SOFTWARE PROJECT MANAGEMENT

UNIT – 3

SYLLABUS : Activity Planning and Risk Management : Objectives of Activity

planning – Project schedules – Activities – Sequencing and scheduling – Network
Planning models – Formulating Network Model – Forward Pass & Backward Pass
techniques – Critical path (CRM) method – Risk identification – Assessment –
Risk Planning – Risk Management – – PERT technique – Monte Carlo simulation –
Resource Allocation – Creation of critical paths – Cost schedules.
What is Software Project Planning?
• It is the process of defining the scope, objectives, resources, schedule, and activities of a software project in advance.
• The main goal is to successfully manage time, cost, quality, and risks during project execution.
Outline of Stepwise Project Planning Activities:
1. Identify Project Scope
1. Define goals, constraints, and boundaries of the project.
2. Identify Project Infrastructure
1. Determine team structure, tools, environment, and hardware/software requirements.
3. Analyze Project Characteristics
1. Size, complexity, criticality, user involvement, etc.
4. Identify Products and Activities
1. Break down deliverables and associated development activities.
5. Estimate Effort for Each Activity
1. Use estimation models like COCOMO or expert judgment.
6. Schedule Activities
1. Assign timelines using Gantt charts or network models (CPM/PERT).
7. Assign Resources
1. Allocate team members, budget, tools, etc.
8. Plan for Quality and Risk
1. Define risk management and quality assurance strategies.
9. Review and Finalize Plan
1. Validate with stakeholders and freeze the plan.
How Do We Identify Planning Objectives?
1.Understand Business Goals
1. Align with client needs and organizational mission.
2.Review Requirements
1. Analyze software requirement specification (SRS).
3.Consult Stakeholders
1. Gather inputs from clients, users, and team members.
4.Assess Constraints
1. Budget, time, resources, technology limitations.
5.Define Measurable Goals
1. Ensure objectives are specific, measurable, achievable, relevant, and time-bound
(SMART).
Different Types of Project Planning Involved in a Software Project
In software project management, planning is divided into several specialized areas to ensure that all
aspects of the project are well-managed.
1. Time Planning (Schedule Planning):
• Involves defining project activities, sequencing them, and estimating time for each.
• Tools: Gantt Chart, Network Diagrams (CPM/PERT).
2. Resource Planning:
• Focuses on identifying and allocating required resources (human, hardware, software).
• Ensures that team members are assigned tasks according to their skills and availability.
3. Cost Planning (Budget Planning):
• Estimates total cost of the project including development, testing, maintenance.
• Helps in controlling project expenses and avoiding overruns.
4. Quality Planning:
• Sets quality goals, standards, and strategies for achieving them.
• Includes methods for code review, testing, and compliance with standards.
5. Risk Management Planning:
• Identifies potential project risks and defines actions to avoid, mitigate, or manage them.
• Includes risk assessment and contingency planning.
6. Communication Planning:
• Determines how project information will be communicated among
stakeholders.
• Includes communication frequency, medium, and responsibility.
7. Procurement Planning:
• Deals with acquiring external products or services (hardware, software,
consultants).
• Includes vendor selection and contract planning.
8. Scope Planning:
• Defines the boundaries of the project—what will be done and what won’t.
• Helps in avoiding scope creep (uncontrolled changes).
Project Schedule
Definition:
A project schedule is a detailed plan that outlines when and in what sequence project tasks
will be performed.
It includes start and end dates, milestones, durations, and dependencies for each task.
• A well-defined project schedule ensures that the project is completed on time and within
scope.
Basic Objectives of Scheduling
Scheduling in software project management aims to plan the execution of tasks in a
systematic and timely manner. The main objectives include:
1. Ensure Timely Completion
• To complete the project within the specified deadline by organizing tasks efficiently.
2. Optimize Resource Utilization
• To make the best use of available resources (human, hardware, software) by avoiding
overloading or under-utilization.
3. Define Task Dependencies
• To identify and manage task relationships and dependencies (which tasks must come before
or after others).
4. Monitor Project Progress
• To track actual progress against planned activities and take corrective actions if
needed.
5. Improve Coordination
• To facilitate better communication and coordination among team members by
having a clear task sequence.
6. Identify Critical Activities
• To find critical paths where any delay can affect the entire project schedule.
7. Estimate Project Duration Accurately
• To provide realistic time estimates for planning and decision-making.
Steps in Building a Project Schedule
1. Define Activities
• Break down the project into specific tasks or activities (Work Breakdown Structure -
WBS).
2. Determine Activity Sequence
• Identify dependencies (which tasks must be done before others).
• Use tools like Network Diagrams.
3. Estimate Activity Duration
• Predict how long each task will take using expert judgment or historical data.
4. Develop the Schedule
• Use scheduling techniques like Critical Path Method (CPM) or PERT to sequence
tasks.
• Tools: Gantt Charts, Project Management Software.
5. Assign Resources
• Allocate team members, tools, and other resources to each activity.
6. Set Milestones
• Define key points to track progress (e.g., completion of major modules).
7. Optimize the Schedule
• Adjust for resource limitations, reduce bottlenecks, or apply fast-tracking or
crashing if needed.
8. Baseline the Schedule
• Finalize and approve the schedule; use it as a reference for monitoring
progress.
9. Monitor and Update
• Continuously track actual progress against the schedule and update it as
necessary.
Various Terms Used in Scheduling
Understanding key terms is essential for effective project scheduling. Below are the commonly
used terms:
1. Activity
• A specific task or set of tasks that consumes time and resources.
2. Milestone
• A significant event or checkpoint in the project schedule, often marking the completion of a
phase.
3. Duration
• The total time required to complete an activity, typically measured in days or weeks.
4. Start Time (EST/LST)
• Earliest Start Time (EST): Earliest time an activity can start.
• Latest Start Time (LST): Latest time an activity can start without delaying the project.
5. Finish Time (EFT/LFT)
• Earliest Finish Time (EFT): Earliest time an activity can finish.
• Latest Finish Time (LFT): Latest time an activity can finish without affecting the project
schedule.
6. Slack (Float)
• The amount of time an activity can be delayed without delaying the project.
• Slack = LST - EST or Slack = LFT - EFT
7. Dependency (Precedence Relationship)
• Indicates the sequence of tasks, i.e., which tasks depend on the completion of
others.
8. Critical Path
• The longest path through the network with zero slack, representing the
minimum project duration.
9. Lead Time
• The amount of time by which a task can start before its predecessor is
finished.
10. Lag Time
• The amount of waiting time between tasks where one task must wait after
another ends.
Activity Networks
Definition:
An Activity Network is a graphical representation of the sequence and
dependency of project activities. It is used to plan, schedule, and monitor
project progress.
Features:
• Shows interdependencies between tasks.
• Helps in identifying the critical path.
• Used in techniques like PERT and CPM.
Components:
• Nodes: Represent events or milestones.
• Arrows: Represent activities and the direction of execution.
• Paths: A sequence of activities from start to end
PERT (Program Evaluation and Review Technique)
Definition:
• PERT is a project scheduling technique that uses probabilistic time estimates to handle
uncertainty in project scheduling.
Steps in Drawing a PERT Chart
• A PERT chart (Program Evaluation and Review Technique) is a visual representation of a
project’s timeline and task dependencies. It is useful for planning, scheduling, and
coordinating tasks in a project.
1.Identify all project activities with clear start and end points.
2.Determine dependencies among activities to know the task sequence.
3.Estimate time for each activity using Optimistic (O), Most Likely (M), and Pessimistic (P)
values.
4.Calculate Expected Time (TE) using the formula: TE = (O + 4M + P) / 6.
5.Construct the PERT network diagram with nodes (milestones) and arrows (activities).
6.Perform forward pass to find Earliest Start Time (EST) and Earliest Finish Time (EFT).
7.Perform backward pass to find Latest Start Time (LST) and Latest Finish Time (LFT).
8.Identify the critical path (longest path with zero slack).
9.Update the PERT chart regularly as project progresses or changes occur.
Benefits of PERT:
1.Handles Uncertainty:
1. Uses optimistic, pessimistic, and most likely time estimates for more accurate planning.
2.Improves Planning & Scheduling:
1. Provides a clear visual roadmap of task dependencies.
3.Critical Path Identification:
1. Highlights the critical path to manage key tasks and reduce delays.
4.Better Resource Allocation:
1. Helps allocate time and resources more effectively.
5.Progress Monitoring:
1. Assists in tracking project progress and identifying bottlenecks early.
Limitations of PERT:
1.Complex for Large Projects:
1. Can become difficult to manage and update for large projects with many tasks.
2.Time Estimation is Subjective:
1. Relies heavily on expert judgment, which may not always be accurate.
3.Ignores Cost Factor:
1. Focuses only on time; does not consider cost or resource constraints directly.
4.No Feedback Loop:
1. PERT does not handle iterative development well.
Critical Path Method (CPM)
• Definition:
CPM is a project management technique used to plan, schedule, and control complex
projects. It identifies the longest sequence of dependent activities (called the critical path)
that determines the minimum time needed to complete the project. Any delay in activities
on the critical path directly delays the project completion.
Benefits of CPM
1.Identifies Critical Activities:
Helps find tasks that directly affect project duration.
2.Efficient Scheduling:
Assists in organizing tasks and allocating resources effectively.
3.Time Management:
Estimates the shortest possible project completion time.
4.Improves Monitoring and Control:
Provides a baseline to compare actual progress.
5.Resource Optimization:
Helps balance resources by adjusting non-critical tasks.
6.What-If Analysis:
Allows evaluation of impacts due to changes or delays.
Limitations of CPM
1.Fixed Activity Durations:
Assumes task durations are known and constant, not ideal for uncertain
projects.
2.Complexity for Large Projects:
Can become difficult to manage for projects with many activities.
3.Ignores Resource Constraints:
Focuses on time, not on resource availability or costs.
4.Does Not Handle Uncertainty Well:
Unlike PERT, it does not consider probabilistic time estimates.
5.Requires Accurate Activity Definition:
Effectiveness depends on precise identification of activities and dependencies.
Forward Pass Technique
• The forward pass is used to calculate the Earliest Start Time (EST) and Earliest Finish
Time (EFT) for each activity in a project network.
• It starts from the beginning of the project and moves forward through the network.
• Earliest Start Time (EST) of an activity = maximum of the earliest finish times of all its
predecessor activities.
• Earliest Finish Time (EFT) = Earliest Start Time (EST) + Activity Duration.
• Helps identify the earliest time each task can begin and end without delay.
Backward Pass Technique
• The backward pass is used to calculate the Latest Finish Time (LFT) and Latest Start
Time (LST) for each activity.
• It starts from the end of the project and moves backward through the network.
• Latest Finish Time (LFT) of an activity = minimum of the latest start times of all its
successor activities.
• Latest Start Time (LST) = Latest Finish Time (LFT) - Activity Duration.
• Helps determine the latest time an activity can start and finish without delaying the
project.
Risk Management Processes
Risk management involves systematically identifying, analyzing, and responding
to project risks to minimize their impact. The main processes are:
1.Risk Identification:
1. Detect and list all potential risks that could affect the project.
2.Risk Assessment:
1. Analyze the likelihood and impact of each identified risk.
3.Risk Prioritization:
1. Rank risks based on their severity and probability.
4.Risk Planning (Response Planning):
1. Develop strategies to avoid, mitigate, transfer, or accept risks.
5.Risk Monitoring and Control:
1. Continuously track risks, implement response plans, and adjust as needed.
Factors Affecting Risk Identification Procedures
1.Project Complexity:
1. More complex projects have higher risk and harder identification.
2.Experience of Team:
1. Skilled and experienced teams identify risks more accurately.
3.Available Information:
1. Adequate data and documentation help in thorough risk identification.
4.Stakeholder Involvement:
1. Active participation improves risk visibility and understanding.
5.Project Environment:
1. External factors like market conditions, technology, and regulations influence risks.
6.Communication:
1. Effective communication channels ensure early detection of risks.
Monte Carlo Simulation
• Definition:
Monte Carlo Simulation is a quantitative risk analysis technique that uses random
sampling and statistical modeling to estimate the possible outcomes of uncertain
variables in a project.
• How It Works:
It runs thousands of simulations by randomly varying project parameters (like task
durations or costs) based on their probability distributions to predict a range of
possible results.
• Purpose:
Helps project managers understand the probability of meeting deadlines, budgets,
or other project objectives under uncertainty.
• Advantages:
• Provides a detailed picture of risk and uncertainty.
• Supports better decision-making by showing likely scenarios.
• Can analyze complex projects with multiple interdependent variables.
• Limitations:
• Requires accurate probability distributions for inputs.
• Can be computationally intensive.
• Results depend heavily on quality of input data.
Resource Allocation in Project Management
• Definition:
Resource allocation is the process of assigning and managing available
resources (such as manpower, equipment, and materials) to various project
activities to ensure efficient completion.
• Purpose:
To optimize the use of limited resources while meeting project deadlines and
quality standards.
• Key Steps:
• Identify all resources needed for project tasks.
• Analyze resource availability and constraints.
• Assign resources to activities based on priority and dependency.
• Adjust allocations to resolve conflicts or resource overloading.
• Monitor and update resource usage throughout the project lifecycle.
• Importance:
Proper resource allocation prevents delays, reduces costs, and improves project
success chances by ensuring the right resources are available at the right time.
Steps to Create Critical Path
1.List All Activities:
Identify and list every activity required to complete the project.
2.Determine Dependencies:
Define which activities depend on others and their sequence.
3.Estimate Duration:
Assign time estimates to each activity.
4.Draw Network Diagram:
Represent activities and dependencies graphically, using nodes and arrows.
5.Calculate Earliest Start and Finish Times (Forward Pass):
Compute the earliest times each activity can start and finish.
6.Calculate Latest Start and Finish Times (Backward Pass):
Compute the latest times each activity can start and finish without delaying the
project.
7.Calculate Slack or Float for Each Activity:
Slack = Latest Start Time – Earliest Start Time (or Latest Finish – Earliest Finish).
8.Identify the Critical Path:
The path with zero slack and longest duration is the critical path.
Cost Schedule
• Definition:
A cost schedule is a detailed plan that integrates the project’s cost estimates with its
timeline, showing how costs will be incurred over the duration of the project.
• Purpose:
To monitor and control project expenses, ensuring that spending aligns with the
project schedule.
• Components:
• Cost Estimates: Estimated costs for each activity or phase.
• Time Frame: When the costs will be incurred during the project timeline.
• Budget Allocation: Distribution of funds across activities or time periods.
• Benefits:
• Helps in tracking cash flow and avoiding cost overruns.
• Facilitates financial planning and resource allocation.
• Enables comparison of planned vs. actual costs for better control.
• Implementation:
Cost schedules are often prepared using project management software and updated
regularly as the project progresses.
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