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Systems Analysis and Systems Analysis and DesignDesignwith UML Version 2.0with UML Version 2.0An Object-Oriented Approach, An Object-Oriented Approach, Second EditionSecond Edition

Chapter 3: Project InitiationAlan Dennis, Barbara Wixom, and David Tegarden

John Wiley & Sons, Inc.

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PROJECT INITIATION

Chapter 3

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Key Ideas Project initiation begins when

someone sees an opportunity to create business value from using information technology.

Feasibility analysis is used to aid in the decision of whether or not to proceed with the IS project.

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Key Ideas The project sponsor is a key person

proposing development or adoption of the new information technology . Many organizations keep on eye on

emerging technology As a first mover

The approval committee reviews proposals from various groups and units in the organization and decides which to commit to developing.

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IDENTIFYING BUSINESS VALUE

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System Request

It is a document that describes the business reasons for building a system and the value to provide.

Lists key elements of the project Project name Project sponsor Business need Functionality Expected value Special issues or constraints

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Elements of the System Request Form

Project sponsorThe person who initiates the project

Members of the Finance Dept, IT Manager, CIO, Vice President of Marketing

Business NeedThe business-related reason for initiating the system

Increase sales Improve market share Improve customer service Decrease product defects

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Cont’Functionality

The capabilities that the system will provide

Provide online access Produce management report Capture customer demographic information

Expected Value The benefits that the system will create for

the organization 3 percent increase in sales 1 percent increase in market share

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Cont’

Special IssuesIssues that are relevant to the implementation of the system and committee make decisions about the project

System needed in time for the Christmas holiday season

Government-mandated deadline for May 30.

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An ongoing-case study used to illustrate concepts presented in the text

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Your Turn

If you were building a web-based system for course enrollment --

What would be the functionality?What would be the expected value?What special issues or constraints would you foresee?

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FEASIBILITY ANALYSIS

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Feasibility Analysis

Once the need for the system and its business requirements have been defined feasibility analysis

Detailing Expected Costs and Benefits Technical feasibility Economic feasibility Organizational feasibility

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Technical Feasibility:Can We Build It?

Familiarity with applicationKnowledge of business domain

If analysts are unfamiliar with the business application area, they have a greater chance of misunderstanding the users or missing opportunities for improvement.

Familiarity with technologyExtension of existing firm technologies

Project sizeNumber of people, time, and features

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Economic FeasibilityShould We Build It?

Development costsAnnual operational costsAnnual benefitsIntangible costs and benefit

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Steps to Conducts Economic Feasibility

Identify Costs and BenefitsAssign Values to Costs and BenefitsDetermine Cash FlowDetermine Net Present ValueDetermine Return on InvestmentCalculate Break-Even PointGraph Break-Even Point

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Expected Value

Costs Benefits

Tangible

Intangible

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Cash Flow Method for Cost Benefit Analysis

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Total (benefits - costs)

Return on Investment Calculation

Total costs

RETURN ON INVESTMENT EQUALS

Divided by

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Net Present Value Calculation

(1 + interest rate)n

Some amount of money

PRESENT VALUE EQUALS

Divided by

Where “n” equals the number of periods

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Organizational FeasibilityIf we build it, will they come?

There are two ways to assess:How well the goal of the project align with business objectives

Strategic alignment

Stakeholder analysis Project champion(s)

A high-level non-IS executive who created the system request.

Organizational management System users

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SummaryProject initiation involves creating and assessing goals and expectations for a new system

Identifying the business value of the new project is a key to successThe system request describes an overview of the proposed system.The feasibility study is concerned with insuring that technical, economic, and organizational benefits outweigh costs and risks

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Project Management

Chapter 4

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Refresh…Project initiation involves creating and assessing goals and expectations for a new system

Identifying the business value of the new project is a key to successThe system request describes an overview of the proposed system.The feasibility study is concerned with insuring that technical, economic, and organizational benefits outweigh costs and risks

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Key Definitions

Project management is the process of planning and controlling the development of a system within a specified timeframe at a minimum cost with the right functionality.A project manager has the primary responsibility for managing the hundreds of tasks and roles that need to be carefully coordinated.

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IDENTIFYING PROJECT SIZE

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Estimation Trade-offs

Size(what it does)Function pointsLines of code

Time (when the project will be finished)

Months

Cost

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Trade-offs

In the beginning of the project, the manager needs to estimate the factors.The estimates developed at the start of a project are based on a range of possible value, and gradually become more specific.

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Two Basic Ways to Estimate the Time

The amount of time spent in the planning phase to predict the time required for the entire project.

We take the time spent in the planning phase and use industry standard percentage to calculate estimates for the other SDLC phaseFrom the past experiences

Function Point Approach

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Estimating a Project Based on Industry Information

Planning Analysis Design Implementation

IndustryStandardFor Business 15% 20% 35% 30%Applications

Actual Estimated Estimated EstimatedTimeRequired 4 5.33 9.33 8in PersonMonths

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Function Point Approach

It is more complex and has three steps: The project manager estimates the size of the

project - - the number of lines of code the new system required

The size estimate is then converted into the amount of effort required to develop - – the number of person-month

The estimated effort is then converted into an estimated schedule time - – the number of months

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Time Estimation Using a More Complex Approach

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Step 1. Estimate System Size

A function point is a measure of program size based on the system’s number and complexity of inputs, outputs, queries, files, and programs interfaces.

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Function Point Estimation-- Step One

Complexity

Description Low Medium High Total

Inputs __x 3 __x 4 __x 6 ____

Outputs 19 4 x 4 10 x 5 5 x 7 ____

Queries __x 3 __x 4 __x 6 ____

Files __x 7 __x 10 __x 15 ____

Program __x 5 __x 7 __x 10 ____Interfaces

TOTAL UNADJUSTED FUNCTION POINTS __338__

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Function Points Estimation-- Step Two

Scale of 1 to 5

Data Communications __3___Heavy Use Configuration __0___Transaction Rate __0___End-User efficiency __0___Complex Processing __0___Installation Ease __0___Multiple sites __0___Performance __0___Distributed functions __2___On-line data entry __2___On-line update __0___Reusability __0___Operational Ease __0___Extensibility __0___

Project Complexity (PC) __7___

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Function Points Estimation

Adjusted Project Complexity =.65 + (0.01 * Project Complexity)

Note: .65= very simple system; 1.00 = normal

Total Adjusted Function Points =

Adjusted Project Complexity * TUFP

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Function Point Estimation -- Step 3

Processing Complexity (PC): ____7____(From Step 2)

Adjusted Processing Complexity (APC) = 0.65 + (0.01 * __7__ )

= 0.72Total Adjusted Function Points: __0.72___ * _338___ = 243 (TUFP -- From Step 1)

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Converting Function Points to Lines of Code: Step 4

Source: Capers Jones, Software Productivity Research

Language LOC/Function Code Point

CCOBOLJAVAC++Turbo PascalVisual BasicPowerBuilderHTMLPackages (e.g., Access, Excel)

130110 55 50 50 30 15 1510-40

LOC = TAFP * LOC/FCP

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Step 2. Estimate Effort

Effort is a function of size and production rate (how much work someone can complete in a given time).COCOMO model

It is used to convert a lines-of-code estimate to a person-month estimate.

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COCOMO Estimation Calculation

Effort = 1.4 * thousands-of-(in Person- lines-of-codeMonths)

Example:

If LOC = 2000 Then...Effort = (1.4 * 2000) = 28

Person Months

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Step 3. Estimate Time Required

Rule of thumb for estimation

Schedule Time (months)

=

3.0 * person-months1/3

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Average staffing = Effort/Schedule time.

Average Staffing = 37.42 person-months/10 months = 4 persons.

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CREATING AND MANAGING THE WORKPLAN

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Workplan is a dynamic schedule that records and keeps track of all of the tasks that need to be accomplished over the course of the project.It lists each task, along with important information

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A Workplan Example

Work Plan Information Example

Name of task Perform economic feasibilityStart date ` Jan 05, 2001Completion date Jan 19, 2001Person assigned Mary Smith, sponsorDeliverable(s) Cost-benefit analysisCompletion status OpenPriority HighResources needed SpreadsheetEstimated time 16 hoursActual time 14.5 hours

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Identifying Tasks

MethodologyUsing standard list of tasks

SDLC Select the steps and deliverables

Consultants or booksTop-down approach

Identify highest level tasksBreak them into increasingly smaller units

Work Breakdown Structure (WBS) By SDLC or by product

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Top Down Task Identification

PhasesPhases with

high level steps

Work Plan Deliverables Estimated Actual Assignedhours hours To

****

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Tools

The Project PlanIt is a table that lists all of tasks in the work breakdown structure along with important task information

Duration of the task, the current status (open or complete), and the task dependencies.

Gantt ChartPERT Chart

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Gantt Chart

Go to Library

Go to Bookstore

Select and Purchase Book

Skim Book

Write Phase One

Read Book Carefully

Write Phase Two

Action Week 2 3 4 5 6 7 8 9 10 11 12 13

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Managing Scope

Scope creep -- a major cause of development problems (schedule and cost overruns)It happens when new requirement are added to the project after the original project scope was defined.

JAD and prototypingFormal change approvalCharging for changes

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Timeboxing

Another approach to scope managementFixed deadlineReduced functionality, if necessaryFewer “finishing touches”

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Timeboxing Steps

1. Set delivery dateDeadline should not be impossibleShould be set by development group

2. Prioritize features by importance3. Build the system core4. Postpone unfinished functionality5. Deliver the system with core functionality6. Repeat steps 3-5 to add refinements and enhancement

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STAFFING THE PROJECT

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Staffing The Project

Determining how many people should be assignedMatching people’s skills with the needsMotivating them to meet the objective

Minimizing the conflict.

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Key Definitions The staffing plan describes the kinds

of people working on the project The project charter describes the

project’s objectives and rules A functional lead manages a group of

analysts A technical lead oversees progress of

programmers and technical staff members

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Staffing Attributes Staffing levels will change over a

project’s lifetime Adding staff may add more overhead

than additional labor Keep team size of 8-10 reporting in a

hierarchical structure can reduce complexity

If more people are needed, create subteams. In this way, the project manager can keep the

communication effective

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Increasing Complexity with Larger Teams

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Motivation Assigning people isn’t enough, the project

managers need to motivate the people Use monetary rewards cautiously Use intrinsic rewards

Recognition Achievement The work itself Responsibility Advancement Chance to learn new skills

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CONTROLLING AND DIRECTING THE PROJECT

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CASE Tools

Initiation Analysis Design Implementation

Upper CASE Lower CASE

Integrated CASE (I-CASE)

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Procedural MetadataLogic

Diagrams ScreenDesigns

CASE Repository

CASE Components

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Standards

The team needs to work together, and things can get confusing.

Examples Formal rules for naming files Forms indicating goals reached Programming guidelines

Can you think of more examples?

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Documentation

Project binder Table of contents Continual updating

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Managing Risk

Risk assessment The process of assessing and

addressing the risks that are associated with developing a project.

Actions to reduce risk Providing training to the team

Revised assessment

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Classic Mistakes

Very optimistic schedule Failing to monitor schedule Failing to update schedule Adding people to a late project

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Summary

Project management is critical to successful development of new systems

Project management involves planning, controlling and reporting on time, labor, and costs.