Sure Bets.............................................49 High Complexity and High Value: Challenging.........................................49 vi

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Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur High Complexity and Low Value: Questionable........................................49 Low Complexity and Low Value: Sustaining............................................49 Tailoring the PPA...................................................................................49 Policies, Standards, and Procedures—PPA Step 7....................................49 Impact Assessment—PPA Step 8............................................................50 Data Quality.........................................................................................50 Volume................................................................................................51 Frequency............................................................................................51 Media Compatibility...............................................................................51 Security................................................................................................51 Timeliness............................................................................................51 Infrastructure.......................................................................................51 Cross-Project Dependencies..................................................................51 Constraints and Obstacles—PPA Step 9..................................................51 Audit and Control Requirements............................................................52 Budget.................................................................................................52 Technology Infrastructure.....................................................................53 Vendor Capability..................................................................................53 Vendor Capacity...................................................................................53 Stability Assessment—PPA Step 10.........................................................53 Issues Management—PPA Step 11.........................................................53 Risk Assessment—PPA Step 12...............................................................54 Ignore the Risk.....................................................................................54 Avoid the Risk.......................................................................................54 Transfer the Risk..................................................................................54 Accept the Risk.....................................................................................54 Risk Management Examples..................................................................54 Probability vs. Impact............................................................................54 Risk Management Plan..........................................................................55 Preliminary Scope Statement—PPA Step 13............................................55 Customer Expectations..........................................................................55 Scope Decision Drivers..........................................................................56 Developing the Preliminary Scope Statement..........................................56 Scope Chunking....................................................................................56 Technology Obsolescence—Moore’s Law................................................57 Project Size Estimate—PPA Step 14........................................................57 Range Values.......................................................................................58 Phase-Based Size Estimate....................................................................58 Creating a Size Estimate Using a Phase-Based Model..............................59 Create or Select a Phase-Based Model................................................59 Calibrate the Phase-Based Model........................................................59 Select and Estimate the Base Phase....................................................59 Extrapolate Effort Estimates for Various Phases...................................59 Compute the Estimated Work-Months for Each Phase..........................59 Instructor Guide 1.1 ©2005 Center for Project Management, All Rights Reserved

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Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur Compute Optimal Full-Time Equivalent Resource.................................59 Determine the Probable Full-Time Equivalent Resources......................60 Compute the Estimated Duration for Each Phase.................................60 Estimate Project Duration—WM..........................................................60 Estimate Sponsor, Management, and Customer Time...........................60 Estimate Project Manager’s Effort.......................................................60 Compute Estimated Cost....................................................................61 Level of Accuracy..............................................................................61 Deliverables-Based Size Estimate Model.....................................................61 Deliverables-Based Estimate—Example 1................................................62 Deliverables-Based Estimate—Example 2................................................62 Historical Deliverables Database............................................................62 Use of Deliverables-Based Size Estimates...............................................63 Level of Accuracy..................................................................................63 Rework and Scope Growth Reserves......................................................63 Need for Rework...............................................................................63 Scope Growth....................................................................................63 Management Reserve............................................................................63 Cost of Ownership (Life Cycle Costing)...................................................64 Fixed Price Quotes...................................................................................64 Project Priority.........................................................................................64 Uniform Criteria to Assess Project Priority...............................................65 Define Criteria Weight Points.................................................................65 Score Each Project................................................................................65 Prioritize Projects..................................................................................65 Special Recommendations........................................................................65 Build or Buy (Procurement)...................................................................66 Project Charter—PPA Step 15.................................................................66 Expiration Date..................................................................................66 Glossary............................................................................................66 Key Words........................................................................................67 Items that Should not be Included in a Project Charter...........................67 Project ID.........................................................................................67 Summary Project Schedule.................................................................67 Charter Assembly..................................................................................67 Charter Approval...................................................................................67 The Signing Ceremony..........................................................................67 The Moment of Truth............................................................................68 Pre-Launch Stage Benefits........................................................................68 Stage Gate No. 2......................................................................................68 Order of PPA Steps................................................................................69 Summary.................................................................................................69 Questions and Discussion Points...............................................................69

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Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur

Chapter 5

Launch Stage: Planning.........................................71

Chapter 5: Launch Stage—Planning.................................................................73 Objectives...................................................................................................73 Overview....................................................................................................74 Details........................................................................................................74 Launch Stage—An Overview.....................................................................74 Launch Stage Responsibility......................................................................74 Project Staging—PPA Step 16................................................................74 The Project Kickoff Meeting...................................................................75 Why the Staging Session?.....................................................................76 Helpful Tools and Tactics.......................................................................76 Experts to the Rescue...........................................................................76 Project Organization—PPA Step 17.........................................................77 Project Organization Models..................................................................77 Functional Organization.....................................................................77 Matrix Organization...........................................................................77 Project Organization..........................................................................78 Self-Managed Organization................................................................78 Task Force Organization.....................................................................79 Project Types and Project Organization..................................................79 The Center’s Project Organization Model................................................79 Project Sponsor.................................................................................79 Executive Steering.............................................................................80 Project Manager................................................................................80 Team................................................................................................80 Vendors/Consultants/Suppliers...........................................................80 End Users/Customers.........................................................................80 Project Politics...................................................................................80 Team Size............................................................................................80 Multiple Sponsors and Multiple Project Managers....................................81 Task Plan—PPA Step 18.........................................................................81 Task Plan Source..................................................................................81 Innovative Guess...............................................................................81 Memory and Experience.....................................................................82 Knowledge Base................................................................................82 Developing a Master Task List...............................................................82 Phases.................................................................................................83 Deliverables..........................................................................................83 Description........................................................................................84 Completion Criteria............................................................................84 Owner..............................................................................................84 Tasks...................................................................................................84 Milestones............................................................................................84 Issues..................................................................................................84 Instructor Guide 1.1 ©2005 Center for Project Management, All Rights Reserved

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Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur Task Network.......................................................................................84 Risk Management Tasks........................................................................85 Time Dependent Risk.........................................................................85 Floating Risk.....................................................................................85 Current System Retirement...................................................................86 Project Manager’s Responsibility............................................................86 Plans? We Don’t Need No Stinking Plans................................................86 Comprehensive Task Plan......................................................................87 Contingency Tasks.............................................................................87 Current System Retirement Tasks.......................................................87 Customer Training Tasks....................................................................87 Deployment Tasks.............................................................................87 Development Tasks...........................................................................87 Infrastructure Upgrade Tasks.............................................................87 Operations Tasks...............................................................................87 Organization Change Management Tasks............................................88 Project Closure Tasks.........................................................................88 Quality Management Tasks................................................................88 Team Education and Training Tasks...................................................88 Milestones.........................................................................................88 Sponsor Sign-Off..................................................................................88 Comprehensive Task Plan—Summary.....................................................89 Important Considerations......................................................................89 Prototyping Plan—PPA Step 19...............................................................89 Organization Change Management Plan—PPA Step 20.............................90 Psychology of Change...........................................................................90 Project Stress Analysis..........................................................................90 Time Away from Primary Responsibility...............................................91 Degree of Change.............................................................................91 Willingness to Absorb the Change.......................................................91 Ability to Absorb the Change..............................................................91 Timing of the Change........................................................................91 Project Stress Interpretations................................................................91 Develop Organization Change Management Plan.....................................91 Change Agent.......................................................................................92 Scope Management Plan—PPA Step 21...................................................92 Scope Growth.......................................................................................92 The Velcro Suit.....................................................................................93 Contractors and Consultants..................................................................93 Project Team........................................................................................93 Uninvolved Sponsor..............................................................................93 Scope Management Process..................................................................94 Scope Creep—An Example.....................................................................95 Team Member’s E-Mail.......................................................................95 x

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Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur Project Manager’s Response...............................................................95 Sponsor’s Response...........................................................................95 Team Member’s Response..................................................................96 Summary..........................................................................................96 Change Control Board...........................................................................96 Scope Growth—The Limit......................................................................96 Configuration Management....................................................................97 Project Change Management Plan..........................................................97 Staffing Plan—PPA Step 22....................................................................97 Management Team...............................................................................97 Sponsor................................................................................................97 Sponsor’s Roles and Responsibilities...................................................98 Appoint an Appropriately-Skilled Project Manager................................98 Approve Project Charter, Task Plan, Estimate, Budget, and Schedule....99 Champion the Project, Project Manager, and Project Team..................99 Commit Time and Political Capital to the Project..................................99 Conduct Formal Appraisals of the Project Manager’s Performance.........99 Empower the Project Manager with Appropriate Authority....................99 Encourage Intelligent Disobedience..................................................100 Ensure Sustained Buy-In at All Levels...............................................100 Ensure Timely Availability of Needed Resources.................................100 Follow up to Ensure that Promised Benefits are Realized....................100 Formally Manage Project Scope........................................................100 Keep Informed About Project Status.................................................100 Keep the Team Out of Political Minefields..........................................100 Provide Guidance and Direction for Key Business Strategies...............100 Provide Feedback on Performance vs. Expectations...........................100 Resolve Major Policy Issues..............................................................100 Shield Project Teams from Unrealistic Customer Demands.................101 Understand Project Complexity.........................................................101 Sponsor Self-Assessment.....................................................................101 The Forty Questions............................................................................101 Project Manager’s Supervisor...............................................................101 Functional Managers...........................................................................101 Project Manager..................................................................................102 Project Manager’s Roles and Responsibilities.....................................102 Soft Skills:.......................................................................................103 Negotiation.....................................................................................104 Positive Outlook...............................................................................105 The Business of the Business............................................................105 Skills Gap Assessment......................................................................105 Dumb Mistakes and Good Traits.......................................................106 How Many Projects Can a Project Manager Manage?..........................106 Team Leader......................................................................................106 Instructor Guide 1.1 ©2005 Center for Project Management, All Rights Reserved

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Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur Administrative Support........................................................................106 Team Members...................................................................................106 Team Selection................................................................................107 To Clone or Not to Clone..................................................................107 Team Recruitment...........................................................................107 Recruiting Interviews.......................................................................108 The Interview..................................................................................108 Sample Questions............................................................................109 Making the Selection........................................................................109 SMEs..................................................................................................109 The Already-Assembled Team: What Should You Do?...........................109 Teamwork..........................................................................................110 Forming..........................................................................................110 Storming.........................................................................................110 Norming..........................................................................................110 Performing......................................................................................110 Cross-Cultural Teams..........................................................................111 The Importance of Trust.....................................................................111 Recommended Team Behaviors...........................................................111 Resolving Conflicts.................................................................................111 Define the Conflict..............................................................................111 Assess the Conflict..............................................................................112 Brainstorm..........................................................................................112 Decision Time.....................................................................................112 Team Motivation....................................................................................112 Work..................................................................................................112 Responsibility......................................................................................113 Achievement.......................................................................................113 Recognition........................................................................................113 Advancement......................................................................................113 I Can’t Hear You, It’s Too Dark in Here................................................114 Focus..............................................................................................114 Open Your Mental Door....................................................................114 Patience..........................................................................................114 Don’t Step on Their Lines.................................................................114 Keep Your Eyes Open......................................................................114 Hold Your Horses.............................................................................114 Pencil to the Paper...........................................................................114 Healthy Competition............................................................................115 Trouble in Paradise.............................................................................115 A Safe Project Environment.................................................................116 Communications Plan—PPA Step 23.....................................................116 Recipient............................................................................................116 Mechanism.........................................................................................116 xii

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Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur Messages...........................................................................................116 Telephone Messages........................................................................117 Frequency..........................................................................................117 Project Notebook—PPA Step 24............................................................117 Characteristics of a Sound Project Plan....................................................118 Comprehensiveness............................................................................118 Uniqueness.........................................................................................118 Unambiguousness...............................................................................118 Authoritativeness................................................................................118 Keeping Current..................................................................................118 Summary...............................................................................................118 Questions and Discussion Points..............................................................119

Chapter 6

Launch Stage: Developing detailed Estimates....121

Chapter 6: Launch Stage—Detailed Estimates.................................................123 Objectives.................................................................................................123 Overview...................................................................................................124 Details......................................................................................................124 Detailed Estimates—PPA Step 25..........................................................124 Range Values......................................................................................125 Estimate Review Points.......................................................................125 Estimating Responsibility.....................................................................125 Computing Accurate Estimates: The Concept........................................125 Task Types.........................................................................................125 Effort Driven Task............................................................................126 Duration Driven Task.......................................................................126 Baseline Effort—Defined.........................................................................126 Creating a Baseline Effort Database.....................................................126 Effort Variance Factor (EVF)....................................................................126 Skill Factor (SF)..................................................................................126 Work Interruption Factor (WIF)...........................................................126 Losses Due to Multiproject Assignment (MPF).......................................127 The Project Productivity Influencing Factor (PPIF).................................127 EVF Computed....................................................................................128 Impact of Skill Level...............................................................................128 Profiling the Unknown Team...................................................................128 Computing Task Effort............................................................................128 Computing Task Duration.......................................................................128 Computing Project Duration....................................................................129 Sponsor Effort........................................................................................129 Management Effort.................................................................................129 Project Management Effort..................................................................129 Rework Reserve.....................................................................................130 Scope Growth Reserve............................................................................130 Instructor Guide 1.1 ©2005 Center for Project Management, All Rights Reserved

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Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur Accounting for Reserves......................................................................130 Time Losses Often Overlooked................................................................130 Cost Estimates.......................................................................................130 Task-Based Estimating........................................................................131 Compress the Critical Path......................................................................131 Task-Based Estimating Example—Lessons Learned...................................131 PERT Estimating Methods.......................................................................131 Words to Avoid......................................................................................132 Task-Based Estimating—A Summary........................................................132 Developing a Historical Baseline Effort Database......................................133 Steps to Reduce Estimates......................................................................133 Review Constraints and Obstacles........................................................133 Reduce Scope.....................................................................................133 Split/Overlap Tasks.............................................................................134 Validate Task Dependencies................................................................134 Aggressively Manage Lag.....................................................................134 Improve Team Skills............................................................................134 Use Overtime......................................................................................134 Add Team Members............................................................................134 Improve the Work Environment...........................................................134 Transfer Risk Responsibility.................................................................134 Project Charter Review and Budget Approval—PPA Step 26...................134 Stage Gate No. 3....................................................................................135 Order of PPA Steps..............................................................................135 Summary...............................................................................................135 Questions and Discussion Points..............................................................135

Chapter 7 Execute Stage: Schedule, Track, and Control the Project.................................................................................... 137 Chapter 7: Execute Stage..............................................................................139 Objectives.................................................................................................139 Overview...................................................................................................140 Details......................................................................................................140 The Execute Stage.................................................................................140 Project Management Software.................................................................141 Project Schedule—PPA Step 27............................................................141 Schedule the Work..............................................................................141 Define Cross-Project Dependencies...................................................141 Build Organization Calendar.............................................................141 Specify Team Member Information...................................................141 Specify Team Member Calendars......................................................142 Build a Task List..............................................................................142 Specify Task Assignments, Effort, and Duration.................................142 Specify Lags....................................................................................142 xiv Instructor Guide 1.1 ©2005 Center for Project Management, All Rights Reserved


Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur Specify Floating Risk Contingencies...................................................143 Specify Reserves..............................................................................143 Build Project Schedule......................................................................143 Must-Do Dates.................................................................................144 Validate the Schedule..........................................................................144 Business Cycles: Conflict Assessment...................................................144 Window of Opportunity Assessment.....................................................144 Schedule Compression........................................................................144 Crashing.........................................................................................144 Fast-Tracking..................................................................................144 Budget Compression...........................................................................145 Establish Baseline Schedule and Budget...............................................145 Baseline Version Control System..........................................................145 Task Gantt Chart.............................................................................145 Resource Gantt Chart.......................................................................146 List of Deliverables..............................................................................146 List of Deliverable Owners...................................................................146 List of Milestones................................................................................146 Scope Change Management.................................................................146 Project Scope Management: Summary.................................................146 Progress Review and Control—PPA Step 28...........................................147 Tracking Team Members’ Progress.......................................................147 Project Status.....................................................................................148 Project Vital Signs............................................................................148 Project Health Report..........................................................................152 Lines of Command and Frequency of Reporting....................................152 Look-Ahead Window...........................................................................153 Short-Term Forecast........................................................................153 Long-Term Forecast.........................................................................154 Earned Value Management System......................................................155 Earned Value Basics.........................................................................155 Cost Variance (CV)...........................................................................156 Schedule Variance (SV)....................................................................156 Cost Performance Index (CPI)..........................................................156 Schedule Performance Index (SPI)...................................................157 Project Cost Forecasting......................................................................157 Low-End Forecast............................................................................157 High-End Forecast...........................................................................157 Rate of the Remaining Work................................................................158 Project Schedule Forecasting...............................................................158 EV of a Partially Completed Task..........................................................158 EV—The Bottom Line..........................................................................158 Analytical Tools...................................................................................159 Fishbone Diagram............................................................................159 Instructor Guide 1.1 ©2005 Center for Project Management, All Rights Reserved

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Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur Affinity Diagram...............................................................................159 Nominal Group Technique (NGT)......................................................159 Matrix Display..................................................................................159 Reporting Project Progress..................................................................160 Team Members to Project Manager...................................................160 Project Manager to Functional Managers...........................................162 Project Manager to Her Manager......................................................162 Project Manager to Sponsor.............................................................163 Steering Committee Update..............................................................163 Project Status Reports.........................................................................163 Exception Reporting............................................................................163 Progress Review Principles...................................................................163 Dealing with Deadlines........................................................................164 Schedule Review..............................................................................164 Scope Review..................................................................................164 Budget Review................................................................................164 Quality Review................................................................................164 Worst Case Scenario...........................................................................165 Dealing with Troubled Projects................................................................165 Troubled Project Assessment..................................................................165 Analysis..............................................................................................165 Key Questions.................................................................................165 Vital Signs.......................................................................................165 Decision.............................................................................................166 Action................................................................................................166 Deploy Recovery Plan......................................................................166 Deploy Cancellation Plan..................................................................166 Words for the Wise Project Manager........................................................167 Stage Gate No. 4....................................................................................167 Summary...............................................................................................167 Questions and Discussion Points..............................................................167

Chapter 8

Implement Stage................................................169

Chapter 8: Implement Stage..........................................................................171 Objectives.................................................................................................171 Overview...................................................................................................171 Details......................................................................................................172 Project Implementation and Closure—PPA Step 29................................172 Prepare the Operations Group.............................................................172 Prepare the Customer.........................................................................172 Site Assessment..................................................................................173 Site Preparation..................................................................................173 Security Infrastructure.........................................................................173 Project Implementation Office..............................................................173 xvi Instructor Guide 1.1 ©2005 Center for Project Management, All Rights Reserved


Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur Implementation Plan Basics.................................................................174 Rolling Wave Implementation..............................................................174 Scope Verification...............................................................................174 Fine Tuning........................................................................................174 Customer Support...............................................................................175 The Celebration..................................................................................175 Process Assessment—PPA Step 30........................................................175 Ground Rules......................................................................................175 Benefits..............................................................................................175 Key Players.........................................................................................175 Support Players...................................................................................175 Agenda...............................................................................................176 Lessons Learned Database..................................................................176 Project Closure...................................................................................176

Chapter 9: Operation Stage....................................................179 Chapter 9: Operation Stage...........................................................................181 Objectives.................................................................................................181 Overview...................................................................................................181 Details......................................................................................................181 The Operation Stage..............................................................................181 Preparing for Project Operations..............................................................182 Operations Documentation......................................................................182 Value-to-Business Assessment—PPA Step 31.........................................182 Operations Metrics—PPA Step 32..........................................................182 Current System Retirement—PPA Step 33.............................................183 Summary...............................................................................................183 Questions and Discussion Points..............................................................183

Chapter 10: Project Portfolio Management............................185 Chapter 10: Project Portfolio Management......................................................187 Objective...................................................................................................187 Overview...................................................................................................187 Details......................................................................................................188 The Importance of the Project Portfolio...................................................188 Project Portfolio—The Concept................................................................188 Project Portfolio Structure.......................................................................188 Ideas Portfolio........................................................................................188 Pre-Launch (Charters) Portfolio............................................................189 Launch (Plans and Estimates) Portfolio.................................................189 Execute (Development) Portfolio..........................................................189 Implement (Deployment) Portfolio.......................................................190 Operations Portfolio............................................................................190 Instructor Guide 1.1 ©2005 Center for Project Management, All Rights Reserved

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Full file at http://testbank360.eu/solution-manual-project-management-forinformation-technology-business-and-certification-1st-edition-kapur Suspended Project Portfolio.................................................................190 Canceled Project Portfolio....................................................................190 Portfolio Views.......................................................................................190 Portfolio Alerts—Early Warning Signals....................................................191 Unaligned Project................................................................................191 Duplicate/Overlapping Project..............................................................191 Breach of Vital Signs...........................................................................191 Unsecured System..............................................................................191 High Defect Rate.................................................................................191 Supporting Project/System Nonperformance.........................................191 Strategy Fulfillment................................................................................191 Stage Gate Reviews................................................................................191 Appointing a Portfolio Manager...............................................................192 Portfolio Management Software—Three Strikes and You are Out...............192 Frequently Asked Questions—Project Portfolio Management......................192 Lessons Learned.....................................................................................192 Project Portfolio—Benefits.......................................................................192 Summary...............................................................................................193 Questions and Discussion Points..............................................................193

Appendix 1: Procurement Planning........................................195 Appendix 1: Procurement Planning.................................................................197 Objectives and Overview............................................................................197 Details......................................................................................................197 Procurement Process..............................................................................197 Procurement Planning.........................................................................197 Fixed Price Contract.........................................................................198 Cost Plus Fixed Fee Contract............................................................198 Time and Materials Contract.............................................................198 Unit Price Contract...........................................................................198 Modular Contract.............................................................................198 Solicitation Planning............................................................................198 RFI.................................................................................................198 RFQ................................................................................................198 RFP.................................................................................................198 Solicitation..........................................................................................198 Source (Contractor/Supplier) Selection.................................................200 Contract Negotiation and Approval.......................................................200 Contract Administration.......................................................................201 Contract Closeout................................................................................201 SLA.................................................................................................201 Performance is in the Mind of the Beholder..............................................202 Procurement Words of Wisdom...............................................................202

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Appendix 2: Financial Analysis...............................................203 Appendix 2: Financial Analysis.......................................................................205 Objectives and Overview............................................................................205 Details......................................................................................................206 Whose Project is it Anyway?....................................................................206 Principles and Practices of Financial Justification for Projects.....................206 NPV....................................................................................................206 IRR....................................................................................................207 ROI....................................................................................................207 Payback Period...................................................................................207 Intangible Benefits.................................................................................208 Garbage in and Garbage Out...................................................................208 Risk Exposure and Financial Analysis.......................................................208

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xix


Preface

PREFACE

This instructor’s guide provides a summary of the content of all the chapters and sections of the “Project Management for Information, Technology, Business and Certification”1 textbook. It highlights the key points of each section of the book and offers suggestions regarding instruction. A full index to the content of the textbook is included. All summaries are keyed to the pages in the textbook and to the appropriate, accompanying slides. You may find it beneficial to use this guide in conjunction with the chapter questions provided in the textbook and with the additional set of questions provided in the supplemental material.

Gopal K. Kapur: Project Management for Information, Technology, Business, and Certification. Upper Saddle River, NJ: Pearson Education, 2005 1


CHAPTER 1 INTRODUCTION


Chapter 1: Introduction Objectives In this chapter, students will learn about the following project management elements (Slides 1.1-1.2): 

Reasons for project management

Definition of a project

Project vs. operations

Roles of schedule, scope, budget, and quality

Definition of project management

Differences between a project and a process

The state of project management

Extreme project failures

The "seven deadly sins" of project management

Reasons why project management investments may never payoff

The success equation

Project management methodology

Project Process Architecture (PPA)

Stage gate reviews

Mapping PPA to PMBOK

Mapping PPA to CompTIA IT Project+

Understand SEI's Capability Maturity Model

Product development methodology

Celebrating project success

The mocking post


Chapter 1: Introduction

Overview The chapter starts with a discussion of why project management is necessary to transform ideas into products or processes in an effective and efficient manner. It compares and contrasts project work with day-to-day operations and outlines the key differences between the two. Next, the chapter deals with the important subject of extreme project failures, far too common in IT/Business projects, and the Seven Deadly Sins that lead to such failures. The content includes a detailed discussion of how the principles, practices, and tools for managing IT/Business projects are different from those needed to manage engineering (construction) projects. The chapter also introduces the Project Process Architecture (PPA), a project management methodology designed by the Center for Project Management (CPM or the Center) that retains the applicable principles and practices of classic engineering project management and adds the principles and practices needed to manage IT/Business projects successfully. The chapter maps the PPA to the Project Management Institute's (PMI's) Project Management Book of Knowledge (PMBOK), to CompTIA's IT Project+ certification, and to Software Engineering Institute's (SEI's) Capability Maturity Model Integration (CMMI). Finally, the need for professionalism and discipline throughout the organization is emphasized, along with the introduction of a mocking post for those who wish to sidestep the project management discipline put forth in this book.

Details Why Project Management? As evidenced by the quotes in this section, ideas and visions are worthless without the ability to transform them into reality. Project management is the discipline that facilitates that transformation.

Slides: 1.3 Pages: 2-3

What is a Project? A project is generally undertaken to solve a business problem or capitalize on a business opportunity. It represents an investment, must have appropriate ownership, and signals a change in the status quo. It is of specific duration. It has a plan, which includes an interrelated set of deliverables, tasks, and milestones to be completed by designated resources. Projects generally operate in changing environments and are disruptive, especially for the project’s customers.

Slides: 1.4 Pages: 3-4

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Chapter 1: Introduction Project vs. Operations A project represents change, while day-to-day operations involve repeatable processes with consistent, predefined outcomes.

Slides: 1.5 Pages: 4-5

It’s not a “Three-Legged Stool” Traditional project management approaches have defined the basic components of a project as schedule, scope, and budget. In the PPA, quality—because of its importance— is singled out as a fourth component.

Slides: 1.6 Pages: 5-6

When Does Work Turn into a Project? As an overall guide, work requiring more than 200 hours of effort should be managed as a project.

Slides: 1.7 Pages: 6

What is Project Management? Project management involves five key activities:

Slides: 1.8 Pages: 6-7

1. Defining 2. Planning 3. Estimating and scheduling 4. Directing and leading 5. Monitoring and controlling It also involves: 6. Communications 7. Closure Project Management is not a Tool Well-formulated, disciplined and forthright project management practices are the essential ingredient in project success. Project management software tools can facilitate success if these practices are in place. The use of project software tools, without sound practices, is a waste of time and money and not likely to lead to success.

Slides: 1.9 Pages: 7

The State of Project Management Studies show staggering numbers for the failure of IT projects in the public and private sectors. Not only have short-term losses occurred; long-term losses impacting strategy, market position, opportunities, credibility, and

Slides: 1.10 Pages: 7-8

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Chapter 1: Introduction human capital have also been observed. Extreme Project Failures Still another study details 10 US companies that lost millions, including two that filed for bankruptcy. A CPM study conducted through the 1990’s detailed 13 key reasons for the high rate of failure.

Slides: 1.11-1.12 Pages: 8-9

The Seven Deadly Sins of Project Management A more focused CPM study involving seven CIOs, 23 project managers, and 49 projects resulted in the list of “Seven Deadly Sins of Project Management,” released in the Gartner “Talking Technology Series.”

Slides: 1.13-1.21 Pages: 9-16

1. Mistaking half-baked ideas for projects 2. Dictated deadlines 3. Ineffective Sponsorship 4. Under-skilled project managers 5. Failing to monitor the vital signs 6. Failing to deploy a sound project management methodology 7. Not formulating a comprehensive project portfolio A “Sin Index” can be calculated by scoring an organization on the various “sins.” Organizations are rated from “Project Nirvana” to “Project Hell.” Why Your Project Management Investment may Never Pay Off. Investment in project management practices designed for classic, engineering projects may not lead to success in IT/business projects. This section details 31 attributes that differ significantly between engineering and IT/business projects.

Slides: 1.22.1.28 Pages: 17-31

The Success Equation Success = (Process + Skills + Techniques + Tools) X

Slides: 1.29 Pages: 31-33

Accountability X Discipline

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Chapter 1: Introduction The Project Process Architecture (PPA) The PPA is a robust, well-defined project management process. Affording an accelerated pace, without sacrificing key steps, it is in extensive use by CPM clients in a wide cross section of industries.

Slides: 1.30-1.36 Pages: 33-35

The PPA has six “stages” and 36 “steps” and was designed to be scalable to projects of all sizes, complexity, and importance.

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Chapter 1: Introduction Idea Stage Purpose: Assess ideas for integrity Output: Project request

Pre-Launch Stage Purpose: Analyze project request to determine whether it should be pursued, considering scope, risk, and expected cost. Output: A project charter for review and approval by the project sponsor.

Launch Stage Purpose: The development of a comprehensive plan and detailed estimates for the project. Output: Project plan, including detailed estimates.

Execute Stage Purpose: Schedule and perform the planned work, monitor progress, solve problems, and keep the project on track. Output: The completed product or process.

Implement Stage Purpose: To turn the product or process over to the customer, close out the project, and conduct a project management process assessment. Output: The completed project.

Operation Stage Purpose: To assess the value-to-business, operations metrics and, if applicable, current system retirement—after the project’s product or process is in full operation. Output: Value-to-business assessment and fine-tuning. Stage Gate Reviews: A “Stage Gate” review is held at the end of each PPA stage to make a go/no-go decision to proceed to the next stage. This review process serves to “progressively” elaborate project details.

Slides: 1.37-1.38 Pages: 35-37

Tailoring the PPA 8

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Chapter 1: Introduction A suggested approach for tailoring the PPA to project size and complexity (to be defined in Pre-Launch) is offered. Recommended steps for varying complexities are shown in the table on page 37. Mapping the PPA to PMBOK The “Project Management Body of Knowledge (PMBOK)” is a collection of project management material prepared by the Project Management Institute (PMI).” PMI is a nonprofit, international, professional project management organization. It offers professional certification in project management.

Slides: 1.39-1.41 Pages: 37-40

As its title implies, the PMBOK is a guide to “what” needs to be done in successful project management. The PPA includes the “what” in a step-by-step “how-to” framework. The table on page 39 shows how the nine knowledge areas and PMBOK component processes map to the PPA. The bottom line is that the PPA incorporates the vital areas of the PMBOK. CPM is an official PMI Global Registered Education Provider. Mapping the PPA to CompTIA Project+ The Computing Technology Industry Association (CompTIA) also offers an industry-wide certification in project management (IT Project+). CompTIA is the world’s largest developer of vendor-neutral, industry-defined IT exams and certifications.

Slides: 1.42 Pages: 40-41

The tables on pages 40-42 detail how the elements of the PPA™ relate to the domains and objectives of CompTIA Project+. Again, the bottom-line is that the PPA maps well to the CompTIA framework. CPM has received the CompTIA Approved Quality Curriculum (CAQC) certification, signifying that the curriculum prepares the student for IT Project+ certification. Mapping the PPA to SEI’s CMMI The Capability Maturity Model Integration (CMMI)was prepared by Carnegie-Mellon’s Software Engineering

Slides: 1.43 Pages: 41-44

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Chapter 1: Introduction Institute (SEI). It is designed to guide software developers on a path through five levels of process “maturity:” 1. Initial 2. Repeatable 3. Defined 4. Managed 5. Optimized Once again, the PPA dovetails very well with the CMMI approach. A repeatable project management process is necessary at all levels above level one, where processes are ad hoc and chaos may prevail. Product Development Methodology There is a critical distinction between project management methodologies and product (or process) development methodologies. It is important to recognize the difference and to keep the two separate.

Slides: 1.44 Pages: 44-45

Project management methodologies, such as the PPA, provide an overarching structure, containing the steps necessary to successfully manage the project. Product development methodologies (often called life cycles) define the specific tasks and milestones needed to develop the product. Subject to scaling and tailoring, the project management methodology will remain constant from project to project, while the development methodology will vary widely (e.g., software development, staging a large conference, introducing a new business process, etc.) The product/process development methodology comes into play in the PPA most strongly as detailed tasks to complete the project are planned and executed. This begins in the PPA launch stage. Celebrating Project Success Celebration of project successes, along the way and at the conclusion of a project, is an important form of recognition for all involved. Rewards and gestures of appreciation should come from project managers, sponsors, and customers.

Slides: 1.45 Pages: 45-46

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Chapter 1: Introduction

It’s the Other Leg, Stupid. The title of this section comes from a story about a surgeon amputating the wrong leg from a patient. It is used to address the question of the culture within an organization.

Slides: 1.46 Pages: 46-47

The argument is that the wrong amputation stemmed from a culture that was absorbed in its own beliefs and viewed the customer with a certain disdain. A series of questions are offered to help assess culture in an organization; they are particularly important to address at project staging. The questions probe deference to seniors, fear to say “no,” looking down on customers, devaluing process in favor of deadlines, unresolved issues, and the use of sound communication skills. Organizational Discipline and Individual Skills Organizational project management discipline is vital in project management success. Development of individual skills, alone, will not necessarily lead to project management success. The organization must fully support the project management approach and back up that support with actions to make it work.

Slides: 1.47 Pages: 48-49

In cases where organizational discipline is lacking, it is crucial that project managers, working with sponsors, advocate the instilling of such discipline. The Mocking Post The author suggests an apt punishment for sponsors and others who misbehave, called a “mocking post.” The offender is gently strapped to the post and others are allowed to mock and throw things (non injurious) at him/her!

Slides: 1.48 Pages: 49

Summary The learning objectives of the chapter are reviewed.

Slides: -Pages: 49-50

Questions and Discussion Points Questions and discussion points for the chapter are offered.

Slides: -Pages: 50

We suggest that you select a number of questions from the set, assign them to student groups, and ask the groups to discuss and respond to the questions. This will enhance Instructor Guide 1.1 ©2005 Center for Project Management, All Rights Reserved

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Chapter 1: Introduction group interaction and validate comprehension of the materials presented in the chapter.

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Chapter 1: Introduction

Chapter 2 Fundamentals

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Solution manual project management for information technology business and certification 1st edition