project management methodologies - a review of literature

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Running head: PROJECT MANAGEMENT METHODOLOGIES 1 Project Management Methodologies: A Review of the Literature Pamela McClinton Liberty University

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This paper summarizes all widely used project management methodologies such as PMBOK, Agile, Prince2, Six Sigma and SDLC, by Pamela Mcclinton, Liberty University

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Page 1: Project Management Methodologies - A Review of Literature

Running head: PROJECT MANAGEMENT METHODOLOGIES 1

Project Management Methodologies: A Review of the Literature

Pamela McClinton

Liberty University

Page 2: Project Management Methodologies - A Review of Literature

PROJECT MANAGEMENT METHODOLOGIES 2

Abstract

Project management is a discipline that is growing rapidly as organizations expand

nationally and globally around the world. To successfully implement new strategies,

organizations are faced with selecting project managers to introduce innovative products,

services, software and systems to the gain competitive edge in the marketplace. But simply

selecting a team is not enough. Managers are faced with using innovative skills to deliver

quality outputs in record time. Project management methodologies have been developed over

the last century to help organizations consider all the necessary components of a project and

execute processes to apply improvements to existing systems or introduce new products or

services to the marketplace. A review of the literature supporting some of the most notable

project management methodologies can help project managers make evidence-based decisions

about the benefits of a good project management methodology and select the project

management methodology that is best fits the goals and objectives they seek to achieve.

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PROJECT MANAGEMENT METHODOLOGIES 3

Project Management Methodologies: A Review of the Literature

The turn of the twentieth century catapulted the world into a global age of business,

innovation, war, politics, and technology. As the Industrial Age ended, companies began to

grow nationally and expand globally into new marketplaces. When new ventures arose,

managers were tasked with dividing operational staff into two groups: one group to keep current

operations running while utilizing another group of team members to act on strategies to grow

the business, whether opening a new location, increasing market share, expanding nationally,

creating a new product, or acquiring a new line of business. Consequently, the modern concept

of project management was developed. Over the century, researchers, analysts and managers

have examined the practice of project management. This analysis has generated several

approaches to employing project management within an organization. But to understand the true

advantages of project management, a thorough review of the literature surrounding the history,

definition, as well as the methodologies used in modern project management is necessary. As a

result of exploring the literature supporting project management, managers have the ability to

make evidence-based decisions about the benefits of a good project management methodology

and select the project management methodology that is best fits the goals and objectives they

seek to achieve.

Project Management

The history of project management begins when the word project is defined. While

organizations focus on developing products and services for their customers in their day-to-day

business, there are times when they engage in a temporary assignment to test the introduction of

a new opportunity and determine if it would be advantageous to the department or organization.

A project is a “temporary endeavor undertaken to create a unique product, service, or result”

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PROJECT MANAGEMENT METHODOLOGIES 4

(Stackpole, 2010, p. 7). A project does not last indefinitely, but instead has time constraints and

is focused on generating a product, service, system or result that is distinctive to the organization.

The uniqueness of the project differs from a program, which can last indefinitely, or a

portfolio, which is a collection of projects (Stackpole, 2010). This uniqueness captivated project

management pioneer, Henry Gantt, an engineer at the turn of the twentieth century. Gantt led the

way in inventing tools to facilitate his team of engineers as they managed projects and consulted

for large companies such as Westinghouse, Canadian Pacific Railways, and Union Typewriter

(“Gantt, Henry Laurence”, 2006). Gantt’s most famous development was the Gantt chart, which

began as a daily balance chart depicting the daily process of work. This chart was critical to a

change in the planning practice. The chart focused on time and detail instead of quantity. While

surprisingly simple, the chart was completely revolutionary for the time period. Gantt’s work

spawned many other engineers and managers to examine projects in a completely new light,

centered around timeliness, attention to detail, and productivity, and how these components

could be captured on a grand scale. The concept of project management was in full swing and

managers pursued the best project management practices to give their organizations the

competitive edge in the marketplace when contemplating new opportunities. Unlike the middle

to late twentieth century where projects were growing and new to the organizational landscape,

Edmonds (2010) states that it is virtually impossible to find a business today where there are no

projects being employed.

Project management is now a rapidly growing field and is defined as “the ability to define

a goal, plan to reach it, and then execute the plan with accountability and control” (Samid, 1995,

p. 18). When undertaking any task, whether temporary or ongoing, researchers agree that

outlining the overall objective is vital to achievement and it only seems practical to devise a plan

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PROJECT MANAGEMENT METHODOLOGIES 5

to get from start to finish. But with temporary tasks, it is even more important that the time

invested in the endeavor is utilized in the most efficient of ways because this costs the

organization less money and time allocated to resources used to the project. Since the time of

Gantt, managers have become more dedicated to the skill of project management and

associations have been established to help project management professionals understand the

worldwide standards that make project management successful in today’s businesses.

Project Management Methodologies

As project management grew fast during the twentieth century, the subject moved from a

concept to a discipline that would be practiced to gain competitive advantage in the world

marketplace. Researchers sought to improve the practice of project management. Several

prominent methodologies are now in use due to the investment of time and research focused on

project management. In 1969, the Project Management Institute (PMI) was founded and set out

to be an association where project management professionals worldwide could collaborate on

best practices in project management. PMI developed The Guide to the Project Management

Body of Knowledge (PMBOK), now in its fourth edition, a leading guide of PMI standards for

project managers worldwide (Stackpole, 2010).

The PMBOK guide is not a methodology itself, but promotes several key components

that good methodologies must contain. These areas are integration, project scope, time, project

cost, project quality, human resources, project communications, project risks, and procurement.

Greater detail of these areas will be discussed in subsequent methodologies, but the guide also

advocates that all projects hold to a project life cycle which includes initiating, planning,

executing, control, and closing (Strait, 2006). With the temporary nature of projects, utilizing a

project life cycle is beneficial to adhering to time constraints given by upper level management.

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The use of a specific methodology, or procedure, gives managers a directive on undertaking their

projects that can help achieve the goals they desire to ultimately accomplish. A review of the

literature concerning five prominent project management methodologies will be discussed in the

following sections. These methodologies include: Agile, Prince2, Six Sigma, System

Development Life Cycle (SDLC), and Waterfall.

Agile

The software industry faced significant challenges with the rise of computer processing

and the Internet Age. Software developers were unable to create a sustainable software

application product because of the number of glitches that a software application faced in

different microcomputer environments or with upgrades to computer operating systems. This

prompted several information technology engineers to come together at the turn of the twenty-

first century to create the Agile Alliance (Mellor, 2005). In the Alliance’s well-known Agile

Manifesto, the proponents of a more lightweight method of software development share a project

management methodology that has become recognized as Agile Project Management.

In this methodology, the alliance sets forth several fundamentals that express the

perspective of this project management approach. First, the method emphasizes “individuals and

interactions over processes and tools” (Mellor, 2005, p. 17). This means that investing in the

team of people within your project is critical to generating the best product. The process used

and the tools employed are useless without a solid team that is able to work together. Next, the

Agile approach advocates “working software over comprehensive documentation” (Mellor,

2005, p.17). Within project management, documenting a process had become overemphasized

and exhausted time and resources. So, in Agile Project Management, the developers suggested

focusing on working software more than an exhaustive explanation of the how to get the

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software working. This concept was equivalent to having a map to get home works better than

recording the route to get home on a piece of paper. Then, the Agile approach encourages

“customer collaboration over contract negotiation” (Mellor, 2005, p.17). Within many

organizations, the customer of a project is internal, but in the software industry, customers are

mostly external and should be consulted in regards to whether the right product is being

delivered. Lastly, the Agile methodology upholds “responding to change over following a plan”

(Mellor, 2005, p. 17). This principle teaches that sometimes following a plan may not yield the

best results especially if change in the market, the industry, or with the customer occurs.

Therefore, teams should be adaptive and react to the rapid change of economic environments or

customer demands rather than concentrating on a plan.

The concepts found in Agile project management answer several distinct implications

that are prevalent to in the world marketplace. The first is that “the business and technology

worlds have become turbulent, high speed, and uncertain, requiring a process to both create

change and respond rapidly to change” (Cockburn & Highsmith, 2001, p. 131). The uncertainty

of the economy and the rapid pace at which technology is growing demands project management

professionals to become adaptive to constant changes, especially in the midst of projects which

are temporary in nature. Cockburn & Highsmith (2001) also note that the Agile approach is not

just about getting used to change, but embracing change along with maintaining quality has

become paramount to the success of the practice. Secondly, the Agile project management

methodology is intended for people. One of the most significant characteristics the developers of

the project management methodology desire for implementers of the practice to understand is

that this method places more emphasis on people: their talent, expertise, amiability, and

interaction (Highsmith & Cockburn, 2001). Concentrating on these factors helps managers build

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a better team. With a better team, the organization will ultimately produce the best quality

product and in less time. Overall, this methodology functions from the position that ensuring the

concepts that the project management team incorporates centers on having a team with the

expertise to produce the best quality product even amid a rapidly changing environment in the

end leads to competitive advantage in the global marketplace.

Prince2

The Prince2 project management methodology stands for PRojects IN Controlled

Environments (What is PRINCE2? 2012) and was developed in 1989. It is the project

management standard for the UK government’s information technology projects though it is now

used extensively in both the public and private sectors. Prince2 is described as a structured

project management approach and centers on eight characteristic techniques for the successful

administration and control of a project (Karamitsos, Apostolopoulos, & Bugami, 2010).

Starting Up a Project. Within the Prince2 project management methodology, the first

process is the startup of the project. The startup centers on selecting the project and the project

management team. A Project Mandate is required to begin selection of team members and also

outlines the purposes and results of the project (Karamitsos, Apostolopoulos, & Bugami, (2010).

This mandate usually comes from a Programme Committee or a group of similar classification

(Vais, Miron, Pedersen, & Folke, (2006).

Directing a Project. The next step within the Prince2 project management methodology

is to direct the project. This function of the project begins with the startup of the project and

lasts until the project’s closure (PRINCE2 Process Model, 2012). Directing the project is

typically carried out by a Project Board, which is usually the senior management of the project

team. The Project Board guides all activities of the project and resources used during the project.

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To accomplish this task, the Project Board authorizes the initiation of the project, approves the

business case for the project, reviews the project at each of its stage’s boundaries, engages in

progress monitoring, and ensures that the project comes to an organized close while experiences

from the project are shared with other (Karamitsos, Apostolopoulos, & Bugami, 2010).

Initiating a Project. The third stage of the Prince2 project management methodology is

initiating the project. In this process, a project initiation document (PID) is presented that

includes the project plan and costs associated with the project including: the plan objectives, key

performance indicators (KPI) of the project, impacts and assumptions, project constraints and

evaluations of options, benefits analysis, risks, and the delivery of all project implementations

with stages and/or milestones (Karamitsos, Apostolopoulos, & Bugami, 2010). This process

leaves little to be questioned about the advantages of the project for upper management staff. The

plan is required to be thorough to answer all questions and concerns that could be raised from

moving forward with significant investments in the project.

Controlling a stage/milestone. The fourth process of Prince2 involves directing each

milestone or stage the project reaches. Karamitsos, Apostolopoulos, & Bugami (2010) share that

this breaks the project into practical and controllable stages that facilitates monitoring the

project’s activities. This process is a main standard in Prince2 project management methodology

that sets it apart from other project management techniques. Hinde (2012) reports that

controlling a stage involves completed work packages, reviewing the work package status,

authorizing the work packages, reviewing the stage status, capturing and examining the risks

involved, taking corrective action, reporting the highlights, and escalating issues and risks as

necessary.

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Managing Product Delivery. To manage the delivery of the project, or that each stage

of the project is completed successfully, Prince2 identifies its fifth process of managing product

delivery. Hinde (2012) notes that this process involves three distinct activities: accept a work

package, execute a work package, and deliver a work package. The work package is simply all

of the work agreed upon by the team and the project manager. So, reports are often exchanged to

ensure the work packages are in agreement with the cost, quality, an timing of the project

(Karamitsos, Apostolopoulos, & Bugami, 2010).

Managing stage boundaries. The sixth process of the Prince2 project management

methodology is managing stage boundaries. To move successfully from one milestone, or stage,

to another, project managers must ensure that all components of the stage have been satisfied. In

most projects, approval from a senior management team is necessary to move from one stage to

the next (Karamitsos, Apostolopoulos, & Bugami, 2010).

Planning. The seventh process of planning in Prince2 is a repeatable procedure that is

carried out for the entire length of the project. In planning, the project team is required to have a

deliverable checklist and log of risks associated with the plan (Karamitsos, Apostolopoulos, &

Bugami, 2010).

Closing a project. The final process in the Prince2 project management methodology is

closing the project. Closing the project does not require substantial activity as it is chiefly

making sure that all results of the project have been delivered and the objectives of the project

have been met (Karamitsos, Apostolopoulos, & Bugami, 2010). Hinde (2012) goes further to

note that closing a project “is where ownership of these products is transferred from the project

team to the clients or operational teams” (Chp. 11, p. 3).

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Overall, the eight processes that form the Prince2 project management methodology offer

a comprehensive project management strategy that aids project teams in all areas of the project to

be successful in delivering a quality, cost-effective, and detailed product for its client.

Six Sigma

The Six Sigma project management methodology was developed in the 1990s by

Motorola, Inc., a world leader in the telecommunications industry. The approach is best

described by researchers as “a data-driven structured problem solving methodology for solving

chronic issues facing business” (Joshi, 2012, p. 2). Six Sigma is known and employed by

organizations around the globe because of its success in helping gain competitive advantage

within their industries. The objectives of Six Sigma are ten-fold: to improve customer

satisfaction, gain process knowledge, defeat reduction, yield improvement, obtain higher

operating income, target Six Sigma standards, improve process capability, defeat the

competition, gain market share, and produce continuous improvement (Joshi, 2012). The

approach is highly systematic and has been revised several times. This literature review will

analyze the DMAIC methodology: an acronym for define, measure, analysis, improve, and

control.

Define. The first component of the methodology requires project teams define the

requirements and expectations of the customer, define the project boundaries, and define the

process by mapping business flow (Kwak & Anbari, 2006). When defining the project, a

determination of the objectives the results of the project is established.

Measure. The second process in the Six Sigma DMAIC methodology is to measure.

This component is intended to measure the processes used that are meant to satisfy customer

needs, develop a plan for collecting all data, and after collection, compare the data to decide if

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there are issues or deficiencies (Kwak & Anbari, 2006). DeMast & Lokkerbol (2012) share that

this process takes the problem that project managers face and breaks it into measurable parts so

that an evaluation of the current position can be identified.

Analyze. In the third process of the DMAIC methodology for Six Sigma, an analysis of

the causes of deficiencies and the sources of discrepancies are identified. Project managers also

use this process to determine the differences in the procedures and then order opportunities for

future enhancement (Kwak & Anbari, 2006). This component is fundamentally a diagnosis of

the problem that has caused the project to be implemented or an explanation of “why things are

the way they are” (DeMast & Lokkerbol, 2012, p. 604).

Improve. In the improve process of the Six Sigma project methodology, project

managers are tasked with improving the process to eradicate variations, produce innovative

alternatives, and then execute their improved project plan (Kwak & Anbari, 2006). As the

objective of Six Sigma is to “improve the quality of process outputs” (Joshi, 2012, p.1), this

component of the methodology is significant to the project management methodology. After all,

the effectiveness of a new product, service, or outcome is the purpose behind embarking on a

new project for many organizations.

Control. The last component of the Six Sigma DMAIC project management

methodology is control. This process is aimed at managing the process variations to meet the

expectations of the customer. In this stage, project managers also develop a plan to supervise the

improved processes and then employ the improvements to the systems or structures according to

the project plan (Kwak & Anbari, 2006). DeMast & Lokkerbol (2012) even note that the control

stage is where modifications of the process management system are made so that the

improvements that the project team has implemented are sustainable.

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Six Sigma project management eliminates useless steps in the project management

process. The methodology has permeated nearly all sectors of industry including financial,

heathcare, engineering and construction and research and development because it is a

comprehensive technique that centers on new measurements for improved processes that are

sustainable for an organization (Kwak & Anbari, 2006).

Systems Development Life Cycle (SDLC)

With the arrival of computer information systems, organizations discovered the need to

manage the systems that created, stored, or utilized the information for their businesses. While

information systems were in place before microcomputers, the vast amount of information that

could be housed within databases and servers introduced a new frontier for project management

professionals. Systems Development Life Cycle, sometimes referred to as Software

Development Life Cycle or SDLC, is the “process that is followed to define needs, design a

solution and then build the solution” (Bentley, 1990, p. 13). Ruparelia (2010) explains that while

there is a slight difference in a systems development lifecycle and a software development

lifecycle, both have borrowed concepts from each other and include the development of a

structural framework of stages to improve an application or system and guide it through these

stages to implementation in the field. The systems development life cycle has been reported to

be one of the more prominent concepts that has come from the field of information systems

because it has had a significant bearing on programs, study, and practice of information systems

(Hedman & Lind, 2009). Most systems development life cycle follow five clear-cut phases:

“planning and problem identification, analysis, design, realization, and use and maintenance”

(Hedman & Lind, 2009, p. 105) which is most often referred to as the Waterfall method.

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Waterfall. The Waterfall systems development life cycle, or simply, the Waterfall

model or Waterfall method, is one of the first development life cycles instituted and is still

widely used today for systems development (Sasankar & Chavan, 2011). The Waterfall model

was first recorded in 1956 by Herbert D. Benington where he proposed that software be

enhanced in stages, but the model was revised by Winston Royce in 1970 by presenting a

feedback loop so that each stage within the model could be reexamined (Ruparelia 2010). Many

researchers commend the Waterfall model because of it simplicity compared to other systems

development life cycle models and share that it has even strengthened other system development

life cycles. Waterfall steps have varied in name over the years, but still consists of five distinct

areas: system conceptualization, systems analysis, system design, coding and testing.

System conceptualization. During the system conceptualization phase, all aspects of the

business process are examined. The objective of this phase is to determine how all components

of a systems process works together (Sasankar & Chavan, 2011). Many refer to this also as the

planning stage where the project team comes together to identify the demand requirement for a

system (Hedman & Lind, 2009).

Systems Analysis. In the second phase of the Waterfall model, systems analysis, the

project team collects all of the system requirements that must be covered in the system (Sasankar

& Chavan, 2011). This phase also requires a considerable amount of communication between

the project team and the client and is sometimes referred to as simply the analysis phase because

in this stage, the current information system is analyzed and all requirements identified by the

project team (Hedman & Lind, 2009).

System Design. System design is the third stage that encompasses a thorough assessment

of whether a system can be completed and an exploration of logical and physical designs of the

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system are presented (Hedman & Lind, 2009). The system’s design requires the project team to

concentrate on the data needed in the system, the software structure and arrangement, as well as

the interface creation. These components of the system design center on what information will

be in the system, how the application will be build and what the system will look like to the

customer system (Sasankar & Chavan, 2011).

Coding. In the fourth stage of the Waterfall model, the system software is created. This

stage is called coding and all of the design elements of the system design phase are necessary to

execute this area of the project (Sasankar & Chavan, 2011). While some researchers refer to this

phase as the realization phase, it is important to note that this is stage of the system development

life cycle is when the solution that has been identified is programmed and installed (Hedman &

Lind, 2009). In the information technology industry, this phase may also be called the roll out

stage of the life cycle.

Testing. The final stage of the Waterfall model is referred to as testing. In this phase,

effectiveness and efficiency is verified to ensure the system is not only functioning in keeping

with the proposed system design, but also that the system is performing all sub-routines and

improvements that were a requirement of the system being enhanced (Sasankar & Chavan,

2011). Other researchers refer to this stage as the use and maintenance phase because this stage

replaces the old system and the use and the maintenance of the system is tested for continuous

operation (Hedman & Lind, 2009).

Benefits of a Good Project Management Methodology

Reviewing the literature supporting these project management methodologies, it is clear

that methodologies have been created to specifically address the needs of certain industries,

whether information technology, construction, financial, or governmental. The common

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denominator for all project management methodologies regardless of industry is that a thorough

analysis of the necessary output, product, service, or system is identified in the beginning stages

of the project. Next, a team focuses on creating a quality improvement to replace or introduce to

the organization or customer. Lastly, documentation of processes and implementations are

recorded so that future advances can be made easily and current outputs (whether products or

systems) can be kept current. These factors are components of all the project management

methodologies that have been discussed.

Selecting the Right Project Management Methodology

When selecting a project management methodology for an organization, Cockburn

(2000) suggests using the following four principles: a larger group needs a larger methodology,

a more critical system needs more publicly visible correctness in its construction, a relatively

small increase in methodology size adds a relatively large amount to project cost, and the most

effective form of communication is interactive and face-to-face. Larger groups need a larger

methodology because the larger the group, notes Cockburn (2000), the more roles at work in the

system. This basis of this principle highlights that a small team methodology will most likely

not work for a large group. In the second principle that Cockburn uses, that a more critical

system needs more publicly visible correctness in its construction, simply translates that an

organization should be able to justify the expense of a more critical system due to its necessity to

protect against mistakes (Cockburn, 2000). A relatively small increase in methodology size adds

a relatively large amount to project cost, the third principle in selecting the right project

management methodology, reveals that if little is investing in the analysis stages of the project,

the cost of updating requirements and processes later will inflate the cost of project overall.

Lastly, and the most effective form of communication is interactive and face-to-face, is included

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as a principle for selecting the best project management methodology because throughout all the

project management methodologies discussed, an extensive amount of communication is

necessary between the project teams and project committee, programme mandates, customers,

clients, upper management, and project boards to effectively produce a quality output from the

time and resources invested in the project.

Conclusion

The last century of research and innovation has not only introduced and given definition

to the concept of the project, a “temporary endeavor undertaken to create a unique product,

service, or result” (Stackpole, 2010, p. 7), but has also forged the unique discipline of project

management into global culture. From the forefathers of project management until now, the field

has steadily grown and even produced methodologies to help organizations utilize the best

methods for embarking on projects within their businesses. Project management methodologies

have been used globally and worldwide associations such as the Project Management Institute

have been created for the specific purpose of helping project management professionals grow in

their knowledge of project management methodologies and implement best practices for project

management within their organizations.

Reviewing the literature supporting project management methodologies, several

prominent methodologies were discussed that can benefit organizations embarking on projects

within with businesses. In the Agile project management methodology, a less structured

approach to project management is observed. In this four process methodology, people and

interactions with people is highly favored over processes and tools. The methodology prides

itself on delivering a quality software product even if that requires less documentation of the

process to achieve the product. Customers are a significant component in Agile project

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PROJECT MANAGEMENT METHODOLOGIES 18

management methodology and preferred over contract negotiations. Lastly the methodology

encourages reacting to change within the project rather than just simply following a plan of steps

until completion. Reacting to change often yields an adaptive response to create a better system

because changes during the project management process may need to be addressed.

Prince2 project management methodology was a comprehensive approach to project

management that involved six stages of the project process and was so effective that the UK

government implemented the project management methodology for all of its information

technology projects. The six stages journeyed from starting up a project to closing a project with

each stage going through a comprehensive review of the necessities to begin and end a project

methodically, carefully, and exhaustively. The Six Sigma project management methodology was

not only introduced by the technology powerhouse Motorola, Inc., but is globally recognized as

an approach to help organizations gain competitive edge in the marketplace. Six Sigma’s

DMAIC methodology defines, measures, analyzes, improves, and controls the project process to

deliver an innovative, yet quality output from its project teams. The Systems Development Life

Cycle (SDLC) also incorporates comprehensive techniques to help systems and software project

teams improve their information systems in detail. While SDLC is a project management

methodology, it has been revised many times and the notable Waterfall model of the SDLC was

reviewed to show its simplicity in helping software project teams enhance software and systems

thoroughly. When choosing any project management methodology, it is recommended that

project teams look at the benefits of a good project management methodology, as well as select a

project management methodology that is appropriate for their organizational size, the necessity

of their software systems, and the requirements of their customer.

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PROJECT MANAGEMENT METHODOLOGIES 19

Project management methodologies will only continue to develop in the global

marketplace. Thus, it is imperative that project managers have a thorough understanding of the

needs of their clients, their current processes, and the techniques that can assist them in

improving their processes for competitive advantage in today’s world.

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