IT Project Management MCA VTU semester 4 .pptx

IT Project management

1. I T Project Management Chapter – 2 Project Evaluation & Program Management

2. Project Portfolio Management (PPM) Centralized management of projects and programs Helps align projects with organizational strategy Focuses on maximizing value and minimizing risk

3. Three Aspects of PPM Portfolio Definition : Each organization should record in a single repository details of all current projects. Portfolio Management : More details on costing of projects can be recorded. Portfolio Optimization : Performance of projects can be tracked by high – level managers on regular basis.

4. Objectives of PPM Align projects with organizational strategy and goals Maximize value of the project portfolio Efficient resource allocation Improve decision-making with real-time data

5. Key Components of PPM Project Identification Categorization of Projects Evaluation and Prioritization Authorization and Monitoring

6. PPM Lifecycle Initiation Planning Execution Monitoring Review and Closing

7. Tools & Techniques in PPM Portfolio Dashboards Risk and Impact Matrices Scoring Models Resource Allocation Tools Cost-Benefit Analysis

8. Benefits of PPM Strategic alignment of projects Optimal resource and budget usage Reduced failure rates Enhanced project visibility Increased ROI

9. PPM vs Project Management PPM focuses on portfolio value and strategic alignment Project Management focuses on individual project success PPM is medium to long-term; PM is short to medium-term PPM decisions by Portfolio Manager or PMO ; PM decisions by Project Manager

10. Role of PMO in PPM Standardizes project processes Ensures strategic alignment Provides governance and oversight Manages cross-project resources Supports decision-making with data

11. Cost-benefit evaluation technology What is Cost-Benefit Evaluation? Cost-Benefit Evaluation (CBA) is a decision-making tool used to evaluate the feasibility, efficiency, and value of a project by comparing its expected costs against its benefits . Objectives of Cost-Benefit Evaluation Determine economic feasibility of a project. Help in decision-making and project selection. Prioritize projects with high return and strategic fit. Assess both tangible and intangible outcomes.

12. Steps in Cost-Benefit Evaluation Identify Costs and Benefits Direct, indirect, fixed, and variable costs Tangible and intangible benefits Quantify and Monetize Assign monetary value to both costs and benefits Discount Future Values Use discounting for long-term projects to calculate present value Calculate Metrics Net Present Value (NPV) Benefit-Cost Ratio (BCR) Return on Investment (ROI) Analyze Results and Make Decisions

13. Types of Costs Direct Costs : Hardware, software, human Indirect Costs : Overheads, utilities Opportunity Costs : Foregone benefits of alternative use Sunk Costs : Past costs not recoverable

14. Example

15. Common Cost-Benefit Evaluation Techniques a) Net Present Value (NPV) Formula: NPV = Σ (Benefits - Costs) / (1 + r)^t Indicates total value added by the project NPV > 0 → Accept project b) Benefit-Cost Ratio (BCR) Formula: BCR = Total Benefits / Total Costs BCR > 1 → Profitable project c) Return on Investment (ROI) Formula: ROI = (Avg. annual profit / total investment) × 100 Used to measure percentage gain from investment Contd…

16. Common Cost-Benefit Evaluation Techniques d) Payback Period Time taken to recover the initial investment Shorter payback period is preferred e) Internal Rate of Return (IRR) The discount rate at which NPV = 0 Helps compare project returns with required rate of return

17. Benefits Tangible : Revenue, cost savings, time saved Intangible : Customer satisfaction, brand value, employee morale Social : Community impact, environmental benefit

18. Limitations Difficulty in quantifying intangible benefits May involve subjective assumptions Ignores non-monetary or ethical factors Sensitive to discount rate used.

19. Risk Evaluation Process of identifying, assessing, and prioritizing risks Part of risk management in projects Helps in making informed decisions and mitigating threats

20. Objectives of Risk Evaluation Identify potential risks to the project Evaluate the impact and likelihood of each risk Prioritize risks based on severity Develop response and mitigation strategies

21. Types of Project Risks Technical Risks – technology failure, scope creep Management Risks – poor planning, unclear roles Financial Risks – cost overruns, funding issues External Risks – legal, environmental, market changes

22. Steps in Risk Evaluation Risk Identification Risk Analysis – qualitative and quantitative Risk Prioritization Risk Response Planning Monitoring and Reviewing Risks

23. Example Risk matrix

24. Risk Analysis Techniques SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) Risk Probability and Impact Matrix Failure Mode and Effects Analysis (FMEA) Monte Carlo Simulation

25. Benefits of Risk Evaluation Prepares project team for uncertainties Reduces impact of adverse events Improves resource allocation Enhances stakeholder confidence

26. Example Scenario Project : Mobile banking app Risk : Data breach Probability : High | Impact : Severe Response : Implement advanced encryption and frequent audits .

27. What is Strategic Program Management? Coordinated management of related projects to achieve strategic goals Focuses on delivering organizational value rather than just project deliverables Ensures alignment of program outcomes with business strategy

28. Objectives of Strategic Program Management Align program outcomes with organizational goals Optimize resource use across projects Enhance governance and control Deliver long-term business value

29. Key components

30. Program initiation Program initiation is the first step in Strategic Program Management. It involves defining the program objectives, identifying the strategic fit, and understanding the stakeholders. During this phase, it is essential to assess the feasibility and alignment of the program with the organization's strategic priorities.  Program planning Once the program is started, a comprehensive plan is developed to guide its execution. This involves creating a program roadmap that outlines the program's major milestones, deliverables, and dependencies.

31. Program execution During the program execution phase, the focus shifts to managing program resources, monitoring progress, and addressing risks and issues. Project Resource management involves allocating the necessary personnel, budget, and equipment to individual projects within the program. Program control and evaluation Program control and evaluation are ongoing processes that ensure the program remains on track and delivers the intended results. Tracking program performance through key performance indicators (KPIs) and metrics provides valuable insights into the program's progress and allows for data-driven decision-making.

32. Benefits of Strategic Program Management Enhanced alignment with organizational strategy Improved resource utilization and efficiency Greater visibility and control over interrelated projects Increased ability to manage program risks and adopt to changes

33. What is Step-Wise Project Planning? Structured methodology for planning a project in phases Ensures thorough preparation before execution Reduces risks and improves predictability of outcomes

34. Step 0: Select Project Step 1: Identify project scope and objectives Step 1.1 : Identify objectives and practical measures of the effectiveness in meeting those objectives Step 1.2 : Establish  a project authority Step 1.3 : Stakeholder analysis - identify all stakeholders in the project and their interests. Step 1.4 : Modify objectives in the light of stakeholder analysis. Step 1.5 : Establish methods of communication with all parties.

35. Step 2 : Identify project infrastructure - Step 2.1 : Identify installation standard and procedures - Step 2.2 : Identify project team organization Step 3 : Analyze project characteristics - Step 3.1 : Distinguish the project as either objectives- or product-driven. - Step 3.2 : Analyze other project characteristics - Step 3.3 : Identify high-level project risks - Step 3.4 : Take into account use requirements concerning implementation - Step 3.5 : Select development methodology and life-cycle approach - Step 3.6 : Review overall resource estimates

36. Step 4 : Identify project products and activities - Step 4.1 : Identify and describe project products - Step 4.2 : Document generic product flows - Step 4.3 : Recognize product instances - Step 4.4 : Produce ideal activity network Step 4.5 : Modify the ideal to take into account need for stages and checkpoints Step 5 : Estimate effort for each activity - Step 5.1 : Carry out bottom-up estimates         - distinguish carefully between effort and elapsed time - Step 5.2 : Revise plan to create controllable activities          - breakup long activities into a series of smaller ones        - bundle up very short activities

37. Step 6 : Identify activity risks - Step 6.1 : Identify and quantify activity based risks                - damage if risk occurs               - likelihood if risk occurring - Step 6.2 : Plan risk reduction and contingency measures               - risk reduction : activity to stop risk occurring               - contingency : action if risk does occurs - Step 6.3 : Adjust overall plans and estimates to take account of risks Step 7 : Allocate resources - Step 7.1 : Identify and allocate resources - Step 7.2 : Revise plans and estimates to take into account resource constraints

38. Step 8 : Review/ Publicize plans - Step 8.1 : Review quality aspects of the project plan - Step 8.2 : Document plans and obtain agreement Step 9 and 10 : Execute plan. Lower levels of planning

39. Benefits of Step-Wise Planning Improves clarity and structure Minimizes surprises and risks Ensures better resource and time management Improves stakeholder satisfaction