System Analysis and Design - Topic II: Project Planning Process

Project Planning Process

Most Important Learning Yesterday (MILY)

• Players:

  • System Analysts and Project Managers

  • System Owners

  • System Users

  • System Builders

  • System Designers

• Business Drivers:

  • Information Systems

• Product:

  • Transaction Processing Systems

  • Management Information Systems

  • Decision Support Systems

  • Executive Information Systems

  • Expert Systems

  • Communications & Collaboration Systems

  • Office Automation Systems

• Technology Drivers

• Process:

  • Initiation

  • System Analysis

  • System Design

  • Implementation

  • System Project and Process Management

How Topic 2 Fits into Whole IS Development

1. Identifying problems, opportunities, and objectives.

2. Determining human information requirements.

3. Analyzing system needs.

4. Designing the recommended system.

5. Developing and documenting software.

6. Testing and maintaining the system.

7. Implementing and evaluating the system.

Stages and Sample Activities

• Planning:

  • Create project charter

  • Perform feasibility study

• Analysis:

  • Gather requirements

  • Research alternatives

• Design:

  • Design database architecture

  • Build network

• Implementation:

  • Code

  • Test and debug work

• Support:

  • Provide system maintenance

Topic Objectives

• Understand how projects are initiated and selected.

• Define a business problem and determine the feasibility of a proposed project.

• Plan a project by identifying activities and scheduling them.

• Manage a project - team members, analysis, and design activities to ensure project objectives are met and the project remains on schedule.

Topic Overview

1. Project Initiation

   • Problems vs. Opportunities

2. Feasibility Study

   • Cost Benefit Analysis (CBA)

3. Work Breakdown Structure (WBS)

4. Activity Planning & Control

5. Project Scheduling

   • Gantt chart, PERT diagram, Critical Path Method (CPM)

6. Team Management

   • Team members, Project charter document

Part 1: Project Initiation & Feasibility Studies

Project Initiation

• Factors to Initiate a Project:

  • Problems in the organization

  • Problems that lend themselves to systems solutions

  • Opportunities for improvement caused through upgrading, altering, or installing new systems

Project Initiation Process

1. Identify problems and opportunities

2. Define problems statement

3. Select projects

Project Initiation #1: Identify Problems & Opportunities

To Identify Problems:

• Check output against performance criteria.

• Observe behavior of employees.

• Listen to external feedback from:

  • Vendors

  • Customers

  • Suppliers

Look for These Specific Signs:

• Too many errors

• Work completed slowly

• Work done incorrectly

• Work done incompletely

• Work not done at all

• High absenteeism

• High job dissatisfaction

• High job turnover

• Complaints

• Suggestions for improvement

• Loss of sales

• Lower sales

Project Initiation #2: Define Problems Statement

• Find several points that may be included in one issue.

• State the objective.

• Determine the relative importance of the issues or objectives.

• Identify which objectives are most critical.

Typical Information Systems Problem

• Relevancy to decision making.

• Accuracy comprising completeness, correctness, and security

• Timeliness to decision-making needs.

• Economy resources or cost

• Efficiency expressed as amount produced per economic unit

• Reliability measuring the consistency

• Usability the human factors dimension

Problem Definition Content

• Problem Statement:

  • A paragraph or two stating the problem or opportunity.

• Issues (Current Situation):

  • Major independent pieces of the problem or opportunity.

• Objectives (Desired Situation):

  • Goals that match the issues point-by-point.

• Requirements:

  • The things that must be accomplished (with the possible solutions and the constraints)

  • May include security, usability, government req. etc

• Constraints:

  • The limitation – budget, time, etc.

Project Initiation #3: Selection Of Projects

• Backing from management.

• Appropriate timing of project commitment.

• Possibility of improving attainment of organizational goals.

• Practical in terms of resources for the system analyst and organization.

• Worthwhile project compared with other ways the organization could invest resources.

Project Feasibility Study

• Determining Feasibility:

  • Defining objectives – improvement aspects

  • Determining resources

  • Assess the operational, technical, and economic merits of the proposed project.

Feasibility Studies # 1: Defining Objectives

• Many possible objectives exist including:

  • Speeding up a process

  • Streamlining a process

  • Combining processes

  • Reducing errors in input

  • Reducing redundant storage

  • Reducing redundant output

  • Improving system and subsystem integration

Feasibility Studies # 2: Determining Resources

The Three Key Elements of Feasibility

• Technical Feasibility

  • Add on to present system

  • Technology available to meet users' needs.

• Economic Feasibility

  • Systems analysts' time

  • Cost of systems study

  • Cost of employees' time for study

  • Estimated cost of hardware

  • Cost of packaged software or software development

• Operational Feasibility

  • Whether the system will operate when installed

  • Whether the system will be used

Feasibility Studies # 2: Determining Resources - Operational Feasibility

• Determines if the human resources are available to operate the system once it has been installed.

• Users that do not want a new system may prevent it from becoming operationally feasible.

Feasibility Studies # 2: Determining Resources- Technical Feasibility

• Assess whether the current technical resources are sufficient for the new system.

• If they are not available, can they be upgraded to provide the level of technology necessary for the new system.

Feasibility Studies # 2: Determining Resources - Economic Feasibility

• Determines whether the time and money are available to develop the system.

• Perform cost-benefit analysis (CBA).

• Includes the purchase of

  • New equipment

  • Hardware

  • Software

Cost-Benefit Analysis (CBA)

• The analysis aims to compare costs and benefits to see whether investing in the development of a new system will be beneficial.

• CBA techniques: Break-even analysis, payback, cash-flow analysis, present value analysis.

• There are tangible benefits and intangible benefits.

• There are two main costs: development and production (operation)

CBA Techniques

Benefits vs Costs

Cost-Benefit Analysis (CBA)

• Popular approach to measure the overall benefit of the system (to be developed)

• Present value (PV) is a dollar today is worth more than a dollar tomorrow

• PV calculation formula:

  • PV(n) = Payment \times (\frac{1}{(1+C)^n})$</p></li><li><p>Where:</p><ul><li><p>Payment = spent dollar amount</p></li><li><p>C = discount rate or cost of money // company @ industry-specific</p></li><li><p>n = number of periods projected // durations e.g.: Yearly</p></li></ul></li><li><p>payment value: RM28 840</p></li><li><p>Discount rate: 10$PV = Payment \times (\frac{1}{(1+C)^n} )$</p></li><li><p>$= RM28 840 \times ( \frac{1}{(1+ 0.10)^3})$</p></li><li><p>$= RM21 668$$

CBA calculation example – given values of cost, benefit and assumptions

Estimated Cost

• Hardware: RM50 000

• Software: RM 7 500

• Consultant: RM 20 000

• Training: RM 20 000

• Supplies: RM 2 400 per year

• IS Support: RM 18 000 per year

• Maintenance: RM 2 500 per year

Estimated Benefits

• Inventory Savings RM 1 500 per week

Assumptions

• Discount rate 10%

Example to calculate CBA - Costs

Example to calculate CBA – Benefits, Gain/Loss and Profitability Index

• Profitability Index 0.71, showing that it is not good investment because of its index is less than one.

  • Profitability index = Gain or Loss / Development Cost

  • 0. 71 = 75 697 / 107 250

  • (70 200*0.05)+ 70 200

  • 1500520.9

Part 2: Activity Planning, Project Scheduling & Techniques, Project Control

Work Breakdown Structure (WBS)

• For completing projects on time, within budget, and including the features promised, a project needs to be broken down into smaller tasks or activities – work breakdown structure (WBS).

• Time is estimated for each task or activity.

• Can be developed using a top-down or bottom-up approach.

  • Two opposite approaches could lead to the same result.

• Can be product-oriented or process-oriented.

• PHASES - TASK/ACTIVITIES - STEPS - Smaller Units

Top-Down Approach

• Enter deliverables first and then determine all the tasks needed to accomplish them.

• Experienced project managers.

Bottom-Up Approach

• Brainstorm about all the tasks and then group them under deliverables.

• Novice project managers.

Top-Down Approach vs. Bottom-Up Approach

WBS Properties

• Each task or activity contains one deliverable, or tangible outcome, from the activity.

• Each task can be assigned to a single individual or a single group.

• Each task has a responsible person monitoring and controlling performance.

WBS Levels

• Level 1

  • Entire System

  • Program Element, Project, or Subprogram

• Level 2

  • Major Elements of the System

  • Top-Level Aggregations of Services or Data

• Level 3

  • Subordinate Items to Level 2 Elements

  • Generally Common Across Similar Programs

Project Planning and Control

• Planning includes:

  • Selecting a systems analysis team, assign members.

  • Estimating time required to complete each task.

  • Scheduling the project.

• Control means using feedback to monitor project, including:

  • Comparing the plan for the project with its actual evolution.

  • Taking appropriate action to expedite or reschedule activities.

Planning Steps

1. Project is broken down into phases.

2. Further project is broken down into tasks or activities.

3. Finally project is broken down into steps or even smaller units.

4. Time is estimated for each task or activity.

5. Most likely, pessimistic, and optimistic estimates for time may be used.

What Does a WBS Look Like?

• Hierarchy Diagram Format

• List Format

• Table of Contents Format

A Sample of WBS

1. 0 Project Initiation

   1. 0 Conduct hesasral research about the business

   2. 0 Discuss on jectives with client

2. 0 Early Planning Phase

   1. 1 Investigate fatality

   2. 2 Consider a make so buy decision

   3. 3 Develop a work down structure

   4. 4 Provideentes

   5. 5 Design a project schedule

   6. 6 Calculate cost estimates

   7. 7 Propose project proposal to client

   8. Present proposal to client

3. 0 Develop supporting plans

   1. 1 Develop a quality management plan

   2. 2 Identify risks and build a risk management plan

   3. 3 Describe a communication plan

   4. 4 Designing a procurement plat

4. 0 Assessment

   1. 1 Conduct interviews of key personnel

   2. 2 Administer qutares

   3. 3 Read companyes

   4. 4 Analyze data now

5. 0 Design

   1. 1 Build protest website

   2. 2 Obtain reactions from client

   3. 3 Medify anototype website

   4. 4 Sex final recommendations from client

   5. 5 Compile website

6. 0 Launch

   1. 1 Create training manual

   2. 2 Document website features and c

   3. 3 Power fal website to start

Product-Oriented WBS

• Residential Project

  • Plans, Specs, and Permits

    • Permits

    • Plans and Drawings

    • Specifications

  • Sub-Structure

    • Excavated Area

    • Footings and Foundations

    • Other Concrete Structures

  • Super-Structure

    • Wooden Structure

    • Roof Deck

  • Enclosure

    • Doors and Windows

    • Masonry Walls

    • Siding and Facade

  • Interior Finishes

  • Utilities

    • Electrical Systems

    • Mechanical Systems

    • Other Utilities

Process-Oriented WBS

• Piping Project

  • Project Administration

    • Project Management

    • Safety Management

    • Quality Control and Assurance

  • Design

    • Preliminary Design

    • Detailed Design

  • Excavate

    • Survey

    • Demolition

    • Trenching

    • Support of Excavation

  • Install

    • Pipe installation

    • Equipment installation

    • Insulate

  • Inspect

    • Initial Inspection

    • Pre-commissioning

    • Commissioning

  • Backfill

Benefits of the WBS

1. A WBS helps to define the project scope and identify all of the work that needs to be done.

   • This helps to ensure that nothing is left out of the project plan.

2. A WBS helps to organize the project into smaller, more manageable components.

   • This makes it easier to plan, schedule, and control the project.

3. A WBS helps to identify the resources (e.g., people, materials, equipment) needed to complete each task.

   • This helps to ensure that the necessary resources are available when they are needed.

4. A WBS helps to identify the dependencies between tasks.

   • This allows project managers to identify potential bottlenecks and make appropriate plans to address them.

5. A WBS can be used to track progress and measure the completion of project deliverables.

   • This allows project managers to monitor the project and make any necessary adjustments to keep the project on track.

Project Scheduling Techniques

• Gantt Charts

• PERT diagrams

• Critical Path Method

Project Scheduling Techniques #1: Gantt Charts

• Chart in which bars represent tasks or activities

• Advantages:

  • Simple: easy to understand

  • Worthwhile communication with end user.

  • Drawn to scale: sequence of activities/tasks with length durations

  • Assign more than 1 role to specific task names

Gantt Chart (2 Dimensions)

• Using a two-dimensional Gantt chart for planning activities that can be accomplished in parallel

Step on How to Develop Gantt Chart

1. Select a Tool

   • Choose software tools that suit your project needs.

2. List Tasks

   • Input all tasks from your WBS into the tool.

3. Define Durations

   • Assign duration to each tasks.

4. Sequence Tasks

   • Identify which tasks need to happen in order.

5. Set Task Dependencies

   • Link tasks that cannot start until a preceding task has finished.

6. Assign Resources

   • Allocate resources to tasks including team members, materials, etc.

7. Identify Milestones

   • Mark key milestones or achievements in the project.

8. Review and Adjust

   • Examine the Gantt chart for potential issues.

9. Update as Needed

   • Keep the Gantt chart updated throughout the project lifecycle.

Project Scheduling Techniques #2: PERT diagram

• Program Evaluation and Review Technique (PERT)

• Program = project

• Useful when activities can be done in parallel rather than sequence.

• Sometimes known as Network diagram

• Represented by a network of nodes and arrows

  • nodes denote events & arrows denote activities

• Nodes

  • called event, identified by numbers, letters etc

  • To recognize that an activity is completed

  • Indicate which activities need to be completed before new activities maybe undertaken (precedence)

  • A,3 - means Activity A has a duration of 3 days/weeks/months

Project Scheduling Techniques #2: PERT diagram

• Advantages:

  • Easy identification of the order of precedence.

  • Easy identification of the critical path and thus critical activities.

  • Easy determination of slack time.

• Occasionally, PERT Diagram needs pseudo-activities, referred to as dummy activities

  • It is used to preserve the logic or clarify the diagram.

Example: How to develop PERT diagram for the following activities in Analysis Phase?

Project Scheduling Techniques #2: PERT diagram – dummy activities

• Occasionally, PERT Diagram needs pseudo-activities, referred to as dummy activities

• It is used to preserve the logic or clarify the diagram.

Project Scheduling Techniques #3: CRITICAL PATH METHOD (CPM)

• CPM is a project network analysis technique used to predict total project duration.

• The critical path is the longest path through the network diagram and has the least amount of slack or float.

• A critical path for a project is the series of activities that determines the earliest time by which the project can be completed.

Finding the Critical Path

• First develop a good project PERT diagram.

• Add the durations for all activities on each path through the project network diagram.

• The longest path is the critical path.

• Note:

  • If one or more activities on the critical path takes longer than planned, the whole project schedule will slip unless corrective action is taken.

• There can be more than one critical path if the lengths of two or more paths are the same.

• The critical path can change as the project progresses.

Determining the Critical Path for Project

*Since the critical path is the longest path through the network diagram, Path 2, B-E-H-J, is the critical path for Project X.

CPM Example

• Consider the following project network diagram. Assume all times are in days:

  • How many paths are on this network diagram?

  • How long is each path?

  • Which is the critical path?

  • What is the shortest amount of time needed to complete this project?

Controlling Changes to the Project Schedule

• Perform reality checks on schedules.

• Allow for contingencies.

• Don’t plan for everyone to work at 100% capacity all the time.

• Hold progress meetings with stakeholders and be clear and honest in communicating schedule issues.

Controlling Changes to the Project Schedule Things to Consider

• Timeboxing

  • Timeboxing sets an absolute due date for project delivery.

  • The most critical features are developed first and implemented by the due date.

  • Other features are added later.

• Staffing Requirement

  • Choice of software can influence the amount of effort that goes into system development.

  • It is not true that the more people assigned to a task, the faster it will get done.

• Managing Risks

  • 30 percent of all projects succeed.

  • 20 percent fail.

  • 50 percent finish, but are either late, over budget, or offer fewer features than originally promised.

Part 3: Team Management

Managing Team

• Assembling a team.

• Team communication strategies.

• Project productivity goals.

• Team member motivation.

Team Management #1: Assembling a Team

• Shared value of teamwork

• Good work ethic

• Honesty

• Competency

• Readiness to take on leadership based on expertise

• Motivation

• Enthusiasm for the project

• Trust of teammates

Team Management #2: Communication Strategies

• Teams often have two leaders:

  • One who leads members to accomplish tasks.

  • One concerned with social relationships.

• The systems analyst must manage:

  • Team members.

  • Their activities.

  • Their time and resources.

Team Management #3 & #4: Project Productivity Goals and Motivation

• Successful projects require that reasonable productivity goals for tangible outputs and process activities be set.

• Goal-setting helps to motivate team members.

Team Management

• Assembling a team.

  • Shared value of team work

  • Good work ethic

  • Honesty

  • Competency

  • Readiness to take on leadership based on expertise

  • Motivation

  • Enthusiasm for the project

  • Trust of teammates

• Team communication strategies.

  • Teams often have two leaders – (1) one who leads members to accomplish tasks AND (2) one that concerned with social relationships.

  • The systems analyst must manage the team members, their activities, and their time and resources.

• Project productivity goals.

  • Goal-setting helps to motivate team members

  • Successful projects require that reasonable productivity goals for tangible outputs and process activities be set

• Team member motivation.

Project Charter

• Describes in a written document what the expected results of the systems project are and the time frame for delivery.

• Written narrative that clarifies several questions such as:

  • What does the user expect of the project?

  • What is the scope?

  • What analysis methods will be used?

  • Who are the key participants?

  • What are the project deliverable?

Avoiding Project Failures

• Project failures may be prevented by:

  • Training.

  • Experience.

  • Learning why other projects have failed.