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Chapter 4: Project Integration Management. Information Technology Project Management, Sixth Edition. Note: See the text itself for full citations. Learning Objectives.

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chapter 4 project integration management

Chapter 4:Project Integration Management

Information Technology Project Management, Sixth Edition

Note: See the text itself for full citations.

learning objectives
Learning Objectives

Information Technology Project Management, Sixth Edition

Describe an overall framework for project integration management as it relates to the other PM knowledge areas and the project life cycle

Explain the strategic planning process and apply different project selection methods

Explain the importance of creating a project charter to formally initiate projects

learning objectives continued
Learning Objectives (continued)

Information Technology Project Management, Sixth Edition

Describe project management plans development, understand the content of these plans, and review approaches for creating them

Explain project execution, its relationship to project planning, the factors related to successful results, and tools and techniques to assist in project execution

Describe the process of monitoring and controlling project work

learning objectives continued1
Learning Objectives (continued)

Information Technology Project Management, Sixth Edition

Understand the integrated change control process, planning for and managing changes on information technology projects, and developing and using a change control system

Explain the importance of developing and following good procedures for closing projects

Describe how software can assist in project integration management

what is project integration management
What is Project Integration Management ?

The integration of all project components (people, plans, work) and coordination of other knowledge areas throughout project life cycle to successfully complete the project

The integration of processes from all project process groups (initiation, planning, execution, control, and closing) throughout project lifecycle to achieve project goals

Information Technology Project Management, Sixth Edition

the key to overall project success good project integration management
The Key to Overall Project Success: Good Project Integration Management

Information Technology Project Management, Sixth Edition

Integrating all project components (people, plans, work) together to achieve project goals

Maintain good communication and relationships with all stakeholders – interface management

Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle

Many new project managers have trouble looking at the “big picture” and focus on too many details

Project integration management is not the same thing as software integration

example
Example

Nick Carson recently became a project manager of a critical biotech enterprise

The project involved creating HW and SW for a DNA-sequencing instrument

Nick had been the leading software developer on the project before being the project manager

CEO asked him to deliver a production version of the SW for the DNA-sequencing instrument in nine months

Nick had the technical background to make the project success

Information Technology Project Management, Sixth Edition

example cont
Example (cont.)
  • Nevertheless, top management was upset because:
  • Nick performed the role of SW integrator instead of project manager
  • He focused on technical issues rather than management issues and ignored the big picture of the project
  • He never provide top management with detailed plans or accurate schedules
  • He ignored key stakeholders (top management) and focus on his technical team
  • He thought the project integration management means SW integration

Information Technology Project Management, Sixth Edition

what went wrong
What Went Wrong?

*Matlack, Carol. “First, Blame the Software,” BusinessWeek Online (October 5, 2006).

  • The Airbus A380 megajet project was two years behind schedule in Oct. 2006, causing Airbus’ parent company to face an expected loss of $6.1 billion over the next four years
  • The project suffered from severe integration management problems, or “integration disintegration...Early this year, when pre-assembled bundles containing hundreds of miles of cabin wiring were delivered from a German factory to the assembly line in France, workers discovered that the bundles, called harnesses, didn't fit properly into the plane. Now Airbus will have to go back to the drawing board and redesign the wiring system.”*

Information Technology Project Management, Sixth Edition

strategic planning and project selection
Strategic Planning and Project Selection

Information Technology Project Management, Sixth Edition

  • Strategic planning involves determining long-term objectives, predicting future trends, and projecting the need for new products and services
  • Organizations often perform a SWOT analysis to aid in strategic planning (selecting project)
    • Analyzing Strengths, Weaknesses, Opportunities, and Threats
  • As part of strategic planning, organizations:
    • Identify potential projects
    • Use realistic methods to select which projects to work on
    • Formalize project initiation by issuing a project charter
example swot
Example: SWOT
  • A group of four people want to start new business in film industry
  • They create SWOT analysis as follows:
  • Strengths:
    • We have numerous contact in the film industry
    • Two of us have strong sales and interpersonal skills
    • Two has strong technical skills and familiar with sw tools
    • We all have impressive samples of completed projects
  • Weakness
    • No accounting/financial experience
    • No clear marketing strategy for product and services

Information Technology Project Management, Sixth Edition

example cont1
Example (cont.)
    • Little money to invest in new projects
    • No company website and limited use of technology
  • Opportunities
    • Current client has mentioned a large project
    • Film industry continues to grow
    • Two major conferences this year where we could promote our company
  • Threats
    • Other companies can provide services we can
    • Customers prefer well established organization
    • High risk in film business

Information Technology Project Management, Sixth Edition

example cont2
Example (cont.)
  • Identifying Potential Projects
    • Find an external accountant to help run the business
    • Hire website developer
    • Develop a marketing plan
    • Develop a strong proposal to get the large project of the client
    • Plan to promote the company at two major conference this year

Information Technology Project Management, Sixth Edition

mind map of a swot analysis to help identify potential projects
Mind Map of a SWOT Analysis to Help Identify Potential Projects

Information Technology Project Management, Sixth Edition

information technology strategic planning process
Information Technology Strategic Planning Process

Information Technology Project Management, Sixth Edition

methods for selecting projects
Methods for Selecting Projects

Information Technology Project Management, Sixth Edition

  • There are usually more projects than available time and resources to implement them
  • Methods for selecting projects include:
    • Focusing on broad organizational needs
    • Categorizing information technology projects
    • Performing net present value or other financial analyses
    • Using a weighted scoring model
focusing on broad organizational needs
Focusing on Broad Organizational Needs

Information Technology Project Management, Sixth Edition

  • Project that meet broad organization needs are more likely to be successful
  • Broad organization needs such as
    • Improve safety
    • Increase morale (emotional condition, cheerfulness)
    • Provide better communications
    • Improve customer services
  • Selection based on the following criteria:
    • There is aneed for the project
    • There arefunds available
    • There’s a strong willto make the project succeed
categorizing it projects
Categorizing IT Projects

Information Technology Project Management, Sixth Edition

  • One categorization is whether the project addresses:
    • A problem: is undesirable situations that prevents organization from achieving its goals (example: slow IS needs processor, memory, and storage upgrade)
    • An opportunity: a chance to improve the organization (ex: new project that can make the organization)
    • A directive: new requirements imposed by management or government (ex: medical tech must meet rigorous (rigid) government requirements)
    • It is often easier to get approval and fund for the projects that address problems or directives to avoid hurting the organization
categorizing it projects1
Categorizing IT Projects
  • Another categorization is how long it will take to do the project and when it is needed
    • Quick project
    • Project with specific time window
  • Another is the overall priority of the project
    • high priority project
    • medium priority project
    • low priority project
  • Always complete high priority project first even med. and low could be finished in less time

Information Technology Project Management, Sixth Edition

financial analysis of projects
Financial Analysis of Projects

Information Technology Project Management, Sixth Edition

  • Financial considerations are often an important consideration in selecting projects
  • Three primary methods for determining the projected financial value of projects:
    • Net present value (NPV) analysis
    • Return on investment (ROI)
    • Payback analysis
net present value analysis
Net Present Value Analysis

Information Technology Project Management, Sixth Edition

Net Present Value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time

Projects with a positive NPV should be considered if financial value is a key criterion

The higher the NPV, the better

calculating npv using excel
Calculating NPV using Excel

Information Technology Project Management, Sixth Edition

jwd consulting npv example
JWD Consulting NPV Example

Note: See the template called business_case_financials.xls

Information Technology Project Management, Sixth Edition

npv calculations
NPV Calculations

Information Technology Project Management, Sixth Edition

Determine estimated costs and benefits for the life of the project and the products it produces

Determine discount rate r (capitalization rate): it is the rate used in discounting future cash flow.

Calculate the discount factor, f, of year t as follows:

return on investment
Return on Investment

Information Technology Project Management, Sixth Edition

  • Return on investment (ROI) is calculated by subtracting the project costs from the benefits and then dividing by the costs

ROI = (total discounted benefits - total discounted costs) / discounted costs

  • The higher the ROI, the better
  • Many organizations have a required rate of return or minimum acceptable rate of return on investment for projects
  • Internal rate of return (IRR) can by calculated by finding the discount rate, r, that makes the NPV equal to zero
payback analysis
Payback Analysis

Information Technology Project Management, Sixth Edition

  • Another important financial consideration is payback analysis
  • The payback period is the amount of time it will take to recoup (reimburse), in the form of net cash inflows, the total dollars invested in a project
  • Payback occurs when the net cumulative discounted benefits equals the cummulative costs
  • Many organizations want IT projects to have a fairly short payback period
charting the payback period
Charting the Payback Period

Information Technology Project Management, Sixth Edition

weighted scoring model
Weighted Scoring Model

Information Technology Project Management, Sixth Edition

  • A weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria
      • Identify criteria important to the project selection process
      • Assign weights (percentages) to each criterion so they add up to 100%
      • Assign scores to each criterion for each project
      • Multiply the scores by the weights and get the total weighted scores
  • The higher the weighted score, the better
sample weighted scoring model for project selection
Sample Weighted Scoring Model for Project Selection

Information Technology Project Management, Sixth Edition

project integration management processes
Project Integration Management Processes

Information Technology Project Management, Sixth Edition

Develop the project charter: working with stakeholders to create the document that formally authorizes a project—the charter

Develop the project management plan: coordinating all planning efforts to create a consistent document—the project management plan

Direct and manage project execution:carrying out the project management plan by performing the activities included in it

project integration management processes continued
Project Integration Management Processes (continued)

Information Technology Project Management, Sixth Edition

Monitor and control the project work: overseeing project work to meet the performance objectives of the project

Perform integrated change control: coordinating changes that affect the project’s deliverables

Close the project or phase: finalizing all project activities to formally close the project or phase

project integration management proceses
Project Integration Management Proceses

Information Technology Project Management, Sixth Edition

integration management processes summary
Integration management processes summary

Information Technology Project Management, Sixth Edition

project charters process
Project Charters Process

Information Technology Project Management, Sixth Edition

After deciding what project to work on, it is important to let the rest of the organization know

A project charter is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management

Key project stakeholders should sign a project charter to acknowledge agreement on the need and intent of the project; a signed charter is a key output of project integration management

contents of a project charter
Contents of a project charter

Project title and date of authorization

Project manager name and contact info

A summary schedule include the planned start date and finish date

Project budget

Project objectives

Project success criteria

A planned approach for managing the project

Roles and responsibilities

Sign-off section

comments

Information Technology Project Management, Sixth Edition

project charter for the dna sequencing instrument completion project
Project Charter for the DNA-Sequencing Instrument Completion Project

Information Technology Project Management, Sixth Edition

charter continued
Charter (continued)

Information Technology Project Management, Sixth Edition

project management plan process
Project Management Plan Process

Information Technology Project Management, Sixth Edition

A project management planis a document used to coordinate all project planning documents and help guide a project’s execution and control

Plans created in the other knowledge areas a (scope plan, time plan, cost plan,…) are parts of the overall project management plan

project management plan contents
Project management plan contents

Every project is unique

Every project has a unique project management plan depends on its nature and size

There are common elements in most project management plans

Information Technology Project Management, Sixth Edition

common elements of a project management plan
Common Elements of a Project Management Plan

Information Technology Project Management, Sixth Edition

Introduction or overview of the project

Description of how the project is organized

Management and technical processes used on the project

Work to be done (WBS)

Schedule

Budget information

introduction
Introduction

Project name

A brief description of the project(needs, goals, estimated time, and cost)

Sponsor name and contact information

Project manager, key team members, name and contact information

Deliverables (sw, hw, technical reports, and training materials)

A list of important reference materials (project history and plans in other knowledge area)

A list of definition and acronyms

Information Technology Project Management, Sixth Edition

description of project organization
Description of project organization
  • Organizational charts:
    • Company organizational chart
    • Customers organizational chart
    • Project organizational chart :authorities, communications, and people
  • Project responsibilities: functions and activities, people assigned to them
  • Other organizational information: processes and major steps involved in them

Information Technology Project Management, Sixth Edition

management and technical processes
Management and technical processes
  • Management objectives: top management’s view, priorities, major assumptions, and constraints
  • Project control: how to monitor project progress and handle changes
  • Risk management: how to identify, manage, and control risks
  • Project staffing: number and types of people required for the project
  • Technical processes: specific methodologies a project might used
    • Computer Aided Software Engineering (CASE) tools for software development
    • Specific format for technical reports

Information Technology Project Management, Sixth Edition

work to perform wbs
Work to perform(WBS)

Major work packages: use WBS to identify different work packages, provide a scope statement to describe them (refer to scope management plan)

Key deliverables: describe key products and their expected quality

Other work-related information: for example specific HW and SW used in the project

Information Technology Project Management, Sixth Edition

schedule
Schedule

Summary schedule: planned completion dates for key deliverables

Detailed schedule: provide more information on project schedule and discuss the dependencies that could affect the schedule (refer to schedule management plan)

Other schedule-related information: discuss assumptions in preparing project schedule

Information Technology Project Management, Sixth Edition

budget
Budget

Summary budget: total estimate of the overall project’s budget

Detailed budget: more detailed information on the budget (refer to cost management plan)

Other budget-related information: assumption, other important information related to financial aspects of the project

Information Technology Project Management, Sixth Edition

creating project management plan
Creating Project Management Plan
  • Using software tools such as Microsoft Project 7 that provides templates and guidelines for preparing project management plan
  • Using agencies guidelines
    • DOD standard 2167, software project management plan
    • IEEE standard 1058-1998

Information Technology Project Management, Sixth Edition

sample contents for a software project management plan spmp
Sample Contents for a Software Project Management Plan (SPMP)

Information Technology Project Management, Sixth Edition

project execution process
Project Execution Process

Information Technology Project Management, Sixth Edition

Project execution involves managing and performing the work described in the project management plan

The majority of time and money is usually spent on execution

The application area of the project directly affects project execution because the products of the project are produced during execution

coordinating planning and execution
Coordinating Planning and Execution

Information Technology Project Management, Sixth Edition

  • Project planning and execution are intertwined and inseparable activities
  • Project plan guides project execution
    • Good plan should help produce good products
    • Plans should document what good work results consist of
  • Experience gained from completed project is used to update plans
coordinating planning and execution cont
Coordinating Planning and Execution (cont.)

Those who will do the work should help to plan the work

Project team should develop skills in both planning and execution

In IT projects, programmers who create the code also write detailed specs (plans) of it

System analysts begin their career as programmers, so they understand what type of analysis they need to write a good code

Information Technology Project Management, Sixth Edition

important skills for project execution
Important Skills for Project Execution

Information Technology Project Management, Sixth Edition

  • General management skills like leadership, communication, and political skills
  • Technical and product, business, and application area skills and knowledge
    • In small project, project manager needs technical knowledge because they may need to do part of the work
    • In large project, project manger needs business and application knowledge more than technical knowledge
  • Use of specialized tools and techniques
project execution tools and techniques
Project Execution Tools and Techniques

Information Technology Project Management, Sixth Edition

  • Expert judgment: experts can help project managers and their teams make many decisions related to project execution (methodology, training approach, programming language, …)
  • Project management information systems: there are hundreds of project management software products available on the market today, and many organizations are moving toward powerful enterprise project management systems that are accessible via the Internet (Microsoft Project 2007 Appendix A) creates

Gant chart, network diagram, critical path analysis, …

monitoring and controlling project work
Monitoring and Controlling Project Work

Information Technology Project Management, Sixth Edition

Monitoring project work includes collecting, measuring, and disseminating performance information in the form of performance report

A baseline (basis for judgment): is the approved project management plan plus approved changes

performance metrics: work performed, key deliverables, dates for completing deliverables, cost

Work should be done as planned otherwise an approved change request should be issued

Changes are inevitable on most projects

performance reports
Performance reports

Used to monitor project execution and control changes

Alert project manager to the issues that are causing problems and degrade performance

Project manager should decide if corrective or preventive actions are needed

Corrective actions should result in improvement in project performance

Preventive actions reduce the probability of negative consequence associated with project risk

Information Technology Project Management, Sixth Edition

integrated change control
Integrated Change Control

Information Technology Project Management, Sixth Edition

  • Identifying, evaluating, and managing changes throughout the project life cycle
  • Three main objectives are:
    • Identifying the factors that create changes to ensure that changes are beneficial
    • Determining that a change has occurred and communicate significant changes to stakeholders and top management
    • Managing actual changes as they occur
change control on information technology projects
Change Control on Information Technology Projects

Information Technology Project Management, Sixth Edition

Former view: the project team should strive to do exactly what was planned on time and within budget

Problem: stakeholders rarely agreed up-front on the project scope, and time and cost estimates were inaccurate

Modern view: project management is a process of constant communication and negotiation

Solution: changes are often beneficial, and the project team should plan for them

change control system
Change Control System

Information Technology Project Management, Sixth Edition

A formal, documented process that describes when and how official project documents and work may be changed

Describes who is authorized to make changes and how to make them

closing projects and phases
Closing Projects and Phases

Information Technology Project Management, Sixth Edition

  • To close a project or phase, you must finalize all activities and transfer the completed or cancelled work to the appropriate people
  • Main outputs include:
    • Final product, service, or result transition
    • Final report, historical info, lesson learned
using software to assist in project integration management
Using Software to Assist in Project Integration Management

Information Technology Project Management, Sixth Edition

  • Several types of software can be used to assist in project integration management
    • Documents can be created with word processing software
    • Presentations are created with presentation software
    • Tracking can be done with spreadsheets or databases
    • Communication software like e-mail and Web authoring tools facilitate communications
    • Project management software can pull everything together and show detailed and summarized information
    • Business Service Management (BSM) tools
      • track the execution of business process flows
      • alignment project with business goals
chapter summary
Chapter Summary

Information Technology Project Management, Sixth Edition

  • Project integration management involves coordinating all of the other knowledge areas throughout a project’s life cycle
  • Main processes include:
    • Develop project charter
    • Develop project management plan
    • Direct and manage project execution
    • Monitor and control project work
    • Perform integrated change control
    • Close the project or phase