Managing Systems Projects(Pert Chart)

Managing Systems Projects(Pert Chart) Instructions: read pages 102-126 in the Shelly Cashman. The PDF chapter is titled "Managing Systems Projects," and focuses primarily on task estimation & scheduling (e.g. Gantt and PERT charts, and critical path analysis). You will have to create PERT charts when you take Project Management class, so this serves as a "sneak preview." After reading the chapter, please complete the following exercises at the end of the chapter: page.131 - "Apply Your Knowledge" 1 (Countrywide Construction), parts 1, 2, & 4 only (i.e., no need to make a Gantt chart) pages.133-134 - Personal Trainer, Inc. case study, all 4 parts You may use the diagramming tool of your choice to complete the PERT chart portion of the assignment. The following tools will all work: ? Microsoft Powerpoint (probably the simplest option) ? Flowchart Diagram option in Astah Professional ? Microsoft Visio (may be available on some campus computers) ? Smartdraw (free 7-day trial available online) ? There are numerous other free diagramming tools and PERT chart generators available online. I don’t care which one you use. you should create a single Word document, and then embed both of your diagrams / PERT charts in it. Chapter 3 Managing Systems Projects Chapter 3 is the final chapter in the systems planning phase of the SDLC. In this chapter, you will learn about project management and how to plan, schedule, monitor, and report on IT projects. CHAPTER OBJECTIVES When you finish this chapter, you will be able to: • Explain project planning, scheduling, monitoring, and reporting • Describe work breakdown structures, task patterns, and critical path analysis • Explain techniques for estimating task completion times and costs • Describe various scheduling tools, including Gantt charts and PERT/CPM charts • Analyze task dependencies, durations, start dates, and end dates • Describe project management software and how it can assist you in project planning, estimating, scheduling, monitoring, and reporting • Discuss the importance of project risk management • Understand why projects sometimes fail INTRODUCTION Chapter 3 explains project management for IT projects. You will learn about project planning, scheduling, monitoring, reporting, and the use of project management software. You will learn how to create a work breakdown structure, identify task patterns, and calculate a critical path. You will also learn how to use Gantt charts and PERT/CPM techniques to schedule and monitor projects. Finally, you will learn how to control and manage project changes as they occur. In addition to the project management material in this chapter, you can visit the Features section on your Student Study Tool CD-ROM, where you can learn more about Microsoft Project and Open Workbench, an open-source project management program that you can download and install. You can also visit the MIS CourseMate Web site for this book at www.cengagebrain.com and explore links in the SWL project management resources library. Chapter 3 includes three Video Learning Sessions that show you how to create a work breakdown structure (WBS), how to identify task patterns, and how to calculate a project's critical path. 3 Managing Systems Projects Introduction 101 Phase 1 Systems Planning CHAPTER INTRODUCTION CASE: Mountain View College Bookstore Background: Wendy Lee, manager of college services at Mountain View College, wants a new information system that will improve efficiency and customer service at the three college bookstores. In this part of the case, Tina Allen, systems analyst, and David Conroe, student intern, are talking about project management tools and techniques. Participants: Tina and David Location: Mountain View College Cafeteria, Wednesday afternoon, September 21, 2011 Discussion topics: Project planning, Gantt charts, PERT/CPM charts, Microsoft Project and Open Workbench software, project monitoring, and risk management techniques. Tina: Hi, David. Glad I ran into you. I’d like to talk with you about project management, which we’ll be using as we plan and execute the bookstore information system project. David: Sure. I’ve read a little about project management, but I don’t know the specifics. Tina: Well, we manage business and personal projects every day, but we don’t always give it much thought. To manage large-scale IT projects, you need specific tools and techniques. You also need a project manager, who is responsible for planning, leading, organizing, and controlling all the tasks. David: I guess that’s you? Tina: Sure is. No matter which tools you use, the idea is to break the project down into individual tasks, determine the order in which the tasks need to be performed, and figure out how long each task will take. With this information, you can use Gantt charts or PERT/CPM charts to schedule and manage the work. David: I’ve seen Gantt charts — they’re the ones that look like horizontal bar charts? Tina: Right. In addition to Gantt charts, we’ll use PERT/CPM charts, which look like network diagrams that show all the tasks, patterns, and calculations that we’ll need. We’ll learn how to create PERT/CPM charts manually, and we’ll also experiment with Microsoft Project and Open Workbench, which are powerful project management tools. David: Anything else we need to know? Tina: Yes. After we have a specific plan, we need to monitor it carefully, report the progress, and employ a process called risk management. If you are ready, here’s a task list to get us started: FIGURE 3-1 Typical project management tasks. 102 Overview of Project Management Chapter 3 Managing Systems Projects OVERVIEW OF PROJECT MANAGEMENT Whether you are developing an information system or working on a construction project like the one in Figure 3-2, the process is the same. The only difference is the nature of the project. Project management for IT professionals includes planning, scheduling, monitoring and controlling, and reporting on information system development. What Shapes a Project? A successful project must be completed on time, within budget, and deliver a quality product that satisfies users and meets requirements. Project management techniques can be used throughout the SDLC. System developers can initiate a formal project as early as the preliminary investigation stage, or later on, as analysis, design, and implementation activities occur. As the sign in Figure 3-3 suggests, sometimes you have to decide what is most important. The same concept applies to systems development, where the factors include budget limits, time constraints, and quality standards. As long as everything is in balance, like the see-saw in Figure 3-4, the project will be successful. However, if one factor changes, adjustments must be made. Because the factors interact constantly, a project manager must respond quickly. For example, if an extremely time-critical project starts to slip, the project manager might have to trim some features, seek approval for a budget increase, simplify the testing plan, or a combination of all three actions. Unfortunately, many systems projects do fail. A report by The Standish Group noted that only a third of all software development projects were successful, in the sense that they met budget, schedule, and quality targets. Standish chairman Jim Johnson said that improvement will require better project management tools, more iterative methods, and better communication between project developers and users. FIGURE 3-2 Building construction and systems development projects both need careful management and monitoring. GARAGE TOWING • REPAIRING • OVERHAULING BUSTED KNUCKLE FAST CHEAP GOOD PICK ANY TWO FIGURE 3-3 The sign at this imaginary garage tells an old story, which also applies to project management. Sometimes, if you can’t have all three, you must choose the two you really need. FIGURE 3-4 If one factor changes, adjustments must be made to keep things in balance. Project Success Time Budget Quality Overview of Project Management 103 Phase 1 Systems Planning What Does a Project Manager Do? Whether a project involves a new office building or an information system, good leadership is essential. In a systems project, the project manager, or project leader, usually is a senior systems analyst or an IT department manager if the project is large. An analyst or a programmer/analyst might manage smaller projects. In addition to the project manager, most large projects have a project coordinator. A project coordinator handles administrative responsibilities for the team and negotiates with users who might have conflicting requirements or want changes that would require additional time or expense. Project managers typically perform four activities, or functions: planning, scheduling, monitoring, and reporting. • Project planning includes identifying all project tasks and estimating the completion time and cost of each. • Project scheduling involves the creation of a specific timetable, usually in the form of charts that show tasks, task dependencies, and critical tasks that might delay the project. Scheduling also involves selecting and staffing the project team and assigning specific tasks to team members. Project scheduling uses Gantt charts and PERT/CPM charts, which are explained in the following sections. • Project monitoring requires guiding, supervising, and coordinating the project team’s workload. The project manager must monitor the progress, evaluate the results, and take corrective action when necessary to control the project and stay on target. • Project reporting includes regular progress reports to management, users, and the project team itself. Effective reporting requires strong communication skills and a sense of what others want and need to know about the project. CASE IN POINT 3.1: SPRING FORWARD PRODUCTS After three years with the company, you recently were asked to manage several IT projects. You are confident that you have the technical skills you need, but you are concerned about morale at the company. There has been some downsizing, and many employees are worried about the future. As a longtime fan of the Dilbert cartoon strip, you know that maintaining morale can be a real challenge. Your current project involves a team of a dozen people, several of whom remind you of Dilbert and his coworkers. What are some techniques that you might use to motivate the team and inspire its members? What are some things you might not want to do? Project Activities and Planning Steps On any given day, a project manager might perform one or more of the activities listed above. However, as Figure 3-5 suggests, each activity is part of a larger framework, which includes three key steps in project planning: • Create a work breakdown structure. • Identify task patterns. • Calculate the critical path. The matrix in Figure 3-5 on the next page shows typical activities that the project leader performs as the project develops. When the project becomes operational, he or she also manages the people, the schedule, the budget, and the progress. 104 Step 1: Create a Work Breakdown Structure Chapter 3 Managing Systems Projects The following sections describe the three project development steps. You can view a Video Learning Session before, during, or after you study each step. STEP 1: CREATE A WORK BREAKDOWN STRUCTURE A work breakdown structure (WBS) involves breaking a project down into a series of smaller tasks. Before creating work breakdown structures, you should understand the two primary chart types: Gantt charts and PERT/CPM charts. What Is a Gantt Chart? Gantt charts were developed almost 100 years ago by Henry L. Gantt, a mechanical engineer and management consultant. His goal was to design a chart that could show planned and actual progress on a project. A Gantt chart is a horizontal bar chart that represents a set of tasks. For example, the Gantt chart in Figure 3-6 displays five tasks in a vertical array, with time shown on the horizontal axis. The position of the bar shows the planned starting and ending time of each task, and the length of the bar indicates its duration. On the horizontal axis, time can be shown as elapsed time from a fixed starting point, or as actual calendar dates. A Gantt chart also can simplify a complex project by combining several activities into a task group. For example, in Figure 3-6, Task 4 might consist of five separate tasks, which are hidden in this view. FIGURE 3-5 The matrix is a typical sample of management activities performed while the project is being developed, and when it is launched. Manage the operational project Planning Scheduling Monitoring Reporting STEP1: Create a work breakdown structure STEP 2: Identify task patterns STEP 3: Calculate the critical path To learn more about Gantt charts, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com, navigate to On the Web Links for this chapter, and locate the Gantt Charts link. FIGURE 3-6 In this Gantt chart, notice the task group represented by Task 4. Also notice the yellow bars that show the percentage of task completion. task group VIDEO LEARNING SESSION: WORK BREAKDOWN STRUCTURES Video Learning Sessions can help you understand key concepts, practice your skills, and check your work. To access the sessions, visit the Management Information Systems CourseMate Web site at www.cengagebrain.com and navigate to the Video Learning Sessions for this book. This session is about work breakdown structures. You’ll learn what a work breakdown is and why it is important, how to create a work breakdown structure, and how to use Microsoft Project to display a work breakdown structure. gure Step 1: Create a Work Breakdown Structure 105 Phase 1 Systems Planning A Gantt chart can show task status by adding a contrasting color to the horizontal bars. For example, a vertical arrow marks the current date in Figure 3-6. With a fixed reference point, it is easy to see that Task 1 is way behind schedule, Task 2 is only about 80 percent done and is running behind schedule, Task 3 should have started, but no work has been done, Task 4 actually is running ahead of schedule, and Task 5 will begin in several weeks. Gantt charts can present an overview of the project’s status, but they do not provide enough detailed information, which is necessary when managing a complex project. Most project managers find that PERT/CPM charts, which are discussed in the following section, are better tools for managing large projects. What Is a PERT/CPM Chart? The Program Evaluation Review Technique (PERT) was developed by the U.S. Navy to manage very complex projects, such as the construction of nuclear submarines. At approximately the same time, the Critical Path Method (CPM) was developed by private industry to meet similar project management needs. The distinction between the two methods has disappeared over time, and today the technique is called either PERT, CPM, or PERT/CPM. The textbook will use the term PERT chart. PERT is a bottom-up technique, because it analyzes a large, complex project as a series of individual tasks. To create a PERT chart, you first identify all the project tasks and estimate how much time each task will take to perform. Next, you must determine the logical order in which the tasks must be performed. For example, some tasks cannot start until other tasks have been completed. In other situations, several tasks can be performed at the same time. Once you know the tasks, their durations, and the order in which they must be performed, you can calculate the time that it will take to complete the project. You also can identify the specific tasks that will be critical to the project’s on-time completion. An example of a PERT chart, which Microsoft calls a network diagram, is shown in the lower screen in Figure 3-7. Which Type of Chart Is Better? Although a Gantt chart offers a valuable snapshot view of the project, PERT charts are more useful for scheduling, monitoring, and controlling the actual work. With a PERT chart, a project manager can convert task start and finish times to actual dates by laying out the entire project on a calendar. Then, on any given day, the manager can compare what should be happening with what is taking place, and react accordingly. Also, a PERT chart displays complex task patterns and relationships. This information is valuable to a manager who is trying to address high priority issues. PERT and Gantt charts are not mutually exclusive techniques, and project managers often use both methods. Figure 3-7 shows both chart types. The top screen is a Gantt chart with 11 tasks. The PERT chart in the bottom screen shows the same project, using a separate box for each task instead of a horizontal To learn more about PERT/CPM, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com, navigate to On the Web Links for this chapter, and locate the PERT/ CPM link. FIGURE 3-7 The top screen is a Gantt chart with 11 tasks, and a PERT chart in the bottom screen shows the same project. Although not visible in this zoomed-out view, the PERT chart boxes provide detailed information about task duration, start dates, and finish dates. 106 Step 1: Create a Work Breakdown Structure Chapter 3 Managing Systems Projects bar. Although they both show the task patterns and flow, the PERT chart boxes can provide more detailed information, such as task duration, start date, and finish date. You will learn how to create PERT charts in following sections. Identifying Tasks in a Work Breakdown Structure A work breakdown structure must clearly identify each task and include an estimated duration. A task, or activity, is any work that has a beginning and an end and requires the use of company resources such as people, time, or money. Examples of tasks include conducting interviews, designing a report, selecting software, waiting for the delivery of equipment, or training users. Tasks are basic units of work that the project manager plans, schedules, and monitors — so they should be relatively small and manageable. In addition to tasks, every project has events, or milestones. An event, or milestone, is a recognizable reference point that you can use to monitor progress. For example, an event might be the start of user training, the conversion of system data, or the completion of interviews. A milestone such as Complete 50 percent of program testing would not be useful information unless you could determine exactly when that event will occur. Figure 3-8 shows tasks and events that might be involved in the creation, distribution, and tabulation of a questionnaire. Notice that the beginning and end of each task is marked by a recognizable event. If you tried to manage a project as one large task, it would be impossible. Instead, you break the project down into smaller tasks, creating a work breakdown structure (WBS). The first step in creating a WBS is to list all the tasks. LISTING THE TASKS While this step sounds simple, it can be challenging, because the tasks might be embedded in a document, such as the one shown in the first version of Figure 3-9. One trick is to start by highlighting the individual tasks, as shown in the second version. Adding bullets makes the tasks stand out more clearly, as shown in the third version. The next step is to number the tasks and create a table, similar to the one shown in Figure 3-10, with columns for task number, description, duration, and predecessor tasks. FIGURE 3-8 Using a questionnaire requires a series of tasks and events to track the progress. The illustration shows the relationship between the tasks and the events, or milestones, that mark the beginning and end of each task. FIGURE 3-9 The three versions show how to transform a task statement into a list of specific tasks for a work breakdown structure. Third version Second version First, reserve the meeting room. Then order the marketing materials and brief the managers. After the briefings, send out customer e-mails and burn sample DVDs. When the e-mails are sent and the DVDs are ready, load the new software. When the marketing materials have arrived and the software is ready, do a dress rehearsal. First version First, reserve the meeting room. Then order the marketing materials and brief the managers. After the briefings, send out customer e-mails and burn sample DVDs. When the e-mails are sent and the DVDs are ready, load the new software. When the marketing materials have arrived and the software is ready, do a dress rehearsal. • First, reserve the meeting room. • Then order the marketing materials and brief the managers. • After the briefings, send out customer e-mails and burn sample DVDs. • When the e-mails are sent and the DVDs are ready, load the new software. • When the marketing materials have arrived and the software is ready, do a dress rehearsal. FIGURE 3-10 In this table, columns have been added for task number, description, duration, and predecessor tasks. Task No. Description Duration (Days) Predecessor Tasks 1 Reserve the meeting room 2 Order the marketing materials 3 Brief the managers 4 Send out customer e-mails 5 Burn sample DVDs 6 Load the new software 7 Do a dress rehearsal Step 1: Create a Work Breakdown Structure 107 Phase 1 Systems Planning ESTIMATING TASK DURATION Task duration can be hours, days, or weeks — depending on the project. Because the following example uses days, the units of measurement are called person-days. A person-day represents the work that one person can complete in one day. This approach, however, can present some problems. For example, if it will take one person 20 days to perform a particular task, it might not be true that two people could complete the same task in 10 days or that 10 people could perform the task in two days. Some tasks can be divided evenly so it is possible to use different combinations of time and people, up to a point. For instance, if it takes two persondays to install the cables for a new local area network, one person might do the task in two days, two people in one day, or four people in half a day. In most systems analysis tasks, however, time and people are not interchangeable. If one analyst needs two hours to interview a user, two analysts also will need two hours to do the same interview. Project managers often use a weighted formula for estimating the duration of each task. The project manager first makes three time estimates for each task: an optimistic, or best-case estimate (B), a probable-case estimate (P), and a pessimistic, or worst-case estimate (W). The manager then assigns a weight, which is an importance value, to each estimate. The weight can vary, but a common approach is to use a ratio of B = 1, P = 4, and W = 1. The expected task duration is calculated as follows: (B+4P+W) 6 For example, a project manager might estimate that a file-conversion task could be completed in as few as 20 days or could take as many as 34 days, but most likely will require 24 days. Using the formula, the expected task duration is 25 days, calculated as follows: (20+(4*24)+34) = 6 25 Factors Affecting Duration When developing duration estimates, project managers consider four factors: • Project size • Human resources • Experience with similar projects • Constraints CASE IN POINT 3.2: PARALLEL SERVICES The project management team at Parallel Services is having a debate about how to define tasks in the work breakdown structure (WBS). Ann, the project manager, wants to break tasks down into the smallest possible units. For example, she objected to a broad task statement called Develop a training schedule. Instead, she suggested three subtasks: (1) Determine availability of training room, (2) Determine availability of attendees, and (3) Select specific dates and training times. Karen, another project team member, disagrees. She feels that the broader task statement is better, because it allows more flexibility and will produce the same result. Karen says that if you break tasks into pieces that are too small, you risk overmanaging the work and spending more time on monitoring than actually performing the tasks. As a member of the team, would you tend to agree more with Ann or Karen? What are the pros and cons of each approach? 108 Step 1: Create a Work Breakdown Structure Chapter 3 Managing Systems Projects PROJECT SIZE You learned in Chapter 1 that information systems have various characteristics that affect their complexity and cost. In addition to considering those factors, a project manager must estimate the time required to complete each project phase. To develop accurate estimates, a project manager must identify all project tasks, from initial fact-finding to system implementation. Regardless of the systems development methodology used, the project manager must determine how much time will be needed to perform each task. In developing an estimate, the project manager must allow time for meetings, project reviews, training, and any other factors that could affect the productivity of the development team. HUMAN RESOURCES Companies must invest heavily in cutting-edge technology and Web-based systems to remain competitive in a connected world. In many areas, skilled IT professionals are in great demand, and firms must work hard to attract and retain the talent they need. A project manager must assemble and guide a development team that has the skill and experience to handle the project. If necessary, additional systems analysts or programmers must be hired or trained, and this must be accomplished within a specific time frame. After a project gets under way, the project manager must deal with turnover, job vacancies, and escalating salaries in the technology sector — all of which can affect whether the project can be completed on time and within budget. EXPERIENCE WITH SIMILAR PROJECTS A project manager can develop time and cost estimates based on the resources used for similar, previously developed information systems. The experience method works best for small- or medium-sized projects where the two systems are similar in size, basic content, and operating environment. In large systems with more variables, the estimates are less reliable. In addition, you might not be able to use experience from projects that were developed in a different environment. For example, when you use a new Web-based database application, you might not have previous experience to measure in this environment. In this situation, you could design a prototype or pilot system to gain technical and cost estimating experience. CONSTRAINTS You learned in Chapter 2 that constraints are defined during the preliminary investigation. A constraint is a condition, restriction, or requirement that the system must satisfy. For example, a constraint might involve maximums for one or more resources, such as time, dollars, or people. A project manager must define system requirements that can be achieved realistically within the required constraints. In the CASE IN POINT 3.3: SUNRISE SOFTWARE A lively discussion is under way at Sunrise Software, where you are a project manager. The main question is whether the person-days concept has limitations. In other words, if a task will require 100 person-days, does it matter whether the work is performed by two people in 50 days, five people in 20 days, 10 people in 10 days, or some other combination that adds up to 100? Programmers Paula and Ethan seem to think it doesn’t matter. On the other hand, Hector, a systems analyst, says it is ridiculous to think that any combination would work. To support his point, he offers this extreme example: Could a task estimated at 100 person-days be accomplished by 100 people in one day? Is Hector correct? If so, what are the limits in the people versus days equation? Taking the concept a step farther, is there an optimum number of people to be assigned to a task? If so, how would that number be determined? You need to offer some guidance at the next project team meeting. What will you say? Step 1: Create a Work Breakdown Structure 109 Phase 1 Systems Planning absence of constraints, the project manager simply calculates the resources needed. However, if constraints are present, the project manager must adjust other resources or change the scope of the project. This approach is similar to the what-if analysis that is described in Chapter 12. Displaying the Work Breakdown Structure After you enter the task durations, the work breakdown structure will look like Figure 3-11. If you are managing a complex project with many tasks, you can use task groups, just as you would in a Gantt chart, to simplify the list. If you are using Microsoft Project, the WBS might resemble Figure 3-12. FIGURE 3-11 Task durations have been added, and the WBS is complete except for predecessor task information. The predecessor tasks will determine task patterns and sequence of performance. Task No. Description Duration (Days) Predecessor Tasks 1 Reserve the meeting room 1 2 Order the marketing materials 9 3 Brief the managers 2 4 Send out customer e-mails 3 5 Burn sample DVDs 3 6 Load the new software 2 7 Do a dress rehearsal 1 FIGURE 3-12 A Microsoft project screen displays the same WBS, including task number, description, during, and predecessors. VIDEO LEARNING SESSION: TASK PATTERNS Video Learning Sessions can help you understand key concepts, practice your skills, and check your work. To access the sessions, visit the Management Information Systems CourseMate Web site at www.cengagebrain.com and navigate to the Video Learning Sessions for this book. This session is about task patterns. You’ll learn what task patterns are and why are they important, how to identify and use task patterns, and how to use Microsoft Project to show task patterns. 110 Step 2: Identify Task Patterns Chapter 3 Managing Systems Projects STEP 2: IDENTIFY TASK PATTERNS Tasks in a work breakdown structure must be arranged in a logical sequence called a task pattern. This section will show you how to understand and create graphical models of these patterns. What Are Task Patterns? In any project, large or small, tasks depend on each other and must be performed in a sequence, not unlike the commands in a software program. Task patterns can involve dependent tasks, multiple successor tasks, and multiple predecessor tasks. In larger projects, these patterns can be very complex, and an analyst must study the logical flow carefully. How Do I Use Task Boxes to Create a Model? In a PERT/CPM chart, project tasks are shown as rectangular boxes, arranged in the sequence in which they must be performed. Each rectangular box, called a task box, has five sections, as shown in Figure 3-13. Each section of the task box contains important information about the task, including the Task Name, Task ID, Task Duration, Start Day/Date, and Finish Day/Date. TASK NAME The task name should be brief and descriptive, but it does not have to be unique in the project. For example, a task named Conduct Interviews might occur in several phases of the project. TASK ID The task ID can be a number or code that provides unique identification. TASK DURATION The duration is the amount of time it will take to complete a task. All tasks must use the same time units, which can be hours, days, weeks, or months, depending on the project. An actual project starts on a specific date, but can also be measured from a point in time, such as Day 1. START DAY/DATE The start day/date is the time that a task is scheduled to begin. For example, suppose that a simple project has two tasks: Task 1 and Task 2. Also suppose that Task 2 cannot begin until Task 1 is finished. An analogy might be that you cannot run a program until you turn on your computer. If Task 1 begins on Day 1 and has a duration of three days, it will finish on Day 3. Because Task 2 cannot begin until Task 1 is completed, the start time for Task 2 is Day 4, which is the day after Task 1 is finished. FINISH DAY/DATE The finish day/date is the time that a task is scheduled to be completed. To calculate the finish day or date, you add the duration to the start day or date. When you do this, you must be very careful not to add too many days. For example, if a task starts on Day 10 and has a duration of 5 days, then the finish would be on Day 14 — not Day 15. What Are the Main Types of Task Patterns? A project is based on a pattern of tasks. In a large project the overall pattern would be quite complex, but it can be broken down into three basic patterns: dependent tasks, multiple successor tasks, and multiple predecessor tasks. Task Name Task ID Task Duration Start Day/Date Finish Day/Date TASK BOX FORMAT FIGURE 3-13 Each section of the task box contains important information about the task, including the Task Name, Task ID, Task Duration, Start Day/Date, and Finish Day/Date. Step 2: Identify Task Patterns 111 Phase 1 Systems Planning DEPENDENT TASKS When tasks must be completed one after another, like the relay race shown in Figure 3-14, they are called dependent tasks, because one depends on the other. For example, Figure 3-15 shows that Task 2 depends on Task 1, because Task 2 cannot start until Task 1 is completed. In this example, the finish time of Task 1, Day 5, controls the start date of Task 2, which is Day 6. MULTIPLE SUCCESSOR TASKS When several tasks can start at the same time, each is called a concurrent task. Often, two or more concurrent tasks depend on a single prior task, which is called a predecessor task. In this situation, each concurrent task is called a successor task. In the example shown in Figure 3-16, successor Tasks 2 and 3 both can begin as soon as Task 1 is finished. Notice that the finish time for Task 1 determines the start time for both Tasks 2 and 3. In other words, the earliest that Task 1 can finish is day 30, so day 31 is the earliest that Tasks 2 and 3 can start. MULTIPLE PREDECESSOR TASKS Suppose that a task requires two or more prior tasks to be completed before it can start. Figure 3-17 on the next page shows that example, because Task 3 cannot begin until Tasks 1 and 2 are both completed. Since the two tasks might not finish at the same time, the longest (latest) predecessor task becomes the controlling factor. Notice that the start for Task 3 is Day 16, not Day 6. Why is this so? Because Task 3 depends on two predecessor tasks, Tasks 1 and 2, Task 3 cannot begin until the later of those tasks is complete. Therefore, the start time for a successor task must be the latest (largest) finish time for any of its preceding tasks. In the example shown, Task 1 ends on Day 15, while Task 2 ends on Day 5, so Task 1 controls the start time for Task 3. How Do I Identify Task Patterns? You can identify task patterns by looking carefully at the wording of the task statement. Words like then, when, or and are action words that signal a sequence of events. Here are three simple examples: • Do Task 1, then do Task 2 describes dependent tasks that must be completed one after the other. • When Task 2 is finished, start two tasks: Task 3 and Task 4 describes multiple successor tasks that can both start as soon as Task 2 is finished. • When Tasks 5 and 6 are done, start Task 7 indicates that Task 7 is a multiple predecessor task because it can’t start until two or more previous tasks all are completed. FIGURE 3-14 In a relay race, each runner is dependent on the preceding runner and cannot start until the earlier runner finishes. Design Survey ID: 3 Finish: Day 40 Dur: 10 Start: Day 31 Identify Needs ID: 3 5 Start: Day 31 35 Develop Plan ID: 1 Dur: 30 Start: Day 1 Finish: Day 30 Arrange Interviews 2 Dur: 30 Finish: Day 60 EXAMPLE OF MULTIPLE SUCCESSOR TASKS FIGURE 3-16 This example of multiple successor tasks shows that the finish time for Task 1 determines the start time for both Tasks 2 and 3. Create Document ID: 2 Dur: 9 Start: Day 6 Finish: Day 14 Prepare Outline ID: 1 Dur: 5 Start: Day 1 Finish: Day 5 EXAMPLE OF A DEPENDENT TASK FIGURE 3-15 This example of a dependent task shows that the finish time of Task 1, Day 5, controls the start date of Task 2, which is Day 6. 112 Step 2: Identify Task Patterns Chapter 3 Managing Systems Projects How Do I Work With Complex Task Patterns? When several task patterns combine, you must study the facts very carefully to understand the logic and sequence. A project schedule will not be accurate if the underlying task pattern is incorrect. For example, consider the following three fact statements and the task patterns they represent. Examples of the task patterns are shown Figures 3-18, 3-19, and 3-20. DEPENDENT TASKS Perform Task 1. When Task 1 is complete, perform Task 2. DEPENDENT TASKS AND MULTIPLE SUCCESSOR TASKS Perform Task 1. When Task 1 is complete, perform Task 2. When Task 2 is finished, start two tasks: Task 3 and Task 4. When Task 3 is complete, start two more tasks: Task 5 and Task 6. DEPENDENT TASKS, MULTIPLE SUCCESSOR TASKS, AND MULTIPLE PREDECESSOR TASKS Perform Task 1. When Task 1 is complete, perform Task 2. When Task 2 is finished, start two Tasks: Task 3 and Task 4. When Task 3 is complete, start two more tasks: Task 5 and Task 6. When Tasks 5 and 6 are done, start Task 7. Then, when Tasks 4 and 7 are finished, perform Task 8. 1 2 FIGURE 3-18 Dependent tasks. 2 3 4 6 5 1 FIGURE 3-19 Dependent tasks and multiple successor tasks. 1 2 3 7 8 4 6 5 FIGURE 3-20 Dependent tasks, multiple successor tasks, and multiple predecessor tasks. Obtain Authorization ID: 1 Dur: 15 Start: Day 1 Finish: Day 15 Create Job Description ID: 2 Finish: Day 5 Dur: 5 Start: Day 1 Conduct Interviews ID: 3 Dur: 30 Start: Day 16 Finish: Day 45 EXAMPLE OF MULTIPLE PREDECESSOR TASKS FIGURE 3-17 This example of multiple predecessor tasks shows that the start time for a successor task must be the latest (largest) finish time for any of its preceding tasks. In the example shown,Task 1 ends on Day 15,while Task 2 ends on Day 5, so Task 1 controls the start time for Task 3. Step 3: Calculate the Critical Path 113 Phase 1 Systems Planning STEP 3: CALCULATE THE CRITICAL PATH Task patterns determine the order in which the tasks are performed. Once the task sequence has been defined, a project manager can schedule the tasks and calculate the critical path. What Is a Critical Path? A critical path is a series of tasks which, if delayed, would affect the completion date of the overall project. If any task on the critical path falls behind schedule, the entire project will be delayed. For example, suppose that you invite Joan and Jim to your home for dinner. Joan arrives on time, but Jim arrives 30 minutes late. Jim’s arrival is part of the critical path, because you do not want to start without him, so the meal will be served 30 minutes later than originally planned. Project managers always must be aware of the critical path, so they can respond quickly to keep the project on track. Microsoft Project and other project management software can highlight the series of tasks that form the critical path. How Do I Calculate the Critical Path? Figure 3-21 shows a training project with five tasks. Notice that the analyst has arranged the tasks and entered task names, IDs, and durations. First, you should review the task patterns. In this example, Task 1 is followed by Task 2, which is a dependent task. Task 2 has two successor tasks: Task 3 and Task 4. Tasks 3 and 4 are predecessor tasks for Task 5. The next step is to determine start and finish dates, which will determine the critical path for the project. The following explanation will guide you through a step-by-step process. The result is shown in Figure 3-22 on the next page. Plan Training ID: 3 Dur: 5 Arrange Logistics ID: 4 Dur: 25 Hire Analyst ID: 2 Dur: 30 Announce Training ID: 5 Dur: 30 Obtain Authorization ID: 1 Dur: 10 FIGURE 3-21 Example of a PERT/CPM chart with five tasks. Task 2 is a dependent task that has multiple successor tasks. Task 5 has multiple predecessor tasks. In this figure, the analyst has arranged the tasks and entered task names, IDs, and durations. VIDEO LEARNING SESSION: CRITICAL PATH ANALYSIS Video Learning Sessions can help you understand key concepts, practice your skills, and check your work. To access the sessions, visit the Management Information Systems CourseMate Web site at www.cengagebrain.com and navigate to the Video Learning Sessions for this book. This session is about critical path analysis. You’ll learn what a critical path is and why it is important, how to calculate task dates and identify the critical path, and how to use Microsoft Project to analyze and display the critical path. 114 Project Monitoring and Control Chapter 3 Managing Systems Projects • Task 1 starts on Day 1 and has a duration of 10 days, so the finish date is Day 10. • Task 2, which is dependent on Task 1, can start on Day 11 — the day after Task 1 ends. With a duration of 30 days, Task 2 will end on Day 40. • Tasks 3 and 4 are multiple successor tasks that can start after Task 2 is done. Task 2 ends on Day 40, so Tasks 3 and 4 both can start on Day 41. Task 3 has a duration of 5 days, and will end on Day 45. Task 4 has a duration of 25 days, and will not end until Day 65. • Task 5 depends on Tasks 3 and 4, which are multiple predecessors. Because Task 5 depends on both tasks, it cannot start until the later of the two tasks is complete. In this example, Task 3 ends earlier, but Task 4 will not be completed until Day 65, so Task 5 cannot start until Day 66. Recall that the critical path is a series of tasks which, if delayed, would affect the final completion date of the overall project. In this example, Tasks 1 and 2 are the first tasks on the critical path. Now look at Task 5, which cannot start until both Tasks 3 and 4 are done. In this case, Task 4 is the controlling factor, because Task 4 finishes on Day 65, which is 20 days later than Task 3, which is completed on Day 45. Therefore, the start date for Task 5 is determined by the finish date for Task 4. In contrast, Task 3 has slack time, and could be delayed up to 20 days without affecting Task 5. Slack time is the amount of time that the task could be late without pushing back the completion date of the entire project. Tasks 1, 2, 4, and 5 represent the critical path, which is highlighted with red arrows in Figure 3-22. PROJECT MONITORING AND CONTROL Regardless of whether the project was planned and scheduled with project management software or in some other manner, the project manager must keep track of the tasks and progress of team members, compare actual progress with the project plan, verify the completion of project milestones, and set standards and ensure that they are followed. Monitoring and Control Techniques To help ensure that quality standards are met, many project managers institute structured walk-throughs. A structured walk-through is a review of a project team member’s work by other members of the team. Generally, systems analysts review the work of other systems analysts, and programmers review the work of other programmers, as a form of peer review. Structured walk-throughs take place throughout the SDLC and are called design reviews, code reviews, or testing reviews, depending on the phase in which they occur. Plan Training ID: 3 Dur: 5 Arrange Logistics ID: 4 Finish: Day 65 Dur: 25 Start: Day 41 Hire Analyst ID: 2 Dur: 30 Start: Day 11 Finish: Day 40 Announce Training ID: 5 Dur: 30 Start: Day 66 Finish: Day 95 Obtain Authorization ID: 1 Dur: 10 Start: Day 1 Finish: Day 10 CRITICAL PATH:1-2-4-5 Start: Day 41 Finish: Day 45 FIGURE 3-22 Now the analyst has entered the start and finish times, using the rules explained in this section. Notice that the overall project has a duration of 95 days. Reporting 115 Phase 1 Systems Planning Maintaining a Schedule Maintaining a project schedule can be challenging, and most projects run into at least some problems or delays. By monitoring and controlling the work, the project manager tries to anticipate problems, avoid them or minimize their impact, identify potential solutions, and select the best way to solve the problem. The better the original plan, the easier it will be to control the project. If clear, verifiable milestones exist, it will be simple to determine if and when those targets are achieved. If enough milestones and frequent checkpoints exist, problems will be detected rapidly. A project that is planned and scheduled with PERT/CPM can be tracked and controlled using these same techniques. As work continues, the project manager revises the plan to record actual times for completed tasks and revises times for tasks that are not yet finished. Project managers spend most of their time tracking the tasks along the critical path, because delays in those tasks have the greatest potential to delay or jeopardize the project. Other tasks cannot be ignored, however. For example, suppose that a task not on the critical path takes too long and depletes the allotted slack time. At that point, the task actually becomes part of the critical path, and any further delay will push back the overall project. REPORTING Members of the project team regularly report their progress to the project manager, who in turn reports to management and users. As shown in Figure 3-23, the project manager collects, verifies, organizes, and evaluates the information he or she receives from the team. Then the manager decides which information needs to be passed along, prepares a summary that can be understood easily, adds comments and explanations if needed, and submits it to management and users. Project Status Meetings Project managers, like the one shown in Figure 3-24, schedule regular meetings to update the team and discuss project status, issues, problems, and opportunities. Although meetings can be time consuming, most project managers believe they are worth the effort. The sessions give team members an opportunity to share information, discuss common problems, and explain new techniques. The meetings also give the project manager an opportunity to seek input and conduct brainstorming sessions. Project Status Reports Before going further, you should read the Question of Ethics feature on page 125, which describes an interesting conflict at Final Four Industries. Team members Progress reports Summary report Users Management Project manager collects, verifies, organizes, and evaluates information FIGURE 3-23 Members of the project team regularly report their progress to the project manager, who in turn reports to management and users. FIGURE 3-24 Project managers schedule regular meetings to update the project team and discuss project status, issues, problems, and opportunities. TOOLKIT TIME The Communication Tools in Part A of the Systems Analyst’s Toolkit can help you develop better reports and presentations. To learn more about these tools, turn to Part A of the four-part Toolkit that follows Chapter 12. 116 Project Management Examples Chapter 3 Managing Systems Projects A project is in trouble, but the project manager is reluctant to report the problems. The case highlights important ethical issues that often arise in this situation. A project manager must report regularly to his or her immediate supervisor, upper management, and users. Although a progress report might be given verbally to an immediate supervisor, reports to management and users usually are written. Gantt charts often are included in progress reports to show project status graphically. Deciding how to handle potential problems can be difficult. At what point should you inform management about the possibility of cost overruns, schedule delays, or technical problems? At one extreme is the overly cautious project manager who alerts management to every potential snag and slight delay. The danger here is that the manager loses credibility over a period of time, and management might ignore potentially serious situations. At the other extreme is the project manager who tries to handle all situations single-handedly and does not alert management until a problem is serious. By the time management learns of the problem, little time might remain in which to react or devise a solution. A project manager’s best course of action lies somewhere between the two extremes, but is probably closer to the first. If you are unsure of the consequences, you should be cautious and warn management about the possibility of a problem. When you report the situation, you also should explain what you are doing to handle and monitor the problem. If you believe the situation is beyond your control, you might want to suggest possible actions that management can take to resolve the situation. Most managers recognize that problems do occur on most projects; it is better to alert management sooner rather than later. PROJECT MANAGEMENT EXAMPLES You can use these examples to practice the skills you learned in this chapter. You will also see how you can use project management software to help you manage and display the tasks. PERT/CPM Example Figure 3-25 shows a list of 11 tasks. The example is more complex, but the same guidelines apply. Notice that each task has an ID, a description, a duration, and a reference to predecessor tasks, if any, which must be completed before the task can begin. Also notice that dependent tasks can have one predecessor task, or several. You construct a PERT/ CPM chart from this task list in a two-step process: STEP 1: CREATE THE WORK BREAKDOWN STRUCTURE In the first step, as shown in Figure 3-26 on the next page, you identify the tasks, determine task dependencies, and enter the task name, ID, and duration. Notice that this example includes dependent tasks, multiple successor tasks, and multiple predecessor tasks. STEP 2: ENTER START AND FINISH TIMES In the second step, as shown in Figure 3-27, you enter the start and finish times by applying the guidelines in this section. For example, Task 1 has a one-day duration, so you enter the start and finish times for Task 1 as Day 1. Then you enter Day 2 as the start time for successor Tasks 2 and 3. Continuing from left to right, you add the task duration for each task FIGURE 3-25 Example of a table listing 11 tasks, together with their descriptions, durations, and predecessor tasks. Task No. Description Duration (Days) Predecessor Tasks 1 Develop Plan 1 - 2 Assign Tasks 4 1 3 Obtain Hardware 17 1 4 Programming 70 2 5 Install Hardware 10 3 6 Program Test 30 4 7 Write User Manual 25 5 8 Convert Files 20 5 9 System Test 25 6 10 User Training 20 7, 8 11 User Test 25 9,10 Project Management Examples 117 Phase 1 Systems Planning to its start time to determine its finish time. As you proceed, there are three important rules you must keep in mind: • If a successor task has more than one predecessor task, use the latest finish time of the predecessor tasks to determine the start time for the successor task. • If a predecessor task has more than one successor task, use the predecessor task’s finish time to determine the start time for all successor tasks. • Continuing from left to right, add the task duration for each task to its start time to determine and enter its finish time. Again, be very careful not to add too many days. For example, if a task starts on Day 10 and has a duration of 5 days, then the finish would be Day 14 — not Day 15. When you enter all the start and finish times, you determine that the project will be completed on Day 155. Also, you note that Tasks 1, 2, 4, 6, 9, and 11 represent the critical path shown by the red arrows. User Test ID: 11 Dur: 25 Develop Plan ID: 1 Dur: 1 Program Test ID: 6 Dur: 30 Start: Day 76 Programming ID: 4 Dur: 70 System Test ID: 9 Dur: 25 Assign Tasks ID: 2 Dur: 4 Write User Manual ID: 7 Dur: 25 Convert Files ID: 8 Dur: 20 Install Hardware ID: 5 Dur: 10 User Training ID: 10 Dur: 20 Obtain Hardware ID: 3 Dur: 17 TRANSFORMING A TASK LIST: STEP 1 FIGURE 3-26 To transform a task list into a PERT/CPM chart, you first enter the task name, ID, duration, and predecessors for each task. Notice that this example includes dependent tasks, tasks with multiple successors, and tasks with multiple predecessors. Develop Plan ID: 1 Dur: 1 User Test ID: 11 Dur: 25 Program Test ID: 6 Dur: 30 Start: Day 76 Finish: Day 105 Programming ID: 4 Dur: 70 Start: Day 6 Finish: Day 75 System Test ID: 9 Dur: 25 Start: Day 106 Finish: Day 130 Assign Tasks ID: 2 Dur: 4 Start: Day 2 Finish: Day 5 Start: Day 1 Finish: Day 1 Write User Manual ID: 7 Dur: 25 Convert Files ID: 8 Finish: Day 48 Dur: 20 Start: Day 29 Install Hardware ID: 5 Dur: 10 Start: Day 19 Finish: Day 28 User Training ID: 10 Dur: 20 Start: Day 54 Finish: Day 73 Obtain Hardware ID: 3 Dur: 17 Start: Day 2 Finish: Day 18 CRITICAL PATH:1-2-4-6-9-11 Start: Day 131 Finish: Day 155 Start: Day 29 Finish: Day 53 TRANSFORMING A TASK LIST: STEP 2 FIGURE 3-27 To complete the PERT/CPM chart, you apply the guidelines explained in this section. For example, Task 1 has a one-day duration, so you enter the start and finish for Task 1 as Day 1. Then you enter Day 2 as the start for successor Tasks 2 and 3. 118 Project Management Examples Chapter 3 Managing Systems Projects Software-Driven Example Project managers use powerful software to help plan, schedule, monitor, and report on a project. Most project management programs offer features such as PERT/CPM, Gantt charts, resource scheduling, project calendars, and cost tracking. Microsoft Project is a full-featured project management program that holds the dominant share of the market. On the Web, Microsoft offers demo versions, training, and tips. Although Microsoft is the industry leader, many other vendors offer project management software, and you can explore these options by searching on the Web. One product, Open Workbench, is available as free software, complete with manuals and sample projects, as shown in Figure 3-28. You can download the latest version from the Open Workbench site at openworkbench.org, or you can use the download link in the Features section of the Student Study Tool CD-ROM, which also contains a user manual for Open Workbench. As the Web site explains, Open Workbench is open-source software that is supported by a large group of users and developers. Support options include community forums that are open to all users, various training packages, and third-party support. For many small to medium-sized projects, Open Workbench would be a cost-effective alternative that would compare favorably to Microsoft Project. Open Workbench also can exchange files with Microsoft Project by importing and exporting the data in XML file format. When you use project management software, you follow the same step-by-step process to develop a WBS and create various types of charts. The following sections focus on some basic concepts, but most programs include many powerful features, such as automated reporting tools, and convenient data import-export tools. You can sample these features by reviewing the Open Workbench User Guide, which is included in your Student Study Tool CD-ROM. WORK BREAKDOWN STRUCTURE You already know how to create a work breakdown structure. If you are using Microsoft Project or Open Workbench, the process is exactly the same. You must identify the tasks, durations, and task patterns. You might have to develop this information on your own, or you might work with a task summary like the one in Figure 3-29. Your manager would like you to create a Gantt chart and a PERT chart that show all tasks, dependencies, dates, and total project duration. Your first step FIGURE 3-28 Open Workbench is a free, open-source project management program with powerful features and capabilities. FIGURE 3-29 A sample task summary. Please study the following task summary: • First, we will review the systems request. That will take three days. • Then, two tasks can begin at once: We can review the documentation, which will take three days, and review the Internet access delays, which will take two days. • When the documentation and the Internet access delays have been analyzed, we can contact managers about the interviews, which will take two days. • After we contact the managers, we can plan the interview schedule, which will take two days. • Next, we can prepare the preliminary investigation report, which will take two days. • When the report is ready, we can deliver our presentation to the committee, which will take two days. • After the presentation, three tasks can begin at once: We plan the interview questions, which will take one day; contact the interviewees, which will take one day; and send out the questionnaire, which will be returned in five days. • When the interview questions are ready and the interviewees have been contacted, we can conduct the interviews, which will take three days. • Finally, when the interviews have been conducted and the questionnaire results are back, we can tabulate all results, which will take one day. To learn more about project management software, visit the Management Information Systems CourseMate Web site at www. cengagebrain. com, navigate to On the Web Links for this chapter, and locate the Project Management Software link. Project Management Examples 119 Phase 1 Systems Planning is to create a Gantt chart showing the necessary information. You decide to use Microsoft Project to construct the chart. As you enter each task, you also enter the duration and the predecessor tasks, if any. GANTT CHART As you enter the tasks, durations, and predecessor tasks, the program automatically performs the calculations, detects the task patterns, and creates a Gantt chart similar to the one shown in Figure 3-30. The chart consists of 12 horizontal bars, connected with arrows that indicate the task dependencies. Notice that Saturdays and Sundays are shown as shaded columns, because no work will be performed on those days. The program makes these adjustments automatically. For example, Task 2, which has a duration of three days, starts on Thursday and ends on Monday. NETWORK DIAGRAM After you complete the Gantt chart, you decide to view the data in the form of a Microsoft Project network diagram, which is similar to a PERT chart. When you select the Network Diagram option on the View menu, you can see the project tasks and dependencies, as shown in Figure 3-31. You study the diagram and see that the program has calculated a start and finish date for each task. Notice that the diagram displays the same information as the Gantt chart, including task dependencies, and also includes a red line that indicates the project’s critical path. According to the diagram, if the FIGURE 3-30 Open Workbench can show the sample project as a Gantt chart, or as a PERT chart that includes tasks, durations, dependencies, and a highlighted critical path. Review systems request Review documentation Review internet access delays Contact interviewees Plan interview questions Send questionnaire and obtain results Deliver presentation to committee Conduct interviews Tabulate all results Contact managers about interviews Plan the interview schedule Prepare preliminary investigation report 1 2 8 11 7 10 12 3 days 5 days 3 2 days 2 days 9 1 day 1 day 1 day 3 days 6 days 4 2 days 5 5 days 6 2 days Mon 9/19/11 Wed 9/21/11 Thu 9/22/11 Mon 9/26/11 Thu 9/22/11 Fri 9/23/11 Fri 10/7/11 Thu 10/13/11 Fri 10/14/11 Mon 10/10/11 Fri 10/7/11 Wed 10/5/11 Thu 10/6/11 Fri 10/7/11 Fri 10/7/11 Fri 10/7/11 Wed 10/12/11 Fri 10/14/11 Tue 9/27/11 Wed 9/28/11 Thu 9/29/11 Mon 10/3/11 Mon 10/3/11 Tue 10/4/11 FIGURE 3-31 Using Microsoft Project, you can display a network diagram, which is similar to a PERT chart. Notice that the critical path appears as a red line. 120 Project Management Examples Chapter 3 Managing Systems Projects project remains on schedule, the last task will be completed on Friday, October 14, 2011. Notice that the task boxes in Microsoft Project are similar to PERT/CPM task boxes. Using Microsoft Project, you can assign each task to one or more people, assign budget targets, produce progress reports, and readjust schedules and deadlines as necessary. The latest version of Project is Microsoft Project 2010. This release is offered in a Standard version, a Professional version, and a Server version that includes support for large, enterprise-wide projects. In addition to providing a full description, demos, and training on its Web site, Microsoft also offers a free 60-day trial version that allows you to install, use, and evaluate the program. An alternative to Microsoft Project is the Open Workbench program, which is free. Figure 3-32 shows the Open Workbench version of the same project shown in Figure 3-30 on the previous page. Using Open Workbench, you create tasks and durations, indicate dependencies, and assign resources, just as you would in Microsoft Project. Notice that the critical path is highlighted, both in the Gantt chart and the network diagram. Regardless of which software you use, you can see from these examples that project schedules, task estimates, and personnel assignments all are interrelated. Therefore, project planning is a dynamic task and involves constant change. One significant advantage of integrated interactive project management software is that it allows the project manager to adjust schedules, estimates, and resource assignments rapidly to develop a workable plan. FIGURE 3-32 Open Workbench can show the sample project as a Gantt chart, or as a PERT chart that includes tasks, durations, dependencies, and a highlighted critical path. Risk Management 121 Phase 1 Systems Planning RISK MANAGEMENT Every IT project involves risks that systems analysts and project managers must address. A risk is an event that could affect the project negatively. Risk management is the process of identifying, analyzing, anticipating, and monitoring risks to minimize their impact on the project. Steps in Risk Management The first step in risk management is to develop a specific plan. Although project management experts differ with regard to the number of steps or phases, a basic list would include the following tasks: • Develop a risk management plan. A risk management plan includes a review of the project’s scope, stakeholders, budget, schedule, and any other internal or external factors that might affect the project. The plan should define project roles and responsibilities, risk management methods and procedures, categories of risks, and contingency plans. • Identify the risks. Risk identification lists each risk and assesses the likelihood that it could affect the project. The details would depend on the specific project, but most lists would include a means of identification, and a brief description of the risk, what might cause it to occur, who would be responsible for responding, and the potential impact of the risk. • Analyze the risks. This typically is a two-step process: Qualitative risk analysis and quantitative risk analysis. Qualitative risk analysis evaluates each risk by estimating the probability that it will occur and the degree of impact. Project managers can use a formula to weigh risk and impact values, or they can display the results in a two-axis grid. For example, a Microsoft Excel XY chart can be used to display the matrix, as shown in Figure 3-33. In the chart, notice the various combinations of risk and impact ratings for the five sample values. This tool can help a project manager focus on the most critical areas, where risk probability and potential impact are high. CASE IN POINT 3.4: CENSUS 2010 In April 2008, the U.S. Commerce Department canceled a plan to acquire 500,000 handheld computers to tabulate data during the 2010 census. According to Commerce Secretary Carlos Gutierrez, costs had skyrocketed. He blamed the problem on “a lack of effective communications with one of our major suppliers.” Apparently, there was plenty of blame to go around. Secretary Gutierrez noted that the Census Bureau had submitted numerous technical changes to the vendor, Harris Corporation. This greatly increased the cost and the complexity of the devices. Gutierrez stated, “The Census Bureau was unaccustomed to working with an outside vendor on such a large contract.” He also pointed out that the vendor had submitted an initial estimate of $36 million to operate a help desk to assist census-takers, but that figure had jumped to $217 million. “It was a bad estimate. I can’t think of a better way to say it. Harris gave us the number. We accepted it. It was totally underestimated.” What can be learned from the failure of this project, and could it have been prevented? Suppose you were asked to head up a similar project. What would you do to prevent a similar outcome? 122 Risk Management Chapter 3 Managing Systems Projects The purpose of quantitative risk analysis is to understand the actual impact in terms of dollars, time, project scope, or quality. Quantitative risk analysis can involve a modeling process called what-if analysis, which allows a project manager to vary one or more element(s) in a model to measure the effect on other elements. This topic is discussed in more detail in Chapter 12, Managing Systems Support and Security. • Create a risk response plan. A risk response plan is a proactive effort to anticipate a risk and describe an action plan to deal with it. An effective risk response plan can reduce the overall impact by triggering timely and appropriate action. • Monitor risks. This activity is ongoing throughout the risk management process. It is important to conduct a continuous tracking process that can identify new risks, notice changes in existing risks, and update any other areas of the risk management plan. Risk Management Software Most project management software includes powerful features that allow a project manager to assign specific dates as constraints, align task dependencies, note external factors that might affect a task, track progress, and display tasks that are behind schedule. In addition, some vendors offer risk management add-ons, such as the one shown in Figure 3-34. The enterprise edition of Microsoft Project, Microsoft Project Server 2010, has a built-in risk management capability that can be used for large, corporate-wide projects. Microsoft claims that the software can link risks with specific tasks and projects, specify probability and impact, assign ownership, and track progress to manage projects more efficiently. Microsoft’s risk management model includes the following factors: • Probability, which represents the likelihood that the risk will happen, expressed as a percentage • Impact, which indicates the degree of adverse effect should the risk occur, on a scale of 1 to 10 • Cost, which indicates the potential financial impact of the risk • Category, which specifies the risk type • Description, which specifies the nature of the risk • Mitigation plan, which identifies plans to control or limit the risk High impact Low probability Medium impact Medium probability High impact High probability Low impact High probability Low impact Low probability FIGURE 3-33 You can use a Microsoft Excel XY chart type to display a risk matrix that shows risk probability and potential impact. FIGURE 3-34 Intaver Institute offers an add-on risk management package for Microsoft Project. Managing for Success 123 Phase 1 Systems Planning • Contingency plan, which specifies actions to be taken if the risk occurs • Trigger, which identifies a condition that would initiate the contingency plan Armed with this information, the IT team can make a recommendation regarding the risks associated with the project. Depending on the nature and magnitude of the risks, the final decision might be made by management. MANAGING FOR SUCCESS To be successful, an information system must satisfy business requirements, stay within budget, be completed on time, and — most important of all — be managed effectively. When a project develops problems, the reasons typically involve business, budget, or schedule issues, as explained in the following sections. In addition to planning and managing the project, a project manager must be able to recognize problems and deal with them effectively. Business Issues The major objective of every system is to provide a solution to a business problem or opportunity. If the system does not do this, then it is a failure — regardless of positive reaction from users, acceptable budget performance, or timely delivery. When the information system does not meet business requirements, causes might include unidentified or unclear requirements, inadequately defined scope, imprecise targets, shortcuts or sloppy work during systems analysis, poor design choices, insufficient testing or inadequate testing procedures, and lack of change control procedures. Systems also fail because of changes in the organization’s culture, funding, or objectives. A system that falls short of business needs also produces problems for users and reduces employee morale and productivity. As you learned in Chapter 2, projects without clear scope definitions are risky, because they tend to expand gradually, without specific authorization, in a process called project creep. However, even when a project is clearly described, it must be managed constantly. Budget Issues Cost overruns typically result from one or more of the following: • Unrealistic estimates that are too optimistic or based on incomplete information • Failure to develop an accurate forecast that considers all costs over the life of the project • Poor monitoring of progress and slow response to early warning signs of problems • Schedule delays due to factors that were not foreseen • Human resource issues, including turnover, inadequate training, and motivation Schedule Issues Problems with timetables and project milestones can indicate a failure to recognize task dependencies, confusion between effort and progress, poor monitoring and control methods, personality conflicts among team members, or turnover of project personnel. The failure of an IT project also can be caused by poor project management techniques. 124 The Bottom Line Chapter 3 Managing Systems Projects If the project manager fails to plan, staff, organize, supervise, communicate, motivate, evaluate, direct, and control properly, then the project is certain to fail. Even when factors outside his or her control contribute to the failure, the project manager is responsible for recognizing the early warning signs and handling them effectively. THE BOTTOM LINE Project management is a challenging task. Project managers must be alert, technically competent, and highly resourceful. They also must be good communicators with strong human resource skills. A project manager can be proud when he or she handles a successful project that helps the company achieve its business objectives, such as the Apple product launch shown in Figure 3-35. Unfortunately, projects can and do get derailed for a wide variety of reasons. When problems occur, the project manager’s ability to handle the situation becomes the critical factor. When a project manager first recognizes that a project is in trouble, what options are available? Alternatives can include trimming the project requirements, adding to the project resources, delaying the project deadline, and improving management controls and procedures. Sometimes, when a project experiences delays or cost overruns, the system still can be delivered on time and within budget if several less critical requirements are trimmed. The system can be delivered to satisfy the most necessary requirements, and additional features can be added later as a part of a maintenance or enhancement project. If a project is in trouble because of a lack of resources or organizational support, management might be willing to give the project more commitment and higher priority. For example, management might agree to add more people to a project that is behind schedule. Adding staff, however, will reduce the project’s completion time only if the additional people can be integrated effectively into the development team. If team members lack experience with certain aspects of the required technology, temporary help might be obtained from IT consultants or part-time staff. Adding staff can mean training and orienting the new people, however. In some situations, adding more people to a project actually might increase the time necessary to complete the project because of a principle called Brooks’ Law. This interesting concept was stated by Frederick Brooks, Jr., an IBM engineer, who observed that adding manpower to a late software project only makes it later. Brooks reached this conclusion when he saw that new workers on a project first had to be educated and instructed by existing employees whose own productivity was reduced accordingly. FIGURE 3-35 When a complex project is successful, the project manager has a right to be proud. Chapter Summary 125 Phase 1 Systems Planning CHAPTER SUMMARY Project management is the process of planning, scheduling, monitoring, and reporting on the development of an information system. A successful project must be completed on time, within budget, and deliver a quality product that satisfies users and meets requirements. Project management techniques can be used throughout the SDLC. Project managers are responsible for project planning, scheduling, monitoring, and reporting. Planning includes identifying all project tasks and estimating the completion time and cost of each. Project scheduling involves the creation of a specific timetable, usually in the form of charts that show tasks, task dependencies, and critical tasks that might delay the project. Project monitoring requires guiding, supervising, and coordinating the project team’s workload. The project manager must monitor the progress, evaluate the results, and take corrective action when necessary to control the project and stay on target. Project reporting includes regular progress reports to management, users, and the project team itself. Effective reporting requires strong communication skills and a sense of what others want and need to know about the project. Planning, scheduling, monitoring and reporting all take place within a larger project development framework, which includes three key steps: creating a work breakdown structure, identifying task patterns, and calculating the critical path. A work breakdown structure must clearly identify each task and include an estimated duration. A task, or activity, is any work that has a beginning and an end and requires the use of company resources such as people, time, or money. Time and cost estimates for tasks usually are made in person-days. A person-day represents the work that one person can accomplish in one day. Estimating the time for project activities is more difficult with larger systems. Project managers must consider the project size and scope, IT resources, prior experience with similar projects or systems, and applicable constraints. In addition to tasks, every project has events, or milestones. An event, or milestone, is a recognizable reference point that you can use to monitor progress. Task patterns establish the sequence of work in a project. Task patterns involve dependent tasks, multiple successor tasks, and multiple predecessor tasks. In larger projects, these patterns can be very complex. A critical path is a series of tasks which, if delayed, would affect the completion date of the overall project. If any task on the critical path falls behind schedule, the entire A QUESTION OF ETHICS “Better blow the whistle,” says Roy, your friend and project teammate at Final Four Industries. “The project is out of control, and you know it!” “Maybe so,” you respond, “But that’s not my call — I’m not the project manager.” What you don’t say is that Stephanie, the project manager, feels like her career is on the line and she is reluctant to bring bad news to management at this time. She honestly believes that the project can catch up, and says that a bad report on a major project could result in bad publicity for the firm and frighten potential customers. To be fair, the next management progress report is scheduled in three weeks. It is possible that the team could catch up, but you doubt it. You wonder if there is an ethical question here: Even though the report isn’t due yet, should a significant problem be reported to management as soon as possible? You are concerned about the issue, and you decide to discuss it with Stephanie. What will you say to her? 126 Chapter Summary Chapter 3 Managing Systems Projects project will be delayed. Tasks on the critical path cannot have slack time. To identify the critical path, you calculate the start and finish date for each task, which will determine the critical path for the project. In project scheduling, the project manager develops a specific time for each task, based on available resources and whether or not the task is dependent on other predecessor tasks. The manager can use graphical tools such as Gantt charts and PERT charts to assist in the scheduling process. A Gantt chart is a horizontal bar chart that represents the project schedule with time on the horizontal axis and tasks arranged vertically. It shows individual tasks and task groups, which include several tasks. In a Gantt chart, the length of the bar indicates the duration of the tasks. A Gantt chart can display progress, but does not show task dependency details or resource assignment unless the chart was created with a project management program that supports dependency linking and the entry of other information. A PERT/CPM chart shows the project as a network diagram with tasks connected by arrows. Using a prescribed calculation method, the project manager uses a PERT chart to determine the overall duration of the project and provide specific information for each task, including the task IDs, their durations, start and finish times, and the order in which they must be performed. With this information, the manager can determine the critical path, which is the sequence of tasks that have no slack time and must be performed on schedule in order to meet the overall project deadline. Most project managers use powerful software such as Microsoft Project and Open Workbench to plan, schedule, and monitor projects. Project managers are responsible for risk management, which is the process of identifying, analyzing, anticipating, and monitoring risks to minimize their impact on the project. In the end, every successful information system must support business requirements, stay within budget, and be completed on time. Sound project management involves the same skills as any other management. The project manager must be perceptive, analytical, well-organized, and a good communicator. If the project manager senses that the project is off-track, he or she must take immediate steps to diagnose and solve the problem. If the project manager fails to plan, staff, organize, supervise, communicate, motivate, evaluate, direct, and control properly, then the project is certain to fail. Even when factors outside his or her control contribute to the failure, the project manager is responsible for recognizing the early warning signs and handling them effectively. 127 Phase 1 Systems Planning Key Terms and Phrases Key Terms and Phrases activity 106 best-case estimate 107 bottom-up technique 105 Brooks’ Law 124 code review 114 concurrent tasks 111 critical path 113 Critical Path Method (CPM) 105 dependent task 111 design review 114 duration 110 event 106 finish day/date 110 Gantt chart 104 Microsoft Project 118 milestone 106 network diagram 105 Open Workbench 118 open-source software 118 person-day 107 PERT/CPM 105 predecessor task 111 probable-case estimate 107 Program Evaluation Review Technique (PERT) 105 project coordinator 103 project creep 123 project leader 103 project management 102 project management software 113 project manager 103 project monitoring 103 project planning 103 project reporting 103 project scheduling 103 qualitative risk analysis 121 quantitative risk analysis 122 risk 121 risk identification 121 risk management 121 risk management plan 121 risk response plan 122 slack time 114 start day/date 110 structured walk-through 114 successor task 111 task 105 task box 110 task group 104 task ID 110 task name 110 task pattern 110 testing review 114 weight 107 work breakdown structure (WBS) 104 worst-case estimate 107 128 Chapter 3 Managing Systems Projects Learn It Online Instructions: To complete the Learn It Online exercises, visit the Management Information Systems CourseMate Web site at www.cengagebrain.com, navigate to the resources for this chapter, and click the link for the exercise you want to complete. 1 Chapter Reinforcement TF, MC, and SA Click the Chapter Reinforcement link. Print the quiz by clicking Print on the File menu for each page. Answer each question. 2 Flash Cards Click the Flash Cards link and read the instructions. Type 20 (or a number specified by your instructor) in the Number of playing cards text box, type your name in the Enter your name text box, and then click the Flip Card button. When the flash card is displayed, read the question and then click the ANSWER box arrow to select an answer. Flip through the Flash Cards. If your score is 15 (75%) correct or greater, click Print on the File menu to print your results. If your score is less than 15 (75%) correct, then redo this exercise by clicking the Replay button. 3 Practice Test Click the Practice Test link. Answer each question, enter your first and last name at the bottom of the page, and then click the Grade Test button. When the graded practice test is displayed on your screen, click Print on the File menu to print a hard copy. Continue to take practice tests until you score 80% or better. 4 Who Wants To Be a Computer Genius? Click the Computer Genius link. Read the instructions, enter your first and last name at the bottom of the page, and then click the Play button. When your score is displayed, click the PRINT RESULTS link to print a hard copy. 5 Wheel of Terms Click the Wheel of Terms link. Read the instructions, and then enter your first and last name and your school name. Click the PLAY button. When your score is displayed on the screen, right-click the score and then click Print on the shortcut menu to print a hard copy. 6 Crossword Puzzle Challenge Click the Crossword Puzzle Challenge link. Read the instructions, and then enter your first and last name. Click the SUBMIT button. Work the crossword puzzle. When you are finished, click the SUBMIT button. When the crossword puzzle is redisplayed, click the Print Puzzle button to print a hard copy. Learn It Online 129 Phase 1 Systems Planning SCR Associates Case Simulation Session 3: Managing Systems Projects Overview The SCR Associates case study is a Web-based simulation that allows you to practice your skills in a real-world environment. The case study transports you to SCR’s intranet, where you complete 12 work sessions, each aligning with a chapter. As you work on the case, you will receive e-mail and voice mail messages, obtain information from SCR’s online libraries, and perform various tasks. How do I use the case? • Review the SCR background material in Chapter 1. • Read the Preview for this session and study the Task List • Visit the Management Information Systems CourseMate Web site at www.cengagebrain. com, navigate to the SCR Case Simulation, and locate the intranet link. • Enter your name and the password sad9e. An opening screen will display the 12 sessions. • Select this session. Check your e-mail and voice mail carefully, and then work on the tasks. Preview: Session 3 The TIMS system was approved by top management. Jesse Baker, systems group manager, has asked you to help her manage the project. She said it will be a great opportunity to learn more about project management and practice your skills, so you’ll be able to handle a future project on your own. She specifically suggested that you become familiar with work breakdown structures, task patterns, and critical path calculations. To make sure that you are prepared, you decide to study the project management chapter in your textbook before starting the tasks. Task List Case-Sim: SCR Associates FIGURE 3-36 Task list: Session 3. 1. Jesse wants me to investigate Open Workbench software to determine whether it would be suitable for SCR. She asked me to prepare a summary of pros and cons, and a sample of screen shots and information. 2. Jesse likes the idea of using task completion estimates with best-case, probable-case, and worst-case estimates. She said that I should use typical formulas and weight values to create a Microsoft Excel spreadsheet that would make it easier to calculate expected task durations. 3. To practice my skills, Jesse asked me to create an imaginary project with 10 tasks, which include dependent, multiple predecessor, and multiple successor tasks. She wants me to create a list showing the tasks and dependencies, and then lay it out on paper to show the logical flow, and the duration, start, and finish for each task. 4. I’m excited to be part of the project team, and Jesse wants me to prepare a brief handout for the other team members with some do’s and don’ts regarding project management. She said to make it look like a checklist of keys to project success. 130 Chapter 3 Managing Systems Projects Chapter Exercises Review Questions 1. What is project management, and what are its main objectives? 2. What is the relationship between tasks and events, or milestones? 3. What is a work breakdown structure? How do you create one? 4. What are task patterns, and how can you recognize them? 5. Compare the advantages and disadvantages of Gantt and PERT/CPM charts. 6. Define the following terms: best-case estimate, probable-case estimate, and worstcase estimate, and describe how project managers use these concepts. 7. How does a project manager calculate start and finish times? 8. What is a critical path, and why is it important to project managers? How do you identify the critical path? 9. What are some project reporting and communication techniques? 10. What is risk management, and why is it important? Discussion Topics 1. In Poor Richard’s Almanac, Benjamin Franklin penned the familiar lines: “For the want of a nail the shoe was lost, for the want of a shoe the horse was lost, for the want of a horse the rider was lost, for the want of a rider the battle was lost, for the want of a battle the kingdom was lost — and all for the want of a horseshoe nail.” Looking at the outcome in hindsight, could project management concepts have avoided the loss of the kingdom? Explain your answers. 2. Microsoft Project is an example of software that is very powerful, but quite expensive. As a project manager, how would you justify the purchase of this software? Also, would you consider using Open Workbench? Why or why not? 3. Suppose you want to manage a relatively small project, but you have no access to project management software of any kind. How could you use a spreadsheet program or a database program to manage the project? Share your ideas with the class. 4. Many managers claim to have “seat of the pants” intuition when it comes to project management. In your view, does this kind of intuition actually exist? Can you think of examples to support your views? Projects 1. Think of all the tasks that you perform when you purchase a car. Include any research, decisions, or financial issues that relate to the purchase. Draw a Gantt chart that shows all the tasks and the estimated duration of each. 2. Perform Internet research to learn more about project risk management, and write a summary of the results. Be sure to search for a book titled Waltzing with Bears: Managing Risk on Software Projects, by Tom Demarco and Timothy Lister. 3. Go to Microsoft’s Web site and navigate to the Download and Trials area. Select Microsoft Project Professional 2010, download the program, and install it. Then create a project based on the five tasks shown in Figure 3-21 on page 113. When the project is complete, click View, then click Network Diagram. Do the tasks resemble Figure 3-22 on page 114? Is the critical path the same? 4. Describe three personal experiences where a project management approach would have been helpful. Chapter Exercises 131 Phase 1 Systems Planning Apply Your Knowledge The Apply Your Knowledge section contains four mini-cases. Each case describes a situation, explains your role in the case, and asks you to respond to questions. You can answer the questions by applying knowledge you learned in the chapter. 1 Countywide Construction At Countywide Construction, you are trying to convince your boss that he should consider modern project management techniques to manage a complex project. Your boss says that he doesn’t need anything fancy, and that he can guess the total time by the seat of his pants. To prove your point, you decide to use a very simple example of a commercial construction project, with eight tasks. You create a hypothetical work breakdown structure, as follows: • Prepare the foundation (10 days). Then assemble the building (4 days). • When the building is assembled, start two tasks at once: Finish the interior work (4 days) and set up an appointment for the final building inspection (30 days). • When the interior work is done, start two more tasks at once: landscaping (5 days) and driveway paving (2 days). • When the landscaping and driveway are done, do the painting (5 days). • Finally, when the painting is done and the final inspection has occurred, arrange the sale (3 days). Now you ask your boss to estimate the total time and write his answer on a piece of paper. You look at the paper and see that his guess is wrong. 1. What is the correct answer? 2. What is the critical path? 3. Create a Gantt chart that shows the WBS. 4. Create a PERT/CPM chart. 2 Pleasantville High School Class The computer science instructor at Pleasantville High School has asked you to visit her class and give a presentation about project management. You have just a few days to prepare, and you need to develop a presentation that briefly describes project management tools and techniques. You can be creative, and you might want to include examples of actual projects that you know about. In any case, try to describe how projects are planned, scheduled, monitored, and reported upon. Your presentation can be in the form of a Microsoft Word outline with notes, or as a set of PowerPoint slides. 1. Prepare opening comments that give the class an overview of project management. 2. Provide the class with a glossary of the most important project management terms and definitions. 3. Think of a common event like buying a new home, and show the class how a project manager might handle the matter. 4. Create a short scenario with 4 – 6 tasks, some of which depend on each other. You can use the two preceding cases as a model. Develop a sample answer that you will show the students after you give them a chance to analyze the tasks. Apply Your Knowledge 132 Chapter 3 Managing Systems Projects Apply Your Knowledge 3 Lightfoot Industries You have been asked to lead a training session for new employees at Lightfoot Industries. You must develop a specific schedule for the tasks listed below (the estimated task duration for each is shown in parentheses): • First, you need to contact the participants and explain their roles (1 day). Then you must obtain approval from their department managers (5 days). • After you obtain the approval, two tasks can begin at the same time: You can arrange the meeting room (4 days) and prepare an agenda for the initial session (11 days). • When the agenda is ready, you can start two more concurrent tasks: Prepare the information packets (4 days) and create visual aids (8 days). • When the meeting room is arranged and the information packets are ready, you can send out an e-mail to participants (1 day). • Finally, after the e-mail is sent to participants and the visual aids are ready, you can conduct the JAD sessions (5 days). 1. Prepare a list showing all tasks and their durations. 2. Analyze the fact situation carefully to determine which tasks are concurrent and which ones are dependent on other tasks. 3. Using PERT/CPM techniques, develop a chart that shows the project. Use a format similar to Figure 3-27 on page 117. If project management software is available, use it to develop the chart. 4. What is the critical path for this project? How do you know? 4 Riverside Financial At Riverside Financial, where you work as a project manager, you have been asked to conduct user training sessions during the implementation phase for a new information system. You must develop a specific schedule for the tasks (the estimated task duration for each is shown in parentheses): • First, you need to send an e-mail message to all department managers announcing the training sessions (1 day). • After the e-mail message goes out, two tasks can begin at the same time: You can develop the training material (4 days) and confirm arrangements for the training facility you plan to use (11 days). • As soon as the training material is complete, you can work on two tasks at once: Arrange to have copies of handout material printed (3 days) and develop a set of PowerPoint slides (4 days). • When the PowerPoint slides are ready, you conduct a practice training session with the instructor who will assist you (1 day). • Finally, when the practice session is over, the handout material is ready, and the training facility is confirmed, you conduct the user training sessions (3 days). 1. Prepare a list showing all tasks and their durations. 2. Analyze the fact situation carefully to determine which tasks are concurrent and which ones are dependant on other tasks. 3. Using PERT/CPM techniques, develop a chart that shows the project. Use a format similar to Figure 3-27 on page 117. If project management software is available, use it to develop the chart. 4. What is the critical path for this project? How do you know? Case Studies 133 Case studies allow you to practice specific skills learned in the chapter. Each chapter contains several case studies that continue throughout the textbook, and a chapter capstone case. NEW CENTURY HEALTH CLINIC New Century Health Clinic offers preventive medicine and traditional medical care. In your role as an IT consultant, you will help New Century develop a new information system. Background To ensure the quality, cost, and timeliness of the new information system, New Century is considering a project management approach. To obtain a better understanding of project management, Dr. Jones contacted Precision Planning, a consulting firm that specializes in managing projects of this type. He invited the company to deliver a brief presentation on project management concepts and advantages, and to submit a proposal for project management consulting services. You joined Precision Planning two years ago as a project assistant, after working two summers as a student intern. Your supervisor, Charlie West, asked you to develop the presentation for New Century and you are excited about the opportunity. Charlie said that the main objective is to provide a clear, informative presentation. Charlie wants you to include the following topics in your presentation: an overview of project management and its history, a description of the process, and an explanation of the most important terms and concepts. Charlie also wants you to describe task identification, various types of relationships among tasks, and schedule development. He says you should show how Gantt and PERT/CPM charts are developed, and how they can be used to plan, track, and control projects. Charlie also said that your presentation should include a specific example to illustrate all the main points. Assignments 1. Create a Microsoft PowerPoint presentation that will meet the requirements that Charlie outlined to you. 2. Create a Microsoft Word handout that will meet the requirements that Charlie outlined to you. 3. Create a project management example with at least six tasks. Assign durations and task dependencies. At least three of the tasks should be dependent on other tasks. Use this example to display a Gantt chart. 4. Use the same data as Assignment 3 to display a PERT/CPM chart. PERSONAL TRAINER, INC. Personal Trainer, Inc. owns and operates fitness centers in a dozen Midwestern cities. The centers have done well, and the company is planning an international expansion by opening a new “supercenter” in the Toronto area. Personal Trainer’s president, Cassia Umi, hired an IT consultant, Susan Park, to help develop an information system for the new facility. During the project, Susan will work closely with Gray Lewis, who will manage the new operation. Background You are enjoying your job as a student intern at Personal Trainer. Last week, Susan asked you to help her plan the new information system project. Susan knows that you have completed several information systems courses at the local college, and that you have studied project management tools and techniques. Case Studies Phase 1 Systems Planning 134 Chapter 3 Managing Systems Projects Case Studies Specifically, she wants you to get ready for the next set of systems development tasks, which will be requirements modeling for the new system. Yesterday, Susan called you into her office to discuss the specific tasks she wants you to perform. After meeting with Susan, you sit down and review your notes. She wants you to treat the set of tasks as a project, and to use project management skills to plan the tasks. Here is what she suggested to you as a work breakdown structure, including the duration she estimated for each task: • First, you need to meet with fitness center managers at other Personal Trainer locations (10 days). • After these meetings, you can conduct a series of interviews (8 days). • When the interviews are complete, two tasks can begin at the same time: You can review company records (2 days) and observe business operations (7 days). • When you have reviewed the records and observed business operations, you can analyze the BumbleBee accounting software (3 days) and study a sample of sales and billing transactions (1 day). You are excited about the opportunity to practice your skills, and you start to work on the following list. Assignments 1. Create a table listing all tasks separately, with their duration. 2. Identify all dependent tasks, and indicate what predecessor tasks are required. 3. Construct a PERT/CPM chart similar to the one in Figure 3-27 on page 117. If you have access to Microsoft Project or other project management software, you can use it to help you create the chart. 4. Determine the overall duration of the project, and identify the critical path. Chapter Capstone Case: SoftWear, Limited 135 SoftWear, Limited (SWL) is a continuing case study that illustrates the knowledge and skills described in each chapter. In this case study, the student acts as a member of the SWL systems development team and performs various tasks. Background At a recent management meeting, SWL’s president, Robert Lansing, announced a major effort to control costs and improve quality. To help achieve this goal, Mr. Lansing stated that SWL would use project management tools and techniques to plan and manage all major corporate projects. He named several people who would work as an interdepartmental team to coordinate SWL’s project management efforts. Team members included April Lane, director of planning; Mike Feiner, director of human resources; and Ann Hon, director of information technology. The Interdepartmental Team At their first meeting, the team came up with three main goals: Establish a companywide understanding of project management concepts, identify suitable project management software, and develop comprehensive training for all SWL managers. Since Ann Hon had the most experience with project management, she agreed to serve as team leader. She also agreed to develop a list of concepts that the team could use as a starting point. Project Management Concepts The team met again a week later, and Ann distributed a list of 10 key questions: 1. What is a project? 2. What are project characteristics, constraints, and risks? 3. What is a project stakeholder? 4. What is the role of a project manager? 5. What is project planning? 6. What is project scheduling? 7. What is project monitoring and controlling? 8. What is project reporting? 9. What is project risk management? 10. What are the indications of project success or failure? As the team members reviewed the list, Ann said that a set of working definitions would be a good first step in developing a company-wide approach for managing projects. She suggested that the answers were available from various sources, including a considerable body of literature and numerous online links. She also pointed out that the answers would be a key part of the proposed training program for SWL managers. The team decided to split up the research tasks and share the results at the next meeting. Project Management Software Ann made arrangements for the other team members to obtain a copy of Microsoft Project, which is the leading project management program. She also suggested that each of them try the brief Project training courses that are available on the Microsoft Web site. She then walked them though a two-hour session that demonstrated the software. She showed examples of Gantt charts, PERT charts, milestones, task dependencies, and resource assignments. (continues) CHAPTER CAPSTONE CASE: SoftWear, Limited Phase 1 Systems Planning 136 Chapter 3 Managing Systems Projects Chapter Capstone Case: SoftWear, Limited CHAPTER CAPSTONE CASE: SoftWear, Limited (continued) Ann also pointed out that other software alternatives exist, including free, open-source programs, such as Open Workbench, which is supported by a large user group. For now, the team agreed to obtain pricing and licensing information for Microsoft Project, and to look into other alternatives to determine whether the other programs could exchange data with Microsoft Project. Project Management Training Ann suggested that the team compare the pros and cons of in-house training versus vendor-supplied training options. Again, Ann suggested the Microsoft Web site as a good starting point to evaluate third-party solutions. Using information on the site, the team was able to identify three training providers. After contacting these firms, the team had some realistic time and cost estimates for outside training solutions. Ann suggested that the team should also consider a train-the-trainer approach where she would instruct an initial group from all SWL departments, and the training team would then provide training sessions within their respective departments. Meanwhile, Mike Feiner wondered whether any current SWL employees had listed project management experience and skills in their applications or résumés. SWL Team Tasks 1. Using the material in this chapter and other reference material if necessary, develop a set of answers to the 10 questions that Ann presented to the team. 2. Suppose that Ann asked you to create an outline for her two-hour demo session. You can use Microsoft Project if it is available to you, or you can download a free demo version from the Microsoft Web site. In your outline, try to mention the basic information that a user would need to get started with a simple project. 3. Visit the Web site for Open Workbench and write a description of the product. Try to include as many features as possible, and list the pros and cons of the program. Determine whether the program can exchange information with Microsoft Project, and whether any special techniques are necessary to accomplish the transfer. 4. Microsoft has launched MPUG, which stands for Microsoft Project User Group. MPUG’s stated mission is to deliver Microsoft Office Project content, resources, opportunities, and community networking worldwide. Explore the site at mpug.com and note the various levels of membership. Should SWL encourage IT staff members to join this group? Write up a recommendation with your reasons. Manage the SWL Project You have been asked to manage SWL’s new information system project. One of your most important activities will be to identify project tasks and determine when they will be performed. Before you begin, you should review the SWL case in this chapter. Then list and analyze the tasks, as follows: LIST THE TASKS Start by listing and numbering at least 10 tasks that the SWL team needs to perform to fulfill the objectives of this chapter. Your list can include SWL Team Tasks and any other tasks that are described in this chapter. For example, Task 3 might be to Identify the project tasks and Task 6 might be to Analyze task relationships. 137 Phase 1 Systems Planning Chapter Capstone Case: SoftWear, Limited CHAPTER CAPSTONE CASE: SoftWear, Limited (continued) ANALYZE THE TASKS Now study the tasks to determine the order in which they should be performed. First identify all concurrent tasks, which are not dependent on other tasks. In the example shown in Figure 3-37, Tasks 1, 2, 3, 4, and 5 are concurrent tasks, and could begin at the same time if resources are available. Other tasks are dependent tasks, because they cannot be performed until one or more earlier tasks have been completed. For each dependent task, you must identify specific tasks that need to be completed before these tasks can begin. For example, you need to identify the project tasks before you can analyze the task relationships, so Task 6 cannot begin until Task 3 is completed, as Figure 3-37 shows. This chapter describes project management tools, techniques, and software. To learn more, you can use the Features section on your Student Study Tool CD-ROM, or visit the Management Information Systems CourseMate Web site at www.cengagebrain.com and locate the project management resources library for this book. On the Web, Microsoft offers demo versions, training, and tips for using Project 2010. You also can visit the OpenWorkbench.org site to learn more about this free, open-source software. FIGURE 3-37 Tasks 1, 2, 3, 4, and 5 are concurrent tasks that could be performed at the same time. Task 6 is a dependent task that cannot be performed until Task 3 has been completed. 138 Chapter 3 Managing Systems Projects Ready for a Challenge? Ready for a Challenge? The IT group at Game Technology has received approval to add a new entry-level systems analyst position. You will help set up the hiring timetable and tasks. After speaking to several people in the department, you identified seven tasks and the order in which they should be performed. Using your notes, you write up the following statement: First, review the applications (2 days). Then start three tasks: notify the IT team (2 days), reserve a conference room (1 day), and set up an interview schedule (5 days). When the team has been notified and the conference room reserved, prepare a set of interview questions (2 days). When the questions are ready and the interview schedule has been developed, conduct the interviews (5 days). After the interviews are done, meet with the hiring committee to select a candidate (1 day). Practice Tasks A. Prepare a work breakdown structure showing tasks, durations, and predecessor tasks. B. Calculate the start and finish date for each task, and determine the critical path. After you complete the Practice Tasks, to check your work and view sample answers, visit the Management Information Systems CourseMate Web site at www.cengagebrain.com, navigate to the resources for this chapter, and locate Ready for a Challenge?. The Challenge The hiring committee made a job offer to Sharon Adams, and she accepted. She will start her new job in three weeks. As IT department intern, you were asked to set up an orientation for her, including meetings with human resources, users, and the IT team. She also would go on a tour of the company, and confirm a security clearance. After thinking about this, you come up with a suggested orientation schedule, as follows: First, Sharon would meet with human resources to learn about company benefits and policies (3 hours). When that meeting is over, she could handle three tasks at once: she could tour the company offices (4 hours), meet with users (3 hours), and work on the necessary paperwork (2 hours). After the tour and user meetings, she could meet with the IT managers (1 hour). Then, after meeting the IT managers and with all the paperwork completed, she would meet with the entire IT team for a brief introduction (1 hour). Challenge Tasks A. Prepare a work breakdown structure showing tasks, durations, and predecessor tasks. B. Calculate the start and finish date for each task, and determine the critical path. In additional to technical skills, IT professionals need critical thinking skills such as perception, organization, analysis, problem-solving, and decision-making. The Ready for a Challenge feature can help you learn, practice, and apply critical thinking skills that you can take to the workplace.