SCSD2613

System Analysis and Design

PART II
Project Planning Process
Kanar Tahir Hama-Salih

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update: August 2019 (sharinhh)
OBJECTIVES
• Understand how projects are initiated and selected.
• Define a business problem and determine the
feasibility of a proposed project.
• Plan a project by identifying activities and scheduling
them.
• Manage team members and analysis and design
activities so the project objectives are met while the
project remains on schedule.
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PROJECT MANAGEMENT OVERVIEW
•Typical IS Project Problem
PROJECT INITIATION •Problem definition steps
•Project selection

DETERMINING
•Cost Benefit Analysis (CBA)
PROJECT FEASIBILITY
MANAGING TIMES
•Work Breakdown Structure (WBS)
AND ACTIVITIES
•Gantt chart
PROJECT SCHEDULING •Pert Diagram

MANAGING THE •Project charter

PROJECT TEAM •Avoiding project failure

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PROJECT MANAGEMENT OVERVIEW

PROJECT •Typical IS Project Problem

•Problem definition steps
INITIATION •Project selection

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HOW DOES A PROJECT BEGINS?
PROBLEMS • Problems that lend
in the themselves to systems
organization solutions

• Caused through
OPPORTUNITIES
for improvement upgrading, altering, or
installing new systems
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PROJECT INITIATION

Figure 3.1 Checking output, observing employee behavior, and listening to feedback
are all ways to help the analyst pinpoint systems problems and opportunities
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TYPICAL INFORMATION SYSTEMS
PROBLEM
to decision making.
Relevancy
comprising completeness, correctness and security
Accuracy
to decision making needs.
Timeless
resources or cost
Economy
expressed as amount produced per economic unit
Efficiency
measuring the consistency
Reliability
the human factors dimension
Usability
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PROBLEM DEFINITION STEPS

Find a number Determine the

of points that relative Identify which
State the
may be importance of objectives are
objective.
included in the issues or most critical.
one issue. objectives.

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PROBLEM DEFINITION - Content

PROBLEM ISSUES OBJECTIVES REQUIREMENTS CONSTRAINTS

STATEMENT (CURRENT (desired • The things that
• The
SITUATION) situation) must be
• A paragraph accomplished (with limitation –
or two • Major • Goals that the possible budget, time
solutions and the
stating the independent match the constraints) etc.
problem or pieces of the issues point- • May include
security, usability,
opportunity. problem or by-point. government req. etc
opportunity.

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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.

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PROJECT MANAGEMENT OVERVIEW

DETERMINING
PROJECT •Cost Benefit Analysis (CBA)
FEASIBILITY

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DETERMINING FEASIBILITY
•Determine whether the selected projects are
feasible.
•Determining resources
•a FEASIBILITY STUDY assesses the
OPERATIONAL, TECHNICAL, and ECONOMIC
merits of the proposed project.

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DETERMINING FEASIBILITY

Figure 3.5 The three key elements of feasibility include technical, economic, and operational feasibility

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 DETERMINING FEASIBILITY
Operational feasibility Technical feasibility Economic feasibility

• determines if the human • assesses whether the • determines whether the

resources are available to current technical time and money are
operate the system once resources are sufficient available to develop the
it has been installed. for the new system. system.
• Users that do not want a • If they are not available, • Perform cost-benefit
new system may prevent can they be upgraded to analysis (CBA).
it from becoming provide the level of • Includes the purchase of
operationally feasible. technology necessary for • New equipment
the new system.
• Hardware
• Software

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IDENTIFYING BENEFITS AND COSTS
TANGIBLE BENEFITS INTANGIBLE
•advantages that are
BENEFITS
measurable and accrue to the •benefits that accrue to an
organisation through the use of organisation from the use of
IS. an IS are difficult to measure
•Can be measured in terms of but are important nonetheless.
dollars, resources or time saved •Improving the decision-making
•Increase sales, increase speed process, maintaining a good
of processing business image, more
competitive in customer
service

TANGIBLE COSTS INTANGIBLE

•can accurately projected by COSTS
the personnel, well
established or can be •difficult to estimate and may
discover quite easily not be known.
•Equipments, cost of •Losing a competitive edge,
resources, employee salaries losing the reputation,
etc declining company image.

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COST-BENEFIT ANALYSIS (CBA)
▪The analysis to compare costs and benefits to see whether
investing in the development of a new system will be
beneficial.
▪ Break-even analysis, payback, cash-flow analysis, present value
analysis.
▪Two main costs:
▪ Development costs – one-time costs of installing new system
and
▪ Production costs – recur during operation of a system
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COMPARING COST AND BENEFIT
• Well-known techniques: Break-even analysis, Cash-flow
analysis, Payback, Present value analysis
• Guidelines for analysis:
Techniques Use if/when
Break-even analysis the project needs to be justified in terms of cost
Cash-flow analysis the project is expensive relative to the size of the
company
Payback the improved tangible benefits form a convincing
arguments for the proposed system
Present value analysis The payback period is long
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CBA: PRESENT VALUE ANAYSIS (PVA)
▪ Present value is calculated using n
the formula. PV = Payment X (1/(1+C) )

C = discount rate or cost of money.

▪ A way to assess all the economic n = number of periods projected.
outlays and revenues of the IS over
e.g.:
its economic life and to compare Yearly payment value: RM28 840
Discount rate: 10%
costs/benefits today with future Number of repayment year: 3 years
costs/benefits. PV = Payment X (1/(1+C) n )
= RM28 840 X (1/(1+ 0.10) 3)
= RM21 668

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CBA: Present Value Analysis (PVA) sample
Estimated Cost Estimated Benefits
Hardware RM50 000 Inventory RM 1 500 per
Software RM 7 500 Savings week

Consultant RM 20 000
Assumptions
Training RM 20 000
Discount rate 10%
Supplies RM 2 400 per
year Sensitivity 1.1
factor(cost)
IS Support RM 18 000 per
year Sensitivity 0.9
factor(benefits)
Maintenance RM 2 500 per
year Annual change in 7%
production costs
Annual change in 5%
benefits

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CBA: Present Value Analysis (PVA) sample
Costs Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Development Costs
▪ Hardware 55 000 50 000*1.1
▪ Software 8 250 (2 640*0.07)+ 2 640
▪ Consultant 22 000
▪ Training 22 000 2 400*1.1
Total 107 250
Production Costs
▪ Supplies 2 640 2 825 3 023 3 235 3 461
▪ IS Support 19 800 21 186 22 669 24 256 25 954
▪ Maintenance 2 750 2 943 3 149 3 369 3 605
Annual Prod. Costs 25 190 26 954 28 841 30 860 33 020

Present Value 22 900 22 276 21 669 21 078 20 503

Accumulated Costs 130 150 152 426 174 095 195 173 215 676

“22 900 = 25 190 X (1/(1+ 0.10)1 )” 152 426 = 130 150 + 22 276
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 CBA: Present Value Analysis (PVA) sample
(70 200*0.05)+ 70 200
1500*52*0.9

Benefits Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Inventory saving 70 200 73 710 77 396 81 266 85 329

63 818 60 917 58 149 55 506 52 983

Present Value
Accumulated 63 818 124 735 182 884 238 390 291 373
benefits
Gain or Loss (66 332) (27 691) 8789 43 217 75 697

Profitability Index 0.71

𝐺𝑎𝑖𝑛 𝑜𝑟 𝐿𝑜𝑠𝑠
“0.71 = 75 697 / 107 250” 𝑃𝑟𝑜𝑓𝑖𝑡𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝐼𝑛𝑑𝑒𝑥 𝑃𝐼 =
𝐷𝑒𝑣𝑒𝑙𝑜𝑝𝑚𝑒𝑛𝑡 𝑐𝑜𝑠𝑡

Profitability index = 0.71, showing that it is not good investment because of its index is
less than 1.
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LET’S TRY
Checkpoint 1:

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PROJECT MANAGEMENT OVERVIEW

MANAGING
TIMES AND •Work Breakdown Structure (WBS)
ACTIVITIES

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PROJECT PLANNING AND CONTROL
▪Planning includes:
▪Selecting a systems analysis team, assign members.
▪Estimating time required to complete each task.
▪Scheduling the project.

▪Control means using feedback to monitor project,

including:
▪Comparing the plan for the project with its actual evolution.
▪Taking appropriate action to expedite or reschedule activities.
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MANAGING TIME AND ACTIVITIES
PHASES
• For completing projects on time, within
budget and including the features promised, a
project needs to be broken down into smaller
TASK/ACTIVITIES tasks or activities – work breakdown structure
(WBS)
• WBS can be product-oriented or process-
STEPS
oriented
• Time is estimated for each task or activity.
smaller units

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MANAGING TIME AND ACTIVITIES
PRODUCT-ORIENTED WBS

https://www.adroitprojectconsultants.com/tag/process-oriented-wbs/
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MANAGING TIME AND ACTIVITIES
PROCESS-ORIENTED WBS

https://www.adroitprojectconsultants.com/tag/process-oriented-wbs/
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MANAGING TIME AND ACTIVITIES

Figure 3.16 Beginning to plan a project by breaking it into major activities

*Do Phase 1 (Planning) first before analysis phase

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MANAGING TIME AND ACTIVITIES

Figure 3.17 Refining the planning and scheduling of analysis activities by adding detailed
tasks and establishing the time required to complete the tasks
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PROJECT MANAGEMENT OVERVIEW

PROJECT •Gantt chart

SCHEDULING •Pert Diagram

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 PROJECT SCHEDULING TOOLS –
GANTT CHART
▪ Chart in which bars represent tasks or
activities
▪ Advantages:
▪ Simple.
▪ Worthwhile communication with end
user.
▪ Representing activities/tasks are drawn
to scale. Kendall & Kendall
Figure 3.18 Using a two-dimensional Gantt chart for planning activities that can be
accomplished in parallel

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GANTT CHART EXAMPLE

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 PROJECT SCHEDULING TOOLS –
PERT DIAGRAM
▪ Also known as NETWORK DIAGRAM
▪ Useful when activities can be done in parallel
rather than sequence.
▪ Represented by a network of nodes and
arrows
▪ Nodes A,3 - means Activity A has a duration of 3 days/weeks/months

▪ called event, identified by numbers, letters etc

▪ To recognize that an activity is completed
▪ Indicate which activities need to be completed before new
activities maybe undertaken (precedence)
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PERT DIAGRAM
▪Advantages:
▪Easy identification of the order of precedence.
▪Easy identification of the critical path and thus critical
activities.
▪Easy determination of slack time.
▪Occasionally, PERT Diagram need pseudo-activities,
referred to as dummy activities
▪It is used to preserve the logic or clarify the diagram.
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PERT DIAGRAM – Dummy line
Dummy line is used to show logical
sequence of the activity.
Example:

Project 1 – C can only be started if both A &

B are finished

Project 2 – C only requires B’s completion

& could be under way while A is still taking
plac
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PERT DIAGRAM – Example
1. Listing activity to be used in pert diagram before drawing it

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PERT DIAGRAM – Example
2. Draw the diagram

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 PROJECT SCHEDULING: CRITICAL
PATH METHOD (CPM)
• CPM is a project network analysis technique used to predict
total project duration.
• The critical path is the longest path through the network
diagram and has the least amount of slack or float.
• A critical path for a project is the series of activities that
determines the earliest time by which the project can be
completed.
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FINDING THE CRITICAL PATH
1. First develop a good project PERT diagram.
2. Add the durations for all activities on each path through the
project network diagram.
3. The longest path is the critical path.

Note: If one or more activities on the critical path takes longer than planned,
the whole project schedule will slip unless corrective action is taken.
• There can be more than one critical path if the lengths of two or more paths are the
same.
• The critical path can change as the project progresses.
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CRITICAL PATH METHOD (CPM)
Determining the Critical Path for Project X:

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CPM Example
C=2 4 E=1
A=2 B=5
start 1 2 3 6 finish

D=7 5 F=2

Consider the following project network diagram. Assume all times are in
days:
a) How many paths are on this network diagram?
b) How long is each path?
c) Which is the critical path?
d) What is the shortest amount of time needed to complete this project?
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LET’S TRY
Checkpoint 2: Pert Chart & CPM

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GANTT CHART vs PERT DIAGRAM

Figure 3.19: A Gantt Chart compared with PERT Diagram for scheduling activities

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CONTROLLING CHANGES TO THE
PROJECT SCHEDULE
• Perform reality checks on schedules.
• Allow for contingencies.
• Don’t plan for everyone to work at 100% capacity all the
time.
• Hold progress meetings with stakeholders and be clear and
honest in communicating schedule issues.

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CONTROLLING CHANGES TO THE
PROJECT SCHEDULE STAFFING REQUIREMENT
• Choice of software can
influence the amount of effort
that goes into system
TIMEBOXING development.
MANAGING RISKS
• Timeboxing sets an absolute • It is not true that the more
due date for project delivery. people assigned to a task, the • 30 percent of all projects
• The most critical features are faster it will get done. succeed.
developed first and • 20 percent fail.
implemented by the due • 50 percent finish, but are either
date. late, over budget, or offer fewer
• Other features are added features than originally
later.
promised.
THINGS
TO
CONSIDER
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PROJECT MANAGEMENT OVERVIEW

MANAGING
•Project charter
THE PROJECT •Avoiding project failure
TEAM

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MANAGING THE PROJECT TEAM
Assembling a team. Team communication
• Shared value of team work
• Good work ethic
strategies.
• Honesty
• Competency •Teams often have two leaders – (1) one who
• Readiness to take on leadership based on expertise leads members to accomplish tasks AND (2) one
• Motivation that concerned with social relationships.
• Enthusiasm for the project •The systems analyst must manage the team
• Trust of teammates members, their activities, and their time and
resources.
TEAM
MANAGEMENT
Team member motivation.
Project productivity goals.
• Goal-setting helps to motivate team members
• Successful projects require that reasonable
productivity goals for tangible outputs and process
activities be set
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PROJECT CHARTER
▪Describes in a written document what the expected
results of the systems project are and the time frame for
delivery.
▪Written narrative that clarifies several questions such as:
1. What does the user expect of the project?
2. What is the scope?
3. What analysis methods will be used?
4. Who are the key participants?
5. What are the project deliverable?
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AVOIDING PROJECT FAILURES
• Project failures may be
prevented by:
• Training.
• Experience.
• Learning why other projects
have failed.

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SUMMARY
1 PROJECT INITIATION
• Problems or opportunities?

2 DETERMINING PROJECT FEASIBILITY

•Operational, Technical, Economic (CBA)

3 MANAGING TIMES AND ACTIVITIES

• WBS

4 PROJECT SCHEDULING
•Gantt Chart, Pert Diagram, CPM

5 MANAGING THE PROJECT TEAM

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REFERENCES
Kendall, K.E. & Kendall, J.E., 2014. System Analysis and Design. 9th Ed. Essex:Pearson.

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update: August 2019 (sharinhh)

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