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

ii

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.


iii

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


iv

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


v

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.


vi

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

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.

• Ecom’s clientele consisting of well established organizations and large no of

customers.


2

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 Ecom’s employees and they may leave

the company.

Above SWOT study is very important when selecting the most effective project. Let’s

see how we can obtain advantages from these facts in each proposed projects.

Selected Project SWOT Relevance

Domain management

Application Project

Strengths:

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.


3

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.


4

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 Weighting

Organisation requirement 20

Appropriateness of the designs and layout 15

Optimality of scale of operations 15

Feasibility and speed of Implementation 20

Strategic Value 15

Accessibility 15

Total 100

Table 2.1.1 – Key factors for non financial appraisal


5

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

Advertising

System

Key-factor Weight Score

Weight

x

Score

Score

Weight

x

Score

Organisation requirement 20 10 200 5 100

Appropriateness of the designs

and layout 15 10 150 10 150

Optimality of scale of operations 15 8 120 3 45

Feasibility and speed of

Implementation 20 10 200 8 160

Strategic Value 15 10 150 10 150

Accessibility 15 8 120 10 150

Total 100 940 755

Rank 1 2

Table 2.1.2 – Scoring of factors

2.1.3 Explanation of the Scores

Organisation requirement

Project Score Explanation

Domain management Application 10 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.


6

Appropriateness of the designs and layout


Domain management Application 10 For both of the projects it is appropriates a

good design and layouts. Advertising System 10

Optimality of scale of operations


Domain management Application 8 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


Domain management Application 10 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


Domain management Application 10 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


Domain management Application 8 This system is almost 75% automated and

user doesn’t 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.

Table 2.1.3 – Explanation of scores


7

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 Advertising System

Year Cost Profits Cost Profits

0 400,000 - 500,000 -

1 50,000 350,000 340,000 454,000

2 60,000 396,000 360,000 616,000

3 75,000 442,000 380,000 726,000

4 90,000 488,000 400,000 936,000

5 120,000 534,000 420,000 1,096,000

Table 2.2.1 – The annual estimated costs and benefits for the projects

2.2.1 Net Present Value (NPV)

Year Cost

(LKR)

Profits

(LKR)

DF

(10%) D Cost D Profit NPV (LKR)

0 400,000 - 1.00000 400,000.00 - -400,000.00

1 50,000 350,000 0.90909 45,454.50 318,181.50 272,727.00

2 60,000 396,000 0.82645 49,587.00 327,274.20 277,687.20

3 75,000 442,000 0.75131 56,348.25 332,079.02 275,730.77

4 90,000 488,000 0.68301 61,470.90 333,308.88 271,837.98

5 120,000 534,000 0.62092 74,510.40 331,571.28 257,060.88

Total 795,000 2,210,000 687,371.05 1,642,414.88 955,043.83

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


8

Year Cost

(LKR)

Profits

(LKR)

DF

(10%) D Cost D Profit NPV (LKR)

0 500,000 - 1.00000 500,000.00 - -500,000.00

1 340,000 454,000 0.90909 309,090.60 412,726.86 103,636.26

2 360,000 616,000 0.82645 297,522.00 509,093.20 211,571.20

3 380,000 726,000 0.75131 285,497.80 545,451.06 259,953.26

4 400,000 936,000 0.68301 273,204.00 639,297.36 366,093.36

5 420,000 1,096,000 0.62092 260,786.40 680,528.32 419,741.92

Total 2,400,000 3,828,000 1,926,100.80 2,787,096.80 860,996.00

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 x 100

687,371.05

ROI = 138.94 %

ROI for the Advertising System project:

ROI = 860,996.00 x 100

1,926,100.80

ROI = 44.70 %


9

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 Accounts Division

Sponsor Ramani Abeywickrema (Chairman/MD)

Project Manager Eranga Dissanayaka

Project Team Suranga Herath, Udani Dissanayaka,

Prasanga Karunanayake, Rasika Rajapakse

Hardware Vendor DMS Solutions

Software Vendor E-W Information Systems

ISP Sri Lanka Telecom PLC

3.3 Stakeholder Analysis Report

Stakeholder

Name Organisation Role in Project Unique Facts

Level of

Interest Level of Influence Comments

Ramani

Abeywickrema Sponsor

Project sponsor

and the chairman Ph.D in management Very High

Very High –

Everyone depends

on her

Keep update about the

progress of the project

Eranga

Dissanayaka Project Manager

Managing

company

resources

Well experienced person /

one of the oldest employees.

BSc (Hons) in SD

Very High High – Decision

maker No comments

Suranga

Herath Project Team Senior developer

Expert in Web based

application development Medium

High – Very

difficult to replace

Better provide him

maximum support he

needs to keep always

happy.

Udani

Dissanayaka Project Team Tech lead

Oldest and key employee.

BSc (Hons) in IT. High

Very High –

Principle / concept

builder

Without her we will lost

without a concept

Prasanga

Karunanayake Project Team Graphics designer

Very artistic and dynamic

person. HND in Computing Low Low Can be replaced anytime


11

Rasika

Rajapakse Project Team QA Consultant HND in Computing Low Low Can be replaced anytime

Accounts

Division End Users Beta testers

Well experienced about the

billing process Very High

High – experts in

pricing policy

Need their involvement in

high during the

development process

DMS Solutions Hardware

Vendor

Supplies hardware

instruments

Well known vendor and

providing best support

services

Very High

Low – many

vendors are

available

Need to give them enough

time to deliver hardware

products

E-W

Information

Systems

Software

Vendor

Supplies operating

systems and other

3rd party software

Leading vendor of open

source OS and other

software

Very High

Low - many

vendors are

available

Need to give them enough

time to deliver software

products

Sri Lanka

Telecom PLC ISP

Internet service

provider No.1 ISP all the time High

High – wired ISP in

the country

Not really need to worry.

They are the ISP of the

organisation.

Table 3.1 – Stakeholder Analysis Report

3.4 Project Organisation Chart

Figure 3.1 – Project Organisation Chart

Sponsor

Project Manager

Graphic Designer Tech Lead

QA Consultant

Senior Developer

Tech Lead

Software Vendor

Hardware Vendor

ISP


13

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, [email protected]

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 Role Position Contact Details

Ramani Abeywickrema Sponsor Chairman [email protected]

Eranga Dissanayaka Project Manager Senior manager [email protected]

Suranga Herath Project Team Senior developer [email protected]

Udani Dissanayaka Project Team Tech lead [email protected]

Prasanga Karunanayake Project Team Graphics designer [email protected]

Rasika Rajapakse Project Team QA Consultant [email protected]

Accounts Division End Users Beta testers [email protected]

DMS Solutions Hardware Vendor Supplies hardware [email protected]

E-W Information Systems Software Vendor Supplies software [email protected]

Sri Lanka Telecom PLC ISP Internet services [email protected]

Prepared by: Eranga Dissanayaka (Project manager) on: November 10,2011

Approved by: Ramani Abeywickrema (Chairman) on: November 20,2011


14

4.2 Work Breakdown Structure

See WBS task list in appendix 02.

4.2.1 WBS Definition

WBS Code Task Name Description

1 Domain Manager Application

Project

1.1 Project management plan

1.1.1 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

1.1.4 Get the approval Send the updated plan & get the

stakeholder's approval

1.1.5 Signed project management plan

1.2 System Engineering

1.2.1 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 Application

1.3.1 Application design

1.3.1.1 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


15

1.3.2 Application build

1.3.2.1 Database Design Design the database and required tables.

1.3.2.2 Coding Start to coding the system components

1.3.2.3 Debugging Debugging errors which are identified by

testing process

1.3.3 Unit Testing

1.3.3.1 Test planning Create a test plan to test each module.

1.3.3.2 Test case preparation Preparation of test cases to start unit

testing.

1.3.3.3 Test conduct Conducting the module wise testing

1.3.3.4 Test records Issue the test record for debugging

process.

1.4 Hardware

1.4.1 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 System test

1.5.1 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 Support service

1.6.1 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.


16

1.6.3 Technical team training Training to the support team with test

links to teach how to troubleshoot the

system.

1.7 Implementation

1.7.1 Planning Plan the system implementation with the

account section.

1.7.2 Documentation Create the detailed user manuals

1.7.3 User training 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 PC’s 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 C - Consulted

A – Accountable I – Informed

WBS

Code Task Name

Project Team Other Stakeholders

Pro

ject

Man

ager

Tec

h L

ead

Seni

or P

rogr

amm

er

QA

Gra

phic

Des

igne

r

Spon

sor

End

Use

r

Har

dwar

e V

endo

r

Soft

war

e V

endo

r

ISP

1.1.1 Draft project management plan R A I

1.1.2 Review project management plan A R


17

1.1.3 Incorporate changes R I I

1.1.4 Get the approval R I I A

1.1.5 Signed project management plan A R R R R I

1.2.1 Technical planning A R I

1.2.2 System requirement definition A R I

1.3.1.1 Requirement specification A I R

1.3.1.2 Application prototyping A I C R

1.3.1.3 Application detail design A I I R

1.3.2.1 Database Design I R A

1.3.2.2 Coding I A R

1.3.2.3 Debugging I A R I

1.3.3.1 Test planning A C R

1.3.3.2 Test case preparation I A R

1.3.3.3 Test conduct A C R

1.3.3.4 Test records A I C R

1.4.1 Hardware Requirements planning A R I I

1.4.2 System definition A R

1.4.3 Component selection A R I

1.4.4 Receiving Components I A I I R R R

1.4.5 Component testing A R I

1.5.1 Module testing A R

1.5.2 Defect tracking A R

1.6.1 Configuration management I R A

1.6.2 Quality assurance A I I R

1.6.3 Technical team training A R I I C

1.7.1 Planning A R I

1.7.2 Documentation R C A


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1.7.3 User training A R I C

1.7.4 Installation management I R A

1.7.5 Testing and verification I A R I C C C

1.7.6 Performance monitoring A R I I I I I 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.


19

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 – Hardware vendor, Software vendor, ISP

Internal Stakeholders – 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 Freque

ncy

Mediu

m

Start

on

Project Status review

meeting

Milestone Update

Project Progress Update

(Completed work, Remaining

work)

Project Risks

Project Issues

Budget utilized

Project Team Weekly

(Friday)

Meeting

25th

Nov

2011

Project Status Report Milestone Update

Project Progress Update

Project Risks

Project Issues

Internal

Stakeholders

Weekly

(Tuesda

y)

Meeting

29th

Nov

2011

Review Project

Management Plan

Scope, Responsibilities,

Deliverables, WBS, Cost,

Schedule, Resources, Risks &

Issues

Internal

Stakeholders

One

time

Meeting

15th

Nov

2011


20

Incorporate changes

& send amended

project management

plan to the Internal

stakeholders to get

their approval

Project Management Plan Internal

Stakeholders

One

Time

Email 20th

Nov

2011

Review Technical

Specification

Infrastructure & the system

integration with new

components.

Project Team One

Time

Meeting

28th

Nov

2011

Send amended

project technical

specification to the

Internal stakeholders

to get their approval.

Amended Technical

Specification

Internal

Stakeholders

One

Time

Email

30th

Nov

2011

Review Technical

Specification with

external stakeholders

New system Integration with

components.

External

Stakeholders

and Project

Team

One

Time

Meeting

2nd

Dec

2011

Review & Finalize

the Technical

Specification

Incorporated changes to the

technical specifications

Internal

Stakeholders

One

Time

Meeting

5th

Dec

2011

Send RFQ to the

hardware/software

vendors

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 6th

Dec

2011

Issue PO to the

hardware/software

vendors

Vendors One

Time

Fax 12th

Dec

2011

Table 4.4 - Communication Management Plan


21

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.

Cost/Unit/

Hr. Subtotals

WBS Level

2 Totals %

WBS Items

1. Project management plan Rs.3900 1.0%

Draft project management plan 8 Rs.300 Rs.2400

Review project management plan 2 Rs.600 Rs.1200

Incorporate changes to the project

management plan if needed

1 Rs.300 Rs.300

2. System Engineering Rs.11400 3.1%

Technical planning 14 Rs.600 Rs.8400

System requirement definition 5 Rs.600 Rs.3000

3. Application Rs.64400 17.6%

Application design

Application requirement

specification

16 Rs.650 Rs.10400

Application prototyping 8 Rs.200 Rs.1600

Application detail design 20 Rs.200 Rs.4000

Application build

Database Design 5 Rs.600 Rs.3000

Coding 40 Rs.650 Rs.26000

Debugging 16 Rs.650 Rs.10400

Unit Testing

Test planning 8 Rs.250 Rs.2000

Test case preparation 4 Rs.250 Rs.1000

Test conduct 16 Rs.250 Rs.4000

Test records 8 Rs.250 Rs.2000

4. Hardware Rs.206200 56.1%

Requirements planning 8 Rs.600 Rs.4800

System definition 4 Rs.600 Rs.2400

Component selection 4 Rs.600 Rs.2400


22

Receiving Components

New Server 1 Rs.180000 Rs.180000

System Software (RHEL) 1 Rs.3500 Rs.3500

New HSDPA modem 1 Rs.6500 Rs.6500

Mobile Subscription Rs.2000 Rs.2000

Component testing 8 Rs.600 Rs.4800

5. System test Rs.15600 4.2%

Module testing 16 Rs.650 Rs.10400

Defect tracking 8 Rs.650 Rs.5200

6. Support service Rs.16400 4.5%

Configuration management 8 Rs.600 Rs.4800

Quality assurance 8 Rs.250 Rs.2000

Technical team training 16 Rs.600 Rs.9600

7. Implementation Rs.49600 13.5%

Planning 8 Rs.600 Rs.4800

Documentation 24 Rs.300 Rs.7200

User training 24 Rs.600 Rs.14400

Installation management 8 Rs.600 Rs.4800

Testing and verification 16 Rs.250 Rs.4000

Performance monitoring 24 Rs.600 Rs.14400

Total Project Cost

Estimate

Rs.367500

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 program’s 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


23

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 Responsibility

Risk identification All stakeholders

Risk registry Project manager

Risk assessment All stakeholders

Risk statement Project manager

Risk response All stakeholders

Risk response approval Sponsor/Chairman

Risk response management Project manager

Risk reporting Project manager

Table 4.6.1 – Risk responsibility assignment


24

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 Interpretation

01 - 10 Very unlikely to occur

11 - 40 Unlikely to occur

41 - 60 May occur about half of the time

61 - 90 Likely to occur

91 - 99 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 Definition

Critical (5) An event that, if it occurred, would cause program failure (inability to achieve minimum acceptable requirements).

Serious (4) An event that, if it occurred, would cause major cost/schedule increases. Secondary requirements may not be achieved.

Moderate (3) An event that, if it occurred, would cause moderate cost/schedule increases, but important requirements would still be met.

Minor (2) An event that, if it occurred, would cause only a small cost/schedule increase. Requirements would still be achieved.

Negligible (1) An event that, if it occurred, would have no effect on the program.

Table 4.6.3 – Risk Impact (I)


25

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. Risk I

Po

% Strategy

1 Project at not approve 5 5 Very low probability due to critical operation

environment of the organisation. This

application will be a very good investment.

2 Time estimation is

inefficient

4 50 Must assign additional resources or try to adjust

from other tasks

3 Unexpected scope

extension

4 20 Critical analysis of the scope required for

manage resources for the extension

4 Budget estimation is

inefficient

4 60 Already approved some additional budget of

Rs.32500.

5 Poor layout design 5 30 Have to work collaborated with the designer to

get a well expected outcome.

6 Hardware may not

available with vendor

1 10 There are many vendors for the same product

line. Will not be a serious issue.

7 Code may content

serious bug

5 15 Strongly advised the developers to follow the

error handling and exception techniques within

their codes.

8 Poor communication

in team

5 20 Scheduled the project team meeting on every

Friday.

9 Hardware conflict

during the installation

1 35 Tech head is well experienced with similar kind

of systems. He can always find a solution for

issues.

10 Staff turnover 3 25 Trying to give maximum support to team

members to motivate them.

11 Low performance of

the team

4 30 Planed to arrange meeting with such a project

members.

Table 4.6.4 – Risk matrix and strategy


26

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


27

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.


28

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.


29

Project Glossary

IS – Information Systems

PM – Project Management

SMS – Short Message Service

IT – Information Technology

OOP – Object Oriented Programming

ICT – Information and Communication Technology

NPV – Net Profit Value

MD – Managing Director

SD – Senior Developer

OS – Operating System

ISP – Internet Service Provider

PLC – Public Limited Company

QA – Quality Assurance

WBS – Work Breakdown Structure

RFQ – Request for Quotation

PO – Probability

I – Impact

RMP – Risk management Plan


30

References

• O'Brien, J A., Introduction to information systems: essentials for the e-business 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: It’s Time for a Product Recall". p.46–52.

• 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.


31

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 operator’s salary. Fro Advertising System, company can save advertising

cost and sales person’s 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 Advertising System

Year Cost Profits Cost Profits

0 Development cost

+ Equipment

charges

- Development

cost + Equipment

charges

-

1 Hosting/Email and

SMS charges

25,000 of computer

operator’s salary +

postage and

telephone charges.

Computer

operator’s salary

+ Hosting/Email

and SMS charges

Marketing person’s

salary +

Advertising

charges

2 Hosting/Email and

SMS charges

28,000 of computer


postage and

telephone charges.

Computer

operator’s salary

+ Hosting/Email

and SMS charges


salary +

Advertising

charges

3 Hosting/Email and

SMS charges

31,000 of computer


postage and

telephone charges.

Computer

operator’s salary

+ Hosting/Email

and SMS charges


salary +

Advertising

charges

4 Hosting/Email and

SMS charges

34,000 of computer


postage and

telephone charges.

Computer

operator’s salary

+ Hosting/Email

and SMS charges


salary +

Advertising

charges

5 Hosting/Email and

SMS charges

37,000 of computer


postage and

telephone charges.

Computer

operator’s salary

+ Hosting/Email

and SMS charges


salary +

Advertising

charges


32

Appendix II

WBS Tasks

WBS Code Task Name

1 Domain Manager Application Project

1.1 Project management plan

1.1.1 Draft project management plan

1.1.2 Review project management plan

1.1.3 Incorporate changes to the project management plan if needed

1.1.4 Get the approval

1.1.5 Signed project management plan

1.2 System Engineering

1.2.1 Technical planning

1.2.2 System requirement definition

1.3 Application

1.3.1 Application design

1.3.1.1 Application requirement specification

1.3.1.2 Application prototyping

1.3.1.3 Application detail design

1.3.2 Application build

1.3.2.1 Database Design

1.3.2.2 Coding

1.3.2.3 Debugging

1.3.3 Unit Testing

1.3.3.1 Test planning

1.3.3.2 Test case preparation

1.3.3.3 Test conduct

1.3.3.4 Test records

1.4 Hardware

1.4.1 Requirements planning

1.4.2 System definition

1.4.3 Component selection

1.4.4 Receiving Components


33

1.4.5 Component testing

1.5 System test

1.5.1 Module testing

1.5.2 Defect tracking

1.6 Support service

1.6.1 Configuration management

1.6.2 Quality assurance

1.6.3 Technical team training

1.7 Implementation

1.7.1 Planning

1.7.2 Documentation

1.7.3 User training

1.7.4 Installation management

1.7.5 Testing and verification

1.7.6 Performance monitoring


34

Appendix III

Risk Context

Date Identified: Impact to Critical Path: Yes No

Probability of Risk: (%) Impact to Project: (1=low,

5=high)

Impact Start Date: Impact End Date:

Responsible Person:

Program Area:

Affected Project Phase:

Risk Areas: Cost, Describe:

Schedule,

Describe:

Performance,

Describe:

Other, Describe:

Risk Control: Internal, External, or Internal & External

Current Status: Candidate Risk


35

Appendix IV

Project Information Window

Resource Sheet

Gantt Chart

Documents

Project Management _BSc Final