Modern Systems Analysis

and Design
Eighth Edition, Global Edition

Joseph S. Valacich
Joey F. George

Managing the Information

Systems Project

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-1

Learning Objectives
 Explain the process of managing an information systems
project, including project initiation, project planning,
project execution, and project closedown,
 Describe how to represent and schedule project plans
using Gantt charts and network diagrams, and
 Explain how commercial project management software
packages can be used to assist in representing and
managing project schedules

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-2

Introduction
 Project management (PM) may be the most important
aspect of systems development.
 Effective PM helps to ensure
 The meeting of customer expectations.
 The satisfying of budget and time constraints.
 The nature of projects has changed from custom
development to implementing packaged software such as
ERP and data warehousing.
 PM needs to be able to work well with vendors and diverse
user community.
Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-3
Pine Valley Application Project

FIGURE 3-1
Three computer applications at Pine Valley Furniture: order filling, invoicing, and payroll
(Source: Hoffer, Ramesh, and Topi, Modern Database Management 11 th ed. 2013)

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-4

Managing the Information Systems
Project
 Project
 A planned undertaking of related activities to
reach an objective that has a beginning and
an end
 Project management
 A controlled process of initiating, planning,
executing, and closing down a project

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-5

Managing the Information Systems
Project (cont.)
 Project manager
 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
 Deliverable
 The end product of an SDLC phase
Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-6
Deciding on Systems Projects
 System Service Request (SSR)
 A standard form for requesting or proposing
systems development work within an
organization
 Feasibility study
 A study that determines whether a requested
system makes economic and operational
sense for an organization

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-7

 FIGURE 3-2
System Service Request for
Purchasing Fulfillment System with
name and contact information of
the person requesting the system,
a statement of the problem, and
the name and contact information
of the liaison and sponsor

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-8

Project Management Activities

FIGURE 3-4
A project manager
juggles numerous
activities

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-9

Phases of Project Management
Process
 Phase 1: Initiation
 Phase 2: Planning
 Phase 3: Execution
 Phase 4: Closedown

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-10

PM Phase 1: Project Initiation
 Assess size, scope and complexity, and
establish procedures.
 Establish:
 Initiationteam
 Relationship with customer
 Project initiation plan
 Management procedures
 Project management environment and workbook
 Project charter

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-11

 FIGURE 3-6
The project workbook for
the Purchasing
Fulfillment System
project contains nine key
elements

Project workbook
An online or hard-copy repository for all
project correspondence, inputs, outputs,
deliverables, procedures, and standards.
Used for performing project audits,
orienting new team members,
communicating with management and
customers, identifying future projects, and
performing post-project reviews.

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-12

Project Charter
 A short document prepared for the customer
describing project deliverables and outlining the
work required to complete the project
 Elements:
 Title and authorization date
 Project manager name and contact information
 Customer name and contact information
 Project start and completion dates
 Key stakeholders, roles, responsibilities
 Project objectives and description
 Key assumptions
 Signatures of stakeholders
Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-13
 PM Phase 2: Project Planning
Define clear, discrete activities and the work
needed to complete each activity. Tasks include:
1. Describing Project Scope, 6. Determining Project
Alternatives, and Feasibility Standards and Procedures
2. Dividing the Project into 7. Identifying and Assessing
Manageable Tasks Risk
3. Estimating Resources and 8. Creating a Preliminary
Creating a Resource Plan Budget
4. Developing a Preliminary 9. Developing a Project
Schedule Scope Statement
5. Developing a 10. Setting a Baseline Project
Communication Plan Plan

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-14

Planning Detail

FIGURE 3-8
Level of project
planning detail should
be high in the short
term, with less detail
as time goes on

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-15

Project Scope, Alternatives, and
Feasibility
 What problem or opportunity 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 Copyright © 2017 Pearson Education, Ltd. 3-16

Dividing Project into
Manageable Tasks
 Work Breakdown Structure (WBS)
 Division of project into manageable and
logically ordered tasks and subtasks
 Scheduling Diagrams
 Gantt chart: horizontal bars represent task
durations
 Network diagram: boxes and links represent
task dependencies

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-17

 Developing a Preliminary Schedule

WBS Gantt Chart

FIGURE 3-10
Gantt chart showing project tasks, duration times for those tasks, and predecessors
(Source: Microsoft Corporation.)
Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-18
Scheduling Diagrams Network Diagram
FIGURE 3-12
A network diagram illustrating tasks with rectangles (or ovals) and the
relationships and sequences of those activities with arrows
(Source: Microsoft Corporation.)

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-19

Estimating Resources, Creating
a Resource Plan
 Constructive Cost Model (COCOMO) –
an automated software estimation model
that uses historical project data and
current/future project characteristics to
estimate project costs
 People are the most important and
expensive resource
 Important to have a good balance between
specialization and task variety
Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-20
Developing a Communication
Plan
 Who are stakeholders?

 What information does each stakeholder need?

 When should information be produced?
 What are sources of information?
 Who will collect, store and validate info?
 Who will organize and document info?
 Who is the contact person for each stakeholder?
 What is the appropriate/best format for info?
 What communication medium should be used?
Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-21
Communication Plan

FIGURE 3-13
The project communication matrix
provides a high-level summary of the
communication plan
Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-22
Determining Project Standards
and Procedures
 Type of SDLC methodology
 Documentation styles
 Status updates
 Terminology

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-23

Identifying and Assessing Risk
 Sources of risk
 Consequences of risk
 Possible sources: new technology, user
resistance, critical resource availability,
competitive reactions, regulatory changes,
team member experience

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-24

Developing a Preliminary Budget
FIGURE 3-14
A financial cost and
benefit analysis for a
systems development
project (Source: Microsoft
Corporation.)

Spreadsheet
software is
good for this.

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-25

Setting a Baseline Project Plan
 A Baseline Project Plan provides an
estimate of the project’s tasks and
resource requirements and is used to
guide the next project phase—execution.
As new information is acquired during
project execution, the baseline plan will
continue to be updated.

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-26

PM Phase 3: Project Execution
 Plans created in prior phases are put into
action.
 Actions
 Execute baseline project plan.
 Monitor progress against baseline plan.
 Manage changes in baseline plan.
 Maintain project workbook.
 Communicate project status.

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-27

Monitoring Progress with a Gantt Chart
FIGURE 3-16
Gantt chart with tasks 3 and 7 completed and task 8 partially completed
(Source: Microsoft Corporation.)

Red bars indicate critical path; lines through bars indicate

percent complete.

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-28

Communication Methods

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-29

PM Phase 4: Project Closedown

 Bring the project to an end.

 NaturalTermination – Completed Successfully
 Unnatural Termination – Due to time and money

 Actions
 Close down the project.
 Conduct post-project reviews.
 Close the customer contract.

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-30

Representing and Scheduling
Project Plans
 Gantt Charts
 Network Diagrams
 PERT Calculations
 Critical Path Scheduling
 Project Management Software

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-31

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.

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-32

Gantt Charts vs. Network Diagrams
(Cont.)
Figure 3-18
Graphical diagrams that depict
project plans
(a) A Gantt chart
(b) A network diagram
(Source: Microsoft Corporation.)

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-33

Gantt Charts vs. Network Diagrams
(Cont.) Figure 3-20
A network diagram showing activities
(represented by circles) and sequence of
those activities (represented by arrows)

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-34

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

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-35

Example PERT Analysis

FIGURE 3-21
Estimated time calculations for the SPTS project
Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-36
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

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-37

Critical Path Example
(dependencies between tasks)
PRECEDING ACTIVITIES
indicate the activities that
must be completed before
the specified activity can
begin.

FIGURE 3-22 Sequence of Activities within the SPTS project

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-38

Critical Path Example (Cont.)

Network diagram
shows dependencies

FIGURE 3-24
A network diagram that illustrates the activities (circles) and the
sequence (arrows) of those activities

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-39

 Determining the Critical Path
 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.
 Critical path contains no activities with slack time.

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-40

Critical Path Calculation
FIGURE 3-25
A network diagram for the SPTS project showing estimated times for each
activity and the earliest and latest expected completion time for each activity

Early and late time calculations are determined and

critical path established. (Note: Activity #5 can begin
late without affecting project completion time.)
Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-41
Critical Path Calculation (cont.)
FIGURE 3-26
Activity slack time calculations for the SPTS project; all activities except
number 5 are on the critical path

Note the slack time in Activity #5.

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-42

 Critical Path Calculation (cont.)
Determining Critical Path and Calculating Float (Slack) by using forward and
backward pass method
9 4 2 7
4

E G H C
D

8 4
Start
3
End
F B
A

EF = ES + duration – 1 (For forward pass)

LS = LF – duration + 1 (For backward pass)
Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-43
 Critical Path Calculation (cont.)
9 4 2 7
4 5 13 14 17 18 19 20 26
1 4 E G H C
D

Start 8 4
3 5 12 13 16
End
1 3 F B
A

EF = ES + duration – 1 (For forward pass)

LS = LF – duration + 1 (For backward pass)

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-44

 Critical Path Calculation (cont.)
9 4 2 7
4 5 13 14 17 18 19 20 26
1 4 E G H C
D 5 13 14 17 18 19 20 26
1 4

Start 8 4
3 5 12 13 16
End
1 3 F B
A 6 13 23 26
3 5

EF = ES + duration – 1 (For forward pass)

LS = LF – duration + 1 (For backward pass)

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-45

Critical Path Calculation (cont.)
Determining Critical Path and Calculating Float (Slack) for the
following diagram.

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-46

Using Project Management
Software
 Many powerful software tools exist for
assisting with project management.
 Example: Microsoft Project can help with
 Entering project start or end date.
 Establishing tasks and task dependencies.
 Viewing project information as Gantt or
Network diagrams.

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-47

Project Start Date
FIGURE 3-27
Establishing a project starting date in Microsoft Project for Windows
(Source: Microsoft Corporation.)

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-48

Entering Tasks
FIGURE 3-29
Entering tasks and assigning task relationships in Microsoft project
for Windows (Source: Microsoft Corporation.)

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-49

Summary
 In this chapter you learned how to:
 explain the process of managing an information
systems project, including project initiation, project
planning, project execution, and project
closedown,
 describe how to represent and schedule project
plans using Gantt charts and network diagrams,
and
 explain how commercial project management
software packages can be used to assist in
representing and managing project schedules

Chapter 3 Copyright © 2017 Pearson Education, Ltd. 3-50