project management

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1.11 What is a business case

A business case document is a formal, written argument intended to convince a decision maker to approve some kind of action.

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1.1.2 Identifying a problemi). Observation

changes to the business vision, strategy or objectives;

particular business processes or technologies that are not operating efficiently;

new competitor products or processes which have been identified;

opportunities resulting from new technologies introduced to the market place;

Operational trends which are driving changes in the business;

changes to statutory, legislative or other environmental requirements.

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1.1.2 Identifying a problemii). Crisis – This is where you meet a serious problem which leads to you to initiate a problemiii). Collecting views through user suggestion boxes

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1.1.3 Describing the business problem a full description of the problem; the reasons the problem exists; the elements that create the problem (such

as human, process, and technology factors); the impact the problem is having on the

business (such as financial, cultural or operational impact);

The timeframe for the project

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1.1.4 Alternative solutionsList all the alternative solutions:

Implementing new computer systemUpgrading computer systemMaintaining the current system

Compare each of the alternative solutions and recommend a preferred solution for implementation.

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1.1.5 ) Cost-benefit analysisIn large projects you may need to present

costs and benefits in form of a cost-benefit analysis (CBA) or investment appraisal

The purpose is to show that the:Problem and proposed solutionsBenefits outweigh the costPayback period is acceptableProject is worth doing

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c) Benefits Benefits may not all fall in the library

Library may need less staff if the electronic loan system is in place

UsersWill spend less time borrowing booksWill get an improved service

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b) CostsWhere are the main areas of cost?Cost of resources used by the projectOther costs incurred elsewhere – e.g time

spent

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CostsIn your case you should make allowance for

the unforeseen and include the elements for contingency

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Tolerance and Contingency The amount you allow within your agreed

budget for extra, unforeseen expensesTolerance and contingency are related to

risk.The greater the risk, the more likely the

project is to take longer and cost more.Tolerance of around 10% and contingency of

15% is usually about right – for projects taking not more than six months

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1.1.6 Identify RisksRisks are about:The project not going to plan

Resources or people not being available when you need them

Machines not working The outputs not being of the quality you were

expectingThink about :

What could go wrongWhat the impact might be it did

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Why do risks happen in a projectThis happens because of:

Unchecked assumptionsLack of realistic planning Poor organizationStarting a project that is new or complexDependence on resources or factors outside

your control

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Impact of Risks The impact is proportional to the importance of

the project to your main businessIf the online loans system fails: then will you be

able to serve your clientsDo you have a manual system in place? If not

then you are in trouble.

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1.1.7 List assumptions for projectTypes of assumptions

Conscious Unconscious

Reality proves our unconscious assumption wrong

Avoid making unconscious assumptions Get into a habit of checking Have regular meetings with minutesBe realistic

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What assumptions Are You making?Conscious assumptions (examples)

Inflation (exchange rate)Same, 10% higher or 10% lowerMake educated guessSupplier delivery of goods ordered

Make assumptions based on past experienceWrite assumptions in an area of uncertainty

(a risk)

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1.1.8 Summary of a business case a description of the problem or opportunity

that exists in the business; a list of the available options for delivering a

solution to resolve the problem; a list of the costs and benefits associated with

each solution option; a list of risks and assumptionsa recommended solution option for approval.

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2.0 Feasibility Study A feasibility study is a detailed assessment of

a current business problem by identifying the various solution options available and determining the likelihood of each alternative solution meeting a customer’s requirements.

A feasibility study can be done in house or by an external group.

It can be useful to visit other organizations that have tried similar projects and learn from their failures and successes.

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2.1 Feasibility study: decision making toolA feasibility study should provide management

with enough information to decide:whether the project can be donewhether the final product will benefit its

intended userswhat are the alternatives among which a

solution will be chosen (during subsequent phases)

- is there a preferred alternative which has been chosen

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2.2.0Types of feasibility studiesOperational

Define the urgency of the problem and the acceptability of any solution;

If the system is developed, will it be used? Includes people-oriented and social issues:

internal issues such as labour objections, manager resistance, organizational conflicts and policies;

also external issues, including legal aspects and government regulations.

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2.2.0 Types of feasibility studiesTechnical-- Is the project feasibility within the

limits of current technology? Does the technology exist at all? Is it available within given resource constraints (i.e., budget, schedule,...)?

Economic (Cost/Benefits Analysis ) -- Is the project possible, given resource constraints? Are the benefits that will accrue from the new system worth the costs?

What are the development and operational costs?Schedule--Constraints on the project schedule and

whether they could be reasonably metFinally, you prepare your report and you hand it in.

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2.3.0 Collecting views for the projectBegin with your customers

How will they be affected by the result?How they will benefitTalk to your colleagues

What do they think about your idea?What are their expectations from the projectTalk to the other people (with relevant

expertise) inside and outside your organisation

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3.0 Establishing terms of reference (TORs)After the business case and feasibility study have

been approved, a new project is formed (Project Charter).

At this point, terms of reference are created. The terms of reference define the goal, objectives,

scope and deliverables for the new project. They also describe the organization structure,

activities, resources and funding required to undertake the project.

Any risks, issues, planning assumptions and constraints are also identified.

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3.1.0. Develop a goal or project purpose

3.1.1 A goal is a direction that you want to take at the end of the project i.e

To install a new circulation system for the library

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3.2.1 Objective(s)Definition: is a statements of achievements,

attainable within the timeframe of the project, that will lead to the accomplishment of project goals

Examples:To develop circulation module for checking

out and checking in of library materialsTo enable online reservations of library

materialsTo implement automatic overdue fine charges

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3.2.2. Characteristics of objectives Specific. The objectives must be so clear and well defined that

anyone with a basic knowledge of the project area can understand them. They must precisely define what the project will and will not do.

Measurable. Objectives must be defined in measurable terms. If they cannot be measured, they are too ambiguous and you need to define them more clearly. To be successful, you must be able to measure and report on the progress.

Agreed-upon. The project manager, project sponsors, and customers must agree on the project objectives. All stakeholders must agree that the end result will solve the problem or respond to the opportunity defined.

Realistic. The project objectives must be achievable, given the available resources, knowledge, skills, and time. It might take some time and energy to negotiate project objectives that are realistic.

Time/cost-limited. The objectives need to be framed within clear time/cost goals. The amount of available time (budget) as well as any available flexibility, should be defined,

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3.2.1 Objectives: Importance Help to convince others Give you a point of reference for monitoring Help you decide between different courses of

actionLet you know when you have finished

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3.3 ScopeDefines what will be included in the project

and what will notWrite it downTo define scope refer back to your objectiveWhat do you need to do to achieve your

objective?

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3.1.3 Scope Everything which contributes directly to the

objective;Everything you must do to achieve the

objective is within the scopeEverything else is outside.Use project objectives to decide what the

scope will be

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Scope: components Essential – the project must deliver these;Desirable – included in the scope, but could

be dropped without destroying the project;Nice to have – if the project has a lot of

resources, these could be included

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3.1.4 DeliverablesChecking in and checking out circulation

modulesReservation moduleOverdue fines module

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3.2.0 Project organisationThis deals with who will be involved in the

project3.2.1 Customers: List the customers who

intend to use the deliverables produced by the project. Customers may be individuals or groups within or outside the company. The success of the project will be based primarily on whether or not the deliverables produced match the requirements of the customers identified

3.2.2 stakeholders: you list all people or groups who have interest in your project

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3.2.3 Develop structure, roles and reporting lines

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3.4.0) Initial plan - TasksIn this you come up with a number of

activities to and these activities can be arranged according to dates in you will perform them within the time frame

It is preferred that you must use the Gantt chart

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3.4.1 Initial plan: resources

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3.5.0 Listing project considerations Risks – summarise most apparent risks

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3.6 List of assumptionsList the major assumptions made while

defining the project. Examples include:Prices of hardware and software will not

increase during the course of the project. Additional human resources will be available

from the IT section to support the project.

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3.5.2 Project constraints List the major constraints identified while

defining the project. Examples include: If time is short, the resources (cost) must

increase or scope must decrease, or both. If funds are short, the time can be extended or

scope must decrease, or both. If the scope is large, the cost will be greater or

the time must be extended, or both.

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