Kalinga University

Department of Computer Science

Course- MBA Sem-IV

Subject- System Analysis and Design
Subject Code: MBAIT1

UNIT-I

Introduction to SAD:
 Systems development is systematic process which includes phases such as planning, analysis,
design, deployment, and maintenance. Here, in this tutorial, we will primarily focus on:
o Systems analysis
o Systems design
o Systems Analysis
 It is a process of collecting and interpreting facts, identifying the problems,
and decomposition of a system into its components.
 System analysis is conducted for the purpose of studying a system or its parts
in order to identify its objectives. It is a problem solving technique that
improves the system and ensures that all the components of the system work
efficiently to accomplish their purpose.
 Analysis specifies: what the system should do.
o Systems Design
 It is a process of planning a new business system or replacing an existing
system by defining its components or modules to satisfy the specific
requirements. Before planning, you need to understand the old system
thoroughly and determine how computers can best be used in order to operate
efficiently.
 System Design focuses on how to accomplish the objective of the system.
 System Analysis and Design (SAD) mainly focuses on – Systems, Processes and Technology
System:
 The word System is derived from Greek word Systema, which means an organized
relationship between any set of components to achieve some common cause or objective.
 A system is “an orderly grouping of interdependent components linked together according to
a plan to achieve a specific goal.”
Constraints of a System
 A system must have three basic constraints −
o A system must have some structure and behaviour which is designed to achieve a
predefined objective.
o Interconnectivity and interdependence must exist among the system components.
o The objectives of the organization have a higher priority than the objectives of its
subsystems.
 For example, traffic management system, payroll system, automatic library system, human
resources information system.
Properties of a System
 Organization: Organization implies structure and order. It is the arrangement of components
that helps to achieve predetermined objectives.
 Interaction: It is defined by the manner in which the components operate with each other.
For example, in an organization, purchasing department must interact with production
department and payroll with personnel department.

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  Interdependence: Interdependence means how the components of a system depend on one
another. For proper functioning, the components are coordinated and linked together
according to a specified plan. The output of one subsystem is the required by other subsystem
as input.
 Integration: Integration is concerned with how system components are connected together. It
means that the parts of the system work together within the system even if each part performs
a unique function.
Central Objective
 The objective of system must be central. It may be real or stated. It is not uncommon for an
organization to state an objective and operate to achieve another.
 The users must know the main objective of a computer application early in the analysis for a
successful design and conversion.
Elements of a System

 Outputs and Inputs:

o The main aim of a system is to produce an output which is useful for its user.
o Inputs are the information that enters into the system for processing.
o Output is the outcome of processing.
 Processor(s)
o The processor is the element of a system that involves the actual transformation of
input into output.
o It is the operational component of a system. Processors may modify the input either
totally or partially, depending on the output specification.
o As the output specifications change, so does the processing. In some cases, input is
also modified to enable the processor for handling the transformation.
 Control:
o The control element guides the system.
o It is the decision–making subsystem that controls the pattern of activities governing
input, processing, and output.
o The behaviour of a computer System is controlled by the Operating System and
software. In order to keep system in balance, what and how much input is needed is
determined by Output Specifications.
 Feedback:
o Feedback provides the control in a dynamic system.
o Positive feedback is routine in nature that encourages the performance of the system.
o Negative feedback is informational in nature that provides the controller with
information for action.
 Environment:
o The environment is the “super-system” within which an organization operates.
o It is the source of external elements that strike on the system.
o It determines how a system must function. For example, vendors and competitors of
organization’s environment may provide constraints that affect the actual
performance of the business.
 Boundaries and Interface:

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 o A system should be defined by its boundaries. Boundaries are the limits that identify
its components, processes, and interrelationship when it interfaces with another
system.
o Each system has boundaries that determine its sphere of influence and control.
o The knowledge of the boundaries of a given system is crucial in determining the
nature of its interface with other systems for successful design.
Types of Systems
 Physical or Abstract Systems
o Physical systems are tangible entities. We can touch and feel them.
o Physical System may be static or dynamic in nature. For example, desks and chairs
are the physical parts of computer center which are static. A programmed computer is
a dynamic system in which programs, data, and applications can change according to
the user's needs.
o Abstract systems are non-physical entities or conceptual that may be formulas,
representation or model of a real system.
 Open or Closed Systems
o An open system must interact with its environment. It receives inputs from and
delivers outputs to the outside of the system. For example, an information system
which must adapt to the changing environmental conditions.
o A closed system does not interact with its environment. It is isolated from
environmental influences. A completely closed system is rare in reality.
 Adaptive and Non Adaptive System
o Adaptive System responds to the change in the environment in a way to improve their
performance and to survive. For example, human beings, animals.
o Non Adaptive System is the system which does not respond to the environment. For
example, machines.
 Permanent or Temporary System
o Permanent System persists for long time. For example, business policies.
o Temporary System is made for specified time and after that they are demolished. For
example, A DJ system is set up for a program and it is dissembled after the program.
 Natural and Manufactured System
o Natural systems are created by the nature. For example, solar system, seasonal
system.
o Manufactured System is the man-made system. For example, Rockets, dams, trains.
 Deterministic or Probabilistic System
o Deterministic system operates in a predictable manner and the interaction between
system components is known with certainty. For example, two molecules of hydrogen
and one molecule of oxygen make water.
o Probabilistic System shows uncertain behaviour. The exact output is not known. For
example, Weather forecasting, mail delivery.
 Social, Human-Machine, Machine System
o Social System is made up of people. For example, social clubs, societies.
o In Human-Machine System, both human and machines are involved to perform a
particular task. For example, Computer programming.
o Machine System is where human interference is neglected. All the tasks are
performed by the machine. For example, an autonomous robot.
 Man–Made Information Systems:
o It is an interconnected set of information resources to manage data for particular
organization, under Direct Management Control (DMC).
o This system includes hardware, software, communication, data, and application for
producing information according to the need of an organization.
o Man-made information systems are divided into three types –

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  Formal Information System: It is based on the flow of information in the
form of memos, instructions, etc., from top level to lower levels of
management.
 Informal Information System: This is employee based system which solves
the day to day work related problems.
 Computer Based System: This system is directly dependent on the
computer for managing business applications. For example, automatic library
system, railway reservation system, banking system, etc.
Systems Models
 Schematic Models
o A schematic model is a 2-D chart that shows system elements and their linkages.
o Different arrows are used to show information flow, material flow, and information
feedback.
 Flow System Models
o A flow system model shows the orderly flow of the material, energy, and information
that hold the system together.
o Program Evaluation and Review Technique (PERT), for example, is used to abstract
a real world system in model form.
 Static System Models
o They represent one pair of relationships such as activity–time or cost–quantity.
o The Gantt chart, for example, gives a static picture of an activity-time relationship.
 Dynamic System Models
o Business organizations are dynamic systems. A dynamic model approximates the
type of organization or application that analysts deal with.
o It shows an on-going, constantly changing status of the system. It consists of: Inputs
that enter the system, the processor through which transformation takes place, the
program(s) required for processing and the output(s) that result from processing.
Categories of Information
 There are three categories of information related to managerial levels and the decision
managers make.

 Strategic Information
o This information is required by topmost management for long range planning policies
for next few years. For example, trends in revenues, financial investment, and human
resources, and population growth.
o This type of information is achieved with the aid of Decision Support System (DSS).
 Managerial Information
o This type of Information is required by middle management for short and
intermediate range planning which is in terms of months. For example, sales analysis,
cash flow projection, and annual financial statements.
o It is achieved with the aid of Management Information Systems (MIS).
 Operational information

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 o This type of information is required by low management for daily and short term
planning to enforce day-to-day operational activities. For example, keeping employee
attendance records, overdue purchase orders, and current stocks available.
o It is achieved with the aid of Data Processing Systems (DPS).
System Development Life Cycle:
 An effective System Development Life Cycle (SDLC) should result in a high quality system
that meets customer expectations, reaches completion within time and cost evaluations, and
works effectively and efficiently in the current and planned Information Technology
infrastructure.
 System Development Life Cycle (SDLC) is a conceptual model which includes policies and
procedures for developing or altering systems throughout their life cycles.
 SDLC is used by analysts to develop an information system. SDLC includes the following
activities −
o requirements
o design
o implementation
o testing
o deployment
o operations
o maintenance
Phases of SDLC
 Systems Development Life Cycle is a systematic approach which explicitly breaks down the
work into phases that are required to implement either new or modified Information System.

 Feasibility Study or Planning

o Define the problem and scope of existing system.
o Overview the new system and determine its objectives.
o Confirm project feasibility and produce the project Schedule.
o During this phase, threats, constraints, integration and security of system are also
considered.
o A feasibility report for the entire project is created at the end of this phase.
 Analysis and Specification
o Gather, analyze, and validate the information.
o Define the requirements and prototypes for new system.
o Evaluate the alternatives and prioritize the requirements.

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 o Examine the information needs of end-user and enhances the system goal.
o A Software Requirement Specification (SRS) document, which specifies the
software, hardware, functional, and network requirements of the system is prepared at
the end of this phase.
 System Design
o Includes the design of application, network, databases, user interfaces, and system
interfaces.
o Transform the SRS document into logical structure, which contains detailed and
complete set of specifications that can be implemented in a programming language.
o Create a contingency, training, maintenance, and operation plan.
o Review the proposed design. Ensure that the final design must meet the requirements
stated in SRS document.
o Finally, prepare a design document which will be used during next phases.
 Implementation
o Implement the design into source code through coding.
o Combine all the modules together into training environment that detects errors and
defects.
o A test report which contains errors is prepared through test plan that includes test
related tasks such as test case generation, testing criteria, and resource allocation for
testing.
o Integrate the information system into its environment and install the new system.
 Maintenance/Support
o Include all the activities such as phone support or physical on-site support for users
that is required once the system is installing.
o Implement the changes that software might undergo over a period of time, or
implement any new requirements after the software is deployed at the customer
location.
o It also includes handling the residual errors and resolves any issues that may exist in
the system even after the testing phase.
o Maintenance and support may be needed for a longer time for large systems and for a
short time for smaller systems.
Life Cycle of System Analysis and Design
 The following diagram shows the complete life cycle of the system during analysis and
design phase.

Requirement
Determination
and Specification

Feasibility
study

System
Specification
System Analysis
Design
System
Implementation

System Evaluation
and Maintenance
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System Planning: Requirement Determination
 A requirement is a vital feature of a new system which may include processing or capturing
of data, controlling the activities of business, producing information and supporting the
management.
 Requirements determination involves studying the existing system and gathering details to
find out what are the requirements, how it works, and where improvements should be made.
Major Activities in requirement Determination
 Requirements Anticipation
o It predicts the characteristics of system based on previous experience which include
certain problems or features and requirements for a new system.
o It can lead to analysis of areas that would otherwise go unnoticed by inexperienced
analyst. But if shortcuts are taken and bias is introduced in conducting the
investigation, then requirement Anticipation can be half-baked.
 Requirements Investigation
o It is studying the current system and documenting its features for further analysis.
o It is at the heart of system analysis where analyst documenting and describing system
features using fact-finding techniques, prototyping, and computer assisted tools.
 Requirements Specifications
o It includes the analysis of data which determine the requirement specification,
description of features for new system, and specifying what information requirements
will be provided.
o It includes analysis of factual data, identification of essential requirements, and
selection of Requirement-fulfilment strategies.
Information Gathering Techniques:
 The main aim of fact finding techniques is to determine the information requirements of an
organization used by analysts to prepare a precise SRS understood by user.
 Ideal SRS Document should:
o Be complete, Unambiguous, and Jargon-free.
o Specify operational, tactical, and strategic information requirements.
o Solve possible disputes between users and analyst.
o Use graphical aids which simplify understanding and design.
 There are various information gathering techniques:
 Interviewing:
o Systems analyst collects information from individuals or groups by interviewing. The
analyst can be formal, legalistic, play politics, or be informal; as the success of an
interview depends on the skill of analyst as interviewer.
o It can be done in two ways –
 Unstructured Interview: The system analyst conducts question-answer
session to acquire basic information of the system.
 Structured Interview: It has standard questions which user needs to respond
in either close (objective) or open (descriptive) format.
 Advantages of Interviewing
o This method is frequently the best source of gathering qualitative information.
o It is useful for them, who do not communicate effectively in writing or who may not
have the time to complete questionnaire.
o Information can easily be validated and cross checked immediately.
o It can handle the complex subjects.
o It is easy to discover key problem by seeking opinions.
o It bridges the gaps in the areas of misunderstandings and minimizes future problems.

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  Questionnaires:
o This method is used by analyst to gather information about various issues of system
from large number of persons.
o There are two types of questionnaires –
 Open-ended Questionnaires − It consists of questions that can be easily and
correctly interpreted. They can explore a problem and lead to a specific
direction of answer.
 Closed-ended Questionnaires − It consists of questions that are used when
the systems analyst effectively lists all possible responses, which are
mutually exclusive.
 Advantages of questionnaires
o It is very effective in surveying interests, attitudes, feelings, and beliefs of users
which are not co-located.
o It is useful in situation to know what proportion of a given group approves or
disapproves of a particular feature of the proposed system.
o It is useful to determine the overall opinion before giving any specific direction to the
system project.
o It is more reliable and provides high confidentiality of honest responses.
o It is appropriate for electing factual information and for statistical data collection
which can be emailed and sent by post.
 Review of Records, Procedures, and Forms:
o Review of existing records, procedures, and forms helps to seek insight into a system
which describes the current system capabilities, its operations, or activities.
 Advantages
o It helps user to gain some knowledge about the organization or operations by
themselves before they impose upon others.
o It helps in documenting current operations within short span of time as the procedure
manuals and forms describe the format and functions of present system.
o It can provide a clear understanding about the transactions that are handled in the
organization, identifying input for processing, and evaluating performance.
o It can help an analyst to understand the system in terms of the operations that must be
supported.
o It describes the problem, its affected parts, and the proposed solution.
 Observation:
o This is a method of gathering information by noticing and observing the people,
events, and objects. The analyst visits the organization to observe the working of
current system and understands the requirements of the system.
 Advantages
o It is a direct method for gleaning information.
o It is useful in situation where authenticity of data collected is in question or when
complexity of certain aspects of system prevents clear explanation by end-users.
o It produces more accurate and reliable data.
o It produces all the aspect of documentation that are incomplete and out-dated.

System Development Methodologies:

 Systems development methodology is defined as a standard process followed in an
organization to conduct all the steps necessary to analyze, design, implement and maintain
information systems.
 The traditional methodology of the systems development life cycle (SDLC) follows highly
structured steps; Project Identification and Selection, Project Initiation and Planning,
Analysis, Design, Implementation and Maintenance.
 This traditional methodology is normally used on large projects and requires extensive
development periods, very often lasting well over a year.

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 They are often complicated and the results do not always satisfy the needs of users. This
makes this approach very expensive taking into consideration the money, time and effort put
in.
 Making changes to the system also very expensive. 
 The various methodologies are: Structured Design, RAD, JAD and Prototyping.
 Structured Design:
o Structured design is a conceptualization of problem into several well-organized
elements of solution. It is basically concerned with the solution design. Benefit of
structured design is, it gives better understanding of how the problem is being solved.
Structured design also makes it simpler for designer to concentrate on the problem
more accurately.
o Structured design is mostly based on ‘divide and conquer’ strategy where a problem
is broken into several small problems and each small problem is individually solved
until the whole problem is solved.
o The small pieces of problem are solved by means of solution modules. Structured
design emphasis that these modules be well organized in order to achieve precise
solution.
o These modules are arranged in hierarchy. They communicate with each other. A good
structured design always follows some rules for communication among multiple
modules, namely –
 Cohesion - grouping of all functionally related elements.
 Coupling - communication between different modules.
o A good structured design has high cohesion and low coupling arrangements.
 RAD:
o It is Rapid Application development model. Rapid Application Development (RAD)
refers to a type of software development methodology that uses minimal planning in
favour of rapid prototyping.
o The "planning" of software developed using RAD is interleaved with writing the
software itself. The lack of extensive pre-planning generally allows software to be
written much faster, and makes it easier to change requirements.
o Rapid Application Development is a software development methodology that
involves techniques like iterative development and software prototyping. Rapid
Application Development is defined as a methodology created to radically decrease
the time needed to design and implement information systems by relying on extensive
user involvement, JAD sessions, prototyping, integrated CASE tools, and code
generator.
o RAD is based on the concept that systems can be developed faster and of higher
quality by gathering requirements through workshops or focus groups, prototyping
and early, reiterative user testing of designs, use of already existing software
components and less formality in reviews and other team communication.
o RAD uses small integrated teams of developers, end users and IT technical resources
and short iterative development cycles to optimize its goals of speed, effective
informal communication, unity of vision and purpose, and simple project
management. This, when compared to the traditional SDLC is shorter in delivery and
offers better interaction between users and developers. Below is a diagram comparing
the cycles of the two methodologies.
 Advantages of the RAD methodology:
o Flexible and adaptable to changes.
o Prototyping applications give users a tangible description from which to judge
whether critical system requirements are being met by the system. Report output can
be compared with existing reports. Data entry forms can be reviewed for
completeness of all fields, navigation, data access (drop down lists, checkboxes, radio
buttons, etc.).

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 o RAD generally incorporates short development cycles - users see the RAD product
quickly.
o RAD involves user participation thereby increasing chances of early user community
acceptance.
o RAD realizes an overall reduction in project risk. 6. Pareto's 80 - 20 Rule usually
results in reducing the costs to create a custom system.
 Disadvantages of RAD methodology:
o Unknown cost of product. As mentioned above, this problem can be alleviated by the
customer agreeing to a limited amount of rework in the RAD process.
o It may be difficult for many important users to commit the time required for success
of the RAD process.
 JAD:
o It is a new technique developed by IBM which brings owners, users, analysts,
designers, and builders to define and design the system using organized and intensive
workshops. JAD trained analyst act as facilitator for workshop who has some
specialized skills.
o JAD is a methodology that involves the client or end user in the design and
development of an application through a succession of collaborative workshops
known as JAD sessions or in other words, a group information gathering technique of
systems development.
o JAD was developed by IBM in the late 1970s originally as a process for designing
computer-based systems.
o JAD centres more on people than on technology. By following a structured method
that utilizes group dynamics, electronic software, visual aids and software modelling
tools, JAD encourages a partnership between business clients, management and IS
personnel.
o The aim is to get all groups with a stake in the project to work together by getting the
team together in meeting rooms with U-shaped or round tables, white boards,
overhead projectors and audio-visual tools. This allows everyone in the room to talk
and be heard.
o By hearing each other the team is able to produce the appropriate systems
requirements. Therefore JAD sessions require the right mix of people actively
participating in order to achieve the goals of the session.
o A typical JAD session can last between four days and an entire week and is usually
held away from the main office 
o A typical JAD team is has five to eight roles depending on the project. The roles are:
 Facilitator or the Session Leader: This individual organizes the sessions and
keeps the group focused on the task. The facilitator is impartial and should
remain neutral throughout the duration of the session to be able to effectively
mediate and resolve conflicts. The facilitator makes the rules and can
therefore change them if he sees fit. A good knowledge of the business
processes, good interpersonal skills and an outstanding ability to organize and
lead group is a must.
 Scribe or Documentation Expert: The scribe records and documents all the
sessions. The scribe is to seek clarity in meaning and is allowed to ask
questions but not in any way influence discussions. Skills necessary for this
position word processors or CASE tools (development tools that are used for
diagramming, form and report generating) for example.
 Project Manager: The manager who is involved in the sessions provides the
team with input that relates to the organizational direction and the impacts of
the system on the organization as a whole.
 End User or Client Representatives: The end user should have good
knowledge and experience in the field, are responsible for input concerning
system design and are the only participants with a clear idea of how the

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 system will be used in the work environment. As such these representatives
have to command the necessary authority and have great listening ability and
authority.
 Systems Analyst: The analyst attends to learn from the users and managers to
be able to better analyze the entire system. More often than not the analyst
does not have a prominent role in the team dynamics.
 IT and/or IS Representatives: This is normally made up of programmers and
other developers. This group is present to assess technical feasibility and
learn about future plans. For this role, the representative should be able to
listen as well communicate ideas and technical information.
 Executive Sponsor: This is usually a high-level manager or executive, who
charters the project. The sponsor makes the final decisions and finances the
project. Commitment of the sponsor to the project is of utmost importance
not only because of his role but also as a motivating force for the rest of the
team.
 Outside Observers: These members of the team are not allowed to participate
in the workshop on any level. They are mainly there to observe and gain
insight into the business area under investigation or become familiar with the
workshop process.
 Advantages of JAD
o It saves time and cost by replacing months of traditional interviews and follow-up
meetings.
o It is useful in organizational culture which supports joint problem solving.
o Fosters formal relationships among multiple levels of employees.
o It can lead to development of design creatively.
o It Allows rapid development and improves ownership of information system.
 Prototyping:
o Prototyping refers to an initial stage of a software release in which developmental
evolution and product fixes may occur before a bigger release is initiated. These
kinds of activities can also sometimes be called a beta phase or beta testing, where an
initial project gets evaluated by a smaller class of users before full development.
o Prototyping, as well as broad-spectrum testing and multiple software releases, is part
of a more detailed process for producing sophisticated software products and
services.
o The essential idea is that even when code features are complete on a project, the
software, which is still in development, may have many bugs and user problems. For
many of these to get ironed out, it helps if the software is actually in use, but
developers face the issue of releasing a product that end-users can see as essentially
flawed. Releasing the product to a smaller community or otherwise restricting its
development in stages can be a very effective solution.
o In some cases, prototyping might involve volunteers, while in other cases, special
clients or others with special status may be involved in prototyping. Development
teams and tech companies will typically elicit feedback on a product during
prototyping in order to fix problems before final distribution.
o There are some best practices for prototyping. These include the idea of demystifying
prototyping or making initial users more informed about the software itself. Another
principle is to fully communicate all activities to process stakeholders in order to
ensure that everyone is on the same page. Companies may also develop a more
detailed strategy for team meetings and other events around prototyping in a more
controlled chronology that can also help to make these activities more effective.

Role of System Analyst/Project Team Role and Skills:

 The system analyst is a person who is thoroughly aware of the system and guides the system
development project by giving proper directions. He is an expert having technical and

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 interpersonal skills to carry out development tasks required at each phase. He pursues to
match the objectives of information system with the organization goal.
 Main Roles
o Defining and understanding the requirement of user through various Fact finding
techniques.
o Prioritizing the requirements by obtaining user consensus.
o Gathering the facts or information and acquires the opinions of users.
o Maintains analysis and evaluation to arrive at appropriate system which is more user
friendly.
o Suggests many flexible alternative solutions, pick the best solution, and quantify cost
and benefits.
o Draw certain specifications which are easily understood by users and programmer in
precise and detailed form.
o Implemented the logical design of system which must be modular.
o Plan the periodicity for evaluation after it has been used for some time, and modify
the system as needed.
Attributes of a Systems Analyst

 Interpersonal Skills
o Interface with users and programmer.
o Facilitate groups and lead smaller teams.
o Managing expectations.
o Good understanding, communication, selling and teaching abilities.
o Motivator having the confidence to solve queries.
 Analytical Skills
o System study and organizational knowledge
o Problem identification, problem analysis, and problem solving
o Sound common sense.
o Ability to access trade-off
o Curiosity to learn about new organization
 Management Skills
o Understand users jargon and practices.
o Resource & project management.
o Change & risk management.
o Understand the management functions thoroughly.
 Technical Skills
o Knowledge of computers and software.
o Keep abreast of modern development.
o Know of system design tools.
o Breadth knowledge about new technologies.

The project initiation stage:

 The project initiation stage is situated at the very start of the project management life
cycle. This is the stage that precedes the actual start of the project.

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  The main goal of the initiation stage is to reduce the amount of uncertainty to an
appropriate level to make a final decision whether to approve the project or not. We need
to consider two types of risk:
o Business Risk: This kind of risk does not really belong to the field of project
management, but rather to the domain of product development. Nevertheless, it is
during the initiation stage that this risk needs to be assessed and reduced to
acceptable levels.
o Project Risk: Management of this risk is an essential part of project management.
The goal of the initiation stage is to provide a first estimated answer to this
question. It is important to realize that this answer is based on estimates with
varying accuracy.
 The project management stage is closely related to the Ideation and Design stage of the
product development life cycle. The more uncertainty needs to be removed, the more
detailed the design needs to become and the more effort must be put into the project
initiation stage.
 At a certain point, this can become so extensive that the initiation stage (and thus the
ideation and design stage of the product development life cycle) becomes a project on its
own.
 At the same time, there is an inherent risk of spending too much time on this stage.
Particularly in an environment that changes rapidly or where customer needs are not
stable, spending too much time and effort on the initiation stage can lead to a project with
low project risk, but high business risk.
 The start of this stage can sometimes be very clear, but often it is not. In case of an urgent
problem that needs attention; a clear precise directive can be given to initiate a project
which should solve the problem. In such a case, the start of the initiation stage is well-
defined.
 Often the idea for a project grows slowly inside the heads of a few people, who at a certain
point in time decide to follow a more structured approach and transition to a more formal
initiation stage.
 The project initiation stage consists of:
o Analysis of the problem/opportunity under consideration
o Development of a project proposal
o Stakeholder analysis
o Definition of the project rules
o Evaluation of the project proposal
 The project initiation phase is the first phase within the project management life cycle, as it
involves starting up a new project. Within the initiation phase, the business problem or
opportunity is identified, a solution is defined, a project is formed, and a project team is
appointed to build and deliver the solution to the customer.
 A business case is created to define the problem or opportunity in detail and identify a
preferred solution for implementation. The business case includes:
o A detailed description of the problem or opportunity with headings such as
Introduction, Business Objectives, Problem/Opportunity Statement, Assumptions,
and Constraints
o A list of the alternative solutions available
o An analysis of the business benefits, costs, risks, and issues
o A description of the preferred solution

Feasibility Study
 Feasibility Study can be considered as preliminary investigation that helps the management to
take decision about whether study of system should be feasible for development or not.
o It identifies the possibility of improving an existing system, developing a new system,
and produce refined estimates for further development of system.

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 o It is used to obtain the outline of the problem and decide whether feasible or
appropriate solution exists or not.
o The main objective of a feasibility study is to acquire problem scope instead of
solving the problem.
o The output of a feasibility study is a formal system proposal act as decision document
which includes the complete nature and scope of the proposed system.
Steps Involved in Feasibility Analysis
 Form a project team and appoint a project leader.
 Develop system flowcharts.
 Identify the deficiencies of current system and set goals.
 Enumerate the alternative solution or potential candidate system to meet goals.
 Determine the feasibility of each alternative such as technical feasibility, operational
feasibility, etc.
 Weight the performance and cost effectiveness of each candidate system.
 Rank the other alternatives and select the best candidate system.
 Prepare a system proposal of final project directive to management for approval.

Types of Feasibilities
 Economic Feasibility
o It is evaluating the effectiveness of candidate system by using cost/benefit analysis
method.
o It demonstrates the net benefit from the candidate system in terms of benefits and
costs to the organization.
o The main aim of Economic Feasibility Analysis (EFS) is to estimate the economic
requirements of candidate system before investments funds are committed to
proposal.
o It prefers the alternative which will maximize the net worth of organization by
earliest and highest return of funds along with lowest level of risk involved in
developing the candidate system.
 Technical Feasibility
o It investigates the technical feasibility of each implementation alternative.
o It analyses and determines whether the solution can be supported by existing
technology or not.
o The analyst determines whether current technical resources be upgraded or added it
that fulfil the new requirements.
o It ensures that the candidate system provides appropriate responses to what extent it
can support the technical enhancement.
 Operational Feasibility
o It determines whether the system is operating effectively once it is developed and
implemented.

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 o It ensures that the management should support the proposed system and its working
feasible in the current organizational environment.
o It analyses whether the users will be affected and they accept the modified or new
business methods that affect the possible system benefits.
o It also ensures that the computer resources and network architecture of candidate
system are workable.
 Behavioural Feasibility
o It evaluates and estimates the user attitude or behaviour towards the development of
new system.
o It helps in determining if the system requires special effort to educate, retrain,
transfer, and changes in employee’s job status on new ways of conducting business.
 Schedule Feasibility
o It ensures that the project should be completed within given time constraint or
schedule.
o It also verifies and validates whether the deadlines of project are reasonable or not.
Project Management:
 Project is a temporary endeavour undertaken to create a unique product or service. Projects
are unique. Projects are temporary in nature and have a definite beginning and end date.
Projects are completed when the project goals are achieved or it is determined the project is
no longer viable.
 A successful project is one that meets or exceeds the expectations of your stakeholders.
Project Management is the application of knowledge, skills, tools and techniques to project
activities to meet project requirements.
 Project management is accomplished through the use of the processes such as:
o Initiating
o Planning
o Executing
o Monitor and Controlling
o Closing
 Project managers or the organization can divide projects into above phases to provide better
management control with appropriate links to the on-going operations of the performing
organization. Collectively, these phases are known as the project life cycle.
 Project managers deliver projects while balancing the following constraints:
o Scope
o Schedule
o Quality
o Resources
o Customer Satisfaction
o Risk
 These all are so intertwined that a change in one will most often cause a change in at least one
of the others.
 For example:
o If time is extended, the cost of the project will increase.
o If time extended with the same cost then quality of the product will reduce.
o If scope is extended then cost and time will also extend.
o Changes to any of these legs sets off a series of activities that are needed to integrate
the change across the project.
 We need project management to manage projects effectively and drive them to success.
Project Management starts with the decision to start a project upon weighing its need and
viability. Once a project starts, it is crucial to watch the project progress at every step so as to
ensure it delivers what all is required, in the stipulated time, within the allocated budget.
 Other drivers influencing the need of project management are:

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 o Exponential expansion of human knowledge
o Global demand for goods and services
o Global competition
o Team is required to meet the demand with quality and standard.
o Improved control over the project
o Improved performance
o Improved budget and quality

Project Management Skills:

 Many of the tools and techniques for managing projects are specific to project management.
However, effective project management requires that the project management team acquire
the following three dimensions of project management competencies:
o Project Management Knowledge Competency: This refers to what the project
management team knows about project management.
o Project Management Performance Competency: This refers to what the project
management team is able to do or accomplish while applying their project
management knowledge.
o Personal Competency: This refers to how the project management team behaves
when performing the project or activity.

Project Staffing Management Plan:

 Staffing management plan and Resource management plans are important part of project
resource management. Every project will require resources for executing project activities.
There will be a need for both man power resources and physical resources. The resource
requirement for each activity will be estimated. The resources will be acquired during project
execution as per the schedule.
 Planning for resources, acquiring resources, developing team and managing team are the
important activities to be carried out as part of project resource management.
 A resource management plan will contain all the necessary guidelines for project resource
management.
 A staffing management plan will also be part of the overall resource management plan.
 Staffing management plan, which part of overall resource management plan will specifically
focus on the man power aspects of the project. Staffs are the most important part of project. It
is important to select and acquire the right staff with right skills at the right time.
 A staffing management plan contains a plan for addressing all the aspects of man power and
will include below information:
o Identification of human resources
o How the human resources will be acquired
o Criteria to be used for how the human resources will be selected
o From where the human resources will be acquired
o How to acquire resources from within the organization
o How to acquire resources from external sources
o When the resources will be acquired (based on the project schedule)
o When the resources will be released (based on the project schedule)
o Process for maintaining the resource calendars
o Resource loading table depicting total number of resources needed at different points
in the project
o Safety and security guidelines for the human resources
o Identification of training needs and plan for fulfilling the training needs of the team
o Rewards and recognition plan for the team
o How to build the team and enhance team performance

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 o How to monitor the performance of each team member and help keeping them
motivated
 Staffing is the most important part of project management. It is the staff who will actually
complete the project work. Staff will also consume the majority of project cost. Hence it is
extremely important to be very precise in planning and acquiring the right staff at the right
time for the right duration.
 It is also important to keep the staff members motivated and ensure their safety and well-
being. The staffing management plan help capture all these aspects precisely for effecting
staff management for the project.

Project Controls:
 Project controls are processes for gathering and analysing project data to keep costs and
schedules on track.
 The functions of project controls include initiating, planning, monitoring and controlling,
communicating, and closing out project costs and schedule.
 Ultimately, project controls are iterative processes for measuring project
status, forecasting likely outcomes based on those measurements, and then improving project
performance if those projected outcomes are unacceptable.
 Activities under the umbrella of project controls may include: 
o Aligning projects with portfolio/organization goals and objectives
o Developing a work-breakdown structure (WBS)
o Collaborating on initial project schedules 
o Developing a risk management plan
o Project budgeting and forecasting
o Monitoring project costs
o Feedback and reporting 
o Optimizing project strategies to enable better outcomes in the future
 While a project may deal with many parameters, such as quality, scope, etc., the discipline of
project controls focuses on the cost and schedule factors, continuously monitoring for any risk
to them. 
 Hierarchically, project controls nest under project management. A project controller could be
reporting to a project manager on a specific project or an entire portfolio of projects.
 Project controls are integral to successful project management, as it alerts project stakeholders
to potential trouble areas and allows them to course correct, if needed. 
 For project controls to succeed, they cannot be applied in spurts or in a vacuum. Rather,
project controls activities must run through the complete project life cycle—from the
initiation phase until closure—to monitor and control the various factors that impact cost and
schedule. 
 Interweaving project controls with the rest of project management provides timely insights
that empower project stakeholders to make the right decisions at the right time.
 
Processes That Define Project Controls:
 The strengths of project controls lie in their data-focused approach and attention to detail.
 A project manager does not simply want to know that there is a cost overrun, but rather wants
to know the root causes, the precise numbers, and how it can be fixed.
 This is where a fully integrated project controls solution can help with efficiency in getting
answers quickly, and visibility into performance that can reduce project costs. 
 Project Planning:
o Planning is one of the important steps in which controllers and project managers work
together. Whether it’s creating project plans, schedules, work-breakdown structures,
or cost estimates, planning gives everyone a baseline to work with throughout the
project.
 Budgeting:

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 o Integrating the budgeting process into project activities is essential to calculate costs
accurately and to understand when and why variances occur. By time-phasing
budgets and refining the numbers, a transparent model is available for senior
managers and team members alike to serve as both a benchmark throughout the
project and understand vitally important cash flows. 
 Risk Management: 
o Project controls provide a meticulous approach to managing risk. By pre-emptively
identifying risks, monitoring risk continuously, and developing contingency plans to
address and mitigate issues, it becomes possible to reduce impact on budget and
schedule. It also helps prevent some risks from happening in the future.
 Change Management:
o When a project deviates from its original estimates, it’s often not due to a single
factor, but due to the cumulative effect of several factors that tend to go unnoticed.
This is why change management is critical. By tracking changes and understanding
their impact, while following a clear process for evaluation, approval, and
accountability, projects can remain on their charted trajectory.
 Forecasting:
o By increasing the accuracy of estimates-at-complete, project controllers and
managers can gain a lot more insight into the current drivers of cost and schedule
overruns. Good progress measurement is a critical input to the forecasting process.  It
serves as the comparison against actual and committed costs that enable project
controllers to extrapolate a forecast using a combination of standard forecasting
methods and formulas. Regular, timely updates aid the project controller by enabling
faster response and corrective action to when a project begins to get off track.
 Performance Management:
o Defining and using key performance indicators (KPIs) to monitor project health and
forecast trends is crucial to take corrective actions. Organizations that use
performance information to manage projects, like the calculations used in Earned
Value Management, achieve a 68% success rate, compared to a 7% success rate for
projects that don’t leverage this data. 
 Project Administration:
o This process involves establishing processes and systems that can help team members
communicate and collaborate with each other. The goal is to track status updates,
capture meeting minutes and lessons learned, and manage workflows seamlessly so
teams can focus on actual execution rather than routine tasks. 
 
Project Controls vs. Project Management
 The overlap in function between these two disciplines can at times make it difficult to
differentiate between them. Many organizations assign the role of a project controller to one
of the project managers, making this even more confusing. However, it’s important to discern
the differences between these two in order to fully appreciate the role of project controls. 

Project Management:
 Project management is a holistic function that involves managing people, processes, and
deliverables in a project through various sub-functions. It focuses on quality and scope, in
addition to cost and schedule. 
 The objective of project management is more exhaustive in that it aims to successfully
complete a project given the resources available. 

Project Controls:
 Project controls are a sub-function and focus on just two parameters: cost and schedule.
People management and quality control, for example, does not fall under the purview of
project controls.

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  The main objective of project controls is to minimize the variance in costs and schedule from
what was originally planned. 
 Controls acts as a safety harness to project management. Sometimes project managers can
focus almost solely on delivery, which leaves less room to examine costs, deviation from the
project plan, and other variables involved. Project controls introduce a necessary reality check
for project managers, giving a more data-grounded view of how the project resources and
objectives are trending over time.
 At its core, project controls are part of a monitoring function that analyses scenarios and
provides recommendations. A project controller reports on cost and schedule and advises the
project team of potential issues. The actual execution of these recommendations is not done
by the controller, but rather by the project managers.
 Even though controls are a sub-function of project management, project controllers interact
with more than just the project managers that they report to. 
 A few team members that controllers interact with are:
o Project manager
o Finance team
o Vendors
o Construction manager
o Procurement team lead
o Technical team lead
 
Benefits of Project Controls:
 The following are some of the key benefits of project controls:
o Reduced project costs through ability to make timely decisions using KPIs
o Increased project predictability for cost and completion date
o Increased visibility into the financial health of the project at all stages
o Ability to mitigate project scope creep
o Meaningful benchmarking data for future projects via well-structured projects
o Increased margins when working in a fixed-price environment
o Improved reputation for properly managing and controlling projects
o Competitive advantage over organizations with less mature project management
capabilities
o Increased job satisfaction for project team members

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