1802/7002ICT Project Management Plan for System Development

This document presents a comprehensive project management plan for the development of an information system for the ABC organization, a car parts and tools business. The current manual processes are identified as a problem, and the proposed system aims to automate inventory management, client details, and financial tracking. The plan outlines system capabilities, expected business benefits (reduced response time, increased customer satisfaction), and quantifies project approval factors. It includes a detailed project schedule, development cost breakdown ($37,160.00), annual operating cost ($2000), and a cost-benefit analysis demonstrating a positive net present value and ROI. A risk and feasibility analysis addresses organizational, technological, resource, and schedule risks. The project environment is established with hardware and software requirements, a cooperative work environment, and defined processes and procedures, culminating in a work breakdown structure and Gantt chart for project monitoring. The estimated annual benefits are $10,000, derived from increased sales and reduced employee salary costs.

Running head: SYSTEM ANALYSIS AND DESIGN
System Analysis and Design
Name of the Student:
Name of the Student:
Author Note

1
SYSTEM ANALYSIS AND DESIGN
Table of Contents
Identify the problem...................................................................................................................2
Problem Description...............................................................................................................2
System Capabilities................................................................................................................2
Expected Business benefits....................................................................................................2
Quantify project approval factors...............................................................................................3
Project Schedule.....................................................................................................................3
Development cost of the project............................................................................................4
Annual Operating cost of the project.....................................................................................6
Cost benefit Analysis.............................................................................................................7
Estimated Annual Benefits.....................................................................................................7
Perform a Risk and Feasibility Analysis....................................................................................8
Organizational Risks and Feasibility.....................................................................................8
Technological risks and feasibility.........................................................................................8
Resource Risks and Feasibility..............................................................................................9
Schedule Risks and Feasibility...............................................................................................9
Establish the Project Environment.............................................................................................9
Planning and Monitoring activities........................................................................................9
Work Environment...............................................................................................................13
Process and the Procedures to be used.................................................................................14
Work Breakdown Structure..................................................................................................14
Gantt Chart...........................................................................................................................15

2
SYSTEM ANALYSIS AND DESIGN
Bibliography.............................................................................................................................16

3
SYSTEM ANALYSIS AND DESIGN
Identify the problem
The report is concerned with the project of development of an information system for
the ABC organization. The report includes the details of the development of the project and
the different type of feasibility study that would justify the project.
Problem Description
The ABC company which is being considered is a car inventory business who sells
tools and parts of the cars for rectifying them. All the process of storing the details of the
finances and client details are done in the organization manually in the current situation.
Hence the process of serving the clients and maintain efficiency in the business procedures
are hampered to a great extent.
System Capabilities
The system which is to be designed would be able to perform the tasks of automating
the process of the business of the organization. The system should be able to perform the
tasks of storing the details of the inventory system into a database so that the staffs of the
organization can easily update their customers about the product and also make an efficient
financial structure with much of a fuss.
Expected Business benefits
After the implementation of the system the organization would be able to speed up
their procedures and reduce the overall response time for their customers. The system would
also benefit the organization financially and help them to achieve a higher level of customer
satisfaction.

4
SYSTEM ANALYSIS AND DESIGN
Quantify project approval factors
Project Schedule
The Schedule of the project is provided below:
Task Name Duration Start Finish
Inventory Storage System 47 days Mon 03-09-18 Tue 06-11-18
Project Initiation 5 days Mon 03-09-18 Fri 07-09-18
Meeting with the clients 1 day Mon 03-09-18 Mon 03-09-18
Present process Analysis 2 days Tue 04-09-18 Wed 05-09-18
Identification of the areas for
improvement
1 day Thu 06-09-18 Thu 06-09-18
Requirement Analysis 1 day Fri 07-09-18 Fri 07-09-18
Project Planning 2 days Mon 10-09-18 Tue 11-09-18
project schedule 1 day Mon 10-09-18 Mon 10-09-18
Budget Allocation 1 day Tue 11-09-18 Tue 11-09-18
Project Design 7 days Wed 12-09-18 Thu 20-09-18
Hardware and Software Procurement 2 days Wed 12-09-18 Thu 13-09-18
Hardware and Software Set Up 3 days Fri 14-09-18 Tue 18-09-18
Wireframe designs 2 days Wed 19-09-18 Thu 20-09-18
Project Implementation 21 days Fri 21-09-18 Fri 19-10-18
Database Setup 5 days Fri 21-09-18 Thu 27-09-18

5
SYSTEM ANALYSIS AND DESIGN
Front end designing 7 days Fri 28-09-18 Mon 08-10-18
Back end Design 5 days Tue 09-10-18 Mon 15-10-18
Project Integration 4 days Tue 16-10-18 Fri 19-10-18
Project Testing 6 days Mon 22-10-18 Mon 29-10-18
System Testing 2 days Mon 22-10-18 Tue 23-10-18
Upgrade the system 4 days Wed 24-10-18 Mon 29-10-18
Project Delivery 4 days Tue 30-10-18 Fri 02-11-18
Preparation of Project Manual 2 days Tue 30-10-18 Wed 31-10-18
Delivery of the Project Documentation 1 day Thu 01-11-18 Thu 01-11-18
Uploading the project on the domain of
the Organization
1 day Fri 02-11-18 Fri 02-11-18
Maintenance 2 days Mon 05-11-18 Tue 06-11-18
Assignment of the personnel to the
project
1 day Mon 05-11-18 Mon 05-11-18
Scheduling project maintenance 1 day Tue 06-11-18 Tue 06-11-18
Development cost of the project
The development cost of the project is provided below:
Task Name Cost

6
SYSTEM ANALYSIS AND DESIGN
Inventory Storage System $37,160.00
Project Initiation $1,920.00
Meeting with the clients $320.00
Present process Analysis $640.00
Identification of the areas for improvement $480.00
Requirement Analysis $480.00
Project Planning $640.00
project schedule $320.00
Budget Allocation $320.00
Project Design $26,600.00
Hardware and Software Procurement $13,360.00
Hardware and Software Set Up $12,600.00
Wireframe designs $640.00
Project Implementation $4,120.00
Database Setup $1,000.00
Front end designing $840.00
Back end Design $1,000.00
Project Integration $1,280.00

7
SYSTEM ANALYSIS AND DESIGN
Project Testing $1,760.00
System Testing $320.00
Upgrade the system $1,440.00
Project Delivery $1,480.00
Preparation of Project Manual $640.00
Delivery of the Project Documentation $320.00
Uploading the project on the domain of the
Organization
$520.00
Maintenance $640.00
Assignment of the personnel to the project $320.00
Scheduling project maintenance $320.00
Annual Operating cost of the project
The Annual Operating Cost of the project is around $2000 dollars. The detail of the
resource Sheet is provided below:
Resource Name Type Material Label Initials Group Max. Units Std. Rate
Project Manager Work P 100% $40.00/hr
System analyst Work S 100% $20.00/hr
Database Designer Work D 100% $15.00/hr

8
SYSTEM ANALYSIS AND DESIGN
Server machine Material S $7,000.00
System Developer Work S 100% $25.00/hr
Software Platform Material S $5,000.00
System Designer Work S 100% $15.00/hr
Cost benefit Analysis
The Cost benefit analysis of the project is provided below:
Cost benefit analysis for Infromation System
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Annual benefits $0 $10,000 $10,000 $10,000 $10,000 $10,000
Development cost ($37,160) $0 $0 $0 $0 $0
Annual Operating Cost $0 ($2,000) ($2,000) ($2,000) ($2,000) ($2,000)
Net benefit/costs $20,000 $0 $0 $0 $0 $0
Net cash flow ($17,160) $8,000 $8,000 $8,000 $8,000 $8,000
Discount factors
Discount rate 5%
Year Index 0 1 2 3 4 5
Discount factor 1 0.95 0.91 0.86 0.82 0.78
Discounted flows
Cost ($37,160) ($1,905) ($1,814) ($1,728) ($1,645) ($1,567)
Benefit $20,000 $9,524 $9,070 $8,638 $8,227 $7,835
Net ($17,160) $7,619 $7,256 $6,911 $6,582 $6,268
Cumulative ($17,160) ($9,541) ($2,285) $4,626 $11,208 $17,476
Net present value $17,476
ROI 19%
Payback Analysis
Years Months
1 16
Payback Period in Years 2.31

9
SYSTEM ANALYSIS AND DESIGN
Estimated Annual Benefits
The annual benefits from the project is estimated at $10,000. These benefits are
obtained from the staff’s salaries and the increased sales rate for the organization. A detailed
report is provided below:
Estimated Annual Benefits
Annual Income
Benefits of the increased sales $ 6,t000.00
Employees Salary Benefits $ 4,000.00
Total $ 10,000.00
Perform a Risk and Feasibility Analysis
Organizational Risks and Feasibility
The organization deals with a car parts business, and hence the organization requires
an efficient storage system that would be helpful for them in storing the major details of the
product catalogues and the information about the incomes and expenses of the business. The
current procedures in the organization requires the work to be done manually. And this takes
up a lot of time. Hence, the introduction of the information system for the organization is
very beneficial for the business of the ABC Organization. However, there is risk involved
with the introduction of the system to the organization and that is their employees would be
losing out on their position if the procedures in the organization arte automated. However, on
the other side this would be reducing the costs of the organization and the organization would
an overall benefit from the system hence the project is feasible for the organization.

10
SYSTEM ANALYSIS AND DESIGN
Technological risks and feasibility
The introduction of the inventory system would be technically feasible for the
o0regnication as this would help the organization to speed up their processes and reduce the
response time for their clients to a great extent. The procedures within the organization would
be automated with the help of the IT services. However, there is chance of employees facing
difficulty in performing their tasks in the system, although this can be mitigated easily by
providing proper training to the employees and also submitting the documentation and the
manual of the project to the office so that the employees can understand the details of project
and work efficiently on the system.
Resource Risks and Feasibility
The main risk with the resources is that the project does not follow the iterative model
and hence the risk of the resources falling short can take place. This affect the progress of the
project and stall the further progress of the project. There might be situations where are the
project has to be stopped due to lack of resources. Additionally, there can be situation where
the resource allocated are more than abundant for the project then there is chance of
unnecessary expenses for the organization. However, this can be mitigated with proper
planning and budget analysis and according to the cost benefit analysis and project schedule
the project is economically feasible and hence, the risks regarding the resources can also be
addressed easily.
Schedule Risks and Feasibility
The project schedule is created according to the plan for the implementation. One of
the risk involved with the schedule of the project is that the project has been estimated to be
completed in around 47 days and if the project takes longer than 47 days then the cost
estimation done with respect to the schedule of the project, and hence any alteration in the

11
SYSTEM ANALYSIS AND DESIGN
schedule would also change the estimation in budget of the project. However efficient
planning would result in the feasibility of the schedule of the project.
Establish the Project Environment
Planning and Monitoring activities
The details of the hardware and the software required for the development of the
system has been described in the tables provide below. The table below provides the details
of the hardware for the system:
Hardware Requirement for the system
Location
Computer Name or
Hardware
Description
Manuf
acture
r
Model
CPU
speed
R
A
M
Ha
rd
Dri
ve
Siz
e
Serial
Numbe
r
Repla
cemen
t Cost
Manage
ment
Project
Manag
er
Needs the
system for
assigning the
tasks HP
Comp
aq
6200
2120(
3.30G
Hz)
4
G
B
30
0G
B
MXL2
0728
6B
$650.
00
Admini
strator
Monitoring the
systems
1
G
25
0G
STY23
1DS
$200.
00