Slide 1

Efficiency analysis of ERP projectsSoftware Quality Perspective

International Journal of Project Management 33 (2015) 961970Software Project Management

OutlineOverview of PaperMethodologyValidation and AnalysisComparison with Core Areas of SPMSuggestions for ImprovementReferencesQuestion/Answer Session

2

By: Ayesha SaeedOverview of Paper

Introduction to ERP

Packaged Software

ERP are not same as Conventional IT Systems

Defined term Efficiency as Software productivity of ERP projects.

Project Effort Function PointQuality Measure

Overview of PaperEmphasize the need to access efficiency of ERP projects based on quality Measure.

Summarize related previous research work on evaluating ERP Projects

Research Objectives, Methodology , data collection and analysis

Validity of Results, conclusion and Future work

Research Objective

ERP are Large scale project and involve customization

No research consider the efficiency from Quality perspective.

DEA CRS is use to identify most Efficient ERP project.

By: Rabia NoureenProposed Model

DEA ModelData Envelopment AnalysisA linear programming application aimed at evaluating the efficiencies of similar decision-making units (DMUs) based upon the inputs and outputs associated with the DMUs. What does it mean to be efficient?Maximizing output with keeping input constant.Minimizing input with keeping output constant.

Efficiency=Total weighted Output / Total weighted Input

When applying DEA model the researcher has to decide whether to use CRS or VRS.CRS is theoutputof theprocessincreases or decreases simultaneously and with increase or decrease in the inputs(for small or medium IT projects)VRS is that an increase in inputs does not result in a proportional change in the outputs(for large scale ERP projects)8

Research Framework

Fig.1.Conceptual research frameworkInput variablesOutput variables

To fulfill this objective, based on the review of the previous research on the evaluation of ERP projects, a conceptual research framework (Shown in Fig. 1) has been developed that consists of the input variables-project efforts (person-months) and the output variables-size of ERP software (FP) and quality measures (defect counts). The input and the output variables are processed by the DEA CRS model to determine the efficiency of ERP projects.These variables are observed to contribute to the efficiency of ERP projects.9

The Model

ObjectiveFormulaEfficiency scoreSelected output of each facility in the set o. Selected input of each facility in the set o. Weights

The ConstraintsThe input and output values, as well as all weights are assumed by the formulation to be greater than or equal to zero; the efficiency score less than or equal to 1.

Results validation By: Farwa Kazmi

Dataset

Dataset consists of 10 ERP projects developed for the educational institutions by Sylax company.

for efficiency comparison only academic module of each ERP system was considered.

For comparison it is important to compare the projects of same size and type thats why academic module is taken so that type and size of projects remain same.13

Results of 10 ERP projects Project ID (Bi) I/O units

PE FP DC Potential improvement required in % PE FPEfficiency of ERP projects % B11.689 5551000100 B28.938 6991571.5019.1028.50 B311.51313481264.18035.85 B431.7092219878.58021.42 B534.25599894.6505.35 B650.02719081088.33011.67 B71.65234597.4944.7892.51 B86.6311080350.17049.83 B911.899482387.61012.39 B1010.81130367.99032.01

This table shows the efficiency report of 10 ERP projects analyzed from a quality perspective using the DEA CRS model

Table consist of potential improvement required for the input units PE and FP to as to enable respective ERP to become 100% efficient and the Efficiency of 10 ERP projects based on I/O units

The table shows that the project B1 and B7 are efficient projects and B8 have an average efficiency score. All the other project efficiency lies b/w 5%to36%

Another interesting phenomena in the results is that the defect count of B8,B9 and B10 is same i.e 3 but their efficiency varies from each other. According to the author the reason of this variation is the required potential improvement for each project. Required improvement for B8 is low as compare to B9 and B10 thats why its efficiency is high

14

Validity of Results

B1 and B7 have the efficiency of above 90 %. Because when we estimate the efficiency with Min.In mode of the DEA.i.e evalution with the objective of minimizing the project effort, then naturally these projects deserve to be declare efficient.

15

Conclusion

project effort, product size and defects arising out of a product should be well balanced to achieve the efficiency of a project

By: Sadia MajeedPaper Comparison With SPM Core Areas

Software Quality And SPM Core AreasSoftware QualityTotality of feature of product to satisfy customer needNo of defects per unit size in productThe following core areas of SPM influence the way efficiency of ERP system is analyzed.SCOPETIMECOSTQUALITYThey are not independentIf we increase scope it will require additional time and cost if quality is not compromised

It is impossible to change one part of triangle without having an effect on the other sides18

DEA Model Variables And SPM Core AreasIn DEA model three main variables are being usedProject Effort: PE (Persons-months)Function Points: FP (Size of project)Quality Measure: DC (Defects-count)

SPM CORE AREASDEA MODEL VARIABLESScopeSize is measured in terms of functional points of projectCost and TimeProject effort

QualityDefects Count

19

Efficiency Analysis In Terms Of Dea Variables And SPM Core AreasThe project to be reasonably efficient the PE, FP and DC should be well balancedIf SCOPE of project increases then DC(defect count) increases as a result efficiency decreasesIf DC(defect count) is low then efficiency will increase results in QUALITY software productIn the research projects B1 and B7 were having less FP so less DC arises. Thus Efficiency was highProject COST vary according to PE(Project Effort) so as Efficiency variesCost of developing software is man power employedIn B8,B9,B10 projects DC was same but they require improvements in PE. So their efficiency was average

The project to be reasonably efficient the PE, FP and DC should be well balanced. So scope, cost, time and quality must be handled efficiently for successful projects.

20

Critique And ImprovementsBy: Madeha Arif

Critique of the Paper

Inaccurate dataset. Not from customization perspective. Ignoring managerial aspect of project.DC do not only depend on project size and size is not only related to project effort.Only radial approach to identify efficiency of project.

Suggestions for ImprovementsFocus on managerial aspects of project quality assurance.Manage Defect Count as part of the quality management process.Focus on other external factors: schedule constraints and risk parameters. Use non-oriented blended approach: Simultaneous input reduction and output expansion approach.

Manage Defect Counts as part of the quality management-quality inspection and assurance throughout the management process. A good requirement strategy to capture requirements reduce effort for system customization and DC rate. As it was reason for B1 and B7 success.

23

Further WorkEfficiency assessment of software systems based on:ProductivityQuality measuresScheduleRisksUsing non-oriented DEA model.

References:William W Cooper. Cooper Framework http://deazone.com/en/cooper-framework/cooperframework-phase4 Retrieved on 18 Oct2015 William W Cooper. What is DEA http://deazone.com/en/resources/tutorial Retrieved on 17 Oct2015 William W Cooper. What is ERP https://www.syspro.com/product/what-is-erp Retrieved on 18 Oct2015Toshiyuki Sueyoshi, The Journal of the Operational Research Society Vol. 41, No. 3 (Mar., 1990) A Special Algorithm for an Additive Model in Data Envelopment Analysis. Retrieved on 18 Oct2015