1.

Project Management

Example : Chapter 1: Requirements

2. Introduction

3. Learning Outcome

It contains the list of competencies that students should acquire during the learning
process.

1. Explain the key components of a project plan.

2. Explain the importance of a cost/benefit analysis to the successful implementation of a project

plan.

3. Explain roles and responsibilities for key project personnel and stakeholders.

4. Use appropriate project planning and tracking tools.

5. Discuss the issues involved in creating a project schedule.

6. Explain how to identify the lessons learned in a project closeout and review session.

4. Learning Content

It contains readings, selection and discussion questions and sets of activities that students
can work on individually or by group.

Topics for module 1: Requirements

Topic 1: Cost benefit analysis

What Is Cost Benefit Analysis?

 In project management, cost-benefit analysis is one more tool in the toolbox. This one was designed to
determine the cost and benefits of your project proposal. It starts from a list, as do so many processes.

There's a list of each project cost and what the benefits will be after the project has been completed
successfully. The return on investment (ROI), internal rate of return (IRR), net present value (NPV) and
payback period can be determined from this.

The disparity between the costs and benefits will decide whether or not intervention is justified. For
most cases, if the cost is 50% of the benefits and the payback period is no longer than a year, then it is
worth taking the action.

The Purpose of Cost Benefit Analysis

In project management, the aim of cost benefit analysis is to provide a holistic approach to recognize
the pluses and minuses of different routes across a project, including transactions, activities, business
requirements and investments. Analysis of the cost advantage gives you choices and it provides the best
path to achieving your target while saving on investment.

There are two main purposes in using CBA:

1. To determine if the project is sound, justifiable and feasible by figuring out if its benefits

outweigh costs.

2. To offer a baseline for comparing projects by determining which project’s benefits are greater

than

its

costs.
The Process of Cost Benefit Analysis

CBA has been around for quite a long time, according to the Economist. Benjamin Franklin wrote about
their use in 1772. But the CBA idea as we know it dates back to Jules Dupuit, a French engineer who
described the method in an 1848 paper.

Although it is not clear if this Founding Father has followed this exact method, it has developed to
include the 10 steps:

1. What Are the Goals and Objectives of the Project? The first step is probably the most critical,
since you need a simple and definite understanding of what it is intended to achieve before you
can determine if a project is worth the effort.
2. What Are the Alternatives? You need to equate it with other projects before you can decide if
the project is right to see which is the best path forward.
3. Who Are the Stakeholders? Listing of all project stakeholders.
4. What Measurements Are You Using? You have to determine which metrics to use to calculate
both costs and benefits. And how are you going to comment on these metrics too?
5. What Is the Outcome of Costs and Benefits? Look over what the costs and benefits of the
project are, and map them over a relevant time period.
6. What Is the Common Currency? Take all the accumulated expenses and benefits and turn them
into the same currency to make an apple-to-apple comparison.
7. What Is the Discount Rate? That will convey the interest amount at the end of a certain time as
a percentage of the balance.
8. What Is the Net Present Value of the Project Options? It is a income metric measured by
subtracting the current cash outflow values for a period of time from the existing values of cash
inflows.
9. What Is the Sensitivity Analysis? It is a analysis of how output uncertainty can be apportioned in
its inputs to various sources of uncertainty.
10. What Do You Do? After gathering all these data the final step is to make the option suggested
by the study.

How to Evaluate the Cost Benefit Analysis

The data you gather will be used to help you decide whether the project will have a positive or
negative effect. Keep in mind the following things as you evaluate the information:

 What are the effects on users?

 What are the effects on nonusers?
 Are there any externality effects?
 Is there a social benefit?

It's also necessary to generally apply all the related costs and benefits. That is, the amount of time the
money spent takes. This can be achieved by translating the projected potential costs and benefits into
the existing prices.
There is risk inherent in any plan, of course, and danger and uncertainty must be addressed when
determining a project's CBA. This can be measured with probability theory. Uncertainty is different from
risk, but it can be measured using a sensitivity analysis to show how the results react to changes in
parameters.

How Accurate is Cost Benefit Analysis?

How is CBA accurate? The short response is that the data you put into the process is just as reliable. The
more precise your calculations are, the more reliable your results would be.

Such inaccuracies are triggered by:

 Too much reliance on data collected from past projects, especially when those projects differ in
purpose, scale, etc.
 Using subjective impressions when you’re making your assessment.
 The improper use of heuristics (problem solving employing a practical method that is not
guaranteed) to get the cost of intangibles.
 Confirmation bias or only using data that backs up what you want to find.

Are There Limitations to Cost Benefit Analysis?

Cost benefit analysis is best suited to smaller to mid-sized projects that don’t take too long to complete.
In these cases, the analysis can lead those involved to make proper decisions.

However, in terms of CBA, massive projects that are going on for a long time can be problematic. There
are outside factors that influence the precision of the study, such as inflation , interest rates etc.

Certain approaches, such as NPV and IRR, supplement CBA in evaluating broader programs.
Nonetheless, the use of CBA overall is a key step in deciding if any project is worth pursuing.

Software Project Team Roles and Responsibilities

Effective production projects require meticulous preparation, a creative team and the cooperation of
both internal and external team leaders (client representatives) of a project. Software projects only
succeed when the main members of the team are in position.

The identification, definition and communication of roles and responsibilities is fundamental for the
ability of a team to deliver. Clearly defined responsibilities allow each team member to focus on their
work and provide the structure they need to feel comfortable in their role.

Below we look at some of the typical team roles in the software and key responsibilities of each member
of the team.

Project Position Description Roles and Responsibilities

The Project Manager delivers 1. Schedule, preside and register
Project the Product Manager strategy. related meetings
manager The Project Manager ensures
that the production team has
2. Project review and team results
to help understand where
everything it needs to get the changes can be made to the
job completed. They delete any processes
 barriers, and all meetings and 3. Ensure the development team
contact are handled. has the tools available to carry
out the work
Some of the most important 1. Defines features
Analyst positions in the construction 2. Service and company
world but also the most interruptions 'Cover' developers
overlooked. Possibly because 3. Liaise with the Technical Director
often the job is rolled into the and Marketing Manager for
position of Project Manager. , Is questions resolution
well qualified and has ample
business experience to
effectively interact with the
Product Manager.
The title of this position is 1. Protect other developers from
Technical sometimes misleading because questions from the project
Lead it implies this person must be
the team's 'best' developer.
managers and business analysts
2. Be familiar with the features built
This is not necessarily true in sprint
however. This position offers a 3. During the sprint, attend relevant
designated contact point in the meetings including
development team to the demonstration of features
Project Manager and Business
Analyst, without having to
disrupt other developers. This
task can be rotated per sprint,
or as often as required.
Developers constitute the 1. Develop the features laid out in
Developer center of the team which can the sprint
range from 1 to 7 members. A 2. Update the Technical Lead and
dev team of 8 or more typically Project Manager on progress in
breaks down into two teams stand up meetings
more effectively. When 3. Focus and be brilliant
developers are actively
designing the necessary
features they will have the
greatest effect on the success
of the team. It is their time to
be safe and respected.
Be mindful of the scope of the 1. Know the requirements of our
Software project clients and their market viabilities
Architecture 2. Find the gaps between
requirements and SAP
functionality and find feasible
approaches to address the gaps
3. Plan the approaches in detail
with the assistance of consultants
and companies
 4. Prepare solutions to be closed
and see through solutions
implemented
Designer does all of their design 1. Turn the project or product vision
Designer sprints on the front and then into a visual thing
goes on to the next project or 2. Work with the Product Manager
feature. They will get involved to create a user experience that
from start to finish in the meets requirements
delivery process. 3. Support the development team
When developers have tried through the build process
and failed to create a product
that meets the requirements of
the Product Manager, designers
are brought back into the
process. By then it's too late
and fails to produce the drug.
The position of one product / 1. Understand the characteristic
Tester project will make or break. The requirements set by the product
function of a successful QA manager and the business analyst
ensures that the product or 2. Ensure that developer-built
project is a success. If done features meet the requirements
poorly however, the entire specified in the
image of the product / project / 3. Engage engineering teams to
company could be tainted by reach consensus and grasp QA
the fall out. Here, don't cut processes
corners. Invest in testing and
the rewards will be reaped.
These are the individuals (or 1. Those may also be considered
Client groups) who are the direct "customers," even if they are
beneficiaries of a project or internal to the company.
service. They are the people 2. LifecycleStep usually refers to
who will be undertaking the them as customers if they are
project for. (Probably, indirect internal to the business.
beneficiaries are stakeholders.) 3. 3Unless they're outside of the
business they 'd be considered
"customers."
They are the particular 1. The stakeholders are usually from
Stakeholder individuals or organizations within the organization, and may
who have a stake, or an include internal customers,
interest, in the project result. executives, employees,
administrators, etc.
2. Often, a project can have
external stakeholders including
vendors, investors, civic groups
and organizations in government.
They are the people who can 1. They may not get involved until
Users potentially use the project's the test process is completed.
 deliverables. Such individuals 2. Sometimes you want to
may also be actively involved in specifically identify the user
tasks such as identifying organization or the solution 's
business conditions in the specific users, and assign them a
project. formal set of responsibilities,
such as developing use cases or
user scenarios based on business
requirements needs.

Whatever framework or terminology you use in your project or product teams, make sure that
the best people are selected for each position. Define the main roles and responsibilities of each person
and then communicate, so that the whole team understands exactly what is required of them.

ACCOUNTABILITY FINANCE

BUDGET PLANNING, ESTIMATION

RISK MANAGEMENT

SCHEDULING

TRACKING