Chapter 4:
Project Management and
Planning
Object-Oriented Systems Analysis and
Design
Joey F. George, Dinesh Batra,
Joseph S. Valacich, Jeffrey A. Hoffer
© Prentice Hall, 2004
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Chapter Objectives

After studying this chapter you should
be able to:
– Describe the steps involved for
identifying and selecting, initiating,
planning, and executing projects.
– Explain Statement of Work (SOW) and
Baseline Project Plan (BPP).
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Chapter Objectives
(Continued)

After studying this chapter you should
be able to:
– Describe several methods for feasibility
assessment.
– Describe tangible vs. intangible benefits
and costs, and one-time vs. recurring
costs.
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Chapter Objectives
(Continued)

After studying this chapter you should
be able to:
– Perform cost-benefit analysis by
performing net present value (NPV),
return on investment (ROI), and
breakeven analysis.
– Describe the activities and roles in a
structured walkthrough.
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Identifying and Selecting
OOSAD Projects
 Top-down
approaches
– Top management
– Steering committees
 Bottom-up
approaches
– User departments
– Development group
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Each stakeholder group brings their own perspective
and motivation to the IS decision
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Managing the Project:
Initiation Tasks
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Managing the Project:
Planning Tasks
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Statement of Work (SOW) is
a “contract” between the IS
staff and the customer
regarding deliverables and
time estimates for a system
development project
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System Service Request
(SSR) is a form requesting
development or maintenance
of an information system. It
includes the contact person, a
problem statement, a service
request statement, and
liaison contact information.
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Feasibility Assessment

Economic feasibility
 Technical feasibility
 Operational feasibility
 Schedule feasibility
 Legal and contractual feasibility
 Political feasibility
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Economic Feasibility

Cost-benefit analysis – identify all the
financial benefits and costs associated with
a project

Tangible vs. intangible benefits
 Tangible vs. intangible costs
 One-time vs. recurring costs
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Tangible benefits:
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One-time tangible
costs
Recurring tangible costs
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Three financial measures for cost-benefit analysis
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Net Present Value
PVn = present value of Y dollars n years from now
based on a discount rate of i.
NPV = sum of PVs across years.
Calculates time value of money.
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Technical Feasibility

Assessing the organization’s ability to
construct the proposed system

Takes into account various project risk
factors
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High technical familiarity mitigates risk due to project
size and structure. Low familiarity increases risk.
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Baseline Project Plan (BPP)
is a document intended
primarily to guide the
development team,
containing an overview of the
project, a detailed
description of the system, a
complete feasibility
assessment, and a list of
management issues.
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Other Feasibility Concerns

Operational
– Will the system achieve the objectives of the project?

Schedule
– Can the project be accomplished in a reasonable time frame?
– Project management critical path scheduling can help answer
this concern.

Legal/Contractual
– Are there regulations or legal obligations that affect the
success of the project?

Political
– Will the project have user and management support?
– Will there be resistance?
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Project Scope statement
is part of the BPP, and
identifies the problem or
opportunity, the project
objectives, description,
benefits, deliverables,
and expected duration.
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What is a Structured Walkthrough?

A peer-group review of any product created during
the system development process

- Individuals attending can have the following
 roles: coordinator, presenter, user, secretary,
 standard-bearer, maintenance oracle

- Can be applied to BPP, system specifications,

logical and physical designs, program code, test

procedures, manuals and documentation
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Structured
walkthrough form
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Recap
 After
studying this chapter we learned
to:
– Select, initiate, plan, and execute projects.
– Understand SSR, SOW, and BPP documents.
– Perform feasibility assessment.
– Perform cost-benefit analysis.
– Perform structured walkthroughs.
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