Chapter Two

Managing Information Systems Projects

A project is a planned undertaking of a series of related activities to reach an objective that has a
beginning and an end.

Process Management is the process of planning and controlling the development of a system within a
specified timeframe at a minimum cost with the right functionality.

A project manager is 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.

Creating and implementing successful projects requires managing the resources, activities, and
tasks needed to complete the information systems project.

Project management is an important aspect of the development of information systems and a critical
skill for a system analyst.

The focus of project management is to ensure that systems development project meets customer
expectations and are delivered within budget and time constraints.

2.1. Reasons for undertaking system projects

To solve problems
To take advantage of business opportunities
By directives from managers, government or any external body
2.2. Measures of Project Success
– The resulting information system is acceptable to the customer.
– The system was delivered “on time.”
– The system was delivered “within budget.”
– The system development process had a minimal impact on ongoing business operations.
• These measurements are from the perspective of the project manager.
• Failures and limited successes far outnumber successful information systems. Some studies show
that 60-75% of all IT projects can be considered failures.
2.3. Project management functions
Scoping – scope defines the boundaries of the project, if you can’t scope project expectations and
constraints, you can’t plan activities, estimate costs and manage expectations.
Planning – identifies the required tasks to complete the project.
Estimating- Identifying the resource needed to complete the project.
How much time? How many people? What skills will be needed? Etc
Each task that must be completed must be estimated
Scheduling – given the project plan, the project manager is responsible for scheduling all project
activities. It should be developed with an understanding of the required tasks, task duration and task
prerequisites.

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 Organizing – members of the project team should understand their own individual roles and
responsibilities as well as their reporting relationships to the project manager.
Directing – once the project has begun the project manager directs the team’s activities. It involves
coordinating, delegating, motivating, advising, appraise and reward team member.
Controlling – the most important and difficult function. Monitor and reporting progress against
goals, schedule and costs and make appropriate adjustments when necessary.
Closing – Good project managers always assess success and failure at the conclusion of the
project. They learn from their mistakes and plan for continuous improvement.
2.4. The causes of failed projects

1. Failure to establish upper management commitment to the project

2. Lack of organizations commitment to the systems development methodology
3. Taking shortcuts through and around the system development t methodology
4. Poor expectation management (Scope and Feature creep)
5. Premature commitment to a fixed budget and schedule
6. Poor estimating techniques
7. Over optimism
8. The mythical man- month
9. Inadequate people management skills
10. Failure to adapt to business change
11. Insufficient resource
12. Failure to “manage to the plan”

2.5. The four phases of project management include:

1) Initiating the project: defining the scope
2) Planning the project: defining activities
3) Executing the project: put into action
4) Closing the project: termination

We will discuss all of the phases in detail.

2.5.1. PHASE 1: Initiating the project

➢ An opportunity to create business value from using Information Technology initiates a project.
➢ Projects are selected based on business needs and project risks.
➢ During this phase, the project manager performs several activities to assess the size, scope and
complexity of the project and to establish procedures to support subsequent activities.

The type of activities that are performed during this phase are:
1. Establishing the project initiation team
Involves organizing an initial core of project team members to assist in accomplishing the
project initiation activities.
2. Establishing a relationship with a customer

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 A thorough understanding of your customer builds stronger partnerships and higher
levels of trust.
Assigning a link to client from team members
3. Establish the project initiation plan
✓ Defines the activities required to organize the initialization team while it is
working to define the scope of the project.
✓ Preliminary information collection and analysis
✓ To define scope
✓ Defining deliverables, project steps and deadlines
4. Establishing management procedures
✓ Successful projects require the development of effective management procedures.
✓ Team communication and reporting procedures
✓ Job assignment and roles
✓ Project change procedures
✓ Project funding and billing
5. Establishing project management environment and project workbook
✓ The focus is to collect and organize the tools that you will use while managing the
project and to construct the project workbook.
✓ Project Workbook is an online or hardcopy repository for all project
correspondence, inputs, outputs, deliverables, procedures and standards that is used
for performing the project audits, orienting new team members, communicating with
management and customers, identifying future projects and performing post-project
reviews.

Project Initiation is complete once these five activities have been performed. The work performed
here is reviewed at a meeting attended by management, customers and project team members. An
outcome of this meeting is a decision to continue the project, modify it or abandon it.

2.5.2. PHASE 2: Planning the project

If the system requests reviewed committee approved the initiated project, a more detailed project
plan is developed during the project planning phase.

Project planning involves defining clear, discrete activities and the work needed to complete each
activity within a single project.

The type of activities that you can perform during project planning is:

1. Describing project scope, alternatives and feasibility.

The purpose of this activity is to understand the content and complexity of the

project. The team members should reach an agreement about:

? 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?
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 2. Dividing the project into manageable tasks

The process of dividing the entire project into manageable tasks and logically orders them to ensure a
smooth evolution between tasks is known as Work Break down Structure. It is represented using
Gantt chart.

Gantt chart is a graphical representation of a project that shows each task as a horizontal bar whose
length is proportional to its time for completion.

Gantt charts does not show how tasks must be ordered (precedence) but simply show when an activity
should begin and end against calendar dates.

Defining tasks in too much detail will make the management of the project unnecessary complex.
Therefore, a task:

Can be done by one person or a well-defined group

Has a single and identifiable deliverable. (The task is the process of creating the
deliverables.)
Has a known method or technique.
Has well-accepted predecessor and successor steps.
Is measurable so that percent completed can be determined.
3. Estimating resources and creating a resource plan.

The goal of this activity is to estimate resource requirements for each project activity and use this
information to create a project resource plan. The resource plan helps assemble and deploy resources in
the most effective manner.

People are the most important, and expensive, part of project resource planning. Project time estimates
for task completion and overall system quality are significantly influenced by the assignment of people
to tasks.
4. Developing a preliminary schedule

During this activity, we use the information on tasks and resource availability to assign time estimates
to each activity in the work breakdown structure. The schedule may be represented as a Gantt chart or
a network diagram.

A Network diagram is a graphical depiction of project tasks and their interrelationships. Using network
diagram, ordering of tasks can be shown by connecting tasks – depicted as rectangles or ovals – with its
predecessor and successor tasks.
5. Developing a communication plan

The goal of this activity is to outline the communication procedures among management, project team
members and the customer.
The communication plan includes when and how written and oral reports will be provided by the team,
how team members will coordinate work, what messages will be sent to announce the project to
interested parties, and what kinds of information will be shared with vendors and external contractors
involved with the project.
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 It is very important that free and open communication occurs among parties, with respect for
proprietary information and confidentiality with the customer.

6. Determining project standards and procedures

During this activity, you specify how various deliverables are produced and tested by your project team.

It will make it easier to train new team members when clear standards are in place. Also, you can
check the progress of the project at the end with this standard.

7. Identifying and assessing risk

The goal of this activity is to identify sources of project risk and to estimate the consequences
of those risks.
Risks might arise from
✓ The use of new technology
✓ Prospective users’ resistance to change
✓ Availability of critical resources
✓ Competitive reactions
✓ Changes in regulatory actions due to the construction of a system
✓ Team member inexperience with technology or the business area.
8. Creating a preliminary budget

During this phase, you need to create a preliminary budget that outlines the planned experiences and
revenues associated with your project.

The project justification will demonstrate that the benefits are worth these costs.

9. Developing a Statement of Work

Statement of Work is useful to make sure that you, the customer, and the other project team members
have a clear understanding of the intended project size, duration and outcomes.

10. Setting a Baseline Project Plan (BPP)

The baseline 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.

At the end of the project planning phase, a review of the baseline project plan (BPP) is conducted to
double- check all the information in the plan.

Then, you submit the plan and make a brief presentation to the project steering committee at this time.
The committee can endorse the plan, ask for modifications or determine that it is not wise to continue the
project as currently outlined.

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 2.5.3. PHASE 3: Executing the Project

This is the third phase of the project management process in which the plans created in the prior phases
(BPP) are put into action.

The activities that you can perform during project execution are:

1. Executing the Baseline Project Plan

As project manager, you initiate the execution of project activities, acquire and assign resources, orient
and train new team members, keep the project on schedule, assure the quality of project deliverables.

2. Monitoring project progress against the BPP

If the project gets ahead of (or behind) schedule, you may have to adjust resources, activities and
budgets. It can result in modifications to the current plan.

Monitoring progress also means that the project leader must evaluate and appraise each team member,
occasionally change work assignments or request changes in personnel, and provide feedback to the
employee’s supervisor.

3. Managing changes to the BPP

Sources of change to the BPP can be formal request for change from team members, a slipped
completion date for an activity, a failed activity that must be redone, the identification of a new activity
that becomes evident later in the project or unforeseen change in personnel due to sickness, resignation
or termination.

When an event occurs that delays the completion of an activity, you typically have two choices:

▪ Devise a way to get back on schedule or

▪ Revise the plan

4. Maintaining the project workbook

The workbook provides the documentation new team members require to assimilate project tasks quickly.
It explains why design decisions were made and is a primary source of information for producing all
project reports.

5. Communicating the project status

Clear communication is required to create a shared understanding of the activities and goals of the
project; such understanding assures better coordination of activities.

2.5.4. PHASE 4: Closing down the Project

This is the final phase of the project management process which focuses on bringing a project to an end.
Projects can conclude with a natural or unnatural termination.
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 A natural termination occurs when the requirements of the project have been met – the project has
been completed and is a success.

An unnatural termination occurs when the project is stopped before completion because:

• The assumption used to guide the project is proved false

• The performance of the system o development group was somehow inadequate
• The requirements are no longer relevant or valid in the customer’s business environment
• Running out of time or budget or both

Regardless of the termination, several activities are performed. These are:

1. Closing down the project

Here, it is important to notify all interested parties that the project has been completed and to finalize all
project documentation and financial records so that a final review of the project can be conducted.

Project completion may signify:

• Job assignment changes

• Personnel appraisal
• Thank you letters to cooperatives
• Handles negative personnel issues
2. Conducting post-project reviews

The objective of these reviews is to determine the strengths and weaknesses of project
deliverables, the processes used to create them, and the project management process.

The system development methodology adopted by an organization is a living guideline that must
undergo continual improvement.

3. Closing the customer contact

It is vital (very important) that you gain agreement from your customer that all contractual obligations
have been met and that further work is either their responsibility or covered under another System Service
Request or contract.

2.6. Representing and Scheduling Project Plan

A project manager has a wide variety of techniques available for depicting and documenting project
plans. The most commonly used methods are Gantt Charts and Network Diagrams.

The differences between the two are:

Gantt visually shows the duration tasks whereas a Network diagram visually shows
the sequence dependencies between tasks.

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 Gantt visually shows the time overlap of tasks whereas a Network diagram does not show
time overlap but does show which tasks could be done in parallel.
Some forms of Gantt charts can visually show slack time available within an earliest start and
latest finish duration. A network diagram shows this by data within activity rectangles.

Fig. Gantt chart

Fig. Network Diagram

Most project managers use computer-based systems to help develop their graphical and textual reports
like Microsoft Project, Microsoft Visio, etc.

A project manager will periodically review the status of all ongoing project task activities to assess
whether the activities will be completed early, on time, or late.

Representing Project Plans

Project scheduling and management requires that time, costs and resources be controlled. Resources
are any person, group of people, piece of equipment, or material used in accomplishing an activity.

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 Network diagraming is a critical path scheduling technique used for controlling resources.

A critical path refers to a sequence of task activities whose order and durations directly affect the
completion date of a project.

Slack time is the amount of time that an activity can be delayed without delaying the project.

A Network diagram is one of the most widely used and best-known scheduling methods. You should use
a Network diagram when tasks:

Are well-defined and have a clear beginning and endpoint

Can be worked on independently of other tasks
Are ordered
Serve the purpose of the project

A major strength of Network diagraming is its ability to represent how completion times vary for
activities. Because of this, it is often used than Gantt charts to manage projects such as Information
Systems Development are composed of circles or rectangles representing activities and connecting
arrows showing required workflows.

Calculating Expected Time Durations Using PERT

PERT (Program, Evaluation and Review Technique) is a technique that uses optimistic, pessimistic
and realistic time estimates to calculate the Expected Time for a particular task.

The equation to calculate expected time duration is:

O +4r + p
ET=
6
Where
ET = expected time for the completion for an activity

o = optimistic completion time for an activity

r = realistic completion time for an activity

p = pessimistic completion time for an activity

For Example, suppose your instructor asked you to calculate an expected time for the completion of an
upcoming programming assignment. You estimate an optimistic time of 2 hours, a pessimistic time of 8
hours, and a most likely time of 6 hours. Using PERT, the expected time for completing this assignment
is 5.67 hours.

Types of PERT chart

1. Activity-on-arrow: is a traditional PERT where arrows represent tasks and nodes represent
dependencies.
2. Activity-on-node: is a modern PERT where boxes (nodes) represent activities, arrows
represent dependencies.

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 To produce an activity on node PERT chart:

i) Draw a node for the first task, including task name and duration
ii) Draw boxes for the first task to its successors
iii) Draw arrows from the first task to its successors
iv) Continue with all remaining tasks

Example:

Task D P
A 3 - D
B 5 A B
C 3 A A
D 11 B E H
E 7 B
F 4 C C G
G 9 E, F
H 2 D, G
F
Calculate Scheduled Dates
Dt = Duration of task t
pred(t) = set of predecessor tasks of
Definitions
task t succ(t) = set of successor tasks of
ESt = Earliest start date for task t task t min(t) = Earliest date in the set
ECt = Earliest completion date for task t of tasks t max(t) = Latest date in the
LSt = Late start due for task t set of tasks t
LCt = Late completion for task t

First Pass

Calculate earliest possible start and completion dates for each task
Use estimated mean task duration (Tmean) and task dependencies
Set earliest start date of first task to 0
✓ ESt = 0
For all tasks t:
✓ ECt = ESt + Dt
For all tasks t except the first task
✓ ESt = EC max(pred(t))

Second Pass

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 Calculate latest possible start and completion dates for each task
o Use estimated completion dates, estimated mean task duration (Tmean) and task dependencies
Set Latest completion date for last task to its earliest completion date:
o LCn = ECn
Set Latest start date for last task
o LSn = LCn - Dn
For all tasks t except the last task
o LCt = LS (min(succ(t)))
o LSt = LCt - Dt

Calculate Slack time

There are two types of Slack time.

A) Time Slack Time

➢ The amount of time by which completion of a task can be delayed without delaying the start
of any other task
Calculating task slack (TS):
➢ For all tasks t
▪ TSt = ESmin(succ(t)) - ECt

Task slack shows how much the start or duration of a task can be delayed before affecting other tasks.
Delays less than or equal to task are acceptable.

B) Cumulative Slack Time

➢ The amount of time by which completion of a task can be delayed without affecting a delay in
the project’s final completion date

Calculating Cumulative slack

➢ For all tasks t

▪ CSt = LCt - ECt

Cumulative slack shows how much the start or duration of a task can be delayed before affecting the
project as a whole. Delays less than or equal to a task’s cumulative slack may affect the schedule, but will
not affect the project’s completion date.

Task D P ES EC LS LC TS CS
A 3 - 0 3 0 3 0 0
B 5 A 3 8 3 8 0 0
C 3 A 3 6 8 11 0 5
D 11 B 8 19 13 24 5 5
E 7 B 8 15 8 15 0 0
F 4 C 6 10 11 15 5 5
G 9 E, F 15 24 15 24 0 0
H 2 D, 24 26 24 26 0 0
G

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 Identify the critical path

Critical Path: the longest path in the task network, adding up successive task durations.

➢ Different paths may have different cumulative durations:

▪ A –B – D – H 21 Days
▪ A –B –E –G –H 26 Days
▪ A –C –F –G –H 21 Days
➢ The way to find critical path:
▪ Path involving all tasks with CS = 0 or
▪ Path with the longest cumulative duration
A –B –E –G –H
More than one branches can be on the critical path

D
B

A H
E
C
G
F
Importance of critical path:

▪ Indicate the total project duration

▪ Indicates tasks to closely watch to avoid project delay
▪ Critical path is highlighted in the PERT chart using color, double line or thicker lines for nodes
and arrows.

Producing Gantt chart

Characteristics:

▪ Shows tasks as a horizontal bar

▪ Length of bar is proportional to its time (duration)
▪ shows when an activity/ task should begin and end against calendar dates
▪ Different colors could be used to show different types of tasks
▪ It can be used to represent Plan Vs Progress by the use of parallel bars

All scheduling information is graphically represented in a Gantt chart:

▪ Task (with names) and durations

▪ Relation of task dates to calendar dates
▪ Relation of task dates to each other
▪ (optionally task dependencies)

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 The Gantt chart is the project manager’s most important tool:

▪ It provides an overview of the whole project

▪ The schedule of all tasks can be easily seen
▪ Task relationships/overlaps can be easily seen
▪ Progress can be tracked easily

Exercise

? Draw PERT chart and find the critical path for the following set of activities.
? Draw Gantt chart assuming that the duration is given in days and first task starts on April 1, 2010.

Activity Preceding Duration

A - 5
B A 6
C A 6
D B, C 2
E D 6
F D 5
G F 3
H E, G 1

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