Chapter 3

Question 1

What are the 4 phases of Systems Development Cycle or Project Life Cycle?

Answer 1

Phase A: Conception phase
Phase B: Definition phase
Phase C: Execution phase
Phase D: Operation phase

Question 2

What is the System Life Cycle?

Answer 2

1. Development/Installation
2. Operation
3. Enhancement, Replacement, or Termination

Question 3

The Stakeholders in Systems Development Cycle

Answer 3

1. Client
   - for whom the project is being done
   - pays for project
   - has needs and requirements to be met
2. User/Customer
   - operates or a beneficiary of project end-item
   - might be the same as a customer
3. System Development Organisation (SDC)
   - performs work for the customer
   - aka developer, contractor, consultant

Question 4

Describe what occurs during Phase A of the Systems Development Cycle

Answer 4

Phase A: CONCEPTION

• perceived need or problem
• initial screening or feasibility study; alternative solutions
• proposal
• concept approval or rejection

Question 5

Describe what occurs during Phase B of the Systems Development Cycle

Answer 5

Phase B: DEFINITON

• specify requirements in detail: user requirements and system requirements
• define project to produce end-item/deliver requirements: project master plan

Question 6

Describe what occurs during Phase C of the Systems Development Cycle

Answer 6

Phase C: EXECUTION

• design/development
• procurement/fabrication
• production/building
• installation

Question 7

Describe what occurs during Phase D of the Systems Development Cycle

Answer 7

Phase D: OPERATION

• customer gains control
• system developer might remain involved through maintenance, enhancement or replacement

Question 8

What is Phased Project Planning?

Answer 8

the stepwise fashion in which phases and stages in project life cycle are sometimes undertaken

Question 9

Fast tracking in Phased Project Planning

Answer 9

Phases tend to overlap so work in successive phases happens simultaneously
Pro: Shorten project life span
Con: Increased risk of a mistake

Question 10

What do you look into during the ‘initial investigation’ in Phase A?

Answer 10

• environment
• needs, symptoms, problem definition, and objectives
• prelim solutions and estimated costs
• benefits, strengths and weaknesses of each solution
• affected individuals and organisations

Question 11

Decision Criteria to proceed with a project (occurs in Phase A)

Answer 11

• needs are real
• funding is available
• project is consistent with goals and resources of organisation
• project has priority with respect to other needs
• project has value (new technology, organisational reputation, market share, profit etc)

Question 12

Feasibility assessment

Answer 12

the process of studying a need, problem, and solution in sufficient detail to determine if an idea is economically viable and worth developing
could be done in-house, or outsourced if specialised information is needed

Question 13

When is a project viable?

Answer 13

if concept is something that customer can handle itself: if it is passed along to an internal group for development and execution
if concept cannot be executed internally: given to outside contractors (SDOs)

Question 14

Steps in the feasibility study

Answer 14

1) Gain full understanding of user’s problem, need and current situation
2) Document current system –> systematic diagrams and summarise all information collected
3) Formulate alternative solutions
4) Analyse alternatives –> use models to assess the ability to meet user criteria
5) Include solution in proposal
6) Feasibility involves analysis of environmental impact

Question 15

What is a Request for Proposal (RFP)?

Answer 15

A document sent by a customer to potential contractors explaining the problems, objectives and requirements

Question 16

What is the purpose of a RFP?

Answer 16

Describes the customer’s needs, problems and ideas
Solicit suggestions/solutions from SDO
Inform how SDO should respond to RFP (where to sent, who, what to include)

Question 17

What does a Request for Proposal (RFP) include?

Answer 17

1) Statement of work
- description of problem/need/general type of solutions to be investigated
- scope of work to be performed by the contractor

2) Proposal requirements
- conditions placed on the proposal such as proposal contents and format, submission deadline etc

3) Contractual provisions
- type of contract to be awarded, sample contract, nondisclosure provisions

4) Technical information or data
- any additional data necessary to develop a solution and prepare the proposal

5) Proposal evaluation criteria
- explanation of criteria and procedures for assessing the proposal and selecting a contractor

Question 18

The SDOs decision to respond to the RFP depends on:

Answer 18

• whether the competitors have a head start
• whether the SDO have funds and resources available to devote to a project
• value of project in terms of work reputation, profitability (i.e., is it worth it?)
• if the project is doable for the SDO

Question 19

The contents of an Environmental Impact (EI) Statement

Answer 19

1. summary of proposed development/management plans
2. alternative sites and technologies for the proposed project
3. description of the project’s existing site and surrounding area
4. potential project impacts
   - quality of air, soil, watersheds, wetlands, flood plains
   - fisheries; sensitive plants; sensitive, endangered or threatened species
   - scenic resources; societal and aesthetic experiences
   - heritage resources (sites, structures, buildings)
   - historical resources (logging, ranching, grazing)
5. adverse impacts that can’t be avoided
6. long-term impacts on resources
7. ways to prevent, minimise or offset impacts; ways to monitor actual impacts

Question 20

Purpose of project proposal

Answer 20

1) Sales
- SDO describes what they will do
- proposal needs to convince customer that the SDO will be their best option
- getting contracts depends on the proposal
2) Contract
- customer assumes that SDO will deliver what has been promised in the proposal
- if customer and SDO sign off, whatever is in the proposal must be delivered

Question 21

Contents of a proposal

Answer 21

1. Executive summary
2. Technical section (statement of work)
3. Cost and payment section
4. Legal section
5. Management/Qualification section

Proposal must reflect the RFP
Should not be too detail; can use proposal as guide to do themselves

Question 22

Executive Summary (in the proposal)

Answer 22

• more personal than the proposal
• states the contractor’s qualifications and experience
• draws attention to what makes the proposal unique, price, and the contractor’s ability to do the project
• identify contact person with the contractor

Question 23

Technical Section - Statement of Work (in the proposal)

Answer 23

• scope of work and planned approach
• based on the work breakdown structure (WBS) –> Includes major project phases, key tasks, milestones, and reviews
• schedule (for deliverables)
• describe realistic benefits in detail
• recognise and discuss problems and limitations to approach
• specific

Question 24

Cost and Payment Section (in the proposal)

Answer 24

• breakdown of projected hours, associated labour charges and material expenses
• addresses contractual arrangement (in terms of price) and method of payment

Question 25

Legal Section (in the proposal)

Answer 25

- contains problems (anticipated, possible or likely) and provisions for contingencies

Question 26

Management and Qualification Sections (in the proposal)

Answer 26

- background of contractor organisation, related experience and achievements and financial responsibility - organisation of management and resumes of project manager (and key project personnel) - big influencing section (in combination with statement of work)

Question 27

What does the customer evaluate the proposals based on?

Answer 27

Cost Benefits Likelihood of success Contractor reputation

Question 28

What happens when we are left with more than one good proposal after narrowing down the list with the usual criteria?

Answer 28

We enter negotiations

Question 29

Negotiations

Answer 29

customer and SDO meet to - clarify terms - reach agreements (on requirements, schedule or price) Project Manager is involved and show know - terms of the contact and areas open to negotiation - customer's need for this project - competition

Question 30

Contract negotiation

Answer 30

process of clarifying technical or other terms in the contract and reaching an agreement on time, schedule, and performance obligations

Question 31

Types of contractual agreements

Answer 31

1) Fixed Price Contract - customer pays fixed price, no matter what costs the contractor incurs 2) Cost-Plus Contract - customer price is based on costs incurred in the project and contractor's fee 3) Incentive Contract - customer's price depends on contractor's performance in comparison to the target price, schedule or technical specification (resulting in a bonus or penalty)