Planning for Future Project Development

What lessons did you learn from your last project? Whether the project was a success or not, it can teach you valuable lessons you can incorporate into your future projects.

However, applying lessons learned from past projects to future projects usually does not happen automatically. You must plan for future project development. By following the two strategies described below, you can ensure that you have an appropriate plan in place, so you can learn from past projects and manage future projects more effectively.

1. Gather project data.
You should begin by examining your data. If you have been documenting the progress of your project from the start, you can use the data you have collected to identify the most effective techniques to incorporate into your future projects. You also can implement the following three strategies to gather project data.

• Postmortem meeting. You can hold a project postmortem meeting, where all members can openly discuss the positive and negative aspects of the project. A postmortem meeting gives all team members an opportunity to discuss issues and brainstorm ways to eliminate similar problems in future projects. This strategy is useful only when participants have had a chance to review the project.
• E-mail summary. An e-mail summary from each participant is also a great strategy for gathering information on the good and bad aspects of the project. This strategy is useful when time is of the essence or when team members do not have time available to meet.
• Written reports. Written reports that describe the team members' experiences throughout the life of the project are useful when written documentation is required. For example, use this strategy when senior managers request a report.
  

2. Document the information.
Once the project information is gathered, it is imperative to document this data for future project development. There are three strategies you can use to document the information you've gathered.

• Develop a checklist. A checklist is effective as a reference tool for similar projects in the future. A checklist normally contains the positive points from the present project that your team can apply during specific stages of future projects.
• Create a top-10 risk list. A top-10 risk list contains negative points from your current project. It is an effective way to help your project team develop strategies for the elimination of similar risks in future projects.
• Prepare a formal report. You would prepare a formal report when documentation of both the positive and negative aspects of a project is required. For example, this strategy might be useful when the data requires a more thorough evaluation by senior managers.
  

Each project you manage will require the use of different strategies for gathering data and preparing this data for future project development. With a bit of foresight, you can easily determine the appropriate strategies for gathering and documenting data, and ensuring that lessons learned are applied to your future projects.

Evaluating an IT Project

To ensure your IT project is on track, and to prevent serious performance issues, you should evaluate the project at the end of each of the six project stages. Usually, the end of a stage is identified by the completion of a project deliverable. An evaluation process can help your team determine whether changes need to be made to the process or plan before moving to the next stage.

After working diligently to reach the end of each stage of the project, it is important for all team members to meet to discuss the negative and positive aspects encountered up to this point. The focus of this meeting is to evaluate the activities and variables for each particular stage in the current project's development.

For example, during the evaluation, the team may determine that the project scope has changed, the team has not been as productive as planned, or necessary tasks have been left out. These are all variables that can lead to missed deadlines.

During the evaluation of an IT project's development, it is essential to consider two main business activities. The two business activities that should be the focus of the project evaluation are described below.

1. Estimate schedule performance.
Processes that should work harmoniously together sometimes do not. Your team may find that these unforeseen circumstances can dramatically slow down development. You then have to stop and reevaluate the process. This can sometimes be very time consuming.

Your team can estimate schedule performance by comparing the schedule estimates with the actual work completed. A formula for measuring schedule efficiency is the schedule performance index (SPI).

SPI is the schedule efficiency ratio of earned value (EV) accomplished against planned value (PV). The formula is SPI = EV ÷ PV x 100. In this formula, EV answers the question, "How much work has actually been completed at this point?" PV answers the question, "How much work was scheduled to be completed by now?" To round the SPI, look at the digit to the right of the place to which you are rounding. If that digit is less than 5, round down (6.45 = 6). If that digit is equal to or more than 5, round up (6.51 = 7).

When analyzing SPI for a project, you must consider the results from the calculation. A result equal to 100 indicates that the project is performing as estimated. A result that is greater than 100 indicates that the project is performing ahead of estimates. A result of less than 100 indicates the project is behind estimates.

Managers prefer to see the schedule hit within an acceptable range, where 85 or 90 out of 100 is considered acceptable. When the result varies significantly below 100, risk analysis will be necessary.

2. Evaluate team member performance.
Another business activity to evaluate is team member performance. The wrap-up at each stage of the project is an ideal time to evaluate whether the team has met the goals of the project plan.
It's important to evaluate the performance of team members to ensure they meet completion dates for each task, as documented in the project plan. Valuable time can be lost when even one member of the team does not meet individual goals. With each task set up to flow smoothly into another, a deviance from the established plan can cause major problems.

How can you determine whether team members have met project goals? You can establish a performance expectation for each task prior to beginning the project. The completion time for each task is normally estimated using an average work week of an eight-hour day and 40 hours. The equation you can use to determine completion time for a task is: number of estimated hours for completion ÷ 8-hour day = time allowance in days.

For example, if the task is estimated at 20 hours, then it should be completed in 2.5 days (20 ÷ 8 = 2.5) to be on schedule. If a task is estimated to take 2.5 days and it actually takes three days to complete, then the task has missed the deadline. If the task is completed in less than 2.5 days, it is ahead of schedule.

Do not underestimate the importance of evaluating your project's development. An evaluation at the end of each stage of your project can prevent serious performance issues as the project progresses.

Retaining IT Project Professionals

Did you know that the average employee turnover rate in the IT sector is approximately 12.5 percent, and that it can run as high as 40 percent in the most severe cases? This high turnover rate can have an impact on the success of your IT project.

There are three main reasons why your company should implement plans to retain its IT professionals—in particular, those who work on your IT project. These three reasons are explored below.

1. IT professional shortage
Today's organizations are depending more and more on the qualified employees of their IT departments to help sustain growth and develop new products or services. Managers need to know how to acquire and retain these qualified IT employees.

With a continuing shortage of qualified IT professionals, and recruiters aggressively pursuing these individuals, it is becoming more and more important for IT managers to develop employee retention plans.

2. Project delay prevention
The loss of an IT project team member can cause serious project delays. It may take the organization months to replace the skilled employee, and then another several months to bring the new IT professional up to speed on the core aspects of the project he or she will be working on.

The loss of knowledge and experience that the IT professional brought to the organization can be especially relevant in the middle of a project. Time needed to train a replacement will put the project behind schedule, and products or services may not get delivered to customers as promised.

The time delay caused by employee loss also will negatively affect project plans, cost estimates, and deliverables. This could result in poor relations with the customer, something an organization needs to avoid.

3. Staff replacement cost
Staff replacement cost is another major factor in the quest for employee retention. The financial and psychological costs related to staff turnover can include:

• costs such as advertising, sign-on incentives, relocation, training, and recruitment fees
• daily cost of production losses for training that may take three to six months
• decreased morale and productivity of project team members due to excessive work hours while a new employee is trained.
  

With a shortage of IT professionals in today's global economy, the possibility of project delays, and the high cost of replacing employees, a plan to retain IT professionals and reduce attrition is essential to ensuring the success of your project.

Monitoring IT Project Quality

Theodore Rubin once said, "The problem is not that there are problems. The problem is expecting otherwise, and thinking that having problems is a problem."

In IT project management, you need to prepare for possible problems and implement processes that will help you determine whether your project is producing quality results. The purpose of quality in project management is to ensure that the project accomplishes what it set out to do, despite any problems that may occur.

There are a number of international organizations that provide valuable information on the use of quality standards in project management. The International Organization for Standardization (ISO), one of these organizations, defines quality as "the totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs."

There are three main processes that can help you monitor your project for quality and potential problem areas. The processes are quality planning, quality assurance, and quality control. Although these processes overlap, they each have their own particular role to fulfill in IT project management.

1. Quality planning
Quality planning is useful for identifying which quality standards are needed for the project, and ensuring those standards are achieved. In an IT project, quality planning could involve considerations for system growth, or making sure that consistent and concise information is being created.

The design of experiments is an instrument used in quality planning to determine which variables will have the most effect on the outcome of a process. You can use this instrument for determining cost and schedule trade-offs.

2. Quality assurance
The quality assurance process is used for evaluating the quality standards that have been previously identified during the quality planning process, and also at various stages throughout the project. Quality assurance will help to ensure that these standards will meet the needs of the project.

Benchmarking, an example of quality assurance, is used to determine the best ways to improve quality by doing comparisons to other projects in an attempt to meet or beat that level of quality.

3. Quality control
The quality control process is useful for observing project results to ensure they meet the standards you've set. You use the observations to improve the overall quality of the project.

The quality control process helps you determine whether products or services will be rejected or accepted. If rejected, it will be necessary to rework the product or service to meet requirements or specifications. If rejection occurs and rework is necessary, the team should make adjustments to the process to prevent future quality problems.

The Pareto Analysis/Diagram is a tool implemented during the quality control process to analyze and graphically display historical data for specific problems in a project.

Remember, by carefully implementing the quality management processes described above, your team can ensure quality in all of its IT projects.

Incorporating IT Project Deliverables

Your promise to complete a project by a particular date has fallen through. As you think back, you realize that you had no way of knowing whether or not things were progressing smoothly.
How can you ensure that you have a check process in place for your next IT project? One suggestion is to incorporate project deliverables.

Project deliverables are the final product or result of a particular phase of a project. Deliverables are ultimately passed on to another party, either professionals who will use the deliverable to begin the next phase of the project, or the customer if it is part of the final product.

When planning a project, IT professionals establish specific types of project deliverables to help determine when a stage in the process is complete. These deliverables also can help you identify whether a problem exists early in the process.

There is no limit to the number of deliverables you can incorporate into each phase of your project. The following are a few examples of the most common deliverables.
1. Organization charts. Organization charts show the breakdown of the responsibilities or duties of the individuals in each unit. These charts can include information about the sponsoring company, the customer's company if external, and the authority, responsibilities, and communication breakdown for a project.
An example of an organization chart is the organizational breakdown structure. Your company's OBS chart may include the name of the employee performing each of the roles identified on the chart.
2. Work packages. Work packages are comprised of a number of precise working documents that provide details on specific business tasks of the project. An example of this deliverable is the Statement of Work (SOW).
3. Planning documents. Planning documents are used to develop and maintain a feasible method for addressing the business needs of the project. The amount and detail of the information contained in these documents depend on the size of the project.
Work schedules and cost estimates are examples of this deliverable. Work schedules can help you determine the staff numbers and skill sets needed for the project. Cost estimates give you an approximation of the total project cost.
Remember, by incorporating deliverables into the project phases, you and you team can more effectively plan and manage your next IT project.

Components of an IT Project Plan

A project plan is an essential part of any IT project. The project plan should be sensible, current, and receive frequent reviews. It can help you organize your documents while providing guidance on how the project is to be executed and controlled.
By breaking a project into manageable sections or components, an IT manager can maintain constant control over the project. Before embarking on a project, you must ensure that your project plan clearly does the following.
1. The plan must define the objective.Your project must have a clearly defined objective. This is the first thing you must do as an IT project manager. It is important to note that the project's objective must correspond to your company's overall objectives.
There are three points to consider when developing the objective for your project. First, you need to define what the finished product will do. Second, all parties must agree with the wording of the objective. Finally, the objective has to be documented.
2. The plan must estimate scope, time, and cost. Scope, time, and cost are prime components in any project. Each of these factors can work against the others, and it is the manager's job to ensure that these competing goals work cooperatively together. This limitation is known as the triple constraint.
The scope describes the tasks that must be completed to reach the objective. The time factor identifies the length of time estimated to complete the project. The cost includes all expenditures necessary to complete the project.
3. The plan must include details on project standards.You and your team should always develop an agreed-upon set of standards for your project. Standards will help you deliver steady, high-quality products to your sponsors or customers.
4. The plan must identify agreed-upon deliverables.Deliverables can help your team determine whether all tasks within a phase have been completed effectively. Developing a schedule for the completion of deliverables also can help you monitor your project and keep it on track.
5. The plan must establish change procedures. Change in an IT project is inevitable, and you need to plan for it. Change procedures are project-defining components that enable you to set guidelines on how and when changes will be made.
As a manager, you want to ensure that your project processes run smoothly. By understanding the components of your project, you will be able to plan and manage your IT projects more effectively.

Outputs to the IT Project Phases

Think back to the last time you were in a bakery where the aroma of freshly baked bread teased your senses. Making bread may be less complicated than administering an IT project, but it follows a similar development process with inputs (ingredients), tools (oven), and outputs (a loaf of bread).

Using a recipe and the necessary tools, the baker expects outputs at each stage—a ball of dough made from various ingredients, a larger ball of raised dough, and finally a perfectly formed and delicious loaf of bread.

An IT project also produces outputs, which are known as deliverables. These outputs are the results derived from each of the IT project's six phases—planning, analysis, design, construction, testing, and rollout.

Outputs, or deliverables, can help your team keep a project on track. Well-planned outputs are also an effective way for managers, IT organizations, sponsors, and users to learn effective lessons from a project. Remember to focus on achieving benefits and objectives when determining the outputs that will be generated during each phase of your project.

There are a number of major outputs for each phase in an IT project. Not all phases have the same number of outputs, but all deliverables help you and your team achieve success with the end product. Examples of outputs for each of the six IT project phases are listed below.

Planning phase. An example of a planning phase output is the business case, which provides validation for any project decisions made. It acts as the framework for performing all evaluations and as the starting point for guiding the management of the project.

Analysis phase. An example of an analysis phase output is the requirements specification, which contains or refers to the definition and details about the data, event, and process models, as well as the project quality requirements.

Design phase. An example of a design phase output is the design document, which contains or refers to the application architecture and flows, database and user interface designs, and the workflow diagram.

Construction phase. An example of a construction phase output is a programming work unit. Programming work units lay the base for the development of project codes for testing aids and application and conversion programs. Other nonprocedural codes are also included when applicable.

Testing phase. An example of a testing phase output is the operating instructions, which can be in the form of manuals, installation procedures, or instructions for using the new system. These instructions would be accessible to all end users.

Rollout phase. An example of a rollout phase output is the post-conversion review document, which can contain specifics on the scope of the conversion process and details about any problems that have occurred during conversion.
It is important to be aware of the outputs for each phase of your project. As you move through each phase, you will begin to understand the relevance of the role of each output for the particular phase to which it belongs.
Outputs can help your team tremendously by providing direction and valuable methods of recording the processes followed throughout your project.

Three IT Project Management Tools

Every trade has its tools. As an IT project manager, what do you consider to be your "tools of the trade?"

There are three tools used by IT project managers and team members that are key to the administration of a project. These three tools are project planning software, project estimating software, and presentation tools.

1. Project planning software
Project planning software helps your team define and manage the scope of the project. Many versions of planning software are presently available for project management. You should shop around to determine the best product for the various projects your company undertakes.

Planning software is a valuable tool for creating and managing schedules like Gantt or Pert-type charts and for facilitating communication between all parties involved in the project.

2. Project estimating software
Project estimating software is useful for compiling data, producing charts, managing resources and costs, and performing analyses. Spreadsheets are a common example of estimating software.

3. Presentation tools
Presentation tools help you visually deliver progress reports, produce user manuals, and prepare final reports. The specific needs of your project will help you determine the estimating software and presentation tool you will need.

By determining your project needs ahead of time, you will be able to identify key IT project management tools that will help you and your team effectively complete your next project.

Inputs to the IT Project Phases

Have you ever heard the term "garbage in, garbage out (GIGO)"? This is a term used to describe the results you would receive if you entered insufficient or incorrect data into a computer, for example. It also applies to your IT project.

You should ensure that all of the information you use in your project is of good quality. Any project can be detrimentally affected by the use of poorly researched information.

With thorough planning, you will be better able to determine and gather the information you will need for your IT project. By documenting this information, you will have a road map for developing an effective IT project plan.

In project management, the documents or documentable items that are produced and will be acted upon are called "inputs." These documents contain all the information your team has researched to make the project run smoothly and efficiently.

There are a number of inputs to consider for each phase of an IT project. Not all phases have the same number of inputs, but all inputs are beneficial to the success of the end product. Examples of inputs for each of the six IT project phases are listed below.

Planning phase. An example of a planning phase input is the information plan, which contains an extensive description of the company's present systems and the objective of the project.

Analysis phase. An example of an analysis phase input is the conceptual design, which describes the scope, architecture, and other aspects of the new system in detail.

Design phase. An example of a design phase input is the business process prototype, which depicts the working functions of the new system or product. It also highlights crucial or problematic areas.

Construction phase. An example of a construction phase input is the design document. The design document of the construction phase can include references or details on application flow, database design, and a workflow design.

Testing phase. An example of a testing phase input is user documentation. This documentation includes user instructions and procedures that the end users will require. It also is appropriate to test the user documentation during this phase. This will help uncover and eliminate documentation errors that could result in the delivery of inappropriate instructions to the end user.

Rollout phase. An example of a rollout phase input is the current systems description. When designing a new system, it is necessary to document any changes that must be made to the old system to accommodate the new structure. These details are included in the current systems description.
By being familiar with the inputs of each phase of an IT project, you and your team can be more confident that you have given adequate consideration to all required tasks in the development of your new system or product.

The Six Phases of an IT Project

Have you ever heard the saying "putting the cart ahead of the horse?" If you wanted to move your cart forward, having the cart in front would not really help. In order to make progress, you would want to put the horse ahead of the cart.

Performing tasks in sequence is also an important aspect of IT projects. The phases of an IT project, also known as a software development lifecycle, make up the framework of an IT project. These phases, which are listed below in sequence, will help you to address the business needs of your project, and better define the activities that will occur throughout the project's entire life span.

1. Planning
First, you must look at the information technology needs of your company. These needs are determined during the planning phase of an IT project by using an information-gathering technique such as a questionnaire.

Keep in mind that the objective must address and remedy an issue or a problem within the company. Once you define the objective, you can put an action plan into place. A description of the development approach that the IT team will take and the estimation of the overall cost are factors that are determined during this phase.

2. Analysis
The analysis phase is the second phase in the software development lifecycle. This phase focuses on the functions the end system will need to perform.

Once you establish the performance needs, you will be able to develop and formalize a more detailed description of the system. The use of business, data, event, and process models during the analysis phase will ensure that both the development team and the end user are on the same track.

3. Design
The third phase of an IT project is the design phase. In it, the plan for the end system is developed. This plan should accurately define the implementation of the project without actually executing the project.

4. Construction
During the fourth phase of the project, the IT team actually constructs the project or system. In this construction phase, the team uses a process map that identifies the procedures that need to be completed to duplicate the agreed-upon plan.

5. Testing
The testing phase is possibly the most critical of all the IT project phases. It is in this phase that the team determines which tests to implement to ensure that the system being produced will be of the highest quality.

6. Rollout
The final phase in an IT project is rollout. It is during this phase that the team begins the activities for releasing the finished product to the end user. Planning for the rollout activities can help the process progress more smoothly.

For example, if another system is already in place, your team will need to thoroughly review the conversion process to ensure the smooth transition from the previous system to the new one.

Every organization should have a structure in place to deal with processes, principles, and guidelines for every IT project. The phases described above can provide a useful framework for the effective development and completion of your next IT project.

Key Attributes of an IT Project

Lawrence J. Peter once said, "If you don't know where you're going, you will probably end up somewhere else." This is particularly true of an IT project. To ensure the success of your IT project, you need to map out and follow an effective process.

Where do you start? Perhaps the best place to begin is to look at the concept of an IT project. The Project Management Body of Knowledge (PMBOK) is a good source for information on project management in general. PMBOK describes a project as "a temporary endeavor undertaken to create a unique product, service, or result."

Every IT project has five key attributes that play particular roles in project development and completion. Details about these key project attributes are provided below.

1. Purpose
There must be a purpose to justify the need for a project. Many ideas for projects can be discovered through company surveys or questionnaires aimed at determining needs.

For example, in an e-learning corporation, a survey identified a need in the course development department for a program to log and maintain course status records. This will be the purpose of the corporation's next IT project.

2. Length
As noted above, PMBOK describes a project as "a temporary endeavor." In other words, an IT project has set beginning and end dates.

The length of the project will depend on its complexity. For example, a short-term project might be developing a report on a company's needs. A long-term project might be the creation of a database for collecting and generating statistics.

3. Resources
Resources for an IT project can include skilled employees from inside or outside of the company, hardware, software, and other assets as deemed necessary.

4. Sponsors
There may be many interested parties who have a stake in a project, but there is usually only one main sponsor. This main sponsor provides the needed direction and financing for the project.

Non-financial sponsors may be acquired if the project incorporates many departments within a company. For example, if the product of a project will be used by the accounting and human resources departments, it may be necessary to ask experts from each department to provide input to ensure departmental needs are considered.

5. Uncertainty
Every project will face uncertainty. Anything can go wrong. Although efforts should be made to ensure that the IT project plan is concise, factors such as time and cost can change due to unforeseen circumstances.

Key attributes are an important aspect of every project. Keeping these attributes in mind throughout the project can help you and your team meet established goals.

Project Management Artifacts

Most projects, to be successful, must adequately document objectives and deliverables. These documents are a mechanism to align sponsors, clients, and project team's expectations.

1. Project Charter
2. Business Case / Feasibility Study
3. Scope Statement / Terms of Reference
4. Project Management Plan / Project Initiation Document
5. Work Breakdown Structure
6. Change Control Plan
7. Risk Management Plan
8. Communications Plan
9. Governance Model
10. Risk Register
11. Issue Log
12. Action Item List
13. Resource Management Plan
14. Project Schedule
15. Status Report
16. Responsibility Assignment Matrix
17. Database of Risks
18. Database of Lessons Learned
19. Stakeholder Analysis
    

These documents are normally hosted on a shared resource (i.e., Intranet web page) and are available for review by the project's stakeholders. Changes or updates to these documents are explicitly outlined in the project's configuration management (or change control plan).

Project Objectives

Project objectives define target status at the end of the project, reaching of which is considered necessary for the achievement of planned benefits. They have to be formulated as S.M.A.R.T.

• Specific, with
• Measurable (or at least evaluable) achievement,
• Achievable (recently Acceptable is used regularly as well),
• Realistic and
• Time terminated(bounded).

The evaluation (measurement) occurs at the project closure. However a continuous guardance on the project progress should be kept by monitoring and evaluating.

Project Management Activities

Project Management is composed of several different types of activities such as:

1. Planning the work or objectives
2. Analysis & Design of objectives
3. Assessing and controlling risk (or Risk Management)
4. Estimating resources
   
5. Allocation of resources
6. Organizing the work
7. Acquiring human and material resources
8. Assigning tasks
9. Directing activities
10. Controlling project execution
11. Tracking and Reporting progress
12. Analyzing the results based on the facts achieved
13. Defining the products of the project
14. Forecasting future trends in the project
15. Quality Management
    
16. Issues Management
17. Issues solving
18. Defect prevention
19. Project Closure meet
20. Communicating to stakeholders

Project Manager

Project management is quite often the province and responsibility of an individual project manager. This individual seldom participates directly in the activities that produce the end result, but rather strives to maintain the progress and productive mutual interaction of various parties in such a way that overall risk of failure is reduced.

A project manager is often a client representative and has to determine and implement the exact needs of the client, based on knowledge of the firm he/she is representing. The ability to adapt to the various internal procedures of the contracting party, and to form close links with the nominated representatives, is essential in ensuring that the key issues of cost, time, quality, and above all, client satisfaction, can be realized.
In whatever field, a successful project manager must be able to envisage the entire project from start to finish and to have the ability to ensure that this vision is realized.

Any type of product or service —buildings, vehicles, electronics, computer software, financial services, etc.— may have its implementation overseen by a project manager and its operations by a product manager.

Project Management Constraints

Like any human undertaking, projects need to be performed and delivered under certain constraints. Traditionally, these constraints have been listed as scope, time, and cost. These are also referred to as the Project Management Triangle, where each side represents a constraint. One side of the triangle cannot be changed without impacting the others. A further refinement of the constraints separates product 'quality' or 'performance' from scope, and turns quality into a fourth constraint.

The time constraint refers to the amount of time available to complete a project. The cost constraint refers to the budgeted amount available for the project. The scope constraint refers to what must be done to produce the project's end result. These three constraints are often competing constraints: increased scope typically means increased time and increased cost, a tight time constraint could mean increased costs and reduced scope, and a tight budget could mean increased time and reduced scope.

The discipline of project management is about providing the tools and techniques that enable the project team (not just the project manager) to organize their work to meet these constraints.
Another approach to project management is to consider the three constraints as finance, time and human resources. If you need to finish a job in a shorter time, you can throw more people at the problem, which in turn will raise the cost of the project, unless by doing this task quicker we will reduce costs elsewhere in the project by an equal amount.

Time

For analytical purposes, the time required to produce a deliverable is estimated using several techniques. One method is to identify tasks needed to produce the deliverables documented in a work breakdown structure or WBS. The work effort for each task is estimated and those estimates are rolled up into the final deliverable estimate.
The tasks are also prioritized, dependencies between tasks are identified, and this information is documented in a project schedule. The dependencies between the tasks can affect the length of the overall project (dependency constrained), as can the availability of resources (resource constrained). Time is not considered a cost nor a resource since the project manager cannot control the rate at which it is expended. This makes it different from all other resources and cost categories.

Cost

Cost to develop a project depends on several variables including (chiefly): labor rates, material rates, risk management, plant (buildings, machines, etc.), equipment, and profit. When hiring an independent consultant for a project, cost will typically be determined by the consultant's or firm's per diem rate multiplied by an estimated quantity for completion.

Scope

Requirements specified for the end result. The overall definition of what the project is supposed to accomplish, and a specific description of what the end result should be or accomplish. A major component of scope is the quality of the final product. The amount of time put into individual tasks determines the overall quality of the project. Some tasks may require a given amount of time to complete adequately, but given more time could be completed exceptionally. Over the course of a large project, quality can have a significant impact on time and cost (or vice versa).

Together, these three constraints have given rise to the phrase "On Time, On Spec, On Budget". In this case, the term "scope" is substituted with "spec(ification)".

History of Project Management

As a discipline, Project Management developed from different fields of application including construction, engineering, and defense. In the United States, the forefather of project management is Hendy Gantt, called the father of planning and control techniques, who is famously known for his use of the "bar" chart as a project management tool, for being an associate of Frederict Winslow Taylor's theories of scientific management, and for his study of the work and management of Navy ship building. His work is the forerunner to many modern project management tools including the work breakdown structure (WBS) and resource allocation.

The 1950s marked the beginning of the modern project management era. Again, in the United States, prior to the 1950s, projects were managed on an ad hoc basis using mostly Gantt Charts, and informal techniques and tools. At that time, two mathematical project scheduling models were developed: (1) the "Program Evaluation and Review Technique" or PERT, developed by Booz-Allen & Hamilton as part of the United States Navy's (in conjunction with the Lockheed Corporation) Polaris missile submarine program; and (2) the "Critical Path Method" (CPM) developed in a joint venture by both DuPont Corporation and Remington Rand Corporation for managing plant maintenance projects. These mathematical techniques quickly spread into many private enterprises.

In 1969, the Project Management Institute (PMI) was formed to serve the interest of the project management industry. The premise of PMI is that the tools and techniques of project management are common even among the widespread application of projects from the software industry to the construction industry. In 1981, the PMI Board of Directors authorized the development of what has become the A Guide to the Project Management Body of Knowledge (PMBOK), containing the standards and guidelines of practice that are widely used throughout the profession. The International Project Management Association (IPMA), founded in Europe in 1967, has undergone a similar development and instituted the IPMA Project Baseline. Both organizations are now participating in the development of a global project management standard.

IT Project Management

Project Management is the discipline of organizing and managing resources (i.e. people) in such a way that the project is completed within defined scope, quality, time and cost constraints. A project is a temporary and one-time endeavor undertaken to create a unique product or service, which brings about beneficial change or added value. This property of being a temporary and a one-time undertaking contrasts with processes, or operations, which are permanent or semi-permanent ongoing functional work to create the same product or service over and over again. The management of these two systems is often very different and requires varying technical skills and philosophy, hence requiring the development of project management.

The first challenge of project management is to ensure that a project is delivered within defined constraints. The second, more ambitious challenge is the optimized allocation and integration of inputs needed to meet pre-defined objectives. A project is a carefully defined set of activities that use resources (money, people, materials, energy, space, provisions, communication, quality, risk, etc.) to meet the pre-defined objectives.

IT Project Management is a sub-discipline of Project Management in which software projects are planned, monitored and controlled.