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Project Integration Management
Introduction
Project Integration Management includes the processes required to ensure
that the various elements of the project are properly coordinated. It involves
making trade-offs among competing objectives and alternatives in order to
meet or exceed stake-holder needs and expectations. Project integration
ensures that all the elements of a project come together at the right times to
complete a project successfully.
Integration management is a collection of processes required to ensure that
the various elements of the projects are properly coordinated. It involves
making trade-offs among competing objectives and alternatives to meet or
exceed stakeholder needs and expectations
(https://en.wikibooks.org/wiki/Project_Management/PMBOK/Integration_
Management).
According to PMBOK Guide, fifth edition, there are six phases that are
involved in project integration management. This includes: Developing the
project charter, Developing the project management plan, Directing and
managing project work, monitoring and controlling project work, performing
integrated change control and closing the project.
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Project Integration Management
3. Directing and managing project work involves carrying out the project
management plan by performing the activities included in it. The outputs
of this process are deliverables, work performance information, change
requests, project management plan updates, and project documents
updates.
Activities include:
Perform activities to accomplish project requirements
Create project deliveries
Staff, train and manage the project management team
Obtain, manage and use resources
Establish and maintain project channels
Generate project data to facilitate project forecasting
Issue change request and adapt these changes into the project
Manage risk
Manage sellers and suppliers
Collect and document lesson learned
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Figure 4. Directing and managing project work input and output.
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Strategic Planning
Successful leaders look at the big picture or strategic plan of the organization
to determine what types of projects will provide the most value. Knowing
these details will help organization in delivery quality projects.
What is strategic planning, strategic planning involves determining long-
term objectives, predicting future trends and projecting the need for new
products and services.
Strategic planning is a management task concerned with the growth and
future of the business enterprise.
Strategic Planning helps to:
Map out where the company will go.
Create a framework for corporate decision-making.
Define objectives as well as methodologies for achieving them.
Ensure that opportunities are chosen widely.
Ensure best utilization of resources.
Build competitive advantages and core competencies.
Corporate Strategy
It means the overall scope and direction of a corporation and the way in
which its various business operations work together to achieve particular
goals.
A separate business unit strategy for each division will often be prepared and
used by larger companies that have considerably different objectives among
their various divisions.
Looks at the organization of the business, and how it contributes to the
achievement of the goals of the business.
SWOT Analysis
Most organization uses SWOT analysis for strategic planning, SWOT stands
for Strengths, Weaknesses, Opportunities and Threats.
Return of Investment
This is an equation that measures the efficiency of an investment. Return on
investment (ROI) is the result of subtracting the project costs from the
benefits and then dividing by the costs. For example, if you invest P100 today
and next year it is worth P110, your ROI is (P110 - 100)/100 or 0.10 (10
percent). Note that the ROI is always a percentage. It can be positive or
negative. It is best to consider discounted costs and benefits for multi-year
projects when calculating ROI.
(𝐺𝑎𝑖𝑛𝑠 − 𝐶𝑂𝑆𝑇)
𝑅𝑂𝐼 =
𝐶𝑂𝑆𝑇
(516,000 − 243,200)
𝑅𝑂𝐼 = = 112%
243,200
The higher the ROI, the better. And ROI of 112% is outstanding.
Example 1:
If you buy 20 shares of Joe's Pizza for $10 a share, your investment cost is
$200. If you sell those shares for $250, then your ROI is ($250-200)/$200 for
a total of 0.25 or 25%.
Example 2:
Gains = 535,000 and cost = 400,000. What is ROI?
MIT422 – Technology and Project Management
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Project Integration Management
Payback Analysis
Payback Analysis the amount of time it will take to recoup the total dollars
invested in a project, in terms of net cash inflows. In other words, payback
analysis determines how much time will elapse before accrued benefits
overtake accrued and continuing costs. Payback occurs when the net
cumulative benefits equal the net cumulative costs, or when the net
cumulative benefits minus costs equal zero.
Example 1:
If a company invests P300,000 in a new production line, and the production
line then produces cash flow of P100,000 per year, then the payback period
is 3.0 years (300,000 initial investment / 100,000 annual payback). An
investment with a shorter payback period is considered to be better, since
the investor's initial outlay is at risk for a shorter period of time.
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Advantage of using weighted scoring method
1. Address different factors, such as the IT systems functionality and the
cost of the IT systems.
2. Different types of scales can be used for the various factors.
3. Can be used by individuals or groups.
4. It is easy to calculate.
After assigning weights for the criteria and scores for each project, you
calculate a weighted score for each project by multiplying the weight for each
criterion by its score and adding the resulting values. Let us now compute the
value
25% * 90. +15% * 70 +15% * 50 + 10% * 25 + 5% + 20 * 20% + 50 +10% * 20
= 56
MIT422 – Technology and Project Management
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Project Integration Management
Example
A firm decided to buy an inventory management system. There are four
different suppliers to consider.
Step 1: Define the criteria / decision factor
The following could be considered in purchasing the inventory system.
1. Cost – price, maintenance fee, training cost.
2. Supplier – vendor reputation, vendor stability
3. Functionality – User interface, modifiability
4. User Services – training services, warranty
Step 2: Assign level of importance and weight to the criteria / decision factor
Factor Weight
COST 30%
SUPPLIER 10%
FUNCTIONALITY 40%
TOTAL 100%
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Evaluation scale for Evaluation scale for Evaluation scale for
supplier functionality user services
Step 4: Score each decision factor for each alternative, multiply the score by
its weight, and sum the weighted scores.
Advantages
1. Quantitative each perspective into measurable parameters.
2. To overcome the short-term behavior of the financial assessment.
3. It is Flexible, some methods (EX. Weighted Scoring Method) can be
applied to the BSC concept.
Disadvantages
1. Implementation of the balanced scorecard takes much time and effort.
2. Hard to get automation.
3. Should be updated frequently.
4. Actually, performance measures are difficult to be confirmed.
Balance Scorecard perspectives:
1. The Financial Perspective - Tracks your financial requirements and
performance.
Operation Growth and Mixed
Cost Declined, Productivity Increased
Assets Used and Investment Strategy
2. The Customer Perspective - Measures your customers' satisfaction and
their performance requirements — for your organization and what it
delivers, whether it's products or services.
Market Share Ratio
Acquirement of Customers
Continuation of Customers
Satisfaction of Customers
Profitability of Customers
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3. The Internal Process Perspective - Measures your critical-to-customer
process requirements and measures.
Innovation Process
Operation Process
Customer Service Process
4. The Learning & Growth Perspective - Focuses on how you educate your
employees, how you gain and capture your knowledge, and how you use
it to maintain a competitive edge within your markets.
The ability of Employee
The ability of Information systems
Incentive, Authority and Fitness
These four legs have to be measured, analyzed, and improved together —
continuously — in order for your business to thrive
Metrics
Within each of perspective, usually define the following:
Objectives - what the strategy is to achieve in each perspective.
Measures - how progress for that particular objective will be
measured.
Targets - the target value sought for each measure.
Initiatives - what will be done to facilitate the reaching of the target.
How to use BSC method?
Step 1: Confirm the mission - Confirm which perspective company
focuses on.
Step 2: Define Objectives - Objectives should be defined to support
each perspective.
Step 3: Construct the Strategy Map - Illustrates how the organization plan to
achieve its mission and vision.
Step 4: Initiatives - Initiations should be listed to understand how to reach
the goals.
Step 5: Apply Weighted Scoring Method to BSC - According to the four
perspectives, assign weights, scores of value and get the sum of weighted
scores.
Step 6: Make a decision - Compare, select and implement
Example
A manager in XX Company is making a purchasing decision, which project
should be accepted?
XX Company’s Mission:
To find, attract, and win new clients, nurture and retain those the company
already has.
Meet all the customer’s needs
XX Company Balanced Scorecard
MIT422 – Technology and Project Management
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Project Integration Management
Comments:
The software plan is good and well documented – Bill Gates.
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Developing a Project Management Plan
Project Management plan is a document used to coordinate all project
planning documents and help guide a project’s execution and control. Is the
process for "[...] documenting the actions necessary to define, prepare,
integrate, and coordinate all subsidiary plans into a project management
plan" (comp. PMBOK3, p. 78).
Project Management Plan Contents
The following are possible contents of a project management plan
Section Description
1. Project name – Every project must have a
Introduction / Overview
project name, its recommended that is unique.
Having a unique project name distinguish itself
from other projects.
2. Brief description of the project – This section
outlines the goals of the project and the reason
for developing it.
3. Sponsors Name: Every project must include
the name, title and contact information of the
project sponsor.
4. Name of project members – This section must
provide significant information of the team
members that will work in the project, contact
information must also be including for project
communication.
5. Project Deliverables – This section describes
the list of items / products that the project
should have. This may include software
packages, pieces of hardware, technical report
and training materials.
6. Reference Materials – This section list down
important documents related to the project,
minutes of the meeting, project scope, and
more. The documents will help stakeholders
and other members of the team to know the
history of the project.
7. Definition of terms and acronyms – This
section would list down all terminologies used
in the project to easy understanding.
1. Organizational chart – This describes the
Project Organizations
organizational chart of the company /
organization sponsoring the project, including
customers and external customer.
2. Project responsibility – This section describes
the roles and responsibilities involve in the
project.
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