Workbook 1 Flashcards

Question

What is effective stakeholder engagement?

Answer 1

Is a key part of ensuring a successful project and failure to keep stakeholders involved and on-side is a common cause of project failure.

Answer 2

The various stakeholder groups will be included in the formal communications plan and a strategy for managing them will be developed.

Answer 3

The hierarchy represents project stakeholders who have particular roles and specific responsibilities for the success of the project.

Answer 4

Named individuals or groups should be appointed to each of the roles in the hierarchy with a clear allocation of responsibility and authority between them. Information usually passes up through the hierarchy for review,approval or problem solving. The frequency, format and recipients of project reports from the different stakeholders in the hierarchy should be agreed in advance to ensure control and effective decision making.

Answer 5

May be a single senior manager or a project board that has the ultimate responsibility for the project’s success and final approval for the funding. Makes investment decision.

Answer 6

The project’s client is the individual(s) or organisation that specifically requested or required the project outputs ( person/ organisation that requested the project). It is the client that details the project requirements. The sponsor and client can be the same person, but are also often different people , as it depends on the nature of the project.

Answer 7

The customer is the end user of the project outputs and it is their needs the project is designed to meet. For many projects there will be more than one customer.

Answer 8

The project manager is responsible for managing all aspects of the project, to achieve the stakeholder’s objectives and overall project output. It will be the project manager that feeds back information on schedules and status reports from the team to the other stakeholders.

Answer 9

Is known as managing the 3 P’s which are: -People- project team,suppliers, stakeholders. -Process-planning, organising and controlling all the activities required to achieve the project objective. -Product-delivering the end result on-time, within budget and to the specification required.

Answer 10

Advantages- High quality outcomes as better communication between stakeholders and effective management of project team, reduced final cost resulting from efficient use of resources and careful adherence to the project plan. Disadvantages- Project managers are expensive, reduction in creativity as project manager is focused on managing resources and delivering within agreed timeframe.

Answer 11

A project team is responsible for achieving project tasks that make up overall project and is often brought together specifically for the project and will: - Be responsible for carrying out the individual project tasks required to deliver the final project outcomes. - Contain people from different departments and/or organisations and from different disciplines. -Often be managed outside the normal management structure. -Be led by the project manager.

Answer 12

The project accountant is responsible for managing, updating and monitoring the project budget. The project accountant will use the concept of ‘project accounting’ and report directly to the project manager.

Answer 13

The key features of a project accounting are: -Project finances are recorded in a separate account from operational spending because they are not part of day to day activities. -Because project spending is harder to predict than day to day operational spending, it is essential that a rolling budget approach is taken and the impact of current information is used to update future forecasts. -One of the major components of many project budgets is the labour cost. The use of labour time will therefore need to be reforecast throughout the project and the updated predictions used to recalculate the expected labour cost. -Cross department charges. Disagreements can arise when staff are taken from operational departments to work on a project. Departmental heads may wish to charge the project budget for the time spent by staff from their department and it is vital that the specifics of any such charges are determined and agreed in advance to prevent later difficulties.

Answer 14

An organisation’s finance director usually sit on the project board of major project. Their specific focus will be on monitoring the objectives of the business case and determining the effect of any changes on the anticipated financial benefits. Also, responsible for resolving resource issues and the finance director will have the authority to review budgets and allocate resources as needed.

Answer 15

To identify the various stakeholder groups ( including external stakeholders) and provide the information needed by the project sponsor to ensure they are managed effectively. As the people will make a change, you need to establish who will be affected along with the potential impacts.

Answer 16

The justification for and expectations from the project must be properly understood by all those involved.

Answer 17

They have defined the: business case, project outputs, quality plan and success criteria.

Answer 18

A business case provides the formal justification of the project and a base against which the ongoing viability of the project can be evaluated.

Answer 19

It should include: - The reasons for undertaking the project.i.e: project objectives. -The other options considered and why this particular option has been chosen. -The benefits expected from the project. i.e: increased revenues. -Approximate costs. -Approximate timescales- the date by which major milestones should be achieved. -Summary of the main risks. -Supporting investment appraisal calculations.

Answer 20

The process should not continue further. The project sponsor, along with the client and project manager, should review the options available and determine an alternative course of action.

Answer 21

1- Cost -the budget agreed- Public service organisations are limited by resources available and little flexibility to provide additional funding if original budget is underestimated. 2- Timescales- the deadlines for delivery of the project’s outputs- often projects will have specific deadline by which it must be completed. 3- Project scope- the specific project characteristics, outputs and results which will be delivered- The greater the project scope ( the more that is asked for), the more time and money will be required to achieve it.

Answer 22

The specific scope of the project and the outputs or deliverables required must be clear,y identified and agreed. The aim is not to detail every project task but to refine the five or six major milestones identified in the business case into major stages or steps required to achieve them

Answer 23

Must be determined reference to: -Any legal or practical requirements for the project and -The customer’s quality expectations As part of the planning process the quality standard for each process or output must be determined and agreed.

Answer 24

Once the outputs have been agreed, the stakeholders must agree indicators of success. These indicators relate directly to objectives for the project , which are capabilities that the organisation is looking to gain from its implementation.

Answer 25

Relates to specific outputs, delivery dates and costs.

Answer 26

The success of the project may be measured by soft criteria relating to user satisfaction. This relates to the experience of the customers ( both during the project and afterwards when using the result) and the performance of the organisation. This is important as a project may be deemed a success in terms of project management and yet a failure in terms of overall user experience.

Answer 27

-Has project been successful. -Hard criteria is tick box but soft criteria is more informative feedback.

Answer 28

Is to categorise the benefits for which measures should be determined: -Direct monetary benefits- quantifiable in financial terms (cost savings). -Direct non-monetary benefits-tangible and specifically measurable using KPIs (fewer customer complaints). -Indirect benefits- Identifiable but harder to measure (greater staff motivation). KPIs may be developed but will require more inventive solutions (staff satisfaction surveys).

Answer 29

The key information needed to start the project should be drawn together into Project Initiation Documentation. This can be one or several linked documents depending on the project.

Answer 30

-What the project is intended to achieve. -Why it is important to achieve it. -Who is going to be involved in the project and their roles and responsibilities. -How and when it is going to happen and how much it should cost. -How success will be measured.

Answer 31

The project sponsor will review the PID to confirm that the project has a sound business basis before formally approving it to proceed to the detailed planning stage.The PID will also provide a base for the sponsor and the project manager to evaluate the subsequent progress and success of the project.

Answer 32

The detailed project planning can begin. Project planning is a key process in the achievement of the project objectives and can take months, if the project is complex.

Answer 33

Each of the project milestones must be further broken down into stages,products or deliverables, and work packages.

Answer 34

Is a tree structure that subdivides the work needed to achieve an overall project objective into distinct, definable,measurable pieces (products). It shows all the steps which must be taken to achieve the objective. It has four main purposes: 1-To ensure the scope of the total project is defined and organised. 2-To help assign responsibilities and allocate resources. 3-To permit accurate estimation of time and costs and any potential risks. 4-To allow for monitoring and controlling the project.

Answer 35

First needs to be broken down into logical stages.This is done as part of the project initiation stage and will be included in the PID

Answer 36

The separate outcomes or deliverables are known as products. All products to be achieved within a stage are identified and listed in detail.

Answer 37

All the products defined by the project scope must be included in this structure and this rule applies at all levels of hierarchy.

Answer 38

Each deliverable must be mutually exclusive- no overlaps. Ensures clear allocation of responsibilities.

Answer 39

Once the detailed product hierarchy has been produced, a work package for each product at the lowest level of hierarchy can be developed. Work package contains the details of actual work to be done.

Answer 40

Network diagrams Gantt chart

Answer 41

Both are pictorial representations of the project which show the interdependencies between the activities and the order in which they must be carried out. Also, highlight the critical path, the longest route through all the dependent activities and therefore shortest time in which the project can be completed.

Answer 42

A network diagram is particularly useful for understanding dependencies. But a Gantt chart’s strength is that it provides an overview of the project schedule and the duration of each activity can be clearly identified.

Answer 43

- Activity: the individual tasks which must be carried out to complete the project. Each activity takes time – this is its duration. - Event: each activity must have a start and a finish. These points are called events. They have no duration; they are simply points in time. Significant events, such as those on the critical path, are sometimes referred to as milestones. - Critical path: the longest sequence of activities through a project from the start event to the finish event. The critical path therefore defines the project duration – the minimum amount of time the project can take. Activities on the critical path are known as critical activities. -Non-critical activities: These activities have a float which means the activity can be delayed by the length of the float without causing a delay to subsequent tasks.

Answer 44

Yes some can be going on at the same time if they are no dependencies ( one activity cannot start until another activity is complete).

Answer 45

In the diagram, each activity is represented by a line with an arrowhead which indicates the flow of time. Each activity is labelled to show its name and / or its identifying code (in this case A, B, C, etc.). The time required for each activity is also shown. Activities start and finish at events, which are represented in the diagram as circles. Each activity has a start event and a finish event. Each event circle is numbered only to identify it and the numbers do not offer any additional information.. The activities on this path take a total of 9 days, so that is the shortest period in which the project can be completed, unless some way can be found to speed up one or more of the critical activities.

Answer 46

A Gantt chart uses the same information as a network diagram - activity durations, dependencies, critical paths and floats. The information, though, is presented in a different format. In a Gantt chart the activities are shown as horizontal bars with their lengths representing how many weeks each will take.

Answer 47

A communications plan is an essential tool for managing stakeholders throughout the project. The importance of this plan cannot be overstated. Lack of stakeholder engagement is a regular feature of failed projects.

Answer 48

The aim of the plan goes beyond pacifying potentially problematic stakeholders, to fostering support, incorporating relevant feedback into the project’s activities in a timely fashion and ensuring that the users of the project’s outputs are able to benefit from them after its completion.

Answer 49

The first stage is to identify all those parties that: * Will need to provide information to the project team. * Will require information from the project manager. The stakeholders to be included are not just those directly involved in the project process but also relevant stakeholder groups with an interest in the project outcomes. For each stakeholder group identified, a plan should then be developed to show in detail: * The objective of the communication and the key messages to convey. * How and when the information should be supplied.

Answer 50

* Cost * Degree of coverage required * Degree of consistency required * Speed of feedback required * Complexity of the message * Personalisation of the message * Need for two-way communication * Need to engender team spirit * Demographic and expectations of the stakeholders

Answer 51

A template for a standard communications plan is shown below. The specific relevant stakeholder groups will need to be adapted to suit the specific context of the project.

Answer 52

* Planned work budget – The planned work activities are costed against the project plan. This budget is then allocated to the project manager to manage the agreed, planned activities. * Change budget – The project manager may have an agreed level of budget available to spend on requested changes to the project. If the budget is exceeded, the project manager would need board approval for budget changes to cover further costs arising from a change. In some cases, an intermediate authority known as change authority can be agreed as part of the project governance set up – this person can then approve changes which are higher than allowed to the project manager initially, up to the level where board approval is still required. This would be set to balance a level of control with speed of decision-making. * Risk budget – The project board can set a level of budget for the project manager to use to manage risk. This budget cannot be used for changes (changes in scope) or overruns (possible impact of a risk materialising) but to take actions to mitigate a risk.

Answer 53

Risk can be defined as the uncertainty of an outcome, whether positive opportunity or negative threat, of actions and events. In the context of a project, the focus is almost exclusively on the potential for negative threats which may thwart the project’s objectives.

Answer 54

Formal risk management system.

Answer 55

The risk management process involves three stages: 1. Identifying risks 2. Assessing the risks identified 3. Developing a suitable response.

Answer 56

A risk assessment should be performed: * At the start of the project: The project should only be given the go ahead if the risks are assessed as acceptable and the risk management plan is approved. We will be looking in detail at the contents of a risk management plan in the rest of this section. * At the end of every stage: Existing risks should be reviewed and the new risks associated with the next stage analysed. The project should only continue to the next stage if the risk profile continues to be acceptable. * Every time a change to the project is requested: The implication of the change on risk avoidance or reduction activities should be considered before the change is approved. * At the end of the project: Any outstanding risks may affect the operation of the products during their useful lives.

Answer 57

To identify the risks, a designated team may be established to carry out a project risk review, sometimes called a risk workshop. Sometimes, all those involved in the project may be asked to review the activities they are responsible for and identify any risks they face. In a large and complex project, a project manager will not be able to identify all the risks involved without the involvement of the project team and key stakeholders.

Answer 58

It is important to distinguish between: * Inherent risk: The exposure arising from a specific risk before any action has been taken to manage it. * Residual risk: The exposure arising from a specific risk after action has been taken to manage it, assuming that the action is effective.

Answer 59

Consider the example of wearing a seat belt in a car – there is an inherent risk of injury but the action of wearing a seat belt does not eliminate the risk but reduces the risk, so the residual risk is that injury is less likely or its impact can be less severe.It is the residual risk which represents the actual risk exposure of the project and it is that which should be acceptable and justified – i.e. it should be within the organisation’s risk tolerance.

Answer 60

A critical factor in identifying risks is understanding that risks must be related to objectives.Specifically about the risk to the project, so it is key to identify the specific risks to the project objectives.It is important to take care to identify the risk to the project objectives and not confuse this with the impact of the risk if it materialises.

Answer 61

Objective: To travel by train from A to B to get to a meeting for a certain time.

Answer 62

* The organisation must decide on its risk tolerance or appetite, i.e. the level of risk it is prepared to tolerate. * The risks identified must be categorised according to their impact and likelihood * The significance of the risks must be determined based on their impact and likelihood and the organisation’s risk appetite

Answer 63

Risk appetite is defined as “the level of exposure which is considered tolerable and justifiable should it be realised … it is about comparing the cost (financial or otherwise) of constraining the risk with the cost of the exposure should the exposure become a reality and finding an acceptable balance.”A statement of risk appetite is essential to provide management with guidance about the level of risk they are permitted to take.

Answer 64

* Averse: Avoidance of risk and uncertainty is a key organisational objective. * Minimalist: Preference for ultra-safe business delivery options that have a low degree of inherent risk and only have a potential for limited reward. * Cautious: Preference for safe delivery options that have a low degree of residual risk and may only have limited potential for reward. * Open: Willing to consider all potential delivery options and choose the one that is most likely to result in successful delivery while also providing an acceptable level of reward (and value for money etc.). * Hungry: Eager to be innovative and to choose options offering potentially higher business rewards, despite greater inherent risk.

Answer 65

Many of the risks faced by the project will require subjective assessment.The framework used to assess risk must therefore take account of both quantitative and qualitative factors

Answer 66

* Time * Cost * Quality * Benefits * People/resources.

Answer 67

The most straightforward risk matrix is a 3x3 risk matrix in which both the risks and their related likelihoods are categorised as either low, medium or high.

Answer 68

A more detailed scale may be used where it is possible to apply accurate values, for example a 5x5 matrix where: Impacts are categorised as insignificant /minor / moderate/ major/ catastrophic.

Answer 69

The UK HM Treasury gives the following classification as an example of how risk impacts may be categorised in a 5x5 matrix: * Very high – catastrophic: Above the organisation’s defined tolerance level. Consequences of the risk materialising would have a disastrous impact on the organisation’s reputation and business continuity. * High – major: The consequences of this risk materialising would be severe but not disastrous. * Medium – moderate: The consequences of this risk materialising would have a moderate impact on day-to-day delivery. * Low – minor: The consequences of this risk materialising would have a minor impact. * Very low – insignificant: The organisation accepts this risk / impact of risk would be insignificant. Likelihood is measured on a scale of rare / unlikely /possible / likely / almost certain.

Answer 70

Probability: Estimate the probability of the risk event happening. (pg66)

Answer 71

Impact: Estimate the potential severity if the risk event occurs. (pg66)

Answer 72

Multiply the scores for risk probability by the potential impact to give an overall score. Compare the overall score to the action and authority table below: (pg66)

Answer 73

-Decide whether to take action to deal with the risk. -Determine what action to take,where it is considered necessary. -Record the process in a formal risk log.

Answer 74

Is a commonly used approach to determine a response to downside risk. This suggests one of four responses: 1-Tolerate 2-Treat 3-Transfer 4-Terminate

Answer 75

1- Tolerate- take no further action. 2-Treat-Action is taken constrain the risk to an acceptable level by implementing controls. 3-Transfer-Transfer the risk to a third party. 4-Terminate-Cease the activity.

Answer 76

1-Tolerate- Risk is tolerable and a contingency plan may be developed to handle the impact if the risk is realised. 2-Treat-Most risks fall into this category.The activity can continue as the risk is constrained to an acceptable level. 3-Transfer-Useful for financial risks/risks to assets.Some risks cannot bd transferred like damage. 4-Terminate-Of particular relevance in managing projects if the cost/benefit relationship is threatened.

Answer 77

Involves implementing controls to reduce the risk to an acceptable level.

Answer 78

1- Preventive controls-designed to limit the possibility of the undesirable outcome occurring. E.g: segregation of duties. 2- Directive controls- Designed to ensure a particular outcome is achieved. E.g: training staff with new equipment. 3- Corrective controls- designed to correct undesirable outcomes if they occur. E.g: contingency plans. 4-Detective controls-designed to identify where undesirable outcomes have been realised. Operate after the event and so are appropriate where the loss or damage can be accepted. E.g: inventory checks.

Answer 79

As it's purpose is to: 1-Facilitate identification of the risk priorities and the significant risks issues. 2-Allow for the escalation of risks considered beyond the tolerability threshold. 3-Explain why specific decisions have been made. 4-Allow for ongoing monitoring and risk reviews.

Answer 80

Risks are recorded in a risk log and they are monitored and reassessed to determine whether further action is needed.

Answer 81

RAID stands for Risks, Assumptions, Issues and Dependencies. The RAID log would include a separate log for each of the 4 areas of concern: 1- Risks- Possible future negative events which may occur. 2-Assumptions-Events that are set as true for the project to go ahead if they fail to hold true the project fails.The log should record each assumption. 3-Issues- Things that may occur now which will affect the project but may have not been addressed. 4- Dependencies- Products that may be delivered to enable project's delivery or products to be delivered by project on which other projects depend.

Answer 82

The log provides stakeholders with evidence of the project's status and helps to determine the agenda for project meetings.

Answer 83

-Lack of skills and proven approach to project management and risk management. -Lack of stakeholder engagement -Lack of clear link between project and organisation's key strategic priorities. -Lack of clear senior management and sponsor ownership and leadership.

Answer 84

Guidance to improve the way in which the public services managed projects and programmes. The Gateway process looks at the progress and likelihood of the successful delivery of programmes and projects at key decision points in their lifecycle. The review process looks at the readiness of a project to progress to the next phase at key stages in the life of the project.

Answer 85

1-Gate 0-stratgeic assessment-Programme only review that investigated the direction and planned outcomes of programme, together with progress of its constituents projects. 2-Gate 1- Business justification- Comes after the strategic business case has been prepared. Focuses on project's business justification prior to the key decisions on approval for development proposal. 3-Gate 2- Delivery strategy-Investigated the outline business case and delivery strategy before any formal approaches are made. 4-Gate 3- Investment decision- investigated the full business case and the governance arrangements for the investment decision. 5-Gate 4- Readiness for service- focuses on readiness of the organisation to go live with the necessary business changes and arrangements for management of operational services. 6-Gate 5- Operations review and benefit evaluation- Confirms that the desired benefits of the project are being achieved and the business changes are operating smoothly.

Answer 86

The review team provides a red, amber, green traffic light status for inclusion in the report at the end of each review.

Answer 87

Red- To achieve success the programme or project should take remedial action immediately. Means fix the key problems fast not stop the project. Amber- The programme or project should go forward with actions on recommendations to be carried out before the next review. Green- The programme or project is on target to succeed but may benefit from uptake of recommendations.

Answer 88

Provides a valuable perspective on the issues facing the internal project team and an external challenge to the robustness of plans and processes.

Answer 89

-Adequate skills, business resources and experience are deployed. -The risks and associated mitigation and contingency are being managed. -A governance structure is in place and whether all those involved are clear about their roles and responsibilities.

Answer 90

Once the products required from the project have been delivered, the project should be formally closed. There are two stages: 1-Decommissioning the project during which the project manager must : -Obtain agreement of customer and all acceptable criteria of the project are met. -Ensure all payments are made. -Close and archive the files. 2- Identifying follow-on actions. This would include: -Reviewing the risk log for any unresolved issues or continuing risks and recommending appropriate actions. -Setting a later review date to confirm that they have been actioned.

Answer 91

Is to evaluate the completed project and learn both what went well and what could have been done better. Achieved by reviewing the RAID log, quality log and meeting with both customers and project team.

Answer 92

-Inadequate planning -Acquisition of software -The systems development life cycle -Growth of e-commerce -Information systems and the law.

Answer 93

- Installation and implementation of new system and changeover from current ways of working.Transition can take time and requires additional temporary staff. -Data migration which is moving data held in existing system to a new one which could require technical work or manual keying so brings labour costs.IT licenses or additional storage may be required. -Change. IT projects are particularly prone to scope changes due to changes in technology. -Post life support-High level support required from software supplier for first three months after new system is implemented to deal with user queries and fix issues that were not present in testing.

Answer 94

Behavioural factors: 1-Optimism bias- decision makers estimating the costs of a project to believe that the risk of negative event occurring is far lower than it is. 2-Political will to achieve project outputs. 3-Fixed price contracts.

Answer 95

Sponsors treat IT projects in same way they would treat a standard capital construction project. The two major components of this are: 1-A waterfall development approach is taken (assumes design agreed in advance). 2-Consultation with stakeholders is minimal until the project is nearing completion. The result can be a project that delivers outputs that do not work as expected or are not fully effective.In long term, system may be abandoned with money wasted.

Answer 96

1- Off the shelf software 2-Bespoke development 3-Software as a Service (SaaS) 4-Platform as a Service (PaaS) -Infrastructure as a Service (IaaS)

Answer 97

Involved the direct purchase of a pre-written application used by more than one company-known as application packages. This available for a whole variety of hardware platforms from PCs to servers.

Answer 98

Ads: 1- Cost-Low cost compared to bespoke software with same functionality. 2-Reliability-Dveeloped for commercial market, less likely to suffer from bugs often found in bespoke software. 3- Speed-can be introduced quickly. Drawbacks: 1- Features- Offer too many unrequired but costly features or not offer all features needed. 2-Inflexibility-The packages may not accommodate some key requirements. 3- Businesses may need to process information in a particular way.

Answer 99

Describes the situation where an information system is developed by professionals to suit the specific business requirements of the organisation.

Answer 100

1-Cost- Most expensive way of developing new information systems. 2-Time-Bespoke development when using formal structured methodologies, is notorious for time overruns. 3-Quality- Not free from bugs can range from minor to very serious because of poor analysis of requirements.

Answer 101

Is a software provided by application service providers to manage many of the standard processes required by an information system. Is one form of cloud computing over the internet.Some Saas providers are Microsoft 365, Google Workspace, Dropbox and etc.

Answer 102

Ads: - The need to own and manage the software internally is removed which saves money and resources. -Software can be accessed remotely from wherever staff are located (provided with internet connection is available). Disads: -Concerns of data security and fears of potential system failures. -Power to alter and amend the software is held by the provider rather than organisation so loss of control.

Answer 103

-Small companies need to launch e-commerce quickly and can save time with minimal IT set up. -Mobile access is also needed Short term projects need to collaborate with a quickly, easy and low cost solution and implementation -Applications for occasional use such as tax return.

Answer 104

Another form of cloud computing which provides a platform via the web for software creation so developers can design applications to work in the PaaS, where the PaaS provider deals with operating systems. storage, infrastructure. E.g of PaaS: AWS Elastic Beanstalk, Windows Azure.

Answer 105

-Simple and cost effective deployment of applications. -Highly available -Developers can customise applications without maintaining software. Same disads as Saas.

Answer 106

Another form of cloud computing which is highly scalable and automated resources which organisations use to access and monitor computers, networks and storage. Servers provided via a dashboard. E,g of IaaS: Microsoft Azure, Google Compute Engine.

Answer 107

It is beneficial to organisations who need to purchase IT capability and resources on demand , where the organisations is experiencing rapid growth or demand and use may also be very variable rather than purchasing hardware.

Answer 108

Where an information system is to be developed specifically to meet an organisation's needs, a series of steps must to be taken place to create or modify and the maintain the system. These steps from development to use of the system are known as the systems development cycle.

Answer 109

Where all the activities within each project stage are completed and signed off before the next one is commenced. It is a highly structured and rational approach to developing and installing a new information system in which each phase of development is completed before the next one is started with the emphasis on control and associated documentation.

Answer 110

1. Initiation – a new system is proposed in response to a business need for change. 2. Feasibility – the technical, economic and operational feasibility of the proposed system is evaluated. 3. Systems and requirements analysis – the current system is mapped and evaluated and the specific user needs from the new system identified. 4. Systems design – how the new system will work in key areas such as user interface, program modules and security is determined. 5. Systems build - programmers write and test the new system. 6. Implementation – a controlled changeover from the old system takes place and the new system goes live. 7. Review and maintenance – managing errors arising and later upgrades.

Answer 111

Is a flexible, iterative method which stresses collaboration, teamwork and stakeholder involvement. A system for stakeholders to review and give feedback.

Answer 112

The outputs from the project are broken down into smaller elements, groups of which will be delivered in a ‘sprint’ – a process rarely lasting longer than two weeks during which all the phases of development are carried out, including planning, requirements analysis, design, coding, unit testing and acceptance testing. The aim of agile is to produce a basic working system quickly so that stakeholders can review it and provide feedback. This feedback is taken on and the process is repeated until this aspect of the software is right. Testing is a fundamental part of the agile process, so that potential problems are identified and addressed immediately

Answer 113

-Flexibility to accommodate changing requirements. -Reduces risk that end result is not what is required. -More involvement of stakeholders at all stages so changes are easier to make.

Answer 114

Using electronic processes to provide business and government services.

Answer 115

Stands for electronic. e.g: automated telephone banking system.

Answer 116

Refers to electronic business that involves a financial transaction and as such can be thought of as part of e-business.

Answer 117

ads: Increased sales Time saving real time information availability Disads: High levels of investment needs Greater potential for fraud/ risk to confidentiality of data. Reliability of technology

Answer 118

* B2B: online transactions between two business organisations. * B2C: online transactions between a business and a consumer. * C2C: online transactions between two consumers. * C2B: online transactions where a consumer specifies what they want and the business responds with offers

Answer 119

For the application of the principles of e-business to the public sector. Defined as the use of information and communication technologies to improve the activities of public sector organisations. It has three principle objectives: -cost saving -improved services -improved public access Also known as digital government.

Answer 120

A vision for public services and requires public sector bodies to undertake three key transformations in order to achieve this vision: 1- Service design- services enabled by IT must be designed around the citizen or business, not the provider, and provided through modern, coordinated delivery channels. This will improve the customer experience, achieve better policy outcomes. 2- Shared services culture-government must move to a shared services culture – in the front-office, in the back-office, in information and in infrastructure – and release efficiencies by standardisation, simplification and sharing. 3- Government’s professionalism- there must be broadening and deepening of government’s professionalism in terms of the planning, delivery, management, skills and governance of IT enabled change.

Answer 121

Front-office: * web site improvements * intranet development * contact centres * smart cards * customer relationship management software – information technology used to obtain and analyse information on customer behaviour * video conferencing * kiosks/public access * remote working * marketing using web technology Back-office: * document imaging * data management * e-learning * workflow management software * geographical information systems – uses maps to display information about different geographic locations * e-procurement

Answer 122

Codes of conduct and legal provisions are required to regulate information systems. It is expected that developers, managers and users of computer-based information systems will behave: * Professionally – acting to meet the standards set by a profession in terms of individual conduct, competence and integrity. * Ethically – acting in accordance with generally held beliefs concerning right and wrong.

Answer 123

To ensure an appropriate standard of behaviour is maintained most professional organisations develop codes of conduct for their members that clarify their expectations and in return for membership, the individual accepts a duty to meet certain standards of conduct and behaviour.

Answer 124

Laws and legislation.

Answer 125

Legislation introduced aimed at protecting people and businesses from the unauthorised gathering,storage,use and disclosure of that data by others.

Answer 126

Public have the right to access information held by public authorities under specific circumstances.

Answer 127

- Theft – This could involve altering or destroying computer records to disguise the theft of money. - Malicious software – The creation and dissemination of programs or software which damage the computer systems and which can lead to significant losses. -Hacking – This occurs where a private computer is broken into. Sensitive or confidential data may be accessed without the owner even realising. Data may be stolen or altered or attacked by malicious software. - Identity Theft – This is a growing problem which arises from the increase in internet use for cash and banking transactions. Personal data is accessed and used to siphon funds or buy items in the victim’s name. Phishing is the term used for sending emails purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords and credit card numbers.

Answer 128

Is the drive to reduce waste and inefficiency through the introduction of lean thinking.

Answer 129

Involves an organisation moving towards the elimination of waste in order to develop an operational approach that is faster and more dependable and which produces higher quality products at a lower cost.

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The basic elements of the lean philosophy are: * Elimination of “muda” or waste, where waste is any activity that does not add value * Kaizen or continuous improvement. While the aim of perfect quality and no waste may not be achievable straight away the lean belief is that it can be approached over time.

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Value is determined by the ultimate customer and relates to whether a specific product or service meets their needs at a price they are prepared to pay. Where costs are incurred on non-value items, then this is deemed waste and should be eliminated.

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Unnecessary movements waiting for for work or materials Transportation Processing Inventory Correction

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Variability This refers to any variability in the way a process operates which is not caused by the end customer. This would include employees working at full speed in the morning only to sit around in the afternoon, or a production line stopping and starting rather than running smoothly. Overburdened equipment, facilities or staff The philosophy suggests that demanding too much of the elements in a system can be as damaging as asking too little, leading to safety and quality problems, machine breakdowns and defects.

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The Kaizen approach directs specific attention to the improvement of business processes. The word Kaizen is Japanese for improvement and has become linked to a business philosophy based on continuous process improvement. The aim is to set standards and then constantly improve upon them.

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To be used effectively in a business, it requires the involvement of all staff, from the most senior to the most junior, and applies to all processes including purchasing and logistics which involve external parts of the supply chain. Suggestions for improvement are expected from every member of the organisation, and in addition to individual suggestions, quality circles are formed for groups of employees to identify potential improvements.

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The expectation is not radical change, but continued, small incremental improvements which over time produce significant results in terms of productivity. Standardisation is a key part of the Kaizen process.

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Six Sigma is the structured application of tools and techniques on a project basis to improve quality and minimise defects. It is an approach not just to production processes but to all aspects of the business.The Six Sigma approach is applied systematically to one particular process at a time as a project and as such may be more attractive to management.

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* Define the project scope and expectations * Measure and benchmark the current performance * Analyse the process to identify the root cause of the problem * Improve the process using a range of quality tools and ensure they work * Control the process by tracking performance over time

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A cost reduction technique specifically focused on maintaining value. The value of an item or a service is measured by how well it performs its function relative to its cost. So, if two items cost the same, but one performs better, it has a higher value. In the same way, if two items perform equally but one costs less, the cheaper item has the higher value.

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Value analysis is a planned scientific approach to improving the value of a product or service by offering the same level of functionality at a lower cost.

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The organisation first identifies products or services in areas where costs are too high, problems have been identified or demand is expected to become significantly higher (and therefore new economies of scale may become available).

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The different types of value which a customer requires from the product or service are then determined. These may be: * Cost value – cost of producing the product or service. * Exchange value – the sum of all the attributes which enable them to swap or charge for the item or service. * Use value – the attributes which enable it to perform its function. * Esteem value – the additional premium which the product or service attracts because of its intrinsic attractiveness to the customer.

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Each aspect of value is considered in turn and multi-disciplinary teams work together to identify those aspects of the product or service which add no value to the service but incur cost to provide, and those which can be achieved at lower cost.

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The functions offered by the product are then subject to a process known as functional analysis. The importance of each function to the customer is evaluated, along with the costs incurred by the business to provide it. The current cost of achieving the function is compared to the cost of producing it at the most minimal level and alternative suggestions about to how close the gap between the two are discussed. Solutions may involve eliminating aspects which are little valued or modifying aspects to make them cheaper to provide

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TQM has similarities with Six Sigma, which looks to reduce defects, but TQM, on the other hand, focuses more on internal guidelines and process to reduce errors, seeing this as the key to improve an organisation’s outputs. It is an ongoing process of detecting and reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience, and ensuring that employees are up to speed with training. Total quality management holds all parties involved in the production process accountable for the overall quality of the final product or service.

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The most famous example of TQM is Toyota’s implementation of a ‘Kanban’ system. A kanban is a physical signal that creates a chain reaction, resulting in a specific action. Toyota used this idea to implement its Just In Time (JIT) inventory process.

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Its key principles are: * Good leadership * Focus on quality * Putting the customer first * Error correction and improvement as an on-going process * Job training

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A JIT system can be defined as a system designed to produce or procure products or components as they are required for use or by a customer, rather than to add to inventory.

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JIT production is driven by demand for the final product such that a product is only made on the production line when it is needed by the next process.

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* Manufacturing cells which group all the equipment used to manufacture a given product in the same place to minimise materials handling. * Multi skilled working so that all workers can carry all the operations in the cell. * Total quality management – A zero tolerance for defects. If a problem is found the whole production line is shut down until it is eliminated. * Reducing machine set up time and manufacturing lead time to a minimum. * Carefully selected suppliers and strong supplier relationships - goods must be delivered as soon as requested and have zero defects as no buffer inventory is held.

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JIT purchasing contracts the time between receipt and usage of an item so that as far as possible they coincide. Supplies are delivered at exactly the moment the current inventory runs out so that only a minimum inventory is held (enough for ½ to 1 day’s use).

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-Lower inventory costs -Low risk of obsolescence -Reduced set up and manufacturing costs -Reduced wastage -Competitive advantage arising from fast response to customers. -Reduced paperwork.

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-Environmental campaigners -High levels of transportation for delivery which causes pollution and use of fossil fuels. -Price volatility-May increase inventory levels to take advantage of price movements. -Quality volatility- Quality is not ensured. -Supply volatility

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seeks to identify the activities where a business is losing money so that those activities can either be eliminated or improved to increase profitability. The costs analysed are employees, equipment, facilities and overheads and these are allocated to the business processes.

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ABM can be used to identify which areas of a business are making a loss and take steps to improve them or remove them altogether. In this respect, it is another way of identifying the value or waste in a process and making changes based on that information. E.g:Review the costs of a second office – identify the costs associated with running the office (staff, facilities, overhead) and compare with sales generated to identify if the revenue makes this worthwhile

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Paul Harmon devised a process strategy matrix to help organisations to decide which services can be automated and/or outsource and which ones require investment in labour, to identify the most efficient way of delivering them.

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Each business process can be assessed in terms of: * Its strategic importance to the organisation * Its complexity and dynamics (how much does it need to change to deal with changing circumstances) * Processes which have low strategic importance must be done but add little value to the products and services. If they are not complex and mostly static, they can be automated and / or outsourced. If they are complex processes and subject to lots of changes, they should be outsourced to gain efficiency as they are not part of the organisation’s core competences. * Processes which have high strategic importance are very important to success and add high value to the business. If the processes are not complex, they should be automated. * Processes with both high strategic importance and high complexity are where organisations should focus most of their efforts – they should invest time in their processes based on people, as this is where competitive advantage will be.

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Only processes with both high strategic importance and high complexity and dynamism should receive intensive efforts in process improvement – all other processes should either be automated or outsourced to be as efficient as possible, so that the business can focus on its key areas.

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Servqual is a service quality framework designed to improve the customer experience. It examines the difference between a customer’s expectations from a service and their perception of the service they received.

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* Reliability – ability to perform the service dependably and accurately * Assurance – ability of staff to inspire confidence and trust * Tangibles – standard of physical facilities, equipment, staff appearance etc. * Empathy – the extent to which caring individualised service is provided * Responsiveness – willingness to help and respond to customer need

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* What customers expect from a service and what management think they expect * What management believe to be the level of service they should deliver and the actual specification of the customer experience * The specification of the customer experience and what is actually delivered by the organisation * What is provided to customers and what they are led to believe will be provided * How customers perceive the experience and what they expected to receive.

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Advantages of a Servqual approach: * A valuable tool for assessing service quality * Extensively used and generic so excellent tool for benchmarking * Can be adapted for use in any service organisation * Suitable for use in the public sector Criticisms of the Servqual approach: * It ignores needs of wider stakeholders by concentrating only on the group surveyed * Other issues such as improved access to existing services and equality of service provision are as important as service quality * Measuring customer expectation can itself lead to increased expectation and therefore widen the gap!

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* Control charts – used to identify when output is drifting beyond acceptable levels of variation * Pareto diagrams – used to identify the most commonly occurring problems * Cause and effect diagrams – used to analyse commonly occurring problems

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A control chart is a graph of a series of successive observations of a particular step, procedure or operation taken at regular intervals of time. Each observation is plotted relative to specified ranges that represent the expected distribution. Only those observations outside the specified limits are ordinarily regarded as non-random and worth investigating.

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Observations outside control limits serve as inputs to Pareto diagrams. A Pareto diagram indicates how frequently each type of failure (defect) occurs. The Pareto principle states that about 80% of defects or failures can be explained by 20% of possible defect causes. By identifying the most likely causes of a problem, efforts can be focussed on those areas first, especially in situations where checking everything might not be feasible.

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The most frequently occurring problems identified using the Pareto principle can be further analysed using cause-and-effect diagrams. A cause-and-effect diagram identifies potential causes of failures or defects. The causes of the most frequently occurring failure are drawn on the diagram.

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The cause and effect diagram may lead to proposed solutions.