Software Project Management

Prof. Durga Prasad Mohapatra

Department of Computer Science and Engineering
National Institute of Technology, Rourkela

Lecture – 15
Project Evaluation and Programme Management (Contd.)

Good afternoon to all of you. Now, let us start the remaining part of the Project
Evaluation and Programme Management. We have already seen about this evaluation of
projects. Now, let us see about this programme management part.

So, in this lecture we will discuss first the various concepts of programme management,
then what is the benefit, how benefits can be managed.

(Refer Slide Time: 00:43)

So, let us first before going to programme management. Now, let us see what do we
mean by a program? Project, we have already seen. So, programme means there are
many definitions are there one definition is given by D.C. Ferns. So, according to this
definition programme is a group of projects, it is a collection of projects, that are
managed in the coordinated way to gain some benefits that would not be possible were
the projects to be managed independently.

So, if the projects will be managed by independent persons; they will be managed by
independently then, the benefits that will get it will be almost very negligible.
In other words, if a group of projects they can be managed in a coordinated way in a
collaborative way, then the possible benefits, that we will get which must be on high
which may not be obtained, if the projects will be managed independently. So, that is,
what is the difference between projects and programs. Let us recall again a programme is
a group of a projects, which are managed in a coordinated way, in a collaborative way to
gain benefits that would not be possible, if the projects would have been managed
independently.

(Refer Slide Time: 02:09)

Now, let us see what are the different types of programs available. These are the different
types of programs one strategic programs. So, strategic programs are the projects which a
group of projects a collection of projects, which implement a single strategy only those
group of projects will follow they will implementing a strategy that is why they are
known as a strategic programs. Business cycle programs these are the groups of the
projects, that an organisation undertakes within a business planning cycle.

So, within a particular business planning cycle what category of the projects, what
groups of projects that on under taken an organisation undertakes, that is known as
business cycle programs.

Then, infrastructure programs so, these are the groups of projects, which are performing
the activities of identifying some common infrastructure and its implementation and its
maintenance. So, that is why since here the group of projects, they perform some
activities of identifying some common infrastructure. And, its implementation and
maintenance that is why, this programme is known as infrastructure programme.

So, then R and D development or research and development programs more popular
known as R and D programs these are very easy to understand. So, these are the groups
of projects, which are involved in developing some new products, some innovative
product, based on some current research work. So, this is known as research and
development programs or R and D programs then innovative partnerships.

So, now a day’s many companies they do some collaborative projects. They do
combinedly some they tackle some projects combinedly collaboratively. So, this kinds of
projects are the groups of similar types of projects are based on collaboration by different
organisations is known as innovative partnership. Here the projects are based on some
collaborative work performed by different organisations.

(Refer Slide Time: 04:13)

Now, let us see we have already seen what is a project, we have already seen what is a
program. Now, let us see what is the difference between a programme manager and
project manager, why the resources for the what for the resource allocation or the
resource allocation to programs, it will depend upon who are the end users. They could
be that could be system analyst, database administrators, programmers, coders, etcetera.
So, how the resources can be allocated to different projects or to different programs.
Before this so, for allocating knowing this resource allocation we must know, what are
the differences between the programme managers and the project managers. So, mainly
programme manager he is responsible for handling many simultaneous projects whereas,
project manager he performs only one project at a time. Similarly, the programme
manager he has personal relationships with all the skill resources working under him, but
a project manager he does not have personal relation.

So, he has him personal relationship with the resources. The objective of programme
manager is to optimal use of the resources. How optimally you can utilize the resources,
but the project manager his objective is how to what give minimise demand for the
resources? How he can put minimization of the demands, how he can achieve
minimization of the demands for the resources.

Then the project manager; in case of project manager the projects tend to be seen as
similar almost the projects are similar, but the project manager he use the projects or the
projects which are under the project manager. They tend to be seen as unique they are
not similar, they are the projects which are under a project manager, they tend to be seen
as unique. These are the differences between programme managers and the project
managers. So, accordingly the resources can be allocated to different projects.

(Refer Slide Time: 06:27)

Now, let us see about this strategic programs. So, we have to see the strategic
programme management; so, actually we should know the before knowing this strategic
programme managements, we should know the strategic programme. Strategic programs,
I have already told you that these are the projects which implement a single strategy
only.

(Refer Slide Time: 06:45)

So, now we can see about this strategic programme management. It is a difference form
of a programme management; actually title should be strategic programme management.
So, strategic programme meant programme management is a different form of
programme management, where portfolio of the projects. They all contribute to a
common objective, they all work for a single strategy, they all contribute to a common
objective.

So, this is another form of a programme management where the portfolio of the projects
they all contribute to a common objective. It is based on what this OGC approach?
Where OGC stands for the Office of Government Commerce previously it was shown as
CCT.
(Refer Slide Time: 07:34)

So, the initial planning document that we have to use is a Programme Mandate. So, now
let us see how to create a programme? What kind of documents are required to create a
programme? The first document that, we required to create a programme is programme
mandate. So, this is the initial planning document is known as the programme mandate.
The programme mandate describes what the following things.

It describes the new services or the capabilities that the programme should deliver. So,
what services or what capabilities, which are particularly new that the programme should
deliver that should be mentioned in this programme mandate this document. Then, how
an organisation will be improved? The suggestions, how the organisation can be
improved further.

So, all those suggestions also should be put in the programme mandate, then fit with
exiting organisational goals. So, whatever the services or the capabilities will do so, will
perform. So, or it will deliver they must be fitting to the organisational goals, what are
the organisational goals? So, these services capabilities as well as the suggestions for
improving the organization they should be fit with the existing organisational goals or
the objectives. A programme director appointed a champion for the scheme. So,
normally live a programme director appointed a champion for this type of schemes.
(Refer Slide Time: 09:10)

So, as I have already told you the first document, the first document for creating a
programme is a programme mandate. Now, we must to see that the other documents, that
must be used for while creating a program. So, we must use these kinds of documents for
creating a programme. Now, first one the programme brief, as if name suggest, the
programme details must be explained here briefly that is known as the programme brief.

He it is just equivalent to a feasible study; feasible study we have already seen earlier
that and the three types of feasibility we have studied, we have known technical
feasibility, financial feasibility and operational feasibility. The most important one is the
financial feasibility or the cost benefit analysis.

So, this programme brief it is just equivalent to a feasibility study. Here emphasis is
given on the financial assessment or the cost benefit analysis, then there must be a
statement there is a document containing the vision statement. So, every organisation
what should have a vision statement, this document explains the new capability that the
organization will have.

So, what kind of new capability the organization will have this document explains this
thing then there must be a blue print. So, this document explains the changes to be made
to obtain the new capability. So, in order to so what new capability that the organisation
should have that is contained in the vision statement whereas, the changes they need to
be followed. So, that should be in order to obtain the new capability, that is present in the
blueprint; just a master print, blueprint it has to prepared, since obviously in this meaning
the it has the organizations they every organization they have a blue print. This
documents it explains what changes they have to be made in order to obtain the new
capability.

(Refer Slide Time: 11:20)

Then, let us say, what are the aids to programme management, what documents or what
diagrams or what tools they can be used to aid programme management. See there may
be a physical and technical dependencies between projects. Many in many cases; in some
cases the projects are independent, but in some cases the projects are dependent. That
means, before completing one project you cannot go to another project.

For example, suppose let us see that two organisations, what two organizations computer
sections they have to be merged. Suppose this is a project this two organisations
computer sections or computer infrastructures they have to merged. So, this project is
there. So, a previously the two organizations they are running in two different what say
building.

So, since they will be merged, then this can be treated as a project. So, after merging
suppose they will be shifted to another building. Then, you can see that this project that
merging of the computer sections of two organizations is completely dependent on the
new building. The completion of the new building because, unless the new building is
completely developed is completely furnished then, the computer sections of both the
organisations cannot be shifted.

So, here that merging of two computer sections of the two organisations, this is a project
and finishing of the new building is another project. So, here merging of the two
computer sections of the two organizations is completely dependent on the second
project that is this finishing or completing the new building.

So, how you can represent these dependencies may be physical or technical, how you
can represent the dependencies between projects. So, several diagrams are there to
represent this; so, one particular diagram there called as the dependency diagrams. So,
this dependency diagram can be used to represent the physical and the technical
dependencies between the different projects.

So, this dependence diagram just like activity networks those have are known PERT or
CPM .So, they are you must have used activity networks so, this dependency diagrams
just they are very much similar to the activity networks.

(Refer Slide Time: 14:06)

Now, before going to see about the benefits management let us see, what is a benefit? So,
after every organization they do some investment with an hope that after some years they
will get back their money spent in investment as well as some profit they will get. So,
that we call as the benefit. Benefits are of different types we have already seen earlier
they can be tangible benefits or intangible benefits, they can be direct or indirect, they
can be fixed or they can be variable.

So, now let us see these are the different types of benefits, you know that some of the
benefits, they can be easily identified, they can be easily measured, they can be easily
quantified. Whereas, some of the benefits they cannot be identified, some of the benefit
they cannot be measured, some of the benefits they cannot be quantified. So, we have to
if we know the different types of a benefits and which of them can be identified, which
of them can be quantified, which of them can be measured, then that will help in
managing the benefits.

So, this benefit management it provides an organization with a capability that does not
guarantee that this will provide benefits in besides need for benefits management. Simply
say, this provide that benefits management, it provides an organization with a capability
that does not guarantee, that this will provide benefits in besides. It needs for benefits
management you just get benefit does not mean that what you are always getting the
benefits, you need to properly manage them; that they need for benefits management,
this has to be outside the project; project will have been completed. So, project will be
completed after a few days or few hours few years.

So, this benefits management is normally what handled outside the project. Therefore, it
is done at the programme level, we want to have the benefit for the organisation. You
know that some of the projects may give benefit some of the benefits may lead to loss,
but at a programme level our objective should be to get more benefits, so that is why the
benefit management it has to be conducted, it has to handle outside the project may be at
the programme level.
(Refer Slide Time: 16:50)

So, what these benefits management or in order to carry out this benefit management,
what we should do, what we should must try for? So, we have to define the expected
benefits, in order to just like as we have seen the programme management. In order to
carry out this benefits management, we have to first define the expected benefits; we
have to identify the expected benefits, we have to define them.

But, as I have already told you some of the benefits they can be easily defined, but some
of the benefits you cannot define them, then we have to analyse the balance between cost
and benefits. So, we have to analyse the balance between the cost and benefits how much
investment we have made those are the cost and how much benefits we are getting. Here
you have to consider all sorts of benefits including tangible-intangible fixed and variable
and direct and benefit what indirect. So, we have to take into consideration all the
benefits.

Because, some of the managers they normally they do not take into account intangible
benefits, because they are unable to measure them, they are unable to quantify the
intangible benefit, they are not taking to consideration in the cost benefit analysis. But, it
is required that all the possible types of cost including tangible and intangible direct and
indirect and fixed and variable, they should be considered. Similarly all the possible
benefits such as direct and indirect benefits tangible and intangible benefits fixed and
what variable benefits, they must be taken to account during the cost benefit analysis,
then you have to analyse the balance between these cost and the benefits.

Then the next step is plan how benefits will be achieved? This time the organisation this
year this much benefit suppose they have got, then they must be plan how to maximize
the benefit the next year. So, they have to plan, they have to develop some specific plans,
how benefits can be what maximized, how benefits will be; more benefits will be
achieved in the future time. Then allocate responsibilities for their achievement. So,
different personals involved in the project, different personals involved in the
programme, they will be assigned responsibilities for their achievement. So, this should
be in the plan.

So, we have to allocate a responsibilities for their achievement similarly, monitor the
achievement of the benefits. So, whether we have made the plan, how to achieve the
what benefits, then just making the plan is not sufficient enough. Then, we have to
monitor them; regularly we have to monitor the achievement of benefits.

We have to see what is the target that we have to put this year and periodically we have
to say in periodic intervals what is the achievement whether we are closer to the what
target or we are lagging behind the target. So, if you are lagging much behind the target,
what precautions, what remedial actions we should take so, that we should achieve our
target benefit. So, we have to monitor and control the achievement of the benefits .

(Refer Slide Time: 19:57)

So, how can do this as I have already told you we have to monitor achievement of
benefits. How we can monitor the achievements of the benefits? So, for example, as I
have already told you we are not able to what get the benefits, because our the service
were providing or the product were providing we are not able to provide in the
designated time.

So, we have to see why we are lagging, why there is a delay, so we can take
precautionary measures so that, this delay can be avoided. If the delay can be avoided the
service we can provide more services, we can sell more number of products. So, that will
bring more profit. So, that is why we have to regularly what monitor the achievement of
the benefits. If something we are lagging behind we must take remedial actions. So, that
we can be closer to the targeted benefits.

So, now, let us see what could be the possible benefits for an what organization or for a
what projects? So, these benefits, these might include mandatory requirement, what kind
of requirements are must so, that you may get a benefit. So, mandatory requirement
improved quality of service. So, this is called as QoS; so, the quality of service must be
improvised. So, that automatically benefits will come in the example I have already
showed you, I have already told you if there is a much delay in providing the services, if
you are much delay in what producing the products then; obviously, the customer the end
user will be dissatisfied.

And, we know what dissatisfaction of the customers is not a what benefit rather, the
satisfactory customers even if it is a what intangible benefit, what that will bring, what
reputation to the organisation we can get more profit. So, we have to improve the quality
of service. Then increase productivity, how in less time we can produce more number of
products, that is called as what this increased product productivity we may see what are
different.

We may use different approaches may be we will use some automated tools or some
other things so, that with less time how you can increase the productivity, how can
increase more number of products in a given period of time, then more motivated
workforce how we can motivated the people to work better. So, more motivated
workforce we will also bring in profit ok to more motivated work force will also bring in
profit to this organization. And similarly internal management benefit so among the
organization, how can create awareness, how can and to better management. So that, we
can get more benefits.

So, for example, what like if you will create a awareness among the what employees say
by giving some awards, awards etcetera and providing some scheme to them etcetera.
So, we can internally manage what the benefits the employees they can be, what
motivated to better and different kinds of benefits, those are internal to the management,
they should be handled in a proper way.

See for example, the we are now suppose, what doing one thing to increase the number
of sales. And, now if we want to the increase the number of sales, suppose that is
happening the sales are in creating. And, now in order to get more number of sales if you
will put some what employee to do overtime job.

So, time will come that the benefit due to getting more sales might it will be what is less
that then the amount that will pay to the what the employees in overtime. So, that will
not be considered as a benefit, rather that will be dis benefit. So, we should try to avoid
this. So, this kind of things we must take care of in order to what improvise our benefits.

(Refer Slide Time: 24:43)

So, similarly another what benefit may come due to risk reduction. We have already seen
the different types of risks such as what business risks and the project risks. So, our
objective is to reduce the number of risks. Of course, where there is more risks, there is
more benefit, more profit, but handling the risks will be much more important.

So, we will try to reduce the number of risks how the number of risks can be reduced so
that, ultimately the benefits may improve. Similarly, we should see about the economics,
what is the economical status of the organization, how it can be improved. So, if the
economical status is improved and; obviously, benefit will come to the organisation, then
revenue enhancement and accelerations. What steps you should, because see revenue
enhancement is also treated as a benefit, what steps we must take to enhance to
accelerate the revenue.

So, those steps if will follow strictly then automatically the revenue will be enhanced the
acceleration and similarly strategic field fit. So, you must particularly improve the
strategies in order to maximize the profit, in order to maximize the benefit.

So, these are the strategic needs or the organisation level, we must see then strategic
level at the programme level, then strategic level; what strategic techniques or the
strategic actions are the project level, they have to be defined clearly. So, that the
benefits will be maximized for the a project or for the programme or for the organisation.

(Refer Slide Time: 26:39)

So, next we will see about to quantifying the benefits, how we can quantify the benefits?
So, we have known that there are some benefits which can be quantified and valued. For
example, there is a reduction of say x staff saving dollar y. Say, we have due to
automation of the existing system previously it was manual due to automating it, we
have reduced 10 staff members so, that we have saved say 200 dollars.

So, it can be easily quantified and valued. Some benefits they can be quantified, but they
cannot be valued. For example, decrease in customer complaints, we have previously it
was manual and now the system we have made it automated. So, the customer
complaints that we are what getting now, there is what it is successfully reduced.

So, we can easily quantified it, but the value that we will get as the gain or the benefit
that it cannot be valued. Similarly, some benefits they can be identified, but not they can
be easily quantified. For example, public approval for an organisation in the locality
where it is best suppose that and you take these mobile industries.

So, they want to put a tower in your area for that they have to take the approval of the
local authority. So, if you will get; if you can they can put a tower then; obviously, they
are what mobiles will be or there yes, their mobiles sims, they will be sold more and;
obviously, they will get more benefit.

So, this kind of benefits like a public approval for a mobile industry to set up a may be
tower in the locality.

If they get the approval then they can set up a tower and they can sell more number of
their mobile sims and hence their benefit will be more. So, this so, this types of the
benefits, they can be identified, but they cannot be easily a quantified.
(Refer Slide Time: 28:45)

So, in this class we have discussed about what is a programme and about the some what
details of different types of programme management, we have also seen what is a
benefit, what are the different types of benefits and how benefits can be managed.

(Refer Slide Time: 29:06)

So, these are the references and it is so, most of the things we have taken the reference
number 1, only the different types of cost and benefits, we can see at reference number 2.

Thank you very much.