3.

1 SYSTEMS LIFE CYCLE

Systems are dynamicthey change over time. The change tends to follow a
distinct pattern that is repeated again and again. Mentioned in Chapter 2 was the
obvious life cycle of organismsbirth, growth, maturity, senescence, and death
and its similarity to cycles in human-made products and systems. Projects also
follow such a cycle.
Project Life Cycle Projects are done for the purpose of developing systems
either to create new ones or to improve existing ones. The natural life cycle of
systems gives rise to a similar cycle in projects called the project life cycle. Each
project has a starting point and progresses toward a predetermined conclusion.
Starting with project conceptualization, projects experience a build-up in effort
that eventually peaks and then declinesthe pattern shown in the lower curve in
Figure 3.1 (the upper S-curve, shows cumulative activity). This activity can be
measured in various ways, such as the amount of money spent on the project,
the number of people working on it, or the amount of materials being used.
Besides changes in the level of effort, the nature and emphasis of the activity
change too. For example, consider the mix of project personnel: customers and
planners dominate the early stages of the project; designers, builders, and
implementers take charge in the middle stages; users and operators take over at
the end. Over the project life cycle, the composition of the project organization
also changes. No matter the project phase or kind of work activity, every project
can be measured in three ways at any point in its life cycle: time, cost, and
performance. Time refers to the temporal progress of activities and extent to
which schedules and deadlines are being met. Cost refers to the rate of resource
expenditure as compared to budgeted resources. Performance refers to outputs
of the project as compared to objectives, speci cations, and requirements;
meeting performance requirements is a measure of the quality of the project
output. The project manager attempts to achieve time, cost, and performance
requirements as the project advances through the life cycle.
Period-by-period
Cumulative
Cumulative activity
Project activity
Time
Figure 3.1 Level of activity during the project life cycle.
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Chapter 3 Systems Development Cycle and Project Conception 87
Managing the Project Life Cycle Managing the project life cycle requires special
treatment. Unlike non-project, repetitive operations, where everything tends to
be somewhat familiar and stable, things in projectsresources, schedules, work

tasks, etc.are often unfamiliar and in a constant state of change. Little is done
in a project that can be considered repetitive or even routine. Work schedules,
budgets, and tasks must be tailored to t each phase and stage of the project
life cycle. All projects contain an element of uncertainty. Unforeseen obstacles
can cause missed deadlines, cost overruns, and poor project performance.
Management must try to anticipate the problems, plan for them, and adjust
activities and shift resources to mitigate or overcome them. Organizations often
undertake several projects at once. At a given time the projects are at different
stages of their life cycles: some are just being started, others are underway, and
still others are being closed out. Management must be able to continuously
balance resources so each project gets what it needs, yet all their needs
combined do not exceed the resources available.
3.2 SYSTEMS DEVELOPMENT CYCLE
The life cycle of a human-made system can be segmented into a logical series of
phases and stages. Figure 3.2 shows the life cycle divided into four phases,
collectively called the systems development cycle: 1. Conception phase (Phase
A) 2. De nition phase (Phase B) 3. Execution phase (Phase C) 4. Operation
phase (Phase D). Virtually all of the projects described in Chapter 1 can be tted
into this fourphase cycle.
Phase A: Conception phase Initiation stage Feasibility stage Proposal preparation
Phase B: Denition phase Project denition System denition User and system
requirements
Phase D: Operation phase System maintenance and evaluation
Phase C: Execution phase Design stage Production/build stage Fabrication
Testing Implementation stage Training Acceptance tests Installation
Termination
System improvement
(To Phase A: repeat cycle)
System termination
Figure 3.2 Four-phase model and detailed stages of the systems development
cycle. Project life cycle is Phases A, B, and C.
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Part II Systems Development Cycle88
The Phases The four-phase cycle encompasses the total developmental and
operational life cycle of all human-made systems. The phases overlap and
interact, yet are clearly differentiable. They re ect the order of thought and
action in the development and use of all human-made systems, whether
consumer products, space vehicles, information systems, or company

relocations. For some systems, the development cycle overlaps identically with
the project life cycle. A project typically spans Phases A through Cthe
conception, de nition, and execution phases of the cycle. Hence, the rst three
phases of the systems development cycle overlap with the project life cycle.
When Phase C ends upon implementation of the system, so does the project. At
that point, the system transits from being the end-result of a project to being an
operational entity. Virtually all projects progress through Phases A, B, and C,
though not necessarily through the stages as shown in Figure 3.2. The actual
stages in the life cycle depend on the system or end-item being developed. For
some projects, some of the stages might receive little emphasis or be entirely
skipped; most projects, however, do pass through the stages shown in Figure 3.2,
even if informally. For instance, although many projects do not involve formal
proposal preparation, every project starts with a proposal from someone.
Similarly, while many projects do not require design, manufacturing, or
construction, every project does require conceptualization and bringing together
the pieces of something (even if only information) to produce a nal result.
Sometimes, between the phases of the life cycle there are points at which
decisions are made concerning the preceding phase and whether the project
should be continued to the next phase or be terminated. Referred to as gating,
the project is assessed at the end of each phase and a go/no-go decision is
made. In some large-scale endeavors where the development cycle spans years
such as urban renewal, product development, and space exploration, the cycle
is treated as a program and the phases within it as separate projects
sometimes each conducted by a different contracting organization. For example,
Phase A would be treated as a project and conducted by one organization, Phase
B as another project conducted by another organization, and so on, each phase
with its own project manager. The bonds holding them together and keeping
them all moving forward are common program goals, and the program manager.
Stakeholders Within the systems development cycle are many stakeholders
(actors and interested parties). The main groups of stakeholders are as follows.
1. System customers, buyers, or clients, including: a. Customer management b.
Users and operators. 2. The system contractor, also called the systems
development organization (SDO), developer, promoter, or consultant; these
include: a. Contractor top management (corporate and functional managers) b.
Project management (project manager and staff) c. The doersprofessional,
trade, assembly, and other workers. Customers (buyers) are the persons or
groups for whom the project is being done and who will acquire and/or operate
the system when it is completed. Customer management pays for and makes
decisions about the project; users and operators will
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Chapter 3 Systems Development Cycle and Project Conception 89
utilize, maintain, or in other ways be the recipients of the end-item at the end of
the project. It is important to identify the actual users since, ultimately, it is for
them the system is being created. From here on we use the terms customer and

user somewhat interchangeably, keeping in mind this distinction: The customer

(or buyer) pays for the system The users use it. The contractor or developer is
the party that studies, designs, develops, builds, and installs the system. The
contractor is usually external to the user organization, although of course it
might well reside within the same organization as the user, as is the case of
internal consulting/support groups. Since the contractor is usually an
organization, it sometimes is referred to as the systems development
organization (SDO). Because in most cases the customer pays the contractor to
perform the project, you can think of the customer as the buyer and the
contractor as the seller. Use of these terms makes sense when you think of a
project in the context of being a contract between two parties wherein one (the
contractor-seller) agrees to provide services in return for payment from another
(the user-buyer). The project manager usually works for the contractor, although
the customer might also have a project manager. Besides these, the life cycle
involves other key partiesindividuals, groups, and organizations with vested
interests and/or in uence on the conduct of the project. Anyone who is affected
by the project or potentially can alter its outcome is a stakeholder. Customers
and contractors are considered internal stakeholders; parties outside the project
(in the environment) are external stakeholders. All are important, and their
needs, interests, and in uences must be accounted for in the project plan and
project end-items. When a project manager is assigned to a project, nobody
gives him a list of all the key stakeholders; thus, as mentioned in the Appendix to
Chapter 2, one of all his rst tasks is to identify the stakeholders, their needs,
expectation, and interests, and to develop strategies to accommodate them.
Phase A: Conception Every project is an attempt to solve a problem. The rst
step in solving a problem is recognition and acceptance that the problem exists.
After that, the individual facing the problemthe customer and usersseeks out
someone who can help. The steps they takesoliciting people who can do the
work, evaluating their proposals, and reaching an agreementall are part of the
procurement management process. If the customer organization has an internal
group capable of doing the work, it turns to this. If not, it will look to outside
contractors, possibly by sending them a formal request for help called a request
for proposal, or RFP. Each contractor examines the customers problem,
objectives, and requirements as stated in the RFP, and determines the technical
and economic feasibility of undertaking the project. If the contractor decides to
respond to the request, it presents the customer with a proposed solution
(system concept) in a proposal or letter of interest. The customer then examines
the proposalor, when multiple contractors have responded, all the proposals
and makes a choice. The result is a formal agreement between the chosen
contractor and the customer. Most ideas or proposals never get beyond Phase A;
the problems the proposals address are judged as insigni cant, or the proposal
as impractical, infeasible, or lacking bene ts to justify funding and resources.
The few that are approved and reach a contract agreement move on to Phase B.
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Part II Systems Development Cycle90

Phase B: Denition Having reached a commitment from the customer, the

contractor begins a detailed analysis of the system concept, during which it de
nes the requirements the system must ful ll to meet the customers needs, and
the systems functions and elements necessary to meet those requirements. This
de nition results in a preliminary design for the system. As the process
continues, the major subsystems, components, and support systems of the
proposed system are determined, as are the resources, costs, and schedules
necessary to create the system. Meantime, project management assembles a
comprehensive project plan that de nes the activities, schedules, budgets, and
resources to design, build, and implement the system. Contractor top
management reviews the plan for acceptability and then forwards it to the
customer, who also reviews it for acceptability.
Phase C: Execution The execution phase is when the work speci ed in the
project plan is put to action; it is sometimes referred to as the acquisition
phase, because the user acquires the system at the end of the phase and most
system resources are acquired then. The execution phase often includes the
stages of design, production, and implementation, referring to the
progression through which a system moves from being an idea to a nished,
physical end-item. All systems are comprised of elements arranged in some
pattern, con guration, or structure, and it is in the design stage that the
elements and pattern necessary for the system to ful ll requirements are de
ned. Following design the system goes into production, where it is built as either
a single-item or a mass-produced item. Near the end of the execution phase, the
system is implemented; it is installed in and becomes a part of the users
environment.
Phase D: Operation In the operation phase the system is deployed; the customer
takes over to operate the system and maintain it. For systems such as products
and equipment that people use and rely upon daily, Phase D may last for years
or decades, in which case the phase includes not only operation and
maintenance of the system, but also improvement and enhancement to keep the
system viable and useful. All systems eventually outlive their purpose or simply
wear out. When that happens, there are two choices: to scrap the system, or to
modify it so it remains useful. In the latter case the modi cation becomes a
new system concept, the beginning of a new systems development cycle, and
the start of a new project. For some systems Phase D is short or non-existent:
examples are a political campaign, rock concert, and gala ceremony (the project
ends on Election Day, or upon completion of the performance or ceremony).1