Lecture 2 (Week 2)

158225:
Systems Project Selection
Analysis and and
Modelling Management

Adapted from Dr ArzooAtiq’sand Dr Kuda Dube’searlier lectures Lecture 2 1

• Explain how projects are selected in some
organizations.
• Describe various approaches to the systems
development life cycle (SDLC) that can be
used to structure a development project.
• Explain how to select a project methodology
based on project characteristics.
• Describe project staffing issues and concerns.
• Describe and apply techniques to coordinate
and manage the project.
Agenda
• Explain how to manage risk on the project. What should we know by the end of the
lecture?

Copyright ©2022 John Wiley & Sons, Inc. Lecture 2 2

 Project Identification
System Request

Part 1
Feasibility Analysis
Technical Feasibility Economic Feasibility Organisational Feasibility

Part 2
Project Selection

Project Management Tools

Work Breakdown Structure Gantt Chart Network Diagram
Part 3

Staffing the Project

Lecture 2 33
IT Project Part 1-Lecture 1 Review

Identification
and Feasibility
Study
Lecture 2 4
 Project Identification
• A business need is identified – management, business unit, IT
department, external (e.g. politicians, senior management)

• Could result from some problem (losing market share etc.)

• Speculative project identification

• The business need should drive the high level requirements

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Lecture 2 55
 The System Request

• A document that describes the reasons for and the value added
from building a new system

• Contains 5 elements:
1. Project sponsor: the primary point of contact for the project
2. Business need: the reason prompting the project
3. Business requirements: what the system will do
4. Business value: how will the organization benefit from the project
5. Special issues or constraints: Anything else that should be considered

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 Feasibility Analysis

• Is this project feasible?

• What are the risks?
• Can these risks be overcome?
• Major components:
• Technical feasibility (Can we build it?)
• Economic feasibility (Should we build it?)
• Organisational feasibility (Will they use it?)

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Project Selection
Part 2

Lecture 2 8
Project Selection Issues
• Project portfolio management (PPM)- is a process of selecting, prioritizing and
monitoring project results has become a critical success factor for IT departments
facing too many potential projects with too few resources.

- PPM tools - Hewlett Packard’s Project and Portfolio Management, Primavera

Systems’ ProSight, open source Project.net

• Portfolio management takes into consideration the different kinds of projects that
exist in an organization
- large and small, high risk and low risk, strategic and tactical
- an organization may want to keep high-risk projects to a level less than 20% of its
total project portfolio

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 Project Selection

• Projects are approved, declined or delayed based on value added vs.

risks
• Project portfolio management
• Goals:
• Maximise cost/benefit ratio
• Maintain an optimal mix of projects based on:
• Risk
• Size, cost & length of time to complete
• Purpose, scope & business value
• Limited resources require trade-offs
• Selected projects enter the project management process

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Project Selection

Ways to characterize Projects:

• Size: What is the size? How many people are needed to work on the project?
• Cost: How much will the project cost the organization?
• Purpose: What is the purpose of the project? Is it meant to improve the technical
infrastructure? Support a current business strategy? Improve operations? Demonstrate
a new innovation?
• Length: How long will the project take before completion? How much time will go by
before value is delivered to the business?
• Risk: How likely is it that the project will succeed or fail?
• Scope: How much of the organization is affected by the system? A department? A
division? The entire corporation?
• Economic Value: How much money does the organization expect to receive in return
for the amount the project costs?

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Project Selection
• A good project portfolio will have the most appropriate mix of projects for the
organization’s needs.

• The approval (or steering) committee takes the lead in selecting a project and acts
as a portfolio manager, with the goal of maximizing benefits versus costs and
balancing other important factors of the portfolio.

• So, while taking a decision, the approval committee not only evaluates the projects
costs and benefits but also the risks (like technical and organizational) associated
with the projects.

• Approval committee uses the system request and the feasibility study to examine
the business need and the associated project risks

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 Creating the project plan

• Upon project approval, the project manager must:

1. Select the best project methodology
2. Develop a project work plan
3. Establish a staffing plan
4. Create ways to coordinate and control the project

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Lecture 2 13
Selecting a project methodology

• Methodology:
• A formalized approach to implementing the SDLC
• A series of steps to perform and deliverables to produce
• Methodology Sources:
▪ Internally developed by organizations
▪ Consulting firms
▪ Software vendors
▪ Government agencies

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 Selecting a Project Methodology - Issues

• These factors influence the best choice:

• Clarity of User Requirements
• Familiarity with Technology
• System Complexity
• System Reliability
• Short Time Frame
• Schedule Visibility

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Lecture 2 15
 • Used commonly in 1980s
• Replaced ad-hoc approach.
Classes of Methodologies • Formal, sequential, step-by-step.
• Goal – doing each phase thoroughly before moving forward ensures
• Structured correct and high-quality outcomes
• Started to be used in 1990s
Development
• Waterfall Development • Try to get some parts of the system developed quickly and out to users for feedback.
• Parallel Development • Advocate the use of Computer Aided Software Engineering (CASE) tools, Joint
• V-Model Application Design (JAD) sessions, visual programming tools, code generators.
• Can result in ‘scope creep’ – requirements change and increase as users work with
• Rapid Application the system.
Development • Goal – get some portion of system developed quickly and into the users’ hands
• Iterative
• Most recent and more focussed around design philosophies than
• Prototyping
specific details of methodology.
• Agile Development • Follow the principles such as:
• eXtreme Programming • Software is delivered early and continuously
• SCRUM • Changing requirements are embraced
• Customers and developers work together
• Face to face communication is key
• Focus on technical excellence and good design
• Regular reflection.
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 Waterfall Development
• Project team proceeds sequentially from one phase to the next
• Lots of documentation, approved at each phase
• Difficult to go backwards

STRENGTHS
• Requirements are identified long before programming starts
• Requirements are “frozen” as project proceeds – no moving targets
allowed

WEAKNESSES
• If requirements are missed, expensive post-implementation
changes required
• Does not cater for changes in the environment
• Must wait a long time before there is “visible” evidence of
the new system
• Takes a long time from start to finish

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 Parallel Development
• Sub-projects are created after a general high-
level design
• Sub-projects designed and implemented in
parallel
• Sub-projects integrated at the end

STRENGTHS
• Reduces time for total development, so less
change in environment
• Reduce the overall project length
WEAKNESSES
• Sub-projects may be interdependent, so
integration is difficult.
• Creating subprojects require careful design
decisions

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 V-Model Development Methodology
• Emphasizes system quality through test plan development

STRENGTHS
• Simple and straightforward
• Quality improves through the emphasis on testing
• Including Quality Assurance (QA) expertise early in
the project strengthens system quality

WEAKNESSES
• Rigid
• Difficult to use in a dynamic business environment

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 Three RAD Approaches

• Iterative development
• A series of versions developed sequentially

• System Prototyping
• Create prototype (model) of system and “grow” it into the final system

• Throw-away prototyping
• Prototype alternative designs in an experimental way
• Build system following prototype design but discard the actual prototype

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 Iterative Development Methodology

• RAD approach
• Develop system in series of
versions

STRENGTHS
• Users get a system to use quickly
• Users identify additional needs for later versions
based on real experiences with current version

WEAKNESSES
• Users faced with using an incomplete system for a time
• Users must be patient and wait for fully-functional system

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 System Prototyping Development Methodology
• RAD approach
• Create a rough version of system quickly and
“grow” it into final system with repetitive
refinement

STRENGTHS
• Users get to work with prototype very quickly
• Feedback cycles let users identify changes and refine
real requirements

WEAKNESSES
• Superficial analysis may cause problems
• Initial design decisions may be poor
• Overlooked features may be hard to add later

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Throwaway Prototyping Development Methodology
• R A D approach
• Adds emphasis on experimenting with design options before design is finalised
• Design options are thrown-away, but learning from them is factored into final design

STRENGTHS
• Uncertainty is minimised
• Important issues are understood before
building the final system

WEAKNESSES
• May take longer (compared to system prototyping)

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Agile Development Methodology
• Extreme Programming (XP), Scrum, and others
• Focus on short cycles (1-4 weeks) that produce a complete software product
• Highly adaptable in dynamic environments

STRENGTHS
• Fast delivery of results
• Works well in projects with
undefined or changing requirements

WEAKNESSES
• Requires discipline
• Significant user involvement is essential
• Initial high learning curve
• Works best in smaller projects

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Extreme Programming

• Emphasizes customer satisfaction and teamwork

• Communication, simplicity, feedback, courage
• Feedback to users continuously
• Embrace change - Quality first
• Begins with user stories
• Testing is continuous
• Evolutionary, incremental
• Heavy on-site user input
• Relies on a small, close-knit team

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 Scrum
• Made up of 30 day sprints
• Each sprint delivers a system to the user
• No requirements change during a sprint
• Scrum meeting each day:
• Previous day’s accomplishments
• Plan for today
• Any obstacles
• Again, may not be suitable for large projects

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 Criteria for Selecting a Methodology

Ability to Waterfall Parallel V-Model Iterative System Throwaway Agile

develop systems Proto- Prototyping Development
typing
With unclear user Poor Poor Poor Good Excellent Excellent Excellent
requirements

With unfamiliar Poor Poor Poor Good Poor Excellent Poor

technology

That are complex Good Good Good Good Poor Excellent Poor

That are reliable Good Good Excellent Good Poor Excellent Good

With a short-time Poor Good Poor Excellent Excellent Good Excellent

schedule

With schedule visibility Poor Poor Poor Excellent Excellent Good Good

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Part 3: Project
Management Tasks
PREPARING TO LAUNCH THE PROJECT

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 IT Project Management

• Project Management is the process of planning and controlling system

development within a specified time at a minimum cost with the right
functionality.

• A project is a set of activities with a specified beginning and end point meant
to create a system that brings value to the business.

• Project Managers monitor and control all tasks and roles that need to be
coordinated.

• Analysis and Modelling are key to the success of IT projects.

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 Project Manager’s Balancing Act

• Project Management involves making

trade-offs…
• Modifying one element requires
adjusting the others

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 Project Management Tools

• Aids in creating workplans

• Identify all tasks, their sequence and estimate the time to complete
each one
• Work breakdown structures (WBS): a hierarchy of tasks to identify:
• Duration of each task
• Current status of each task
• Task dependencies (shows which tasks must be completed before others can
begin)
• Gantt charts: horizontal bar chart that shows the WBS graphically
• Network diagrams: PERT and CPM

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Work breakdown structures (WBS)

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Gantt Charts
• Show tasks, duration, start and end, milestones, task dependencies and resources (e.g. staff) in graphical format.

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Network Diagram

Fig.
2.14

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Program Evaluation and Review Technique (PERT)
• Program Evaluation and Review Technique (PERT) is a network
analysis technique that can be used when the individual task
time estimates are fairly uncertain.
• Instead of simply putting a point estimate for the duration
estimate, PERT uses three-time estimates: optimistic, most
likely, and a pessimistic.
• It then combines the three estimates into a single weighted
average estimate using the following formula:

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Critical path method (CPM)
• CPM simply allows the identification of the critical path in the
network
• critical path is the longest path from the project inception to completion
• The critical path shows all the tasks that must be completed on
schedule for a project as a whole to finish on schedule
• If any tasks on the critical path take longer than expected, the entire project will
fall behind
• Each task on the critical path is a critical task, and they are usually depicted in a unique way
• Ex. In Figure 2-14 (slide 34) they are shown with double borders (see tasks 5,
6, 7, 8, and 10)

• CPM can be used with or without PERT

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 Environment & Infrastructure Management

• Environment—Choose the right set of tools

• Use appropriate CASE tools to:
• Increase productivity and centralise information (repository)
• Utilise diagrams—more easily understood
• Establish standards to reduce complexity
• Infrastructure—Document the project appropriately
• Store deliverables & communications
• Use Unified Process standard documents
• Don’t put off documentation to the last minute

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 Project Estimation

• The process of assigning projected values for time and effort

• Sources of estimates
• Methodology in use
• Actual previous projects
• Experienced developers
• Estimates begin as a range and become more specific as the
project progresses
• Industry standards
• Function point estimation

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 Project Estimates Using Industry Standard Percentages
INDUSTRY STANDARD PERCENTAGES
EXAMPLE
Planning Analysis Design Implementation
IF 4 months are required for Planning, then
Typical industry 15 20 35 30 15% X = 4, where X = overall length of project
standards for
business
applications (%) X = 4 /15%
Estimates based on Actual: Estimated: Estimated: Estimated: X = 26.66 months for entire project
actual figures for 4 5.33 9.33 8
the first stage of S
DLC* (person- Therefore:
months) • Planning (15%): 4 months
• Analysis (20%): 5.33 months
*SDLC, systems development life cycle. • Design (35%): 9.33 months
• Implementation (30%): 8 months

• Total Project Length: 26.66 months

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 Example – Determining Tasks using Top-down Approach
• Grade programming assignments
1. Create grading plan
A. Develop grading rubric
B. Develop test plan, test data, and check figures
2. Prepare programming projects for grading
A. Download submitted projects
B. For all projects, extract zipped files
3. For all projects,
A. Administer test plan
• Check performance
• Verify results
B. Check code for required elements and standards
C. Apply rubric and determine final score.

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 Typical Workplan Entry
Task Information Example
Name of the task Perform economic feasibility
Start date Jan 5, 2022
Completion date Jan 19, 2022
Person assigned to the task Project sponsor Mary Smith
Deliverable(s) Cost—benefit analysis
Completion status Complete
Priority High
Resources needed Spreadsheet software
Estimated time 16 hours
Actual time 14.5 hours

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Project
Work Plan

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 Project Estimates Require Refinement

Typical Margins of Error Typical Margins of Error for

for Well-Prepared Well-Prepared Estimate
Phase Deliverable Estimate Cost (%) Schedule Time (%)
Planning phase System request 400 60

Project plan 100 25

Analysis phase System proposal 50 15
Design phase System specifications 25 10

Source: Barry W. Boehm and colleagues, “Cost Models for Future Software Life Cycle Processes:
COCOMO 2.0,” in J. D. Arthur and S. M. Henry (eds.) Annals of Software Engineering Special Volume on
Software Process and Product Measurement, Amsterdam: J. C. Baltzer AG Science Publishers, 1995.

• Even projects with high-quality estimates will need refinement

• Project managers must adjust estimated time throughout the project

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Lecture 2 45
Staffing Considerations

• Match skills to project needs whenever possible

• Consider technical skills and interpersonal skills
• All IS work is done in teams
• Technical skills are not sufficient – need to be able to work with others
• Use training and outside sources (consultants, vendor support) when skills are not readily
available
• Staffing levels will change over a project’s lifetime
• Adding staff adds overhead; not always productive

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 Motivation ‘Do’s (1 of 2)

• Use monetary rewards cautiously

• Use intrinsic rewards
• Recognition
• Achievement
• The work itself
• Responsibility
• Advancement
• Chance to learn new skills

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 Motivation ‘Don’ts (2 of 2)

• Consider the “de-motivators” … DO NOT

• Assign unrealistic deadlines
• Ignore good efforts
• Accept a low-quality product
• Give everyone on the project the same raise
• Make an important decision without the team’s input
• Maintain poor working conditions

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 Handling Conflict

• Make sure team understands the project and its goals

• Establish operating procedures (project charter)
• Norms and ground rules
• Availability
• Status reporting
• Meetings
• Ensure that team members get to know each other
• Establish methods for dealing with problems

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Conflict Avoidance Strategies

• Clearly define plans for the project

• Ensure the team understands the importance of project
• Develop detailed operating procedures and communicate these to
the team members
• Develop a project charter
• Develop schedule commitments ahead of time
• Forecast other priorities and their possible impact on the project

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 Managing Scope

• Beware of scope ‘creep’

• Use J AD and prototyping to minimise scope creep pressure
a

• Implement formal change approval process

• Defer additional requirements as future system
enhancements

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 Scope Management
• Scope “creep”
• Occurs after the project is underway
• Results from adding new requirements to the project
• Can have adverse effect on the schedule
• Techniques to manage the project scope:
• Identify all requirements at the outset
• Allow only those changes deemed necessary
• Carefully examine the impact of suggested changes
• Delay some changes for “future enhancements”
• Timeboxing

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Timeboxing - definition

• Timeboxing sets a fixed deadline for a project and delivers the

system by that deadline no matter what, even if functionality
needs to be reduced;
• It ensures that project teams do not get hung up on the final
“finishing touches” that can drag out indefinitely;
• It satisfies the business by providing a product within a
relatively fast time frame.

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Timeboxing - key steps

1. Set the date for system delivery;

2. Prioritize the functionality that needs to be included in the system;

3. Build the core of the system (the functionality ranked as most important);

4. Postpone functionality that cannot be provided within the time frame;

5. Deliver the system with core functionality; and

6. Repeat steps 3 through 5, to add refinements and enhancements.

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 Timeboxing - how it affects project team

• Time estimating techniques may reveal that the project

requires more time than we have available
• Timeboxing helps in these situations
• Set a tight but realistic deadline
• Identify core, essential functional requirements
• Team limits its focus just to essential functions
• High quality is stressed
• Other functions will be added later
• Repeat to add refinements and enhancements

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 When a Target Date is Missed…
• Don’t assume you can catch up
• The ONLY situation in which you can make up time is when:
• The remainder of the project is simpler than the part you fell behind on, and
• The remainder of the project is simpler than you expected when the original
estimates were made.
• Evaluate the complexity of the remainder of the project to determine
the correct schedule adjustment.
• Adding people is not always the right way to handle schedule
slippages.

Copyright ©2022 John Wiley & Sons, Inc.

Lecture 2 54
Managing Project Risk

• risk management — the process of assessing and addressing the risks

that are associated with developing a project;
• Causes of risks — weak personnel, scope creep, poor design, and overly
optimistic estimates;
• project teams create a risk assessment:
• a document that tracks potential risks along with an evaluation of the likelihood
of the risk and its potential impact on the project;
• explains potential ways that the risk can be addressed
• options for risk mitigation — a risk could be publicized, avoided, or even
eliminated by dealing with its root cause;

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Sample risk assessment

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Lecture 2- Review

• After reading and studying this topic, you should be able to:

• Explain how the practice of project portfolio management may influence the selection of
IS projects.
• Discuss the skills needed to be a successful systems analyst.
• List and explain the project characteristics that affect the selection of a project
methodology.
• List and explain three methodologies that are based on the waterfall concept.
• List and explain three methodologies that are based on RAD.
• Explain the XP Agile methodology.
• For each methodology included in the chapter, be able to summarize the project
characteristics that make that methodology the best choice and the poorest choice. Be able
to explain why.

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Lecture 2- Review

• After reading and studying this topic, you should be able to:

• Discuss ways to estimate the time frame for a project.

• Discuss the purpose and content of the project work plan.
• Discuss the three main tasks involved when staffing a project.
• Describe various ways to influence the motivation of project team members.
• Explain the purpose and content of a project charter.
• Describe the role of CASE tools in coordinating the project.
• Describe the value of standards to the project team.
• Discuss the project manager’s balancing act involving size, time, and cost.
• Describe how scope creep affects a project.
• Discuss the technique of timeboxing and how it affects a project team.

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 ThankYou
Dr Jyothi Kunchala

[email protected]

Resources: Mainly Chapter 2

(Text book)
Lecture 2 59