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Modern Systems Analysis
and Design
Fifth Edition
Jeffrey A. Hoffer
Joey F. George
Joseph S. Valacich
Chapter 3
Managing the Information
Systems Project
Learning Objectives

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 execution, and
project closedown.
Chapter 3
© 2008 by Prentice Hall
2
Learning Objectives (Cont.)

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.
Chapter 3
© 2008 by Prentice Hall
3
Pine Valley Furniture (PVF)

Manufactures high-quality wood furniture

Distributes to retail stores within the U.S.

Started in the early 1980s and expanded by
1984 doubling sales volume

By 1990, Pine Valley Furniture had become a
complex company, employing over 50 persons
Chapter 3
© 2008 by Prentice Hall
4
Pine Valley Furniture (Cont.)

Company organized into functional areas:
 Manufacturing
(Fabrication, Assembly, Finishing)
 Sales
 Orders
 Accounting
 Purchasing

Established manual information systems
Chapter 3
© 2008 by Prentice Hall
5
Pine Valley Furniture (Cont.)

PVF installed a network server to automate
invoicing, accounts receivable, and inventory
control applications.

In the late 1990s, PVF upgraded the network
server and implemented a centralized database
management system.
Chapter 3
© 2008 by Prentice Hall
6
Fig. 3-1 Computer applications at PVF
7
Pine Valley Furniture (Cont.)

PVF decided to develop its application software
in-house.

PVF hired staff and bought computer software
and hardware.

The new information system will take into
account market conditions, the Internet, and
WWW.

The Project Manager plays the key role in
developing the new information system.
Chapter 3
© 2008 by Prentice Hall
8
Managing the
Information Systems Project

A Project Manager is a systems analyst with a
diverse set of skills – management, leadership,
technical, conflict management, and customer
relationship – who is responsible for initiating,
planning, executing, and closing down a project.
Chapter 3
© 2008 by Prentice Hall
9
Managing the
Information Systems Project (Cont.)

The project manager’s environment is one of
continual change and problem solving.

The project manager’s understanding of the
project management process is critical.

Juanita Lopez and Chris Martin are the project
managers for Pine Valley Furniture.
Chapter 3
© 2008 by Prentice Hall
10
Managing the Information Systems
Project (Cont.)

Project – a planned undertaking of related
activities to reach an objective that has a
beginning and an end

Deliverable – an end product of an SDLC
phase
Chapter 3
© 2008 by Prentice Hall
11
Managing the Information Systems
Project (Cont.)

System Service Request (SSR) – a
standard form for requesting or proposing
systems development work within an
organization

It includes the contact person, a problem
statement, a service request statement, and
liaison contact information.
Chapter 3
© 2008 by Prentice Hall
12
Fig 3-2 SSR for purchasing fulfillment system
13
Managing the Information Systems
Project (Cont.)
Feasibility Study: A study that determines
if the proposed information system makes
sense for the organization from an
economic and operational standpoint.
14
Managing the Information Systems
Project (Cont.)
Project management: a controlled
process of initiating, planning, executing,
and closing down a project.
 Project Management Process

 Initiating
the Process.
 Planning the Project.
 Executing the Project.
 Closing down the Project.
Chapter 3
© 2008 by Prentice Hall
15
Project Management Activities
Chapter 3
© 2008 by Prentice Hall
16
Initiating a Project

Project initiation – the first phase of the
project management process in which activities
are performed to assess the size, scope, and
complexity of the project and to establish
procedures to support later project activities
Chapter 3
© 2008 by Prentice Hall
17
Fig. 3-5 Six project initiation activities
18
Initiating a Project (Cont.)

The process of project initiation includes, establishing
and developing:
 An

A
initiation team
Organize an initial core of project team members to assist in
accomplishing project initiation
relationship with the customer
A through understanding of customer
A
project initiation plan

Chapter 3
Define activities required to organize team
© 2008 by Prentice Hall
19
Initiating a Project (Cont.)
 Management

A

Chapter 3
procedures
Develop team communication and reporting
procedures
project management environment
Collect and organize tools that will be used to
manage project
© 2008 by Prentice Hall
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Initiating a Project (Cont.)
A

Chapter 3
project workbook
Project workbook – an online or hard-copy
repository for all project correspondence, inputs,
outputs, deliverables, procedures, and standards
that are used
© 2008 by Prentice Hall
21
Project Workbook
Chapter 3
© 2008 by Prentice Hall
22
Initiating a Project (Cont.)
A
Chapter 3
project charter

Project charter – a short, high-level document
prepared for both internal and external
stakeholders

It formally announces the establishment of the
project.

It briefly describes its objectives, key assumptions,
and stakeholders.
© 2008 by Prentice Hall
23
Planning the Project

Project planning – the second phase of the
project management process that focuses on
defining clear, discrete activities and the work
needed to complete each activity within a single
project
Chapter 3
© 2008 by Prentice Hall
24
Fig. 3-8 Project management activities
25
Planning the Project (Cont.)

Describe project scope, alternatives, and
feasibility:
 What
problems or opportunities does the project
address?
 What are the quantifiable results to be achieved?
 What needs to be done?
 How will success be measured?
 How will we know when we are finished?
Chapter 3
© 2008 by Prentice Hall
26
Planning the Project (Cont.)

Divide the project into manageable tasks:
Breakdown Structure (WBS) – the process of
dividing the project into manageable tasks and
logically ordering them
 Work
chart – a graphical representation of a project
that shows each task as a horizontal bar whose
length is proportional to its time for completion
 Gantt
Chapter 3
© 2008 by Prentice Hall
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Fig. 3-9 Gannt chart
28
Planning the Project (Cont.)
 The
Chapter 3
characteristics of a task:

Can be done by one person or a well-defined
group

Has a single and identifiable deliverable

Has a known method or technique

Has well-accepted predecessor and successor
steps

Is measurable so that percent completed can be
determined
© 2008 by Prentice Hall
29
Planning the Project (Cont.)

Estimate resources and create a resource plan:
Cost Model (COCOMO) – a widely
used method which uses parameters that are derived
from prior projects of differing complexity
 Constructive
 COCOMO
uses these different parameters to predict
human resource requirements for basic, intermediate,
and very complex systems.
Chapter 3
© 2008 by Prentice Hall
30
Planning the Project (Cont.)

Develop a preliminary schedule:
diagram – depicts project tasks and their
interrelationships
 Network
 Use
the information on tasks and resource availability
to assign time estimates to each activity in the work
breakdown structure
Chapter 3
© 2008 by Prentice Hall
31
Fig. 3-12 A network diagram
32
Planning the Project (Cont.)

Develop a communication plan:
 Who
 What
are the stakeholders for this project?
information does each stakeholder need?
 When,
and at what interval, does this information
need to be produced?
 What
sources will be used to gather and generate this
information?
 Who
will collect, store, and verify the accuracy of this
information?
Chapter 3
© 2008 by Prentice Hall
33
Planning the Project (Cont.)

Develop a communication plan (Cont.):
 Who
will organize and package this information into a
document?
 Who
will be the contact person for each stakeholder
should any questions arise?
 What
format will be used to package this information?
 What
communication medium will be most effective
for delivering this information to the stakeholder?
Chapter 3
© 2008 by Prentice Hall
34
Fig. 3-13 Project communication matrix
35
Planning the Project (Cont.)

Determine project standards and procedures:
 During
this activity, you will specify how various
deliverables are produced and tested by you and your
project team.
Chapter 3
© 2008 by Prentice Hall
36
Planning the Project (Cont.)

Identify and assess risk:
 The
goal of this activity is to identify sources of project
risk and to estimate the consequences of those risks.
Chapter 3
© 2008 by Prentice Hall
37
Planning the Project (Cont.)

Create a preliminary budget:
A
preliminary budget outlines the planned expenses
and revenues associated with your project.
Chapter 3
© 2008 by Prentice Hall
38
Fig. 3-14 Cost/benefit analysis
39
Planning the Project (Cont.)

Develop a Project Scope Statement:
 Developed
primarily for the customer
 Outlines
work that will be done and clearly describes
what the project will deliver
 Provides
a clear understanding of project size,
duration, and outcomes
Chapter 3
© 2008 by Prentice Hall
40
Planning the Project (Cont.)

Setting a Baseline Project Plan (BPP):
 Provides
an estimate of the project’s tasks and
resource requirements and is used to guide the next
project phase – execution
Chapter 3
© 2008 by Prentice Hall
41
Executing the Project

Project execution – the third phase of the
project management process in which the plans
created in the prior phases (project initiation and
planning) are put into action
Chapter 3
© 2008 by Prentice Hall
42
Fig. 3-15 Project execution activities
43
Executing the Project (Cont.)

Executing the Baseline Project:
 Initiate
the execution of project activities, acquire and
assign resources, orient and train new team
members, keep the project on schedule, and ensure
the quality of project deliverables
Chapter 3
© 2008 by Prentice Hall
44
Executing the Project (Cont.)

Monitor project progress against the Baseline
Project Plan (BPP)

Manage changes to the BPP:
A
slipped completion date for an activity
A
bungled activity that must be redone
 The
identification of a new activity that becomes
evident later in the project
 An
unforeseen change in personnel due to sickness,
resignation, or termination
Chapter 3
© 2008 by Prentice Hall
45
Executing the Project (Cont.)

Maintain the Project Workbook

Communicate the project status
 Meetings,
status reports, meeting minutes, seminars
and workshops, bulletin boards, memos, specification
documents, brown bag lunches, hallway discussions,
newsletters, and project workbook
Chapter 3
© 2008 by Prentice Hall
46
Closing Down the Project

Project Closedown – the final phase of the
project management process that focuses on
bringing a project to an end
 Closing
down the project
 Conducting
 Closing
Chapter 3
postproject reviews
the customer contract
© 2008 by Prentice Hall
47
Representing and Scheduling
Project Plans

Key differences between Gantt Charts and
Network Diagrams:
 Gantt
Chapter 3
charts

Network diagrams

Show task durations.


Show time overlap.


Show slack time in duration.

Show task dependencies.
Do not show time overlap, but
show parallelism.
Show slack time in boxes.
© 2008 by Prentice Hall
48
Fig. 3-18 Gannt chart vs network diagram
49
Representing Project Plans

Resources – any person, group of people, piece of
equipment, or material used in accomplishing an activity

Critical Path Scheduling – a scheduling technique
whose order and duration of a sequence of task activities
directly affect the completion date of a project

Critical Path – a sequence of task activities whose
order and durations directly affect the completion date of
a project.
Chapter 3
© 2008 by Prentice Hall
50
Representing Project Plans (Cont.)

Networking diagramming is a critical path
scheduling technique and used when tasks:
 Are
well-defined and have a clear beginning and end
point.
 Can
 Are
be worked on independently of other tasks.
ordered.
 Serve
Chapter 3
the purpose of the project.
© 2008 by Prentice Hall
51
Fig. 3-20 A network diagram
52
Calculating Expected Time
Durations using PERT

PERT (Program Evaluation Review
Technique) – a technique that uses optimistic,
pessimistic, and realistic time estimates to
calculate the expected time for a particular task.
Chapter 3
© 2008 by Prentice Hall
53
Calculating Expected Time
Durations using PERT (Cont.)

Formula for Estimated Time:
 ET

= (o + 4r + p)/6
Where
 ET
= expected time for the completion of an activity.
o
= optimistic completion time for an activity.
r
= realistic completion time for an activity.
p
= pessimistic completion time for an activity.
Chapter 3
© 2008 by Prentice Hall
54
Constructing a Gantt Chart and
Network Diagram for PVF

Here are the steps Pine Valley Furniture (PVF)
followed:
 Identify
each activity to be completed in the project.
 Determine
time estimates and calculate the expected
completion time for each activity.
 Determine
the sequence of activities and precedence
relationships among all activities by constructing a
Gantt chart and network diagram.
 Determine
Chapter 3
the critical path.
© 2008 by Prentice Hall
55
Fig. 3-21/ 22 SPTS
56
Fig. 3-23
57
Fig. 3-24
58
Determining the Critical Path for
Pine Valley Furniture

Calculate the earliest possible completion time for each
activity by summing the activity times in the longest
path to the activity. This gives total expected project
time.

Calculate the latest possible completion time for each
activity by subtracting the activity times in the path
following the activity from the total expected time. This
gives slack time for activities.
Chapter 3
© 2008 by Prentice Hall
59
Constructing a Gantt Chart and
Network Diagram for PVF (Cont.)

Slack time – the amount of time that an activity
can be delayed without delaying the project.

Free slack refers to the amount of time a task
can be delayed without delaying the early start
of any immediately following tasks.

Total slack refers to the amount of time a task
can be delayed without delaying the completion
of the project.
Chapter 3
© 2008 by Prentice Hall
60
Fig. 3-25
61
Fig. 3-26
62
Using Project Management
Software

Many powerful software tools exist for assisting with
project management.

Special-purpose project management software is also
available.

For example, Microsoft Project can help with

Establishing a project starting or ending date.

Entering tasks and assigning task relationships.

Selecting a scheduling method to review project reports.
Chapter 3
© 2008 by Prentice Hall
63
Using Project Management
Software (Cont.)

Microsoft Project Gantt Charts:
 Black
line at top indicates a summary activity
(composed of subtasks).
 Diamond

shape indicates a milestone.
Microsoft Project Network Diagrams:
 Hexagon
shape indicates a milestone.
 Red
boxes and arrows indicate critical path (no
slack).
Chapter 3
© 2008 by Prentice Hall
64
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 execution,
and project closedown.
Chapter 3
© 2008 by Prentice Hall
65
Summary (Cont.)

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.
Chapter 3
© 2008 by Prentice Hall
66