Project Integration Management Chapter 4

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary purpose of developing a project charter?

To formally authorize a project (correct)

To create a detailed project schedule

To develop a preliminary project scope statement

To outline the project's budget

Who is involved in developing the preliminary project scope statement?

Project sponsor only

Stakeholders, especially users of the project's products (correct)

Project team members only

Project manager only

What is the primary focus of project integration management?

Developing a project budget

Developing a detailed project schedule

Coordinating all planning efforts to create a consistent project management plan (correct)

Managing project team members

What is the purpose of integrated change control?

To coordinate changes that affect the project's deliverables and organizational process assets Signup and view all the answers

What is the final step in project integration management?

Closing the project Signup and view all the answers

What is the primary reason why the net present values (NPVs) of two projects with equal totals may differ?

The time value of money is not considered Signup and view all the answers

What is the primary benefit of good project integration management?

Overall project success Signup and view all the answers

What is the primary difference between project integration management and software integration?

Project integration management is focused on overall project management, while software integration is focused on software development Signup and view all the answers

When determining the NPV of a project, what is the first step?

Estimate the costs and benefits for the life of the project Signup and view all the answers

What is the primary purpose of monitoring and controlling project work?

To oversee project work to meet the performance objectives of the project Signup and view all the answers

Why is it essential to check with your organization when determining the discount rate for NPV calculations?

To follow the organization's established guidelines Signup and view all the answers

What is a common difference in NPV calculation approaches between organizations?

The way costs are entered (as negative numbers or not) Signup and view all the answers

What is the purpose of calculating the NPV of a project?

To evaluate the financial viability of the project Signup and view all the answers

In which stage of project management is NPV calculation typically used?

Project planning Signup and view all the answers

What is one of the important criteria for a project to be considered?

There is a need for the project Signup and view all the answers

What is the primary focus of categorizing IT projects?

Evaluating the project's response to a problem, opportunity, or directive Signup and view all the answers

Which method of financial analysis calculates 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?

Net Present Value (NPV) analysis Signup and view all the answers

What does a positive NPV indicate in a project?

The project should be considered if financial value is a key criterion Signup and view all the answers

What is a key aspect of the project selection process?

Evaluating the project's financial considerations Signup and view all the answers

How can a project's value be justified?

By measuring the gold roughly Signup and view all the answers

What is another categorization of IT projects based on?

The time it will take to complete a project or the date by which it must be done Signup and view all the answers

Which of the following is NOT a primary method for determining the projected financial value of a project?

SWOT analysis Signup and view all the answers

Study Notes

Project Integration Management

Project managers must coordinate all other knowledge areas throughout a project's life cycle.
Project integration management is not the same thing as software integration.

Project Integration Management Processes

Develop the project charter: Work with stakeholders to create the document that formally authorizes a project.
Develop the preliminary project scope statement: Work with stakeholders to develop high-level scope requirements and create a preliminary project scope statement.
Develop the project management plan: Coordinate all planning efforts to create a consistent, coherent document.
Direct and manage project execution: Carry out the project management plan by performing the activities included in it.
Monitor and control the project work: Oversee project work to meet the performance objectives of the project.
Perform integrated change control: Coordinate changes that affect the project's deliverables and organizational process assets.
Close the project: Finalize all project activities to formally close the project.

Focusing on Broad Organizational Needs

IT projects often have a high value, but strong justification can be difficult to provide.
Three important criteria for projects:
- There is a need for the project.
- There are funds available for the project.
- There is a strong will to make the project succeed.

Categorizing IT Projects

One categorization assesses whether the project provides a response to:
- A problem
- An opportunity
- A directive
Another categorization is based on the time it will take to complete a project or the date by which it must be done.
Another categorization is the overall priority of the project.

Financial Analysis of Projects

Financial considerations are often an important aspect of the project selection process.
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 (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.

NPV Calculations

Determine estimated costs and benefits for the life of the project and the products it produces.
Determine the discount rate (check with your organization on what to use).
Calculate the NPV.
Consider the investment year as year 0 or year 1, and ensure costs are represented as negative numbers or not, depending on your organization's preferences.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz covers project integration management, a crucial aspect of project management that involves coordinating all knowledge areas throughout a project's life cycle. Learn how to focus on the big picture and avoid getting bogged down in details.