Project Management - BSC Final

INTERNATIONAL COLLEGE OF BUSINESS & TECHNOLOGY Colombo, Sri Lanka
A SUITABLE INFORMATION SYSTEMS PROJECT FOR ECOM TECHNOLOGY LANKA (PVT) LTD
AN ASSIGNMENT SUBMITTED TO ICBT/UWIC AND TO ROSHINI GUNAWARDARA (MODULE TUTOR) IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE SUBJECT OF INFORMATION SYSTEMS PROJECT MANAGEMENT
BY ERANGA DISSANAYAKA BSC (HONS) IN SOFTWARE DEVELOPMENT STUDENT ID: 10007933 COLOMBO, SRI LANKA NOVEMBER, 2011
A Suitable Information Systems Project for Ecom Technology Lanka (Pvt) Ltd
Acknowledgments
I would like to express my deepest gratitude and warmest appreciation to the following people, who, in any way have contributed and inspired me to the overall success of the undertaking:
To Ms. Roshini Gunawardana, the module tutor for her guidance and priceless support she provided me during my studies to fully understand of theories.
To my friends, who have been unselfishly gave their support to gather information.
And to the Almighty God, who always leads me to the success and never let me down.
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Table of Contents
Acknowledgments..........................................................................................................ii Introduction .................................................................................................................... v Selected Organisation ................................................................................................... vi Proposed Information System Projects ......................................................................... vi 1. SWOT Analysis ......................................................................................................... 1 1.1 Analyses the Proposed Projects ........................................................................... 1 2. Project Appraisal and Selection ................................................................................. 4 2.1 Non Financial Appraisal ...................................................................................... 4 2.1.1 Key-factors .................................................................................................... 4 2.1.2 Scoring of Key-factors .................................................................................. 5 2.1.3 Explanation of the Scores ............................................................................. 5 2.2 Financial Appraisal .............................................................................................. 7 2.2.1 Net Present Value (NPV) .............................................................................. 7 2.2.2 Return on Investment (ROI) ......................................................................... 8 3. Stakeholder Analysis ................................................................................................. 9 3.1 Methodology ........................................................................................................ 9 3.2 Identified Stakeholders ........................................................................................ 9 3.3 Stakeholder Analysis Report.............................................................................. 10 3.4 Project Organisation Chart ................................................................................. 12 4. Project Plan .............................................................................................................. 13 4.1 Project Charter ................................................................................................... 13 4.2 Work Breakdown Structure ............................................................................... 14 4.2.1 WBS Definition .......................................................................................... 14 4.3 Responsibility Assignment Matrix .................................................................... 16 4.4 Communication Management Plan .................................................................... 18 4.4.1 Stakeholder Groups ..................................................................................... 19 iii
4.4.2 Communications Matrix ............................................................................. 19 4.5 Project Budget and Cost Plan ............................................................................ 21 4.6 Risk Management Plan ...................................................................................... 22 4.6.1 Risk Responsibilities ................................................................................... 23 4.6.2 Probability of Occurrence (Po) ................................................................... 24 4.6.3 Risk Impact (I) ............................................................................................ 24 4.6.4 Risk Management Matrix and Strategy ...................................................... 25 5. Microsoft Project Planning ...................................................................................... 26 6. Software Crisis ......................................................................................................... 26 6.1 Recommendations .............................................................................................. 27 Project Glossary ........................................................................................................... 29 References .................................................................................................................... 30 Appendix I ................................................................................................................... 31 Cost Estimation Facts .............................................................................................. 31 Appendix II .................................................................................................................. 32 WBS Tasks............................................................................................................... 32 Appendix III ................................................................................................................. 34 Risk Context............................................................................................................. 34 Appendix IV................................................................................................................. 35 Project Information Window ................................................................................... 35 Resource Sheet ......................................................................................................... 35 Gantt Chart ............................................................................................................... 35
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Introduction
Information system is a collaboration of information technology and human activities that support management, operations, and decision making. We are in era of where information systems are involving in most activities and equipments. During the past decade IS became more comprehensive and complex due to increasing of requirements of humans nevertheless IS should be more accurate and must meet the user requirement to be a successful system. Activity of building a IS called project and it is typically defined as a collaborative enterprise or design, that is carefully planned to achieve a particular aim. A project must be well planned to achieve its objectives and this is the reason where Project Management (PM) coming to the picture.
Project management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end (usually time-constrained, and often constrained by funding or deliverables), undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value.
This document will demonstrate how to choose a suitable, important and project to an organization and will discuss about important project management techniques and documents as well.
Selected Organisation
There are hundreds of IT firms in Sri Lanka and I chosen Ecom Technology Lanka (Pvt) Ltd to propose new IS projects to complete this assignment.
E-com Technology Lanka is a web application development firm based in Colombo which engaged in web design & development, hosting and domain name registration. Also they provide various web based advertising systems. It is a well established and very competitive organization which always uses latest technology to deliver their products.
Proposed Information System Projects

I have identified two potential and relevant IS projects which are perfectly meet the context and the nature of the business of Ecom.
The first one is a domain management application to organise and manage all of their registered domain names and hosting services. This particular application will provide following services.
Automated domain/hosting renewal notices Electronic Invoices SMS Notifications for domain expirations Customer information management Expiration indication services
The second project is based on advertising system which provides the following features.
SMS advertising campaigns Email adverting Group SMS services for internal staff vi
1. SWOT Analysis
SWOT analysis is highly helpful for an organisation to identify the most suitable, important and potential projects.
Figure 1.1 SWOT Analysis Matrix
1.1 Analyses the Proposed Projects
Following is the SWOT analysis performed for Ecom. Strengths: Latest technology Ecom uses latest web development and hosting technologies including Ajax, Java Scripts, PHP with OOP methods and Wordpress, Drupal and Joomla hosting. Ecom has an ability of providing an unlimited Hosting space and email accounts. Professional web designers and developers. High quality products and good services. Competitive price range. Ecoms clientele consisting of well established organizations and large no of customers.
Weaknesses: Lack of experience and human resource in marketing. Ecom is located out from Colombo and this will be a disadvantage to reach to new customers. Lack of finance. Ecom has a limited staff. Underperformances of employees
Opportunities: Spread business to international market. Redesign web sites according to new web standards. Introduce new security systems and effective database environment.
Threats: There are many web designing companies in Sri Lanka and the competition is high. Prices between Ecom and competitors. Build relationship with customers. Legislation and ICT regulations. Different technology changes and latest technologies. Competitors can make good offers to Ecoms employees and they may leave the company.
Above SWOT study is very important when selecting the most effective project. Lets see how we can obtain advantages from these facts in each proposed projects.
Selected Project Domain management Application Project Strengths:
SWOT Relevance
All the facts gathered from SWOT analysis are relevant to this particular project. But specially the last fact i.e. large no of clients is the most important fact to choose this project.
Weaknesses: Since Ecom has a limited staff it is very useful to have this kind of a system. Also Ecom has a limited finance and this system will save huge amount of money by reducing the telephone and postal expenses.
Threats:
Since the competition is high Ecom can protect their customer base by ensuring a high quality service and maintaining an attractive relationship. Advertising Application Project Strengths: All the facts gathered from SWOT analysis are relevant to this particular project too. Weaknesses: In our SWOT analysis we could find the Ecom has less experience and human resource in marketing. Also Ecom has not located in commercial area. This will be highly effects on finding new clients. Opportunities: With this solution Ecom can introduce new technology to existing and new clients. Also Ecom gets opportunity to spread their business to international market.
Threats:
To face to the high competition Ecom can use this application to deliver effective messages to customers.
Table 1.1 SWOT study and relevance to projects
When evaluating all the assumptions and facts which illustrate in table 1.1 and also not in the table but we gathered from the SWOT study. Both the projects are equally helps to Ecom to continue their business with more strength but when we look in to customer base and the limited staff the Domain management application will be more suitable for Ecom and will help Ecom to avoid lot of weaknesses although when we compare the opportunities the Advertising project is more giving more advantages to Ecom. Both the projects will equally help to avoid threats.
Also when we take the huge weakness of lack of funds in this organisation it is not possible to invest for a project by taking a risk. Development cost for both projects will be equal but the operational cost of Advertising project is considerably too high. Because it is sends huge no of SMS messages. We can think about the future opportunities and say that we can use the advertising application to provide a service to the third party clients but the problem is we cannot assure that we can promote this application to clients.
After evaluating all the above discussed factors we can identify the Domain management Application is the most suitable and potential project to this organisation and will further discuss about the this particular project.
2. Project Appraisal and Selection

2.1 Non Financial Appraisal
Non-financial factors are really important when you are selecting a potential project to an organisation.
2.1.1 Key-factors Following are the key factors and weightings for these proposed projects.
Key factors Organisation requirement Appropriateness of the designs and layout Optimality of scale of operations Feasibility and speed of Implementation Strategic Value Accessibility Total
Weighting 20 15 15 20 15 15 100
Table 2.1.1 Key factors for non financial appraisal 4
2.1.2 Scoring of Key-factors
Now will score the each factor for both projects using the maximum score value is 10.
Domain management Application Weight Key-factor Weight Score x Score Organisation requirement Appropriateness of the designs and layout Optimality of scale of operations Feasibility and speed of Implementation Strategic Value Accessibility Total Rank 20 15 15 20 15 15 100 10 10 8 10 10 8 200 150 120 200 150 120 940 1
Advertising System Weight Score x Score 5 10 3 8 10 10 100 150 45 160 150 150 755 2
Table 2.1.2 Scoring of factors
2.1.3 Explanation of the Scores
Organisation requirement Project Domain management Application Score 10 Explanation Ecom has a huge problem of limited staff and they have a high requirement of such a system to manage their work. Advertising System 5 Ecom has a requirement of an advertising system but at this moment they just need to serve their existing customers well.
Appropriateness of the designs and layout Project Domain management Application Advertising System Optimality of scale of operations Project Domain management Application Score 8 Explanation This project will help Ecom to optimise their current operations by managing its whole process. Advertising System 3 Project will be helpful to send messages to clients but may not involve highly in current processes. Feasibility and speed of Implementation Project Domain management Application Score 10 Explanation Capital investment is low No impact on current business process. Advertising System 8 Little capital investment required due to requirement of high end equipments. No impact on current business process Strategic Value Project Domain management Application Score 10 Explanation Project will help to improve the services and processes of the company. It will provide a best service to their existing clients. Advertising System 10 Project will help to improve their marketing strategy and improve their clientele. Accessibility Project Domain management Application Score 8 Explanation This system is almost 75% automated and user doesnt have much control. Advertising System 10 There is a high accessibility for user and user has the power of controlling all the features of the system. Score 10 10 Explanation For both of the projects it is appropriates a good design and layouts.
Table 2.1.3 Explanation of scores 6
2.2 Financial Appraisal
Costs and profits of 5 years for each project are displayed in table 2.2.1. All the figures are displayed in Sri Lanka Rupees (LKR). For more details about the figures of this table please see appendix 01.
Domain Management Application Year 0 1 2 3 4 5 Cost 400,000 50,000 60,000 75,000 90,000 120,000 Profits 350,000 396,000 442,000 488,000 534,000
Advertising System Cost 500,000 340,000 360,000 380,000 400,000 420,000 Profits 454,000 616,000 726,000 936,000 1,096,000
Table 2.2.1 The annual estimated costs and benefits for the projects
2.2.1 Net Present Value (NPV)
Year 0 1 2 3 4 5 Total
Cost (LKR) 400,000 50,000 60,000 75,000 90,000 120,000 795,000
Profits (LKR) 350,000 396,000 442,000 488,000 534,000 2,210,000
DF (10%) 1.00000 0.90909 0.82645 0.75131 0.68301 0.62092
D Cost 400,000.00 45,454.50 49,587.00 56,348.25 61,470.90 74,510.40 687,371.05
D Profit 318,181.50 327,274.20 332,079.02 333,308.88 331,571.28 1,642,414.88
NPV (LKR) -400,000.00 272,727.00 277,687.20 275,730.77 271,837.98 257,060.88 955,043.83
Table 2.2.2 Domain Management Application project NPV at 10% discount rate.
Net Present Value of the Domain Management Application project = 955,043.83 LKR
Year 0 1 2 3 4 5 Total
Cost (LKR) 500,000 340,000 360,000 380,000 400,000 420,000 2,400,000
Profits (LKR) 454,000 616,000 726,000 936,000 1,096,000 3,828,000
DF (10%) 1.00000 0.90909 0.82645 0.75131 0.68301 0.62092
D Cost 500,000.00 309,090.60 297,522.00 285,497.80 273,204.00 260,786.40 1,926,100.80
D Profit 412,726.86 509,093.20 545,451.06 639,297.36 680,528.32 2,787,096.80
NPV (LKR) -500,000.00 103,636.26 211,571.20 259,953.26 366,093.36 419,741.92 860,996.00
Table 2.2.3 Advertising System project NPV at 10% discount rate.
Net Present Value of the Advertising System project = 860,996.00 LKR
2.2.2 Return on Investment (ROI)
ROI for the Domain Management Application project:
ROI
955,043.83 687,371.05
x 100
ROI
138.94 %
ROI for the Advertising System project:
ROI
860,996.00 1,926,100.80
x 100
ROI
44.70 %
ROI of the Domain Management Application project is 138.94% and the Advertising System project is 44.70%. These figures are providing a strong fact to the Ecom to identify the efficiency of the investment. Comparing with the Advertising System project the Domain Management Application project is more efficient.
Non-financial appraisal rated Domain Management Application project as number one. Ultimately both the financial and non-financial appraisals are proved that the Domain Management Application project is very efficient. Initial investment of this project is also less than the other project and more relevant and giving more benefits to the Ecom.
3. Stakeholder Analysis
3.1 Methodology
This analysis is based upon personal interviews, review of documents, workshop discussions, and information gathering from secondary sources. Also the stakeholder analysis observed the complexity and importance of stakeholders relations to the project. 3.2 Identified Stakeholders
End Users Sponsor Project Manager Project Team
Accounts Division Ramani Abeywickrema (Chairman/MD) Eranga Dissanayaka Suranga Herath, Udani Dissanayaka, Prasanga Karunanayake, Rasika Rajapakse
Hardware Vendor Software Vendor ISP
DMS Solutions E-W Information Systems Sri Lanka Telecom PLC
3.3 Stakeholder Analysis Report
Stakeholder Name Ramani Abeywickrema
Organisation
Role in Project
Unique Facts
Level of Interest
Level of Influence Very High
Comments
Sponsor
Project sponsor and the chairman Managing
Ph.D in management
Very High
Everyone depends on her
Keep update about the progress of the project
Eranga Dissanayaka
Well experienced person / one of the oldest employees. BSc (Hons) in SD Very High
Project Manager
company resources
High Decision maker
No comments
Better provide him Suranga Herath Project Team Senior developer Expert in Web based application development Medium High Very difficult to replace maximum support he needs to keep always happy. Udani Dissanayaka Prasanga Karunanayake Oldest and key employee. BSc (Hons) in IT. Very artistic and dynamic person. HND in Computing Very High High Principle / concept builder Low Low Without her we will lost without a concept
Project Team
Tech lead
Project Team
Graphics designer
Can be replaced anytime
Rasika Rajapakse Accounts Division
Project Team
QA Consultant
HND in Computing
Low
Low
Can be replaced anytime Need their involvement in high during the development process Need to give them enough time to deliver hardware products Need to give them enough time to deliver software products Not really need to worry. They are the ISP of the organisation.
End Users
Beta testers
Well experienced about the billing process Well known vendor and providing best support services Leading vendor of open source OS and other software
Very High
High experts in pricing policy Low many
DMS Solutions
Hardware Vendor
Supplies hardware instruments Supplies operating systems and other 3rd party software Internet service provider
Very High
vendors are available Low - many
E-W Information Systems Sri Lanka Telecom PLC
Software Vendor
Very High
vendors are available High wired ISP in the country
ISP
No.1 ISP all the time
High
Table 3.1 Stakeholder Analysis Report
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3.4 Project Organisation Chart
Sponsor
Project Manager
Graphic Designer
Tech Lead
Senior Developer
Hardware Vendor
QA Consultant
Software Vendor
Tech Lead
ISP
Figure 3.1 Project Organisation Chart
4. Project Plan
4.1 Project Charter
Project Title: Domain Management Application Project Start Date: November 25, 2011 Projected Finish Date: January 11, 2012
Project Manager: Eranga Dissanayaka, 0773670896, eranga@ecom.lk Budget Information: The organisation has allocated Rs. 400,000.00 for this project. Salaries of Programmers and purchasing the new server will be the major costs for this project. Objectives: Developing of the Domain Management Application will really helpful to Ecom Technology Lanka to keep tracking about the payment status of the each customer and product expirations. Also the application provides customer information recording feature and the payment history reports. Part of this application is automated and it will generate PDF format invoices and sends them to the customers. The application is automatically generate product expiration emails and send them to the customers. This project will help Ecom to reduce their work load of accounts division. Approach: Develop a customer management module to add information about every customer and it will help to find them easily in future. Domain management module is the main feature and it will keep track of all the domains and other products to indicate the expirations. Communicator module is sending expiration emails and SMS to customers.
Roles and Responsibilities: Name Ramani Abeywickrema Eranga Dissanayaka Suranga Herath Udani Dissanayaka Prasanga Karunanayake Rasika Rajapakse Accounts Division DMS Solutions E-W Information Systems Sri Lanka Telecom PLC Role Sponsor Project Manager Project Team Project Team Project Team Project Team End Users Hardware Vendor Software Vendor ISP Position Chairman Senior manager Senior developer Tech lead Graphics designer QA Consultant Beta testers Supplies hardware Supplies software Internet services Contact Details ramani@ecom.lk eranga@ecom.lk herath@ecom.lk udani@ecom.lk prasanga.k@ecom.lk rasika@ecom.lk accounts@ecom.lk sales@dms.lk sales@ewis.lk info@sltnet.lk
Prepared by: Eranga Dissanayaka (Project manager) Approved by: Ramani Abeywickrema (Chairman)
on: November 10,2011 on: November 20,2011
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4.2 Work Breakdown Structure
See WBS task list in appendix 02. 4.2.1 WBS Definition
WBS Code 1
Task Name Domain Manager Application Project
Description
1.1 1.1.1
Project management plan Draft project management plan Identify the proposed system, deliverables, WBS, timelines, resources, risks, & issues. After that draft the project management plan
1.1.2
Review project management plan
Review the project plan with the stakeholders to identify the missing areas & get their approval for it.
1.1.3
Incorporate changes to the project management plan if needed
Update the project management plan with the changes discussed & confirmed in the review meeting Send the updated plan & get the stakeholder's approval
1.1.4
Get the approval
1.1.5 1.2 1.2.1
Signed project management plan System Engineering Technical planning Planning the system for required hardware and software components
1.2.2
System requirement definition
Defining the hardware and software requirements.
1.3 1.3.1 1.3.1.1
Application Application design Application requirement specification Conduct interviews to gather the requirements for the system to be developed.
1.3.1.2
Application prototyping
Create the concept design as a prototype and get the approval
1.3.1.3
Application detail design
Design the principle concept
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1.3.2 1.3.2.1 1.3.2.2 1.3.2.3
Application build Database Design Coding Debugging Design the database and required tables. Start to coding the system components Debugging errors which are identified by testing process
1.3.3 1.3.3.1 1.3.3.2
Unit Testing Test planning Test case preparation Create a test plan to test each module. Preparation of test cases to start unit testing.
1.3.3.3 1.3.3.4
Test conduct Test records
Conducting the module wise testing Issue the test record for debugging process.
1.4 1.4.1
Hardware Requirements planning Planning to obtain require hardware components which defined in system requirements definition.
1.4.2
System definition
Define the absolute hardware infrastructure and system software.
1.4.3
Component selection
Select the required hardware/software components and order them from vendors.
1.4.4
Receiving Components
Receiving hardware/software components from vendors.
1.4.5
Component testing
Testing hardware components and system software.
1.5 1.5.1
System test Module testing After developing the system modules test them one by one.
1.5.2
Defect tracking
Tracking the defects occurred during the testing process for debugging.
1.6 1.6.1
Support service Configuration management Manage the configuration with new hardware and software. Then configure the application with system software and databases. Integrate the security options.
1.6.2
Quality assurance
Perform QA to ensure the quality and standards of the system.
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1.6.3
Technical team training
Training to the support team with test links to teach how to troubleshoot the system.
1.7 1.7.1
Implementation Planning Plan the system implementation with the account section.
1.7.2 1.7.3
Documentation User training
Create the detailed user manuals Train the users in account division with test links.
1.7.4
Installation management
Install the system in to organisation network.
1.7.5
Testing and verification
Test the system with user PCs and verify all the functionalities.
1.7.6
Performance monitoring
Monitor the system to track performance and security.
Table 4.2.2 WBS Definition
4.3 Responsibility Assignment Matrix
R Responsible A Accountable
C - Consulted I Informed
Project Team
Other Stakeholders
Senior Programmer
Graphic Designer
Code
Task Name
Software Vendor
Project Manager
WBS
Hardware Vendor
Tech Lead
End User
Sponsor
1.1.1 1.1.2
Draft project management plan Review project management plan
R A
A R
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ISP
QA
1.1.3 1.1.4 1.1.5 1.2.1 1.2.2 1.3.1.1 1.3.1.2 1.3.1.3 1.3.2.1 1.3.2.2 1.3.2.3 1.3.3.1 1.3.3.2 1.3.3.3 1.3.3.4 1.4.1 1.4.2 1.4.3 1.4.4 1.4.5 1.5.1 1.5.2 1.6.1 1.6.2 1.6.3 1.7.1 1.7.2
Incorporate changes Get the approval Signed project management plan Technical planning System requirement definition Requirement specification Application prototyping Application detail design Database Design Coding Debugging Test planning Test case preparation Test conduct Test records Hardware Requirements planning System definition Component selection Receiving Components Component testing Module testing Defect tracking Configuration management Quality assurance Technical team training Planning Documentation
R R A A A A A A I I I
I I R R R I I I R A A A I A
I I R I I R C I A R R C A C C I I R R R R I R R R R A I
A A A A I A
I R R R A R A A
I I I R R A I I I A R I C I R R R
I A A A R
R I R R C
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1.7.3 1.7.4 1.7.5 1.7.6
User training Installation management Testing and verification Performance monitoring
A I I A
R R A R I A R I
I I
C I
C I
C I
Table 4.3 - Responsibility Assignment Matrix (RAM)
4.4 Communication Management Plan
The Communication Management Plan identifies the formal communication methodology, protocols, and approach that will be employed to keep all stakeholders informed throughout the duration of the Domain Management Application Project.
The below table specifies the initial identified communications that should happens through the entire life cycle of the project & the purpose of it along with the stakeholders being informed or if it is a approval or feedback who provides it. This table will be updated when new communication requirement is needed or as and when it happens.
Planning and maintaining the communication plan provides the clear visibility of the project among all the stakeholders & this minimize the communication gaps, which ultimately results major risks/issues to the project later on. Since all the delays will be highlighted to all the stakeholders including the senior management, the task owners put more interest to finish their activities on time. Since everyone is kept informed about all the changes & the current status of the project, it will help to initiate immediate actions when there are risks or issues & it ultimately provides the project schedule to be completed.
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4.4.1 Stakeholder Groups
Project Team
Project manager, Tech Lead, Senior Software Engineer, Graphic Designer, QA
All Stakeholders
Project manager, Tech Lead, Senior Software Engineer, Graphic Designer, QA, Sponsor, Hardware vendor, Software vendor, ISP and end users
External Stakeholders Internal Stakeholders
Hardware vendor, Software vendor, ISP Project manager, Tech Lead, Senior Software Engineer, Graphic Designer, QA, Sponsor, and end users
Vendors
Hardware vendor, Software vendor
4.4.2 Communications Matrix
Description
Communication Item
Audience Project Team
Freque ncy Weekly (Friday)
Mediu m Meeting
Start on 25th Nov 2011
Project Status review Milestone Update meeting Project Progress Update (Completed work, Remaining work) Project Risks Project Issues Budget utilized Project Status Report Milestone Update Project Progress Update Project Risks Project Issues Review Project Management Plan Scope, Responsibilities, Deliverables, WBS, Cost, Schedule, Resources, Risks & Issues
Internal Stakeholders
Weekly (Tuesda y)
Meeting
29th Nov 2011 15th Nov 2011
One time
Meeting
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Incorporate changes & send amended project management plan to the Internal stakeholders to get their approval Review Technical Specification
Project Management Plan
One Time
Email
20th Nov 2011
Infrastructure & the system integration with new components.
Project Team
One Time
Meeting
28th Nov 2011 30th Nov 2011
Send amended project technical specification to the Internal stakeholders to get their approval.
Amended Technical Specification
One Time
Email
Review Technical Specification with external stakeholders
New system Integration with components.
External Stakeholders and Project Team
One Time
Meeting
2nd Dec 2011 5th Dec 2011 6th Dec 2011
Review & Finalize the Technical Specification Send RFQ to the hardware/software vendors
Incorporated changes to the technical specifications
One Time
Meeting
Specification of the devices and software Terms & conditions (The terms & conditions of the RFQ is covered under the already signed general agreement between the vendors & Ecom)
Vendors
One Time
Email
Issue PO to the hardware/software vendors
Vendors
One Time
Fax
12th Dec 2011
Table 4.4 - Communication Management Plan
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4.5 Project Budget and Cost Plan
Following budget provides the detail estimates for labor, material and other items for the duration of the project.
# Units /Hrs. WBS Items 1. Project management plan Draft project management plan Review project management plan Incorporate changes to the project management plan if needed 2. System Engineering Technical planning System requirement definition 3. Application Application design Application requirement specification Application prototyping Application detail design Application build Database Design Coding Debugging Unit Testing Test planning Test case preparation Test conduct Test records 4. Hardware Requirements planning System definition Component selection 8 4 4 8 4 16 8 5 40 16 8 20 16 14 5 8 2 1
Cost/Unit/ Hr.
Subtotals
WBS Level 2 Totals
Rs.3900 Rs.300 Rs.600 Rs.300 Rs.2400 Rs.1200 Rs.300
1.0%
Rs.11400 Rs.600 Rs.600 Rs.8400 Rs.3000 Rs.64400
3.1%
17.6%
Rs.650
Rs.10400
Rs.200 Rs.200
Rs.1600 Rs.4000
Rs.600 Rs.650 Rs.650
Rs.3000 Rs.26000 Rs.10400
Rs.250 Rs.250 Rs.250 Rs.250
Rs.2000 Rs.1000 Rs.4000 Rs.2000 Rs.206200 56.1%
Rs.600 Rs.600 Rs.600
Rs.4800 Rs.2400 Rs.2400
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Receiving Components New Server System Software (RHEL) New HSDPA modem Mobile Subscription Component testing 5. System test Module testing Defect tracking 6. Support service Configuration management Quality assurance Technical team training 7. Implementation Planning Documentation User training Installation management Testing and verification Performance monitoring Total Project Cost Estimate 8 24 24 8 16 24 Rs.600 Rs.300 Rs.600 Rs.600 Rs.250 Rs.600 Rs.4800 Rs.7200 Rs.14400 Rs.4800 Rs.4000 Rs.14400 Rs.367500 8 8 16 Rs.600 Rs.250 Rs.600 Rs.4800 Rs.2000 Rs.9600 Rs.49600 13.5% 16 8 Rs.650 Rs.650 Rs.10400 Rs.5200 Rs.16400 4.5% 8 1 1 1 Rs.180000 Rs.180000 Rs.3500 Rs.6500 Rs.2000 Rs.600 Rs.3500 Rs.6500 Rs.2000 Rs.4800 Rs.15600 4.2%
Table 4.5 Cost Estimate
4.6 Risk Management Plan
This Risk Management Plan (RMP) is the process of implementing realistic management of risks as part of the overall management of the Domain Management Application systems project. Risk management is a program management tool to assess and mitigate events that might adversely impact the program. Successful implementation of risk management will increase the programs likelihood of success. The RMP describes methods for identifying, analyzing, prioritizing, and tracking risk drivers; developing risk-handling plans; and planning for adequate resources to handle 22
risk. It assigns specific responsibilities for the management of risk and prescribes the documenting, monitoring, and reporting processes to be followed.
Figure 4.6 Risk management process
4.6.1 Risk Responsibilities
The risk managing responsibility is shared amongst all the stakeholders of this project. The following tables details specific responsibilities for the different aspects of risk management.
Risk Activity Risk identification Risk registry Risk assessment Risk statement Risk response Risk response approval Risk response management Risk reporting
Responsibility All stakeholders Project manager All stakeholders Project manager All stakeholders Sponsor/Chairman Project manager Project manager
Table 4.6.1 Risk responsibility assignment 23
4.6.2 Probability of Occurrence (Po)
The probability of occurrence ranges and definitions used for the Ecom project are given in the following table.
Probability Range 01 - 10 11 - 40 41 - 60 61 - 90 91 - 99
Interpretation Very unlikely to occur Unlikely to occur May occur about half of the time Likely to occur Very likely to occur
Table 4.6.2 - Probability of Occurrence (Po)
4.6.3 Risk Impact (I)
The risk impact categories and definitions used for the Ecom project are given in the following table.
Impact Category Critical (5) Definition An event that, if it occurred, would cause program failure (inability to achieve minimum acceptable requirements). An event that, if it occurred, would cause major cost/schedule increases. Secondary requirements may not be achieved. An event that, if it occurred, would cause moderate cost/schedule increases, but important requirements would still be met. An event that, if it occurred, would cause only a small cost/schedule increase. Requirements would still be achieved. An event that, if it occurred, would have no effect on the program.
Serious (4)
Moderate (3)
Minor (2)
Negligible (1)
Table 4.6.3 Risk Impact (I)
24
4.6.4 Risk Management Matrix and Strategy
Following risks are identified using the WBS and having few discussions with the project team.
Risk No. 1
Risk Project at not approve
I 5
Po % 5
Strategy Very low probability due to critical operation environment of the organisation. This application will be a very good investment.
Time estimation is inefficient
50
Must assign additional resources or try to adjust from other tasks
Unexpected scope extension
20
Critical analysis of the scope required for manage resources for the extension
Budget estimation is inefficient
60
Already approved some additional budget of Rs.32500.
Poor layout design
30
Have to work collaborated with the designer to get a well expected outcome.
Hardware may not available with vendor
10
There are many vendors for the same product line. Will not be a serious issue.
Code may content serious bug
15
Strongly advised the developers to follow the error handling and exception techniques within their codes.
Poor communication in team
20
Scheduled the project team meeting on every Friday.
Hardware conflict during the installation
35
Tech head is well experienced with similar kind of systems. He can always find a solution for issues.
10
Staff turnover
25
Trying to give maximum support to team members to motivate them.
11
Low performance of the team
30
Planed to arrange meeting with such a project members.
Table 4.6.4 Risk matrix and strategy
25
5. Microsoft Project Planning

See appendix 04.
6. Software Crisis
Software crisis is a term used to express the difficulty of correct and effecting software due to rapid development of software industry.
In early days of computer software projects there were a large number of defects due to unmanageable tasks. To prevent from these issues various development methodologies were introduced time to time. Fred Brooks (1986) was argument there is No Silver Bullet i.e. no single development in either technology or in management technique promises even one order of magnitude of improvement in productivity, reliable or simplicity
There are many reasons to occur software crisis. Project budget is inaccurate Project time frame is inefficient Deliverable is not meet the requirement Poor quality of the software Software program is inefficient Unmanageable and difficult to maintain Never signed off the project
There are many reasons that lead to software crisis Insufficient documentation Shortage of skilled people Poor productivity improvement
According to US government research about the software crisis, less than 5% of software could be used without making any changes. More than 95% of software had 26
issues and they were required changes or major rework. Some of them are delivered but cannot used whilst some are fully paid but never delivered.
Most of the issues are directly occurs due to mismanagement of the projects. Under estimation of budget, cost, time and poor communication is the main reasons for this crisis. Project manager must identify all these issues and must have knowledge to perform a good project plan with accurate budget, cost, time and rich communication matrix.
6.1 Recommendations
To overcome the issues of a software project it is a good practice to produce a very detail and realistic project management plan. Success of the project will almost depend on the project plan.
Better communication plan, well analyzed risk management plan, Quality management plan, realistic budget and cost management plan will widely helps project managers to drive their project to the doors of success. Work break down structure and organizational chart are another important feature of a project management plan. Also project manager must assign responsibilities to each member to void any misunderstandings of each member of the team.
The well analised risk management plan is an important document to identify potential risks with their probability of occurrence and how those will impact the project. With a probability/impact matrix project managers are able to find the level of each risk will effect on their project. It will help them to response those risks using response strategies. Maintaining a risk register is also very important to a project.
Project managers must be knowledgeable to make an accurate cost/budget plan to end up their project with success. They can use various estimation techniques like Analogy, Analysis effort, Delphi, CoCoMo or they can use their WBS to estimate the project costs.
27
Communication plan is helping to keep a good relationship between all the stakeholders during the project. Scheduling meetings to monitor the process and get decisions using brainstorming technique is very important. Also project managers can identify misunderstandings of task responsibilities during the meetings.
Underperformances of project members can be mitigate using various motivation theories.
There is another most important part is quality management. Project manager must assure the quality of the system before handover to the customer. Testing and preparing detail documentation will help to deliver a quality software program.
Good WBS is also helps project manager to break project work to small tasks and assign their team to each task. Gantt chart can be making with WBS to identify critical path and assign extra resources on it or break critical tasks in to small task and reschedule them. Milestone report is another outcome of a WBS.
All of these documents and techniques are really helps project managers to end up with a good project to mitigate software crisis. Also following a fine system development methodology is really helpful. Project managers know there are no 100% successful projects but they can fight against the software crisis with a perfect project management plan.
28
Project Glossary
IS PM Information Systems Project Management
SMS Short Message Service IT OOP ICT Information Technology Object Oriented Programming Information and Communication Technology
NPV Net Profit Value MD SD OS ISP PLC QA Managing Director Senior Developer Operating System Internet Service Provider Public Limited Company Quality Assurance
WBS Work Breakdown Structure RFQ PO I Request for Quotation Probability Impact
RMP Risk management Plan
29
References
O'Brien, J A., Introduction to information systems: essentials for the ebusiness enterprise. McGraw-Hill: 2003, Boston, MA. A Guide to the Project Management Body of Knowledge (PMBOK Guide), 3rd Ed, Project Management Institute. Nokes, Sebastian., The Definitive Guide to Project Management. 2nd Ed. London: Financial Times / Prentice Hall: 2007. ISBN 978 0 273 71097 4. Lewis R., Project Management. Ireland: McGraw-Hill Professional: 2006. ISBN 0-07-147160-X. p.110. Joseph Phillips., PMP Project Management Professional Study Guide. McGraw-Hill Professional: 2003. ISBN 0-07-223062-2. p.354. David I. Cleland, Roland Gareis., Global project management handbook. Chapter 1: "The evolution of project management". McGraw-Hill Professional: 2006. ISBN 0-07-146045-4. Hill, T. & R. Westbrook., Long Range Planning. "SWOT Analysis: Its Time for a Product Recall". p.4652. Haugan, Gregory T., The Work Breakdown Structure in Government Contracting, Management Concepts, 2003 ISBN 978-1567261202. Practice Standard for Work Breakdown Structures., Project Management Institute, 2nd Ed. ISBN 1933890134, p.8.
Crockford, Neil., An Introduction to Risk Management., 2nd Ed. Cambridge,

UK: Woodhead-Faulkner: 1986. ISBN 0859413322. p. 18.
30
Appendix I
Cost Estimation Facts
The annual estimated costs and benefits details for the projects as Table 2.2.1. Since the Domain management Application is automated company can release from computer operators salary. Fro Advertising System, company can save advertising cost and sales persons salary although company has to put a new computer operator to operate this advertising system. Salaries are increasing annually by 3,000 LKR.
Domain management Application Year 0 Cost Development cost + Equipment charges 1 Hosting/Email and SMS charges 25,000 of computer operators salary + postage and telephone charges. 2 Hosting/Email and SMS charges 28,000 of computer operators salary + postage and telephone charges. 3 Hosting/Email and SMS charges 31,000 of computer operators salary + postage and telephone charges. 4 Hosting/Email and SMS charges 34,000 of computer operators salary + postage and telephone charges. 5 Hosting/Email and SMS charges 37,000 of computer operators salary + postage and telephone charges. Profits
Advertising System Cost - Development cost + Equipment charges Computer operators salary + Hosting/Email and SMS charges Computer operators salary + Hosting/Email and SMS charges Computer operators salary + Hosting/Email and SMS charges Computer Marketing persons salary + Advertising charges Marketing persons salary Advertising charges Marketing persons salary Advertising charges Marketing persons + + + Profits -
operators salary salary + Hosting/Email Advertising and SMS charges Computer charges
Marketing persons +
operators salary salary + Hosting/Email Advertising and SMS charges charges
31
Appendix II
WBS Tasks
WBS Code 1 1.1 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.2 1.2.1 1.2.2 1.3 1.3.1 1.3.1.1 1.3.1.2 1.3.1.3 1.3.2 1.3.2.1 1.3.2.2 1.3.2.3 1.3.3 1.3.3.1 1.3.3.2 1.3.3.3 1.3.3.4 1.4 1.4.1 1.4.2 1.4.3 1.4.4
Task Name Domain Manager Application Project Project management plan Draft project management plan Review project management plan Incorporate changes to the project management plan if needed Get the approval Signed project management plan System Engineering Technical planning System requirement definition Application Application design Application requirement specification Application prototyping Application detail design Application build Database Design Coding Debugging Unit Testing Test planning Test case preparation Test conduct Test records Hardware Requirements planning System definition Component selection Receiving Components
32
1.4.5 1.5 1.5.1 1.5.2 1.6 1.6.1 1.6.2 1.6.3 1.7 1.7.1 1.7.2 1.7.3 1.7.4 1.7.5 1.7.6
Component testing System test Module testing Defect tracking Support service Configuration management Quality assurance Technical team training Implementation Planning Documentation User training Installation management Testing and verification Performance monitoring
33
Appendix III
Risk Context
Date Identified: Probability of Risk: (%)
Impact to Critical Path: Impact to Project:
Yes
No
(1=low, 5=high)
Impact Start Date: Responsible Person: Program Area: Affected Project Phase: Risk Areas: Cost, Describe: Schedule, Describe: Performance, Describe: Other, Describe: Risk Control: Current Status: Internal, External, or
Impact End Date:
Internal & External
Candidate Risk
34
Appendix IV
Project Information Window
Resource Sheet
Gantt Chart
35

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INTERNATIONAL COLLEGE OF BUSINESS & TECHNOLOGY Colombo, Sri Lanka

Proposed Information System Projects

Figure 1.1 SWOT Analysis Matrix

1.1 Analyses the Proposed Projects

Selected Project Domain management Application Project Strengths:

Table 1.1 SWOT study and relevance to projects

2. Project Appraisal and Selection

Table 2.1.1 Key factors for non financial appraisal 4

2.1.2 Scoring of Key-factors

Table 2.1.2 Scoring of factors

2.1.3 Explanation of the Scores

Table 2.1.3 Explanation of scores 6

2.2 Financial Appraisal

2.2.1 Net Present Value (NPV)

Cost (LKR) 400,000 50,000 60,000 75,000 90,000 120,000 795,000

Profits (LKR) 350,000 396,000 442,000 488,000 534,000 2,210,000

DF (10%) 1.00000 0.90909 0.82645 0.75131 0.68301 0.62092

D Cost 400,000.00 45,454.50 49,587.00 56,348.25 61,470.90 74,510.40 687,371.05

D Profit 318,181.50 327,274.20 332,079.02 333,308.88 331,571.28 1,642,414.88

NPV (LKR) -400,000.00 272,727.00 277,687.20 275,730.77 271,837.98 257,060.88 955,043.83

Cost (LKR) 500,000 340,000 360,000 380,000 400,000 420,000 2,400,000

Profits (LKR) 454,000 616,000 726,000 936,000 1,096,000 3,828,000

DF (10%) 1.00000 0.90909 0.82645 0.75131 0.68301 0.62092

D Cost 500,000.00 309,090.60 297,522.00 285,497.80 273,204.00 260,786.40 1,926,100.80

D Profit 412,726.86 509,093.20 545,451.06 639,297.36 680,528.32 2,787,096.80

NPV (LKR) -500,000.00 103,636.26 211,571.20 259,953.26 366,093.36 419,741.92 860,996.00

Table 2.2.3 Advertising System project NPV at 10% discount rate.

Net Present Value of the Advertising System project = 860,996.00 LKR

2.2.2 Return on Investment (ROI)

ROI for the Domain Management Application project:

ROI for the Advertising System project:

End Users Sponsor Project Manager Project Team

Hardware Vendor Software Vendor ISP

DMS Solutions E-W Information Systems Sri Lanka Telecom PLC

3.3 Stakeholder Analysis Report

Stakeholder Name Ramani Abeywickrema

Level of Influence Very High

Project sponsor and the chairman Managing

Everyone depends on her

Keep update about the progress of the project

High Decision maker

Can be replaced anytime

Rasika Rajapakse Accounts Division

High experts in pricing policy Low many

vendors are available Low - many

E-W Information Systems Sri Lanka Telecom PLC

vendors are available High wired ISP in the country

No.1 ISP all the time

Table 3.1 Stakeholder Analysis Report

3.4 Project Organisation Chart

Figure 3.1 Project Organisation Chart

on: November 10,2011 on: November 20,2011

4.2 Work Breakdown Structure

See WBS task list in appendix 02. 4.2.1 WBS Definition

Task Name Domain Manager Application Project

Review project management plan

Incorporate changes to the project management plan if needed

Get the approval

1.1.5 1.2 1.2.1

System requirement definition

Defining the hardware and software requirements.

1.3 1.3.1 1.3.1.1