A significant number of development Information Technology projects failed, which resulted in disastrous consequences. If the Information Technology project failed, that means the organisation will face be bankrupt in market competition. Poorly planned projects however fail for a number of reasons mainly created through the top management. Many projects fail through over time and over budgeting. When a problem occurs within a project it usually means that there will be schedule and economic implications that can result in a project failure.It seems obvious that if any Information Technology (IT) project is going to become success, there must have some high-level issues to successfully ...view middle of the document...
Before explaining the project management within time and budget, the project management should be defined first. The definition put force by Whitten, Bentley & Dittman (2001, p.124) "The project management is the process of scoping, planning, staffing, organizing, directing, and controlling the development of an acceptable system at a minimum cost within a specified time frame." From the project management perspective, the Information Technology project is delivered within time and budget is considered as an important success factor. Therefore the project manager have to study the project management functions about the time and budget, these function include scoping, planning, estimating and scheduling.The project scope is the most important prerequisite at the beginning of the project management within time and budget. Cannon (1994) provide an example about it. A retailer decided to upgrade its systems and embarked on an ambitious plan to redesign its distribution and stock management systems. It employed consultants, established an experienced project team, had a clear, user-defined system design and used project management techniques to control it. In the end, the first phase of the system was abandoned after almost 50 per cent more time than planned had been taken. Why this project failed? The reason is size of this project. Size means that any requirement of for additional resources may be substantial, in terms of budget, if real impact is to be made on project time-scales. In considering why projects fail, it is useful to turn to the project that succeed and understand what factor has contributed to the success, so the negotiation of the project scope is very important.Consequently, is defining the scope of a project, scope refers the boundaries of a project. Avison and Fitzgerald (2003, p.68) pointed out the "normal" thing of the project methodology in people's thinking, such as in a defining the scope, agreeing times and deadlines and so on, all of these are within the scope of project management. Therefore, there is some questions influence the negotiation of project scope, for example, when do you want the project, and how much are you willing to pay for it. Before the design the project, the manager must define the boundary of it, like time, cost and resources.As Schwalbe (2000, p. 91) described that the result of the scope planning is a Scope Statement and a Work Breakdown Structure (WBS). It seems that the Scope Statement defines what is in the scope of the project and what is out of the scope. In the scope of the project is to select correct concept of the strategic management for the company, analyze current situation of the company, like company finance, company resources, company politics and company cultures. Out of the scope of the project is to make research or collect data from the market, customers or competitors. Whole work will be based only on information provided by the customer or on existing information resources....
