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lecture 3

The document outlines the main steps of project initiation, including establishing a project initiation team, developing a project charter, and creating a project scope statement. It emphasizes the importance of project feasibility assessments, covering technical, operational, scheduling, legal, political, and economic aspects. Additionally, it discusses the financial concepts of one-time and recurring costs, tangible and intangible costs, and the time value of money in relation to project planning.

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2 views

lecture 3

The document outlines the main steps of project initiation, including establishing a project initiation team, developing a project charter, and creating a project scope statement. It emphasizes the importance of project feasibility assessments, covering technical, operational, scheduling, legal, political, and economic aspects. Additionally, it discusses the financial concepts of one-time and recurring costs, tangible and intangible costs, and the time value of money in relation to project planning.

Uploaded by

doha419311
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Lecture 3

The main steps of project initiating:


• Establishing the Project Initiation Team
• Establishing a Relationship with the Customer
• Establishing the Project Initiation Plan.
• Establishing Project Workbook
• Developing the Project Charter.

The contents of workbook


• Project overview and scope Initiation plan and SSR*
• Management procedures Data and process descriptions
• Team correspondence Project schedule

➢ The key activity of project initiation is the development of the project charter.

Project Charter
• A short document that is prepared for both internal and external stakeholders.
• Provides a high-level overview of the project.
• Helps to assure that the organizations and stakeholders understand the initiation of a project.
• It’s the job of a project manager, or another stakeholder.
Contents of project charter
• Project title and date of authorization
• Project manager name and contact information.
• Customer name and contact information.
• Project start and completion dates.
• Key stakeholders, project roles.
• Project objectives and description
• Signature section for stakeholders

The key of project planning: is the process of defining clear activities and the work needed to complete each
activity within a single project.
➢ The objective of the project planning process is the development of a Baseline Project Plan (BPP) and the
Project Scope Statement (PSS).

Project Scope Statement (PSS): A document prepared for the customer that describes what the project will
deliver, and the work required to complete the project.
Business Case: A Report that outlines the justification for an information system, economic benefits, and the
technical and organizational feasibility of the proposed system.

Baseline Project Plan (BPP): A major outcome from the PIP (project initiation and planning) phase. It contains the
best estimate of a project’s scope, benefits, and costs.

Elements of project planning


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

project scope: is a way to set boundaries on your project and define exactly your goals and deadlines. It outlines key
stakeholders, processes, assumptions, and constraints.

Importance of project scope


• Create an accurate project budget.
• Risk and quality Management will depend on the clarity of the scope of work.

Project Scope Statement contents


• Project scope description Project Acceptance Criteria
• Project Exclusions Project Constraints
• Project assumption Project Deliverables

➢ Assessing project feasibility is a required task because it requires the systems analyst, to evaluate a wide range of
factors.

Technical feasibility: The process of assessing the development organization’s ability to construct the proposed
system. This analysis should include:
• assessment of the development group’s understanding of the possible target hardware, software.
• System size, complexity, and the group’s experience with similar systems.

Operational feasibility: Defining the resistances of the project and finding solutions to it.

Scheduling feasibility
• Determining whether we need hiring or training which will impact the schedule.
• Determining if the project deadlines are reasonable and offering alternative schedules.
Legal and Contractual feasibility: Identifying legal and contractual ramifications of the proposed system
development project.

Political feasibility: knowing the opinion of key stakeholders on the proposed system.
Economic feasibility: Is the process of identifying the financial benefits and costs associated with a development
project. Often called cost-benefit analysis.

One time cost: Cost associated with project start up and development. It includes activities such as systems
development, new hardware and software purchases, and user training.

Recurring cost: Cost resulting from the ongoing evolution and use of a system. It includes activities such as
Application software maintenance, Incremental data storage expenses and communications.

Tangible cost Intangible cost


Cost associated with an information system that can be Cost associated with an information system that cannot be
measured in dollars and with certainty measured in terms of dollars or with certainty

EX: EX:
Increased Revenue, Increased sales, Resource Cost Savings Loss of customer goodwill, Employee morale,
Higher profit margins. Operational inefficiency

The Time Value of Money (TVM)


• It’s the concept that money you have now is worth more than the identical sum in the future due to its
potential earning capacity.
• The process of comparing present cash outlays to future expected returns
• discount rate 𝑖: The interest rate used to convert future benefits and costs to their present value in one year.

➢ Present value = future value X 1 / (1+discount rate)^n

Net Present Value (NPV): The conversion of a stream of future benefits less future costs to their equivalent benefits and
costs in 1 year at the beginning of the project or program.
➢ NPV =sum of all PVs across years

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