This thesis deals with the issue of project management in the development of custom software, particularly PRINCE2 methodology and agile approaches to software development. The work is divided into two parts. The first part is theoretical. It describes the basic concepts of project management, project history and characterizes the selected software development methodologies. The classical methods are represented by waterfall and spiral models. In the context of the agile methods are described Scrum, Extreme Programming, Kanban and Scrumban. Regarding the standards of project management this thesis describes in detail the methodology PRINCE2 which at the end of the theoretical part will be compared to the standards of PMI and IPMA. The second part is practical and describes an adaptation of PRINCE2 for small projects and helps to decide which tools of PRINCE2 are required for small projects use and which ones can be ignored. In this thesis the process of managing product delivery within the PRINCE2 methodology is replaced by the agile methodology Scrumban that is adapted for a software development within analyzed organization. The thesis focuses on a more detailed description of the methodology Scrumban, established metrics and motivation within the development team.

This thesis researches dynamics in projects managed by Scrumban. It describes the creation of system dynamics simulation model, which provides insight into the relationships between system components. It also presents data, that are further analysed with the purpose of discovering patterns in behaviour of project attributes in time, such as size of the product backlog, work in progress etc. The patterns are discovered and recommended parameter settings are provided so that there is no idle time or higher defect rate than necessary. Soft factors are also included in the model, namely the development team and the customer, which have a grand effect to the model behaviour. Managment flight simulator is developed, which provides the option to experiment even to users, who are not familiar with system dynamics modelling. The thesis consists of two parts. In the first part, necessary theory of project management, system dynamics and their fusion is provided. The second part is dedicated to the process of creating the simulation model, dynamic hypothesis formulation, mathematical modelling, testing and data analysis. In consideration of the analysis results, recommended policies are provided. Last pages of the thesis describe the user interface of management flight simulator and it's controls.

One of objectives of practical part of the thesis is to perform an analysis of current state of project management in selected organization. Based on its specific environment and identified opportunities for improvement it follows up with formalization of recommended design and way of implementation of alternative approach for project management which uses appropriate agile elements but also reflects specific needs and limits of the organization. In its theoretical part the thesis describes basic terminology related to management of projects and portfolios, selected models of project lifecycle, popular standards and methods of traditional project management, core philosophy of agile and selected practices of agile project management.

Theme of this thesis is how to choose between agile methodologies of software development. Several agile methodologies, such as SCRUM, Kanban and eXtreme programming are described and also methods of choosing between methodologies or management techniques are discussed. New method of multi-criteria decision process on how to choose between Agile methodologies based on multi-dimensionality is presented with option of improving agile experience by adopting additional techniques. Diploma thesis can serve as managers' hand-book for those who want to change their current software development methodologies or are searching for ways of improving their agile adoption.