IISc MG 286 Project Management Systems Approach

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PROFICIENCE PMC Course

• Module 2
• The Systems Approach

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Some Basic Concepts/ Definitions

• What is system?
• It is a set of parts (components), which are
  coordinated to accomplish (achieve) a set of
  goals (objectives).
• What is the systems approach?
• It is a wholistic approach to problem solving
  that involves formal consideration of
• Total system objectives Performance measures
• System environment Fixed constraints
• System resources Inputs
• System components Activities, goals,
  performance
• System management Component interactions

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Systems Approach (Contd.)

• Total system objectives (performance measures of
  the whole system).
• System environment (fixed constraints).
• System resources (inputs).
• System components (their activities, goals, and
  performance measures), and
• System management (control).

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A General Systems Model

• Inputs can be purposeful or environmental . Again
  , purposeful inputs can be controllable or
  uncontrollable .
• Outputs can be desired or undesired outputs.
• Design parameters are features or attributes of
  the system that will affect system behavior .

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A General Systems Model

• Constraints establish quantitative limits on each
  input , output , and design parameter .
• Criteria for evaluation are used to establish
  relative goodness amongst several alternative
  designs or solutions .
• Functional representation can be as follow Y( t)
  f X (t) , E (t) where t is any independent
  variable (time).

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Areas of Systems Studies
1. System design Given X(t), Y(t), E(t)
Determine f   2. System Analysis Given X(t), f,
E(t) Determine Y(t)   3. System Control Given f,
Y(t), E(t) Determine X(t)
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Types of Systems

• Discrete event Vs Continuous flow
• Discrete time (difference equation) Vs Continuous
  time (differential equation)
• Deterministic Vs Stochastic
• Fixed or static Vs Time variant or dynamic
• Linear Vs Non-linear
• X1(t)-y1(t) X2(t)-y2(t)
• Then, aX1(t)bX2(t)---aY1(t)bY2(t)

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A Project as a System The life cycle concept 
1) A project has sub-projects/work packages like
a system has sub-systems/components 2) The
sub-projects/sub-systems are inter-linked/inter-re
lated 3) We focus on overall project/system
objectives 4) Project identification is similar
to system boundary demarcation 5) Project
resources are like system inputs 6) Like the
system life cycle, a project also has a life
cycle. Major difference A system generally
implies an infinite lifetime (perhaps with
upgrading),while a project is purely temporary.
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Fig 2.7 A Simple Technological innovation
chain Fig 2.8 Activity Level  Fig 2.9 Investment
and return  Fig 2.10 A Systems design
algorithm Fig 2.11 A feasibility study algorithm
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System Identification (Constrained Parametric
Analysis)
Parameter Sub-parameter Constraint Ourput Des
ired Greater Than Undesired L
ess Than   Input Controllable
Greater Less Than Uncontrollable
Greater Less Than Environmenta
l Greater Less Than   Design Size Greater
Less Than Capacity Greater Less
Than Finance Less Than Economy Less
Than Life Greater Than   Evaluation Return/
Profit Greater Than Efficiency Greater
Than Volume Greater Than Oppurtunity Gr
eater Than
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A Systems Design Algorithm

• Primative Need gtFeasibility Study
• Set of Feasible Solns. gtPrelimin.Design
• Optimal Design gtComparitive Analysis of
  Particular Concepts
• Optimal System Design gtDetailedDesign
• Complete Description gtPlanning for
  Implementation
• Production gtUse of Design

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A Feasibility Study Algorithm

• Primative Need gtgtgt Needs Analysis
• Identified Needs gtgtgt System Identification
• Detailed Problem gtgtgtSynthesis of Solution
  Statement
• Possible Solutions gtgtgtRealisability and
  Practicability
• Analysis gtgtgt Set of Feasible
  Solutions

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Data Definition/Technology Factors

• Production Factors
• Time to install
• Degree of disruption
• Learning curve
• Facility/Equipment required
• Development time and cost
• Quality impacts

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Data Definition/Technology Factors

• Market Factors (For Sellers)
• Size of present and potential future markets
• Probable market share
• Time to acquire market share
• Impact on product/process lines
• Consumer (buyer) acceptance
• Technology life (up gradation)
• Spin off technologies

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Data Definition/Technology Factors

• Financial Factors
• Profitability
• Net present value of investment
• Pay back period
• Impact on cash flows
• Capital requirements
• Break even (volume/time)
• Start-up/Switch over costs
• Risk levels

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Data Definition/Technology Factors

• Personnel Factors
• Training requirements
• Skill requirements
• Skill availability
• Resistance to new technologies
• Effect on employment
• Other worker reactions

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Feasibility of Solutions
Technological feasibility Financial
feasibility Economic practicability User (Social)
acceptability Market (political) viability