Systems Analysis and Design, Tenth Edition End of Chapter Solutions: CHAPTER 3 Managing Systems Projects

IT 510 Systems Analysis and Design, Tenth Edition End of Chapter Solutions: CHAPTER 3 Managing Systems Projects Chapter Exercises s Questions 1. Write the script for a one­minute explanation of basic project manage ...

IT 510 Systems Analysis and Design, Tenth Edition End of Chapter Solutions: CHAPTER 3 Managing Systems Projects Chapter Exercises s Questions 1. Write the script for a one­minute explanation of basic project management concepts. Students should be able to put together a brief explanation in about 100 words – just like a Twitter message. You might want to hold a contest to see who can say the most in the least space, and even allow abbreviations if you choose. If you present it as a challenge, most students will be eager to try it. Hint: one approach might be to use the textbook Chapter Summery, and copy, paste, and edit three or four key sentences. (Page 119) 2. What is a task? What is an event? What is a milestone? A task, or activity, is any work that has a beginning and an end, and requires the use of company resources including people, time, or money. Examples of activities include conducting a series of interviews, designing a report, selecting software, waiting for the delivery of equipment, or training users. Activities are basic units of work that the project manager plans, monitors, and tracks. An event, or milestone, is a reference point that marks a major occurrence and is used to monitor progress and manage the project. Every activity has two events — one represents the beginning of the task, and the other marks the end of the task. An example of the relationship between activities and events is shown in Figure 3­8 on page 98, which contains a plan for creating and analyzing a questionnaire. Project managers define all tasks and events, and estimate the time and cost of each task. Then they determine the order of the tasks, develop a work schedule, and assign tasks to specific members of the project team. As the work is performed, the project manager leads and coordinates the team, monitors events, and reports on progress. (Page 98) 3. What specific information do you need to create a work breakdown structure? A work breakdown structure (WBS) involves breaking a project down into a series of smaller tasks. 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. Tasks are basic units of work that the project manager plans, schedules, and monitors — so they should be relatively small and manageable. To create a WBS, you must list the tasks, number them, and create a table, similar to Systems Analysis and Design, Tenth Edition Page 2 of 27 the one shown in Figure 3­10, with columns for task number, description, duration, and predecessor tasks. (Page 99) 4. What are the three main task patterns? Provide an example of each. 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. 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 prior tasks are completed. In a relay race, each runner is dependent on the preceding runner and cannot start until the earlier runner finishes. (Pages 102 ­ 105) 5. Explain the differences between a Gantt chart and a PERT/CPM chart. A Gantt chart is a horizontal bar chart that represents a schedule. In a Gantt chart, time is displayed on the horizontal axis and the activities are arranged vertically, from top to bottom, in the order of their start dates. The chart contains a horizontal bar for each task or group of tasks. The horizontal position of each bar shows the start and end of the activity, and the length of the bar indicates its duration. A Gantt chart can be used to report the status of a project by showing a comparison of scheduled progress for a task against actual progress for that task. Using various graphic techniques, as shown in Figure 3­6 on page 104, a Gantt chart can show the amount of work completed versus the amount of work not yet finished. Although Gantt charts present a clear picture of project status, they are not an ideal tool for project control because they do not show task dependencies. Therefore, you cannot determine the impact on the entire project caused by a single task that falls behind schedule. Also, a Gantt chart shows the time span, but not the specific number of hours or person­days, required. A PERT/CPM chart shows a project as a network diagram. Traditionally, the activities are shown as vectors, or lines, and the events are displayed as circular or rectangular nodes. Vectors on a PERT/CPM chart show task dependencies, but they do not indicate the duration of the activities they represent. Instead, the estimated duration of the activity appears below the vector. PERT/CPM charts also use a dashed vector line to represent a dummy activity, which indicates an event dependency, but does not require any resources or completion time. One advantage of PERT/CPM charts is that, unlike Gantt charts, all tasks and dependencies are shown, and PERT/CPM charts can be used for scheduling, monitoring, and controlling projects. PERT/CPM charts can be rather complicated, however, especially for larger projects. Also, the overall picture presented by a PERT/CPM chart is not as clear as a Gantt chart, which graphically displays the timing and duration of the Systems Analysis and Design, Tenth Edition Page 3 of 27 activities. (Pages 96 – 97) 6. What formula can a project manager use to estimate task duration? Provide an example. PERT/CPM techniques use a weighted formula for estimating the duration of each activity. The project manager first makes three time estimates for each activity: an optimistic, or best­case, estimate (B); a probable­case estimate (P); and a pessimistic, or worst­case, estimate (W). The manager then assigns an importance value to each estimate and calculates a weighted average. The weight can vary, but a common approach is to use a ratio of B=1, P=4, and W=1. The expected activity duration then is calculated as: (B + 4P + W) / 6 (Pages 99 – 100) 7. What is a common problem in calculating start and finish times? Provide an example. 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 5 day duration, then the task would finish on Day 14 – not Day 15. (Page 103) 8. Why is the critical path important? Why would a task be on the critical path? A critical path is a series of tasks which, if delayed, would affect the final completion date of the overall project. In other words, tasks on the critical path have no slack time. Slack time is the amount of time that the task could be late without pushing back the completion date of the entire project. (Pages 106 ­ 107) 9. Why is it important to deliver effective project reports and communications? Members of the project team regularly report their progress to the project manager, who in turn reports to management and users. Although team members constantly use e­mail to communicate, most project managers schedule regular status meetings with the entire project team. At those meetings, each team member updates the group and identifies any problems or delays. Although meetings can be time­consuming, most project managers believe it is worth the effort. The sessions give team members an opportunity to share information, discuss common problems, explain new techniques, and offer comments that can be extremely valuable to team members working on other areas of the project. The meetings also give the project manager an opportunity to update the entire group, seek input, and conduct brainstorming sessions. 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. (Pages 108 ­ 109) 10. What is risk management, and why is it important? Provide an example. 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. Three important steps in risk management are: • 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 Systems Analysis and Design, Tenth Edition Page 4 of 27 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 two­step 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 two­axis grid. For example, a Microsoft Excel XY chart can be used to display the matrix, as shown in Figure 3­33 on page 116. 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. (Pages 115 ­ 117) 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. Suggest to students that this can be seen as a simple set of dependent tasks, or events. You might even give them some task durations and ask them to draw a PERT chart that shows the critical path. A PERT approach forces people to ask the right questions. For example, the obvious question would be “What might happen if we have a problem with a horseshoe nail?” Benjamin Franklin used an interesting analogy to show that a relatively small event can have enormous consequences that might not be immediately obvious. 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? Students might suggest a cost­benefit analysis, similar to the financial analysis they do in a preliminary investigation or at other points in the SDLC. All three financial analysis tools (payback, return on investment, and net present value) would be applicable to a software purchase. The most difficult part would be estimating the anticipated benefits. Another interesting issue might be to ask students to agree or disagree with the notion that an investment can be similar to an insurance policy — it really doesn’t produce tangible benefits, but it prevents losses that might occur in its absence. 3. Suppose you want to manage a relatively small project, but you have no access to project management software of any kind. Could you use a spreadsheet program or a database program instead? How? This task has considerable room for creativity. Using spreadsheet cells as a grid, and using the built­in drawing tools to add arrows, you could produce figures similar to Figure 3­13, 3­15, 3­16, 3­17, and so on. Once you had arranged the logic properly, you could make your calculations manually, or perhaps devise a formula that would take the content of a Start cell, add the Duration cell, and display the results in the Finish cell. For multiple tasks, you might use a logical function that examines multiple predecessor tasks and uses Systems Analysis and Design, Tenth Edition Page 5 of 27 the proper value. Using a database, you could create a table that contained all of the tasks, with fields for Task ID, Start, Duration, and Finish. You also could include fields for predecessor tasks, similar to the table shown in Figure 3­25 on page 116. To get the task list into logical order, you might be able to use a query that sorts the tasks in ascending order on the predecessor task field. The real challenge would be to produce a graphical representation of the results. Systems Analysis and Design, Tenth Edition Page 6 of 27 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? According to Webster's dictionary, “intuition” is defined as the “immediate knowing or learning of something without the conscious use of reasoning.” In a relatively simple project, a manager might develop a “feel” for how things are going, especially if this is a project that has been performed before. In a complex project with hundreds or thousands of tasks, however, it is hard to imagine using intuition instead of a rational management process. Even so, some people do seem to have an uncanny ability to sense that something might be wrong and investigate, when others might not react. In such cases, what is the intuition? Is it project management intuition or, more likely, intuition about how people are behaving? This might be an interesting topic to discuss in class. 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. Answers will vary. It would be interesting to allow students to share their responses and critique each other’s work. The important objective is to demonstrate an understanding of Gantt chart concepts and techniques explained in the textbook. 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. The chapter points out that every IT project involves risks that systems analysts and IT project managers must address. A risk is an event that could affect the project negatively. Risk management is the process of identifying, evaluating, tracking, and controlling risks to minimize their impact. An Internet search should produce numerous articles, Web sites, and information about risk management. The book by DeMarco and Lister is especially interesting to an IT student. According to the publisher, “by ignoring the threat of negative outcomes—in the name of positive thinking or a can-do attitude—software managers drive their organizations into the ground.” The publisher claims that in this book, the authors show readers how to identify and embrace worthwhile risks. Developers are then set free to push the limits. 3. Go to Microsoft’s Web site and navigate to the Download and Trials area. Select the Microsoft Project Professional 2010, download the program, and install it. Then create a project based on the five tasks shown in Figure 3­21 on page 106. When the project is complete, click View, then click Network Diagram. Do the tasks resemble Figure 3­21 on page 106? Is the critical path the same? This project will be a significant challenge. The instructor might consider doing it as a demo for the class, or assigning it to student teams. Depending on the timing, the instructor might be able to use the software for most of the semester, and create other hands-on tasks and assignments for students that will give them practical experience with this software, which is the standard of the industry. 4. Describe three personal experiences where a project management approach would have been helpful. Answers will vary. It would be interesting to ask students to share their experiences with Systems Analysis and Design, Tenth Edition Page 7 of 27 the class and see how many of the experiences are unique, and how many were shared by one or more students. The objective is to emphasize the important role project management can play in personal, as well as business life. 4.