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1. Project Planning &
Feasibility Study
R. Ramesh Babu
Senior Lecturer/SMBS
VIT

2. Project Planning
Guidelines for Project Plans.
 Use project plans to coordinate rather than to
control.
 Make use of different personalities within the project
environment.
 Preschedule frequent revisions to project plans.
 Empower workers to estimate their own work.
 Describe value-creating tasks rather than activities.
 Define specific and tangible milestones.
 Use check lists, matrices, and other supplements to
project plans.

3. Internal Factors
 Infrastructure
 Project scope
 Labor relations
 Project location
 Project leadership
 Organizational goal
 Management approach
 Technical manpower supply
 Resource and capital availability

4. External Factors
 Public needs
 Market needs
 National goals
 Industry stability
 State of technology
 Industrial competitors
 Government regulations

5. Components of Project Plan
 Summary of Project Plan
 Objectives
 Approach
 Policies and Procedures
 Contractural Requirements (document
problematic areas)
 Project Schedule
 Resource Requirements
 Performance Measures
 Contingency Plans
 Tracking, Reporting, and Auditing

6. Project Development Lifecycle

7. Planning Phase
 Define problem
 Confirm project feasibility
 Produce project schedule
 Staff the project
 Launch the project

8. Analysis Phase
 Gather information
 Problem Domain
 Application
 Define system requirements
 Build prototypes for discovery of
requirements
 Prioritize requirements
 Generate and evaluate alternatives
 Review recommendations with management

9. Design Phase
 Design and integrate the network
 Design the application architecture
 Design the user interfaces
 Design the system interfaces
 Design and integrate the database
 Prototype for design details
 Design and integrate the system
controls

10. Implementation Phase
 Construct software components
 Verify and test
 Convert data
 Train users and document the system
 Install the system

11. Support Phase
 Maintain the system
 Enhance the system
 Support the users
 Help desk

12. Technology Development
Obsolescence of today’s products

14. Organization

15. Organization
Organizational
Objective

16. Organization
Organizational
Objective
Organizational
Use of
Technology

17. Another
Illustrated
Example…

24. Preventing of
Failures

25. Project Feasibility
 Measure of how beneficial or practical the development of an
information system will be to an organization.
 Process by which feasibility is measured
 Continuing process of feasibility assessment
 Tests of feasibility
 Technical feasibility
 Operational feasibility
 Schedule Feasibility
 Economic feasibility

26. Scope of Feasibility Analysis
 Need Analysis
 Process Work
 Engineering & Design
 Cost Estimate
 Financial Analysis
 Project Impacts
 Conclusions and Recommendations

27. Feasibility Dangers
 A project that was once feasible may not
remain so - why not?
 Feasibilities can often conflict!
 Best solution can often be the most expensive
 good operational feasibility
 poor economic feasibility
 What can you do if the project is not feasible
on all levels?

28. Managing Expectations
 Often most difficult aspect of a project
 Tool for balancing priorities
 Rows in matrix are project dimensions:
 Cost
 Schedule
 Scope / Quality

29. Managing Expectations
 Columns in matrix are the priorities:
 Max or Min: most important
 Constrain: median importance
 Accept: lowest importance
 Impossible to optimize all simultaneously!
 Rule: 1 check per row & column

30. Expectation Management
Priorities Max or Min Constrain Accept
Cost: $20B
Schedule:
Deadline 12/1969
Scope / Quality:
Man on the moon,
return safely
X
X
X

31. Frequent Causes of Failures
 Taking shortcuts with methodology
 when/why do these occur?
 Cost of fixing errors, finding an error in:
 Requirements: $1,000
 Design: $2,500
 Coding: $6,000
 Testing: $25,000
 Implementation: $75,000

32. Frequent Causes of Failures
 Scope & Feature Creep
 can be both good and bad, how?
 are mgmt intentions clear?

33. • Operational Feasibility
 How well will the solution work in the
organization?
• Technical Feasibility
 How practical is the technical solution?
How available are technical resources and
expertise?
Tests of Feasibility

34. • Schedule Feasibility
 How reasonable is the project timetable?
• Economic Feasibility
 How cost-effective is the project or
solution?
Cost-benefit analysis
Tests of Feasibility

35. • Questions to Ask
 Is the problem worth solving?
Will the solution to the problem work?
How do end users and management feel
about the solution?
Has a usability analysis been conducted?
Operational Feasibility

36. • Questions to Ask
Is the proposed solution practical?
Do we possess the necessary technology?
Do we possess the necessary technical
expertise?
Is the schedule reasonable?
Technical Feasibility

37. • Cost-benefit analyses
How much will the system cost?
Development costs
Operation costs
Maintenance and support costs
Do we possess the necessary technology?
Do we possess the necessary technical
expertise?
Is the schedule reasonable?
Economic Feasibility

38. Cost Analysis
Project Budget Template
Author's Name Organization Name, Date
Assumptions
Personnel/Infrastructure assumptions
Infrastructure assumptions
--Initial network and remote access upgrades covered in ZYX project
Programmatic assumptions
--Budget currently contains expenses only
--Revenues to be estimated upon completion of market survey
Worksheet and expense assumptions
--Average manager salary (2002$$) $75,000
--Annual expense increase 3%
--Benefits and indirect costs changes per year 0%
--Benefits (as a percentage of wages) 32%
Expenses Year 1 Year 2 Year 3 Year 4 Year 5
Personnel
Benefits (at 32%)
Hardware
Software
Computer Usage Costs
Training Costs
Library Resources
Program Maintenance and Upgrade Costs
Travel Costs
Administrative Costs
Administration
Postage, Fedex
Communications
Publication costs
Total Administrative Costs
Total Direct Cost
Indirect Costs (at 54.5%)
Yearly Project Costs

39. •Benefit analyses
Tangible benefits can be easily quantified.
Measured in terms of monthly or annual
savings, or of profit to organization
Intangible benefits more difficult to quantify.
Benefit Analysis

40. Benefit Analysis
Tangible Benefits
• Fewer processing errors
• Increased throughput
• Decreased response time
• Elimination of job steps
• Increased sales
• Reduced credit losses
• Reduced expenses
Intangible Benefits
• Improved customer goodwill
• Improved employee morale
• Better service to community
• Better decision-making

41. • Payback analysis
How long will it take to recoup the costs of
this project?
Return on investment (ROI) analysis
Net present value analysis
Economic Feasibility

42. • Compare candidate systems on basis of
several characteristics
Better analysts always consider multiple
solutions
Feasibility Analysis

43. Candidate Systems MatrixCandidate Systems Matrix 10.13.01
Characteristics Candidate 1 Candidate 2 Candidate 3
Portion of System Computerized
Brief description of portion of COTS package
system that would be computerized Platinum Plus
in this candidate. from Entertainment
Solutions, Inc.
Benefits
Brief description of business benefits Solution can be
that would be realized for this implemented
candidate quickly.
Servers and Workstations
Description of the servers and PIV, MS Windows
workstations needed to support this 2000 class servers
candidate. and workstations
Software Tools Needed
Software tools needed to design and MS Visual C++
build the candidate solution (e.g., MS Access for
DBMS, operating systems, customization
languages) of package for
report writing.
Application Software
Description of software to be built, Package solution
purchased, accessed or some
combination of the above.
Method of Data Processing
On-line, batch, deferred batch, real-time Client-server
Output Devices and Implications
Output devices that would be used (e.g., HP4MV dept
network, preprinted forms, etc.) as well laser printers
as output considerations (timing constraints)
Input Devices and Implications
Description of input methods to be used keyboard & mouse
(e.g., keyboard, mouse, etc.), special
input requirements (new or revised forms),
input considerations (timing of actual inputs)
Storage Devices and Implications
Description of what data would be stored, MS SQL DBMS
what data would be accessed from existing with 100G arrayed
stores, what storage media would be used, capability
how much storage capacity needed, how
that data would be organized.

44. Feasibility Analysis MatrixFeasibility Analysis 10.13.01
Feasibility Criteria Weight Candidate 1 Candidate 2 Candidate 3
Operational Feasibility 30%
Functionality: To what degree does the Only supports Fully supports Same as
candidate solution benefit the organization? Members Services required Candidate
Political: How well will the solution be requirements and functionality #2
received by users? Management? current business
processes would
have to be modified
Score: 60 Score: 100 Score: 100
Technical Feasibility 30%
Technology: Assessment of maturity, Current release of Current technical
availability, ability to acquire, and Platinum Plus is staff only has
desirability of computer technology needed 1.0; only on market Powerbuilder
to support the candidate. 6 weeks experience.
Expertise: Assessment of the technical Staff thinks Access
expertise needed to develop, operate, app is simple.
and maintain the candidate system Score: 50 Score: 95 Score: 60
Economic Feasibility 30%
Cost to Develop $350,000 $418,040 $400,000
Payback period (discounted) 4.5 years 3.5 years 3.3 years
Net Present Value $210,000 $306,748 $325,500
Detailed Calculations See attachment A See Attachment A See Attachment A
Score: 60 Score: 85 Score: 90
Schedule Feasibility 10%
Assessment of how long the solution will Less than 3 months 9-12 months 9 months
take to design and implement.
Score: 95 Score: 80 Score: 85
Ranking 60.5 92 83.5