Describe the software crisis and how the often dismal track record for information technology (IT) projects provides a motivation for changing how we view and manage IT projects.Explain the sociotechnical, project management and knowledge management approaches that support ITPM. Define what an IT project is and describe its attributes. Define the discipline called project management. Describe the role and impact IT projects have on an organization. Identify the different roles and interests of project stakeholders.
Chapter 16 ENGINEERING. Engineers can be involved in any aspect of project management and the project team. The primary role of the engineer is generally that of the team member responsible for the technical components of the product or service development. But frequently the project manager also comes from engineering.
This book is about how to model the behaviour of complex projects. It isn’t about how to manage projects—although you’ll be expected to know the basics of project management—and reading this won’t make you into a better project manager. This book is written for analysts and workers in project management who find themselves needing to model how a project behaves.
Project management is the discipline that relates all of those words that you thought of that apply to project.
This discipline cultivates the expertise to plan, monitor, track, and manage the people, the time, the budget,
and the quality of the work on projects.
Designing, documenting, and implementing a project management methodology
is a major undertaking. It is met with several obstacles, including:
• Cultural and organizational barriers to change;
• Replacing existing project management habits;
• Rugged individualism of technical professionals.
Introduction to the Process Improvement Life Cycle.
Designing, documenting, and implementing a project management methodology is a major undertaking. It is met with several obstacles, including:
• Cultural and organizational barriers to change; • Replacing existing project management habits; • Rugged individualism of technical professionals.
An organization will never reach the point where it is safe to say that all three of these obstacles have been neutralized. In fact, these obstacles will continuously plague projects for as long as there are projects to be plagued.
2. The computational inter-relationships between data types are complex: eg rainfall/soil type/location/species. A Generic model can evaluate a variety of separate investment projects for a variety of users.
In this chapter, risk is accounted for by (1) applying a discount rate commensurate with the riskiness of the cash flows, and (2), by using a certainty equivalent factor
In chapter 8, risk is accounted for by evaluating the project using sensitivity and breakeven analysis.
Each part opening page contains a part diagram
mapping the structure of the book, which allows
you to get a clear picture of how the book is set
out and how each part and chapter in the book
relates to each other.A list of Principles sets forth and defines
the fundamentals of what will be covered
in the chapter.
Today, many people believe that as long as a person has strong technical skills,
demonstrated a certain amount of aggressiveness and enthusiasm, and has worked on
several project teams, he or she could be given the role of project manager. However,
project managers can no longer depend on their positions or their own personal initiative
to accomplish a goal because most projects managed today are from a matrix
organization, in which project managers do not have complete authority over team
This was the period of significant technology advancement such as the first
automatic plain-paper copier by Xerox in 1959, and the rapid development of
computer technology. Bill Gates and Paul Allen founded Microsoft. This facilitated the
emergence of several project management software companies including Oracle in
1977. An example of a project undertaken during this phase is the Apollo project
initiated in 1960 with the objective of sending man to the moon.
The definition, identification, and measurement of cash flows relevant to project evaluation.A relevant cash flow is one which will change as a direct result of the decision about a project.A relevant cash flow is one which will change as a direct result of the decision about a project.
A project manager at a high tech company sensed a big problem.
There was no process in place to manage hundreds of technical issues
that had been identified within a newly developed computer
architecture…and products were now being developed based upon this
Chapter 1 introduces the concept of capital budgeting, and sets out the structure of the book.
The important points are:
Capital budgeting is the most significant financial activity of the firm.
Capital budgeting determines the core activities of the firm over a long term future.
Capital budgeting decisions must be made carefully and rationally.
The ideal investment decision making technique is Net Present Value.
N P V measures the equivalent present wealth contributed by the investment.
NPV is given in
NPV -- relates directly to the firm’s goal of wealth maximization
-- employs the time value of money
-- can be used in all types of investments
-- can be adjusted to incorporate risk.
Analyzing project risks by making mechanical trial and error changes to forecast values of selected variables.Analyzing the risks of investment projects, by changing the values of forecasted variables.
Finding the values of particular variables which give the project a Breakeven NPV of zero.
Money has a time value: a $ or £ or € today, is worth more than a $ or £ or € next year.
A risk free interest rate may represent the time value of money.
Inflation too can create a difference in money value over time. It is NOT the time value of money. It is a decline in monetary purchasing power.
Simulation allows the repeated solution of an evaluation model.
Each solution randomly selects values from predetermined probability distributions.
All solutions are summarized into an overall distribution of NPV values.
This distribution shows management how risky the project is.
While managers designed traditional methodologies in an effort to control projects, the technical community
gave birth to agile methodologies in response to their frustrations with traditional management (or lack thereof)
and the resulting impact on their products and morale. For example, the principles of XP are focused almost
entirely on the development process. While the technical community has championed these principles, very
little has been written about the management side of agile development projects.
The best project managers aren’t just organizers – they combine business vision, communication skills, soft
management skills and technical savvy with the ability to plan, coordinate, and execute. In essence, they
are not just managers – they are leaders. While this has always been the case, agile project management
places a higher premium on the leadership skills than ever before.
For example, XP teams create and monitor their own iteration plans in collaboration with the customers. The
customer creates stories (features) and prioritizes them based on business value.