PM - CH 4 - PROJECT INTEGRATION MANAGEMENT
Baseline
A starting point documented to be used for future comparison.
Mind Mapping
A visual mapping technique that uses branches radiating from a core idea to structure thoughts.
Project Docs Updates
All docs should be reviewed and marked final. Other's may refer to this docs in the future.
Payback Period
Amount of time it will take to recoup the total dollars invested, in terms of net cash inflows. How much time will elapse before accrued benefits overtake accrued/continuing costs.
Will
Are we interested on the project?
General Priority
Based on current business environment. They can be high, medium, or low. Complete high priority first.
Cash Flow
Benefits - Cost
Internal Rate of Return (IRR)
Find what discount rate results in an NPV of zero.
Project Charter: Organizational process assets
Formal and informal plans, policies, procedures, guidelines, lessons learned, historical info, and info, financial, and management systems.
Identifying Potential Projects
Guided by the IT Strategic Plan, this is the process in which projects are selected to work on using realistic methods.
Integrated Change Control
Identifying, evaluating, and managing changes throughout the project life cycle.
Coordinating Planning and Execution
Improve coordination between project plan development and execution, who will do the work should plan the work.
Tactic
Informal knoledge. Difficult to express and highly personal.
Discount Rate/Capitalization Rate/Opportunity Cost of Capital
Interest rate used to discount cash flows. Takes into account the time value of money and the risk/uncertainty of future cash flows. Greater uncertainty, higher the discount.
Strategic Planning
Involves determining long-term objectives by analizing the strengths and weaknesses, studying opportunities and threats, predicting future trends, and projecting the need for new products/services.
Close the Project or Phase
Involves finalizing all activities to formally close the project or phase.
Monitor and Control Project Work
Involves overseeing activities to meet the performance objectives.
Manage Project Knowledge
Involves using existing knowledge and creating new knowledge to achieve project objectives.
Project Charter: Business case
Justify the investment. Project objective, high-level requirements, time/cost goals.
Organizational process asset updates
List of documents with historical information produced from the project.
Steering Committee
Managers from different departments that ensure that all projects are related and benefits the entire organization.
Directing/Managing Project Work
Managing and performing the work described in the PMP.
Required Rate of Return
Minimum acceptable rate of return on an investment.
Impetus: Directives
New requirements imposed by management, government, or external influence.
Determine that a change has occurred
PM must know about changes and communicate the changes to the stakeholders.
Return on Investment (ROI)
Percentage result of substracting project costs from benefits and then dividing by the costs. The higher, the better.
Cost of Capital
Rate of return that could have been erned by putting the same money into a different investment with equal risk.
Project Charter: Enterprise environmental factors
Relevant government/industry standards, marketplace conditions.
Implementing a balanced scorecard
Strategic planning and management system that helps organizations align business activities to strategy, improve communications, and monitor performance against strategic goals.
Top Criteria for Investing in IT Projects
Supporting implicit business objectives and providing financial incentives.
Using a weighted scoring model
Tool that provides a systematic process for selecting projects based on specific criteria. Select criteria, agree on it, evaluate all projects against each other.
Impetus: Problems
Undersirable situations that prevent an organization from achieving goals.
Project Integration Management
involves coordinating all of the other project management knowledge areas throughout a project's life cycle.
Interface Management
involves identifying and managing the points of interaction between various elements of a project. Primary tools: communication and relationships.
Perform Integrated Change Control
involves identifying, evaluating, and managing changes throughout the project life cycle.
ROI
(Total Discounted Benefits - Total Discounted Costs) / Discounted Costs
Project Charter
-Business case -Benefits management plan -Agreements -Enterprise environmental factors -Organizational process assets
Main Tools and Techniques for Project Charter
-Expert judgement -Data gathering -Interpersonal and team skills -Meetings
Project Execution Tools and Techniques
-Expert judgement -Meetings -PM Information Systems
Two types of knowledge
-Explicit -Tactic
Methods for Selecting Projects
-Focusing on broad organization needs -Categorizing IT projects -Performing financial analysis -Using a weighted scoring model -Implementing a balanced scorecard
IT Planning Stages
-IT Strategy Planning -Business Area Analysis -Project Planning -Resource Allocation
Categorizing IT projects
-Impetus (easy approval) -Time Window -General Priority
Integrated Change Control Main Objectives
-Influence factors that create changes to ensure they are beneficial -Determine that a change has occurred -Manage changes as they occur
Financial Incentives
-Internal Rate of Return (IRR) -Net Present Value (NPV)
Project Management Plan Contents
-Intro/overview of project -Project organization -Management/technical processes -Scope -Schedule/budget -References
Performing financial analysis
-Net Present Value (NPV) -Internal Rate of Return (IRR)
Impetus
-Problems -Oportunities -Directives
Outputs of closing projects
-Project docs updates -Final product/service/result transition -Final Report -Organizational process asset updates
Project Charter Contents
-Project title/ate -Manager's name/contact info -Planned start/finish dates -Summary of budget -Description of project objectives -Success criteria -Summary of approach -Roles and Responsibilities -Sign-Off section -Comments section
SWOT Analysis
-Strenths -Weaknesses -Opportunities -Threats
Final Report
-Summary of project -Scope objectives, criteria and evidence -Quality objectives, criteria, product quality, and verification of info -Schedule objectives, planned and actual milestone delivery dates and reasons for variance -Cost objectives, acceptance cost range, actual costs, and reasons for variance -Summary of how the project achieved the benefits it was supposed to address -Summary of how the project achieved the business needs identified -Summary of risks/issues encountered
Project Integration Management Processes
1. Develop Project Charter 2. Develop Project Management Plan 3. Direct and Manage Project Work 4. Manage Project Knowledge 5. Monitor and Control Project Work 6. Perform Integrated Change Control 7. Close the Project or Phase
Final Product/Service/Result Transition
A formal acceptance or handover includes a written statement that the terms of the contract were met.
Change Control Board
A formal group of people responsible for approving or rejecting changes on a project.
Change Control System
A formal, documented process that describes when and how official project documents may be changed.
Net Present Value (NPV)
Calculate the expected net gain/loss by calculating the value of all expected future cash inflow/outflow at the present time. Positive means that the project exceeds the cost of capital. NPV(Discount Rate, Cash Flow from first year to last year)
Direct and Manage Project Work
Carry out the project management plan by performing its activities.
Impetus: Opportunities
Chances to improve the organization.
Change Requests
Common. Oral or written. Documented to avoid problems. Should be beneficial for the project. Should be approved by the Program Owner.
Time Window
Completed very quickly or they will no longer be valid.
Project Charter: Agreements
Contract/agreement should include most of the info for the project charger.
Develop Project Management Plan
Coordinates all planning efforts to create a consistent doc.
Project Charter: Benefits management plan
Describes how/when the project benefits will be delivered and how they will be managed. Target benefits, timeframe, benefits owner, metrics, assumptions, risks.
NPV
Discount Rate / Range of Cash Flows
Funding
Do we have funds to achieve it?
Project Management Plan (PMP)
Doc used to coordinate all project planning docs and help guide the project's execution and control.
Need
Does the organization believe there is a need for it?
Explicit
Easily explained using words, pics or numbers.
Influence factors that create changes to ensure they are beneficial
Ensure that changes are beneficial. Team must make trade-offs among the dimensions.
Configuration Management
Ensures that the descriptions of the project's products are correct and complete.
Manage changes as they occur
Exercise discipline in managing to help minimize the number of changes.
Focusing on broad organization needs
Will make projects more successful. However, justification and financial value are impossible. They need to meet: need, funding, and will.
Develop Project Charter
Working w/stakeholders to create the doc that formally authorizes the project.