CHAPTER 4 – SOFTWARE PROJECT PLANNING (PART II)

This chapter discuss planning quality, human resource, communications, risk,

procurement, and stakeholder management.

PROJECT QUALITY MANAGEMENT

Project quality management ensures that the project will satisfy the stated or implied
needs for which it was undertaken. Key outputs produced as part of project quality
management planning include:
1. quality management plan
2. quality metrics
3. quality checklists

The International Organization for Standardization (ISO) defines quality as “the degree to
which a set of inherent characteristics fulfill requirements” (ISO9000:2000). Other experts
define quality based on conformance to requirements and fitness for use. Conformance
to requirements means that the project’s processes and products meet written
specifications. Fitness for use, on the other hand, means that a product can be used as it
was intended.

Recall that project management involves meeting or exceeding stakeholder needs and
expectations. To understand what quality means to the stakeholders, the project team
must develop good relationships with them especially the main customer for the project.
After all, the customer ultimately decides that the quality level is acceptable. Many
projects fail because the project team focuses only on meeting the written requirements
for the main products being produced and ignores other stakeholder needs and
expectations for the project.

Quality, therefore, must be considered on an equal level of importance with project scope,
time, and cost. If a project’s stakeholders are not satisfied with the quality of the project
management or the resulting products or services, the project team will need to adjust
scope, time, and cost to satisfy stakeholder needs and expectations. Meeting only written
requirements for scope, time, and cost is not sufficient.

1. Planning Quality Management

Quality planning includes identifying which quality standards are relevant to the project
and how best to satisfy those standards. It also involves designing quality into the
products and services of the project as well as the processes involved in managing the
project. It is important to describe important factors that directly contribute to meeting
customer requirements. The project management plan, stakeholder register, risk register,
requirements documentation, enterprise environmental factors, and organizational process
assets (i.e. policies related to quality and related standards and regulations) are all
important inputs to the quality planning process.

The quality management plan describes how the project management team will
implement quality policies. Like other project plans, its format and contents vary based on
the particular project and organizational needs. It can be a long, formal document or short
and informal. Some project teams also create a process improvement plan as an output of
planning quality management. As the name implies, a process improvement plan describes
how to analyze processes in order to identify specific activities that can enhance their
value. For example, the plan might describe the current process for selecting suppliers and
suggest how to improve that process to make it more efficient.

2. Quality Metrics

A metric is a standard of measurement. Metrics allow organizations to measure their

performance in certain areas and to compare them over time or with other organizations.
Examples of common metrics used by organizations include failure rates of products
produced, availability of goods and services, and customer satisfaction ratings. Individual
projects also have metrics. Before deciding on the metrics to use for a particular project, it
is important to clarify the project goals, business case for the project, and success criteria.
Knowing this information, you can then decide what data will give you the information you
need, and how to collect it.
3. Quality Checklists

A checklist is a list of items to be noted or consulted. Checklists help project teams verify
that a set of required topics or steps has been covered or performed. A single project can
have many different checklists. For example, there can be checklists related to
interviewing project team members, selecting suppliers, reviewing important documents,
ensuring a room is ready for training, and so on.

PROJECT HUMAN RESOURCE MANAGEMENT

Many corporate executives have said, “People are our most important asset.” People
determine the success and failure of organizations and projects. Project human resource
management is concerned with making effective use of the people involved with a project.
The main output produced as part of project human resource management planning is:
• a human resource plan (includes a project organizational chart)
• a responsibility assignment matrix
• a resource histogram
• a staffing management plan.

1. Human Resource Plan (Project Organizational Charts)

After identifying the important skills and types of people needed to staff a project, the
project manager should work with top management and project team members to create
an organizational chart for the project. Similar to a company’s organizational chart, a
project organizational chart is a graphical representation of how authority and
responsibility is distributed within the project. The size and complexity of the project
determines how simple or complex the organizational chart is.

2. Responsibility Assignment Matrices

A responsibility assignment matrix (RAM) is a matrix that maps the work of the project as
described in the work breakdown structure (WBS) to the people responsible for
performing the work. A RAM allocates work to responsible and performing organizations,
teams, or individuals, depending on the desired level of detail. For smaller projects, it is
best to assign WBS activities to individuals. For larger projects, it is more effective to
assign the work to organizational units or teams. In addition to using a RAM to assign
detailed work activities, you can use a RAM to define general roles and responsibilities on
projects. This type of RAM can include the stakeholders in the project. The project team
should decide what to use as categories in the RAM and include a key to explain those
categories. For example, a RAM can show whether stakeholders are accountable for (A) or
just participants (P) in part of a project, and whether they are required to provide input
(I), review (R), or sign off (S) on parts of a project. This simple tool enables the project
manager to efficiently communicate the roles of project team members and expectations
of important project stakeholders.

3. Resource Histograms

A resource histogram is a column chart that shows the number of resources required for
or assigned to a project over time. In planning project staffing needs, senior managers
often create a resource histogram in which columns represent the number of people (or
person hours, if preferred) needed in each skill category, such as managers, IT specialists,
and HR specialists. By stacking the columns, you can see the total number of people
needed each month. After resources are assigned to a project, you can view a resource
histogram for each person to see how his or her time has been allocated. You can create
resource histograms using spreadsheets or project management software.

4. Staffing Management Plans

A staffing management plan describes when and how people will be added to and
removed from a project. The level of detail can vary based on the type of project. The
staffing management plan describes the number of and types of people needed to work
on the project. It also describes how these resources will be acquired, trained, rewarded,
and reassigned after their work on the project is completed. All these considerations are
important to meeting the needs of the project, the employees, and the organization.
PROJECT COMMUNICATIONS MANAGEMENT

Many experts agree that the greatest threat to the success of any project is a failure to
communicate. It is often said that project managers spend 90% of time communicating.
Yet many project managers fail to take the time to plan for it. Even though having a
communications management plan does not guarantee that all project communications
will flow smoothly, it certainly helps.

Communications Management Plans

Because project communication is so important, every project should include a

communications management plan—a document that guides project communications. The
communications management plan will vary with the needs of the project, but some type
of written plan should always be prepared and updated as needed. The communications
management plan should address the following items:
• Stakeholder communications requirements
• Information to be communicated, format, content, and level of detail
• Identification of who will receive the information and who will produce it
• Suggested methods or guidelines for conveying the information
• Description of the frequency of communication
• Escalation procedures for resolving issues
• Revision procedures for updating the communications management plan
• A glossary of common terminology used on the project

1. Stakeholder Communications Requirements

Because this project involves many people from all over the company as well as outside
suppliers, the project team will use surveys, interviews, checklists, and other tools and
techniques to determine the communications requirements for various stakeholders.
Employees will have specific communications needs in that several training programs are
being totally changed, and they will likely be uncomfortable with those changes. Suppliers
will have communications needs to ensure that they are developing courses that will meet
our organization’s needs. Internal experts providing content will have communications
needs related to providing useful information and products.

2. Communications Summary
The following table summarizes various stakeholders, communications required, the
delivery method or format of the communications, who will produce the communications,
and when it will be distributed or the frequency of distribution. All communications
produced will be archived and available on the project web site. As more communications
items are defined, they will be added to this list. The project team will use various
templates and checklists to enhance communications. The team will also be careful to use
the appropriate medium (that is, face-to-face meeting, phone, e-mail, web site, and so on)
and follow corporate guidelines for effective communications. Note the
comments/guidelines as well.

3. Guidelines
• Make sure people understand your communications. Use common sense techniques
to check comprehension, such as having them explain what you mean in their own
words. Don’t overuse/misuse e-mail or other technologies. Short meetings or phone
calls can be very effective.
• Use templates as much as possible for written project communications. The project
web site includes a link to all project-related templates.
• Use the titles and dates of documents in e-mail headings and have recipients
acknowledge receipt.
• Prepare and post meeting minutes within 24 hours of a meeting.
• Use checklists where appropriate, such as reviewing product requirements and
conducting interviews.
• Use corporate facilitators for important meetings, such as kick-off meetings and
supplier negotiations.

4. Escalation Procedures for Resolving Issues

Issues should be resolved at the lowest level possible. When they cannot be resolved,
affected parties should alert their immediate supervisors of the issues. If it is critical to the
project or extremely time-sensitive, the issue should be brought directly to the project
manager. If the project manager cannot resolve an issue, he or she should bring it to the
project steering committee or appropriate senior management, as required.

5. Revision
Procedures for this Document Revisions to this plan will be approved by the project
manager. The revision number and date will be clearly marked at the top of the
document.

PROJECT STAKEHOLDER MANAGEMENT

Project stakeholder management planning involves determining strategies to effectively

engage stakeholders in project decisions and activities based on their needs, interests, and
potential impact. Outputs of this process are a stakeholder management plan and project
documents updates.

Stakeholder Management Plans

After identifying and analyzing stakeholders, the project manager and team should
develop a stakeholder management plan to guide them in effectively engaging
stakeholders to make sure good decision are made throughout the life of the project. This
plan may be formal or informal, based on the needs of the project.

In addition to information found in the stakeholder register (i.e. stakeholder identification

information, assessment information, and classification) a stakeholder management plan
can include the following:
• Current and desired engagement levels
• Interrelationships between stakeholders
• Communication requirements
• Potential management strategies for each stakeholder
• Methods for updating the stakeholder management plan

Because a stakeholder management plan often includes sensitive information, it should

not be part of the official project documents, which are normally available for all
stakeholders to review. Often only project managers and a few other team members
prepare the stakeholder management plan. In many cases, parts of the stakeholder
management plan are not even written down, and if they are, distribution is strictly
limited.

PROJECT PROCUREMENT MANAGEMENT

Project procurement management includes acquiring or procuring goods and services for a
project from outside the organization. As the business world continues to become more
competitive and global, more and more projects include procurement. Many project
managers realize the advantages of buying goods and services required for their projects,
especially as sellers with better goods and services continue to become increasingly
available. They also realize that they can find qualified sellers throughout the world.
Remember that project managers strive to do what is best for the project and the
organization, and that often means acquiring goods and services from the outside. Good
procurement management often provides a win-win situation for both buyers and sellers.
Key outputs produced by planning procurements include:
1. make-or-buy decisions
2. procurement management plans
3. procurement statements of work
4. procurement documents
5. source selection criteria
6. change requests

1. Make-or-Buy Decisions

With a make-or-buy decision, an organization decides if it would benefit more by making a

product or performing a service itself, or by buying the product or service from a supplier.
If there is no need to buy products or services from outside the organization, the
organization can avoid the costs involved in managing procurement management
processes. Make-or-buy analysis involves estimating the internal costs of providing a
product or service, and comparing that estimate to the cost of outsourcing.
2. Procurement Management Plans

A procurement management plan is a document that describes how the procurement

processes will be managed, from developing documentation for making outside purchases
or acquisitions to contract closure. Like other project plans, the contents of procurement
management plans vary with project needs. Topics that can be included in a procurement
management plan are as follows:
• Guidelines on types of contracts to be used in different situations
• Standard procurement documents or templates to be used, if applicable
• Guidelines for creating contract work breakdown structures, statements of work,
and other procurement documents
• Roles and responsibilities of the project team and related departments, such as the
purchasing or legal department
• Guidelines on using independent estimates for evaluating sellers’ cost proposals
• Suggestions on managing multiple providers
• Processes for coordinating procurement decisions, such as make-or-buy decisions,
with other project areas
• Constraints and assumptions related to purchases and acquisitions Lead times for
purchases and acquisitions
• Risk-mitigation strategies for purchases and acquisitions, such as insurance
contracts and bonds
• Guidelines for identifying pre-qualified sellers and organizational lists of preferred
sellers
• Procurement metrics to assist in evaluating sellers and managing contracts

Types of Contracts

Contract type is a key consideration in a procurement management plan. Different types

of contracts can be used in different situations. Three broad categories of contracts are
fixed price, or lump sum; cost reimbursable; and time and material. A single contract can
actually include all three of these categories, if it makes sense for that particular
procurement. For example, you could have a contract with a seller that includes
purchasing specific products for a fixed price or lump sum, some services that are
provided on a cost reimbursable basis, and other services that are provided on a time and-
material basis. It is important to understand and decide which approaches to use to meet
particular project needs.

Fixed-price contracts or lump-sum contracts involve a fixed total price for a well-
defined product or service. The buyer incurs little risk or uncertainty in this situation
because the price is predetermined. Sellers often pad their estimates somewhat to reduce
their risk, while keeping in mind that their price must still be competitive.

Cost-reimbursable contracts involve payment to the seller for direct and indirect actual
costs.
Time-and-material contracts are a hybrid of both fixed-price and cost-reimbursable
contracts.

Unit pricing can also be used in various types of contracts to require the buyer to pay
the supplier a predetermined amount per unit of service. The total value of the contract is
a function of the quantities needed to complete the work.

3. Contract Statements of Work (SOW)

Another important procurement document is a contract statement of work (SOW), a

document that describes the goods or services to be purchased. The contract SOW is a
type of scope statement that describes the work in sufficient detail to allow prospective
suppliers to both determine if they are capable of providing the goods and services
required and to determine an appropriate price for the work. A contract SOW should be
clear, concise, and as complete as possible. It should describe all services required and
include performance information, such as the location and timing of the work . It is
important to use appropriate words in a contract SOW— for example, must instead of
may. Must implies that something has to be done; may implies that there is a choice
involved. The contract SOW should specify the products and services required for the
project, use industry terms, and refer to industry standards.
4. Procurements Documents: Requests for Proposals or Quotes

When organizations decide to procure goods or services, they often create documents to
describe what they plan to procure and how potential sellers should respond. Two
common examples of procurement documents include a Request for Proposal (RFP) and a
Request for Quote (RFQ).

A Request for Proposal (RFP) is a document used to solicit proposals from prospective
suppliers. A proposal is a document in which sellers describe what they will do to meet
the requirements of a buyer. It can be expensive and time- consuming to prepare a good
RFP or proposal for a large contract, such as building a new bridge or designing a complex
information system. For smaller contracts, it would take less time and money.

A Request for Quote (RFQ) is a document used to solicit quotes or bids from
prospective suppliers. A bid (also called a quote) is a document prepared by sellers
providing pricing for standard items that have been clearly defined by the buyer. Creating
and responding to RFQs is usually a much quicker process than the process of responding
to RFPs. Selections are often made based on the lowest bid.

RFPs and RFQs can be issued in several ways. The organization might contact one or
several preferred sellers directly and send the RFP or RFQ only to them. To reach more
sellers, the organization might post the information on its Web site, or advertise on other
sites or in newspapers. Project managers must carefully consider which approaches are
most appropriate in various situations.

5. Source Selection Criteria and the Supplier Evaluation Matrices

It is highly recommended that buyers use formal supplier evaluation procedures to help
select sellers. In addition to reviewing their proposals or quotes, buyers should also review
sellers’ past performance, talk to recent customers, interview their management team, and
request sample products or demos, if applicable. After doing a thorough evaluation, many
organizations summarize criteria and evaluations using a supplier evaluation matrix—a
type of weighted scoring model. For example, suppliers are often evaluated on criteria
related to cost, quality, technology, past performance, and management. The weights for
all of the criteria must add up to 100%.

Project Risk management discussed in chapter 7