Integration Mgmt. Flashcards
What is the process of integration management?
Develop Project Charter Develop Project Management Plan Direct and Manage Project Work Manage Project Knowledge Monitor and Control Project Work Perform Integrated Change Control Close Project or Phase
What is the Develop Project Charter process?
What are the Outputs?
Creating the project charter, which involves planning the project at a high level to assess whether it is feasible within the given constraints
Outputs:
Project Charter
Assumption log
What is the Develop Project Management Plan process?
What is its output?
The process of creating a project management plan that is bought into, approved, realistic, and formal
Outputs:
Project management plan
What are the key outputs of the Direct and Manage Project Work process?
Issue log Deliverables Work performance data Change requests Updates to the project management plan and project documents Updates to organizational process assets
What is the key output of the Manage Project Knowledge process?
The lessons learned register
What are the key outputs of the Monitor and Control Project Work process
Change requests
Work performance reports
Updates to the project management plan and project documents
What are the key outputs of the Close Project or Phase process
A project manager must get formal acceptance of the project and its deliverables, issue a final report that shows the project has been successful, issue the final lessons learned, and index and archive all the project records
Explain the project manager’s role as an integrator
Pulling all of the pieces of the project into a cohesive whole that gets the project done faster, cheaper, and with fewer resources, while meeting project objectives
What are the two major categories of project selection methods?
Benefit measurement methods (comparative)
Constrained optimization methods (mathematical)
What are the economic measures for selecting a project?
Return on investment Present value Net present value Internal rate of return Payback period Cost-benefit analysis
Define present value
Define net present value (NPV). How is it interpreted?
Present value: The value today of future cash flows
Net present value: The present value of total benefits (income or revenue) minus costs over many time periods
Generally, if the net present value of a project is positive, the investment is a good choice - unless an even better investment opportunity exists
Define internal rate of return (IRR)
How is it interpreted?
The rate at which a project’s inflows and outflows are equal (i.e. the rate of return of an investment in a project)
The higher the IRR, the better
Define payback period
How is it interpreted?
The length of time it takes for the organization to recover its investment in the project before it starts accumulating profit
Payback period is likely to be one of only several financial factors used in selecting a project; in some cases, the best choice might be a project that has a longer payback period
Define cost-benefit analysis
What is the result of this analysis?
How is it interpreted?
Comparing the expected costs of a project to the potential benefits it could bring the organization
The benefit-cost ratio (BCR)
The higher the BCR, the better
What concept is concerned with whether the project returns to the company more value than the initiative costs?
Economic value added (EVA)
Define opportunity cost
Define sunk costs
Opportunity cost: The opportunity given up by selecting one project over another (i.e. the value of the project not selected)
Sunk costs: Expended costs
Sunk costs should not be considered when deciding whether to continue with a troubled project
Define the law of diminishing returns.
Define working capital
Law of diminishing returns: After a certain point, adding more input will not result in a proportional increase in productivity
Working capital: An organization’s current assets minus its current liabilities (e.g. the amount of money the company has available to invest, including investing in projects)
What are the two types of depreciation?
Straight-line depreciation: Depreciate the same amount each time period
Accelerated depreciation: Depreciates faster than straight-line depreciation
What is a business case?
The justification for a project or initiative
Explains why the project was selected, how it fits into the organization’s strategic goals, and how it will bring business value to the organization
What is the purpose of a benefits management plan?
To capture the organization’s desired benefits from a project, whether economic or intangible, and how those benefits will be maximized and sustained
What are constraints?
What are assumptions?
Constraints: Factors that limit the team’s options, such as limits on resources, budget, schedule, and scope
Assumptions: Thangs that are assumed to be true but that may not be true
What is included in a project charter?
Project title and description Project manager assigned and authority level Business case Preassigned resources Key stakeholder list Stakeholder requirements as known High-level product description and key deliverables High-level assumptions High-level constraints Links the project to the ongoing work of the organization Project approval requirements Overall project risks Project exit criteria
What is included in the assumption log?
An assumption log contains a list of all assumptions and constraints that relate to the project
What is included in a project management plan?
Project life cycle Project management processes that will be used on the project Development approach Management reviews Knowledge area management plan Scope, schedule, and cost baselines Requirements management plan Change management plan Change control system Configuration management plan Configuration management system
