Systems Analysis and Design Tenth Edition - Project Management PDF

Systems Analysis and Design Tenth Edition Global Edition Chapter 3 Project Management Copyright © 2020 Pearson Education Ltd. Learning Objectives (1 of 2) 3.1 Understand how projects are initiated and selected, defin...

Systems Analysis and Design Tenth Edition Global Edition Chapter 3 Project Management Copyright © 2020 Pearson Education Ltd. Learning Objectives (1 of 2) 3.1 Understand how projects are initiated and selected, define a business problem, and determine the feasibility of a proposed project 3.2 Evaluate hardware and software and the way it supports human interactions with technology 3.3 Forecast and analyze tangible and intangible costs and benefits Copyright © 2020 Pearson Education Ltd. Learning Objectives (2 of 2) 3.4 Manage a project by preparing a budget, creating a work breakdown structure, scheduling activities, and controlling the schedule and costs 3.5 Build and manage a project team 3.6 Professionally write and present an effective systems proposal, concentrating on both content and design Copyright © 2020 Pearson Education Ltd. Major Topics Project initiation Determining feasibility Determining resources Activity planning and control – Gantt charts – PERT diagrams Managing analysis and design activities The agile approach Copyright © 2020 Pearson Education Ltd. Project Management Fundamentals Project initiation Determining project feasibility Activity planning and control Project scheduling Managing systems analysis team members Copyright © 2020 Pearson Education Ltd. Project Initiation Problems in the organization – Problems that lend themselves to systems solutions Opportunities for improvement – Caused through upgrading, altering, or installing new systems Copyright © 2020 Pearson Education Ltd. Figure 3.1 Checking Output Observing employee behavior and listening to feedback are all ways to help the analyst pinpoint systems problems and opportunities. To Identify Problems Look for These Specific Signs: Check output against performance Too many errors criteria. Work completed slowly Work done incorrectly Work done incompletely Work not done at all Observe behavior of employees. High absenteeism High job dissatisfaction High job turnover Listen to external feedback from: Complaints Vendors and service providers. Suggestions for improvement Customers. Loss of sales Suppliers. Lower sales Copyright © 2020 Pearson Education Ltd. Problem Definition Problem statement – A paragraph or two stating the problem or opportunity Issues – Independent pieces pertaining to the problem or opportunity Objectives – Goals that match the issues point-by-point Requirements – The things that must be accomplished along with the possible solutions, and constraints that limit the development of the system Use the problem definition to create a preliminary test plan Copyright © 2020 Pearson Education Ltd. Problem Definition: Identifying Issues Find a number of points that may be included in one issue State the objective Determine the relative importance of the issues or objectives Identify which objectives are most critical Copyright © 2020 Pearson Education Ltd. Case: Catherine’s Catering Catherine’s Catering is a small business that caters meals, receptions, and banquets for business and social occasions A new convention center built in the city and a prospering business community increased the number of catering events. Catherine was able to manage the business using spreadsheets and word processing but had difficulty keeping up with the endless phone calls, changes to the number of guests, availability of specialty dietary items, scheduling new employees, etc. Catherine decided to hire an IT and business consulting company to help her address the problems her catering enterprise was facing. Copyright © 2020 Pearson Education Ltd. Case: Catherine’s Catering - Concerns The master chef ordered supplies from suppliers for each event Customers often called to change the number of guests for an event It was too time-consuming for Catherine and her staff to handle each request for catering Conflicts in employee schedules were occurring Catherine does not have any summary information about the number of events and types of meals Events that include service for sit-down meals are often held in banquet rooms and at other meeting halls Copyright © 2020 Pearson Education Ltd. Case: Catherine’s Catering Copyright © 2020 Pearson Education Ltd. Case: Catherine’s Catering Copyright © 2020 Pearson Education Ltd. Case: Catherine’s Catering Copyright © 2020 Pearson Education Ltd. Case: Catherine’s Catering – Test Plan Design test data to allow clients to view each different type of product. Test to ensure that a catering request has been entered with valid data, as well as each possible condition of invalid data. Test that all data fields pass all validation criteria for each field. Create a test plan that will confirm that clients are able to view event information and updates may not be made within five days. Test that the software works correctly for communicating directly with event facility personnel. Test the human resources system for scheduling part-time employees. Check scheduling software for valid updates and each invalid entry. Check that all queries and reports work correctly and contain the correct summary information. Copyright © 2020 Pearson Education Ltd. Selection of Projects Backing from management Appropriate timing of project commitment Possibility of improving attainment of organizational goals Practical in terms of resources for the system analyst and organization Worthwhile project compared with other ways the organization could invest resources Copyright © 2020 Pearson Education Ltd. Selection of Projects: Improving Attainment of Organizational Goals Improving corporate profits Supporting the competitive strategy of the organization Improving cooperation with vendors and partners Improving internal operations support Improving internal decision support so that decisions are more effective Improving customer service Increasing employee morale Copyright © 2020 Pearson Education Ltd. Defining Objectives Many possible objectives exist including: Speeding up a process Streamlining a process Combining processes Reducing errors in input Reducing redundant storage Reducing redundant output Improving system and subsystem integration Copyright © 2020 Pearson Education Ltd. Determining Feasibility Assessed in three principal ways – Operationally – Technically – Economically Copyright © 2020 Pearson Education Ltd. Figure 3.3 The Three Key Elements of Feasibility Include Technical, Economic, and Operational Feasibility The Three Key Elements of Feasibility Technical Feasibility – Add on to present system – Technology available to meet users’ needs Economic Feasibility – Systems analysts’ time – Cost of systems study – Cost of employees’ time for study – Estimated cost of hardware – Cost of packaged software or software development Operational Feasibility – Whether the system will operate when put in service – Whether the system will be used Copyright © 2020 Pearson Education Ltd. Technical Feasibility Can current technical resources be upgraded or added to in a manner that fulfills the request under consideration? If not, is there technology in existence that meets the specifications? Whether the organization has staff who are technically proficient to accomplish the objectives If not, can the organization hire additional coders, testers, experts, etc. Copyright © 2020 Pearson Education Ltd. Economic Feasibility Economic feasibility determines whether value of the investment exceeds the time and cost Includes: – Analyst and analyst team time – Business employee time – Hardware – Software – Software development Copyright © 2020 Pearson Education Ltd. Operational Feasibility Operational feasibility determines if the human resources are available to operate the system once it has been installed Users that do not want a new system may prevent it from becoming operationally feasible Copyright © 2020 Pearson Education Ltd. Estimating Workloads Systems analysts formulate numbers that represent both current and projected workloads for the system so that any hardware obtained will possess the capability to handle current and future workloads Copyright © 2020 Pearson Education Ltd. Figure 3.4 Comparisons of Workloads between Existing and Proposed Systems Blank Existing System Proposed System Task Compare performance of distribution Compare performance of distribution warehouses warehouses by running the summary program. on the Web-based dashboard. Method Computer programs are run when needed; Updates occur immediately; processing is done processing is done from the workstation. online. Personnel Distribution manager Distribution manager When and how Daily: Daily: Enter shipments on Excel spreadsheet; verify Enter shipments on the Web-based system using accuracy of spreadsheet manually; and then automatically backed up drop-down boxes. Data write files to backup media. are to remote location. Monthly: Monthly: Run program that summarizes daily records Compare warehouses online using the and prints report; get report and make performance dashboard; print only if needed. evaluations. Human time Daily: 20 minutes Daily: 10 minutes requirements Monthly: 30 minutes Monthly: 10 minutes Computer time Daily: 20 minutes Daily: 10 minutes requirements Monthly: 30 minutes Monthly: 10 minutes Copyright © 2020 Pearson Education Ltd. Ascertaining Hardware and Software Needs Steps used to determine hardware and software needs: – Inventory computer hardware currently available – Estimate current and future system workloads – Evaluate available hardware and software – Choose the vendor – Acquire the computer equipment Copyright © 2020 Pearson Education Ltd. Figure 3.5 Steps in Choosing Hardware and Software Copyright © 2020 Pearson Education Ltd. Inventorying Computer Hardware Type of equipment Operation status of the equipment Estimated age of equipment Projected life of equipment Physical location of equipment Department or person responsible for equipment Financial arrangement for equipment Copyright © 2020 Pearson Education Ltd. Acquisition of Computer Equipment Purchasing Using Cloud Services Copyright © 2020 Pearson Education Ltd. Evaluating Hardware for Purchase People That Evaluate Hardware – Management – Users – Systems analysts Information from vendors should be reviewed with management and users Workloads can be simulated and run on different systems, benchmarking Copyright © 2020 Pearson Education Ltd. Evaluating Hardware for Purchase Time required for average transactions Total volume capacity of the system Idle time of the CPU or network Size of memory provided Copyright © 2020 Pearson Education Ltd. Advantages of Purchasing Hardware Full control regarding the type of hardware and software Decide when to purchase it and when to replace it Often it is cheaper in the long run Tax advantages in some countries Copyright © 2020 Pearson Education Ltd. Disadvantages of Purchasing Hardware Initial cost is often very high Phasing in over time vs buying everything at once The risk of equipment obsolescence Full responsibility for the operation and maintenance Copyright © 2020 Pearson Education Ltd. Renting Time and Space in the Cloud Available cloud services may include: – Web hosting – Email hosting – Application hosting – Backup – Storage and processing of databases – Archiving – Ecommerce Copyright © 2020 Pearson Education Ltd. Renting Time and Space in the Cloud Cloud services are scalable Three main categories of cloud computing are – Software as a Service (SaaS) – Infrastructure as a Service (IaaS) – Platform as a Service (PaaS) Another option is to use a hybrid approach Copyright © 2020 Pearson Education Ltd. Strategic Cloud Computing Decisions Decisions on cloud computing can first be addressed on a strategic level Business should focus on: – Define a high-level business case that focuses on high-level benefits – Define core requirements – Define core technologies for the enterprise Copyright © 2020 Pearson Education Ltd. Benefits of Cloud Computing Less time spent maintaining legacy systems May be simpler to acquire IT services Scalable applications that can grow by adding more cloud resources Consistency across multiple platforms Capital is not tied up Copyright © 2020 Pearson Education Ltd. Drawbacks of Cloud Computing Loss of control of data stored in the cloud Potential security threats to data that is not stored on premises Reliability of the Internet as a platform Copyright © 2020 Pearson Education Ltd. Figure 3.6 Purchasing Hardware or Using Cloud Services Advantages and Disadvantages Blank Advantages Disadvantages Buying Full control over hardware and Initial cost is high computer software Risk of obsolescence Hardware Often cheaper in long run Risk of being stuck if choice was Provides tax advantages through wrong Depreciation Full responsibility for operation and maintenance Using cloud Maintenance and upgrades Company doesn’t control its own Services performed by provider data Ability to change software and Data security is at risk hardware rapidly Reliability risks of the Internet Scalable—can grow quickly platform Consistent over multiple platforms Proprietary APIs and software may No capital is tied up make switching providers difficult Copyright © 2020 Pearson Education Ltd. Evaluating Vendor Support Hardware support Software support Installation and training support Maintenance support Copyright © 2020 Pearson Education Ltd. Figure 3.7 Guidelines for Vendor Selection Vendor Services Specifics Vendors Typically Offer Hardware Support Full line of hardware Quality products Warranty Software Support Complete software needs Custom programming Warranty Installation and Training Commitment to schedule In-house training Technical assistance Maintenance Routine maintenance procedures Specified response time in emergencies Equipment loan while repair is being done Cloud Services Web hosting Email hosting Data storage Software as a Service Automatic software upgrades Support services Security and antivirus protection Copyright © 2020 Pearson Education Ltd. BYOD and BYOT BYOD: Bring your own device BYOT: Bring your own technology Employee uses their own device access corporate networks, data, and services remotely Copyright © 2020 Pearson Education Ltd. Benefits of BYOD and BYOT Building employee morale Potential for lowering the initial cost hardware purchase Facilitating remote, around-the-clock access to corporate computer networks Building on a familiar user interface to access corporate computing services, applications, databases, and storage Copyright © 2020 Pearson Education Ltd. Drawbacks of BYOD and BYOT Security risks posed by untrained users Loss of the device Theft of the device and its data Unauthorized access to corporate networks using personal mobile devices Copyright © 2020 Pearson Education Ltd. Software Alternatives Created custom software Purchased as COTS (commercial off-the-shelf) software Provided by an software as a service (SaaS) Copyright © 2020 Pearson Education Ltd. Created Custom Software When COTS software does not exist or cannot be identified for the desired application The software may exist but be unaffordable or not easily purchased or licensed When an organization is attempting to gain a competitive advantage “First mover” in the use of a particular technology or in its particular industry Organizations that have highly specialized requirements or exist in niche industries Copyright © 2020 Pearson Education Ltd. Purchasing COTS Software Consider using COTS software – when you can easily integrate the applications or packages into existing or planned systems – when you have identified no need to immediately or continuously change or customize systems for users Over half of all projects are built from the ground up, Fewer than half of all projects are developed from existing applications or components. The great majority are modified, some extensively. Less than 5 percent of software is off-the-shelf software that requires no modifications at all. Copyright © 2020 Pearson Education Ltd. Using the Services of a SaaS Provider Organizations may realize some benefits from taking an entirely different approach to procuring software: – Outsourcing some of the organization’s software needs to a SaaS provider that specializes in IT applications. Copyright © 2020 Pearson Education Ltd. Figure 3.8 Software Alternatives Blank Advantages Disadvantages Creating Custom Specific response to specialized business May be significantly higher initial cost compared Software needs to COTS software or ASP (Application Service Innovation may give firm a competitive Provider) advantage Necessity of hiring or working with a development In-house staff available to maintain software team Pride of ownership Ongoing maintenance Purchasing COTS Refined in the commercial world Programming focused; not business focused Packages Increased reliability Must live with the existing features Increased functionality Limited customization Often lower initial cost Uncertain financial future of vendor Already in use by other firms Less ownership and commitment Help and training comes with software Using SaaS Organizations that do not specialize in Loss of control of data, systems, IT employees, information systems can focus on what they and schedules do best (their strategic mission) Concern over the financial viability and long-run There is no need to hire, train, or retain a stability of the SaaS provider large IT staff Security, confidentiality, and privacy concerns There is no expenditure of employee time Loss of potential strategic corporate advantage on nonessential IT tasks regarding innovativeness of applications Copyright © 2020 Pearson Education Ltd. Software Evaluation Performance effectiveness Performance efficiency Ease of use Flexibility Quality of documentation Manufacturer support Copyright © 2020 Pearson Education Ltd. Figure 3.9 Guidelines for Evaluating Software Software Requirements Specific Software Features Performance Effectiveness Able to perform all required tasks Able to perform all tasks desired Well-designed display screens Adequate capacity Performance Efficiency Fast response time Efficient input Efficient output Efficient storage of data Efficient backup Ease of Use Satisfactory user interface Help menus available “Read Me” files for last-minute changes Flexible interface Adequate feedback Good error recovery Flexibility Options for input Options for output Usable with other software Quality of Documentation Good organization Adequate online tutorial Website with FAQ Manufacturer Support Technical support hotline Newsletter/email Website with downloadable product updates Copyright © 2020 Pearson Education Ltd. Systems Analysis and Design Tenth Edition Global Edition Chapter 3 - II Project Management Copyright © 2020 Pearson Education Ltd. Identifying and Forecasting Costs and Benefits Systems analysts are required to predict certain key variables before submitting a proposal to the client To some degree, a systems analyst will rely on a what-if analysis Cannot rely on what-if analysis for everything if the proposal is to be credible, meaningful, and valuable A systems analyst has many forecasting models available Copyright © 2020 Pearson Education Ltd. Identifying and Forecasting Costs and Benefits Judgment methods – Estimates from the sales force – Surveys to estimate customer demand – Delphi studies – Creating scenarios – Drawing historical analogies Copyright © 2020 Pearson Education Ltd. Identifying and Forecasting Costs and Benefits If historical data are available – Conditional: ▪ There is an association among variables in the model ▪ Correlation, regression, leading indicators, econometrics, and input/output models – Unconditional: ▪ Do not need to find or identify any relationships ▪ Graphical judgment, moving averages, and analysis of time-series data Copyright © 2020 Pearson Education Ltd. Estimation of Trends Moving averages – Some seasonal, cyclical, or random patterns may be smoothed, leaving the trend pattern – Calculate the arithmetic mean of data from a fixed number of periods Graphical judgment – it is easily noticeable that the widely fluctuating data are smoothed – Moving averages are more strongly affected by extreme values than by using graphical judgment or estimating by using other methods, such as least squares Copyright © 2020 Pearson Education Ltd. Identifying Benefits and Costs Tangible benefits are advantages measurable in dollars through the use of the information system Intangible benefits are difficult to measure Tangible costs are accurately projected by the systems analyst and accounting personnel Intangible costs are difficult to estimate and may not be known Copyright © 2020 Pearson Education Ltd. Tangible Benefits Advantages measurable in dollars that accrue to the organization through the use of the information system Examples: – Increase in the speed of processing – Access to otherwise inaccessible information – Access to information on a more timely basis – The advantage of the computer’s superior calculating power – Decreases in the amount of employee time needed to complete specific tasks Can be measured in terms of dollars, resources, or time saved. Copyright © 2020 Pearson Education Ltd. Intangible Benefits Intangible benefits are benefits from use of the information system that are difficult to measure Examples: – Improving the decision-making process – Enhancing accuracy – Becoming more competitive in customer service – Maintaining a good business image – Increasing job satisfaction for employees by eliminating tedious tasks Copyright © 2020 Pearson Education Ltd. Tangible Costs Those that can be accurately projected by systems analysts and the business’ accounting personnel Examples: – Cost of equipment – Cost of resources – Cost of systems analysts’ time – Cost of programmers’ time – Employees’ salaries Copyright © 2020 Pearson Education Ltd. Intangible Costs Those that are difficult to estimate and may not be known Examples: – Losing a competitive edge – Losing the reputation of being first – Declining company image – Ineffective decision making Copyright © 2020 Pearson Education Ltd. Comparing Costs and Benefits Break-even analysis – the total costs of the current system and the proposed system intersect represents the break-even point – Total costs include the costs that recur during operation of a system plus the developmental costs that occur only once Payback – useful when a business is growing and volume is a key variable in costs – Can determine how long it will take for the benefits of the system to payback the costs of developing it Copyright © 2020 Pearson Education Ltd. Figure 3.10 Break-Even Analysis Copyright © 2020 Pearson Education Ltd. Figure 3.11 Payback Analysis Showing a Payback Period of Three and a Half Years Copyright © 2020 Pearson Education Ltd. Work Breakdown Structure Often a project needs to be broken down into smaller tasks or activities These tasks together make up a work breakdown structure (WBS) Copyright © 2020 Pearson Education Ltd. Work Breakdown Structure Properties Each task or activity contains one deliverable, or tangible outcome, from the activity Each task can be assigned to a single individual or a single group Each task has a responsible person monitoring and controlling performance Copyright © 2020 Pearson Education Ltd. Developing a Work Breakdown Structure (WBS) Decomposition, starting with large ideas, then breaking them down into manageable activities Product oriented, building a website can be broken down into many parts Process-oriented, emphasizes the importance of each phase Copyright © 2020 Pearson Education Ltd. Figure 3.12 A Sample Work Breakdown Structure (WBS) Copyright © 2020 Pearson Education Ltd. Time Estimation Techniques Relying on experience Using analogies Using three-point estimation Identifying function points Using time estimation software Copyright © 2020 Pearson Education Ltd. Relying on experience & Using analogies Your experience gives you a most likely estimate as well as a pessimistic estimate. You will not only know how much time some tasks will likely take, you will also know how much time it will take if something goes wrong. Using analogies approach involves identifying a project that is in some ways similar to the one you are about to begin and then describing the analogy. You will need to build two models, including two Program Evaluation and Review Technique (PERT) or network diagrams, and compare their similarities. Copyright © 2020 Pearson Education Ltd. Using three-point estimation Start by developing three time estimates for completing each task and then apply a simple formula to calculate a weighted average 𝐸 = (𝑎 + 4 ∗ 𝑚 + 𝑏)/6 where 𝑎 is the best-case estimate, 𝑏 is the worst-case time estimate, and 𝑚 is the most likely time estimate. For example, – writing a software module may take 10 days in most cases, – but if the project is easier than expected, it might take only 8 days, – if the coder accepts a job elsewhere, it may take 30 days. – Estimated time = 13 days Copyright © 2020 Pearson Education Ltd. Function Point Analysis Takes the five main components of a computer system and rates them in terms of complexity: – External inputs – External outputs – External queries – Internal logical files – External interface files For more information, you can visit the International Function Point Users Group’s website at www.ifpug.org Copyright © 2020 Pearson Education Ltd. Using time estimation software Estimating models, such as the Constructive Cost Model (COCOMO II), Constructive Systems Engineering Cost Model (COSYSMO), or software based on one or both of these models, such as SystemStar, work as follows: – enter an estimate of the size of the system – other variables ▪ experience or capability of the team ▪ type of platform or operating system ▪ the level of usability of the finished software ▪ other factors that can drive up costs Copyright © 2020 Pearson Education Ltd. Project Scheduling Figure 3.13 Beginning to Plan a Project by Breaking It into Three Major Activities Copyright © 2020 Pearson Education Ltd. Figure 3.14 Refining the Planning and Scheduling of Analysis Activities by Adding Detailed Tasks and Establishing the Time Required to Complete the Tasks Copyright © 2020 Pearson Education Ltd. Project Scheduling Gantt Charts – Simple – Lends itself to end user communication – Drawn to scale PERT diagrams (also called network diagrams) – Project is represented by a network of nodes and arrows that are evaluated to determine the critical activities, improve the schedule if necessary, and review progress once the project is undertaken – Useful when activities can be done in parallel Copyright © 2020 Pearson Education Ltd. Figure 3.15 Using a Two-Dimensional Gantt Chart for Planning Activities That Can Be Accomplished in Parallel Copyright © 2020 Pearson Education Ltd. PERT Diagram (Network Diagram) Arrows represent the activities The circular nodes are present to - Recognize that an activity is completed - Indicate which activities need to be completed before new activities may be undertaken (which is called precedence) The project takes 15 days to complete Copyright © 2020 Pearson Education Ltd. PERT Diagram (Network Diagram) Dummy activities (pseudo-activities) to preserve the logic of or to clarify the diagram In Project 1, activity C can be started only if both A and B are done In Project 2, however, activity C requires only activity B’s completion Project 1 takes 14 days to complete, Project 2 takes only 9 days Copyright © 2020 Pearson Education Ltd. Figure 3.16 A Gantt Chart Compared with a PERT Diagram (Network Diagram) for Scheduling Activities Copyright © 2020 Pearson Education Ltd. PERT Diagram Advantages Easy identification of the order of precedence Easy identification of the critical path (the path that can cause delay) and thus critical activities Easy determination of slack time (The leeway to fall behind on noncritical paths) Copyright © 2020 Pearson Education Ltd. Figure 3.19 A Completed PERT Diagram for the Analysis Phase of a Systems Project Copyright © 2020 Pearson Education Ltd. Figure 3.19 A Completed PERT Diagram for the Analysis Phase of a Systems Project Path 1: 10–20–30–50–60–70–80 (critical path) Path 2: 10–20–30–40–60–70–80 Path 3: 10–30–50–60–70–80 Path 4: 10–30–40–60–70–80 Copyright © 2020 Pearson Education Ltd. Controlling a Project How to estimate cost and prepare a budget How to predict and prepare for risk How to make up time using expediting How to control costs Copyright © 2020 Pearson Education Ltd. Estimating Costs Using a work breakdown structure – Estimate costs for each activity in the work breakdown structure – Prepare a budget for the project and have it approved by the organization or client – Manage and control the costs throughout the project Copyright © 2020 Pearson Education Ltd. Approaches to Cost Estimation Basing estimates on similar projects, also called the top- down approach Building bottom-up estimates (for unique projects) – ask each responsible project team member to estimate the cost Using parametric modeling – making estimates for each of the many factors Copyright © 2020 Pearson Education Ltd. Estimating Costs There are two main reasons cost estimates fail – analyst is likely to be overly optimistic – analyst may want to move past the cost estimation process When working for a client, a systems analyst needs to conform to the standard process the client uses to develop a budget Copyright © 2020 Pearson Education Ltd. Project Risk Project failures may be prevented by: – Training – Experience – Learning why other projects have failed Fishbone diagram (or cause-and-effect diagram, or an Ishikawa diagram) systematically lists all of the possible problems that can occur Copyright © 2020 Pearson Education Ltd. Figure 3.21 Fishbone Diagram Copyright © 2020 Pearson Education Ltd. Expediting Expediting is speeding up a process Expediting can help reduce the time it takes to complete an entire project The expedited activities have to be on the critical path Copyright © 2020 Pearson Education Ltd. Expediting 6 6 5 5 5 4 Copyright © 2020 Pearson Education Ltd. Controlling Costs Using Earned Value Management (EVM) A technique used to help determine progress (or setbacks) on a project Involves: – Project cost – Project schedule – Performance of the project team Copyright © 2020 Pearson Education Ltd. Four Key Measures in EVM Budget at completion (BAC) is the total budget for the project Planned value (PV) is the value of the work that is to be completed on the project Actual Cost (AC) is the total cost incurred in completing the work Earned value (EV) is an estimate of the value of the work performed thus far 𝐸𝑉 = 𝑃𝑉 ∗ 𝑝 Copyright © 2020 Pearson Education Ltd. Earned Value Management (EVM) The budget at completion is the planned budget of $18,000 In the Month 4, actual cost $17,000 vs $15,000 cumulative estimate Completed 50 percent of Stage 4 at the end of the Month 4 𝑝 = (100 + 100 + 100 + 50)/(100 + 100 + 100 + 100) =.875 𝐸𝑉 = 𝑃𝑉 ∗ 𝑝 = $15,000 ∗.875 = $13,125 Copyright © 2020 Pearson Education Ltd. Performance Measures for EVM Cost variance (CV) → 𝐶𝑉 = 𝐸𝑉 − 𝐴𝐶 – whether the project or task is costing more than we have planned Schedule variance (SV) → 𝑆𝑉 = 𝐸𝑉 − 𝑃𝑉 – whether the project is taking more time than planned Cost performance index (CPI) → 𝐶𝑃𝐼 = 𝐸𝑉/𝐴𝐶 – signifies whether a project is over budget Schedule performance index (SPI) → 𝑆𝑃𝐼 = 𝐸𝑉/𝑃𝑉 – whether a project is falling behind schedule Copyright © 2020 Pearson Education Ltd. Performance Measures for EVM 𝐶𝑉 = 𝐸𝑉 − 𝐴𝐶 = $13,125 − $17,000 = (−$3,875) – meaning that we are $3,875 over budget 𝑆𝑉 = 𝐸𝑉 − 𝑃𝑉 = $13,125 − $15,000 = (−$1,875) – we are behind schedule and are over budget 𝐶𝑃𝐼 = 𝐸𝑉/𝐴𝐶 = $13,125 / $17,000 =.772 – team is performing below the expected rate of performance 𝑆𝑃𝐼 = 𝐸𝑉/𝑃𝑉 = $13,125 / $15,000 =.875 – project is behind schedule Copyright © 2020 Pearson Education Ltd. Earned Value Management (EVM) Estimate To Complete (ETC) – considers how the team has done in the past – estimates how much additional money will be required 𝐸𝑇𝐶 = (𝐵𝐴𝐶 − 𝐸𝑉) / 𝐶𝑃𝐼 𝐸𝑇𝐶 = ($18,000 − $13,125) /.772 = $6,315 Estimate At Completion – represents the revised budget 𝐸𝐴𝐶 = 𝐴𝐶 + 𝐸𝑇𝐶 𝐸𝐴𝐶 = $17,000 + $6,315 = $23,315 Copyright © 2020 Pearson Education Ltd. Earned Value Management (EVM) Copyright © 2020 Pearson Education Ltd. Managing the Project Team Team management – Assembling a team – Team communication strategies – Project productivity goals – Team member motivation Copyright © 2020 Pearson Education Ltd. Assembling a Team Shared value of team work Good work ethic Honesty Competency Readiness to take on leadership based on expertise Motivation Enthusiasm for the project Trust of teammates Copyright © 2020 Pearson Education Ltd. Communication Strategies Teams often have two leaders: – Task leader: leads members to accomplish tasks – Socioemotional leader: concerned with social relationships The systems analyst must manage: – Team members – Their activities – Their time and resources Copyright © 2020 Pearson Education Ltd. Project Productivity Goals and Motivation Successful projects require that reasonable productivity goals for tangible outputs and process activities be set. Goal-setting helps to motivate team members. Copyright © 2020 Pearson Education Ltd. Ecommerce Project Management Ecommerce and traditional software project management differences: – The data used by ecommerce systems is scattered across the organization – Ecommerce systems need a staff with a wide variety of skills – Partnerships must be built externally and internally well ahead of implementation – Security is of utmost importance Copyright © 2020 Pearson Education Ltd. Project Charter Describes in a written document what the expected results of the systems project are and the time frame for delivery Copyright © 2020 Pearson Education Ltd. Project Charter Clarifies These Questions (1 of 2) What does the user expect of the project? What is the scope of the project? What analysis methods will the analyst use to interact with users? Who are the key participants? What are the project deliverables? Copyright © 2020 Pearson Education Ltd. Project Charter Clarifies These Questions (2 of 2) Who will evaluate the system and how will they evaluate it? What is the estimated project timeline? Who will train the users? Who will maintain the system? Copyright © 2020 Pearson Education Ltd. The Systems Proposal Cover letter Title page of project Table of contents Executive summary Outline of systems study with appropriate documentation Detailed results of the systems study Systems alternatives Systems analysts recommendations Summary Appendices Copyright © 2020 Pearson Education Ltd. Using Figures for Effective Communication Integrating figures into your proposal helps demonstrate that you are responsive to the different ways people absorb information – Effective use of tables – Effective use of graphs Copyright © 2020 Pearson Education Ltd. Effective Use of Tables Integrate into the body of the proposal Try to fit the entire table vertically on a single page. Number and title the table at the top of the page. Label each row and column. Use a boxed table if room permits. Use footnotes if necessary to explain detailed information contained in the table. Copyright © 2020 Pearson Education Ltd. Figure 3.26 Guidelines for Creating Effective Tables Copyright © 2020 Pearson Education Ltd. Effective Use of Graphs Choose a style of graph that communicates your intended meaning well Integrate the graph into the body of the proposal Give the graph a sequential figure number and a meaningful title Label each axis, and any lines, columns, bars, or pieces of the pie on the graph Include a key to indicate differently colored lines, shaded bars, or crosshatched areas Copyright © 2020 Pearson Education Ltd. Figure 3.27 Effective Use of Graphs Copyright © 2020 Pearson Education Ltd. Summary (1 of 3) Project management fundamentals – Project initiation – Determining project feasibility – Activity planning and control – Project scheduling – Managing systems analysis team members Problem definition – Issues of the present system – The objective for each issue – The requirements that must be included in all proposed systems Copyright © 2020 Pearson Education Ltd. Summary (2 of 3) Project selection – Backed by management – Commitment of resources – Attains goals – Practical – Important Feasibility – Operational – Technical – Economic Copyright © 2020 Pearson Education Ltd. Summary (3 of 3) Acquiring hardware and software Work breakdown structure Project planning – Gantt charts – PERT – Function point analysis Team management Ecommerce projects Preparing a system proposal Copyright © 2020 Pearson Education Ltd.