Creating the Project Plan

Chapter 3 Managing the Information Systems

Project

A Brief Case Study: Denver International Airport

In 1988, Denver, Colorado embarked on a project to construct a state-of-the-art airport to replace the existing Stapleton Airport. Stapleton was viewed as incapable of expansion because of its location. The newly proposed airport would reduce costs of operation, allow for sufficient growth, and eliminate pollution and air traffic delays. The new airport, named Denver International Airport (DIA) was scheduled to open on October 31, 1993.

In the September 1994 issue of Scientific American, W. Wayt Gibbs chronicled the DIA as an example of a modern software crisis: "Denver's new international airport was to be the pride of the

Rockies, a wonder of modern engineering. Twice the size of Manhattan, 10 times the breadth of Heathrow, the airport is big

enough to land three jets simultaneously in bad weather. Even more impressive than its girth is the airport's subterranean baggage-

handling system. Tearing like intelligent coal-mine cars along 21 miles of steel track, 4,000 independent "telecars" route and deliver luggage between the counters, gates and claim areas of 20 different airlines. A central nervous system of some 100 computers networked to one another and to 5,000 electric eyes, 400 radio receivers and 56 bar-

code scanners orchestrates the safe and timely arrival of every valise and ski bag.

At least that is the plan. For nine months, this Gulliver has been held captive by Lilliputians-errors in the software that controls its automated baggage system. Scheduled for takeoff by last Halloween, the airport's grand opening was postponed until December to allow BAE Automated Systems time to flush the gremlins out of its $193-million system. December yielded to March. March slipped to May. In June the airport's planners, their bond rating demoted to junk and their budget hemorrhaging red ink at the rate of $1.1 million a day in interest and operating costs, conceded that they could not predict when the baggage system would stabilize enough for the airport to open “

Eventually the Denver International Airport (DIA) did open, but the advanced baggage system was only partially functioning. The four delayed openings of the airport caused many residents to speculate that DIA really stood for "Do It Again," "Doesn't Include Airlines," or "Done In April". In order to finally open the terminal, the city invested $51 million to install a conventional baggage system as a work around to the high-tech system. Ironically, the conventional system was completed four weeks ahead of schedule and $3.4 million under budget.

The obvious question is: why was the high-tech system so difficult to implement?

Video from MSNBC

http://www.youtube.com/watch?v=xx8f4x6C_KY

Success Rate for IT Projects

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 604/22/2023Chapter 2

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Importance of Project Management

• Project management may be the most important aspect of systems development.

• Effective PM helps to ensure– The meeting of customer expectations.– The satisfying of budget and time constraints.

• PM skills are difficult and important to learn.

7Chapter 3


Deciding on Systems Projects

• System Service Request (SSR)– A standard form for requesting or proposing

systems development work within an organization• Feasibility study

– A study that determines whether a requested system makes economic and operational sense for an organization

8Chapter 3


Managing the Information Systems Project

• Project– A planned undertaking of related activities to

reach an objective that has a beginning and an end

• Project management– A controlled process of initiating, planning,

executing, and closing down a project

9Chapter 3


Managing the Information Systems Project (cont.)

• Project manager– Systems analyst with management and leadership

skills responsible for leading project initiation, planning, execution, and closedown

• Deliverable– The end product of an SDLC phase

10Chapter 3


Phases of Project Management Process

• Phase 1: Initiation• Phase 2: Planning/Controlling• Phase 3: Execution/Controlling• Phase 4: Closedown

11Chapter 3

Planning and Control• With no plan it is almost impossible to control the project• Controlling involves tracking progress against a plan and modifying the plan

when variances are observed• James Lewis refers to planning and control as the Siamese twins of project

management – codependent upon one another and inseparable

Controlling the Project

Control is exercised by comparing where you are to where you are supposed to be so that corrective action can be taken when there is a deviation. From J. P. Lewis, Fundamentals of Project Planning

Planning Asks …

• What must be done?• How will it be done?• Who will do it?• How long will it take?• How much will it cost?

Strategies for Effective Planning• Plan for planning

– Good plans aren’t developed on an ad hoc basis– Planning sessions should be carefully planned

• The persons who will work the plan should participate in its development

• Expect to change the plan– Conditions change– New information is discovered

• Risk management should be included• Understanding the purpose of the planning

– Accurate and clear problem statement– SMART objectives – How are the objectives to be achieved?

Components of a Project Plan• Problem statement• Mission statement• Project objectives• Project deliverables• Acceptance criteria• Communication plan• Work breakdown structure• Schedule• Budget• Resource requirements• Change and control system• Risk assessment plan

From the Project Charter

SMART objectives

Creating the Project Plan

The Plan versus a Schedule

• The plan– Defines the activities– Documents the interaction between activities– Estimates the duration for completing each activity– Analyzes the sequences, duration and resource

requirements to crate a project schedule• The schedule

– Determine start and finish dates for project activities– Often must be iterated(along with processes that are the

input) especially the duration estimating

Project Planning Techniques• Provide regular status updates to stakeholders• Include team members in planning sessions and plan preparation• Provide various alternatives to management

– Scope constrained alternatives– Time constrained alternatives– Resources alternatives

• Plan to plan• Obtain plan approval before beginning execution

Work Products for Planning

Task List

Work BreakdownStructure

PrecedenceGraph

CPM Diagram

Gantt Chart

Project Objectives

Getting the Planning Process Started

Task List


Project Objectives

• Planning depends on estimates of the work required and the way it will be organized.

• The planning process is driven by the project objectives

Product ListOptional: for a product-oriented project, it may be useful to begin with a product list

From Task List to WBS

Task List

Task ATask BTask CTask DTask ETask F

WBS

Overall Task

SubTask 1 SubTask 2 Task B

Task C Task A

Task E Task D

SubTask 2.1 Task F

Generic Tree Structure

1.0 Deliverable

1.2 Work PackagePackage 2



2.0 Deliverable




1.2.2 Activity 2

1.2.3 Activity 3

1.2.1 Activity 1

1.2.2.3Task 3

1.2.2.1Task 1

1.2.2.2 Task 2

PROJ ECT XYZ

2.2.2 Activity 2

2.2.3 Activity 3

2.2.1 Activity 1

2.2.2.3Task 3

2.2.2.1Task 1

2.2.2.2 Task 2

By Stage

2.0 Kickoff

3.0 Scope

PROJ ECT XYZ

1.0 Initiation

1.1 Project

Documentation

2.1.2 Project

Organization

2.1.3 Project Constraints

2.1.1 Project Purpose

Statement

2.1 Project

Charter Draft

1.1.2 Project Journal

1.1.3 Issue Log

1.1.1 Common Folder on

Share Drive

2.2.2 Areas Involved

2.2.1 Validate Leadership

Roles

2.2 Kickoff

Meeting

3.1.2Objectives & Approaches

3.2 Risk

Management Plan

3.1.1 High-level Project

Schedule

3.1 Project Scope

Document

3.2.1 Risk Matrix

3.2.2 Residual & Secondary Risks

3.3 Context Diagram

Project Management Deliverables

Outline1. Initiation

1.1 Project Documentation1.1.1 Common Folder on Shared Drive1.1.2 Project Journal1.1.3 Issue Log

2. Kickoff2.1 Project Charter Draft

2.1.1 Project Purpose2.1.2 Project Constraints2.1.3 Project Organization

2.2 Kickoff Meeting2.2.1 Validate Leadership Roles2.2.2 Areas Involved

3. Scope3.1 Project Scope Document

3.1.1 High-level Project Schedule3.1.2 Objectives and Approaches

3.2 Risk Management Plan3.2.1 Risk Matrix3.2.2 Residual & Secondary Risks

3.3 Context Diagram

Ten Step Planning Process

1. Identify your business requirements, objectives, and approaches.

2. Build your WBS3. Brainstorm the tasks required to

create deliverables.4. Sequence your task.5. Look at the relationships &

dependencies.

6. Identify resources for each task.7. Estimate time required for each

task.8. Remember control is primary

consideration.9. Convert the data into a project

schedule.10. Review the project schedule with

the project team.

WBS as an Estimation ToolBottom-Up Estimating

• Effort for smaller tasks can be more accurately estimated than larger ones

• Estimate all the “primitive” tasks first (those at the bottom of the WBS – with no subtasks of their own). PMBOK * calls these work packages.

• Combine these estimates to get an overall estimate or estimates for major subtasks

• Track actuals against estimates at the task level to improve your estimating skills

• Use this data to create a useful experiential estimation database

Project Management Book of Knowledge

Precedence Graph• The precedence graph captures predecessor or

sequencing information for all tasks in the WBS• Used as an intermediate step toward a CPM diagram• The process used to create the precedence graph is

referred to as PDM (Precedence Diagram Method) in the PMBOK.


PrecedenceGraph

Precedence Graph

Activity M

Activity P

Activity N

Activity OActivity Q

Activity R

Activity S

Activity N must complete before Activity R can begin, and so on.

Effort and Duration

• CPM (Critical Path Method) Diagrams are derived from Precedence Graphs

• To accomplish this, we must translate effort estimates into duration estimates

• Effort defines the total required number of time units (often measured in hours) to complete a task

• Duration refers to the calendar time (often in days or weeks) required to complete task

Effort and Duration (cont’d)

• Effort is distributed over a duration• This is done by assigning some particular

number of persons to the task at various times• Or, we can assign percentages of one or more

persons’ time to the task at various times

Effort, Duration, and Resource Allocation

• For example, a 750 hour effort would have a 10-week duration if 2 persons were allocated to it fulltime (assuming a fulltime week = 37.5 hours) for that period

• However, this same effort could result in drastically different durations, with different resource allocations:– 40 weeks – if 50% of a person’s time is allocated to it– 20 weeks -- if 1 person is allocated to it fulltime– 15 weeks -- with1 person fulltime for 10 weeks, then 2

persons fulltime for the next 5 weeks– 5 weeks – with 4 persons allocated to it fulltime

Effort, Duration, and Resource Allocation (cont’d)

It is important to remember that the required effort is just one factor that goes into making a duration estimate.

We’ve all heard it:

If one woman can produce a baby in 9 months, how soon can 9 women produce a baby?

Effort, Duration, and Float (Slack)

• If we allocate resources so that a task is completed before it is absolutely necessary for all the other task(s) waiting for it to complete, we say that we have built float or slack time into our schedule

• Float adds flexibility to a project’s schedule and hence it is important to recognize when it is possible

• The Critical Path Method (CPM) Diagram captures this feature of a project

CPM Diagrams

“The Critical Path Method (CPM) is a network analysis technique used to predict project duration by analyzing which sequence of activities (which path) has the least amount of scheduling flexibility (the least amount of float). Early dates are calculated by means of a forward pass, using the specified start date. Late dates are calculated using a backward pass, starting from a specified completion date – usually the forward pass calculated project early finish date.”

According to the PMBOK: PMBOK View

Adding More Information to the Precedence Graph – CPM Diagrams

Task

EarliestStart

EarliestFinish

Duration Float

LatestStart

LatestFinish

Add this information for each node in the Precedence Graph

PrecedenceGraph

CPM Diagram

Terms for CPM Diagrams

• D = Estimated Duration • ES = Early Start Date

ES = Earliest finish time for all preceding events • EF =Early Finish Date

EF = ES + D • LF =Late Finish Date

LF = Latest start time of all succeeding events• LS =Late Start Date

LS = LF - D • F = Float

F = LF - EF OR F = LS - ES • F = The time an activity’s start or finish can be delayed without

delaying project completion

For each node:

Computing Terms for CPM Diagram Nodes

• D is an estimate (must be known)• Determine ES = Early Start

ES = Earliest finish time for all preceding events • Determine LF =Late Finish

LF = Latest start time of all succeeding events• Then we compute LS, EF, and F

CPM Diagram Nodes -- Example

Task

4 weeks 7 weeks

3 weeks 2 weeks

6 weeks 9 weeks

Add this type of information for each node

duration float (= 9 – 7 or = 6 – 4)

early start(determined byearliest finish for all preceding activities)

late start(= 9 – 3)

early finish (= 4 + 3)

late finish (determinedby the latest start forall succeeding activities)

1

2

3

Method for Computing CPM Diagrams

• All activities must be assigned durations before you begin• Start with the activities that have no preceding activities and assign

their early start times to be 0 (there may be only one of these)• Work from left to right and compute the early start and early finish

times for all nodes – this is called the forward pass• The largest early finish time will determine the minimum time for the

project to complete• All activities with no succeeding activities will get this value as their

latest finish times (there may be only one of these). Assign each of these activities to have 0 float

• Use this information to work from right to left assigning late finish times and late start times for all nodes – this is called the backward pass

• Now you can quickly compute float for all nodes

Team Activity 1: CPM Diagram

Consider the CPM Diagram (partial) given on the next slideComplete the diagram by determining the missing information for each node.

CPM Diagram – Partial Example

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4404/22/2023Chapter 2

Critical Paths

• If an activity that has 0 float slips, the entire project will slip by that amount

• This is why activities that have 0 float are said to be on a critical path

• There may be multiple critical paths for a project

• Many practitioners establish some threshold amount of float (suitably small) and compute near-critical paths as well

Critical Paths (cont’d)

• Note that critical (and near-critical) paths are dynamic and change as the actual (as opposed to estimated) schedule unfolds

• Critical (and near-critical) paths must be recomputed each time there is an activity slippage anywhere in the schedule that is larger than that activity’s float

Why Compute Critical Paths?

• Can be used to focus resources and attention more efficiently and effectively

• Best resources can be assigned to critical path activities• Allows project manager to monitor crucial activities

more closely• Helps prioritize risks, so risk mitigation activities can be

focused on the most important potential risk events• “Near-critical” tasks can also be identified and tracked

Why Compute Critical Paths? (cont’d)

• Schedule “emergencies” can be addressed by “crashing” or fast-tracking critical path activities

• Crashing means compressing activity duration• Fast-tracking means doing things in parallel• Danger in crashing or fast-tracking is

increased risk

Team Activity 2: Critical Paths

1) What is the shortest possible duration for the project?2) Identify the critical path (or paths).Consider questions 3 and 4 independently of each other.3) If Procurement slips 3 weeks, what is the impact on the project

duration? What happens to the critical path4) If Beta Test slips 2 weeks (with no other slippage), what is the impact

on the project duration?

Consider the CPM Diagram you completed in the previous activity.

Team Activity #3• A project has been defined to contain the following list of activities along with

their required times for completion1. Draw a CPM diagram for the activities2. Calculate the earliest completion time3. Show the critical path4. What would happen if activity 6 were revised to take 6 weeks instead of

1 weekActivity Immediate activity Weeks Predecessors

1 Collect requirements 2 -

2 Analyze processes 3 1

3 Analyze data 3 2

4 Design processes 7 2

5 Design data 6 2

6 Design screens 1 3, 4

7 Design reports 5 4, 5

8 Program 4 6. 7

9 Test and document 8 7

10 Install 2 8 , 9

Team Activity #4

• Look at the activities outlined in Team Activity 3 (see below). Assume that your team is in its first week of the project and has discovered that each of the activity duration estimates is wrong. Activity 2 will take only 2 weeks to complete . Activity 4 and 7 will each take three times longer than anticipated. All other activities will take twice as long to complete. In addition a new activity, number 11- Feedback, has been added. It will take 1 week to complete and its immediate predecessors are activities 10 and 9.

1. Adjust the CPM diagram and 2. Recalculate the earliest expected completion time

Gantt Charts• Created from CPM diagrams• Capture scheduling information in a bar chart

format• Dynamic Gantt charts (that is, those that are

updated frequently) are an excellent tool to ascertain the status of a project at a given time

• Good tool for estimating resource needs in a given time frame

CPM Diagram

Gantt Chart

Gantt Charts – An Example

tasks

T1

T2

T3

T4

T5

date (week #)1 2 3 4 5 6 7 8

critical path

float


Scheduling Diagrams Gantt Chart

Special-purpose project management software is available for this.

54Chapter 3

FIGURE 3-10Gantt chart showing project tasks, duration times for those tasks, and predecessors

Team Activity #5: Gantt Chart

1) Create a Gantt chart from your CPM Diagram. 2) What kind of resources do you anticipate needing in week 6?3) Can you tell how many resources you will need of each

type/category? Hint: Are duration and effort the same?

Construct a Gantt chart for your CPM diagram created in Activity 3


Scheduling Diagrams Gantt Chart

Special-purpose project management software is available for this.

56Chapter 3

FIGURE 3-10Gantt chart showing project tasks, duration times for those tasks, and predecessors


Scheduling Diagrams Network Diagram

Special-purpose project management software is available for this.57Chapter 3

FIGURE 3-13A network diagram illustrating tasks with rectangles (or ovals) and the relationships and sequences of those activities with arrows


Preliminary Budget

Spreadsheet software is good for this.

58Chapter 3

FIGURE 3-15A financial cost and benefit analysis for a systems development project

More on this later


PM Phase 3: Project Execution

• Plans created in prior phases are put into action.

• Actions– Execute baseline project plan– Monitor progress against baseline plan– Manage changes in baseline plan– Maintain project workbook– Communicate project status

59Chapter 3


Monitoring Progress with a Gantt Chart

Red bars indicate critical path; lines through bars indicate percent complete.

60Chapter 3

FIGURE 3-17Gantt chart with tasks 3 and 7 completed


Using Project Management Software

• Many powerful software tools exist for assisting with project management.

• Example: Microsoft Project can help with– Entering project start date.– Establishing tasks and task dependencies.– Viewing project information as Gantt or Network

diagrams.

61Chapter 3


Project Start Date

62Chapter 3

FIGURE 3-28Establishing a project starting date in Microsoft Project for Windows


Entering Tasks

63Chapter 3

FIGURE 3-29Entering tasks and assigning task relationships in Microsoft projectfor Windows


Viewing Network Diagram

Hexagon shape indicates a milestone.

Red boxes and arrows indicate critical path (no slack).

64Chapter 3

FIGURE 3-30Viewing project information as a network diagram in Microsoft Project for Windows


Viewing Gantt Chart

Black line at top indicates a summary activity (composed of subtasks).Diamond shape indicates a milestone.

65Chapter 3

FIGURE 3-31Gantt chart showing progress of activities (right frame) versus planned activities (left frame)


Summary

• In this chapter you learned how to: Explain the process of managing an information systems project. Describe the skills required to be an effective project manager. List and describe the skills and activities of a project manager

during project initiation, project planning, project execution, and project closedown.

Explain what is meant by critical path scheduling and describe the process of creating Gantt charts and network diagrams.

Explain how commercial project management software packages can be used to assist in representing and managing project schedules.

66Chapter 3

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