Sesi-2

Session 2 Project Initiation & Project Management Dana Indra Sensuse ([email protected]) Indra Budi ([email protected]) Most slides are adopted from the textbook “Systems Analysis and Design with the Unified Modeling Language, Version 2.0” Alan Dennis, Barbara Wixom, and David Tegarden © 2005 Chapter 3 & 4

Analysis and Design Information System – MTI Fasilkom 2008

PROJECT INITIATION

Analysis and Design Information System – MTI Fasilkom 2008

Key Ideas An opportunity to create business value from using information technology initiates a project.  Feasibility analysis helps determine whether or not to proceed with the IS project.  Projects are selected based on business needs and project risks. 

Analysis and Design Information System – MTI Fasilkom 2008

Key Ideas 

The project sponsor is a key person proposing development or adoption of the new information technology .  



Many organizations keep on eye on emerging technology As a first mover

The approval committee reviews proposals from various groups and units in the organization and decides which to commit to developing.

Analysis and Design Information System – MTI Fasilkom 2008

How Do Projects Begin?  





Business needs should drive projects. Project sponsor recognizes business need for new system and desires to see it implemented. Business needs determine the system’s functionality (what it will do). The project’s business value should be clear  



Tangible (e.g. 2% reduction in operational cost) Intangible (e.g. improve customer service)

Formally initiate the project  system request

Analysis and Design Information System – MTI Fasilkom 2008

System Request  

It is a document that describes the business reasons for building a system and the value to provide. Lists key elements of the project      

Project name Project sponsor Business need Business requirement (Functionality) Business value Special issues or constraints

Analysis and Design Information System – MTI Fasilkom 2008

Elements of the System Request Form 

Project sponsor 

The person who initiates the project 



Members of the Finance Dept, IT Manager, CIO, Vice President of Marketing

Business Need 

The business-related reason for initiating the system Increase sales  Improve market share  Improve customer service  Decrease product defects 

Analysis and Design Information System – MTI Fasilkom 2008

Cont’ 

Functionality (business requirement) 

The capabilities that the system will provide in very high level of detail Provide online access  Produce management report  Capture customer demographic information  Include product search capabilities 



Business Value 

The benefits that the system will create for the organization 3 percent increase in sales  1 percent increase in market share  5 percent reduction in production cost 

Analysis and Design Information System – MTI Fasilkom 2008

Cont’ 

Special Issues  Issues

that are relevant to the implementation of the system and committee make decisions about the project  System

needed in time for the Christmas holiday

season  Government-mandated deadline for May 30.

Analysis and Design Information System – MTI Fasilkom 2008

System Request Examples     

Project sponsor – VP of Marketing Business need – Reach new customers and improve service to existing customers Business requirements – Provide web-based shopping capability Business value - $750,000 in new customer sales; $1.8M in existing customer sales Special issues or constraints – System must be operational by holiday shopping season

Analysis and Design Information System – MTI Fasilkom 2008

Stakeholder Requests In case of our Group Project, we use stakeholder requests template instead of system request  Stakeholder Request Template  Stakeholder Request Example 

Analysis and Design Information System – MTI Fasilkom 2008

Preliminary Project Acceptance System request/Stakeholder request is reviewed by approval committee  Based on information provided, project merits are assessed.  Worthy projects are accepted and undergo additional investigation – the feasibility analysis. 

Analysis and Design Information System – MTI Fasilkom 2008

Your Turn 

If you were building a web-based system for course registration,   



What is the business need? What would be the business requirements? What would be the business value (tangible and intangible)? What special issues or constraints would you foresee?

Analysis and Design Information System – MTI Fasilkom 2008

FEASIBILITY ANALYSIS

Analysis and Design Information System – MTI Fasilkom 2008

Feasibility Analysis Once the need for the system and its business requirements have been defined  feasibility analysis  Detailing Expected Costs and Benefits 

 Technical

feasibility  Economic feasibility  Organizational feasibility

Analysis and Design Information System – MTI Fasilkom 2008

Technical Feasibility: Can We Build It?  Familiarity with application  Knowledge 

If analysts are unfamiliar with the business application area, they have a greater chance of misunderstanding the users or missing opportunities for improvement.

 Familiarity  Extension

 Project

with technology

of existing firm technologies

size

 Number



of business domain

of people, time, and features

Compatibility with the existing technology

Analysis and Design Information System – MTI Fasilkom 2008

Economic Feasibility: Should We Build It? Development costs  Annual operational costs  Annual benefits  Intangible costs and benefit 

Analysis and Design Information System – MTI Fasilkom 2008

Steps to Conducts Economic Feasibility       

Identify Costs and Benefits Assign Values to Costs and Benefits Determine Cash Flow Determine Net Present Value Determine Return on Investment Calculate Break-Even Point Graph Break-Even Point

Analysis and Design Information System – MTI Fasilkom 2008

Tangible vs. Intangible Costs 



Tangible Costs – Includes revenue that the system enables the organization to collect, such as increased sales. Intangible Costs – Are base on intuition and belief rather than “hard numbers.”

Analysis and Design Information System – MTI Fasilkom 2008

Example Costs and Benefits for Economic Feasibility Development Costs Development Team Salaries Consultant Fees Development Training Hardware and Software Vendor Installation Office Space and Equipment Data Conversion Costs

Operational Costs Software Upgrade Software Licensing Fees Hardware Repair Hardware Upgrade Operational Team Salaries Communications Charges User Training

Tangible Benefits Increased Sales Reduction in Staff Reduction in Inventory Reductions in IT Costs Better Supplier Prices

Intangible Benefits Increased Market Share Increased Brand Recognition Higher Quality Products Improved Customer Service Better Supplier Relation

Analysis and Design Information System – MTI Fasilkom 2008

Assign Cost and Benefit Values 

Difficult, but essential to estimate  Work

with people who are most familiar with the area to develop estimates  Consultants, sales projection, order level, etc  Past project, industry report, etc

Intangibles should also be quantified  If intangibles cannot be quantified, list and include as part of supporting material 

Analysis and Design Information System – MTI Fasilkom 2008

Cash Flow Method for Cost Benefit Analysis

Analysis and Design Information System – MTI Fasilkom 2008

Return on Investment Calculation RETURN ON INVESTMENT EQUALS Total (benefits - costs) Divided by

Total costs

Analysis and Design Information System – MTI Fasilkom 2008

Present Value Calculation PRESENT VALUE EQUALS Some amount of money

Divided by (1 + interest rate)n Where “n” equals the number of periods Analysis and Design Information System – MTI Fasilkom 2008

Net Present Value (NPV) Calculation NET PRESENT VALUE EQUALS PV Benefits

Substracted by PV Cost

Analysis and Design Information System – MTI Fasilkom 2008

Determine NPV If NPV >= 0, Project is OK If NPV < 0, Project is unacceptable

Analysis and Design Information System – MTI Fasilkom 2008

Assess Financial Viability – Return on Investment ROI =

NPV PV Total Cost

Analysis and Design Information System – MTI Fasilkom 2008

Assess Financial Viability – Break Even Point

How long before the project’s returns match the amount invested  The longer it takes to break even, the higher the project’s risk. 

Analysis and Design Information System – MTI Fasilkom 2008

Organizational Feasibility: If we build it, will they come? 

There are two ways to assess:  How

well the goal of the project align with business objectives  Strategic

alignment  the fit between the goals of the project and business strategy

 Stakeholder  Project 

analysis

champion(s)

A high-level non-IS executive who is usually but not always the person who created the system request.

 Organizational  System

management

users

Analysis and Design Information System – MTI Fasilkom 2008

Stakeholder Analysis 

Champion 



Organizational Management   



Initiate, promote, allocate his/her time and provide resources to the project Know about the project Budget enough money for the project Encourage users to accept and use the system

System Users   

Make decisions that influence the project Perform hands-on activities for the project Ultimatelty determine whether the project is successful by using or not using the system

Analysis and Design Information System – MTI Fasilkom 2008

Project Selection Issues 

Approval committee works from the system request and the feasibility study 





Project portfolio – how does the project fit within the entire portfolio of projects? Trade-offs must be made to select projects that will form a balanced project portfolio Viable projects may be rejected or deferred because of project portfolio issues.

Analysis and Design Information System – MTI Fasilkom 2008

Project Management

Analysis and Design Information System – MTI Fasilkom 2008

Analysis and Design Information System – MTI Fasilkom 2008

Analysis and Design Information System – MTI Fasilkom 2008

Key Definitions 



Project 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 has the primary responsibility for managing the hundreds of tasks and roles that need to be carefully coordinated.

Analysis and Design Information System – MTI Fasilkom 2008

Key Task 

The science (or art) of project management is in making trade-offs among three important concepts: the size of the system, the time to complete the project, and the cost of the project

Analysis and Design Information System – MTI Fasilkom 2008

Identifying Project Size

Analysis and Design Information System – MTI Fasilkom 2008

Method 1- Estimating a Project Based on Industry Information 

Simplest approach: Take the time spent in the panning phase and use industry standard percentages to calculate estimation for other SDLC phases

Planning Industry Standard For Web Applications Time Required in Person Months

Analysis

15%

4

Design

20%

5.33

9.33

Analysis and Design Information System – MTI Fasilkom 2008

Implementation

35%

8

30%

Method 2- Function Point Approach 3 Step Process to Identify Project Size 

 

Estimate System Size  A function point is a measure of program size that is based on the system’s number and complexity of inputs, outputs, queries, files, and program interfaces Estimate effort required  Person Months Estimate time required  Months to complete

Analysis and Design Information System – MTI Fasilkom 2008

3 Step Process to Identify Project Size

Analysis and Design Information System – MTI Fasilkom 2008

Calculate Function Points Step 1 - Calculate total unadjusted function Points (TUFP):  List major elements of system  Determine total number of each element  Specify complexity index of each component (low, med., high)  Total index multiplied by number of components (TUFP)

Analysis and Design Information System – MTI Fasilkom 2008

Calculate TUPF Example System Components

Analysis and Design Information System – MTI Fasilkom 2008

Calculate Function Points Step 2 – Calculate Total Processing Complexity: Overall complexity > Sum of its parts 0=no effect on processing complexity 3= great effect on processing complexity

Analysis and Design Information System – MTI Fasilkom 2008

Calculate Function Points Step 3- Calculate Adjusted Processing Complexity (APC): 

The processing complexity of the simplest project is defined as 0.65, the normal 1.00, and the most complex one as 1.35

Adjusted Project Complexity (APC) = 0.65 + (0.01 * Project Complexity) = 0.65 + (0.01*7)=0.72

Analysis and Design Information System – MTI Fasilkom 2008

Calculate Function Points Step 4- Calculate Total Adjusted Function Points (TAFP):

Total Adjusted Function Points (TAFP) = Adjusted Project Complexity * TUFP Processing Complexity (PC): __7______ (From Step 2) Adjusted Processing Complexity (PCA) =

0.65 + (0.01 * __7_ )

Total Adjusted Function Points: _0.72 * _338_ = 243 (TUFP -- From Step 1) Analysis and Design Information System – MTI Fasilkom 2008

Converting Function Points to Lines of Code Language

Lines of Codes per Function Point

C COBOL JAVA C++ Turbo Pascal Visual Basic PowerBuilder HTML Packages (e.g., Access, Excel)

130 110 55 50 50 30 15 15 10-40

Source: Capers Jones, Software Productivity Research Analysis and Design Information System – MTI Fasilkom 2008

Converting Function Points to Lines of Code Calculate the lines of codes: Total Lines of Codes = Function points * Lines of code per function point in the chosen language

Example: If you chose C, then 243 function Points times 130 lines of code = 31,590 total lines of code

Analysis and Design Information System – MTI Fasilkom 2008

Estimating Effort 

Definition of Effort: 



Effort is a function of system size combined with production rate (how much work someone can complete in a given time)

Effort estimation algorithm - COCOMO model  

converts a lines-of-code estimate into a person-month estimate For moderate-size projects multiply thousands of lines of code by 1.4 to get the number of people to assign to the project

Analysis and Design Information System – MTI Fasilkom 2008

COCOMO Estimation Calculation Effort (in PersonMonths)

=

1.4 * thousands-oflines-of-code

Example: If Lines of Codes = 10,000 Then... Effort = (1.4 * 10) = 14 Person Months

Analysis and Design Information System – MTI Fasilkom 2008

Estimating Schedule Time 

Rule of thumb for estimation

Schedule Time (months) = 3.0 * person-months1/3

Example: Effort = 14 person-month Schedule time =3.0*141/3=7.2 months Analysis and Design Information System – MTI Fasilkom 2008

CREATING THE WORK PLAN

Analysis and Design Information System – MTI Fasilkom 2008

Developing a WorkPlan Identify tasks in the project  Estimate task length  Determine task dependencies  Specify to whom task will be assigned  List deliverables 

Analysis and Design Information System – MTI Fasilkom 2008

A Workplan Example Work Plan Information

Example

Name of task Start date Completion date Person assigned Deliverable(s) Completion status Priority Resources needed Estimated time Actual time

Perform economic feasibility Jan 05, 2001 Jan 19, 2001 Mary Smith, sponsor Cost-benefit analysis Open High Spreadsheet 16 hours 14.5 hours

`

Analysis and Design Information System – MTI Fasilkom 2008

Identifying Tasks 

Top-down approach  Identify

highest level tasks as phases in the

project  Break them into increasingly smaller units 

Methodology  Using

standard list of tasks  Similar previous projects

Analysis and Design Information System – MTI Fasilkom 2008

Identifying Tasks : Top Down Task Identification Phases with high level steps

Phases

Work Plan

Deliverables

Estimated duration

* * * *

Analysis and Design Information System – MTI Fasilkom 2008

Assigned To

Identifying Tasks : Work Breakdown Structure (WBS) Specify high level tasks  Break down each step into smaller tasks and number them in a hierarchical fashion  WBS can be done in two ways 

 SDLC

phase  Product

Analysis and Design Information System – MTI Fasilkom 2008

Work Breakdown Structure

Analysis and Design Information System – MTI Fasilkom 2008

Creating Project Workplan Gantt chart: Based on the work breakdown structure and assign each task to members of the project team, a project workplan can be created and represented by Gantt chart

Analysis and Design Information System – MTI Fasilkom 2008

Creating Project Workplan PERT Charts:  









PERT= Project Evaluation and Review Technique (PERT) Another graphical way to look at the project workplan information. PERT charts lays out the project tasks in a flowchart Best way to communicate task dependencies and to identify the critical phase PERT uses three time estimates:  Optimistic, O  Most likely, M  Pessimistic, P PERT Time Estimate = (O + 4 * M + P)/6

Issue: The Critical Path ?

Analysis and Design Information System – MTI Fasilkom 2008

Example of PERT Chart

X: Complete \: in progress Analysis and Design Information System – MTI Fasilkom 2008

STAFFING THE PROJECT

Analysis and Design Information System – MTI Fasilkom 2008

Staffing plan  

The staffing plan describes the kinds of people working on the project Tasks of the staffing the project:  Determine the right number of people for the project  Choose the right people with the right skills (i.e., matching people’s skills with the needs of the project)  Motivating the team to meet the project’s objectives  Minimising the conflict among the member

Analysis and Design Information System – MTI Fasilkom 2008

Staffing plan 



 

Based on the schedule project time, the total effort (in person-months) divided by the schedule time will lead to the number of staff needed for the project. For example, 40 person-month project in 10 months, the total full time number of staff is 40/10=4 Assigning the right people with the right skills based on the tasks identified Adding staff may add more overhead than additional labor Using teams of 8-10 reporting in a hierarchical structure can reduce complexity

Analysis and Design Information System – MTI Fasilkom 2008

Staffing Plan: Increasing Complexity with Larger Teams

Analysis and Design Information System – MTI Fasilkom 2008

Staffing Plan: Possible Reporting Structure

Analysis and Design Information System – MTI Fasilkom 2008

Motivation  

Use monetary rewards cautiously Use intrinsic rewards      

Recognition Achievement The work itself Responsibility Advancement Chance to learn new skills

Analysis and Design Information System – MTI Fasilkom 2008

Conflict Avoidance Strategies     

Clearly define roles and project plans Hold individuals accountable Project charter listing norms and groundrules Develop schedule commitments ahead of time Forecast other priorities and their possible impact on the project

Analysis and Design Information System – MTI Fasilkom 2008

Summary We have discussed the project initiation  We have discussed the project management  Next week, we will discuss about the Unified Process  Tugas 1: Buatlah laporan 1 (stakeholder requests) due date: 24 September 2008. 

Analysis and Design Information System – MTI Fasilkom 2008