Software Project Management and

Information Systems
Unit -1 : Overview of Software Project Planning: Software Project, Categorization of
software Project, Introduction to Stepwise Project Planning, Project Scope,
Infrastructure, Resource Allocation, Project Plan Execution.
Estimation: Software Project Estimation, Decomposition Techniques- Software Sizing,
Problem Based estimation, LOC based estimation, Function Point based estimation,
Process Based estimation, Cost Benefit analysis, Cost Estimation Models, Selection of
Technologies.

Unit-2 : Project Scheduling: Basic Concepts, Project Scheduling- Basic Principles,

Relationship between People and Effort, Task Network, Scheduling, Gantt and PERT
charts, Staffing, Project monitoring and control.
Software configuration management: Concepts and definitions, Need and importance
of SCM, Benefits of SCM, The SCM Process, Plan preparation with case study,
Infrastructure setup, Team Training, System Operation, System Maintenance, System
Retirement. Configuration Baselines, Interface Control, Metrics change control –
Submitting Change Request, Request Analysis, Request Disapproval and Request
Approval Configuration Control Tool.

Unit-3 Information and information systems: Concept of Information system,

Components of information system,Transaction Processing System (TPS) - Office
Automation System (OAS), Management Information System (MIS) - Decision Support
System (DSS) and Group Decision Support System (GDSS)-Expert System(ES)
Unit 4 : Concepts of Planning & Control: Concept of
organizational planning, The Planning Process, Computational
support for planning, Characteristics of control process, The
nature of control in an organization. Information System
Planning: Information System Development, Analysis,
Design, Testing, Evaluation & Implementation.

Unit 5 : Manufacturing and Service Systems, Information

systems for Accounting, Finance, Production and
Manufacturing, Marketing and HRM functions - IS in
hospital, hotel, bank ,Enterprise Resources Planning (ERP):
Features, selection criteria, merits, issues and challenges in
Implementation, ERP related Technologies:Supply Chain
Management (SCM): Features, Modules in SCM, Customer
 Enterprise Resource Planning -ERP

4
 What is ERP?
The practice of consolidating an enterprise’s
planning, manufacturing, sales and marketing
efforts into one management system.
Combines all databases across departments
into a single database that can be accessed by
all employees.
ERP automates the tasks involved in
performing a business process.
5
It is an important enterprise application that integrates all
the individual department functions into a single software
application.
It provides integrated database and custom-designed report
systems.
ERP Systems make it easier to track the workflow across
various departments. They reduce the operational costs
involved in manually tracking and (perhaps) duplicating
data using individual & disparate systems.
 There are various modules in an ERP system like
Finance/Accounts, Human Resource Management,
Manufacturing, Marketing/Sales, Supply
Chain/Warehouse Management, CRM, Project
Management, etc.

Since ERP is a modular software system, its possible

to implement either a few modules

7
 ERP systems are more secure as centralized security
policies can be applied to them. All the transactions
happening via the ERP systems can be tracked

ERP systems make it easier for order tracking,

inventory tracking, revenue tracking, sales forecasting
and related activities.

8
 Since same (ERP) software is now used across all
departments, individual departments having to buy and
maintain their own software systems is no longer
necessary.

Since ERP is a modular software system, its possible

to implement either a few modules (or) many modules
based on the requirements of an organization.

9
 •Since a Database system is implemented on the backend to store
all the information required by the ERP system, it
enables centralized storage/back-up of all enterprise data.

10
 Disadvantages of ERP (Enterprise Resource Planning) Systems:

•The cost of ERP Software, planning, customization,

configuration, testing, implementation, etc. is too high.

•ERP deployments are highly time-consuming – projects may

take 1-3 years (or more) to get completed and fully functional.

•Too little customization may not integrate the ERP system with

the business process & too much customization may slow down
the project and make it difficult to upgrade.

11
•The participation of users is very important for successful
implementation of ERP projects – hence, exhaustive user training
and simple user interface might be critical. But ERP systems are
generally difficult to learn (and use).
•There maybe additional indirect costs due to ERP
implementation – like new IT infrastructure, upgrading the WAN
links, etc.
•Migration of existing data to the new ERP systems is difficult
(or impossible) to achieve.  Integrating ERP systems with other
stand alone software systems is equally difficult (if possible).
These activities may consume a lot of time, money & resources, if
attempted.

12
•ERP implementations are difficult to achieve in decentralized
organizations with disparate business processes and systems.

•Once an ERP systems is implemented it becomes a single vendor lock-in for

further upgrades, customizations etc. Companies are at the discretion of a
single vendor and may not be able to negotiate effectively for their services.

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 Evolution of ERP

14
 How Do ERP Systems Work?
Managers and
Stakeholders
Financial
Reporting Applications
Human
Sales and
Resource Applications
Delivery
Management
Applications
Applications
Sales Force Central
Manufacturing Back-office
Customers And Customer Database
Service Reps Applications Administrators Suppliers
And Workers

Service Human
Applications Resource Inventory
Management And Supply
Applications Applications

Employees

15
Source: Davenport, Thomas, “Putting the Enterprise into the Enterprise System”, Harvard Business Review, July-Aug. 1998.
 ERP Components
 Finance: modules for bookeeping
 Manufacturing and Logistics:
and making sure the bills are paid
on time. Examples: A group of applications for
General ledger planning production, taking
Accounts receivable orders and delivering products to
Accounts payable the customer. Examples:
 HR: software for handling Production planning
personnel-related tasks for Materials management
corporate managers and individual Order entry and processing
employees. Examples:
HR administration Warehouse management
Payroll
Self-service HR

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ERP Supported Functions

Financial Hum Res Ops & Log Sales & M

Accts receivable Time accounting Inventory Orders
Asset account Payroll MRP Pricing
Cash forecast Personnel plan Plant Mtce Sales Mgt
Cost accounting Travel expense Prod planning Sales plan
Exec Info Sys Project Mgmt
Financial consol Purchasing
General ledger Quality Mgmt
Profit analysis Shipping
Standard costing Vendor eval
 An ERP Example: Before ERP

Orders
Parts
Sends report Customer
Demographic
Sales Dept. Files Customers

Checks for Parts

Calls back “Not in stock”
Accounting “We ordered the parts”
Files

Accounting
Invoices Sends report
Sends report accounting
Ships parts
Vendor
Warehouse
Order is placed
“We Need parts #XX”
with Vendor
Inventory
Purchasing Files
Files “We ordered the parts”
Purchasing
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 An ERP Example: After ERP

Orders
Parts Inventory Data
If no parts,
order is placed
Customers Sales Dept. through DB Accounting

Financial Data exchange;

Books invoice against PO

Order is submitted
to Purchasing. Database
Purchasing record Books inventory
order in DB against PO

Order is placed
with Vendor

Warehouse
Vendor Purchasing

Ships parts
19 And invoices accounting
 Who are the main ERP
vendors?

Baan
JD Edwards
Oracle
PeopleSoft
SAP

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 ERP Vendors and Industries They Serve

ls
ds

a
g

eut ic
Goo

turi n
Pack um er

ufa c l /
ve
e/

s tria
ic
nse
spac

moti

m ac
a ge

tron
Cons

as
I nd u
De fe

Oi l/G
Ae ro

Aut o

Phar
Ele c

Man
Baan
Baan
J.D. Series& Co.
Edwards
One World, One World
Software
Oracle Corp.
Applications
PeopleSoft, Inc.
PeopleSoft 7.5
SAP
R/3
% Planned Penetration 10-15 5-10 35+ 40+ 35 30 20
Source: Benchmarking Partners Inc.

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 ERP Market

Total Revenues, 2000

Other SAP
36% 32%

Geac Computer
3%

Oracle
J.D. Edwards 15%
5% Peoplesoft Source: AMR Research, 2001
9%

Source: AMR Research, 2001.

22
ERP Products
SAP: largest ERP vendor
modules can be integrated or used alone
new features include SCM, B2B, e-commerce, XML
J.D. Edwards
flexibility: users can change features; less of a pre-set
structure than SAP’s
modularity: accept modules (bolt-ons) from other vendors

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ERP Products
Oracle
tailored to e-business focus
Internet based vs. client-server based applications
PeopleSoft
open, modular architecture allows rapid integration with
existing systems
Baan
use of “best-of-class” applications

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 Why ERP?
3 Major Reasons:
To integrate financial data.

To standardize manufacturing

processes.
To standardize HR information.

25Source: http://www.cio.com/summaries/enterprise/erp/index.html, viewed September 19, 2002.

 ERP Project and Time
Real transformational ERP efforts will usually run
between 1 to 3 years, on average.
Short implementations (3 to 6 months):
small companies,
implementation limited to a small area of the company, or
the company only used the financial pieces of the ERP system.
The important thing is not to focus on how long it will
take but to understand why you need ERP and how
you will use it to improve your business.

26Source: http://www.cio.com/summaries/enterprise/erp/index.html, viewed September 19, 2002.

 Hidden Costs of ERP
 Training
 Integration and testing
 Data conversion
 Data analysis
 Consultants
 Replacing best and brightest staff after implementation
 Implementation teams can never stop
 Waiting for ROI
 Post-ERP depression

27Source: http://www.cio.com/summaries/enterprise/erp/index.html, viewed September 19, 2002.

 Benefits of ERP Systems

Improving integration, flexibility

Fewer errors
Improved speed and efficiency
More complete access to information
Lower total costs in the complete supply chain
Shorten throughput times
Sustained involvement and commitment of the
top management
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 Benefits of ERP Systems (cont’d)
Reduce stock to a minimum
Enlarge product assortment
Improve product quality
Provide more reliable delivery dates and higher service
to the customer
Efficiently coordinate global demand, supply and
production

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 Risks with ERP Implementation
Expensive (can costs 100 thousands to millions of
dollars)
Time-consuming (can take months to years)
Great risk for the organization
Transfer of Knowledge
Acceptance with the company

30
ERP or Enterprise Resource Planning is an important enterprise application
that integrates all the individual department functions into a single software
application.
ERP Systems make it easier to track the workflow across various departments. They
reduce the operational costs involved in manually tracking and (perhaps)
duplicating data using individual & disparate systems.

Advantages of ERP (Enterprise Resource Planning) System:

1. Complete visibility into all the important processes, across various departments
of an organization (especially for senior management personnel).
2. Automatic and coherent workflow from one department/function to another, to
ensure a smooth transition and quicker completion of processes. This also ensures
that all the inter-departmental activities are properly tracked and none of them is
‘missed out’.
3. A unified and single reporting system to analyze the statistics/status etc. in real-
time, across all functions/departments.
4. Since same (ERP) software is now used across all departments, individual
5. Certain ERP vendors can extend their ERP systems to provide Business
Intelligence functionalities, that can give overall insights on business processes and
identify potential areas of problems/improvements.
6. Advanced e-commerce integration is possible with ERP systems – most of them can
handle web-based order tracking/ processing.
7. There are various modules in an ERP system like Finance/Accounts, Human Resource
Management, Manufacturing, Marketing/Sales, Supply Chain/Warehouse Management,
CRM, Project Management, etc.
8. Since ERP is a modular software system, its possible to implement either a few
modules (or) many modules based on the requirements of an organization. If more
modules implemented, the integration between various departments may be better.
9. Since a Database system is implemented on the backend to store all the information
required by the ERP system, it enables centralized storage/back-up of all enterprise data.
10. ERP systems are more secure as centralized security policies can be applied to them.
All the transactions happening via the ERP systems can be tracked.
11. ERP systems provide better company-wide visibility and hence enable
better/faster collaboration across all the departments.
12. It is possible to integrate other systems (like bar-code reader, for example) to the ERP
system through an API(Application Programing Interface).
13. ERP systems make it easier for order tracking, inventory tracking, revenue tracking,
sales forecasting and related activities.
14. ERP systems are especially helpful for managing globally dispersed enterprise
companies, better.
Disadvantages of ERP (Enterprise Resource Planning) Systems:
1. The cost of ERP Software, planning, customization, configuration, testing,
implementation, etc. is too high.
2. ERP deployments are highly time-consuming – projects may take 1-3 years (or more) to
get completed and fully functional.
3. Too little customization may not integrate the ERP system with the business process &
too much customization may slow down the project and make it difficult to upgrade.
4. The cost savings/payback may not be realized immediately after the ERP
implementation & it is quite difficult to measure the same.
5. The participation of users is very important for successful implementation of ERP
projects – hence, exhaustive user training and simple user interface might be critical. But
ERP systems are generally difficult to learn (and use).
6. There maybe additional indirect costs due to ERP implementation – like new IT
infrastructure, upgrading the WAN links, etc.
7. Migration of existing data to the new ERP systems is difficult (or impossible) to
achieve.  Integrating ERP systems with other stand alone software systems is equally
difficult (if possible). These activities may consume a lot of time, money & resources, if
attempted.
8. ERP implementations are difficult to achieve in decentralized organizations with
disparate business processes and systems.
9. Once an ERP systems is implemented it becomes a single vendor lock-in for further
upgrades, customizations etc. Companies are at the discretion of a single vendor and may
not be able to negotiate effectively for their services.
10. Evaluation prior to implementation of ERP system is critical. If this step is not done
properly and experienced technical/business resources are not available while evaluating,
ERP implementations can (and have) become a failure.
 
 Supply Chain Management

Supply chain management is the management of the flow of goods

and services and includes all processes that transform raw
materials into final products.

Supply chain management (SCM) is the management of the

distribution of goods, data, and money from supplier to consumer.
Supply chain management controls the flow of products and
services between manufacturers and consumers.

By managing the supply chain, companies can cut excess costs and
deliver products to the consumer faster and more efficiently.
The five most critical elements of SCM are developing a strategy,
sourcing raw materials, production, distribution, and returns.
A supply chain manager is tasked with controlling and reducing
costs and avoiding supply shortages.
The network created amongst different companies producing, handling and/or distributing a
specific product is called supply chain.

Specifically, the supply chain encompasses the steps it takes to get a good or service from
the supplier to the customer.

Supply chain management is a crucial process for many companies, and many companies
strive to have the most optimized supply chain because it usually translates to lower costs
for the company.