Institute of Engineering & Management

Software Project
Management
~Assignment
Faculty:
Santanu Mukherjee

Sagnik Biswas
Roll No. 27; Sec B
Minor: Systems
Software Management(SM-404) Home Assignment

2
nd
Term Full Marks: 40
IEM MBA 2
nd
Year Page 2
Answer the following questions. All question carry equal marks:

1. Time Management

a. Explain the concept of Critical Path Method and its components.
How does CPM help Project Manager to develop a project
schedule

The Critical Path Method or Critical Path Analysis is a mathematically
based algorithm for scheduling a set of project activities. It is an important
tool for effective project management. It is commonly used with all forms of
projects, including construction, software development, research projects,
product development, engineering, and plant maintenance, among others.
Any project with interdependent activities can apply this method of
scheduling.
Components:-
A list of all activities required to complete the project (also known as
Work Breakdown Structure).
The time (duration) that each activity will take to complete.
The dependencies between the activities.

Each activity is represented as a node on the network, and connecting
lines are drawn to represent the time schedule to complete that activity.
Four parameters of each activity of the network are:-
Earliest start time (ES) = The earliest time an activity can start once the
previous dependent activities are over.
Earliest finish time (EF) = ES + activity duration.
Latest finish time (LF) = The latest time an activity can finish without
delaying the project.
Latest start time (LS) = LF - activity duration.
The float time for an activity is the time between the earliest (ES) and the
latest (LS) start time or between the earliest (EF) and latest (LF) finish
times.

CPM helps Project Manager to develop a project schedule in the
following ways-

It helps reduce project duration.
It helps reduce project costs.
It helps improve project efficiency.
It helps define multiple & critical paths.
It helps schedule, monitor and control projects.
It helps in organizing large projects.
It helps determine slack and float time.
It reveals all the dependencies in the organization.
Software Management(SM-404) Home Assignment

2
nd
Term Full Marks: 40
IEM MBA 2
nd
Year Page 3

b. Consider the following table to answer the follow up questions:

Activity Preceding Activity Estimate
in Month
Start 0
D Start 4
A Start 6
F D, A 7
E D 8
G F, E 5
B F 5
H G 7
C H 8
End C, B 0
What is the duration of the critical path?
What is the float of activity B?
What is the float of activity E?
What is the float of activity D?
To shorten the length of the project, the sponsored has offered to
remove the work of activity E from the project, making D the
predecessor of activity G and F. What will be the effect?


Software Management(SM-404) Home Assignment

2
nd
Term Full Marks: 40
IEM MBA 2
nd
Year Page 4
2. Cost Management

a. Explain in detail the budget determination process in a software project
management situation

Planning, Scheduling, and Budgeting
The second section includes 10 guidelines that cover the basic requirements for
planning, scheduling, and establishing the time phased budgets for the tasks. The
integrated master schedule is the projects road map to meet contract objectives. This
schedule must be resource loaded to determine the budget for the work as scheduled.
The resource loaded schedule is the basis for the monthly budget, or BCWS, for each
task and thus the project. This time phased budget is the performance measurement
baseline (PMB). The total budget for each task, control account, or the entire project is
defined as the budget at complete (BAC).
Because most projects are initiated with some level of uncertainty; i.e. risk, project
managers typically set aside a portion of the total project value as a management
reserve (MR). MR added to the BAC equals the total project budgeted value, defined as
the contract budget base (CBB). This is illustrated below.

Establishing the baseline an Iterative, three step process
All of the budgets on any project should be logged for successful baseline control.
Occasionally contracted tasks may be temporarily held in abeyance, not yet authorized
Software Management(SM-404) Home Assignment

2
nd
Term Full Marks: 40
IEM MBA 2
nd
Year Page 5
to a manager. When the project manager has yet to assign tasks and budgets to the
CAMs, such as an authorized, not yet negotiated additional work, the task and its budget
can be retained in undistributed budget (UB). These budget assignments, the WBS, and
the functional organizational identity of the managers can be captured in a matrix as
illustrated below.

Budget summary matrix
A very important aspect of the planning and budgeting process is to determine how
BCWP will be assessed. This determination begins with classifying work tasks as one of
three types: discrete, apportioned effort, or level of effort (LOE). From this initial
classification, for each discrete work effort work package, the CAM selects an earned
value technique such as milestones, 50/50, 0/100, or percent complete.
It must be stressed that work only begins when there is formal work authorization to
proceed. This requirement is a disciplined approach to clearly define work, schedule,
and budget before work commences and actual costs begin to accrue. The principles of
EVM are quite clear in this regard.

Software Management(SM-404) Home Assignment

2
nd
Term Full Marks: 40
IEM MBA 2
nd
Year Page 6
b. What do you understand by Earn Value Management? What are
the basic advantages of using EVM for project performance
management?

Earned value management is a project management technique for
measuring project performance and progress. It has the ability to combine
measurements of:
Scope
Schedule, and
Costs
In a single integrated system, Earned Value Management is able to provide
accurate forecasts of project performance problems, which is an important
contribution for project management.
The objectives of an EVM are to:
Relate time phased budgets to specific contract tasks and/or statements
of work.
Provide the basis to capture work progress assessments against the
baseline plan.
Relate technical, schedule, and cost performance.
Provide valid, timely, and auditable data/information for proactive
management action.
Supply managers with a practical level of summarization for effective
decision making.

Earned Value Management Advantages

1) As EVA is done periodically, management tries to make sure that all the project
parameters are on track.
2) It is probably the only system used at present which tracks the project in terms of
work, time and money.
3) Timely performance measurement makes sure that steps can be taken to the
bring project back on track before its too late.

Software Management(SM-404) Home Assignment

2
nd
Term Full Marks: 40
IEM MBA 2
nd
Year Page 7
c. Your project is running well. In the latest earn value report, you
see the CPI = 1.2, the SPI = 0.8, the PV = $600,000, and SV = -
$120,000. You cant find the CV in the report, so you calculate it
based on the information given. What is the CV?

Cost Performance Index (CPI) = 1.2
Schedule Performance Index (SPI) = 0.8
Planned Value (PV) = $ 6, 00, 000
Schedule Variance (SV) = -$ 1, 20, 000
Cost Variance (CV) measures how project is performing; productivity
measure. CV = EV AC (Positive Efficient, Negative Inefficient)
We know,
SV = EV PV, SPI = EV/PV
Therefore,
EV = SV + PV or EV = SPI * PV
EV = -$ 1, 20, 000 + $ 6, 00, 000 or EV = 0.8 * $ 6, 00, 000
EV = $ 4, 80, 000 in both the cases

Again,
CPI = EV/ AC
Therefore,
AC = EV / CPI
AC = $ 6, 00, 000 / 1.2 = $ 4, 00, 000

So,
Cost Variance (CV) = EV AC = $ (4, 80,000 4, 00,000) = $ 80, 000 (Ans.)

Software Management(SM-404) Home Assignment

2
nd
Term Full Marks: 40
IEM MBA 2
nd
Year Page 8
3. Quality Management
a. Explain the following Quality Control Tools with appropriate
examples
i. Cause and Effect Diagram
ii. Histogram
iii. Pereto Chart
iv. Run Chart
v. Scatter Diagram
vi. Control Chart


Cause and Effect Diagram
Helps the PM to look backwards at what has contributed to quality problems in
the project


Histogram
Displays data in the form of bars or columns.
Shows what problems are worth dealing with.


Software Management(SM-404) Home Assignment

2
nd
Term Full Marks: 40
IEM MBA 2
nd
Year Page 9
Pareto Chart
Pareto chart is a type of histogram
It arranges results from most frequent to less frequent to identify which root
causes resulting into most problems.


Run Chart
To look at history and see a pattern of variation
Provide trends


Scatter Diagram
Tracks two variables to see if they are related



Software Management(SM-404) Home Assignment

2
nd
Term Full Marks: 40
IEM MBA 2
nd
Year Page 10
Control Charts
Are set up during Plan Quality Process as part of the effort to determine what
will be the quality of the project.
They are utilized Perform Quality Control to help PM determine if a process is
within acceptable limits.
Example:
Manufacturing of doors.
Control charts help identify if door samples measurement are within the specified range.

Control charts can also be used to monitor project performance figures such as
cost and schedule variables.
Most commonly control charts are used to monitor production and other
processes to see if the processes are within acceptable limits.

Control Charts Upper and Lower Limits
These limits are acceptable range of variation of a process.
They are often shown as two dashed lines on a control chart.
The acceptable range of measurements between upper and lower control limits
is set by the PM and Stakeholders based on the organizations quality standards.
Normally the range is calculated based on +/- 3 sigma or standard deviations.
Data points within the ranges are considered within control.

Example: Control limits for delivery of a work packet