Sei sulla pagina 1di 40

Chapter Five

Project Quality Management

Chapter Contents

3.1. Importance of Project Quality Management


3.2. Definition of Quality
3.3. Project quality management processes
3.4. Quality Assurance
Chapter Objectives

At the end of this chapter, students will be able to:

Understand the importance of project quality management for


information technology products and services.
Define project quality management and understand how quality
relates to various aspects of information technology projects.
Describe quality planning and its relationship to project scope
management.
Discuss the importance of quality assurance.
List the three outputs of the quality control process.
Understand the tools and techniques for quality control, such as Pareto
analysis, statistical sampling, Six Sigma, quality control charts, and
testing.
Summarize the contributions of noteworthy quality experts to modern
quality management.
Discuss how software can assist in project quality management.
8.1. The Importance of Project Quality Management
Many people make funny story about the poor quality of IT products.
(to avoid failures of the project)

1
People seem to accept systems being down occasionally or needing to
reboot their PCs. (low performance or software during work) But
quality is very important in many IT projects.

8.2. What Is Quality?


The International Organization for Standardization (ISO) defines
quality as the degree to which a set of inherent characteristics fulfils
requirements (ISO9000:2000).
Other experts define quality based on:
o Conformance to requirements: The projects processes and
products meet written specifications.
o Fitness for use: A product can be used as it was intended.
8.3. What Is Project Quality Management?
Project quality management ensures that the project will satisfy the needs for
which it was undertaken.

8.4. Project Quality Management Processes


Quality planning: Identifying which quality standards are relevant to
the project and how to satisfy them.
Quality assurance: Periodically evaluating overall project performance
to ensure the project will satisfy the relevant quality standards.
Quality control: Monitoring specific project results to ensure that they
comply with the relevant quality standards.
8.4.1. Quality Planning
Implies the ability to anticipate situations and prepare actions to bring
about the desired outcome.
Defect Prevention

Important to prevent defects by:

2
Selecting proper materials.
Training and instructing people in quality.
Planning a process that ensures the appropriate outcome.
Design of Experiments

Quality planning technique

Design of experiments is a quality planning technique that helps


identify which variables have the most influence on the overall
outcome of a process. Also applies to project management issues,
such as cost and schedule trade-offs. Involves documenting important
factors that directly contribute to meeting customer requirements.
Scope Aspects of IT Projects

Functionality is the degree to which a system performs its intended


function.
Features are the systems special characteristics that appeal to users.
Systemoutputs are the screens and reports the system generates.
Performance addresses how well a product or service performs the
customers intended use.
Reliability is the ability of a product or service to perform as expected
under normal conditions.
Maintainability addresses the ease of performing maintenance on a
product.
Whos Responsible for the Quality of Projects?

Project managers are ultimately responsible for quality management


on their projects.

3
Several organizations and references can help project managers and
their teams understand quality.
8.4.2. Quality Assurance
Quality assurance includes all the activities related to satisfying the
relevant quality standards for a project.
Another goal of quality assurance is continuous quality improvement.
Benchmarking generates ideas for quality improvements by
comparing specific project practices or product characteristics to those
of other projects or products within or outside the performing
organization.
A quality audit is a structured review of specific quality management
activities that help identify lessons learned that could improve
performance on current or future projects.
Table 8-1. Table of Contents for a Quality Assurance Plan

4.0 Quality Assurance Procedures


1.0 Draft Quality Assurance Plan
4.1 Walkthrough Procedure
1.1 Introduction
4.2 Review Process
1.2 Purpose
4.2.1 Review Procedures
1.3 Policy Statement
4.3 Audit Process
1.4 Scope
4.3.1 Audit Procedures
2.0 Management
4.4 Evaluation Process
2.1 Organizational Structure
4.5 Process Improvement
2.2 Roles and Responsibilities
5.0 Problem Reporting Procedures
2.2.1 Technical Monitor/Senior
5.1 Noncompliance Reporting
Management
Procedures
8.4.3.2.2.2
Quality Control
Task Leader
6.0 Quality Assurance Metrics
The main outputs of quality control are:
2.2.3 Quality Assurance Team
Appendix
Technical
2.2.4 Acceptance
Staff decisions Quality Assurance Checklist Forms
3.0 Required Documentation
4
Rework
Process adjustments
Some tools and techniques include:

Pareto analysis
Statistical sampling
Six Sigma
Quality control charts
i. Pareto Analysis
Pareto analysis involves identifying the vital few contributors that
account for the most quality problems in a system.
Also called the 80-20 rule, meaning that 80 percent of problems are
often due to 20 percent of the causes.
Pareto diagrams are histograms, or column charts representing a
frequency distribution, that help identify and prioritize problem areas.
Figure 8-1. Sample Pareto Diagram

ii. Statistical Sampling and Standard Deviation


Statistical sampling involves choosing part of a population of interest
for inspection.
The size of a sample depends on how representative you want the
sample to be.

5
Sample size formula: Sample size = .25 X (certainty factor/acceptable
error)2

iii. Six Sigma


Six Sigma is a comprehensive and flexible system for achieving,
sustaining, and maximizing business success.
Six Sigma is uniquely driven by close understanding of customer
needs, disciplined use of facts, data, and statistical analysis, and
diligent attention to managing, improving, and reinventing business
processes.
Basic Information on Six Sigma

The principles can apply to a wide variety of processes.


Six Sigma projects normally follow a five-phase improvement process
called DMAIC.

DMAIC

DMAIC is a systematic, closed-loop process for continued


improvement that is scientific and fact based.
DMAIC stands for:
o Define: Define the problem/opportunity, process, and customer
requirements.
o Measure: Define measures, then collect, compile, and display
data.
o Analyze: Scrutinize process details to find improvement
opportunities.
o Improve: Generate solutions and ideas for improving the
problem.

6
o Control: Track and verify the stability of the improvements and
the predictability of the solution.
How is Six Sigma Quality Control Unique?

It requires an organization-wide commitment.


Training follows the Belt system.
Six Sigma organizations have the ability and willingness to adopt
contrary objectives, such as reducing errors and getting things done
faster.
It is an operating philosophy that is customer focused and strives to
drive out waste, raise levels of quality, and improve financial
performance at breakthrough levels.
Six Sigma Projects Use Project Management

The training for Six Sigma includes many project management


concepts, tools, and techniques.
For example, Six Sigma projects often use business cases, project
charters, schedules, budgets, and so on.
Six Sigma projects are done in teams; the project manager is often
called the team leader, and the sponsor is called the champion.
iv. Quality Control Charts and the Seven Run Rule
A control chart is a graphic display of data that illustrates the results
of a process over time.
It helps prevent defects and allows you to determine whether a
process is in control or out of control.
The seven run rule states that if seven data points in a row are all
below the mean, above the mean, or are all increasing or decreasing,
then the process needs to be examined for non-random problems.
A defect is any instance where the product or service fails to meet
customer requirements.
The main use of control charts is to prevent defects, rather than to
detect or reject them.

7
Quality control charts allow you to determine whether a process is in
control or out of control.
o When a process is in control, any variations in the results of the
process are created by random events; processes that are in
control do not need to be adjusted.
o When a process is out of control, variations in the results of the
process are caused by non-random events; you need to identify
the causes of those non-random events and adjust the process to
correct or eliminate them.
The seven run rule states that if seven data points in a row are all
below the mean, above the mean, or are all increasing or decreasing,
then the process needs to be examined for non-random problems.
Control Chart Testing

Many IT professionals think of testing as a stage that comes near the


end of IT product development.
Testing should be done during almost every phase of the IT product
development life cycle.

Figure 8-2. Testing Tasks in the Software Development Life Cycle

8
Types of Tests

Unit testing tests each individual component (often a program) to


ensure it is as defect-free as possible.
Integration testing occurs between unit and system testing to test
functionally grouped components.
System testing tests the entire system as one entity.
User acceptance testing is an independent test performed by end
users prior to accepting the delivered system
Figure 8-3. Gantt Chart for Building Testing into a Systems Development
Project Plan

9
Modern Quality Management

Requires customer satisfaction.


Prefers prevention to inspection.
Recognizes management responsibility for quality.
Malcolm Baldrige Award

The Malcolm Baldrige National Quality Award originated in 1987


to recognize companies that have achieved a level of world-class
competition through quality management. Given by the President of
the United States to U.S. businesses.
ISO Standards
o ISO 9000 is a quality system standard that:
o Is a three-part, continuous cycle of planning, controlling, and
documenting quality in an organization.
o Provides minimum requirements needed for an organization to
meet its quality certification standards.
10
o Helps organizations around the world reduce costs and improve
customer satisfaction.
ISO 15504, sometimes known as SPICE (Software Process
Improvement and Capability Extermination), is a framework for the
assessment of software processes.
Improving Information Technology Project Quality

Several suggestions for improving quality for IT projects include:

Establish leadership that promotes quality.


Understand the cost of quality.
Focus on organizational influences and workplace factors that affect
quality.
Follow maturity models.
Leadership
The Cost of Quality

o The cost of quality is the cost of conformance plus the cost of


nonconformance.
o Conformance means delivering products that meet requirements and
fitness for use.
o Cost of nonconformance means taking responsibility for failures or
not meeting quality expectations.
Five Cost Categories Related to Quality

o Prevention cost: Cost of planning and executing a project so it is


error-free or within an acceptable error range.
o Appraisal cost: Cost of evaluating processes and their outputs to
ensure quality.
o Internal failure cost: Cost incurred to correct an identified defect
before the customer receives the product.
o External failure cost: Cost that relates to all errors not detected and
corrected before delivery to the customer.
11
o Measurement and test equipment costs: Capital cost of equipment
used to perform prevention and appraisal activities

Chapter Six
Project Human Resource Management

Chapter Contents
3.1. What is human project management
3.2. Organizational planning
3.3. Staff acquisition
3.4. Resource leveling

Chapter Objectives
At the end of this chapter, students will be able to:
Explain the importance of good human resource management on
projects, especially on information technology projects.
Define project human resource management and understand its
processes.
Discuss human resource planning and be able to create a project
organizational chart, responsibility assignment matrix, and resource
histogram.
Understand important issues involved in project staff acquisition and
explain the concepts of resource assignments, resource loading, and
resource leveling.
Assist in team development with training, team-building activities,
and reward systems.
Explain and apply several tools and techniques to help manage a
project team and summarize general advice on managing teams.
Describe how project management software can assist in project
human resource management.

12
10.1. What is project Human Resource Management?
Making the most effective use of the people involved with a project.
Processes include:
o Human resource planning : Identifying and documenting
project roles, responsibilities, and reporting relationships.
o Acquiring the project team : Getting the needed personnel
assigned to and working on the project.
o Developing the project team : Building individual and group
skills to enhance project performance.
o Managing the project team : Tracking team member
performance, motivating team members, providing timely
feedback, resolving issues and conflicts, and coordinating
changes to help enhance project performance.
10.1.1. Organizational Planning
Involves identifying and documenting project roles, responsibilities,

and reporting relationships.


Outputs include:
o Project organizational charts
o Staffing management plans
o Responsibility assignment matrixes
o Resource histograms
Sample Organizational chart for a large IT project

13
Staff management plan

Responsibility Assignment Matrixes

A responsibility assignment matrix (RAM) is a matrix that maps the


work of the project, as described in the WBS, to the people
responsible for performing the work, as described in the OBS.
Can be created in different ways to meet unique project needs.

14
R Responsibility, A Accountability, C Consultation, I - informed

Staffing Management Plans and Resource Histograms

A staffing management plan describes when and how people will be


added to and taken off the project team.
A resource histogram is a column chart that shows the number of
resources assigned to a project over time.

15
10.1.2. Acquiring the Project Team
Acquiring qualified people for teams is crucial.

Staffing plans and good hiring procedures are important, as are


incentives for recruiting and retention.
Some companies give their employees one dollar for
o Every hour that a new person who they helped hires works.

o Some organizations allow people to work from home as an

incentive.

Why People Leave Their Jobs


They feel they do not make a difference.

They do not get proper recognition.


They are not learning anything new or growing as a person.
They do not like their coworkers.
They want to earn more money.

Resource Loading
Resource loading refers to the amount of individual resources an

existing schedule requires during specific time periods.

16
Helps project managers develop a general understanding of the
demands a project will make on the organizations resources and
individual peoples schedules.
Overallocation means more resources than are available are assigned
to perform work at a given time.

Resource Leveling
Resource leveling is a technique for resolving resource conflicts by

delaying tasks.
The main purpose of resource leveling is to create a smoother
distribution of resource use and reduce over allocation.

Benefits of Resource Leveling


When resources are used on a more constant basis, they require less

management.
It may enable project managers to use a just-in-time inventory type of
policy for using subcontractors or other expensive resources.
It results in fewer problems for project personnel and the accounting
department.
It often improves morale.
10.1.3. Developing the Project Team
The main goal of team development is to help people work together

more effectively to improve project performance.


It takes teamwork to successfully complete most projects.

Tuckman Model of Team Development


Forming

Storming
Norming
Performing
17
Adjourning

Training
Training can help people understand themselves and each other, and

understand how to work better in teams.


Team building activities include:
o Physical challenges

o Psychological preference indicator tools

Reward and Recognition Systems


Team-based reward and recognition systems can promote teamwork.

Focus on rewarding teams for achieving specific goals.


Allow time for team members to mentor and help each other to meet
project goals and develop human resources.

10.1.4. Managing the Project Team


Project managers must lead their teams in performing various project

activities.
After assessing team performance and related information, the project
manager must decide:
If changes should be requested to the project.
If corrective or preventive actions should be recommended.
If updates are needed to the project management plan or
organizational process assets.

Tools and Techniques for Managing Project Teams


Observation and conversation

Project performance appraisals


Conflict management
Issue logs

General Advice on Teams


18
Be patient and kind with your team.
Fix the problem instead of blaming people.
Establish regular, effective meetings.
Allow time for teams to go through the basic team-building stages.
Limit the size of work teams to three to seven members.
Plan some social activities to help project team members and other
stakeholders get to know each other better.
Stress team identity.
Nurture team members and encourage them to help each other.
Take additional actions to work with virtual team members.

Using Software to Assist in Human Resource Management


Software can help produce RAMS and resource histograms.

By using project management software for human resource


management, you can:
o Assign resources.

o Identify potential resource shortages or underutilization.

o Level resources.

Chapter Seven
Project Communication Management

Chapter Contents
Goal of project communication management
Project communication process
Communicationsplanning

Chapter Objectives
At the end of this chapter, students will be able to:
Understand the importance of project communication management
Describe project communication management processes

19
Understand the tools and techniques for project communication
management.
Define communication planning considerations.

1. Goal of Project Communication Management


Is to ensure timely and appropriate generation, connection,
dissemination, storage and disposition of project management.
Clear and accurate communication is critical for the success of a
development project.
Communication becomes crucial when the number of project
participants increases.

Challenges of communication in the project


In addition to the manager-team dynamics, project manager must
challenge with communication on three other levels:
i. The assignment
o The executive (or committee) that first assigned the project to
you may not agree with your idea of what the project should
achieve; or he may change his mind about the outcome without
letting you know.
ii. Other departments
o The managers of other departments have their own priorities
and may resist your schedule. This usually applies in two
situations: when members of their department are on your team
or when you depend on that department to supply certain
information.

iii. Outside resources

20
o Your project may depend on help or information from outside
resourcescompanies or individuals not part of the
organization. These include other divisions, subsidiaries, or
offices; a vendor or separate corporation; or a consultant.

2. Project Communication Management Processes


2.1. Communication Planning
What type of information is necessary when, for whom, how deliver
it.
Description of information
How distribute information, to whom, how we distribute it and what
type of information.
The output is stakeholder communication analysis.

Example: sample Stakeholder Communication Analysis


Stakeholders Doc name Doc Format Contact Date
person
Customer Status report Hard copy Mr. X End of month
management
Technical Monthly status e-mail Mr. Y End of month
customer staff report

Information Communication Documents


Your budget and schedule are your best communication tools.
They are useful in communicating with both your team members and
outside resources.

The budget

The budget defines the companys financial commitment, and is used


to ensure that project expenses are kept in line.

21
When you propose a project, you should communicate in terms of risk
and likely reward.
Approval will be granted as long as you can convince management
that there is a good chance that future profits will recapture this
investment within a reasonable period of time.

The schedule
The schedule defines the project, and, as long as you share it with
management, it is a useful tool for ensuring that your definition
conforms to theirs.
You also need to use the schedule during the later phases of your
project in conjunction with review meetings to ensure (1) that you are
on the right course and (2) that managements desired outcome has
not changed.
The schedule improves communication with your team, and helps
avoid delays. By identifying weak links and by communicating with
other department managers and outside resources, you will avoid
unexpected problems.

2.2. Information distribution


Involves making needed the information available to project
stakeholders in a timely manner.
Important consideration for information distribution
Using technology to enhance information distribution
Formal and informal methods for distribution of information
Determining the complexity of communications
Number of communication channels = n(n-1)/2, where, n is the
number of people involved in the communication.
Information Distribution Aids
22
The agenda: The agenda itself can be a powerful communication
tool, if correctly designed. For example, a team member is facing a
department deadline that interferes with a project deadline. You could
list this agenda item as Scheduling Conflicts, a passive approach.
But it would be better to describe it as Resolution to Upcoming
Conflict in Schedule, thus emphasizing a solution to the problem,
rather than merely raising the topic and talking about it.
Simplified flowchart: Many people have problems understanding
something as complex as a network diagram. They can relate better to
a top-to-bottom flowchart that isolates a period of time and a limited
number of tasks or phases.
Gantt chart: To explain a scheduling problem and make it extremely
visual, the Gantt chartalthough not so useful for your project
control effortcan be used in project meetings, if only to
communicate the problem youre facing.
Network diagram: For team meetings, the network diagram is the
most effective communication tool. If you expect a problem in the
near future, both the explanation and the likely solution will be made
easier with the use of the network diagram.

2.3. Performance Reporting


It keeps stakeholders informed about how resources are being used to
achieve objectives.
The inputs for performance reporting is project plan and work result.
The outputs are status report (current process status), progress reports
(past reports), project forecasting (future forecast).
It might appear that a successful project is one that is completed on
time, and within budget. In fact, though, these surface achievements

23
are most likely to be realized when the people on your team have a
sense of satisfaction from their efforts.
In some cases, the real problems leading to budget and schedule
failures are not merely mechanical or chance events but other
problems your team is encountering. So that performance should
reported to an appropriate bodies.

Reporting levels
Report to the Team
o Your report to the team is a form of performance review. Since
you expect the individuals to work together under your
leadership, it also makes sense to make your report to the entire
group, and at one time. The review process itself may be
ongoing, but the report is made during periodic team meetings.
Report to Management
o Your report to management is likely to be more formal but less
detailed.
o Here your concern is not with the details of execution but with
whether the project will be completed on time and within
budget.
o Any problems meeting those requirements should be discussed
in the management progress report.

2.4. Administrative Closure


Which involves generating, gathering, disseminating,
information to formalize phase or completion?

24
Every project uncovers new problems, unforeseen events, and
unexpected failures. Each project, therefore, constitutes an
opportunity for learning and anticipating new risks.
Many software companies conduct a postmortem study of each
project after its completion. The postmortem includes collecting
data about the initial planned delivery dates and actual delivery
dates, number of defects discovered, qualitative information
about technical and managerial problems encountered, and
suggestions for future projects.
Although this phase is the least visible in the life cycle, the
company depends on it the most for learning and improving its
efficiency.
The main outputs:
o Project archives: history about projects (library)
o Formal acceptance
o Lessons learned

Suggestion for Improving Project Communications


I. Using Communication skills to resolve conflicts
There are five basic modes for handling conflicts in performance
order
a. Confrontation: problem solving approach using war of word.
b. Compromise: use give and take approach.
c. Smoothing: avoids areas of differences and areas of arguments.
d. Forcing: win-lose approaches.
e. Withdrawal: retreat or withdrawal from actual or potential
disagreements.

25
II. Developing better communication skills
o Takes leadership to improve communication.
III. Running Effective meetings
You will need to meet with your team, with the executive who
assigns the project, with other departments, and with outside
resourcesat the onset of your project, and possibly while the
project is underway.
The meetings should be short and limited, or you will spend so
much time in discussion that the project will be delayed by an
intended planning process.
Meetings held with outside resources and other departments
should be held primarily to anticipate problems and overcome
them.
IV. Developing a communication Infrastructure
o A communication infrastructure is a set of tools, techniques and
principles that provide a foundation for the effective transfer of
information among people.
o Two modes of communication
o Scheduled modes of communication: These include planned
milestones, such as client and project reviews, team status
meetings, inspections, and so on. These are best supported by
synchronous or face-to-face communication, such as meetings,
formal presentations, video conferences, and telephone
conference calls.
o Event-based modes of communication: These include
problem reports, change requests, issue discussion, and
resolution. Event-based modes usually arise from unforeseen
problems and crises. Asynchronous mechanisms such as E-

26
mail, groupware, and problem databases need to be set up early,
and participants need to be trained to use them. When the
number of participants is large, centralized infrastructures, such
as Web sites and bulletin boards are preferable as they make
more information visible to more people than E-mail or
bilateral conversations do.

Rules for improving and maintaining your communication with other


departments
I. Visit the other manager before you finalize the schedule.
II. Keep in touch while the project is underway.
III. Work with the manager to anticipate problems.
IV. Remain as flexible as possible.
V. Confront the problems, not the people.

Chapter Eight
Project Risk Management

Learning Objectives

Understand what risk is and the importance of good project risk


management.
Discuss the elements involved in risk management planning and the
contents of a risk management plan.
List common sources of risks in information technology projects.
Describe the risk identification process, tools, and techniques to help
identify project risks, and the main output of risk identification, a risk
register.
Discuss the qualitative risk analysis process and explain how to
calculate risk factors, create probability/impact matrixes, apply the

27
Top Ten Risk Item Tracking technique, and use expert judgment to
rank risks.
Explain the quantitative risk analysis process and how to apply
decision trees, simulation, and sensitivity analysis to quantify risks.
Provide examples of using different risk response planning strategies
to address both negative and positive risks.
Discuss what is involved in risk monitoring and control.
Describe how software can assist in project risk management.
7.1. The Importance of Project Risk Management
Project risk management is the art and science of identifying,
analyzing, and responding to risk throughout the life of a project and
in the best interests of meeting project objectives.
Risk management is often overlooked in projects, but it can help
improve project success by helping select good projects, determining
project scope, and developing realistic estimates.

Figure 7.1 : Benefits from Software Risk Management Practices

100%
80%
80%
60%
60% 47% 47% 43%
40% 35%

20% 6%
0%
28
te

ns
ps
ts
es
s

e
m

on
tia

en

rru
sli
ris
le

go

N
itm
p

ve
e
ob

ur

ul
ne

o
pr

ts

d
om

st
he
to
d

en

co
oi

sc
y

rc
ev
av

ilit

e
e
Negative Risk

A dictionary definition of risk is the possibility of loss or injury.


Negative risk involves understanding potential problems that might
occur in the project and how they might impede project success.
Negative risk management is like a form of insurance; it is an
investment.
Positive Risk

Positive risks are risks that result in good things happening;


sometimes called opportunities.
A general definition of project risk is an uncertainty that can have a
negative or positive effect on meeting project objectives.
The goal of project risk management is to minimize potential negative
risks while maximizing potential positive risks.
Risk Utility

Risk utility or risk tolerance is the amount of satisfaction or pleasure


received from a potential payoff.
Utility rises at a decreasing rate for people who are risk-averse.
Those who are risk-seeking have a higher tolerance for risk and their
satisfaction increases when more payoffs are at stake.
The risk-neutral approach achieves a balance between risk and payoff.
Figure 7.2 : Risk Utility Function and Risk Preference

29
7.2. Project Risk Management Processes
Risk management planning: Deciding how to approach and plan the
risk management activities for the project.
Risk identification: Determining which risks are likely to affect a
project and documenting the characteristics of each.
Qualitative risk analysis: Prioritizing risks based on their probability
and impact of occurrence.
Quantitative risk analysis: Numerically estimating the effects of
risks on project objectives.
Risk response planning:Taking steps to enhance opportunities and
reduce threats to meeting project objectives.
Risk monitoring and control: Monitoring identified and residual
risks, identifying new risks, carrying out risk response plans, and
evaluating the effectiveness of risk strategies throughout the life of the
project.

7.2.1. Risk Management Planning


The main output of risk management planning is a risk management
plana plan that documents the procedures for managing risk
throughout a project.
The project team should review project documents and understand the
organizations and the sponsors approaches to risk.
30
The level of detail will vary with the needs of the project.
Topics Addressed in a Risk Management Plan

Methodology
Roles and responsibilities
Budget and schedule
Risk categories
Risk probability and impact
Risk documentation
Contingency and Fallback Plans, Contingency Reserves

Contingency plans are predefined actions that the project team will
take if an identified risk event occurs.
Fallback plans are developed for risks that have a high impact on
meeting project objectives, and are put into effect if attempts to reduce
the risk are not effective.
Contingency reserves or allowances are provisions held by the
project sponsor or organization to reduce the risk of cost or schedule
overruns to an acceptable level.
Common Sources of Risk in Information Technology Projects

Several studies show that IT projects share some common sources of


risk.
The Standish Group developed an IT success potential scoring sheet
based on potential risks.
Other broad categories of risk help identify potential risks.

Table 7.3. Information Technology Success Potential Scoring Sheet

Success Criterion Relative Importance


User Involvement 19
Executive Management support 16
Clear Statement of Requirements 15
Proper Planning 11
Realistic Expectations 10
Smaller Project Milestones 9 31
Competent Staff 8
Ownership 6
Clear Visions and Objectives 3
Hard-Working, Focused Staff 3
Broad Categories of Risk

Market risk
Financial risk
Technology risk
People risk
Structure/process risk
Risk Breakdown Structure

A risk breakdown structure is a hierarchy of potential risk


categories for a project.
Similar to a work breakdown structure but used to identify and
categorize risks.
Figure 7-4. Sample Risk Breakdown Structure

IT Project

Project
Business Technical Organizational
Management

Executive
Competitors Hardware Estimates
support

Suppliers Software User support Communication

Cash flow Network Team support Resources

7.2.2. Risk Identification


Risk identification is the process of understanding what potential
events might hurt or enhance a particular project.
32
Risk identification tools and techniques include:
o Brainstorming, The Delphi Technique, Interviewing, SWOT
analysis
i. Brainstorming:
Is a technique by which a group attempts to generate ideas or find a
solution for a specific problem by amassing ideas spontaneously and
without judgment.
An experienced facilitator should run the brainstorming session.
Be careful not to overuse or misuse brainstorming.
Psychology literature shows that individuals produce a greater number
of ideas working alone than they do through brainstorming in small,
face-to-face groups.
Group effects often inhibit idea generation.
ii. Delphi Technique
The Delphi Technique is used to derive a consensus among a panel
of experts who make predictions about future developments.
Provides independent and anonymous input regarding future events.
Uses repeated rounds of questioning and written responses and avoids
the biasing effects possible in oral methods, such as brainstorming.
iii. Interviewing
Interviewing is a fact-finding technique for collecting information in
face-to-face, phone, e-mail, or instant-messaging discussions.
Interviewing people with similar project experience is an important
tool for identifying potential risks.
iv. SWOT Analysis
SWOT analysis (strengths, weaknesses, opportunities, and threats) can
also be used during risk identification.
Helps identify the broad negative and positive risks that apply to a
project.
33
Risk Register

The main output of the risk identification process is a list of identified


risks and other information needed to begin creating a risk register.
A risk register is:
o A document that contains the results of various risk
management processes and that is often displayed in a table or
spreadsheet format.
o A tool for documenting potential risk events and related
information.
o Risk events refer to specific, uncertain events that may occur to
the detriment or enhancement of the project.
o Risk Register Contents
An identification number for each risk event.
A rank for each risk event.
The name of each risk event.
A description of each risk event.
The category under which each risk event falls.
The root cause of each risk.
o risk.Triggers for each risk; triggers are indicators or symptoms
of actual risk events.
o Potential responses to each risk.
o The risk owner or person who will own or take responsibility
for each risk.
o The probability and impact of each risk occurring.
o The status of each
7.2.3. Qualitative Risk Analysis
Assess the likelihood and impact of identified risks to determine their
magnitude and priority.
Risk quantification tools and techniques include:
34
o Probability/impact matrixes
o The Top Ten Risk Item Tracking
o Expert judgment
o Probability/Impact Matrix
i. Probability/impact matrix or chart:
Lists the relative probability of a risk occurring on one side of a
matrix or axis on a chart and the relative impact of the risk occurring
on the other.
List the risks and then label each one as high, medium, or low in terms
of its probability of occurrence and its impact if it did occur.
Can also calculate risk factors:
Numbers that represent the overall risk of specific events based on
their probability of occurring and the consequences to the project if
they do occur.
Figure 7:5: Sample Probability/Impact Matrix

ii. Top Ten Risk Item Tracking


is a qualitative risk analysis tool that helps to identify risks and
maintain an awareness of risks throughout the life of a project.
Establish a periodic review of the top ten project risk items.

35
List the current ranking, previous ranking, number of times the risk
appears on the list over a period of time, and a summary of progress
made in resolving the risk item.
Table 7:6. Example of Top Ten Risk Item Tracking
Monthly Ranking
Risk Item This Last Number Risk Resolution
Month Month of Months Progress

Inadequate 1 2 4 Working on revising the


planning entire project plan
Poor definition 2 3 3 Holding meetings with
of scope project customer and
sponsor to clarify scope
Absence of 3 1 2 Just assigned a new
leadership project manager to lead
the project after old one
quit
Poor cost 4 4 3 Revising cost estimates
estimates
Poor time 5 5 3 Revising schedule
estimates estimates

iii. Expert Judgment


Many organizations rely on the intuitive feelings and past experience
of experts to help identify potential project risks.
Experts can categorize risks as high, medium, or low with or without
more sophisticated techniques.
Can also help create and monitor a watch list, a list of risks that are
low priority, but are still identified as potential risks.
7.2.4. Quantitative Risk Analysis
Often follows qualitative risk analysis, but both can be done together.
Large, complex projects involving leading edge technologies often
require extensive quantitative risk analysis.
Main techniques include:

36
o Decision tree analysis
o Simulation
o Sensitivity analysis
o Decision Trees and Expected Monetary Value (EMV)
i. Decision tree
is a diagramming analysis technique used to help select the best
course of action in situations in which future outcomes are uncertain.
ii. Estimated monetary value (EMV):
is the product of a risk event probability and the risk events monetary
value.
You can draw a decision tree to help find the EMV.
Figure 7:8. Expected Monetary Value (EMV) Example

iii. Simulation
Simulation uses a representation or model of a system to analyze the
expected behavior or performance of the system.
Monte Carlo analysis simulates a models outcome many times to
provide a statistical distribution of the calculated results.
To use a Monte Carlo simulation, you must have three estimates (most
likely, pessimistic, and optimistic) plus an estimate of the likelihood
of the estimate being between the most likely and optimistic values.
Steps of a Monte Carlo Analysis
37
Assess the range for the variables being considered.
Determine the probability distribution of each variable.
For each variable, select a random value based on the probability
distribution.
Run a deterministic analysis or one pass through the model.
Repeat steps 3 and 4 many times to obtain the probability distribution
of the models results.
iv. Sensitivity Analysis
Sensitivity analysis is a technique used to show the effects of
changing one or more variables on an outcome.
For example, many people use it to determine what the monthly
payments for a loan will be given different interest rates or periods of
the loan, or for determining break-even points based on different
assumptions.
Spreadsheet software, such as Excel, is a common tool for performing
sensitivity analysis.
7.2.5. Risk Response Planning
After identifying and quantifying risks, you must decide how to
respond to them.
Four main response strategies for negative risks:
o Risk avoidance, Risk acceptance, Risk transference and Risk
mitigation.
Table 7.9: General Risk Mitigation Strategies for Technical, Cost, and
Schedule Risks

38
Response Strategies for Positive Risks

Risk exploitation; Risk sharing, Risk enhancement and Risk


acceptance.
Residual and Secondary Risks

Its also important to identify residual and secondary risks.

Residual risks are risks that remain after all of the response
strategies have been implemented.
Secondary risks are a direct result of implementing a risk
response.
7.2.6. Risk Monitoring and Control
Involves executing the risk management process to respond to risk
events.
Workarounds are unplanned responses to risk events that must be
done when there are no contingency plans.
Main outputs of risk monitoring and control are:
o Requested changes.
o Recommended corrective and preventive actions.
o Updates to the risk register, project management plan, and
organizational process assets.
Using Software to Assist in Project Risk Management
39
Risk registers can be created in a simple Word or Excel file or as part
of a database.
More sophisticated risk management software, such as Monte Carlo
simulation tools, help in analyzing project risks.
The PMI Risk Specific Interest Groups Web site at www.risksig.com
has a detailed list of software products to assist in risk management.
Results of Good Project Risk Management

Unlike crisis management, good project risk management often goes


unnoticed.
Well-run projects appear to be almost effortless, but a lot of work
goes into running a project well.
Project managers should strive to make their jobs look easy to reflect
the results of well-run projects.

40

Potrebbero piacerti anche