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Efficiency analysis of ERP projects
Software Quality Perspective
International Journal of Project
Management 33 (2015) 961–970
Software Project Management
Outline
 Overview of Paper
 Methodology
 Validation and Analysis
 Comparison with Core Areas of SPM
 Suggestions for Improvement
 References
 Question/Answer Session
By: Ayesha Saeed
Overview of Paper
Introduction to ERP
 Packaged Software
 ERP are not same as Conventional IT
Systems
 Defined term “Efficiency” as Software
productivity of ERP projects.
Project Effort
Function Point
Quality Measure
Overview of Paper
 Emphasize the need to access efficiency of ERP
projects based on quality Measure.
 Summarize related previous research work on
evaluating ERP Projects
 Research Objectives, Methodology , data
collection and analysis
 Validity of Results, conclusion and Future work
Research Objective
 ERP are Large scale project and involve
customization
 No research consider the efficiency from Quality
perspective.
 DEA CRS is use to identify most Efficient ERP
project.
By: Rabia Noureen
Proposed Model
DEA Model
 Data Envelopment Analysis
 A linear programming application aimed at
evaluating the efficiencies of similar decision-
making units (DMUs) based upon the inputs and
outputs associated with the DMUs.
 What does it mean to be efficient?
 Maximizing output with keeping input constant.
 Minimizing input with keeping output constant.
Efficiency=Total weighted Output / Total weighted Input
Research Framework
Fig.1.Conceptual research framework
Input variables
Output variables
The Model
Objective
Formula
Efficiency
score
Selected output
of each facility
in the set o.
Selected input
of each facility
in the set o.
Weights
The Constraints
The input and output
values, as well as all
weights are assumed by
the formulation to be
greater than or equal to
zero; the efficiency score
less than or equal to 1.
Results validation
By: Farwa Kazmi
Dataset
 Dataset consists of 10 ERP projects developed for
the educational institutions by Sylax company.
 for efficiency comparison only academic module of
each ERP system was considered.
Results of 10 ERP projects
Projec
t ID
(Bi)
I/O units
PE FP
DC
Potential improvement
required in %
PE FP
Efficiency
of ERP
projects %
B1 1.689 555 10 0 0 100
B2 8.938 699 15 71.50 19.10 28.50
B3 11.513 1348 12 64.18 0 35.85
B4 31.709 2219 8 78.58 0 21.42
B5 34.25 599 8 94.65 0 5.35
B6 50.027 1908 10 88.33 0 11.67
B7 1.652 345 9 7.49 44.78 92.51
B8 6.631 1080 3 50.17 0 49.83
B9 11.899 482 3 87.61 0 12.39
B10 10.8 1130 3 67.99 0 32.01
Validity of Results
0
20
40
60
80
100
120
B1 B2 B5 B7 B9
PE (input)
FP (output)
efficiency
Conclusion
“ project effort, product size and defects arising out
of a product should be well balanced to achieve
the efficiency of a project”
By: Sadia Majeed
Paper Comparison With SPM Core
Areas
Software Quality And SPM Core Areas
 Software Quality
 Totality of feature of product to satisfy customer need
 No of defects per unit size in product
 The following core areas of SPM influence the
way efficiency of ERP system is analyzed.
 SCOPE
 TIME
 COST
 QUALITY
 They are not independent
 If we increase scope it will require additional time and
cost if quality is not compromised
DEA Model Variables And SPM Core Areas
 In DEA model three main variables are
being used
Project Effort: PE (Persons-months)
Function Points: FP (Size of project)
Quality Measure: DC (Defects-count)SPM CORE AREAS DEA MODEL VARIABLES
Scope Size is measured in terms of
functional points of project
Cost and Time Project effort
Quality Defects Count
Efficiency Analysis In Terms Of
Dea Variables And SPM Core
Areas
The project to be reasonably efficient the PE, FP and
DC should be well balanced
 If SCOPE of project increases then DC(defect count)
increases as a result efficiency decreases
 If DC(defect count) is low then efficiency will increase
results in QUALITY software product
 In the research projects B1 and B7 were having less FP so less
DC arises. Thus Efficiency was high
 Project COST vary according to PE(Project Effort) so
as Efficiency varies
 Cost of developing software is man power employed
 In B8,B9,B10 projects DC was same but they require
improvements in PE. So their efficiency was average
Critique And Improvements
By: Madeha Arif
Critique of the Paper
• Inaccurate dataset. Not from customization
perspective.
• Ignoring managerial aspect of project.
• DC do not only depend on project size and
size is not only related to project effort.
• Only radial approach to identify efficiency of
project.
Suggestions for Improvements
 Focus on managerial aspects of project quality
assurance.
 Manage Defect Count as part of the quality
management process.
 Focus on other external factors: schedule
constraints and risk parameters.
 Use non-oriented blended approach:
Simultaneous input reduction and output
expansion approach.
Further Work
Efficiency assessment of software systems based
on:
 Productivity
 Quality measures
 Schedule
 Risks
Using non-oriented DEA model.
References:
 William W Cooper. Cooper Framework
http://deazone.com/en/cooper-
framework/cooperframework-phase4 Retrieved on
18 Oct’2015
 William W Cooper. What is DEA
http://deazone.com/en/resources/tutorial Retrieved
on 17 Oct’2015
 William W Cooper. What is ERP
https://www.syspro.com/product/what-is-erp
Retrieved on 18 Oct’2015
 Toshiyuki Sueyoshi, The Journal of the Operational
Research Society Vol. 41, No. 3 (Mar., 1990) “A
Special Algorithm for an Additive Model in Data
Envelopment Analysis”. Retrieved on 18 Oct’2015
Efficiency analysis of ERP projects—software quality perspective

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Efficiency analysis of ERP projects—software quality perspective

  • 1. Efficiency analysis of ERP projects Software Quality Perspective International Journal of Project Management 33 (2015) 961–970 Software Project Management
  • 2. Outline  Overview of Paper  Methodology  Validation and Analysis  Comparison with Core Areas of SPM  Suggestions for Improvement  References  Question/Answer Session
  • 4. Introduction to ERP  Packaged Software  ERP are not same as Conventional IT Systems  Defined term “Efficiency” as Software productivity of ERP projects. Project Effort Function Point Quality Measure
  • 5. Overview of Paper  Emphasize the need to access efficiency of ERP projects based on quality Measure.  Summarize related previous research work on evaluating ERP Projects  Research Objectives, Methodology , data collection and analysis  Validity of Results, conclusion and Future work
  • 6. Research Objective  ERP are Large scale project and involve customization  No research consider the efficiency from Quality perspective.  DEA CRS is use to identify most Efficient ERP project.
  • 8. DEA Model  Data Envelopment Analysis  A linear programming application aimed at evaluating the efficiencies of similar decision- making units (DMUs) based upon the inputs and outputs associated with the DMUs.  What does it mean to be efficient?  Maximizing output with keeping input constant.  Minimizing input with keeping output constant. Efficiency=Total weighted Output / Total weighted Input
  • 9. Research Framework Fig.1.Conceptual research framework Input variables Output variables
  • 10. The Model Objective Formula Efficiency score Selected output of each facility in the set o. Selected input of each facility in the set o. Weights
  • 11. The Constraints The input and output values, as well as all weights are assumed by the formulation to be greater than or equal to zero; the efficiency score less than or equal to 1.
  • 13. Dataset  Dataset consists of 10 ERP projects developed for the educational institutions by Sylax company.  for efficiency comparison only academic module of each ERP system was considered.
  • 14. Results of 10 ERP projects Projec t ID (Bi) I/O units PE FP DC Potential improvement required in % PE FP Efficiency of ERP projects % B1 1.689 555 10 0 0 100 B2 8.938 699 15 71.50 19.10 28.50 B3 11.513 1348 12 64.18 0 35.85 B4 31.709 2219 8 78.58 0 21.42 B5 34.25 599 8 94.65 0 5.35 B6 50.027 1908 10 88.33 0 11.67 B7 1.652 345 9 7.49 44.78 92.51 B8 6.631 1080 3 50.17 0 49.83 B9 11.899 482 3 87.61 0 12.39 B10 10.8 1130 3 67.99 0 32.01
  • 15. Validity of Results 0 20 40 60 80 100 120 B1 B2 B5 B7 B9 PE (input) FP (output) efficiency
  • 16. Conclusion “ project effort, product size and defects arising out of a product should be well balanced to achieve the efficiency of a project”
  • 17. By: Sadia Majeed Paper Comparison With SPM Core Areas
  • 18. Software Quality And SPM Core Areas  Software Quality  Totality of feature of product to satisfy customer need  No of defects per unit size in product  The following core areas of SPM influence the way efficiency of ERP system is analyzed.  SCOPE  TIME  COST  QUALITY  They are not independent  If we increase scope it will require additional time and cost if quality is not compromised
  • 19. DEA Model Variables And SPM Core Areas  In DEA model three main variables are being used Project Effort: PE (Persons-months) Function Points: FP (Size of project) Quality Measure: DC (Defects-count)SPM CORE AREAS DEA MODEL VARIABLES Scope Size is measured in terms of functional points of project Cost and Time Project effort Quality Defects Count
  • 20. Efficiency Analysis In Terms Of Dea Variables And SPM Core Areas The project to be reasonably efficient the PE, FP and DC should be well balanced  If SCOPE of project increases then DC(defect count) increases as a result efficiency decreases  If DC(defect count) is low then efficiency will increase results in QUALITY software product  In the research projects B1 and B7 were having less FP so less DC arises. Thus Efficiency was high  Project COST vary according to PE(Project Effort) so as Efficiency varies  Cost of developing software is man power employed  In B8,B9,B10 projects DC was same but they require improvements in PE. So their efficiency was average
  • 22. Critique of the Paper • Inaccurate dataset. Not from customization perspective. • Ignoring managerial aspect of project. • DC do not only depend on project size and size is not only related to project effort. • Only radial approach to identify efficiency of project.
  • 23. Suggestions for Improvements  Focus on managerial aspects of project quality assurance.  Manage Defect Count as part of the quality management process.  Focus on other external factors: schedule constraints and risk parameters.  Use non-oriented blended approach: Simultaneous input reduction and output expansion approach.
  • 24. Further Work Efficiency assessment of software systems based on:  Productivity  Quality measures  Schedule  Risks Using non-oriented DEA model.
  • 25. References:  William W Cooper. Cooper Framework http://deazone.com/en/cooper- framework/cooperframework-phase4 Retrieved on 18 Oct’2015  William W Cooper. What is DEA http://deazone.com/en/resources/tutorial Retrieved on 17 Oct’2015  William W Cooper. What is ERP https://www.syspro.com/product/what-is-erp Retrieved on 18 Oct’2015  Toshiyuki Sueyoshi, The Journal of the Operational Research Society Vol. 41, No. 3 (Mar., 1990) “A Special Algorithm for an Additive Model in Data Envelopment Analysis”. Retrieved on 18 Oct’2015

Editor's Notes

  1. When applying DEA model the researcher has to decide whether to use CRS or VRS. CRS is the output of the process increases or decreases simultaneously and with increase or decrease in the inputs(for small or medium IT projects) VRS is that an increase in inputs does not result in a proportional change in the outputs(for large scale ERP projects)
  2. To fulfill this objective, based on the review of the previous research on the evaluation of ERP projects, a conceptual research framework (Shown in Fig. 1) has been developed that consists of the input variables-project efforts (person-months) and the output variables-size of ERP software (FP) and quality measures (defect counts). The input and the output variables are processed by the DEA CRS model to determine the efficiency of ERP projects. These variables are observed to contribute to the efficiency of ERP projects.
  3. For comparison it is important to compare the projects of same size and type that’s why academic module is taken so that type and size of projects remain same.
  4. This table shows the efficiency report of 10 ERP projects analyzed from a quality perspective using the DEA CRS model Table consist of potential improvement required for the input units PE and FP to as to enable respective ERP to become 100% efficient and the Efficiency of 10 ERP projects based on I/O units The table shows that the project B1 and B7 are efficient projects and B8 have an average efficiency score. All the other project efficiency lies b/w 5%to36% Another interesting phenomena in the results is that the defect count of B8,B9 and B10 is same i.e 3 but their efficiency varies from each other. According to the author the reason of this variation is the required potential improvement for each project. Required improvement for B8 is low as compare to B9 and B10 that’s why its efficiency is high
  5. B1 and B7 have the efficiency of above 90 %. Because when we estimate the efficiency with Min.In mode of the DEA.i.e evalution with the objective of minimizing the project effort, then naturally these projects deserve to be declare efficient.
  6. It is impossible to change one part of triangle without having an effect on the other sides
  7. The project to be reasonably efficient the PE, FP and DC should be well balanced. So scope, cost, time and quality must be handled efficiently for successful projects.
  8. Manage Defect Counts as part of the quality management-quality inspection and assurance throughout the management process. A good requirement strategy to capture requirements reduce effort for system customization and DC rate. As it was reason for B1 and B7 success.