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ACTIVITY No. 1
PRE2 – INFORMATION SYSTEM ANALYSIS AND DESIGN (ISAD)
First Semester, A.Y. 2023-2024

MODULE 1
MANAGING SYSTEMS
PROJECT

Group No. 2

Group Leader: Abcde, Mark Eivan M.

Group Members:
1. Acosta, Katrina M.
2. Aguas, Trisha Nicole N.
3. Alfonso, Chelsey B.
4. Alfonso, Jhezerie Kim S.
5. Balbin, Arman S.
6. Baligod, Kyla D.
7. Baluyut, Ashley C.
8. Bermudez, Shermaine Ann Joyce S.
9. Canlas, Erika Mae Q.
10. Dampil, Maurice M.
11. Mallari, Cathrina P.
12. Manabat, Madalyn S.
13. Martillano, Mia L.
14. Mateo, Mira Joy S.
15. Matubang, Narvelyn S.
16. Tabisula, Michaella G.
 INDIVIDUAL GRADING
NAME Contribution Initiative Effort Total
(Surname, First Name MI) 50% 30% 20%
1. Abcede, Mark Eivan M. 50 30 20 100
2. Acosta, Katrina M. 50 28 19 97
3. Aguas, Trisha Nicole N. 50 30 20 100
4. Alfonso, Chelsey B. 49 30 20 99
5. Alfonso, Jhezerie Kim S. 50 29 20 99
6. Balbin, Arman S. 45 25 15 85
7. Baligod, Kyla D. 50 30 20 100
8. Baluyut, Ashley C. 50 29 19 98
9. Bermudez, Shermaine 50 28 19 97
Ann Joyce S.
10. Canlas, Erika Mae Q. 50 29 20 99
11. Dampil, Maurice M. 50 29 19 98
12. Mallari, Cathrina P. 50 30 20 100
13. Manabat, Madalyn S. 50 28 20 98
14. Martillano, Mia L. 50 29 19 98
15. Mateo, Mira Joy S. 49 29 19 97
16. Matubang, Narvelyn S. 50 30 19 99
17. Tabisula, Michaella G. 50 29 20 99

RUBRICS for Group Grading GRADE

Completeness 30%
Accuracy 30%
Content 20%
Presentation 10%
Timely Submission 10%
Total
 FINAL GRADE for the Activity
Name Individual Grade Group Grade Final Grade
1. Abcede, Mark Eivan
M.
2. Acosta, Katrina M.
3. Aguas, Trisha
Nicole N.
4. Alfonso, Chelsey
B.
5. Alfonso, Jhezerie
Kim S.
6. Balbin, Arman S.
7. Baligod, Kyla D.
8. Baluyut, Ashley C.
9. Bermudez,
Shermaine Ann
Joyce S.
10. Canlas, Erika Mae
Q.
11. Dampil, Maurice
M.
12. Mallari, Cathrina
P.
13. Manabat, Madalyn
S.
14. Martillano, Mia L.
15. Mateo, Mira Joy S.
16. Matubang,
Narvelyn S.
17. Tabisula,
Michaella G.
 CHAPTER 3: MANAGING SYSTEMS PROJECTS

Overview of Project Management

Project Management

• The use of specific knowledge, skills, tools, and techniques to deliver

something of value to people.
• It includes planning, scheduling, monitoring, controlling, and reporting.

What Shapes a Project?

• A successful project must be completed on time, within budget, and deliver

a quality product that satisfies users and meets requirements.

FIGURE 3-4

What Does a Project Manager Do?

• Whether a project involves a new office building or an information system,

good leadership is essential.
• Project manager, or Project leader
 o In a systems project, they are usually the senior systems analyst or
an IT department manager if the project is large.
o 4 activities / functions typically performed by project managers:

a. Project planning

- Includes identifying all project tasks and estimating the

completion time and cost of each.

b. Project scheduling
- Involves the creation of a specific timetable, usually in the
form of charts that show tasks, task dependencies, and
critical tasks that might delay the project.
- It uses Gantt charts and PERT/CPM charts, which are
explained in the following sections.

c. Project monitoring
- The project manager must monitor the progress, evaluate the
results, and take corrective action when necessary to control
the project and stay on target.

d. Project reporting
- Includes regular progress reports to management, users, and
the project team itself.
- Effective reporting requires strong communication skills and
a sense of what others want and need to know about the
project.

Analyst or Programmer/analyst

• Might manage smaller projects.

• In addition to the project manager, most large projects have a project
coordinator.

Project coordinator

• Handles administrative responsibilities for the team and negotiates with

users who might have conflicting requirements or want changes that would
require additional time or expense.
Project Activities and Planning Steps

• 3 key steps in project planning:

a. Create a work breakdown structure.
b. Identify task patterns.
c. Calculate the critical path.

FIGURE 3-5 The matrix in this Figure shows the typical activities that
the project leader performs as the project develops. When the project
becomes operational, he or she also manages the people, the schedule,
the budget, and the progress.

STEP 1: CREATE A WORK BREAKDOWN STRUCTURE

Work Breakdown Structure (WBS)

• Breaks a project into smaller tasks,

• Using Gantt charts and PERT/CPM charts as primary chart types.

What is a Gantt Chart?

 • Developed 100 years ago by Henry L. Gantt
• Henry L. Gantt
o A mechanical engineer and management consultant.
• Goal of Gannt Chart is to design a chart that shows planned and actual
progress on a project.
• Horizontal bar chart that represents a set of tasks.
• Can simplify a complex project by combining several activities into a task
group.
• Gantt Charts added contrasting colors for easy identification of tax running
behind schedule, ahead of schedule, or upcoming.

Figure 3-6 shows a Gantt chart with five tasks in a vertical array, time displayed
on the horizontal axis, and hidden tasks, showing planned starting and ending
times, elapsed time, and actual calendar dates.

FIGURE 3-6 In this Gantt chart, notice the task group represented by
Task 4. Also notice the yellow bars that show the percentage of task
completion.

What Is a PERT/CPM Chart?

Program Evaluation Review Technique (PERT)

• The U.S. Navy developed a system to manage complex projects, including

the construction of nuclear submarines.
Critical Path Method (CPM)

• Developed by private industry to meet similar project management needs.

 Note: The distinction between the two methods has disappeared over time, and
today the technique is called either PERT, CPM, or PERT/CPM. The textbook
will use the term PERT chart.
PERT
• Is a bottom-up technique that analyzes complex projects as individual tasks.
• It involves:
a. Identifying tasks,
b. Estimating their durations, and
c. Determining their logical order.
• It helps calculate project completion time and identify critical tasks for on-
time completion.
• The PERT chart is also known as a network diagram, as shown in Figure
3-7.

FIGURE 3-7 The top screen is a Gantt chart with 11 tasks, and a PERT chart in
the bottom screen shows the same project. Although not visible in this zoomed-
out view, the PERT chart boxes provide detailed information about task duration,
start dates, and finish dates.
Which Type of Chart Is Better?

• PERT charts are useful for scheduling, monitoring, and controlling actual
work, converting task start and finish times to actual dates.
• They display complex task patterns and relationships, helping managers
address high priority issues.
• Both PERT and Gantt charts are not mutually exclusive techniques.

Identifying Tasks in a Work Breakdown Structure

• Work breakdown structure

o Must clearly identify each task and include an estimated duration.

• Task or activity

o Is any work that has a beginning and an end and requires the use
of company resources such as people, time, or money.
o Are basic units of work that the project manager plans, schedules,
and monitors — so they should be relatively small and manageable.

• In addition to tasks, every project has events, or milestones.

• Event or milestone
o Is a recognizable reference point that you can use to monitor
progress.
• Example:
An event like user training, system data conversion, or interview
completion is valuable if it's determined when it will occur, unlike a
milestone like 50% program testing completion.
FIGURE 3-8 Illustrates the process of creating, distributing, and tabulating a
questionnaire, with each task marked by a recognizable event. To manage a
project effectively, a work breakdown structure (WBS) is created by breaking it
down into smaller tasks, starting with a list of all tasks.

Listing the Tasks

• One trick is to start by highlighting the individual tasks, as shown in the

second version.
• Adding bullets makes the tasks stand out more clearly, as shown in the third
version.

• The next step is to number the tasks and create a table, with columns for
task number, description, duration, and predecessor tasks.

FIGURE 3-9 The three versions show how

to transform a task statement into a list of
specific tasks for a work breakdown
structure.
FIGURE 3-10 The three versions show how to transform a task statement into a
list of specific tasks for a work breakdown structure.

Estimating Task Duration

• Task duration

o Can be hours, days, or weeks —depending on the project.

• The following example uses days, the units of measurement are called
person days.
• Person-day

o Represents the work that one person can complete in one day.

• Some tasks can be divided evenly so it is possible to use different

combinations of time and people, up to a point.
• In most systems analysis tasks, however, time and people are not
interchangeable.
• Project managers often use a weighted formula for estimating the duration
of each task.
• The project manager first makes three times estimates for each task:

a. An optimistic, or best-case estimate (B),

b. A probable - case estimate (P),
c. A pessimistic, or worst-case estimate (W).
 • The manager then assigns a weight, which is an importance value, to each
estimate.

o The weight can vary, but a common approach is to use a ratio of B = 1,

P = 4, and W = 1.
o The expected task duration is calculated as follows:
(B+4P+W)
6

o Example:

A project manager might estimate that a file-conversion task

could be completed in as few as 20 days or could take as
many as 34 days, but most likely will require 24 days. Using
the formula, the expected task duration is 25 days, calculated
as follows:

Factors Affecting Duration

o When developing duration estimates, project managers consider four

factors:

a. Project size

o A project manager must estimate project time, identify all tasks

from fact-finding to system implementation, regardless of
methodology, and consider factors like meetings, reviews,
training, and other team productivity factors when estimating
each phase.

b. Human resources
o To attract and retain talent, project managers must manage
development teams, hire additional systems analysts, and
manage turnover, job vacancies, and escalating salaries in the
technology sector.
c. Experience with similar projects
 o Project managers can use experience methods to create time
and cost estimates for similar information systems, particularly for
small or medium -sized projects.
o However, large systems with more variables may require more
reliable estimates. In cases where experience is limited, a
prototype or pilot system can be used.

d. Constraints

o Constraints are conditions or requirements that a system must

meet, such as time, dollars, or people, and project managers
must realistically achieve these requirements.

STEP 2: IDENTIFY TASK PATTERNS

Task Pattern

o Tasks in a work breakdown structure are arranged in a logical sequence.

What Are Task Patterns?

o In any project, large or small, tasks depend on each other and must be
performed in a sequence, not unlike the commands in a software program.
o Task patterns can involve:
a. Dependent tasks
b. Multiple successor tasks
c. Multiple predecessor tasks.
o In larger projects, these patterns can be very complex, and an analyst must
study the logical flow carefully.

How Do I Use Task Boxes to Create a Model?

o In a PERT/CPM chart, project tasks are shown as rectangular boxes,

arranged in the sequence in which they must be performed.
o Each rectangular box, called a task box, has five sections:

a. Task Name

o It should be brief and descriptive, but it does not have to be

unique in the project.
o For example, a task named Conduct Interviews might occur in
several phases of the project.

b. Task ID

o It can be a number or code that provides unique identification.

c. Task Duration

o The amount of time it will take to complete a task.

o All tasks must use the same time units, which can be hours, days,
weeks, or months, depending on the project.
o An actual project starts on a specific date, but can also be
measured from a point in time, such as Day 1.

d. Start Day / Date

o The time that a task is scheduled to begin.

e. Finish Day / Date
o Is the time that a task is scheduled to be completed.
o To calculate the finish day or date, you add the duration to the
start day or date.

FIGURE 3-13 Each section of the task

box contains important information about
the task, including the Task Name, Task
ID, Task Duration, Start Day/Date, and
Finish Day/Date.
What Are the Main Types of Task Patterns?

• A project is based on a pattern of tasks.

• In a large project, the overall pattern would be quite complex, but it can be
broken down into three basic patterns:

a. Dependent tasks

o Tasks must be completed one after another, like the relay race
shown in Figure 3-14, because one depends on the other.

FIGURE 3-14 In a relay race, each runner is dependent on the preceding runner
and cannot start until the earlier runner finishes
FIGURE 3-15 This example of a dependent task shows that the finish time of
Task 1, Day 5, controls the start date of Task 2, which is Day 6.

b. Multiple Successor Tasks

o When several tasks can start at the same time, each is called a
concurrent task.
o Often, two or more concurrent tasks depend on a single prior task,
which is called a predecessor task.
o In this situation, each concurrent task is called a successor task.

FIGURE 3-16 This example of multiple successor tasks shows that the
finish time for Task 1 determines the start time for both Tasks 2 and 3.

c. Multiple Predecessor Tasks

o Suppose that a task requires two or more prior tasks to be

completed before it can start.
FIGURE 3-17 This example of multiple predecessor tasks shows that the start time
for a successor task must be the latest (largest) finish time for any of its preceding
tasks. In the example shown, Task 1 ends on Day 15, while Task 2 ends on Day
5, so Task 1 controls the start time for Task 3.

How Do I Identify Task Patterns?

• You can identify task patterns by carefully looking at the wordings of the
task statement.
• Then, when or and

o Are action words that signal a sequence of events.

o Examples:

a. Do Task 1, then do Task 2

- Describes dependent tasks that must be completed on after

the other.

b. When Task 2 is finished, start two tasks: Task 3 and Task 4

- Describes multiple successor tasks that can both start as soon

as Task 2 is finished.

c. When Tasks 5 and 6 are done, start Task 7

- Indicates that Task 7 is a multiple predecessor task because

it can’t start until two or more previous tasks all are completed.

How Do I Work With Complex Task Patterns?

• When several task patterns combine, you must study the facts very carefully
to understand the logic and sequence.
• A project schedule will not be accurate if the underlying task pattern is
incorrect.
• Example:

Consider the following three fact statements and the task patterns they
represent.

a. Dependent Tasks
- Perform Task 1.
- When Task 1 is complete, perform Task 2.

FIGURE 3-18

b. Dependent Tasks and Multiple Successor Tasks

- Perform Task 1.

- When Task 1 is complete, perform Task 2.

- When Task 2 is finished, start two tasks: Task 3 and Task 4.

- When Task 3 is complete, start two more tasks: Task 5 and Task
6.

FIGURE 3-19

c. Dependent Tasks, Multiple Successor Tasks, and Multiple

Predecessor Tasks
 - Perform Task 1.

- When Task 1 is complete, perform Task 2.

- When Task 2 is finished, start two Tasks: Task 3 and Task 4.

- When Task 3 is complete, start two more tasks: Task 5 and Task
6.

- When Tasks 5 and 6 are done, start Task 7.

- Then, when Tasks 4 and 7 are finished, perform Task 8.

FIGURE 3-20

STEP 3: CALCULATE THE CRITICAL PATH

• Task Patterns

o Determine the order in which the tasks are performed.

• Once the task sequence has been defined, a project manager can schedule
the tasks and calculate the critical path.
What is a Critical Path?

Critical Path

• Is a series of tasks which, if delayed, would affect the completion date of

the overall project.
• If any task on the critical path falls behind schedule, the entire project will
be delayed.

• Example:

Suppose that you invite Joan and Jim to your home for dinner. Joan
arrives on time, but Jim arrives 30 minutes late. Jim’s arrival is part of
the critical path, because you do not want to start without him, so the
meal will be served 30 minutes later than originally planned.

• Project Managers

o Must always be aware of the critical path, so they can respond quickly
to keep the project on track.

• Microsoft Project and other project management software

o Can highlight the series of tasks that form the critical path.

How Do I Calculate the Critical Path?

• Figure 3-21 shows a training project with five tasks. Notice that the analyst
has arranged the tasks and entered task names, IDs, and durations. First,
you should review the task patterns.
• In this example,
o Task 1 is followed by Task 2, which is a dependent task.
o Task 2 has two successor tasks: Task 3 and Task 4.
o Tasks 3 and 4 are predecessor tasks for Task 5.
o The next step is to determine start and finish dates, which will
determine the critical path for the project.
 o The following explanation will guide you through a step-by-step
process. The result is shown in Figure 3-22 on the next page.

FIGURE 3-21 Example of a PERT/CPM chart with five tasks. Task 2 is a

dependent task that has multiple successor tasks. Task 5 has multiple predecessor
tasks. In this figure, the analyst has arranged the tasks and entered task names,
IDs, and durations.

• The next step is to determine start and finish dates, which will determine the
critical path for the project.

FIGURE 3-22 Now the analyst has entered the start and finish times, using the
rules explained in this section. Notice that the overall project has a duration of 95
days.

• Task 1 starts on Day 1 and has a duration of 10 days, so the finish date is
Day 10.
 • Task 2, which is dependent on Task 1, can start on Day 11 — the day after
Task 1 ends. With a duration of 30 days, Task 2 will end on Day 40.

• Tasks 3 and 4 are multiple successor tasks that can start after Task 2 is
done. Task 2 ends on Day 40, so Tasks 3 and 4 both can start on Day 41.
Task 3 has a duration of 5 days, and will end on Day 45. Task 4 has a
duration of 25 days, and will not end until Day 65.

• Task 5 depends on Tasks 3 and 4, which are multiple predecessors.

Because Task 5 depends on both tasks, it cannot start until the later of the
two tasks is complete. In this example, Task 3 ends earlier, but Task 4 will
not be completed until Day 65, so Task 5 cannot start until Day 66.

PROJECT MONITORING AND CONTROL

• Regardless of whether the project was planned and scheduled with project
management software or in some other manner, the project manager must
keep track of the following:
o The tasks and progress of team members,
o Compare actual progress with the project plan,
o Verify the completion of project milestones, and
o Set standards and ensure that they are followed.

Monitoring and Control Techniques

Structured walk-through

• Is a review of a project team member’s work by other members of the team.

• It takes place throughout the SDLC and are called design reviews, code
reviews, or testing reviews, depending on the phase in which they occur.

Maintaining a schedule

• Maintaining a project schedule can be challenging, and most projects run

into at least some problems or delays
• The better the original plan, the easier it will be to control the project.
 • If enough milestones and frequent checkpoints exist, problems will be
detected rapidly.
• Project managers spend most of their time tracking the tasks along the
critical path, because delays in those tasks have the greatest potential to
delay or jeopardize the project.

REPORTING
• Members of the project team regularly report their progress to the project
manager, who in turn reports to management and users.
• As shown in Figure 3-23, the project manager collects, verifies, organizes,
and evaluates the information he or she receives from the team.
• Then the manager decides which information needs to be passed along,
prepares a summary that can be understood easily, adds comments and
explanations if needed, and submits it to management and users.

FIGURE 3-23 Members of the project team regularly report their progress to the
project manager, who in turn reports to management and users.

Project Status Meetings

• Project managers schedule regular meetings to update the project team and
discuss project status, issues, problems, and opportunities.
• The sessions give team members an opportunity to share information,
discuss common problems, and explain new techniques.
Project Status Report

• Ethical Responsibility

- The case emphasizes the ethical responsibility of a project manager to

report problems promptly, highlighting the importance of ethical
considerations in such situations.

• Reporting Hierarchy

- Project managers have a reporting hierarchy that includes immediate

supervisors, upper management, and users.

• Use of Gantt Charts

- Progress reports often include Gantt charts to visually represent the

project's status. This graphical representation aids in conveying project
progress effectively

• Balancing Reporting Extremes

- Project managers need to strike a balance between being overly

cautious, reporting every potential issue, and being too reserved, waiting
until problems become severe.

• Effective Communication

- When reporting problems, it's crucial for project managers to not only
inform management but also explain their strategies for handling and
monitoring the issues.

Project Management Examples

• The examples given are: PERT and CM which follows the steps below.
o Step 1 involves creating a Work Breakdown Structure (WBS) where you
identify tasks, determine dependencies, and record task details like
name, ID, and duration.
 o Step 2. focuses on entering start and finish times based on guidelines.
• For example, if Task 1 has a one-day duration, you set its start and finish
times as Day 1. Subsequent tasks (2 and 3) start on Day 2, with durations
added sequentially from left to right.

PERT/CPM Example

• Figure 3-25 shows a list of 11 tasks. The example is more complex, but the
same guidelines apply.

• Notice that each task has an ID, a description, a duration, and a reference
to predecessor tasks, if any, which must be completed before the task can
begin.

• Also notice that dependent tasks can have one predecessor task, or
several.

• You construct a PERT/CPM chart from this task list in a two-step process:

FIGURE 3-25 Example of a

table listing I I task,
together with descriptions,
durations, and predecessor
tasks.

o STEP 1: CREATE THE WORK BREAKDOWN STRUCTURE

- In the first step, as shown in Figure 3-26, you identify the tasks,
determine task dependencies, and enter the task name, ID, and
duration.
 - Notice that this example includes dependent tasks, multiple
successor tasks, and multiple predecessor tasks.

o STEP 2: ENTER START AND FINISH TIMES

- In the second step, as shown in Figure 3-27 on the next page, you
enter the start and finish times by applying the guidelines in this
section.
- For example, Task 1 has a one-day duration, so you enter the start
and finish times for Task 1 as Day 1.
- Then you enter Day 2 as the start time for successor Tasks 2 and
3.
- Continuing from left to right, you add the task duration for each
task to its start time to determine its finish time.
- As you proceed, there are three important rules you must keep in
mind:

a. If a successor task has more than one predecessor

task, use the latest finish time of the predecessor tasks to
determine the start time for the successor task.
b. If a predecessor task has more than one successor
task, use the predecessor task’s finish time to determine
the start time for all successor tasks.
c. Continuing from left to right, add the task duration for
each task to its start time to determine and enter its finish
time. Again, be very careful not to add too many days. For
example, if a task starts on Day 10 and has a duration of
5 days, then the finish would be Day 14 — not Day 15.
FIGURE 3-26 To transform a task list into a PERT/CPM chart, you first enter the
task name, ID, duration, and predecessors for each task. Notice that this example
includes dependent tasks, tasks with multiple successors, and tasks with multiple
predecessors.

When you enter all the start and finish times, you determine that the project will be
completed on Day 155. Also, you note that Tasks 1, 2, 4, 6, 9, and 11 represent
the critical path shown by the red arrows.

FIGURE 3-27 To complete the PERT/CPM chart, you apply the guidelines
explained in this section. For example, Task 1 has a one-day duration, so you enter
the start and finish for Task 1 as Day 1. Then you enter Day 2 as the start for
successor Tasks 2 and 3.

Software-Driven Examples

• Project managers use powerful software to help plan, schedule, monitor,

and report on a project.
• Most project management programs offer features such as PERT/CPM,
Gantt charts, resource scheduling, project calendars, and cost tracking.
• Regardless of which software you use, you can see from the examples
below that project schedules, task estimates, and personnel assignments
all are interrelated.
• One significant advantage of integrated interactive project management
software is that it allows the project manager to adjust schedules, estimates,
and resource assignments rapidly to develop a workable plan.

Microsoft Project

• It is a full-featured project management program that holds the dominant

share of the market.

• On the Web, Microsoft offers demo versions, training, and tips.

• Although Microsoft is the industry leader, many other vendors offer project
management software, and you can explore these options by searching on
the Web.

• Microsoft Project are similar to PERT/CPM task boxes.

• Functions in Microsoft Project are the following:

o Task assignment
o Budget targets
o Progress reports
o Schedule adjustments
 • The latest version of Project is Microsoft Project 2010: Standard,
Professional, Server for enterprise projects.

• Availability of a free version for Microsoft Project is 60 days.

• Alternative software is Open Workbench, which offers similar features for

free.

Open Workbench

• Is available as free software, complete with manuals and sample projects,

as shown in Figure 3-28.

• Is a free, open-source project management program with powerful features

and capabilities.

FIGURE 3-28

Work Breakdown Structure

• Creation process is the same for Microsoft Project and Open Workbench.

• Tasks, durations, and task patterns are essential.

• Gantt chart and PERT chart creation with task dependencies and dates.
Gannt Chart

• The program automatically creates a Gantt chart based on entered tasks,

durations, and predecessor tasks.

• Has 12 horizontal bars connected with arrows to represent task

dependencies.

Network Diagram

• After creating the Gantt chart, there's an option to view project tasks and
dependencies in a Microsoft Project network diagram, similar to a PERT
chart. This can be accessed from the View menu.

FIGURE 3-31 Using Microsoft Project, you can display a network diagram, which
is similar to a PERT chart. Notice that the critical path appears as a red line.

RISK MANAGEMENT

• Every IT project involves risks that systems analysts and project managers
must address.
• Risk
o Is an event that could affect the project negatively.
• Risk management
 o Is the process of identifying, analyzing, anticipating, and monitoring
risks to minimize their impact on the project.

Steps in Risk Management

• The first step in risk management is to develop a specific plan.

• Although project management experts differ with regard to the number of
steps or phases, a basic list would include the following tasks:
o Develop a risk management plan
- A risk management plan includes a review of the project’s
scope, stakeholders, budget, schedule, and any other internal
or external factors that might affect the project.
- The plan should define project roles and responsibilities, risk
management methods and procedures, categories of risks,
and contingency plans.
o Identify the risks

- Risk identification lists each risk and assesses the

likelihood that it could affect the project.
- The details would depend on the specific project, but most
lists would include a means of identification, and a brief
description of the risk, what might cause it to occur, who
would be responsible for responding, and the potential impact
of the risk.

o Analyze the risks

- This typically is a two-step process:

a. Qualitative risk analysis

➢ Evaluates each risk by estimating the probability

that it will occur and the degree of impact.
➢ Project managers can use a formula to weigh
risk and impact values, or they can display the
results in a two-axis grid.
➢ Example:
 Microsoft Excel XY chart can be used to display
the matrix, as shown in Figure 3-33. In the chart,
notice the various combinations of risk and
impact ratings for the five sample values. This
tool can help a project manager focus on the
most critical areas, where risk probability and
potential impact are high.

FIGURE 3-33 You can use a Microsoft Excel XY chart type to display a risk matrix
that shows risk probability and potential impact.

b. Quantitative risk analysis

➢ Its purpose is to understand the actual impact in

terms of dollars, time, project scope, or quality.
➢ It can involve a modeling process called what-if
analysis, which allows a project manager to
vary one or more element(s) in a model to
measure the effect on other elements.

o Create a risk response plan

- A risk response plan is a proactive effort to anticipate risk and

describe an action plan to deal with it. An effective risk response plan
 can reduce the overall impact by triggering timely and appropriate
action.

o Monitor risks

- This activity is ongoing throughout the risk management process. It

is important to conduct a continuous tracking process that can
identify new risks, notice changes in existing risks, and update any
other areas of the risk management plan.

Risk Management Software

• Most project management software includes powerful features that allow

the following:

o A project manager to assign specific dates as constraints,

o Align task dependencies,
o Note external factors that might affect a task,
o Track progress, and
o Display tasks that are behind schedule.

• In addition, some vendors offer risk management add-ons such as the one
shown in Figure 3-34.
 FIGURE 3-34 Intaver Institute offers an add-on risk management package
for Microsoft Project.

Microsoft's Risk Management Model

• Microsoft’s risk management model includes the following factors:

o Probability, which represents the likelihood that the risk will happen, is
expressed as a percentage
o Impact, which indicates the degree of adverse effect should the risk
occur, on a scale of 1 to 10
o Cost, which indicates the potential financial impact of the risk
o Category, which specifies the risk type
o Description, which specifies the nature of the risk
o Mitigation plan, which identifies plans to control or limit the risk

MANAGING FOR SUCCESS

• To be successful, an information system must satisfy business

requirements, stay within budget, be completed on time, and — most
important of all — be managed effectively.
• When a project develops problems, the reasons typically involve business,
budget, or schedule issues, as explained in the following sections.

Business Issues

• The major objective of every system is to provide a solution to a business

problem or opportunity.
• If the system does not do this, then it is a failure.
• When the information system does not meet business requirements,
causes might include the following:
o Unidentified or unclear requirements,
o Inadequately defined scope,
 o Imprecise targets, shortcuts or sloppy work during systems
analysis,
o Poor design choices,
o Insufficient testing or inadequate testing procedures, and
o Lack of change control procedures.
• Systems also fail because of changes in the organization’s culture, funding,
or objectives.

Budget Issues

• Cost overruns typically result from one or more of the following:

o Unrealistic estimates that are too optimistic or based on incomplete
information.
o Failure to develop an accurate forecast that considers all costs over the
life of the project.
o Poor monitoring of progress and slow response to early warning signs
of problems.
o Schedule delays due to factors that were not foreseen.
o Human resource issues, including turnover, inadequate training, and
motivation.

Project Creep

• Unclear scope and definition can lead to expanding gradually without

specific authorization.

Schedule Issues

• Problems with timetables and project milestones can indicate a failure to

the following:
o Recognize task dependencies,
o Confusion between effort and progress,
o Poor monitoring and control methods,
o Personality conflicts among team members, or
o Turnover of project personnel.
• The failure of an IT project also can be caused by poor project management
techniques.
Failure of Project

• If the project manager fails to do the following:

a. Plan
b. Evaluate
c. Staff
d. Direct
e. Organize
f. Control
g. Supervise
h. Communicate
i. Motivate

THE BOTTOM LINE

Project manager must have the following:

• He or she must be alert, technically competent and highly resourceful.

• Good in communication with strong human resource skill.
• A project manager must be proud in handling successful project.

A project manager can choose the following when experiencing problem:

• Alternatives can include trimming the project requirements

• Adding to the project resources
• delaying the project deadline
• Improving management controls and procedures Note: When a project
experiences delay or cost overruns, the system still can be delivered on
time and within budget if several less critical requirements are trimmed
• The system can be delivered to satisfy the most necessary requirements
and additional features can be added later as a part of maintenance or
enhancement project.
Why the project is in trouble?

• Probably because of lack of resources or organizational support,

management might be willing to give the project more commitment and
higher priority.

Brook's Law

• Stated by Frederick Brooks

• Who observed that adding manpower to a late software only makes it
later.
• He concludes that new workers on a project first had to be educated and
instructed by existing employees whose own productivity was reduced
accordingly.