Project Management System: A Dow Corning - Case Study Example

Running head: Implementation of Information system Project Management System: A Dow Corning Case study s Introduction: A project is a one-off process with a single definable end-result or product. The ever-increasing rate of change in the environments in which organisations operate requires them to transform themselves regularly if they are to survive and have the possibility of prosperity. Much of project management is concerned with planning and controlling the three key variables associated with projects. These variables are time, cost, and quality. They are interrelated and a change in any single variable frequently has a significant impact on the others. "Project management, is the application of knowledge, skills, tools, and techniques to describe, organise, oversee and control the various project processes. But perhaps project management can best be described in terms of the things that you need to do to successfully manage a project: 1. Develop and manage a project plan (Integration Management) 2. Plan, define and manage project scope (Scope Management) 3. Create a project schedule, plan resources and budget costs (Time & Cost Management) 4. Develop a quality plan and carry out quality assurance and quality control activities (Quality Management) 5. Perform organisational planning, manage staff acquisitions and promote team development (Human Resource Management) 6. Develop a communications plan (Communications Management) 7. Identify risks, prepare risk mitigation plans and execute contingency actions (Risk Management)." (Lcpowers.com, 2001) The Information System Project Management: The advent of Information system and its importance for the business organisation has forced the organisations to implement different Information system projects. Many of the projects became a failure due to lack of proper skills in order to undertake these projects successfully. On the other hand the companies which initiated and successfully implemented these projects enjoyed the hyper growth. In order to make these projects different tools and techniques were introduced by the management gurus in order to increase the success rate of these projects. As indicated in the case of Dow Jones project the four major concerns in order to undertake the project were: (a) increasingly decentralized information systems (IS) decision making, (b) faster cycle times, (c) greater empowerment and (d) working closely through standing committees to develop plans, strategies, policies, priorities and controls. The implementation cost of the new information system often have some hidden costs which cannot be calculated at the beginning of a project (Anderson and Dawes, 1991). Often workers are required to be trained to effectively use the technology being implemented but this training reduce the working hours. Currid (1995) states the same fact as: When a new system is introduced, it rocks day-to-day activity so much that some people don't adjust quickly. They stay less productive than they were without the new computer. And, if this situation goes unchecked, they may never recover. In Standish Group's CHAOS Report, the group analysed 8380 Information projects that were underway in 365 companies and reported failure and success rates. The report used some indicators and divided the companies into following three categories which are as follows: Resolution Type 1 is a "Project Success" - it completed on time and budget, with all features and functions as specified. Only 16.2% of projects fell in this category. Resolution Type 2 is "Project Challenged." These were completed, but were over cost, over time, and/or lacking all of the features and functions that were originally specified. 52.7% of all studied projects fell into this Resolution Type 2 (Challenged) category. Resolution Type 3 is termed "Project Impaired/Failed." These projects were abandoned or cancelled at some point and thus became total losses. A disturbing 31.1% of all studied projects fell into this category. For the purposes of the Dow Jones Project the management will use the above three Standish Group measures of project outcome: A successful project must be on time, on budget, and deliver quality (features and functions) as promised. Anything less will be either a failed project or a challenged project. We will use the same criteria in reporting the examples of successful or unsuccessful projects. Inadequate training resulted in the necessity of users learning mostly on their own (Norris and Thompson, 1988; Rocheleau and Wu, 1994). Most of the mega-investment Information system projects failed due to the lack of proper training and alignment of technology with the business strategy. Most often the failure of projects is the result diversion from the initial design of the project. The project was aimed at facilitating distribution of baggage from check- in to aircraft to transfer and arrival. The management was unable to align business strategy with the technology. In order to avoid complications a number of short-term solutions were implemented making the project an investment failure (Johnson, 1994). The major reasons for the failure of project was the lack of co-ordination between different stake holders related to project and the tight time scale in order to implement and test new technology. As researched by (Goulemos, 2003) were the unrealistic estimation of completion time, lack of teamwork and cohesion between the parties involved. Lack of power centralisation was also an important issue i.e. Lack of leadership and management adversely effected the project. On the other hand well-implemented Information systems can revolutionise the future reputation and business scale of a company. Chilcott (2001) presented a 7-Step Development Process in order to effectively under take an IS project: 1. Identify and List Stakeholders: The identification and listing of stakeholders is very important and the initial step in an Is project. The list of the stakeholders should include all the people who have the power to effect the system. The second category of stakeholders includes the people whose position and power will be affected by the project. The third and most important category is the users of the project. It is important to recognise the actual stakeholders of the project. The representatives of these stakeholders should be included in all the discussions related to the Dow Jones project in order to sketch the clear vision and necessities of project. After the identification process it is important to determine the problem statement. The entire stakeholder should reach an agreement on the definition of problem in order to design a project to fit the problem size for all the stakeholders. 2. Identify and List Actors The perceptions of the stakeholders regarding the Dow Jones project must be analysed or in other words it should be found that what all the stakeholders want from the project. The project stakeholders can be divided into different groups according to their expectations regarding the project. The use and expectation of the stakeholders will help in designing the project in right way. It is seen in case of different projects that the developers and the involved stakeholders do not know about what they exactly want from the project. The development of an internal model regarding the perceptions of developers and stakeholders regarding the project will help all the people involved to expect, create, build and effectively use and support the system. 3. Identify and List Use Cases Use cases are the core of the whole process. The use cases present the complete functionality of the system. A use case in defined as an interaction between the user and the system. The use cases of the different stakeholders differ according to their expectations. They are an effective and meaningful tool to manage and organise the project. The use case collection in undertaken according to three steps: 1. To discover the use case while discussing with the stakeholders this step involves a general overview of two to three sentences of the use case. 2. At the second stage an analysis of the user case is undertaken according to the business rules and the system relationship components. 3. The next step is the decision making about the implementation of the user case. All the scheduling and development steps are designed. 4. Identify and List Scenarios All the possible ways to execute the user case should also be undertaken into consideration. Scenarios are the different ways the user case can play out to by the actor. In case of inclusion of all the scenarios the model will become very expensive and complex. So it is recommended to use standard scenarios. 5. Identify and List Steps Detailed description of the steps needed to complete a Scenario. 6. Identify and List Classes/Objects Detailed description(s) and/or models of the design and implementation of the methods and properties needed to complete a step. Can be organised into Interface, Controller, and Entity Classes, often using UML2 diagramming notation. 7. Manage Work Products The collection of artefacts that are produced and delivered to the client or other project stakeholders during project development. Tools & Techniques: In order to effectively plan an the project it is important to asses the risk attached with these projects. In order to calculate these risks and uncertainties, tools such as Risk Potential Assessment, Risk Potential Assessment guidance andRapid_Risk_Check_v02.2.xls, The Rapid Risk Check sheet are available which can be used by the Management in order to asses the risk attached with Dow Jones Project. Capability and Capacity: The second assessment should be of the current capabilities of the company in order to achieve the successful outcome of the project. SPRITE Capability Assessment Tool (CAT), CAT Leaflet, Organisational Capability Maturity Assessment (CMA). Portfolio, Programme and Project Management Maturity Model (P3M3) "OGC has recently developed a Portfolio, Programme and Project Management Maturity Model (P3M3) building on the existing Project Management Maturity Model. The P3M3 uses a similar approach to maturity as the well-recognised Carnegie-Melon Maturity Model (CMMM) and is based on various existing portfolios, programme and project management best practice. In 2001/2, a need was identified for the development of an organisational level assessment service based on a formal project management maturity model. At that time, OGC had a series of benchmarking assessments and associated maturity models, which had only received limited take-up within government. OGC had received a number of requests from both public and private sector organisations wishing to use a recognised "kite mark", such as the PRINCE2 logo, to demonstrate their achievement of standards relating to project management. PRINCE2 Maturity Model V0.05.01: The purpose of the PRINCE2 Maturity Model is to enable organisations to gauge, by assessment, their maturity in the use of the PRINCE2 project management method. The model can also be used: To understand the key practices that are part of an effective organisational process to manage projects. To identify the key practices that need to be embedded within the organisation to achieve the next level of maturity. To understand the rationale behind the assessment questionnaire. It can be used in one of two ways: As a standalone maturity model" (OGC, 2005) Prince 2: The prince 2 model enables an organisation to measure the performance by assessment through using the prince 2-project management model. The prince 2 model is a level by level analysis processes undertaken in key area as to what the organisation would do to improve their capabilities with regard to undertake effective project management. Level 1: The need of undertaking a project is felt. Level 2: At level 2 the organisations can introduce prince 2. This level is further subdivided in different steps: 2.1 Directing a project analyse the control of board project on project and the decision making. 2.2 Initiating a project: an analysis of sound base of project definition and measurement of success project. 2.3 Stage controlling: To ensure the daily check of progress by the management. 2.4 Closing a project: To ensure the orderly finish of the project. 2.5 Business case: To ensure the justification of undertaking and continuation of the project 2.6 Organisation: To ensure the provision of the talented and skilled project management team. 2.7 Plan / planning: To ensure the provision of credible plans and to include all the relevant information regarding stakeholders. 2.8 Risk management: To ensure the identification of risk involves in undertaking and implementing the project and to undertake the necessary steps minimise risk. 2.9 Controls: To provide insight to the actual project position to the management so that necessary steps can be undertaken in case of deviation from the actual project. 2.10 Quality control: To ensure the quality products resulting from the project. In a preliminary study that classified types of information behaviour within an organisational context, Bonner et al. (1996) raise some interesting questions. Is it possible to identify the relative combination of strengths of type for individual (and group) information behaviour Would it be possible to establish combinations of information behaviour type as being more suitable to certain types of work Can training programmes be developed to strengthen desirable information behaviour types Bonner et al. defined an individual's information behaviour in terms of their behaviour at a point in time in dealing with information within a given information environment (or context). It includes the person's behaviour with respect to: Determining the existence of, and locating needed information related to a specific problem or issue; Recognising new potential uses to which particular information may be put. The MIS and Human Factors Considerations: Computer applications and projects that develop those applications have always been subject to certain behavioural influences. The influences that can affect the performance of employees as they perform their computer-related tasks are regarded as human factor considerations. As a company that is in tune with the individual needs of its customers Dow Jones should not take a rigid, product-led approach that favours one particular solution regardless of the fit with customer requirements. The Company's philosophy must be to listen to customer needs and then develop solutions for discussion to ensure that those needs are met-a customer-driven approach. The company should adopt the method of operating as a global networked business model. A global networked business is an organisation, of any size, that uses information and communications strategically to build a network of strong. An interactive relationship with all its key constituencies, such a model is a natural complement to the Internet. The global networked business model leverages the network for competitive advantage by opening up the corporate information infrastructure to all key constituencies. The global networked business model employs a self-help model of information access that is more efficient and responsive than the traditional model of a few information gatekeepers dispensing data as they see fit. By using networked applications over the Internet and its own internal network, the company will gain financial benefits while improving customer/partner satisfaction and gaining a competitive advantage. References Anderson, David F. and Sharon S. Dawes (1991). Government Information Management: A Primer and Casebook. Englewood Cliffs, N.J.: Prentice-Hall, 1991. Bonner, M., Casey, M-E. Greenwood, J., Johnstone, D., Keane, D., & Huff, S., (1998). Information behaviour: a preliminary investigation. In Medhi Khosrow-Pour (Ed.), Proceedings of IRMA 1998, Effective Utilisation and Management of Emergent Technologies (pp. 68-79). Boston, MA: Idea Group Publishing Collins, T. (2002) "NATS accept the facts, take action" IT Management: Weekly, 10th October. Currid, C. (1995). "Fighting 'Technology Shock'. InformationWeek, February 6: 63. Davenport, T., (1997). Information ecology, New York, NY: Oxford University Press Goulielmos, M., (2002). Outlining organisational failure in information systems development". Disaster Development and Management Journal, Vol. 12, No. 4, pp. 319-27. Johnson, (1994). Late Already, Denver Faces More Delays", New York Business and Times, Sept 24. LCPowers.com, (2001). What is Project Management Available at http://www.lcpowers.com/whatispm.htm Norris, Donald F. and Lyke Thompson, (1988). Computing in Public Administration: Practices and Education. Social Science Computer Review 6(4): 548-557. Office of Government Commerce, (2005). Successful Delivery Toolkit, available at http://www.ogc.gov.uk/sdtoolkit/reference/tools/index.html Rocheleau, Bruce and Liangfu Wu, (1994). Training: The Missing Ingredient in the New Information Technology. Paper delivered at 1994 Meeting of the American Society for Public Administration, Kansas City, Missouri, July 25. Read More