Systems Analysis and Design with UML Version 2.

0
An Object-Oriented Approach, Second Edition

Chapter 3: Project Initiation

Alan Dennis, Barbara Wixom, and David Tegarden John Wiley & Sons, Inc.
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PROJECT INITIATION
Chapter 3

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Key Ideas

Project initiation begins when someone sees an opportunity to create business value from using information technology. Feasibility analysis is used to aid in the decision of whether or not to proceed with the IS project.
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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.
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IDENTIFYING BUSINESS VALUE

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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 Functionality Expected value Special issues or constraints

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Elements of the System Request Form

Project sponsor

The person who initiates the project

Business Need

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

The business-related reason for initiating the system

Increase sales Improve market share Improve customer service Decrease product defects

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Cont
Functionality

The capabilities that the system will provide

Provide online access Produce management report Capture customer demographic information

Expected Value

The benefits that the system will create for the organization

3 percent increase in sales 1 percent increase in market share

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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.

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An ongoing-case study used to illustrate concepts presented in the text

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Your Turn
If you were building a webbased system for course enrollment -What would be the functionality? What would be the expected value? What special issues or constraints would you foresee?
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FEASIBILITY ANALYSIS

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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

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Technical Feasibility: Can We Build It?

Familiarity with application
Knowledge of business domain

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

Familiarity with technology

Extension of existing firm technologies

Project size
Number of people, time, and features
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Economic Feasibility Should We Build It?

Development costs Annual operational costs Annual benefits Intangible costs and benefit

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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
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Expected Value
Costs Tangible * * * * * * * * * * * * Benefits

Intangible

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Cash Flow Method for Cost Benefit Analysis

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Return on Investment Calculation

RETURN ON INVESTMENT EQUALS
Total (benefits - costs) Divided by

Total costs
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Net Present Value Calculation

PRESENT VALUE EQUALS Some amount of money Divided by (1 + interest rate)n
Where n equals the number of periods
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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 Project champion(s)

Stakeholder analysis

A high-level non-IS executive who created the system request.

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Organizational management System users

Summary
Project initiation involves creating and assessing goals and expectations for a new system Identifying the business value of the new project is a key to success The system request describes an overview of the proposed system. The feasibility study is concerned with insuring that technical, economic, and organizational benefits outweigh costs and risks
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Project Management
Chapter 4

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Refresh
Project initiation involves creating and assessing goals and expectations for a new system Identifying the business value of the new project is a key to success The system request describes an overview of the proposed system. The feasibility study is concerned with insuring that technical, economic, and organizational benefits outweigh costs and risks
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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.
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IDENTIFYING PROJECT SIZE

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Estimation Trade-offs
Size(what it does)
Function points Lines of code

Time (when the project will be finished)

Months

Cost
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Trade-offs
In the beginning of the project, the manager needs to estimate the factors. The estimates developed at the start of a project are based on a range of possible value, and gradually become more specific.
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Two Basic Ways to Estimate the Time

The amount of time spent in the planning phase to predict the time required for the entire project.
We take the time spent in the planning phase and use industry standard percentage to calculate estimates for the other SDLC phase From the past experiences

Function Point Approach

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Estimating a Project Based on Industry Information

Planning Industry Standard For Business Applications Analysis Design Implementation

15%

20%

35%

30%

Time Required in Person Months

Actual Estimated 4 5.33

Estimated Estimated 9.33 8

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Function Point Approach

It is more complex and has three steps:

The project manager estimates the size of the project - - the number of lines of code the new system required The size estimate is then converted into the amount of effort required to develop - the number of person-month The estimated effort is then converted into an estimated schedule time - the number of months

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Time Estimation Using a More Complex Approach

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Step 1. Estimate System Size

A function point is a measure of program size based on the systems number and complexity of inputs, outputs, queries, files, and programs interfaces.

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Function Point Estimation -- Step One

Complexity Description Inputs Outputs Queries Files Program Interfaces 19 Low __x 3 4x4 __x 3 __x 7 __x 5 Medium __x 4 10 x 5 __x 4 __x 10 __x 7 High __x 6 5x7 __x 6 __x 15 __x 10 Total ____ ____ ____ ____ ____

TOTAL UNADJUSTED FUNCTION POINTS

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__338__

Function Points Estimation -- Step Two

5
Data Communications Heavy Use Configuration Transaction Rate End-User efficiency Complex Processing Installation Ease Multiple sites Performance Distributed functions On-line data entry On-line update Reusability Operational Ease Extensibility
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Scale of 1 to __3___ __0___ __0___ __0___ __0___ __0___ __0___ __0___ __2___ __2___ __0___ __0___ __0___ __0___ __7___

Project Complexity (PC)

Function Points Estimation

Adjusted Project Complexity = .65 + (0.01 * Project Complexity) Note: .65= very simple system; 1.00 = normal Total Adjusted Function Points =
Adjusted Project Complexity * TUFP

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Function Point Estimation -- Step 3

Processing Complexity (PC): ____7____ (From Step 2) Adjusted Processing Complexity (APC) = 0.65 + (0.01 * __7__ ) = 0.72 Total Adjusted Function Points: __0.72___ * _338___ = 243 (TUFP -- From Step 1)

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Converting Function Points to Lines of Code: Step 4

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

LOC/Function Code Point

130 110 55 50 50 30 15 15 10-40

Source: Capers Jones, Software Productivity Research

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LOC = TAFP * LOC/FCP

Step 2. Estimate Effort

Effort is a function of size and production rate (how much work someone can complete in a given time). COCOMO model
It is used to convert a lines-ofcode estimate to a person-month estimate.
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COCOMO Estimation Calculation

Effort (in PersonMonths)
Example:

1.4 * thousands-oflines-of-code

If LOC = 2000 Then... Effort = (1.4 * 2000) =

28 Person Months

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Step 3. Estimate Time Required

Rule of thumb for estimation
Schedule Time (months)

=
3.0 * person-months1/3

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Average staffing = Effort/Schedule time.

Average Staffing = 37.42 personmonths/10 months = 4 persons.

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CREATING AND MANAGING THE WORKPLAN

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Workplan is a dynamic schedule that records and keeps track of all of the tasks that need to be accomplished over the course of the project. It lists each task, along with important information
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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
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Perform economic feasibility Jan 05, 2001 Jan 19, 2001 Mary Smith, sponsor Cost-benefit analysis Open High Spreadsheet 16 hours 14.5 hours

Identifying Tasks
Methodology
Using standard list of tasks

SDLC Select the steps and deliverables

Consultants or books Top-down approach

Identify highest level tasks Break them into increasingly smaller units Work Breakdown Structure (WBS)

By SDLC or by product

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Top Down Task Identification

Phases

Phases with high level steps

Work Plan * * * *
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Deliverables

Estimated hours

Actual hours

Assigned To

Tools
The Project Plan
It is a table that lists all of tasks in the work breakdown structure along with important task information

Duration of the task, the current status (open or complete), and the task dependencies.

Gantt Chart PERT Chart

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Gantt Chart
Action Week 2 3

10

11

12

13

Go to Library

Go to Bookstore

Select and Purchase Book

Skim Book

Write Phase One

Read Book Carefully

Write Phase Tw o

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Managing Scope
Scope creep -- a major cause of development problems (schedule and cost overruns) It happens when new requirement are added to the project after the original project scope was defined.
JAD and prototyping Formal change approval Charging for changes
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Timeboxing
Another approach to scope management Fixed deadline Reduced functionality, if necessary Fewer finishing touches
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Timeboxing Steps
1. Set delivery date Deadline should not be impossible Should be set by development group 2. Prioritize features by importance 3. Build the system core 4. Postpone unfinished functionality 5. Deliver the system with core functionality 6. Repeat steps 3-5 to add refinements and enhancement
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STAFFING THE PROJECT

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Staffing The Project

Determining how many people should be assigned Matching peoples skills with the needs Motivating them to meet the objective Minimizing the conflict.
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Key Definitions
The staffing plan describes the kinds of people working on the project The project charter describes the projects objectives and rules A functional lead manages a group of analysts A technical lead oversees progress of programmers and technical staff members
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Staffing Attributes
Staffing levels will change over a projects lifetime Adding staff may add more overhead than additional labor Keep team size of 8-10 reporting in a hierarchical structure can reduce complexity
If more people are needed, create subteams. In this way, the project manager can keep the communication effective
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Increasing Complexity with Larger Teams

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Motivation
Assigning people isnt enough, the project managers need to motivate the people Use monetary rewards cautiously Use intrinsic rewards
Recognition Achievement The work itself Responsibility Advancement Chance to learn new skills

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CONTROLLING AND DIRECTING THE PROJECT

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CASE Tools
Initiation Analysis Design Implementation

Upper CASE

Lower CASE

Integrated CASE (I-CASE)

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CASE Components
Diagrams Screen Designs

CASE Repository

Procedural Logic

Metadata

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Standards

The team needs to work together, and things can get confusing. Examples
Formal rules for naming files Forms indicating goals reached Programming guidelines

Can you think of more examples?

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Documentation

Project binder Table of contents Continual updating

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Managing Risk
Risk assessment
The process of assessing and addressing the risks that are associated with developing a project.

Actions to reduce risk

Providing training to the team

Revised assessment
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Classic Mistakes

Very optimistic schedule Failing to monitor schedule Failing to update schedule Adding people to a late project

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Summary

Project management is critical to successful development of new systems Project management involves planning, controlling and reporting on time, labor, and costs.
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