Integration Management Flashcards
Project Charter
Formally recognizes the existence of a project
Give the PM authority to spend money and commit resources to the project
Provides objectives, high level requirements and success criteria
Identifies constraints and high level risks
Provides assumptions
Links the project to ongoing work of the org
Business case
Captures the business need; explains why the project was selected how it fits into the organizations strategic goals and how it will bring business value to the organization
PMs need to keep the business case in mine throughout the project to make sure the achieves the objectives for which it was selected
Benefit measurement methods
Murder board
Peer review
Scoring models
Economic models
Constrained optimization methods
Linear programming
Integer programming
Dynamic programming
Multi-objective programming
Constraints
Factors that limit the teams options
Example: limits on resources, budget, schedule and scope (project must be completed with only 5 resources)
Assumptions
Things that we assumed to be true but they may not be true
Example: it is assumed we will not need engineering department approval before we start the activity
Statement of Work (SOW)
Created by the customer or sponsor and describes their needs, the product scope and how the project fits into the organizations strategic plan.
Management Plan
Document the strategy for managing the project and the processes related to each knowledge area.
A set of documents with processes, procedures, practices, standards, and metrics to follow to ensure consistent results
Management plans look forward in time and there are management plans for each knowledge areas
Project management plan
Integration function
Integrates all the individual management plans into a cohesive whole creating a centralized document to describe what is involved in the project
Project management processes Knowledge area management plans Scope, schedule and cost baseline Requirements management plan Change management plan Configuration management plan Process improvement plan
Baselines (performance measurement baseline)
Scope - project scope statement, WBS, and WBS dictionary
Schedule - the agreed upon schedule
Cost - the spending plan indicating how much money is approved for the project
***record of what the project had planned scheduled and budgeted for each area listed above
Used to compare the projects actual performance against the planned performance
Deviations from baselines are often due to incomplete risk identification and risk management
Requirements management plan
Describes how requirements will be gathered, analyzed, prioritized, evaluated, managed and controlled
Change management plan
Plan for managing changes and the change process on the project; describes how changes will be managed and controlled
Change control system
System that includes forms, reports, processes and software to track and control changes
Part of PMIS
Configuration management plan
Plan for managing changes to the documentation about the deliverables and and processes of the project including what org tools you will use
Includes a listing of approved configuration identification status of proposed changes to the configuration and the implementation status of approved changes
Plan for making sure everyone knows what version of the scope schedule etc is the latest version
Configuration management system
Contains the org standardized configuration management tools processes and procedures that can be used to track and control evolution of documentation
Part of PMIS
Process improvement plan
How processes that are used on the project to complete the work or perform project management activities will be evaluated or improved
Example: installing software on hundreds of computers; after a few installations are completed the PM should look for ways to improve the process
Project management plan approval
Requires formal approval by management sponsor project team and key stakeholders
Kickoff meeting
Meeting of the key parties involved in the project and is to announce the start of the project and ensure everyone is familiar with its details and with the people working on it
Project documents
Any documents that are not apart of the project management plan ( project charter, SOW, contracts / agreements )
Project documents updates are an output of many of the project management processes
Work authorization system
System for authorizing the start of work packages or activities
Example: plumber and electrician can’t work in one small area at the same time; the system is put in place to make sure work is only started when a formal authorization is given.
Corrective action
Any action taken to bring expected future project performance inline with the project management plan; dealing with actual deviations from the performance measurement baseline or other metrics
Preventative action
Dealing with anticipated or possible deviations from the performance management baseline and other metrics
Examples: arranging for team members to receive training because no one has the skills to backup the team member who got sick and has those skills
Changing a resource because their last activity failed to meet its acceptance criteria
Defect repair
Another way of saying “rework” and may be requested when a component of the project does not meet specifications
Integrated change control
Look at the impact of each change on all the project constraints; all change requests are evaluated as part of the integrated change control process
Change control board
Responsible for reviewing and a analyzing change requests in accordance with the change management plan.
Process for making changes
- Evaluate the impact
- Identify options
- Get the change request approved internally
- Get the customer to buy-in ( if necessary )
Close project or phase
Effort finalizes all activities across all process group to formally close out the project or phase
PV ( Present value )
PV = FV / ( 1 + r)n (squared)
The value today of future cash flows
Net present value
The present value of the total benefits ( income or revenue ) minus the costs over many time periods
The project with the greatest npv is typically selected
IRR internal rate of return
If a company has more than one project in which to implant may look at the returns of the different projects and then select the project with the highest return
The higher the IRR the better
Payback period
The length of time it takes for the organization to recover its investment in the project before it starts accumulating profit
The shorter the payback period the better
Cost benefit analysis
A benefit cost ratio of greater than 1 means the benefits are greater than the costs
Less than 1 means the costs are greater than the benefits
a benefit cost ratio of 1 means the costs and benefits are the same
Agreements / contracts
The development of a charter often starts with some form of agreement or understanding which may include a statement of work
In an internal project the initial agreement may be an email or conversation if outside the organization a formal contract is typically involved
Economic value added
Whether the project returns to the company more value than the initiative costs
Opportunity cost
Refers to the opportunity given up by selecting one project over another
Project A with an NPV of 45,000 or project B with an NPV of 85,000 what is the opportunity cost….
$45,000
Sunk costs
Sunk costs should not be considered when deciding whether to continue with a troubled project
Working capital
Current assets minus current liabilities for an organization
Depreciation
Large assets purchased by a company lose value over time
Accelerated depreciation
- double declining balance
- sum of the years digits
Straight line depreciation - the same amount of depreciation is taken each year
Law of diminishing returns
After a certain point adding more input will not produce a proportional increase in productivity
Actions required to make a project management plan
Perform schedule compression Determine methodology Agree on process to report Meet with stakeholders to define their roles Apply risk reserves Look for impacts Agree on reporting formats and communication Work with team to estimate projects Analyze stakeholder needs and wants
Monitor and control project work
Analyzing and tracking risks, performing quality control activities, assessing possible outcomes across the project, creating work performance reports, updating the project plan and project documents accordingly
