accelerated implementation approach of project management processes in smes electronic resourceluis...

8/11/2019 Accelerated Implementation Approach of Project Management Processes in SMEs Electronic ResourceLuis Cabezas

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2010 L. Cabezas Castillo, A. de Amescua Seco, D. M. Vsquez B 1

Originally published as part of Proceedings PMI Global Congress 2010 Milan, Italy

Accelerated Implementation Approach of Project Management Processes in SMEs

Lus Cabezas Castillo, Antonio de Amescua Seco, Diana M. Vsquez B

Carlos III Madrid University

Abstract

Effective Project Management is very important for those SMEs that want to compete with other

companies in the global market. Those SMEs working with projects could gain competitive advantage

using Earned Value Management (EVM) technique. Nevertheless the SMEs cannot afford to spend a lot

of time and money in the process of implementing this technique in their companies. It is shown here an

accelerated approach that could help in the implementation of the EVM technique in Small Settings. This

is achieved integrating the IDEAL (McFeeley, 1996) model cycle, and practices recommended for EVM

implementation by the PMI in their standards (PMI, 2008) (PMI, 2005). As recommended by CMMI level

3 (defined process) it has identified phases, activities, roles, inputs and outputs, work products and

measurements needed to carry out the implementation. The resulting steps have been simplified taking

into consideration the Small Setting constraints. The process has been validated through case studies and

surveys in four projects of two very different organizations, measuring different parameters related toprocess improvement. A defined process (with reduced complexity) and PMO are key factors that help

reducing EVM implementation money an time.

IntroductionThe objective

Earned Value Management (EVM) has proven itself to be one of the most effective performance

measurement and feedback tools for managing projects (PMI, 2005). EVM usage at a global level shows

a relatively slow, but steady growth, both in the public and private sectors. A higher growth could be

expected, given the simplicity of the theoretical base and the benefits it produces. It is important to note

that EVM is a technique recommended by the most authorised management practitioners in the world and

by prestigious institutions as the PMI, Project Management Institute.

Some of the processes important to improve are those related with Project Management.A Guide to the

Project Management Body of Knowledge (PMBOK Guide) 4th Edition (PMI, 2008) points out 42

processes distributed in a matrix of five process groups and nine knowledge areas. Every process has

inputs, tolls and techniques, and outputs. Perhaps the most important tool and technique is EVM (PMI,

2005), Earned Value Management, as it requires to perform a good deal of the best practices

recommended. This has been the reason for choosing the implementation of EVM as objective for the

experimentation.

Organization of the paper: First there is a definition of some terms used. It continues with a description of

the experimentation method used, the case studies and the survey. Finally there is a resume of

conclusions. The experience is carried out under the scope of Software Process Improvement for SmallSettings in the University Carlos III of Madrid.

The Small Settings picture

In this work it has been adopted the ESI (SEI, 2006) definition for Small Setting. It considers as such:

small businesses with fewer than 100 people


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small organizations, within a larger organization, with fewer than 50 people

small projects with fewer than 20 people

Think small first

How Do You Eat An Elephant? One Bite at a Time (Hogan, 2000), or as one International Process

Research Consortium - IPRC sponsor put it, "all improvement happens through small groups."

Both the implementation cost and time of actual SPI CMMI, Project Management processes, or just

EVM, are hard items to be handled by most companies in southern Europe, especially when referring to

the Small Settings.

Carlos III University of Madrid is deeply involved in Software Process Improvement, working in close

collaboration with leading SPI Spanish companies like Zonnect Redes de Ingeniera (www.zonnect.com).

The objective of this research is to apply proven methodologies for the small setting, as part of an overall

strategy that finally helps also the big ones: Think small first, eat an elephant one bite at a time.

The orientation of Carlos III research in this field is taken from:

The policy of the EU through the Framework Programs that deeply promotes R&D in SMEs.

The recommendation and results of the SEI IPRC Project Charter that is promoting the

Improvement of Processes in Small Settings (IPSS), planned to start October 1, 2006.

The best practices recommended by the PMI set of standards.

The accumulated experience and results of the research group.

This research is oriented to provide approaches, tools, techniques, and guidance for applying

methodology and best practices in Small Settings both for Process Improvement and Project

Management.

The IDEAL model is being considered a good guidance for all organizations, but the complexity of the

steps/activities recommended is a burden for Small Settings that, generally, do not the money, resources

and material needed. To any prescribed IDEAL step it has been applied a filter, using expert judgement

analysis in order to decide whether the step could be omitted or not in a Small Setting scenario.

Organization of the paper

First there is a definition of terms, with same examples of factors found in projects. It continues with a

description of the method used, followed by some facts on the validation method used and the actual state

of the research. Finally there is a resume of conclusions.

Concepts and Definitions

Definitions

Some concepts used in this work are:

The effect of reducing the average time and/or cost needed to deploy a practice or process.

Acceleration
http://www.zonnect.com/http://www.zonnect.com/http://www.zonnect.com/http://www.zonnect.com/


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We use SME as a synonymous of Small Setting, as defined by the (SEI, 2006), SEI (2002):

SME

small businesses with fewer than 100 people

small organizations, within a larger organization, with fewer than 50 people

small projects with fewer than 20 people

Small setting represents more than 85% of the whole market. This is the reason why theinstitutions at any level, whether local, national or international, are very interested in giving

these small setting the innovation and competences they need to compete in the global market.

Here is a justification of our interest in this part of the market.

Experimentation Methodology

As important as the tool and technique we want to implement is the operating subject that is going to use

it: a SME. Due to the special characteristics of an SME a special tailoring of the IDEAL model

recommendations has been made. The process followed is the following research phases:

First: a complete IDEAL WBS check list has been made. (Exhibit 1) This WBS isindependent of the size of the company were the improvement is going to been made

Second: This WBS has been augmented including extra activities specially recommended by

several authors (Exhibit 2) (PMI, 2005; Cabezas L. et al, 2007a)

Third: It has been decided whether a particular activity in the WBS was going to be applied

or not to a Small Setting. This has been done using Expert judgement technique. The

chosen activities have defined in writing

Fourth: Experiment 1. Using Expert Judgement it was selected a subset of the Small

Setting WBS in order to measure and analyze how they contribute in the acceleration of the

implementation process.

o Data and Measurements carried out of four case studies in two very not similar Small

Settings.

o Survey

o Analysis and results

Fifth: Experiment 2: Using Expert Judgement it was selected a subset of Experiment 1

WBS in order to compare, using measures and analyses, how a Small setting would perform

in two very different scenarios (with and without a special purpose SaaS Platform with ready

to use process embedded in it).

o Data and Measurements carried out of four case studies in two very not similar Small

Settings, both with and without use of a SaaS platform.o Survey

o Analysis of results

The research moves along a previously defined roadmap, dealing first with EVM implementation

acceleration and second the influence of using a SaaS platform. The model is refined through iteration

and experimentation results.


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Exhibit 1: A sample of IDEAL based WBS

ACTIVITIES PROPOSED BY IDEAL SS Exp.1 ? Exp. 2 ? REASONING

A.4.3 Pilot Potential Solutions YES YES YES Measured and analyzed

Verify the solution in a real project in the organization. YES YES YES Measured and analyzed

Capture lessons learned and results of pilot to refine the soluti YES YES YES Measured and analyzed

A.P.1. Establish a Performance Measurement Baseline (PMB) YES YES YES Measured and analyzed

A.P.1.1. Decompose scope to a manageable level YES YES YES Measured and analyzed

A.P.1.2. Assign unambiguous management responsibility YES YES YES Measured and analyzed

A.P.1.3. Develop a time-phased budget for each work task YES YES YES Measured and analyzed

A.P.4.1. Select EV measurement techniques for all the ta YES YES YES Measured and analyzed

A.P.5.1. Maintain integrity of PMB throughout the project YES YES YES Measured and analyzed

A.P.2. Measure and analyze performance against the baseline YES YES YES Measured and analyzed

A.P.2.1. Record resource usage during project execution YES YES YES Measured and analyzed

A.P.2.2. Objectively measure the physical work progress YES YES YES Measured and analyzed

A.P.2.3. Credit earned value according EV Techniques YES YES YES Measured and analyzed

A.P.2.4. Analyze and forecast cost /schedule performance YES YES YES Measured and analyzed

A.P.2.5. Report performance problems and /or take action YES YES YES Measured and analyzed

A.4.4 Select Solution Providers NO NO NO Not relevant for Small Setting Exhibit 2: Activities in de WBS directly related to EVM

Case studies, scenarios and survey

Description of the SMEs used in the case studies:

One SME is a very small EBCT (Science and Technological Base Company), with a total staff of 20

people. All have high level of formal education, some are PhD degrees. Nonetheless, around 50% of them

have only work experience in the academic world. They are under time pressure for succeeding in two

ambitious R&D projects, with fixed deadlines. The SME was constituted one year ago, and most of the

staff (Lawyers, Telecommunications, Industrial and Aeronautical engineers, Software Development

engineers, Business Administration, Sociology, etc) were hired in the last six months. The end users are

very motivated as they constitute what is understood as a Living Laboratory

The other SME is the IT Department of an Organization belonging to a Governmental Institution. As suchis a Small Setting both because the project involves less than 20 people, and because this IT Department

is small organization, within a larger organization, with fewer than 50 people. Nearly all are long standing

public employees with an average of 15 years in the company, working from 8:00 to 15:00. They are not

accustomed to work under pressure, and these projects are no exception. The subcontracting company

carries out the biggest burden of the project, working long hours till 18:00. They work under time and

material type of contract. The end users form a special part of the project as they are the people that

validate the project results and usually are very slow producing the validation reports.


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The Case Studies are the four projects. All these projects are monitored and controlled using EVM with

regular weekly meetings were the EVM reports supply the main performance information on the project

progress. (Exhibit 3)

The survey is constructed with a standard set of questions aimed to asses the project manager and sponsor

consideration at project start, middle and end.

PROJECT ACRONIM

COMPANY ACRONIM

FULL PROJECT NAME

CONSTRAINTS

Documentation supplie d

to team members

End User Team (people)

Main Subcontractor Team

N. of Subcontracting firms

Own Staff Project Team

BAC . Budget At

Completion (man hours)

PD -Planned Duration

(weeks)

Fixed Deadline Mix Project team

(consultants and key

users). Only

subcontraccting project

team is measured

Fixe d Deadline Onl y own Staff . Cost is not

measured, only duration

maters

9.286 2.533 6.964 4.555

4 1

Overall project vision

Individual tasks, effort

expected, start and

finish dates planned

Project WBS and

Schedule

Overall project vision

Individual tasks, effort

expected, start and

finish dates planned

Project WBS and Schedule

32 19 32 17

10 15

6 8 6

1

10

6

3

INA LQT INA

LQT SUGAR Universal

Guiding System in Close

Environments for

persons with visual

deficiencies

Phase 2 of

Aeronavegability

Documentation Portal

Phase 1 of LQT Elder

Cluster Integral Support

Platform for the

Independent life of

Elder people

FI/ISPS

Closing/Opening/Report

ing Modifications in SAP

ERP

4 6 4

12

SUG CAG EL1 AE2

LQT

8

Exhibit 3: Summary table of Projects used in as Case Studies

Factors, variables and measurements

For every case study distinction is made between Factors, Variables, Measurements, Comments, and

Indexes

For Factor are Environmental parameters, characteristics, constraints, that characterizes a particular

project. Some examples: budget, personnel skills, language barriers, time to finish, organization

constraints, etc. Factors are catalogued, analyzed and documented (Heales, 2002; Kemerer, 1999;

Khosrowpour-pour, 2005). For the sake of the experiments the factors considered are the following

(Exhibit 4):


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ACRONIM DESCRIPTION

PCO Project Cost Overrun

RPD Real Project Duration

F-CPI Final Cost Performance Index

F-SPIt Final Schedule Performance Index time based

BQ Baseline Quality (0 to 5)

p Schedule Adherence

CPI 1/3 Cost Performace Index at 1/3 of project Planned Duration

CPI 2/3 Cost Performace Index 2/3 of project PD

CPI 3/3 Cost Performace Index at 3/3 of project PD

SPIC 1/3 Schedule Perfomance Index cost based at 1/3 project PD



SPIT 2/3 Schedule Perfomance Index time based at 2/3 project PD

SPIT 3/3 Schedule Perfomance Index time based at 3/3 project PD Exhibit 4: Summary of factors considered

Variables, in the context of these experiments, are case study data that changes for whether a SaaS

platform is used or not. They are used mainly in Experiment 2. (Exhibit 5)

ACRONIM DESCRIPTION

C-EVM Estimated Cost of EVM Implementation

C-PMC Estimated Cost of Project Monitoring and Control (PMC)

D-EVM Estimated Time needed for EVM Implementation

D-PMC Estimated time needed for PMC

D-EVM Real amount of Time employed for EVM implementation

D-PMC Real amount of time employed for PMC

C-EVM Real Cost of EVM Implementation

C-PMC Real Cost of Project Monitoring and Control Exhibit 5: Summary of variables used

Measurement, in the context of these experiments, is the data obtained through objective measurementsmade during the life of the project. These data are independent of the project method used for monitoring

and control, and depend only on case study project performance. (Exhibit 6)

Exhibit 6: Summary of measurements made


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Comments are explanatory information that help to understand the Case Study scenario. Indexes are

calculated numbers that categorize the results. The indexes are normalized to 1. These indexes are used

for experiment 2. (Exhibit 7)

ACRONIM DESCRIPTION

Ip Performance indicator, relationship between objectives

reached, time employed and resources in regards an

established plan.

Is Satisfaction index, that measures the degree of confort

and end user acceptance. Survey result

Ile Leaning easiness. Consideration of end user on the

learning of tools and techniques proposed Exhibit 7: Indexes used

Analysis of results

For every case study distinction is made between Factors, Variables, Measurements, Comments, and

Indexes. Measurements and analysis has been carried out during the life cycle of the project, and the

calculated results have been updated with every measurement made.

First of all, it has been compared Indexes of the four study cases, obtained through surveys on the project

manager and sponsor. The results obtained are shown in the following graphic (Exhibit 8).

Ile

0,40

0,50

0,60

0,70

0,80

0,90

1,00

1,10

SUG CAG EL1 AE2

Value

CaseStudy

Ile start

Ile end

0,40

0,50

0,60

0,70

0,80

0,90

1,00

1,10

1,20

1,30

SUG CAG EL1 AE2

Value

Case Study

IpIp start

Ip end

Is

0,40

0,50

0,60

0,70

0,80

0,90

1,00

1,10

SUG CAG EL1 AE2

Value

CaseStudy

Is start

Is end

Exhibit 8: Illustration on Indexes analysis


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The indexes have been calculated averaging the PM and Sponsor responses in each case study. It can be

observed that the indexes obtain better numbers at the end of the project that at the beginning, fact that

was in some way predictable due to the education obtained through the project life.

Conclusions

It has been possible to conclude, according the use of the accelerated Process used, that there is an

increase in all the indexes (from start to end surveys). This implies that there is a positive contribution of

the accelerated Process for Implementing EVM in all the Case Studies. One curiosity is that the Company

(LQT) with a lot of academic knowledge behaves more positively towards the use of the agile process,

being the governmental Small Setting (INA) with a lot of civil servants that were more reluctant to use it.

The result shown here, are going to be double checked with further surveys.

The conclusions reached during the experimentation can be summarizes as follows:

1. It is good to have a Defined Process to accelerate the EVM implementation in an SME, but the

formal processes have to go under a high simplification. The defined process is important also

because it is a good help having beforehand in writing what has to be done.2. The success depends also of the existence of a PMO, manned at least with a part time person. This

helps to consolidate the performed actions and provides continuity with other projects.

3. The use of a SaaS platform introduces a further acceleration as it minimizes the time and cost of

some of the tasks to be performed, and obliges the continuity of the periodic actions. Nevertheless

the effect of the PMO cannot be forgotten. At least an part time PMO should be always present.

References

Cabezas L, Fernndez B., Amescua A., Lpez-Cortijo R, Jimnez F., Cabezas P., Lpez S. (2007a)

EVM, Teoria, Practica e Implementacin, Instituto Nacional de Tecnica Aeroespacial, Madrid,

Spain, November 2007

Cabezas L., de Amescua Seco, A. & Lpez-Cortijo, R.(2007b) EVM implementation accelerator forsmall settings. PMI Global Congress EMEA. Budapest, Hungary, 2007

Heales, J (2002, November), A model of factors affecting an information system's change in state,

Journal of Software Maintenance: Research and Practice, 14 (6) 409-427

Kemerer, C & Slaughter, S (1999, July)) An Empirical Approach to Studying Software Evolution,IEEE

Transactions on Software Engineering 25(4493 - 509

Khosrowpour-pour, M. (2002).Advanced topics in information resources management; V.4.; Hershey,

PA: IGI Publishing.

McFeeley, B. (1996) IDEAL:A Users Guide for Software Process Improvement. Software Engineering

Institute (SEI) : Carnegie Mellon University Pittsburgh, Pennsylvania. CMU/DEI-96-HB-001.

February 1996.

PMI (2003) Organizational Project Management Maturity Model (OPM3) Knowledge Foundation.

Newtown Square, Pennsylvania: Project Management Institute.PMI (2005) Practice Standard for Earned Value Management.Newton Square, PA: Project Management

Institute.

PMI (2008)A Guide to the Project Management Body of Knowledge. Fourth Edition.Newton Square,

PA: Project Management Institute.

SEI (2002), Capability Maturity Model Integration(CMMI SM), Version 1.2; Continuous

Representation; CMU/SEI-2002-TR-028, Carnegie Mellon University

SEI (2006),Improving Processes in Small Settings (IPSS), A White Paper; The International Process

Research Consortium (IPRC), Software Engineering Institute.http://www.sei.cmu.edu
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Solomon, P.J. (2005,August) Performance-based earned value. Northrop Grumman Integrated Systems.

Crosstalk: The Journal of Defense Software Engineering. Available at

http://www.stsc.hill.af.mil/CrossTalk/2005/08/0508Solomon.html
http://www.stsc.hill.af.mil/CrossTalk/2005/08/0508Solomon.htmlhttp://www.stsc.hill.af.mil/CrossTalk/2005/08/0508Solomon.htmlhttp://www.stsc.hill.af.mil/CrossTalk/2005/08/0508Solomon.html


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