Card Set Information
Project manager's job in integration management
integrating all of the process of project management
what is included in the project charter?
1. project description
2. project manager assigned and authority level
3. business case
4. resources preassigned
6. stakholders requirements as known
7. product description/deliverables
8. measureable project objectives
9. projecgt approval requirements
10. high-level project risks
11. project sponsor authorization
what does the project charter do for the project manager?
1. formally recognizes the PM and her/his authority to start the project, commit funds and corporate resources
2. formally recognizes the proejct
3. provides high-level requirements
4. links the project to ongoing organizational work
what would be the difference about managing a large project versus a smal project?
1. larger stakeholder group
2. more diverse team composition
3. increase communication channels and complexities
4. possibly contend with multiple languages, nations, cultures, and laws
5. more formal change management process
6. tons of activities
7. with more activities it is difficult to get accurate cost estimates and schedules
8. more complex network diagram
9. more robust tracking and reporting techniques
10. multiple contracts
11. more risk
developing a project charter requires
1. identifying stakeholders
2. meeting with stakeholders to confirm high-level project requirements, issues, risks, and project scope
3. defining product scope
4. defining project objectives and success criteria
5. documenting risks
what do you need to create a project charter?
1. business case
2. project selection criteria
project selection --> benefit measurement methods (aka Comparative Approach)
1. murder board (people who try to shoot down the idea)
2. peer review
3. scoring models
4. economic models
project selection --> Constrained optimization methods (aka Mathematical approach)
1. present value
2. net present value
3. internal rate of return
4. payback period
5. benefit-cost ratio
the value today of future cash flows
net present value (NPV)
total benefits (income or revenue) minus the costs over many time periods.
useful to compare projects
if a positive investment it is good
interal rate of return (IRR)
how much money will you get (interest) over time?
number of time periods it will take to break even/recover your investment
benefit cost ratio
compares costing projects and to determine what work should be done.
benefits are the same as revenues/payback
greater than 1 means that benefits are greater than costs
economic value added (EVA)
in terms of project selection, this concept is concerned with whether the project returns to teh company more value than its costs.