STUDENT IT: 0908966/1 DATE OF SUBMISSION:- 04/06/2010

M.SC. BUSINESS INFORMATION SYSTEMS

BUSINESS SYSTEMS & PROJECT MANAGEMENT

(EBU4003)

REPORT ON Project plan and evaluation of project

management methodologies

SUBMITTED TO:- DR. BAOMIN QI SUBMITTED BY:- 0908966/1

M.Sc. BUSINESS INFORMATION SYSTEMS BUSINESS SYSTEMS & PROJECT MANAGEMENT

STUDENT IT: 0908966/1 DATE OF SUBMISSION:- 04/06/2010

DATE OF SUBMISSION:-
04/06/2010

M.Sc. BUSINESS INFORMATION SYSTEMS BUSINESS SYSTEMS & PROJECT MANAGEMENT

STUDENT IT: 0908966/1 DATE OF SUBMISSION:- 04/06/2010

TABLE OF CONTENTS

1. INTRODUCTION……………………………………………………………......………..….3

2. TASK A

1. PROJECT SPECIFICATION DOCUMENT..............................………….5

2. GANTT CHART & NETWORK DIAGRAM………………………………........5

3. CASH FLOW REPORT………………………………………………………………...8

3. TASK B

1. THEORIES OF MOTIVATION.........................................................9

2. RISK MANAGEMENT..................................................................12

3. QUALITY MANAGEMENT...........................................................15

4. CONCLUSION…………………………………………………………………...…16

5. REFERENCES………………………………………………………………………..17

6. APPENDIX A..........................................................................18

7. APPENDIX B..........................................................................20

8. APPENDIX C..........................................................................21

9. APPENDIX D........................................................................................22

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INTRODUCTION
The following report is related with the project that will be handled by the consultancy
firm E-Con in order to develop a new internet booking system and advanced
management information system for a travel agency organization, Frances
Vacances. I being the manager of the project have the responsibility to manage the
whole project by building different plans and following various kinds of approaches.
Some of the key aspects related with the project are discussed in the report.

TASK A:

1. PROJECT SPECIFICATION DOCUMENT

Purpose & Objectives:

Purpose

The aim of the project is to produce a concise yet comprehensive guide to good
practice in the development and implementation of Management Information System
to be applied and effectively used within the France Vacances, a UK based travel
agency, to increase the profits by enhancing its internet services.

Project Objectives

In order to direct effective MIS solutions within the France Vacances, it is essential to
develop information on appropriate and potential solutions available, along with the
guidance on the likelihood that MIS may offer an effective and appropriate alternative
to provision of system infrastructure. As per the surveys and press coverage
conducted by Frances Vacances, it can be observed that there is growing demand of
the public to book for the holidays via internet. As the company lacks qualities and
features in its present IT systems, this MIS project will help the company in
enhancing the features of its current system and provide an appropriate solution for
its internet bookings. The production of the guide will be conducted in two phases:-

 The initial phase will highlight the current situation and provide some essential
feedbacks on the lessons learned, the repeatability and the potential barriers
to the project development and implementation.
 The final guide will tell about the work carried out by other projects and
indicates the commercial factors that may affect the effective deployment.

Customer requirements

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Some of the project requirements to be considered are mentioned as follows:-

Functional performance

The system to be developed can be used for directing the customers to up-to-date
information on new schemes and also send the information to the potential
customers. The system should also enhance the features of the internet booking
aspect of the company. The system will include security features like firewalls and
security tools to secure the online payments.The MIS system to be implemented
should also be reliable and compatible in integration with the existing computerized
booking system.

Human factors

There are certain issues related with the use of MIS system. The main aim of the
MIS project is to provide the customers with the current information and to enhance
the features of the existing internet booking system of the company. The employees
of the company will need to train themselves to learn about the functionalities of new
system, in order to make complete and effective use of it.

Reliability

The time limit assigned for the development of the project is a maximum of six
months. The project should be completed in little advance, so as to check the system
regarding its reliability and compatibility with the existing system. As the project is in
development stage, so its limitations are not completely known. It is very important
that the system should be user-friendly and does not pose any complexity in its
usage.

Also, the system should be developed considering all the specifications and
standards related to the information systems. The system should provide security for
the confidential data related to the customers and the employees.

Cost

The client has designed a budget of £300,000 for the development and
implementation of the whole project.

Deliverables

 To provide the organization of Frances Vacances with the information system

that would help them in enhancing their bookings through the web servers.
 The MIS developed will be equipped with the tools to help the company
provide current information to its customers regarding the availability of
properties.

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 Also the system would well integrate with the existing computerized booking
system and provide the customers with more facilities.
 The system will help the company to retain the data of the reliable customers
so as to provide them with extra benefits.

Key Success Factors

The success of the project of development of a advanced information system will be
evaluated against some of the key performance indicators which will be taken into
consideration throughout the project. This will help in conceiving a very preliminary
evaluation approach at the early stages of the project.

Sr. Class Key Success Factors Evaluation Criteria

No
.
1. Understanding the Client’s needs Feedback from client, during prototype &
Client upon the project closure

2. Manage the Specifications of client Written/verbal feedback from client

aid their understanding throughout the project

3. Completion of project in time & in Meeting set milestones & Client’s feedback
Project professional manner

4. Application of appropriate project Quality &completeness of produced

techniques & methodologies system/solution

5. Choose & apply suitable tools & Functional prototypes & detailed design
Design techniques

6. Scalable & flexible design Prototype scalability testing

WBS (Work Breakdown Structure)

The WBS (work breakdown structure) is developed by dividing the whole project into
different phases as shown in Appendix A. The WBS is developed considering the
inverted tree structure. The approach that is being followed in the development of a
WBS for the project development and completion is top-down approach. The Work
Breakdown Structure (WBS) for this particular project will be divided into different
phases as listed below:-
- Project management

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- Systems engineering
- Software & Hardware development
- Deliverables management
- System test
- Installation

2. GANTT CHART

In the era of scientific management, Henry Gantt came up with an idea or concept of
a tool for displaying the progression of a particular project in as specialized chart
form. For large projects, a work breakdown structure (WBS) is developed in order to
identify the activities before the construction of a Gantt chart. The strength of the
Gantt chart lies in its capability to display the status related with each task at a
glance. Badiru (1993) defines some of the features of the Gantt chart as follows:-

 Create a work breakdown structure, construct dependencies and define

different milestones.
 Assign different human resources to work as per the different activities.
 Can generate PERT chart from the Gantt chart
 Can help in saving the charts as PNG images, generate PDF and HTML
reports.

The Gantt chart for this particular project is being built in Microsoft Project 2007
software application. In this Gantt chart, different head tasks are defined along with
their durations. Each head task is further divided into sub-tasks that need to be
performed during the project. The different tasks to be performed for the
development of the system are explained as follows:-

Initial Work

The very first phase of the project is to analyse different aspects of the project. In this
project, the problem domain is analysed and plans are made to look and develop the
appropriate solution for the problem. Meetings will be conducted with the managers
and employees of the Frances Vacances to develop a clear image of the needs and
requirements of the system to be developed.

In this stage, the research on the existing technological systems will be conducted
and the shortcomings will be assessed. The techniques and methods to be used to
develop the new and advanced technological application will be searched and the
plans will be made regarding how to make use of those applications. The report
including the research made and the plans developed will be formed as
documentation at every stage is very important. Documentation plays a very
important role in the proper planning and management of the project.

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Initial Requirements Capture

The study regarding the requirements of the project will be conducted in order to look
for the specifications that need to be met. The interviews of the employees of
Frances Vacances will be conducted so as to understand the demands and
requirements of the client. The difference between the existing systems and the
required ones will be identified and plans will be made to meet the set objectives.

Iteration 1

The design of system will be developed by the team of E-Con consultancy Company.
The different team members will be assigned different tasks to be performed within a
specific duration of time. This includes software development, hardware
development and other applications associated with it.

After the system is developed, it is being implemented on a small scale in the client’s
organization and results are analysed. The system thus developed will be tested and
the feedback of the client will be recorded to make further modifications and changes
in order to meet the set specifications of the client. The iteration 1 is completed by
updating the details of the design and documentation is conducted.

Iteration 2

The Iteration 2 phase is very similar to that of Iteration 1. In this phase, the interviews
with the employees who would have made use of the system as a pilot project will be
conducted to identify the limitations and the shortcomings of the system developed
so far. The enhancements will be made in the developed system and the system will
be tested by using a piloting approach. As per the feedback received, the design
details will be updated and iteration 2 will be completed and documented.

Evaluation

The evaluation phase is very important for any project. In this phase, the discussions
will be held related with the use of the system. The training structure of the
employees of the client company will be developed so as to provide them with the
maximum assistance. The final reports will be developed and the system developed
will be handed over to the client.

For the Gantt chart of this particular project, refer to Appendix B.

NETWORK DIAGRAM

The concept of network diagram was developed in 1957 by the US Navy during the
construction of the Polaris submarines. PMI (2000) defined Network Diagram as a
schematic display of the logical relationships between the different activities of the

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project. The network diagram is always depicted from left to right so as to show the
chronological sequence of the execution of the project. The network diagram for this
project has been developed using an AON (Activity on Node) approach.

For the network diagram of this project, refer to Appendix C.

3. CASH FLOW REPORT

Cash flow report can be defined as a statement that helps the company in
understanding the flow of financial aspects throughout the project. The cash flow
report for this particular project is built using project, 2007 software application. The
cash flow report depicts the information related with the resources that have been
allocated to carry out the different activities in the project. The different resources
that are allocated for this project are as follows:-

AMIT – Project Manager

SMIT – Team Member

RAMAN – Team Member

MICHAEL – Team Member

RYAN – Team Member

LIZ – Team Member

STEVE – Team Member

BILL – Team Member

For the cash flow report of this project refer to Appendix D.

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TASK B

1. Summarize the work done by MASLOW, HERZBERG &

McCLELLAND. How do their theories relate to your project
management skills? How can you ensure the team focus is on the
project deliverables?

The theories proposed by Maslow, Herzberg and McClelland talks about the
motivation and the needs associated with it. All these theories are content based
theories that underline the strength and character of the desires of a person.

Maslow’s Theory:- Maslow theory states that “every human being has a
hierarchy of needs that ranges from lower to higher. As with the fulfilment of lower
range of needs, the tendencies for other i.e. higher needs emerge more.” Maslow
(1970) described some of the basic needs that fall at the different levels in the
hierarchy are as follows:-

 Psychological Needs: Also known as biological needs. It includes oxygen,

food, water, constant body temperature etc. Psychological needs are the
strongest needs that a human requires.
 Safety Needs: Safety needs include security and protection from physical
and emotional harm. People especially adults have little awareness for safety
needs except in times of emergency.
 Social Needs: Also known as ‘Belongingness and Love needs’. It includes
giving and receiving love, affection and a sense of belonging. People require
these needs to overcome the feeling such as loneliness and alienation.
 Esteem Needs: It includes both the needs for esteem i.e. self-esteem and the
esteem that a person receive from others. Being human, everyone needs self

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respect and respect from others as well. When these needs are satisfied, the
person develops a higher feeling of self-confidence and feels more valuable.
When these needs are not met, people feel inferior, weak, helpless and
worthless. When these needs are not met, a person feels very weak,
worthless, helpless and inferior.
 Aesthetic Needs: It stresses on the needs to attain self-actualization. It
emphasizes on the cognitive needs i.e. needs to know, to understand and to
explore things. It also includes aesthetic needs that include finding the order,
symmetry and beauty.
 Self-actualization Needs: Some of the characteristics of self-actualization
phase are focussing more on problem areas, concerned about the personal
growth and ability to have peak experiences. It also stresses on incorporating
an ongoing freshness of appreciation of life.
 Transcendence Needs: It stresses more on helping other to find the self-
fulfilment and realize their own potentials.

Herzberg Theory:- A psychologist, Frederick Herzberg developed a theory

known as Herzberg’s Motivation-Hygiene (or two-factor) theory. Herzberg (1987)
theorized that the aspects of job satisfaction and job dissatisfaction act independent
of each other. The two-factor theory proposed by Herzberg identifies two set of
factors that influence job satisfaction are as follows:-

 Motivators: It includes job content factors such as achievement,

responsibility, advancement, recognition and the work itself. The job
satisfaction rises only when motivators are present there.
 Hygiene Factors: It stresses more on job context factors such as
interpersonal relationships, salary, working conditions, company policies,
technical supervision and administration. Job dissatisfaction arises when the
hygiene factors are not taken care of.

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McClelland’s Theory of Motivation:- David C. McClelland was an American

psychologist who proposed a theory on motivational needs. In his theory of acquired
needs, he emphasized that an individual acquires specific needs with time and these
needs are shaped by the life experiences of that individual. He proposed that people
are basically motivated three different set of needs that are described as follows:-

 Need for Achievement: People having high need for achievement tend to
exceed by avoiding both the low and high risk situations. The people who
come under this category are called as ‘Achievement Finishers’. These
people enjoy challenges and prefer situations in which they can take personal
responsibilities and actions to solve the problems. These people set more
conservative goals and plan according to them in order to seek ensured
success. These people seek feedback on their performance in order to
enhance it.
 Need for Power: A person’s need for power can be either personal or
institutional. The people who fall under this category are known as ‘Power
Winners’. These people do not seek organizational power for personal gain.
Rather, they work hard to make the organization reach its goals. People who
enjoy the need for power try to launch a positive impact on the organization’s
working.
 Need for Affiliation: The people with high need for affiliation look for
harmonious relationships with others and need to feel accepted by the others.
When the need for affiliation predominates, people place a higher premium on
relationships than their personal accomplishments. These people do not make
good leaders as they need to take the steps they do not like to take in
personal. This somehow affects the decision making and implementation in
an adverse manner.

The above explained theories are related to my project management skills in many
ways. The focus of the team should be on the desired outcomes. This can be
accessed by viewing the following steps:-

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 Allocation of resources to the team is my foremost responsibility to drive the

project towards success. This falls at the lowest level of Maslow theory and in
the category of Hygiene factors in Herzberg’s theory i.e. working conditions.
 The organization must be stable to deal with the safety needs like resources,
finances etc. Herzberg’s hygiene factors such as company policies and
administration play a vital role in establishing the stability.
 Being a leader of the project, I must set an example of high performance in
front of my team members. For this I need to develop self-esteem within
myself as discussed in Maslow and Herzberg theory.
 Being a leader of the team, I must have strong motivation skills to encourage
the team members to perform up to their maximum potential Herzberg theory
to make my team do better.
 As discussed in McClelland, I will empower my members to take personal
responsibilities to perform their respective roles efficiently.
 As suggested by McClelland, harmony is also needed for better performance
of the team. But high need for affiliation would lead to giving more preference
to relationships rather than project success. Being a leader, it is my duty to
maintain harmony within the team without sacrificing the overall
accomplishments.

2. Project Risk management can result in significant

improvements in the ultimate success of a project. Critically review
the sources of risks associated with this project and analyse the
important reasons why sometimes the project could fail.

A risk can be defined as a combination of constraint and uncertainty. And to

manage the different risks, the approach of risk management is followed. Risk
Management the risks and drawing up plans to minimise their effects on the project.
Chapman & Ward (1997) explains the approach of Risk Management that includes
following two steps:-

 Risk Assessment: It is the initial step of the risk management approach. This
includes identification of risk and uncertainties. It can be done by exploring the
entire plans for the project and deeply look for the areas of uncertainties. After
identifying the risks, analysing the risks is also very important. This can be
done by specifying those areas of uncertainty that can affect the performance
of the project either in duration or cost. The final step of risk assessment
stage if prioritising the risks. Establish the seriousness of each risk and line
them up as per their impact on the project’s performance.

 Risk Control: After analysing the risks and their seriousness, it is very
essential to work towards controlling those risks. The next stage is risk control

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which also includes three elements. The first element is risk mitigation. It
includes taking appropriate actions in order to reduce the impact of risks. It is
better to use resources on the risk mitigation phase rather than looking for a
contingency plan. Emergency plans need to be designed before the
occurrence of the risks which are seemed to be significant. After the risks are
being tackled, it becomes very important to measure their effects after the
mitigation. Measure and control element of risk control stage tracks the
impacts of the identified risks and leads them to an effective conclusion.

Some of the risks associated with this project are listed as follows:-

Staff Risks

- Non-availability of key staff when required

- Non-availability of key skills when required
- Loss of key tem members during the project

Customer Risks

- Delay in decisions from the client side regarding specifications and

requirements
- Lack of resources availability from the client
- Deliverables will not be reviewed as scheduled
- Replacement of skilful staff with the less qualified one

Scope Risks

- Lack of clear scope definition resulting in the conflicts with the client
- Introduction of scope changes without sufficient knowledge of project
management

Technology Risks

- Technical or performance limitations related with the technology hindering the

project’s performance
- Lack of integration among the technological components
- Technology used fail to meet requirements and specifications of the client
- Technology is not well understood by the project team causing delays in
product development

Management Risks

- Inexperience of the management on both the client and vendor side can
cause budget or schedule slippages
- Allocation of less resources and attention by the management by giving the
project low priority

Reasons for Failure of Projects

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 Poor planning: Sometimes the time assigned to complete a project can be

insufficient that the planning phase is eliminated. In such cases, rather than
planning the projects more stress is laid on performing tasks. But it is very
difficult to carry out a project that includes development of a new IT system
without proper planning.
 Unclear goals and objectives: Sometimes the objectives and desired
outcomes of the project are only partially discussed. This makes difficult for
the team members to perform their respective roles efficiently.
 Change of objective during the project: Many times especially in IT
projects, the objectives are changed a lot. This can be due to the uncontrolled
and unexpected changes in the requirements of the user. This can also be
due to poor planning of the project.
 Unrealistic time or resource estimate: Time is a very important aspect for
any project to produce desired results. Sometimes the time assigned for a
particular task can overrun due to interruptions causing chaos.
 The project could fail due to the lack of support and involvement form the user
side. Also lack of executive support can lead to the failure of the project.

Risk Assessment
RISK LIKELIHOOD IMPACT RISK MANAGEMENT APPROACH
Insufficient In- Low High Involvement of consulting company to
house skills train the employees
Loss of Key team Medium Medium Effective involvement of key players.
members Recording of the critical procedures
in a manual to make data secure and
accessible
Lack of Medium High Clear communication regarding the
management goals and objectives. Proper project
support plan vision
Lack of Medium High Clear presentation of the project.
commitment from Effective communication and
employees employee empowerment can be
useful approaches
Lack of IT Medium High Identify the equipment required. Buy-
infrastructure in essential software and hardware
applications

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3. As a project manager, you are responsible for the total quality

of this MIS project. Discuss the processes of the quality
management. What do you need to do to ensure the quality of
information system developed?

Quality management is an approach which ensures that all the designed,

planned and implemented activities in the project are effective and efficient in order
to achieve the desired objectives. The process of quality management is a
continuous one starting and ending with the project.

Project management consists of four main processes as discussed by Maylor (2000)

below:-

 Quality Definition: The foremost step of the quality management process is

to define the quality. It is the duty of the leader and his team to identify the
standards of the quality to be implemented in the project. Identifying the
standards of the quality is a very important element of quality definition stage.
Another important element of quality definition is the development of a quality
plan. A quality checklist needs to be designed to be used in the project
implementation phase. The checklist is developed in order to ensure that the
project team deliver the outcomes of the project as per the quality
requirements given by the clients.

 Quality Assurance: Quality assurance is the process that provides the

clients, suppliers, organization and other stakeholders with the confirmation
based on the evidences that all the product needs and expectations are
completely met. It also ensures that the expected levels of the quality will be
met by the effective use of the process and procedures tools. The process of
quality assurance is conducted during the implementation stage. Quality
assurance is not only about following the quality standards regarding the final
products and services but also with the procedures used to carry out the
project including all the tools, techniques and methods.

 Quality Control: Quality control is an approach of using the techniques and

activities that makes a comparison between the actual quality performance
and the defined goals so as to response to the shortfall in an appropriate way.
It is the process which measures the performance of the project that whether
it matches with the one defined in the initial stages. If the performance differs
from the one that is previously defined, different approaches are identified and
used to eliminate the reasons for this difference. The main aim of the quality
control stage is to improve the quality of the project and continuously monitor

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its performance to make it meet all the specifications and requirements

desired.

 Quality Improvement: Quality improvement is a systematic approach that

emphasizes on the elimination of the waste, loss, rework, frustration etc. so as
to make the processes more effective, efficient and appropriate. It includes
the tools and methods to be used for narrowing the gap between the actual
and desired standards of quality. This can be done by understanding the
shortcomings and strengths of the system to make required improvements.

In order to meet the quality standards of the information system developed, following
mentioned steps need to be taken:-

 Four main steps need to be taken to ensure the quality of the project i.e.
quality definition, quality assurance, quality control and quality improvement.
 To define the standards of the quality, one source for the definition comes
from the clients. It is very important to know the definition of quality from the
perspective of client. To understand the view of the client, the project team
could build a set of questions that can be asked to the client. We as a
consulting organization have a set of quality standards to be followed for
different projects. So a negotiation needs to be developed regarding a specific
set of quality standards.
 Then comes the quality assurance stage. This is done to ensure that the
quality of the products meet the expectations of the client. In order to do so, I
being the leader of the project would form a PDCA (Plan, Do, Check and Act)
cycle.
 The quality control step is taken so as to make improvements in the quality of
the final product to be delivered. Pilot projects are implemented in the client’s
organization and the results are monitored. The required actions are taken in
order to bring the rejected product in compliance with the requirements of the
client. Different quality control tools such as ‘Cause and Effect diagram’,
‘Pareto Charts’, ‘Control Charts’ can be used to ensure the quality of the
product.
 At the final step of the quality process, guidelines are set to provide feedback
for improvements to be made. Metrics can be used for building the quality
decisions and predictable quality results.

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REFERENCES

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Chapman, C. And Ward, S. (1997), ‘Project Risk Management: Processes,

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Cooper. R.G. (1988), ‘The New Product Process: A Decision Guide for
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Egan, B. (2005), ‘Project Management Network Diagram: A tool for

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Garvin, D. (1990), ‘What Does Product Quality Really Mean?’, Sloan Management
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Gray, C. And Larson, E. (2000), ‘Project Management: The Managerial Process’,

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Herzberg, F. (1987), 'One more time: How do you motivate employees?', Harvard

Business Review, Vol. 65 Issue 5, p109-120.

Maslow, A. (1970), ‘Motivation and Personality’, New York: Harper. pp. 236.

Maylor, H. (2000), ‘Strategic Quality Management’, Strategic Management in

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Maylor, H. (2005), ‘Project Management’, Third Edition, Pearson Publishers Ltd.,

London, United Kingdom.

Maylor, H. (2001), ‘Assessing the Relationship between Practice Changes &

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Parasuraman, V. (1999), ‘A Conceptual Model of Service Quality & its

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Vroom, V. (1964), ‘Work and Motivation’, Kreiger Publishing, New York.

Appendix A (Work Breakdown Structure, WBS)

MIS PROJECT

Initial Initial Iteratio Iteratio Evaluation Report

Work Requirements n 1 n2
Capture Enhance
Initial Design
Meetings/ Organize
Design
Interviews Analysis/ Enhance Discussion/ Documenta
Observation Prototype Interviews tion
Background Build
Research Prototype
Choice of Final Write
Testing &
Tools Up
Documentation
Feedback
Testing of Testing &
System Feedback
Developing Interim
Project Presentation
Design
Documentation Update

M.Sc. BUSINESS INFORMATION SYSTEMS BUSINESS SYSTEMS & PROJECT MANAGEMENT

STUDENT IT: 0908966/1 DATE OF SUBMISSION:- 04/06/2010

Appendix B (Gantt Chart)

M.Sc. BUSINESS INFORMATION SYSTEMS BUSINESS SYSTEMS & PROJECT MANAGEMENT

STUDENT IT: 0908966/1 DATE OF SUBMISSION:- 04/06/2010

Appendix C (Network Diagram)

M.Sc. BUSINESS INFORMATION SYSTEMS BUSINESS SYSTEMS & PROJECT MANAGEMENT

 STUDENT IT: 0908966/1 DATE OF SUBMISSION:- 04/06/2010

Appendix D (Cost-Flow Report)

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M.Sc. BUSINESS INFORMATION SYSTEMS BUSINESS SYSTEMS & PROJECT MANAGEMENT