1

RDI LEARNING WITHOUT BOUNDARIES

Pearson BTEC Level 5 HNC/D

Diploma in Business

Assignment Project Management for Business

Donatas Mendelis

13/11/2014

2

CONTENTS Page:

Introduction 4

NNB ATM Software Project background and summary Project scope, objectives, deliverable, budget, and evolution

Section 1 – Project management principles 6

1.0 What’s a project? 1.1 Approach to project management 1.2 Project manager 1.2 Project management systems 1.3 Information system (IS) importance in a project 1.4 Tools &Techniques development 1.5 HR integration through information system

Section 2 – Project planning 10

2.0 Success criteria 2.1 Failure criteria

2.2 Project scheduling techniques 2.3 Relationship between project scheduling, estimating and cost control techniques

2.4 Project milestone 2.5 Project performance 2.6 Earned Value Measurements 2.7 Project change procedures 2.8 Change control plan 2.9 Change in configuration management system

2.10 Project termination process 2.11 Reasons to close-out 2.12 Closer checklist Section 3 – Project human resources 16

3.0 Project organisation structure 3.1 External interfaces 3.2 Internal interfaces 3.3 Roles & responsibilities 3.4 Project leadership 3.5 Leadership requirements 3.6 Control plan 3.7 Problem resolution plan

3.8 Project HR requirements 3.9 Allocation of HR requirements during the change Section 4 – Project evaluation 22

4.0 Summary of the project outcome

4.1 Post-performance analysis 4.2 Cost benefit review

3

Conclusion 25 Reference source: 26

o Books list (4) o Bibliography/web list (3)

4

Software Project Management Plan Review for Nirvana National Bank ATM Software Project

(Issued by Terasoft on 8th of May, 2004)

Introduction

Background of the software project management plan is that plan should be taken by Terasoft, Inc. to complete the software portion of Nirvana National Bank’s (NNB) ATM project.

1. Project summary ‘’The purpose of the project is to analyse the requirements of design, implement, and maintain the software for both the central bank server and client the Automated Teller Machines (ATM) that will comprise the Nirvana National Bank ATM network, according to the requirements specified by the client.’ (NNB ATM, 2004)

2. Scope of the project Directly connected within activities related to project purpose, but the activities which do not kin to a purpose will be out of scope. e.g.: ATM hardware and network availability.

3. Project objectives

Complete the project by the due date and within budget.

Provide a deliverables identified by the project due date.

Respectful fulfilment of all stated requirements as SRS of the software product deliverable, which fall into categories:

o modifications of customer database central bank o interface computerized accounting system with central bank o customer ATM transactions and statements o ATM operations’ statistical weekly report

4. Project assumptions and constraints

Because the project is a component of a larger project and will deliver the software components, the larger project is that this project is a part of defined the hardware that the software will run on. e.g. ‘detailed documentation about the platform will be delivered to Terasoft by 1st of June, 2004’ or ‘Terasoft will be able to learn commitment from staff within their activities’. (NNB ATM, 2004, p.3) The project will be planned with following constraints:

Budget - 25% of whole budget $12,000,000 is $3,000,000 for software.

Time – about one year, and once software will be installed onto ATM machines another 30 days requirement to install the physical ATM’s for NMB within their locations.

Staff – two external consultants from Banks etc with extensive ATM experience will assist under requirements in detailed design phases of the project. Their also supplement the team when and where are required.

Maintenance – plan for the software design and maintenance expenses should not exceed $100,000 a year, overall software maintenance budget $600,000.

5

5. What are project deliverables? The deliverables items listed and requested by NNB’s ATM project manager, and should be provided before the project end date.

Project library binaries

‘Software program and documentation for installation and end-user, also updated for NNB’s central bank documentation.

Installation of software program and library binaries on target hardware

Training for software performer of affected users including ATM branch staff, site installers, and software maintenance team.’

Project documentation – ‘software requirements specification (SRS) and software design specification (SDS) including plans: software project & test plan, quality assurance, configuration management, verification and validation plan.’ (NNB ATM, 2004, p.3)

6. Schedule and budget summary

Project consists of following high–level schedule: delivery baseline and software products for operation.

$3,000,000 for project as a budget

Project will track the Earned Value Management System (EVMS).

7. Plan evolution Project will be dynamic document and will update monthly within scheduled updates’ insertions to the plan at the last business day each month. Updates will be collected through e-mail communications to all project members. When initial plan is finalized, a baseline of the plan will be created and changes to plan will take place against this baseline. If change occurs into scope, then the plan will receive further baselines.

8. Definitions The project terms available from: (NNB ATM, 2004, p.10-12)

6

Section 1 - Project management principles 1.0 What is a project? ‘Projects are new: they do something novel that has not need done before – or, at least, has not been done before, by you, in this place, and in this way.’ (Clayton M., 2014, p.2) Projects involve different steps, different materials and people, are risky and make complications, so should be managed. Project should have typical features that define outcome - product or thing to be produced. Project has start and end date, when all activities and tasks are coordinated, project budget and uses wide range of resources, a life cycle, create change and people involved in peaks and troughs during the project. 1.1 Approach to project management Project management involves in a specific type of project co-ordinating the resources required to complete the project on time, within a budget, and successfully meeting the client expectations. To create a project plan will include formation of project objectives, project scope, deliverables, allocate resources needed and create project schedules with key delivery deadlines.

Project management will follow defined project scope, work schedules and techniques to progress effectively to the end of result that satisfy all users, sponsors, and stakeholders with agreed time scale and predicted budget.

Figure 1 - Project life cycle

Initiation - important of its meaning by the objectives that the project is addressing including clarified project extent.

Planning - indentifies resources and includes risk analysis or definition for criteria of success or failure, break down works into parts.

Initiation

Planning

Execution

Closure

7

Execution – phase of fulfilled purposes and solutions of problems occurred including implementation during this phase.

Closure - phase to bring all activities together, - the role of project manager and formal project report review indicating project progress. However, client should confirm a formal acceptance of final product.

1.2 Project manager (PM) Project manager should be professional and qualified, creative and confident, flexible and have good interpersonal and negotiation skills, ability to manage project team: resolve conflicts, adjust change, plan project budget and control implementation. NNB ATM Software project manager will manage project control plans including product requirements to change control plan based on their priority point in time and within project schedules extending the impact to work products baselined as configuration items. Manager will indentify many difficulties in predicting how to overcome such barriers quickly as possible. This process should begin before project resources have been allocated, that estimate project deliverables, costs, and continue develop industry throughout the project plan to conclusion. Because project will run using vary tools and techniques which will include cost-benefit analysis, study the feasibility when the methods of evaluation are the same. These are: identify, specify, and evaluate the costs of purchase, construction, maintenance, repair, running and proposal costs over its projected lifetime. These are reasons that project manager should learn and know about the difference between capital and revenue, what are financing cost, overheads, depreciation and inflation. 1.3 Project management systems NNB Software objectives of ATM system explains, that:

Only one customer will be serviced at time.

Insert card requirement.

Enter PIN number, which will be sent to the bank for validation and check out future transactions.

Allow deposit into ATM accepting an envelope.

8

Balance enquiry of account linked to card.

Funds transfer between accounts users.

1.4 Information system (IS) importance in a project Project systems are following information systems (IS) useful for organisational information requirements and knowledge management. Systems as a group of component helps to increase in competitiveness and gain better information for decision making. Systems capture and store data, process data and reports, support operations enforcing defined process with specific audit trails. Types of such systems are explained as executive support, decision support, expert support, knowledge work, office information systems overall known as management information system (MIS). This is why system needs to implement in a project improving works effectiveness and efficiency of a project management. 1.5 Tools & techniques development at NNB ATM Software Project The team member desktop foundation will be based on MS Windows 2000 desktop operating system, workstation (virtual machine support), and Office 2003 productivity application, IBM Lotus Notes for e-mail and calendar including Adobe Acrobat 6.0 creating and viewing files. Team management will use BCD for electronic time-sheets, MS Word 2003 for documents publishing, Microsoft Project 2003 for WBS, estimation costs, time management, project control and monitoring. Configuration & Change Management will track IBM Rational programs to defect change, requirements for quality, design and implementation, performance reporting, and testing. (NNB ATM, 2004, p. 44) 1.6 HR integration through information system Human resource is integrated through systems in achieving successful projects. A computer system related to group of systems collects and presents management information to a business in order to facilitate control. E.g. project management software does:

Planning and scheduling, creates critical path, PERT and Gantt charts.

Estimates & controlling costs, changes deadlines or resources and budgets.

Monitoring – updating plans, help with cost controls and co-ordination of activities, project review.

Reporting – progress reports and prints out. However, systems should be able to evaluate a range of project areas overall supporting project structure, system control, progress reporting, project resources and materials management, see software life cycle & process model diagram.

9

(NNB ATM, 2004, Appendix L)

10

Section 2 - Project Planning You should know that ‘projects don’t fail at the end, they fail at the beginning’. Overview of project management, its objectives and strategy, tools and techniques will assess success or failure criteria of the project. 2.0 Success criteria Project costs, time, scope and benefits are four elements used for judging the project success or failure. Success criteria may be coordinate by organizing project in a specific way of planning. In other words, project objectives contains three factors – quality, cost and time. What is an estimate? Defined budget for product and preparatory works, elements of profits overall predicting how much project will cost. However, risks involved should be analysed and managed, that do not make further implications onto project life cycle. Factors critical to success are cooperation between project manager and operational managers in a business and resources management with business strategy linking the project performance metrics, as future success is predicted within effective learning from the past projects. Critical factors to success related to project risk management plan (RMP) including documented organizational responsibilities and duration of the project. Under the plan all risks will be indentified, categorized and recorded within risk response and risk change reports at risk categorization table. (NNB ATM, 2004, Appendix J) 2.1 Failure criteria Project is considered a failure if it fails to meet targeted costs, time, or scope, and benefits due to organisation project’s results. Failures may occur of a wrong leader and poor controls of project finance, delays in deliverables in overcoming project costs. This is why undertaking the project organisation culture is crucial element of all factors to project success or failure. These measures are similar:

Project efficiency – meeting schedules, budget and design goals.

Impact on customer – customer satisfaction within problem solving.

Business success – create a new market share.

Preparing project future – create a new markets. Failure criteria may happen of problems with project information systems: isolated systems, high expectations, low priorities in information management, and lack of reporting – management do not receiving information about project progress. 2.2 Project Scheduling Techniques Project schedule is detailed timetable showing all activities with its start and completed dates. It also explains how familiar documents and resources are divided between activities to achieve the project objectives. 2.3 Relationship between project scheduling, estimating and cost control techniques Software project plan describes the activities and human resources requirements, gives summary of all activities involved, where the cost parameters justify the actions taken during the project. Estimation plan is part of managerial process plan, where ‘estimation chart showing activities, estimated duration, estimated cost, and estimated resources requirements.’

11

(NNB ATM, 2004, p. 16 & Appendix B) When re-estimation is necessary, it will be performed under re-estimation methods and schedule handling of communication of such update types for resources, costs, and schedules. ‘Work activities are presented through activities table.’ (NNB ATM, 2004, Appendix E) Review technique is related with program evaluation overall known as a PERT referring into particular type of workflow diagram also called a network diagram. ‘Critical path analysis is associated with project schedule’ and ‘is the method by which the critical path is determined.’ (RDI, 2010, PM4B, Scheduling Techniques) Computer based scheduling is project management tools using Microsoft Project to facilitate the task of scheduling analysing and controlling the project. e.g.: Gantt charts, milestone charts, and precedence network diagrams.

Schedule allocation is presented within network diagram, where critical path is shown in red, but of such diagram is very long sizes see NNB ATM, 2004, Appendix F. 2.4 Project milestone Milestone schedules at NNB Software project are milestone trends analysis used to establish any trends that may exist within the project. Team members should report about each major completed milestone, update their effort data and performance data, publish onto performance reporting website.

12

(NNB ATM, 2004, p. 28) 2.5 Project performance

Software project issued by Terasoft has lot of plans including project performance measurement and cost control techniques concluding to project control loop, which helps within project control and co-ordination activity.

Detect disturbances disturbances

supervision actions output measuring status

Figure 2 - Project control loop, (Field M. & Keller L., 1998, p.275)

2.6 Earned Value Measurements (EVM) Monitoring schedule progress is used EVM to review and measure NNB project performance:

‘Budgeted Cost of Work Scheduled (BCWS) – maintained by MS Project as time passes after a plan baseline is saved within the software.’

Actual Cost of Work Performed (ACWP) & Budgeted Cost of Work Performed (BCWP) – will be calculated using MS Project ‘as the % complete’’ activity status is collected and entered into the appropriate fields in the program’;

Schedule Variance (SV) = BCWP - BCWS, as each of measurement retrieved from program will be published to project reporting website weekly.

All Plans

Project Manager

Project Team

The project

Measuring devices

13

Cost Variance (CV) = BCWP – ACWS, when difference in value will elevate budget performance and risk rating, which will help to investigate potential remedies to the problem.

Cost Performance Index (CPI) – performance indicator with acceptable limits between 0.95 and 1.1 so will be good, but if it’s higher limits budget will be at risk and will cause problem ‘required to investigate per section 5.4’. (NNB ATM, 2004, p. 33)

Estimated Cost At Completion (ECAC) – used to estimate the cost of project completion date.

Critical Ratio (CR) – will be defined by formula as ‘CR = SPI * CPI, (SPI - Schedule Performance Index & CPI - Cost Performance Index). If critical ratio is below 0.9 or above 1.2 than project performance risk rating, as per section 5.4 will elevate’ the problem investigation requirement.

All of ‘metrics are included into project performance reporting plan’ with requirements for analysis, configuration churn, quality and risks reporting techniques. Information will be shared ‘electronically in a format supporting the HTTP protocol, posted to website with updates to know how project milestones are met.’ (NNB ATM, 2004, p. 37-38) 2.7 Project change control procedures Terasoft has change management system for internal and external software changes control about all changes to product development. These are implementation against the work product with risk occurred or perceived benefit of the change to be made. 2.8 Change control plan Strengths of the project plan established to manage change through control plan contain of six plans:

Requirements control

Schedule control

Budget control

Quality control

Reporting

Metrics collection plan Requirements of prioritization are entered into system when needed to assign a priority following to three priorities:

Critical mission (3) – product must have and change must be made to requirements.

Important (2) – should exist, change should be made.

Nice to have (1) – optional, change could be made. Requirement of product change control ‘will be considered on their based priority, their point-in-time of introduction within the overall project schedule.’ (NNB ATM, 2004, p. 24) This is how at prioritization matrix table the requirement-change priority a change will receive.

14

When impact of change will be determined on following of product scope & quality, project schedule, budget, resources and risks, the Leads will be involved into project phase along with Quality Analyst 1, project manager and the Configuration Manager 1. This is known as assessment of ‘the impact of requirements changes on product scope and quality in a review.’ (NNB ATM, 2004, p.25) Software Requirements Specification (SRS) - a change made will reflect the effects of the requirements. 2.9 Change in configuration management system As a function will be indentified by naming each item indentified under configuration control, and acquired for placing items for configuration control into the library. These are: configuration control method and mechanisms to change requests, evaluation, approval/rejection and implementation of change. Implementing change process should be reviewed by Change Control Board (CCB).

(NNB ATM, 2004, p.50-52)

2.10 Project Termination processes If organisation no longer wish to invest the time and cost required to complete the project of no more resources available, or when work on the project has ceased, slowed or further progress is impossible, it’s time to cancel all works. The most of projects closer process starts at the pint when a project has not future progress - the day the project died. In other words, project is not longer possible of all things come to an end.

15

2.11 Reasons to close-out Project manager should take on required steps making actions plan to close the project if:

Low profitability and dissatisfied users of software/product

Low probability of technical or commercial success

Schedules delays

IT problems and poorly managed project

Change in competitive factors and markets needed

Costs growth

Reported chaos The most of software projects were cancelled of poor project management. This is why a false impressions and implications is both false and hazardous.

False, when properly started, well managed with rapid change and well terminated projects of their original assumptions have changed.

Hazardous, when continue project will waste company resources. 2.12 Closer Checklist

Termination process with preliminary responsibility to assignment details is closure checklist table with important activities answering to questions ‘yes’ or ‘not’ of each item of problem occurred.

(NNB ATM, 2004, Appendix K)

16

Section 3 - Project Human Resources (HR) Overall organizations are structured around the specifications of human resources within organization. There’re project organisational structure, function and process. 3.0 Project organisation structure A stakeholder is anybody interested into project, but all stakeholders should be managed as importance of a project success is stakeholders’ management process. There’re cycle of tasks that indentify, analyse, plan and action. The organisation has complex parts of management structure within top and middle levels of management, infrastructure and supporting staffs, and operating core. At the most of the projects the key people involved are: project sponsors, project manager, owners, employees, supporters and stakeholders. Terasoft client structure is presented within two charts – external and internal. Stakeholders are structured into NNB executive committee, steering committee, project manager, and Terasoft CEO for general information requirements.

(NNB ATM Project, 2004, p.35) 3.1 External interfaces Nirvana Bank - explained within external chart, where you may understand functional organisation, but only for grouping purpose. Bank specialises in outside contracts and use strong matrix organization structure able to assemble required resources under the project manager. There’re managers for each group responsible for administration of general organization information and strong reporting relationship with group members.

17

3.2 Internal interfaces

18

At Nirvana Bank, where strong matrix organisation used by the company, resources are assigned reporting to project manager. Also ‘category as ‘Lead’ is assigned as an interface to the function.’ (NNB ATM Software Project, 2004, Appendix C)

19

3.3 Roles and responsibilities Project organisation has team members in the problem resolution process, which will be explained within leadership and management theory importance. Roles and responsibilities are illustrated in a Resources Allocation Matrix (RAM).

(NNB ATM, 2004, Appendix A) 3.4 Project leadership The structure and culture of project organisation determining people whose are being allowed to lead. Project manager manage project and people, project data and leading project team members. Leaders establish project directions, communicate through project vision, supporting, delegating, and deliver what they promise. 3.5 Leadership requirements Leadership involves people to work efficiently, when functions of management are referred into planning, motivation, co-ordinating, organising, directing, and controlling. Because functions are group of tasks that contribute aspects of company mission, the processes are series of steps of actions defining a particular function to perform. This is why managerial roles are subdivided into specific areas of leading.

Interpersonal roles – figure head, leader, and liaison.

Administering roles – managing information, control and monitor work or orders.

Decision roles - fixing, allocate resources, negotiate budgets, and problem solving.

20

Team role has many types with their contribution and allowable weaknesses. Successful team working requires careful consideration and design. Because teams are working together for specific purpose, the information obtained about teams strengths are used for purpose. These are: build productive working relationships, trust and understanding, select high-performing teams and raise self-awareness. Project managers negotiates a range of project issues as resources, schedules, priorities, standards and quality, procedures, costs, and issues of people needs and wants. This is why project managers influencing the actions of others, behaviour of others within effective form of power and leading project teams. 3.6 Control plan How project will achieve quality? Each quality review will be in a meeting format that leaders and quality analysts including project manager could assess, analyse and indentify the process for product development.

The project will perform using the earned value management system (EVMS) and critical path method (CPM) will be used to control the activities. Quality control plan describes mechanisms used for measuring and controlling quality of work processes and products within quality assurance plan where the quality delivered work products is consistent as expected.’ (NNB ATM, 2004, p. 59)

3.7 Problem resolution plan A tool and technique of problem analysis, problem prioritising and processing - roles of problem solving. Defined problem should be matched under specified problem ID - resources required to resolve an issue and activities within assignment of resources to problem solving. How team leaders will be sorting out problems within their activities? ‘All problems must be reported to the project manager using the problem reporting form designated for use on the project. When complete, the form should be submitted electronically, via e-mail.’

21

How the project team members will deal in a problem resolution process?

(NNB ATM, 2004, p. 69)

3.8 Project HR requirements When functions are group of tasks that contribute aspects of company mission, the processes are series of steps of actions defining a particular function to perform. The functions of management are referred into planning, motivation, co-ordinating and organising, directing and controlling based on how allocation of HR resources will be met during the project? All HR requirements should be carefully considered including workforce. This is why HR is planned and scheduled to enable run project smoothly by the project manager. Staff will need to attend meetings weekly, that ‘Leads’ could communicate product change, inform for reassignment of key resource requirements to make optimal use of project resources. 3.9 Allocation of HR requirements during the change HR requirements should be analysed that give required support. Project management software is project manager’s tool used and helps updating HR resources all the time. These are ‘based on estimates: quantity, work requirement, key work periods with hourly rate range for each type of resource.’

22

(NNB ATM, 2004, p.19) Additional to HR requirements is set types of material resources.

Important is correction of errors done at planning stage including staff absences reducing the project speed. This is why project has number of control plans, technical process plans, and supporting process plans monitoring project performance, quality, and audit reviews.

Reviews – ‘will ensure about documentation products adhere to standards on which they’re based.

Quality reviews of in-scope documentation work products will be conducted once the products are complete.’

Audits – when is requested and ‘brief, informal fictional audits of in-scope work products will be held during the software testing.’

23

(NNB ATM Software Project Plan, 2004, p.59) Resources histograms will illustrate allocation of each resource group during the project, as project and configuration managers, quality analysts and engineers, (see NNB ATM, 2004 Appendix D).

24

Section 4 – Project evaluation

4.0 Summary of the project outcome What is accountability to the project? If look at project objectives, it clear mission of software project to fulfil all stated requirements of ATM and provide flexible and faithful environment for a customer, who wants withdrawn money from NNB ATMs. They’ll receive ATM statements, weekly statistical report of ATM operations, customers satisfaction of bank service. Because project was completed on time and within defined budget I do believe that software project was successful. The final project budget report should show expected and actual expenditure, but fact is that project resources were not wasted.

4.1 Post-performance analysis (PPA) What is performance of the project against the planned target time and cost? This is the end of project phases, which are described in more detail at NNB ATM process improvement plan obtaining improvements during problem resolution through periodical assessment.

(NNB ATM, 2004, Appendix J)

PPA process will be assessed by project participants within closure checklist and notes for purpose for how to process improvements to implementation, e.g. Process Model & Individual Process Diagrams.

25

4.2 Cost benefit review Do project objectives were met? This project was a component of a larger NNB project delivered software components with initial estimates provided in this SPMP +/- 40%. Installed and tested software will run on banks Automated Teller Machine hardware overall of the larger project and detailed documentation of the platform quality and performances will be delivered to Terasoft by 1st June, 2004.

(NNB ATM, 2004, Appendix L) ATM computer network is created in a separate project and all documentation will exist between each ATM client and the central bank within process of software testing. This is why forecast costs and benefits will be indentified at the time of the feasibility, when finally will be complete whole project.

Conclusion Computerization is one of the factors which improve the efficiency of the banking transactions and productivity using IT. Why whole project has no further publications about small Nirvana Bank profits or market share in US banks market? Possible, loan losses by small banks was a failure within competition of a role of large banks in US. ‘The key point is that, in the current environment, the stability of the banking system-indeed, the stability of the overall financial system—is tied critically to the judgments of lenders in the money market.’(Federal Reserve Bank of Minneapolis, Quarterly Review, 1994)

26

Referencing sources

Books:

1) Business Essentials, 2010, Business Decision Making, published by BPP Learning Media.

2) Clayton M., 2014, How to Manage a Great Project, published by Pearson Education Limited.

3) Field M. & Keller L., 1998, Project Management, published by The Open University. 4) Roberts P., 2011, Effective Project Management, published by Kogan Page Limited.

Bibliography/Web:

1) www.free-mamangement-ebooks.com [19 August, 2014] 2) www.lopdf.net/d/Project-Management-Software.pdf [9 September, 2014] 3) https://www.scribd.com/doc/218905633/Nirvana-National-Bank-ATM-Software-

Project [13 October, 2014]