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Lecture3010 3
Lecture3010 3
LECTURE 3:
Lecture Outline
IS Projects: Success and Failure Role of the Project Manager Project Management Tasks in SDLC Project Initiation and Project Planning Project Planning Activities Project Schedule Risks Management and Project Feasibility Financial Calculations Tangible and Intangible Benefits Staffing the Project Launching the Project
Project management important for success of system development project 2000 Standish Group Study
Only 28% of system development projects successful 72% of projects cancelled, completed late, completed over budget, and/or limited in functionality
Incomplete or changing requirements Limited user involvement Lack of executive support Lack of technical support Poor project planning Unclear objectives Lack of required resources
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Clear system requirement definitions Substantial user involvement Support from upper management Thorough and detailed project plans Realistic work schedules and milestones
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Internal Responsibilities
Develop the project schedule Recruit and train team members Assign team members to tasks Coordinate activities of team members and subteams Assess project risks Monitor and control project deliverables and milestones Verify the quality of project deliverables
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External Responsibilities
Report the projects status and progress Establish good working relationships with those who identify the needed system requirements
The people who will use the system
Work directly with the client (the projects sponsor) and other stakeholders Identify resource needs and obtain resources
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During project
Project execution management Project control management Project closeout
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Project Execution Management Following the project schedule Assigning and coordinating the work of project team Communicating with all project stakeholders
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Project Control Determining progress and taking corrective actions when necessary Assessing whether requests for scope changes are necessary Maintaining an outstanding issues list Resolving problems
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Project Closeout To smooth project shutdown Releasing team members for other assignments Finalizing the budget Reviewing or auditing the results of the projects
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Developed by The Project Management Institute (PMI) 9 knowledge areas: foundation information for every project manager Scope management
control functions included in system control scope of work done by team
Time management
Build detailed schedule of all project tasks Monitor progress of project against milestones
Cost management
Calculate initial cost/benefit analysis Monitor expenses
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Quality management
Establish quality plan and control activities for each project phase
Communications management
Identify stakeholders and their communications Establish team communications
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Risk management
Identify and review risks for failure Develop plans to reduce these risks
Procurement management
Develop requests for proposals (RFPs) Evaluate bids, write contracts, monitor performance
Integration management
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Driving forces/Reasons to start project Respond to opportunity Resolve problem Conform to directive
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Project initiation
Top-down projects. The optimal method is through the long-term IS strategic plan, that identifies the overall efforts of the organization to maintain a competitive positions and results in specific projects. Bottom-up projects. Individual department managers or process managers are close to the daily work. They often identify IS problems within their respective areas. Brought to the attention of the strategic planning committee, these needs are integrated into the overall business strategy. In case of immediate needs that cannot wait for the strategic plan (such as a new sales commission schedule or a new productivity report), the process manager may request initiation of individual development projects. Outside-forces project. Projects can be initiated to respond to outside forces. One common outside pressure is legislative changes such as changes in tax or labor law. These changes affect the strategic plan, resulting in an urgent need for new IS.
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Strategic IS plan directs project development priorities RMOs strategic plan is to build more direct customer contact, improve service, and expand the marketing presence Customer support system development selected as a top priority Customer support system (CSS) selected John MacMurty creates project charter Barbara Halifax project manager Steven Deerfield senior systems analyst Goal is to support multiple types of customer services (ordering, returns, online catalogs) Project charter describes key participants
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Review business needs Use strategic plan documents Consult key users Develop list of expected business benefits (i.e., results organization expects to achieve from the new IS) Identify expected system capabilities (at a general level) Define scope in terms of requirements Create system scope document (3 components: problem description, business benefits, system capabilities) Build proof of concept prototype (if new technology or new solutions) to show they are feasible and possible Create context diagram (scope of the IS): an IS, external entities and input/output information flows 28
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Each project consists of tasks, activities and phases. A phase is made up of a group of related activities An activity is made up of a group of related tasks A task is a smallest piece of work that is identified, named and scheduled The development of a project schedule involves three main steps:
Develop work breakdown schedule Build a PERT/Gantt chart Develop resource requirements and staffing plan
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Top-down: identify major activities first, then internal tasks Bottom-up: list all the tasks and organize them Analogy: from similar projects
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Project Scheduling
Developing a project schedule is a four-step process: (1) Project members identify all tasks for each activity (2) Estimation the size of the task: number of human resources, person-day required, calendar time required and any other specific resources (3) Determining the sequence of the tasks (4) Scheduling the tasks themselves There are special techniques and tools for project scheduling (e.g., MS Project)
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PERT/CPM Chart
PERT/CPM (Project Evaluation and Review Technique/Critical Path Method) chart: shows the relationships among tasks defines tasks that can be done concurrently shows the critical path (= the longest path of dependent tasks from the first task to the last task, i.e. the shortest completion period for the project) If any task on that path slips, then the entire project schedule will slip Other tasks (not on the critical path) usually have some slack time (the amount of time that the task can slip without affecting the schedule) Good to show dependencies and critical path but it is not easy to see the projects progress on a PERT chart
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Gantt chart
Gantt Chart: shows information for each task as horizontal bar chart where the vertical tick marks are calendar days and weeks: Doesnt show the dependencies of tasks A good tool for monitoring the progress of the project Tasks represented by horizontal bars Vertical tick marks are calendar days and weeks Shows calendar information in a way that is easy to track Bars may be colored or darkened to show completed tasks Vertical line indicates todays date
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http://www.getfunnypictures.com/crt052.html
MS software release
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Risk management Organizational and cultural feasibility Technological feasibility Schedule feasibility Resource feasibility Economic feasibility
Cost/benefit analysis Sources of funds (cash flow, long-term capital)
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Risk Analysis
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Positive steps should be undertaken to reduce the risks E.g.: additional training can be held to teach new procedures and provide increased computer skills
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Technological Feasibility
Does system stretch state-of-the-art technology? Does in-house expertise presently exist for development? Does an outside vendor need to be involved? Solutions include
Training or hiring more experienced employees Hiring consultants Changing scope and project approach
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Schedule Feasibility
Estimates needed without complete information Management deadlines may not be realistic Project managers
Drive realistic assumptions and estimates Recommend completion date flexibility Assign interim milestones to periodically reassess completion dates Involve experienced personnel Manage proper allocation of resources
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Resource Feasibility
Team
member availability Team skill levels Computers, equipment, and supplies Support staff time and availability Physical facilities
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Economic Feasibility
Cost/benefit analysis
Estimate project development costs Estimate operational costs after project Estimate financial benefits based on annual savings and increased revenues Calculate using table of costs and benefits
Uses net present value (NPV), payback period, return on investment (ROI) techniques
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Operating Costs
The following list identifies the major categories of costs that may be allocated to the operation of the new system: connectivity equipment maintenance computer operations programming support amortization of equipment training and ongoing assistance (e.g., help desk) supplies
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Sources of Benefits
Benefits usually come from two major sources: decreased costs increased revenues Unlike development costs, there are no standard benefits Sample of reduced costs: Reducing staff due to automating manual functions or increasing efficiency Maintaining constant staff with increasing volumes of work Decreasing operating expenses, such as shipping charges for emergency shipments Ensuring quicker processing and turnaround of documents or transactions Capturing lost discounts on money management Reducing bad accounts or bad credit losses Reducing inventory or merchandise losses due to tighter controls Collecting accounts receivables more quickly Capturing income lost due to stock outs with better inventory management Reducing the cost of goods with volume discounts and purchases Reducing paperwork costs with electronic data interchange and other automation 55
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Financial Calculations
Companies use a combination of methods: Fist approach, called the net present value (NPV), has two concepts: (1) all benefits and costs are calculated in terms of todays dollars (present value) (2) the future streams of benefits and costs are netted together and then discounted by a certain factor for each year in the future
beneficial is to determine the payback period, sometimes called the breakeven point. This is the point in time at which benefits becomes equal to the cost of development and operation Third economic measure is the return on investment (ROI). ROI shows a percentage return needed so that the costs and benefits are exactly equal over the specified time period.
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Readings
Todays lecture: Chapter 3 The Analyst as A Project Manager For next week: Chapter 4 Investigating System Requirements
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