Chapter 3 Managing the Information Systems Project Modern Systems Analysis and Design Sixth Edition.

Chapter 3 Managing the Information

Systems Project

Modern Systems Analysisand Design

Sixth Edition

A Brief Case Study: Denver International Airport

In 1988, Denver, Colorado embarked on a project to construct a state-of-the-art airport to replace the existing Stapleton Airport. Stapleton was viewed as incapable of expansion because of its location. The newly proposed airport would reduce costs of operation, allow for sufficient growth, and eliminate pollution and air traffic delays. The new airport, named Denver International Airport (DIA) was scheduled to open on October 31, 1993.

In the September 1994 issue of Scientific American, W. Wayt Gibbs chronicled the DIA as an example of a modern software crisis: "Denver's new international airport was to be the pride of the Rockies, a wonder of modern engineering. Twice the size of Manhattan, 10 times the breadth of Heathrow, the airport is big enough to land three jets simultaneously in bad weather. Even more impressive than its girth is the airport's subterranean baggage-handling system. Tearing like intelligent coal-mine cars along 21 miles of steel track, 4,000 independent "telecars" route and deliver luggage between the counters, gates and claim areas of 20 different airlines. A central nervous system of some 100 computers networked to one another and to 5,000 electric eyes, 400 radio receivers and 56 bar-code scanners orchestrates the safe and timely arrival of every valise and ski bag.

At least that is the plan. For nine months, this Gulliver has been held captive by Lilliputians-errors in the software that controls its automated baggage system. Scheduled for takeoff by last Halloween, the airport's grand opening was postponed until December to allow BAE Automated Systems time to flush the gremlins out of its $193-million system. December yielded to March. March slipped to May. In June the airport's planners, their bond rating demoted to junk and their budget hemorrhaging red ink at the rate of $1.1 million a day in interest and operating costs, conceded that they could not predict when the baggage system would stabilize enough for the airport to open “

Eventually the Denver International Airport (DIA) did open, but the advanced baggage system was only partially functioning. The four delayed openings of the airport caused many residents to speculate that DIA really stood for "Do It Again," "Doesn't Include Airlines," or "Done In April". In order to finally open the terminal, the city invested $51 million to install a conventional baggage system as a work around to the high-tech system. Ironically, the conventional system was completed four weeks ahead of schedule and $3.4 million under budget.

The obvious question is: why was the high-tech system so difficult to implement?

Video from MSNBC

Success Rate for IT Projects

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 604/11/23Chapter 2

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Importance of Project Management

Project management may be the most important aspect of systems development.

Effective PM helps to ensureThe meeting of customer expectations.The satisfying of budget and time constraints.

PM skills are difficult and important to learn.

7Chapter 3


Deciding on Systems Projects

System Service Request (SSR)A standard form for requesting or proposing

systems development work within an organization

Feasibility studyA study that determines whether a requested

system makes economic and operational sense for an organization

8Chapter 3


Managing the Information Systems Project Project

A planned undertaking of related activities to reach an objective that has a beginning and an end

Project managementA controlled process of initiating, planning,

executing, and closing down a project

9Chapter 3


Managing the Information Systems Project (cont.) Project manager

Systems analyst with management and leadership skills responsible for leading project initiation, planning, execution, and closedown

DeliverableThe end product of an SDLC phase

10Chapter 3


Project Management Activities

11Chapter 3

FIGURE 3-4A project manager juggles numerousactivities


Phases of Project Management Process

Phase 1: Initiation Phase 2: Planning/Controlling Phase 3: Execution/Controlling Phase 4: Closedown

12Chapter 3

Planning and Control

With no plan it is almost impossible to control the project Controlling involves tracking progress against a plan and modifying the

plan when variances are observed James Lewis refers to planning and control as the Siamese twins of

project management – codependent upon one another and inseparable

Controlling the Project

Control is exercised by comparing where you are to where you are supposed to be so that corrective action can be taken when there is a deviation.From J. P. Lewis, Fundamentals of Project Planning

Planning Asks …

What must be done? How will it be done? Who will do it? How long will it take? How much will it cost?

Strategies for Effective Planning Plan for planning

Good plans aren’t developed on an ad hoc basis Planning sessions should be carefully planned

The persons who will work the plan should participate in its development

Expect to change the plan Conditions change New information is discovered

Risk management should be included Understanding the purpose of the planning

Accurate and clear problem statement SMART objectives How are the objectives to be achieved?

Components of a Project Plan Problem statement Mission statement Project objectives Project deliverables Acceptance criteria Communication plan Work breakdown structure Schedule Budget Resource requirements Change and control system Risk assessment plan

From the Project Charter

SMART objectives

The Plan versus a Schedule

The plan Defines the activities Documents the interaction between activities Estimates the duration for completing each activity Analyzes the sequences, duration and resource

requirements to crate a project schedule The schedule

Determine start and finish dates for project activities Often must be iterated(along with processes that are

the input) especially the duration estimating

Project Planning Techniques

Provide regular status updates to stakeholders Include team members in planning sessions and plan preparation Provide various alternatives to management

Scope constrained alternatives Time constrained alternatives Resources alternatives

Plan to plan Obtain plan approval before beginning execution


PM Phase 1: Project Initiation

Assess size, scope and complexity, and establish procedures.

Establish: Initiation team Relationship with customer Project initiation plan Management procedures Project management environment Project workbook

21Chapter 3


PM Phase 2: Project Planning

Define clear, discrete activities and the work needed to complete each activity

Tasks Define project scope, alternatives, feasibility Divide project into tasks Estimate resource requirements Develop preliminary schedule Develop communication plan Determine standards and procedures Identify and assess risk Create preliminary budget Develop a statement of work Set baseline project plan

22Chapter 3


Some Components of Project Planning Statement of Work (SOW)

“Contract” between the IS staff and the customer regarding deliverables and time estimates for a system development project

The Baseline Project Plan (BPP) Contains estimates of scope, benefits, schedules,

costs, risks, and resource requirements Preliminary Budget

Cost-benefit analysis outlining planned expenses and revenues

23Chapter 3


Some Components of Project Planning (cont.) Work Breakdown Structure (WBS)

Division of project into manageable and logically ordered tasks and subtasks

Scheduling DiagramsGantt chart: horizontal bars represent task

durationsNetwork diagram: boxes and links represent

task dependencies

24Chapter 3

Task List Initial attempt to define the work to be done

List can enhance brainstorming about project work

Need not be in any particular order at first

Task lists are driven by project objectives

High-Level Work Breakdown Structure

A deliverables-oriented grouping of the full scope of work for a project.

Helps confirm a common understanding of the full scope of the project.

Any work not included in the WBS is not included in the scope of the project.

DeliverableLevel 1

Deliverable Level 2

Deliverable Level 2

Deliverable Level 2

Deliverable Level 3

Deliverable Level 3

Deliverable Level 3

Work Breakdown Structure

Developed by identifying the high-level deliverables and then successively subdividing that deliverable into increasingly detailed and manageable subsidiary deliverables or components.

A WBS is not the work, but the actual deliverables required for the project

DeliverableLevel 1

Deliverable Level 2

Deliverable Level 2

Deliverable Level 2

Deliverable Level 3

Deliverable Level 3

Deliverable Level 3

Work Breakdown Structure (WBS) Uses the task list as its basic input Organizes task list into a hierarchical

structure May group tasks from task list as it

organizes Validate against task list and project

objectivesTask List

Work BreakdownStructure

From Task List to WBS

Task List

Task ATask BTask CTask DTask ETask F

WBS

Overall Task

SubTask 1 SubTask 2 Task B

Task C Task A

Task E Task D

SubTask 2.1 Task F

Generic Tree Structure

1.0 Deliverable

1.2 Work PackagePackage 2



2.0 Deliverable




1.2.2 Activity 2

1.2.3 Activity 3

1.2.1 Activity 1

1.2.2.3Task 3

1.2.2.1Task 1

1.2.2.2 Task 2

PROJ ECT XYZ

2.2.2 Activity 2

2.2.3 Activity 3

2.2.1 Activity 1

2.2.2.3Task 3

2.2.2.1Task 1

2.2.2.2 Task 2

By Stage2.0 Kickoff

3.0 Scope

PROJ ECT XYZ

1.0 Initiation

1.1 Project

Documentation

2.1.2 Project

Organization

2.1.3 Project Constraints

2.1.1 Project Purpose

Statement

2.1 Project

Charter Draft

1.1.2 Project Journal

1.1.3 Issue Log

1.1.1 Common Folder on

Share Drive

2.2.2 Areas Involved

2.2.1 Validate Leadership

Roles

2.2 Kickoff

Meeting

3.1.2Objectives & Approaches

3.2 Risk

Management Plan

3.1.1 High-level Project

Schedule

3.1 Project Scope

Document

3.2.1 Risk Matrix

3.2.2 Residual & Secondary Risks

3.3 Context Diagram

Project Management Deliverables

Outline1. Initiation

1.1 Project Documentation1.1.1 Common Folder on Shared Drive1.1.2 Project Journal1.1.3 Issue Log

2. Kickoff2.1 Project Charter Draft

2.1.1 Project Purpose2.1.2 Project Constraints2.1.3 Project Organization

2.2 Kickoff Meeting2.2.1 Validate Leadership Roles2.2.2 Areas Involved

3. Scope3.1 Project Scope Document

3.1.1 High-level Project Schedule3.1.2 Objectives and Approaches

3.2 Risk Management Plan3.2.1 Risk Matrix3.2.2 Residual & Secondary Risks

3.3 Context Diagram

Ten Step Planning Process

1. Identify your business requirements, objectives, and approaches.

2. Build your WBS3. Brainstorm the tasks required to

create deliverables.4. Sequence your task.5. Look at the relationships &

dependencies.

6. Identify resources for each task.7. Estimate time required for each

task.8. Remember control is primary

consideration.9. Convert the data into a project

schedule.10. Review the project schedule with

the project team.


Scheduling Diagrams Gantt Chart

Special-purpose project management software is available for this.

34Chapter 3

FIGURE 3-10Gantt chart showing project tasks, duration times for those tasks, and predecessors


Scheduling Diagrams Network Diagram

Special-purpose project management software is available for this.

35Chapter 3

FIGURE 3-13A network diagram illustrating tasks with rectangles (or ovals) and the relationships and sequences of those activities with arrows


Preliminary Budget

Spreadsheet software is good

for this.

36Chapter 3

FIGURE 3-15A financial cost and benefit analysis for a systems development project

More on this later


PM Phase 3: Project Execution

Plans created in prior phases are put into action.

ActionsExecute baseline project planMonitor progress against baseline planManage changes in baseline planMaintain project workbookCommunicate project status

37Chapter 3


Monitoring Progress with a Gantt Chart

Red bars indicate critical path; lines through bars indicate percent complete.

38Chapter 3

FIGURE 3-17Gantt chart with tasks 3 and 7 completed


PM Phase 4: Project Closedown

Bring the project to an end Actions

Close down the project.Conduct post-project reviews.

“Lessons Learned”

Close the customer contract.

39Chapter 3


Representing and Scheduling Project Plans

Gantt Charts Network Diagrams PERT Calculations Critical Path Scheduling Project Management Software

40Chapter 3


Gantt Charts vs. Network Diagrams

Gantt charts Show task durations. Show time overlap. Show slack time in duration.

Network diagrams Show task dependencies. Do not show time overlap, but show parallelism. Show slack time in boxes.

41Chapter 3

Project Scheduling with PERT/CPM Charts Complex Task Patterns

When various task patterns combine, you must study the facts carefully in order to understand the logical sequence of tasks

A systems analyst must understand that project calculations will not be accurate unless the underlying task pattern is logically correct

Project Scheduling with PERT/CPM Charts The Program Evaluation Review

Technique (PERT) Critical Path Method (CPM) The important distinctions between the two

methods have disappeared over time, and today the technique is called either PERT, or CPM, or PERT/CPM


Estimating Task Duration

PERT: Program Evaluation Review Technique

Technique that uses optimistic (o), pessimistic (p), and realistic (r) time estimates to determine expected task duration

Formula for Estimated Time:ET = (o + 4r + p)/6

Effort and Duration


Effort defines the total required number of time units (often measured in hours) to complete a task

Duration refers to the calendar time (often in days or weeks) required to complete task

Effort is distributed over a duration This is done by assigning some particular number of

persons to the task at various times Or, we can assign percentages of one or more persons’

time to the task at various times

Effort, Duration, and Resource Allocation

For example, a 750 hour effort would have a 10-week duration if 2 persons were allocated to it fulltime (assuming a fulltime week = 37.5 hours) for that period

However, this same effort could result in drastically different durations, with different resource allocations: 40 weeks – if 50% of a person’s time is allocated to it 20 weeks -- if 1 person is allocated to it fulltime 15 weeks -- with1 person fulltime for 10 weeks, then 2 persons

fulltime for the next 5 weeks 5 weeks – with 4 persons allocated to it fulltime

48

Activity Consider the following WBS (next slide) for a project

(Note that tasks would have meaningful full names and not just letters in a real WBS – we use letters here to make this exercise more compact.)

The numbers given in each rectangle indicate the number of days of effort estimated to be required to do the task.

When a task has subtasks, the value given for the parent task is the additional number of days to coordinate/integrate the subtasks.

49

Activity

Project

10 30A B

70 120 15 30

20 40

90 100

C D E F

G H

I J

Note: This means that E and F are subtasks of task B, etc.

In using a WBS to estimate effort, we would typically estimate the lowest level tasks first, then work upward. This is called bottom-up estimating.

What is the total effort estimated for the entire project?Can you say how long the project will take?

Explain.What if 2 people work on the project full time (37.5 hours each per week)?


Critical Path Scheduling

A scheduling technique whose order and duration of a sequence of task activities directly affect the completion

Critical path: the shortest time in which a project can be completed

Slack time: the time an activity can be delayed without delaying the project


FIGURE 3-25A network diagram that illustrates the activities (circles) and the sequence (arrows) of those activities

Critical Path Example

Network diagram shows dependencies

51Chapter 3

Project Scheduling with PERT/CPM Charts Overview of PERT/CPM

PERT/CPM is called a bottom-up techniqueProject tasksOnce you know the tasks, their duration, and

the order in which they must be performed, you can calculate the time that it will take to complete the project

Project Scheduling with PERT/CPM Charts PERT/CPM Chart Format

Task boxT (task duration, or time) ES (earliest start) EF (earliest finish) – expected project durationLF (latest finish) LS (latest start)

Project Scheduling with PERT/CPM Charts

PERT/CPM Chart FormatTask boxD (task duration or time)ES (earliest start) EF (earliest finish) LF (latest finish) LS (latest start)

Task

EF

D Slack or float

LS LF

ES

CPM Diagram Nodes -- Example

4 weeks

Task

7 weeks

3 weeks 2 weeks

6 weeks 9 weeks

Add this type of information for each node

Duration(Must be known)

float (= 9 – 7 or = 6 – 4)(slack)

early start(determined byearliest finish for all preceding activities)

late start(= 9 – 3)

early finish (= 4 + 3)

late finish (determinedby the latest start forall succeeding activities)

1

2

3

Project Scheduling with PERT/CPM Charts Critical Path

Slack time If any task along the critical path falls behind

schedule, the entire project is delayedA critical path includes all tasks that are vital

to the project schedule




Using Project Management Software Many powerful software tools exist for

assisting with project management. Example: Microsoft Project can help with

Entering project start date.Establishing tasks and task dependencies.Viewing project information as Gantt or

Network diagrams.

59Chapter 3


Project Start Date

60Chapter 3

FIGURE 3-28Establishing a project starting date in Microsoft Project for Windows


Entering Tasks

61Chapter 3

FIGURE 3-29Entering tasks and assigning task relationships in Microsoft projectfor Windows


Viewing Network Diagram

Hexagon shape indicates a milestone.

Red boxes and arrows indicate critical path (no slack).

62Chapter 3

FIGURE 3-30Viewing project information as a network diagram in Microsoft Project for Windows


Viewing Gantt Chart

Black line at top indicates a summary activity (composed of subtasks).Diamond shape indicates a milestone.

63Chapter 3

FIGURE 3-31Gantt chart showing progress of activities (right frame) versus planned activities (left frame)


Summary In this chapter you learned how to:

Explain the process of managing an information systems project.

Describe the skills required to be an effective project manager.

List and describe the skills and activities of a project manager during project initiation, project planning, project execution, and project closedown.

Explain what is meant by critical path scheduling and describe the process of creating Gantt charts and network diagrams.

Explain how commercial project management software packages can be used to assist in representing and managing project schedules.

64Chapter 3

Chapter 3 Managing the Information Systems Project Modern Systems Analysis and Design Sixth Edition.

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