Project Management Fundamentals and Best Practices

Posted on Mar 18, 2025 in Business Administration and Innovation Management

Project Management Basics

(a) Projects & Activities in Project Management

  • Project: A temporary endeavor undertaken to create a unique product or service.
  • Activities: Planning, Scheduling, Execution, Monitoring, and Closure.
    (Trick: PSEMC – Plan, Schedule, Execute, Monitor, Close)

(b) ISO 12207 Life Cycle

ISO 12207 is a standard that defines software life-cycle processes:

  1. Primary – Acquisition, Supply, Development, Operation.
  2. Supporting – Documentation, Configuration, Quality, Verification.
  3. Organizational – Training, Infrastructure, Management.

(c) Cost-Benefit Analysis & Net Present Value (NPV)

  • CBA: Comparing costs and benefits before approving a project.
  • NPV: The present value of future earnings minus the investment cost.
    (Formula: NPV = Present Value of Benefits – Present Value of Costs)

(d) Project Planning Approach

  1. Define objectives.
  2. Identify tasks.
  3. Assign resources.
  4. Estimate time & cost.
  5. Create a timeline.
    (Trick: DIAET – Define, Identify, Assign, Estimate, Timeline)

Project Success & Estimation

(a) How to Decide on Creating a Project?

  1. Is there a Business Need?
  2. Is it Feasible?
  3. What are the Costs and Budget?
  4. Is the Technology available?
  5. Have you performed a Risk Analysis?
    (Trick: BFCTR – Business, Feasibility, Cost, Technology, Risk)

(b) Processes vs. Process Models

  • Process: Step-by-step execution (e.g., Software Development Process).
  • Process Model: A structured framework (e.g., Waterfall, Agile).

(c) How Does a Project Become Successful? & Problems with Estimation

✅ Success Factors: Clear requirements, good management, risk handling.
✅ Estimation Problems: Lack of data, scope change, uncertainty, over-optimism.

(d) Successful Estimation & Taxonomy of Estimation Methods

✅ Successful Estimation: Past data, expert judgment, proper planning.
✅ Taxonomy (Types of Estimation):

  • Algorithmic: COCOMO, FP Analysis.
  • Expert Judgment.
  • Empirical Methods.

Risk & Development Risks

(a) Forward & Backward Pass (PERT & CPM)

  • Forward Pass: Calculating the Earliest Start & Finish.
  • Backward Pass: Calculating the Latest Start & Finish to avoid delays.

(b) Importance of Risk Management

  1. Identify uncertainties.
  2. Reduce failures and losses.
  3. Improve decision-making.
    (Trick: IRF – Identify, Reduce, Fix)

(c) Boehm’s 10 Development Risks (Top 5)

  1. Personnel Shortfalls – Lack of skilled personnel.
  2. Unrealistic Schedules – Incorrect time estimates.
  3. Misunderstood Requirements – Not understanding client needs.
  4. Scope Creep – Project features keep increasing.
  5. Inadequate Testing – Poor testing.
    (Trick: PUMSI – Personnel, Unrealistic, Misunderstood, Scope, Inadequate)

Monitoring & Project Termination

(a) Purpose of Monitoring & Control

  1. Track progress.
  2. Detect issues early.
  3. Ensure quality.
  4. Control budget.

(b) Project Termination Review & Reasons

✅ Project Termination Types:

  1. Successful Completion.
  2. Failure or Budget Overrun.
  3. Obsolete Requirements.
    ✅ Termination Process: Review, Document Lessons, Release Resources.

(c) Contract & Checklist

✅ Contract: A legal agreement between two parties.
✅ Checklist: Scope, Cost, Timelines, Payment Terms, Penalties.

(d) Expectancy Theory (Vroom’s Motivation Theory)

  1. Expectancy – Effort → Performance.
  2. Instrumentality – Performance → Reward.
  3. Valence – Reward → Satisfaction.
    (Trick: EIV – Expectancy, Instrumentality, Valence)

Team & Leadership

(a) Teams & 5 Stages of Team Development

  1. Forming – Team meets.
  2. Storming – Conflicts arise.
  3. Norming – Team settles.
  4. Performing – Productive phase.
  5. Adjourning – Project ends.
    (Trick: FSNPA – Forming, Storming, Norming, Performing, Adjourning)

(b) Delphi Decision Making

Refining decisions through multiple rounds of expert feedback.

(c) Leadership Styles

✅ Autocratic: The boss’s decision is final.
✅ Democratic: Team contributes.
✅ Laissez-Faire: Minimum supervision.

(d) Project Closeout & Types of Closure

✅ Project Closeout: Finalizing all activities, project handover.
✅ Types of Closure:

  1. Normal Closure – Project completed successfully.
  2. Premature Closure – Project stopped midway.
  3. Perpetual Closure – Project never ends.
  4. Failed Closure – Project failed.

Quick Revision Summary

  1. Project: PSEMC (Plan, Schedule, Execute, Monitor, Close).
  2. ISO 12207: Primary, Supporting, Organizational Processes.
  3. CBA & NPV: Benefit vs. Cost + Present Value of Future Earnings.
  4. Planning Approach: DIAET (Define, Identify, Assign, Estimate, Timeline).
  5. Project Decision: BFCTR (Business, Feasibility, Cost, Technology, Risk).
  6. Risk Handling: IRF (Identify, Reduce, Fix).
  7. Boehm’s Risks: PUMSI (Personnel, Unrealistic, Misunderstood, Scope, Inadequate).
  8. Motivation: EIV (Expectancy, Instrumentality, Valence).
  9. Team Development: FSNPA (Forming, Storming, Norming, Performing, Adjourning).