Project Management

Numerous project management information sys­ tems (PMISs) are available that help the user to plan, track, and manage their projects. In recent years, PMISs have become very easy to use and often can be customized to fit the needs of the user. A PMIS provides a powerful suite of Web­ based tools to support many of the topics covered in this text. This appendix provides:

• A discussion of the common features available in most PMISs

• Criteria for selecting a PMIS

• A discussionof some advantagesof using a PMIS

• A discussionof some concernsof using a PMIS

• A discussion of how to find vendors offering

PMISs

Project Management Information

Systems Features

The following list of features offered by most of today's PMISs, although by no means complete, gives a general overview of the types of features available. It should be noted, however, that dif­ ferent PMISs provide different features, and some of the features listed are not found in every project management package. In addition, some products do a much better job than others in providing software support for some of these features.

1. Budgeting & Cost Management

One of the most important features that PMISs provide is the ability to effectivelyplan and manage the costs of projects. Features often include:

• Billing and hilling methods

As discussed in the text, projects can be charged to customers in a variety of ways. Most PMISs allow selection of fixed price, time and materials, milestone completion, and percent-to-completion billing methods. In addition, automated billing procedures can be defined.

• Cost-to-completion tracking

This feature permits the user to track the progress of each task and automatically cal­ culate the expected remaining cost to com­ plete each task and the expected cost to complete the entire project.

• Earned value management

As described in Chapter 7, it is important for the project manager to understand the value of work actually performed. Tools to support earned value calculations and management are common in PMISs.

• Multiple currency

With the global business environment of today, many projects have components that

461

462 Appendix A Project Management Information Systems

span several countries. Some PMISs can handle the tracking and reporting of cur­ rency from multiple countries.

• Payroll integration

Many of the PMISs comply with the direct integration of project data with the most common payroll systems that are available.

• Percent-to-complete tracking

It is extremely important for the project manager to track each task as a project is being worked on. Percent-to-complete tracking lets the user report progress on a percentage basis as a means to help keep a project within its budget.

• Project accounting and cost control

The ability to track projected versus actual expenses, track labor and nonlabor costs, track earned value, and forecast revenue and profitability are just a few features of project accounting software within PMISs. Numer­ ous tools exist for helping the project man­ ager track and control costs.

• Project cost estimating

As discussed in Chapters 3 and 7 of the text, it is very important for the project manager and the project team to properly estimate the c~sts of individual tasks and the cost of the entire project. PMISs help do this a.nd al~o p~ovide features for capturing and usmg historical

data to help better estimate future projects.

• Time and expense reporting

All PMISs provide features for tracking time and expenses. Timesheet functions provi~e the ability to designate billable and nonbill­ able time, as well as various work schedules and holidays. Expense reporting features

help the user to create customized expense reports, define expense categories, and track receipts and paid items.

2. Communications

The communication features of PMISs have come a long way. Most systems provide a suite of tools, such as those noted below:

• Automatic e-mail notifications

These features can be used to automatically inform a team member when he or she has a

task that is due in a few days. They can also be used to inform a team member if he or she has a task that is past due. Because of the interdependencies of many tasks, this feature can also automatically inform others who might be affected by a task that is behind schedule.

• Collaboration management

Because PMISs are now Web-based, they have the capability to provide access to project data from virtually any comp~ter in the world that has Internet connectivity, Therefore, each project team member and the client can have their own log-in access and receive real-time information about the project.

• Customer collaboration

Customer collaboration features allow proj­ ect managers to receive client's input and approval electronically. It also permits the client to view real-time progress reports on the project.

• Discussion forums

To facilitate an open exchange of ideas, newer versions of PMISs often include Web­ based discussion forums that allow the project team and the customer to have an open, electronic dialogue about any aspect of the project. Users can see previous com­ ments and create a string of ideas and suggestions.

• E-mail integration

The ability to send virtually all project information from the system directly to a team member or customer's e-mail account is a nice feature of modern software. E-mails can also be sent at predefined times and in predefined formats-for example, providing

a daily morning update on the budget to the client.

• File attachments

The ability to attach multiple files and mul­ tiple file formats to project information is now a common feature of PMISs.

• International characters

With the globalization of projects, many

PMISs allow the selection from multiple

'='

Appendix A Project Management Information Systems 463

international character sets when planning, tracking, or communicating information about the project.

• Message center

This feature allows for a virtual location to be set up for the posting of critical infor­ mation about a project. For example, if a shipment of materials was delayed, a mes­ sage could be posted to the message center informing all team members and the client.

• Mobile access

With the convergence of the latest technolo­ gies, many PMISs now allow for mobile access to project information from cell phones and PDAs, thereby allowing the users to access data virtually anytime and anywhere.

• Multiple languages

In addition to working in English, many PMISs now allow users to work in several languages, such as Chinese, French, Spanish, and many others.

• Online meetings

Several PMISs provide features that support online meetings, Web conferencing, webi­ nars, screen sharing, and live collaboration tools. This can save time and reduce travel expenses for geographically dispersed users.

• Information quality assessment

Applying a quality control methodology helps organizations effectively manage the information within the PMIS. Management of the quality of information reduces the potential of poor quality of information shared and increases the control of the optimum amount of information shared. Other ratings related to priority and audi­ ence help communicate essential informa­ tion at the appropriate quality level.

3. Documentation Management

One of the most important features of a PMIS is the ability to document a project from beginning to end. The following is a list of some features that are available:

• Approval process and routing

To streamline the workflow, process docu­

ments can be routed electronically via

predefined paths and can include sections so that approvals can be noted before items are processed.

• Change order management

This feature makes possible the tracking of billable and nonbillable change orders, and the estimating and tracking of their effect on project budgets and schedules. Change

orders can often be billed and tracked via numerous methods.

• Contract management and automation

Several PMISs have contract templates and allow implementation of some business rules and billing rates for specific projects. Many of the common contract provisions, such as those discussed in Chapter 3, are provided in the templates.

• Meeting management and action items

As discussed earlier, many of the newer PMISs provide an environment for online meetings. However, from a documentation standpoint, the software allows the project team to track relevant discussion, decisions, and action items.

• Project charter information

The project charter feature captures critical information about a project, for example, who the project sponsor is, what the project is supposed to accomplish, why the project is being done, and what the major assumptions and/or risks are.

• Requirements management

This feature supports the documentation and tracking of the major deliverables for the project.

• Time off requests

This feature tracks personal and vacation time of project members, and automates requests for time off and the approval or rejection of that request as well. Workload reports can be automatically updated to properly manage the human resources.

4. Integration and Customization

Most PMISs allow for the customization of the user interface and the reports to suit the par­ ticular needs of a project. In addition, they

464 Appendix A Project Management Information Systems

provide linkages with many other popular information systems.

o Customizable user interfaces

Users often have the ability to change the look and feel of the user interface. They can change colors, fonts, and backgrounds, as well as customize input screens and project reports.

o Importing/exporting

Many PMISs allow the user to bring in information from other applications, such as word processing, spreadsheet, and database applications. The process of bringing infor­ mation into a PMIS is called importing. Similarly, it is often possible to send infor­ mation from the PMIS to those applications. The process of sending out information is called exporting.

o Multimedia integration

Many PMISs allow for the full range of graphics, animation, voice, and video to be incorporated into the project. Videos or animation can be very useful, for example, to show the customer the latest design of a bridge or a building.

5. Online Tutorials

During the past few years, the online help tools for PMISs have come a long way. PMISs now often include very detailed demos, online help, in-depth tutorials, and even full video presentations.

6. Project Planning

All PMISs allow the user to define the activi­ ties and resources that are needed to perform a project. The list below provides an overview of some of the important project planning

features.

o Network diagrams and bar (Gantt) charts

One of the important features of a PMIS is the ability to easily and quickly generate network diagrams and bar (Gantt) charts based on current data. Once the baseline plan has been created, any modifications to the plan can easily be entered into the sys­ tem, and the diagrams and charts will auto­ matically reflect those changes. A PMIS lets

tasks in Gantt charts be linked together so that the precedence activities can be shown. Typically, the user can jump back and forth between Gantt chart and network diagram displays with a single command.

o Project time estimating

During the planning phase, all activities can be defined along with their appropriate time estimates. Based on the interdependencies,

and other factors such as vacation time and holidays, the PMIS will calculate an overall project time estimate.

o Scheduling

PMISs provide extensive support for sched­ uling. Most systems will build Gantt charts and network diagrams based on the task and resource lists and all of their associated information. Any changes to those lists will automatically be reflected in the schedules. In addition, users can schedule recurring tasks, set priorities for scheduled tasks, per­ form reverse scheduling (from the end date backward to the beginning), define work shifts, schedule elapsed time, schedule tasks to start as late as possible or as soon as possible, and specify a must start by or must

finish by date or a no earlier than or no later than date.

o Task management and interdependencies

Just as the PMIS lets a resource list be maintained, it also permits an activity or task list be maintained. For each task, the user can provide a title, a start date, a finish date, comments, and estimated durations (including optimistic, most likely, and pes­ simistic estimates in various time scales) and can specify any precedent relationships with other tasks, as well as the person(s) respon­ sible. Typically, a PMIS allows several thou­ sand tasks to be associated with a project.

o What-if analysis

One very helpful feature of PMISs is the ability to perform what-if analysis. This feature lets the user explore the effects of various scenarios. At some point in a proj­ ect, the user might ask the system, What if­ were delayed by a week? The effects of the delay on the entire project would

Appendix A Project Management Information Systems 465

automatically be calculated, and the results would be presented. Almost any variable (people, pay rates, costs) in a project can be tested to see the effects of certain occur­ rences. This type of analysis enables the manager to better control any risks associ­ ated with the project.

• Work breakdown structure

In addition to the features mentioned above, most PMISs allow you to create a work breakdown structure (WBS) similar to the one presented in Chapter 4. WBSs are very useful tools to aid in the planning process.

7. Project Portfolio Management

Many project managers today are running multiple projects and tracking significant issues related to those projects. The list below provides some features that can help:

• Issue management

The issue management feature helps team members or the customer to electronically note any issues that they have with a project. The issues can cover a wide range of topics and can be tracked and responded to electronically.

• Knowledge management

There are often certain business rules and/or historical data and/or experiences that can help provide insights and guidance into successfully completing your projects. A few of the newer PMISs have functions that allow you to build in some of this knowledge and expertise.

• Lessons learned management

Opportunities to record lessons learned during the project provide a resource for reference by other project team members during and after the project. Access to the lessons learned in a combined file for mul­ tiple projects within the PMIS helps project team members to be more aware of lessons learned such as potential issues or efficient practices.

• Multiple project management

Experienced project managers often oversee several projects simultaneously, and team members are assigned to more than one

project simultaneously, with their time divided between the projects. Most PMISs provide support for these situations. They often can store multiple projects in separate files, with connecting links between the files; store multiple projects in the same file; handle several hundred or even several thousand projects at the same time; and create Gantt charts and network diagrams for multiple projects.

8. Project Tracking and Control

Tracking progress, actual costs, and actual resource use is a fundamental component of project management. PMISs allow the user to define a baseline plan and compare actual progress and costs with those in the baseline plan. Most PMISs can track tasks in progress, completed tasks, associated costs, time expended, start and fmish dates, actual dollars committed or spent, and resources used, as well as remaining durations, resources,and expenses.

• Critical path analysis

A PMIS will calculate the critical path for a project and often display it in red. In addi­ tion, for any activities not on the critical path, the PMIS will calculate the slack.

• Milestone tracking

Milestones should be defined for each proj­ ect, and a PMIS will support tracking prog­ ress toward those milestones. Any milestone that has been successfully completed can be displayed on a variety of reports, and team members can be informed electronically.

• Subcontractor tracking

This feature allows the tracking of subcon­ tractors who are assigned to projects. Time on task, fees, and numerous other items can be tracked.

• Task priorities

When tracking the progress of a project, the level of priorities can often change. This feature permits setting and redefining the priority of any given task based on a par­ ticular situation. Task priorities are often defined as low, normal, high, or urgent, but they can also be defined on a numerical scale such as 1-10.

466 Appendix A Project Management Information Systems

• Task reminders

As noted above under point 2, Communi­ cations, automatic e-mail notifications can be sent. These can take many forms. One popular form is to remind the person

responsible that a task is scheduled to start, a task is scheduled to finish, or certain levels of progress should have been achieved.

9. Report Generation

Most of today's PMISs have extensive report­ ing capabilities. Among the reports they can generate are (a) reports on the project as a whole; (b) reports on the major milestones; (c) reports that provide a variety of informa­ tion with respect to a date range-such as tasks that have been completed within that

range, tasks that are in progress, and tasks that will start within that range; (d) financial reports that show a full range of information, including budgets for all tasks as well as the

entire project, tasks and resources that are over budget, cumulative budgeted costs, actual

costs, and committed costs; (e) earned value analysis and management reports; (f) resource allocation reports for each resource or group of resources involved in a project; and

(g) baseline to actual variance reports.

• Customizable reporting

Almost all PMISs allow the user to custom­ ize reports, by selecting the data wanted along with the report format desired (that is, font, color, etc.).

• Dashboard indicators

Dashboard indicators provide a visual report that the project manager can customize to get a quick snapshot of information that is most important to him or her. For example, the project manager's dashboard can provide a visual summary of what tasks are done, which are due, and which are overdue. Likewise, it could present a visual summary of which tasks are under or over budget.

• Filtering

Filtering enables the user to select only certain data that meet some specified criteria. For example, if the user wants information on just the tasks that require a certain resource,

a simple request tells the PMIS to ignore tasks that do not use that resource and display only tasks that do use that resource.

• Real-time reporting

All of the reports generated via PMIS can provide real-time, up-to-date information, assuming the project database has been properly updated.

• Sorting

Sorting lets the user view information in a desired order, such as pay rates from highest to lowest, resource names in alphabetical order, or task names in alphabetical order. Most PMISs allow multiple levels of sorting (for example, by last name and then by first name).

10. Resource Management

PMISs can maintain a resource list consisting of resource names, the maximum amount of time that resources are available, standard and overtime rates for resources, accrual methods, and textual descriptions of the resources. Constraints can be assigned to each resource, such as the number of hours or times that it is available. The PMIS will highlight and help correct overallocations and perform resource leveling and resource smoothing.

• Assignment tracking

Users can also assign resources to a task or a percentage of a task, set priority levels for resource assignments, assign more than one resource to the same task, and keep memos or notes on each resource.

• Calendars

All resources can have their own individu­ alized calendar, stating when they are and are not available.

• Resource allocation and planning

A PMIS will track any resource assignments that are made and make sure they are not overallocated. Many PMISs can also perform some version of resource leveling or resource smoothing, as discussed in Chapter 6.

• Resource utilization

Resource utilization charts can be created to provide an overview of the utilization rates for each resource. This can be very helpful as

Appendix A Project Management Information Systems 467

project managers try to make the best use of available resources.

• Skills tracking

This feature allows the assignment of resources by skill level. Resource profiles can include skill levels, certifications, experience levels, and training and educational levels.

11. Risk Management

Project risks are uncertain events or circum­ stances that could have an impact on a project. The degree to which a PMIS supports risk management varies greatly. Several tools allow the user to define possible risks, determine the probability that they will occur, and predict

the impact on the schedule and budget if they occur. These risks can be directly associated with individual tasks within a project or with

the project as a whole.

12.Sales and Business Development

Several of the PMISs include a feature related to business development. Some of the features include:

• Automated lead generation

This feature automatically takes information directly from Web-based lead forms and informs the sales team so that they can fol­ low up. Should a project be created, that information can then be imported into the project database.

• Client management

Some PMISs provide an integrated view of salesand client information. Project managers, with approved access,can see any relevant notes, history, contacts, and ongoing com­ munications with the client or potential client.

• Sales dashboard

A sales dashboard provides a visual summary of pertinent sales information. This informa­ tion might include sales pipeline information, sales metrics, sales quotas and expectation, geographicalterritory displays,and numerous actual versus projected reports.

13.Security & Access Controls

A criticallyimportant feature of PMISs is secu­

rity and access rights features. Some PMISs

provide password access to the project man­ agement program itself, password access to individual project files, and password access to specificdata within a project file (such as pay rates). Different views can be given to the proj­ ect manager, team members, and the client.

Criteria for Selecting Project Management Information Systems Following is a list of factors to consider before purchasing a PMIS. Depending on your individual needs, and the needs of your organization, certain factors may be more or less important to you than they are to other people.

1. Capacity. Here, the main concern is whether the PMIS can handle the number of tasks you expect to perform, the number of resources you think you will need, and the number of projects you expect to be managing simulta­ neously. For most organizations, the software capacity is not an issue.

2. Documentation and online help facilities. The quality of documentation and online help facilities varies greatly among PMISs. Consid­ eration should be given to the readability of the online user's manual, the logical presenta­ tion of ideas in the user's manual, the level of detail of the online help, the number and quality of examples provided, and the level of the discussion of advanced features.

3. Ease of use. This is often an important factor in the selection of any type of software pack­ age. Consideration should be given to the look and feel of the PMIS: the menu structures; available shortcut keys; color displays; the amount of information in each display; the ease with which data can be entered or modi­ fied; the ease with which reports can be gen­ erated; the quality of the reports that are produced; the consistency among screens; and the amount of learning required to become proficient with the PMIS.

4. Features available. Here, consideration must be given to whether the PMIS provides the features that are required for your organiza­ tion. For example, does the package include

468 Appendix A Project Management Information Systems

work breakdown structures and both Gantt charts and network diagrams? How good are the resource-leveling and smoothing algo­ rithms? Can the PMIS sort and filter infor­ mation, monitor the budget, produce customized calendars, and help with tracking and control? Does it have the capability to check for and help resolve overallocation of resources?

5. Installation requirements. The considerations here are the hardware and software required to run the PMIS: the memory required, the amount of hard disk space required, the pro­ cessing speed and power required, the type of graphics display needed, and operating system requirements.

6. Integration with other systems. More and more

in today's digital world there is a convergence of numerous electronic systems. If you are working in an environment where pertinent data are stored in various places, such as databases and spreadsheets, then special attention should be given to the integration capabilities of the PMIS. Some PMISs allow very basic integration with a few popular information systems, whereas others provide sophisticated integration with distributed databases and even object-oriented databases. In addition, the ability of the PMIS to export information to word processing programs, spreadsheets, human resources systems, and payroll systems may affect your decision.

7. Internet features. Although all modern PMISs

allow project information to be posted and shared directly through the Internet, there is great variance in the Web-based tools they contain. For example, the online support for the communications features mentioned in the previous section should be evaluated.

8. Reporting capabilities. PMISs vary in the number and types of reports they can provide. Some support just the basic planning, sched­ uling, and cost reports, whereas others have extensive facilities for providing reports on individual tasks, resources, actual costs, com­ mitted costs, progress, and so on.

In addition, some PMISs are easier to cus­

tomize than others. Reporting capabilities should be given a fairly high priority, because the ability to produce extensive and powerful

reports is a feature that most users rate very highly.

9. Security. Some PMISs provide greater levels of security than others. If security is important,

then special attention should be given to the

methods of restricting access to the PMIS, to

each project file, and to the data within each file.

10. Vendor support. Special attention should be given to whether the vendor or dealer provides technical support, the price of that support, and the reputation of the vendor.

Advantages of Using Project

Management Information Systems

There are numerous advantages of using PMISs. Some of these advantages follow:

1. Ability to handle complexity. It is obvious that PMISs can handle certain aspects (especially numeric aspects) of large-scale projects more easily than a person can manually. For projects that have just a few activities and span a short period of time, a manual approach may be feasible. But for projects that involve thou­ sands of activities and thousands of resources and span a few years' time, a PMIS provides indispensable assistance with the level of complexity.

2. Accuracy. Accuracy is greatly improved by

using a PMIS. For large projects, manually drawing network diagrams, calculating start and finish times, and monitoring resource usage are very difficult. PMISs have accurate

algorithms for calculating project information and contain numerous built-in routines that check for user errors.

3. Affordability. Excellent PC-based PMISs can be purchased for under $200.

4. Ease of use. Over the past few years, PMISs

have become extremely easy to use. They can often be mastered with only a minimal amount of training.

5. Maintainability and modifiability. With man­ ual systems, it is often difficult to maintain and modify project information. With a PMIS, any change in the data will automatically be reflected in all the project documents, such as

Appendix A Project Management Information Systems 469

diagrams, cost tables, and resource allocation charts.

6. Record keeping. A major benefit of PMISs is

their ability to keep excellent records. For instance, data can be kept on individual team members' schedules, each task, costs, and resources used. These data can be used to produce high-quality reports and can be helpful in planning future projects.

7. Speed. Once input data have been collected

and entered, almost every imaginable calcula­ tion can be done very rapidly by the PMIS. Manually creating or revising plans, schedules, and budgets can take hours, days, or weeks.

8. What-if analysis. Another very beneficial fea­ ture of PMISs is the ability to perform what-if analysis. What-if analysis, as discussed earlier, allows the user to see the effects of various scenarios on a project. These different scenar­ ios can be run on the PMIS, and their effects can be evaluated. This helps the project man­ ager to prepare and plan for certain contin­ gencies and to assess consequences.

Concerns about Using Project Management Information Systems Although there are numerous benefits to using PMISs, there are also a few concerns to be con­

sidered and pitfalls to be avoided, if possible.

1. Distraction. For some project managers, a PMIS can be distracting. A manager can spend too much time playing with, and focusing on, the PMIS, with all of its reports and features, and forget about the most important part of a project: the people.

2. False sense of security. The PMIS can some­ times lull project managers into a false sense of security. First, project managers might believe that, because they have a powerful PMIS, they can manage and accomplish more than is actually feasible. Second, managers might

think that, although a project is slipping, the PMIS will be able to figure out a way to get it back on track. Third, if the PMIS is not used properly, the reports might show that the project is doing fine, when in reality the proj­ ect is not. Just because the PMIS says

everything is all right does not necessarily make it so.

3. Information overload. PMISs provide a great

number of features and a huge amount of information. At times, the sheer quantity can be overwhelming. Only needed features of the PMIS should be used. Project managers have to resist the temptation to use features that produce more reports or more data without contributing to the successful completion of the project.

4. Learning curve. It does take a certain amount of time to become proficient in the use of a PMIS. The amount of time required varies, depending on the individual's background. For those not currently using computers and business software, there can be a significant learning curve. However, the amount of training typically required to master a PM IS has been decreasing over the past few years as PMISs have become easier and easier to use.

5. Overreliance on software. Because PMISs have become so easy to use and because they pro­ vide so many appealing features, project managers have started relying heavily on them. Individuals with little or no knowledge of the fundamentals of project management some­ times use a PMIS without really understanding what they are doing. If the basic concepts of project management have not been mastered, the PMIS will not make much of a difference. Stated simply, the PMIS is just a tool to help you do your job more effectively and

efficiently-the PMIS cannot manage a proj­ ect. You must manage the project, relying mainly on your skills and the skills of your team.

Project Management Information

Systems Vendors

Numerous PMISs are available that provide sup­ port for the project management process. Almost all of the vendors provide online demos of their products or free trial software that can be downloaded.

A simple Internet search for project manage­ ment information systems, project management software, or project management information

470 Appendix A Project Management Information Systems

system directory will provide links for hundreds of vendors and consultants. Several of the web sites provide a list of the top-selling PMISs, as well as a review of their features. Other sites actually com­ pare popular PMISs and report which features

they provide and give a summary of the strengths and weaknesses of each.

Summary

This appendix discusses several features that are typically found in project management informa­ tion systems. Among the most common are bud­ geting and cost management, communications, documentation management, integration and customization, portfolio management, online tutorials, project planning, project tracking and control, report generation, resource management, risk management, sales and business development, and security and access controls.

Criteria are given for selecting a project man­ agement information system, including capacity, documentation and online help facilities, ease of use, features available, integration with other sys­ tems, installation requirements, reporting capa­ bilities, Internet features, security, and vendor support.

Finally, a list is provided of the advantages of and concerns about using project management information systems. The benefits include accu­ racy, affordability, ease of use, ability to handle complexity, maintainability and modifiability, record keeping, speed, and what-if analysis. Con­ cerns include becoming distracted by the PMIS, a false sense of security, information overload, the learning curve, and overreliance on the PMIS.