EDP Centre and EDP Project Organization

Copyright© IFAC Experience with the Management of Software Projects, Heidelberg, FRG, 1986

EDP CENTRE AND EDP PROJECT ORGANIZATION G. E. Haramis OI\'lI/pie Ainl'{fYs, Data Pro(fssillg &

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Abstract.There are three ma i n types of organization in an EOP Centre and it is up to its Management to decide which one to use, after having careful l y studied the conditi ons,the nature and the s ize of the problems of the Company. In this paper, the following three types of EOP Centre Organization are examined: - application organization - functional organization - matrix organization. The functions of the EOP Steering Board, the Project Board and the Project Team (EOP PROJECT ORGANIZATION), are studied as we l l, largely wi thin the limits of matrix organization. The paper contains: 1. Introduction 2. EOP Centre Organization 3. EOP Project Organization 4. Interferences between EOP Centre and EOP Project Organizations 5. Experience wi th Olympic Airways organizational structures. Keywords.Application organization; functional organization; matrix organization; steering board; project board; project team. 1. I NTROUUCTI ON The tremendous progress noted during recent years in computer technique and in the science of Managemr.nt Information Systems (Data Base, Data Banks, Multiprocessing, etc.) created the need for a corresponding degree of progress in existing methods of organization and control of data processing activities.

Finally,Systems Development require s that a specified number of analysts and programmers work for a period of time under a specified structure of EDP Centre Organization and/or EOP Project Organization.

The problem is serious for management science s i nce it uses EDP as its main and most effecti ve instrument in the improvement and operation of new methods in business organization and adminis tration .

2.1. Application Organization

2. EDP CENTRE ORGANIZATION

As shown in fig. 1, we have sections consisting of analysts and programmers; under the guidance of a supervisor, each section will be responsible for implementing one or more systems (applications).

It is understood that the better and the more complete EDP Dept organization,the more effective the organization and administration of the Company.

In the event that the section is responsible for two or more applications, DP Management usually ensures that these applications will serve purposes of similar operations sections of the Company.

Despite tremendous technological progress and the changes made in the DP environment, the" basic cycle" of DP application (of a system) remains the same and is: - the designation of the purpose - determination of the problems - determinat i on of corresponding so lutions - selection of the most appropriate of these - implementation of the solution in the most eco nomica l way.

Each section is responsib le as well for the mainte nance of the applications that have been assigned to it. The action of the analysts and programmers is gea red towards the objective of the user department activities. This benefits speedy completion of work, but inhibits progress and development of t echnical knowledge of analyst/programmers with regard to systems analysis, design and programming.

Regardless of the type of organization used, the DP Centre must function in a way that "balance" is maintained between : - the responsibility for the means the responsibility for the development and maintenance of Management Information Systems - reporting directly to Management - the effective use of data processing.

2.2. Functional Organization In accordance with fig. 2, we distinguish in the DP Centre a number of specialized sections (with regard to the use of similar techniques or methods) which are managed by corres ponding supervisors

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G. E. Haramis

e.g. Analysis Section, Programming Section, etc. A result of this type of organization is specia l ization which is acquired in systems analysis as well as the programming area. The main problem of this organization manifests itself particularly during the phase of cooperation between the ana lysts and programmers. Functional organization meets the object i ves for systems documentat ion in the areas of systems analysis/design, programming and operation. This is succeeded because analysts give program specifications,first to the programming section and then to the operation section,during the phases of sys~ tem development. The specifications are written in accordance with the established data processing standards which also form the basis of the related systems manuals. Systems maintenance under this organization is usually imp l emented by the analyst responsible for the development of the system and according to the established standards for system maintenance. 2. 3. Matrix Organization Matrix Organization is a combination of the two previously mentioned types of organization. Accor ding to this type of organization (fig. 3), we have a team of analysts and programmers under the supervision of a Project Leader. The team is formed by the Management of the EDP Centre, in accor dance with the needs of the system with regard to experienced analysts and programmers, in addition to consideration of the personnel available and the priority given to the system. Immediately af ter the completion of the project, the team breaks up and its members form new project teams for the development of new systems . This type of organization has its disadvantages, but it benefits largely from the advantages of the other two types of organization,which are as follows : - Improved productivity of analysts and programmers; flexibility of the number of team members , depending on the project and possibility of pro ject completion by members working on a parttime basis. - the team consists of people with various types of capabi l ities, knowledge and specialized skills, which complement one another. - Improved specialization in data processing techniques and in the nature of company prob l ems, as well as better monitoring of progress of work, in addition to staff, based on common and objective criteria. - more simpl ified transfer and use of technical information between application, with the assignment of a team with staff who have previously worked on the completion of other appli cations which are related and similar to the application being developed. - more simplified use of standards for data pro cessing activities and the formation of systems documentation. Significant problems of this type of organization are : - the staffing of project teams (the basis on which analysts/programmers must be ass i gned to the project team) the job description for each team member and the "transfer" of an analyst/programmer from one team to another. 3. EDP PROJECT ORGANIZATION In a large company with a large EDP Centre, the

existence at one time of many large projects for the development of large systems or for the maintenance and improvement of existing systems is pos sible; in such a case , the existence and operation of the EDP Project Organization is necessary (figure 4). 3.1. EDP Steering Board or EDP Steering Committee This board consists of managers from the main departments of the Company (fig. 4) and is responsible for coordinating the planning and control of DP activities related to large projects. The committee is responsible as well for the following: - making decisions with regard to data processing services, determination of targets and require ments of long - range Company planning within budget limitat i ons and in accordance with Company policy - determination of priorities formation of project boards which will supervise the activities of the project teams for the de velopment/maintenance of the systems - appointment of the chairman of the project board (who, is usually the main user division manager of the user department) - planning and control of the activities of the project boards - decisions with regard to proposals on long-term planning concerning DP applications - decisions with regard to proposed feasibility studies - evaluation of all alternative solutions related to large and advanced systems reviews and selection of the most suitable - selection of solutions and methods which benefit to the greatest extent the entire Company - formation of the final plans for large systems and observation of their completion - determination of standards and procedures for the cooperation between EDP Centre and User Departments - user training. 3.2. EDP Project Board or EDP Management Group The EDP Project Board (fig. 4) consists of a 1imi ted number of managers from the Systems Development Divis ion of the EDP Department, the User Department (the main user division manager and systems planning manager) and a financial controller for control of project expenses. If the new system will serve more than one divisions, the Board will have one more division manager as member . As is mentioned above the main user division manager is usually assigned as chairman of the Board. The responsibilities of the Project Board are as fo l lows: - determination of targets of the new system - formation of the EDP Project Team from analysts, programmers, systems planners and users - assignment of the Project Leader creation of the appropriate environment for the project team members - determination of the resources which will be used - al l ocation of these resources - the designation of time and cost for the development of the system the approval of the time chart and the standards and procedures of the project - project progress control - system evaluation. 3.3. EDP Project Team The Team (fig. 4) is set up by the EDP Project Board in accordance with the company needs for new systems or systems enhancements. The team consists of a minimum of two people: one analyst, who will

EDP Centre and EDP Project Organization

undertake the responsibilities of the "Project Leader", and one user. New members (analysts or programmers) are added to the initially formed during the different phases of system development in accordance with the needs. Experience has proven that results are always successful whenever users for whom the system is being developed,actively participate as "regular" team members. Their participation is required not only during the analysis phase (study of existing system, determination of requirements of new system), but also during the preparation of test data for the system test and during parallel run or cutover in order to ensure that the new system covers the targets for which it has been developed. Essential for optimum performance of the team is that each member should feel fulfillment stemming from his participation in the team, completion of the project and accomplishment of the team's purpose.

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to the Project Board of the following systems manuals: - the System Analysis and Design Documentation for the Systems Development Manager - the System Operating Procedures for the DP Operations Manager, and - the Users Manual for the User Department Manager 4. I NTERFERENCES BETWEEN EDP CENTRE AND EDP PROJECT ORGANIZATIONS The EDP Project Organization is a "temporary structure" which lasts as long as a system is being developed. If the time required for the development of the new system is less than one man-year, the Project Administrative process is carried out by the Systems Development Manager of the EDP Department and by the User Department Manager. If the time required for work completion exceeds one man-year, then the project is considered large and Management in this case is the responsibility of the EDP Project Board,which the Project Leader will report to.

3.3.1. EDP Project Leader The Project Leader is usually an analyst and is responsible for the organization, the coordination and the progress of team activities, as well as for more economical use of data processing equipment. He is responsible for the preliminary study of the system, and for the progress and leadership of the Project. He must submit regular reports to his manager and to the Project Board. He must submit a report as well at the end of each phase of the development of the system. More specifically, he is responsible for the quality of work in the following areas of systems development: - Systems Analysis - Systems Design - Systems Implementation. He organizes the work programs and time charts of the project and is responsible for coordination of activities completed by the team, as well as by various sections of the DP Centre (Data Entry,Computer Operation, etc.). Considering the above, it would appear that the Project Leader is the center arount which the project revolves for the development of a system. We can say that the "nature" of the project is cyclic; this is illustrated in fig. ~ where the cycle of development of a system begins with the request of the user department and ends with the delivery of the new system to the user department. One of the basic obligations of the Project Leader is the development of the system within the agreed time,under the conditions that all tergets are fully achieved, to the greatest extent and within the limits of the relative budget. Essential for the success of the project leader for the above obligation is the accurate determination of his responsibilities, and authority granted to him. In order to succeed in his work, the Project Leader must participate actively in the development of the system and must be distinguished by his scientific background and experience in Computer Science, his capability in promoting his ideas, his concentration on details and finally by his sensitivity to the people who will work in the "future" on systems to be developed. The assignment and the work of the Project Leader end with the delivery (immediately after the development of the system)

As it is shown in fig. 4, the Systems Development Division Manager is a member of the EDP Project Board and it is within his responsibi lities in this Board to assign the project leader. So, it is understandable that if an EDP Sub-Division Manager is assigned as leader, he will have to report to the Systems Development Division Manager, who is at the same time his manager (EDP Centre Organization), and member of the EDP Project Board (EDP Project Organization). Consequently, if an EDP Section Manager or even a Senior Analyst is assigned, he will have to report hierarchically through his manager (s) to the EDP Project Board. According to the above, it is quite sure that the interferences between the "temporary structure" (EDP Project Organization) and the "permanent organization" (EDP Centre Organization) are under' control and could not create problems to the evolution of the EDP Project, i.e. to System's Development. On the contrary, the EDP Steering Board (1) makes decisions which affect the policy and progress of the Company and (2) controls all large projects so that it can be informed and can intervene in cases where possible department interaction creates problems. 5. EXPERIENCE WITH OLYMPIC AIRWAYS ORGANIZATIONAL STRUCTURES The EDP Centre in Olympic Airways Operates in accordance to a variation of Matrix Organization (fig. 6). As for the Systems Development Division, two enhancements have been proposed to the top management: - the Data Base Administration Section which operates now within the Business Systems Sub-Division, will report directly to the Systems Development Division Manager, and - the Information Centre or End User Computing, which is an entirely new section. This section will also report derectly to the Systems Development Division Manager, and will support the End Users who will use either micro-computers and/or terminals of the mainframe. These activities are handled for two years now by a "permanent" team within the Systems Development Division. The EDP Project Organization works also in Olympic Airways. An EDP Steering Board consisting of the directors of main departments of the Company operates normally, but instead of the EDP Project Boards a "Project Monitoring Board", as it is

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ca ll ed , exists. This Board consists of the EDP Direc t or, the Sys tems Development Division Manager, an d a consu lt ant to the Top Management. The Project Monitoring Board has the responsibi liti es of the EDP Project Boards, takes the reports of the project teams and report s to the EDP Steer in g Board. For the t ime be ing our experie nce l eads to the dec i sio n to ha ve the main user di vi s ion managers participate i n the development efforts, either by forming relative project board s or by giving them specific responsibi liti es within the l i mits of the project organization. REFER EN CES Ame r ican Airli nes. DP Organization. Burril C.W., and L.W .E ll swort h (1980) .Modern Project Management.Burrill-Ellsworth Assoc i ates , I NC. IBM, Systems Science Institute (1982).Managing Da t a Process ing. IBM , Information System Management Institute (1985).Manag in g the IS Resource. McFarlan F.W., an d J .L.McKenney (1983).Corpora te Information Sys t ems Management. R. D. Irwin (Ed. ) National Computing Ce ntre (NCC) (1978). Pr oject Plann ing and Control. NCC Publications. NCC (1981). Guideliness for Computer Managers . NCC Publ icat i ons. Swissair. DP Organization.

Fig. 2. Funct i onal Or ga nization

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EDP Cent re and EDP Pr o j ec t Organ iza t ion

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