Chapter 2:

IS Project Integration Management & Planning

Haramaya, Ethiopia
July 7, 2023
 Contents

 Project Integration Management

 Project Planning
 Project Scope Management
 Project & Research Project
According to Frascati manual
Three basic forms of research projects -
•Research projects are undertaken in order to acquire new
knowledge.
•And research project is something where we only know the
problem and over a period of time we will apply new methods to
generate solutions
•But research project cannot guarantee that solution will be found in
the given time frame
•While projects in the classical sense, are aimed at concrete results
(products, services), which can be sold in the market.
•Project is where we know the path to achieve the goal.
•Project has guarantee and can be completed within the time frame.
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 Project Integration Management
Project integration management includes the processes
and activities to-
identify,
define,
combine,
unify, and
coordinate the various processes and project
management activities within the project management
process groups.
 The Processes of Project Integration
Management :
• Start (Begin)…………to…………End (Close)
• Develop project charter,
• Develop the preliminary project scope statement
• Develop project management plan,
• Direct and manage project work,
• Monitor and control project work,
• Perform integrated change control,
• Close project or phase.

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 Project Integration Management
Processes?
1. Develop the project charter: Work with stakeholders to
create the document that formally authorizes a project —the
charter.
2. Develop the preliminary project scope statement: Work
with stakeholders, especially users of the project’s products,
services, or results, to develop the high-level scope
requirements and create a preliminary project scope
statement.
3. Develop the project management plan: Coordinate all
planning efforts to create a consistent, coherent document—
the project management plan.

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 Continued…

• The project management plan is the plan that describes

how the project shall be accomplished.
• Created by the project manager in the beginning of
the project during the project initiating phase
• Developed further during the project planning
phase. Later changes and updates are possible
according to the applicable procedures.

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 Continued
• The project management plan includes-
• Project charter document,
• The project definition,
• The project objectives,
• The budget,
• The project schedule,
• The resources needed to accomplish the project,
• The management approach,
• Further management plans, and the initial risk
assessment.
 Continued…
4. Direct and manage project execution: Give direction
for Carry out the project management plans by
doing/performing the activities included in it.
5. Monitor and control the project work: Oversee
project work to meet the performance objectives of
the project.
6. Perform integrated change control: Coordinate
changes that affect the project’s deliverables and
organizational process assets.
7. Close the project: Finalize all project activities to
formally close the project.
Continued…
 Project Scope Management

• Scope management is a challenging part of managing

development projects. Sometimes, especially in IT
projects, the project scope is vague.
When the project is about to be funded,
there should be a set of defined
deliveries and objectives for the project.

There can be a high level-scope

statement prepared at this level.

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 Continued…
• The main purpose of the scope definition is to clearly
describe the boundaries of your project. Clearly
describing the boundaries is not enough when it comes
to project. You need to get the client's agreement as
well.
• Therefore, the defined scope of the project usually
included into the contractual agreements between the
client and the service provider.
• In addition to this, the scope of the project gives an
idea to the services provider about the estimated cost
of the project.
 Scope Creep?
• Scope creep is something common with every project.
This refers to the incremental expansion of the project
scope. Most of the time, the client may come back to
the service provider during the project execution
(during development process) and add more
requirements.
• Most of such requirements haven't been in the initial
requirements. As a result, change requests need to be
raised in order to cover the increasing costs of the
service provider.
• Scope creep refers to the increase of a project requirement
as it progresses.
 Continued…

Technological scope creep

• Due to business scope creep, there can be
technological scope creep as well. The project team
may require new technologies in order to address
some of the new requirements in the scope.
• In such instances, the service provider may want to
work with the client closely and make necessary
logistic and financial arrangements.
 Continued…
• Assignment2 (3%)
• What causes scope creep?
• List and discuss IT related projects scope creep
example.
• How to manage scope creep?

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 What is Strategic Planning & Project
Selection
• 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:
Strengths, Weaknesses, Opportunities, and Threats
• As part of strategic planning, organizations should:
• Identify potential projects.
• Use realistic methods to select which projects to work on.
• Formalize project initiation by issuing a project charter.
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 Methods for Selecting Projects

• There is usually not enough time or resources

to implement all projects.
• Methods for selecting projects include:
• Focusing on broad organizational needs.
• Categorizing IT projects.
• Performing net present value (NPV) or other
financial analyses.
• Using a weighted scoring model.
• Implementing a balanced scorecard.
 Focusing on Broad Organizational Needs
Which Project First?
•It is often difficult to provide strong justification for
many IT projects, but everyone agrees they have a
high value.
•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.
 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
 Contd…
• Net present value (NPV) 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.
• Return on investment (ROI)- 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 the project
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Calculating NPV
Calculating NPV
 Contd…

• Payback analysis- The payback period is the amount of

time it will take to recover, in the form of net cash inflows,
the total dollars invested in a project.

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

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Project Screening Matrix

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 Project Charters

• 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.
• The project charter is a document issued by the project
sponsor.
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Contd…
 Scope Statements (Preliminary)

• A scope statement is a document used to develop

and confirm a common understanding of the
project scope.

• It is an important tool for preventing scope creep:

• The tendency for project scope to keep getting bigger.

• A good practice is to develop a preliminary or

initial scope statement during project initiation and
a more detailed scope statement as the project
progresses.
Continued..
 Work Breakdown Structure
• Formal Definition per the PMBOK® Guide:
• Dividing complex projects to simpler and
manageable tasks is the process identified as
Work Breakdown Structure (WBS).
• In WBS, much larger tasks are broken down to
manageable chunks of work. These chunks can be
easily supervised and estimated.
 Continued…

• Following are a few reasons for creating a WBS in a

project:
 Accurate and readable project organization.
 Accurate assignment of responsibilities to the project

team.
 Indicates the project milestones and control points.
 Helps to estimate the cost, time and risk.
 Illustrate the project scope, so the stakeholders can

have a better understanding of the same.

 Construction of a WBS
• Identifying the main deliverables of a project is the
starting point for deriving a work breakdown
structure.
• This important step is usually done by the project
managers and the subject matter experts (SMEs)
involved in the project.
• Once this step is completed, the subject matter
experts start breaking down the high-level tasks
into smaller chunks of work.
• In the process of breaking down the tasks, one can
break them down into different levels of detail.
 Contd…
• Therefore, there is no hard and fast rule on how you
should breakdown a task in WBS.

• 8/80 is a rule used when creating a WBS. This rule

implies that no task should be smaller than 8 hours of
work and should not be larger than 80 hours of work. (
Several rules but not important).
• Following example is an outlined WBS:
Contd…
 Contd…

• There are many design goals for WBS. Some

important goals are as follows:

• Giving visibility to important work efforts.

• Giving visibility to risky work efforts.
• Illustrate the correlation between the activities and
deliverables for each.
• Show clear ownership by task leaders.
 Project Management Plan
• The Project Management Plan (PMP) is a formal,
approved document used to manage project execution.

• The PMP documents the actions necessary to define,

prepare, integrate and coordinate the
various planning activities.

• The PMP defines how the project is executed,

monitored and controlled.
 Attributes of Project Plans
• Just as projects are unique, so are project plans.
• Plans should be:
• Dynamic
• Flexible
• Updated as changes occur
• Plans should first and foremost guide project
execution by helping the project manager lead the
project team and assess project status.
 Common Elements of a Project
Management Plan
1. Introduction or overview of the project.

2. Project Structure: Description of how the

project is organized.

3. Processes: Management and technical

processes used on the project.

4. Work to be done, schedule, and budget

information.
 Directing and Managing Project Work
• Project execution involves managing and performing
the work described in the project management plan. [
E.g. In IT case Design & Development of IT Project]

• 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 project execution.
 Coordinating Planning & Execution
• Project planning and execution are intertwined
and inseparable activities.

• Those who will do the work should help to plan

the work.

• Project managers must solicit input from the

team to develop realistic plans.[ plan on ground
reality]
Project Execution Tools and Techniques
 Monitoring and Controlling
Project Work
• Monitoring project work includes collecting,
measuring, and disseminating performance
information.
• Two important outputs of monitoring and controlling
project work include recommended corrective and
preventive actions.
Performing Integrated Change Control
Change Control on IT Projects
Change Control System
Change Control Board(CCB)
 Closing Projects
 To close a project, you must finalize all activities
and transfer the completed or cancelled work to the
appropriate people.
 Main outputs include:
◦ Administrative closure procedures.
◦ Contract closure procedures.
◦ Final products, services, or results.
◦ Organizational process asset updates.
Summary of Project Integration
Management