Chapter 2

23/02/2017
CH2 compiled by [email protected]
Bale, Robe Ethiopia

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Learning Objectives
• Describe an overall framework for project integration management.
• Explain the strategic planning process and apply different project selection methods.
• Explain the importance of creating a project charter to formally initiate projects.
• Discuss the process of creating a preliminary project scope statement.
• Describe project management plan development, including content, using guidelines and
templates for developing plans, and performing a stakeholder analysis to help manage
relationships.
• Explain project execution, its relationship to project planning, monitoring and controlling
the factors related to successful results, and tools and techniques to assist in project
execution.
• Analyze the integrated change control process, planning for and managing changes on
information technology projects, and developing and using a change control system.
• Explain the importance of developing and following good procedures for closing
projects.

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2.1. What is Project Integration Management?
• Project integration management involves coordinating all of the
other project management knowledge areas throughout a project‘s life
cycle.
• It is regarded as the key to overall project success.
• Project integration management includes interface management,
which involves identifying and managing the points of interaction
between various elements of the project.

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2.1. What is Project Integration Management?...1
• The processes involved in project integration management are as follows:
• Develop the project charter: Work with stakeholders to create the document that
formally authorizes a project the charter.
• 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.
• Develop the project management plan: Coordinate all planning efforts to create a
consistent, coherent document the project management plan.
• 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.

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2.2. Project Plan Development
• A project management plan is a document used to coordinate all
project planning documents and help guide a project‘s execution and
control.
• Plans created in the other knowledge areas are subsidiary parts of the
overall project management plan.
• A project plan should be dynamic, flexible and updated as change
occurs.
• Plans should first and foremost guide project execution by helping the
project manager lead the project team and assess project status.

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2.2.1. Project Plan Contents
• Project plans vary greatly depending on the size and
nature of the projects. However, there are common
elements that most project plans include:
✓an introduction or overview of the project
✓a description of how the project is organized
✓the management and technical processes used on the
project
✓sections describing the work to be performed
✓schedule
✓budget.

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2.2.2. Using Guidelines to Create Project Plans
• It is a common practice that many organizations use guidelines to create
project plans. Most project management software such as Microsoft Project®
provide several project plan template files to be used as guidelines.
• Some government agencies have their own guidelines for creating project
plans. For instance, the
• Institute of Electrical and Electronics (IEEE) has its own standard (IEEE
Standard 1058.1) for Software Project Management Plan (SPMP).
• Activity 2.1

• IEEE Standard for Software Project Management Plans

• Read through the IEEE Standard for Software Project Management Plans (available from <http://www.
buckley-golder.com/papers/mbg_SPMP_ProjectManagement.pdf> or search an alternative link if this one
becomes invalid at the time of reading).
What are the five main sections specified in the standard?

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2.2.3. Stakeholder Analysis and Top Management support

• It is important to consider a stakeholder analysis in project planning as the

ultimate goal of project management is to meet or exceed stakeholders‘
expectations.
• A stakeholder analysis normally covers the following information:
✓ key stakeholders‘ names and organizations
✓ key stakeholders‘ roles on the project
✓ unique facts about each stakeholder
✓ each stakeholder‘s level of interest in the project
✓ key stakeholders‘ influence on the project
✓ suggestions for managing relationships with each stakeholder.
• The main purpose of a stakeholder analysis is to help project managers
understand and meet stakeholder needs and expectations.
• It will also help the project manager lead the execution of the project plan.
• It should be noted that a stakeholder analysis often includes sensitive information.

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2.3. Project Plan Execution
• Project plan execution involves managing and performing the work
described in the project plans.
• The majority of the project‘s time as well as the budget is spent on
execution, as the products of the project are produced during project
execution.
• Project planning and execution are viewed as intertwined and
inseparable activities in project integration management.
• Strong leadership and a supportive organizational culture are two
important factors for the success of project execution.
• There are some tools and techniques that facilitate project plan execution:
• Work Authorization System: a method for ensuring proper communications so that
qualified people do the work at the right time and in the proper sequence.
• Status Review Meetings: regularly scheduled meetings used to exchange project
information.
• Project Management Software: can greatly assist in creating and executing the project
plan.

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2.4. Strategic Planning and Project Selection
• Strategic planning involves determining long-term objectives by analyzing the strengths
and weaknesses of an organization, studying opportunities and threats in the business
environment, predicting future trends, and projecting the need for new products and
services.
• Strategic planning provides important information to help organizations identify and
then select potential projects.
• SWOT analysis “ analyzing Strengths, Weaknesses, Opportunities, and Threats”
which is one tool used in strategic planning.
• For example, a group of four people who want to start a new business in the film
industry could perform a SWOT analysis to help identify potential projects. They
might determine the following based on a SWOT analysis:
• Strengths:
• As experienced professionals, we have numerous contacts in the film industry.
• Two of us have strong sales and interpersonal skills.
• Two of us have strong technical skills and are familiar with several filmmaking software tools.
• We all have impressive samples of completed projects.

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2.4. Strategic Planning and Project Selection…1
• For example, a group of four people who want to start a new business in the film
industry could perform a SWOT analysis to help identify potential projects. They
might determine the following based on a SWOT analysis: …
• Weaknesses:
• None of us have accounting or financial experience.
• We have no clear marketing strategy for products and services.
• We have little money to invest in new projects.
• We have no company website and limited use of technology to run the business.
• Opportunities:
• A potential client has mentioned a large project she would like us to bid on.
• The film industry continues to grow.
• There are two major conferences this year where we could promote our company.
• Threats:
• Other individuals or companies can provide the services we can.
• Customers might prefer working with more established individuals and organizations.
• There is high risk in the film business.

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2.5. Scope Management
2.5.1. What is Project scope Management?
• Many of the factors associated with project success, such as user involvement,
clear business objectives, and optimized scope, are elements of project scope
management.
• A critically important and difficult aspect of project management is defining
the scope of a project.
• Scope refers to all the work involved in creating the products of the project
and the processes used to create them.
• A deliverable is a product created as part of a project. Deliverables can be
product related, such as a piece of hardware or software, or process related,
such as a planning document or meeting minutes. Project stakeholders must
agree what the products of the project are and, to some extent, how they
should be produced to define all of the deliverables.

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2.5. Scope Management…1
2.5.1. What is Project scope Management?
• Project scope management includes the processes involved in defining and controlling what work is or is not
included in a project. It ensures that the project team and stakeholders have the same understanding of what products
the project will produce and what processes the project team will use to produce them. Six main processes are involved
in project scope management:
1. Planning scope management involves determining how the project’s scope and requirements will be managed.
2. Collecting requirements involves defining and documenting the features and functions of the products as well as
the processes used for creating them.
3. Defining scope involves reviewing the scope management plan, project charter, requirements documents, and
organizational process assets to create a scope statement, adding more information as requirements are developed
and change requests are approved.
4. Creating the WBS involves subdividing the major project deliverables into smaller, more manageable components.
5. Validating scope involves formalizing acceptance of the project deliverables. Key project stakeholders, such as the
customer and sponsor for the project, inspect and then formally accept the deliverables during this process. If the
deliverables are not acceptable, the customer or sponsor usually requests changes.
6. Controlling scope involves controlling changes to project scope throughout the life of the project—a challenge on
many IT projects. Scope changes often influence the team’s ability to meet project time and cost goals, so project
managers must carefully weigh the costs and benefits of scope changes.

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2.5. Scope Management…2
2.5.1. What is Project scope Management?
• Figure 2-1 summarizes the inputs, tools and techniques, and outputs of project scope management.

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2.5.2. Methods for Selecting Projects
• There is usually not enough time or resources to implement all projects. Thus,
projects need to be selected based on the following methods:
➢ Focusing on broad organizational needs.
➢ Categorizing information technology projects.
➢ Performing net present value or other financial analyses.
➢ Using a weighted scoring model.
➢ Implementing a balanced scorecard.

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2.5.3. Project Charter
• Project Charter refers to a statement of objectives in a
project.
• This statement also sets out detailed project goals, roles and
responsibilities, identifies the main stakeholders, and the level
of authority of a project manager.
• It acts as a guideline for future projects as well as an important
material in the organization's knowledge management system.
• The project charter is a short document that would consist
of new offering request or a request for proposal.
• This document is a part of the project management process,
which is required by Initiative for Policy Dialogue (IPD) and
Customer Relationship Management (CRM).

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2.5.3. Project Charter…1
• The Role of Project Charter
• Following are the roles of a Project Charter:
It documents the reasons for undertaking the project.
Outlines the objectives and the constraints faced by the project.
Provides solutions to the problem in hand.
Identifies the main stakeholders of the project.

• The Benefits of project charter

• Following are the prominent benefits of Project Charter for a project:
It improves and paves way for good customer relationships.
Project Charter also works as a tool that improves project management processes.
Regional and headquarter communications can also be improved to a greater extent.
By having a project charter, project sponsorship can also be gained.
Project Charter recognizes senior management roles.
Allows progression, which is aimed at attaining industry best practices.

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2.5.3. Project Charter…2
• Elements of Project charter
• For an effective charter project, it needs to address these key elements:
Identity of the project.
Time: the start date and the deadline for the project.
People involved in the project.
Outlined objectives and set targets.
The reason for a project charter to be carried out, often referred to as 'business case'.
Detailed description of a problem or an opportunity.
The return expected from the project.
Results that could be expected in terms of performance.
The expected date that the objectives is to be achieved.
Clearly defined roles and responsibilities of the participants involved.
Requirement of resources that will be needed for the objectives to be achieved.
Barriers and the risks involved with the project.
Informed and effective communication plan.

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2.5.4. Scope Statements
• 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, i.e. 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. Contents of a Preliminary Scope Statement are:
➢ Project objectives
➢ Product or service requirements and characteristics
➢ Project boundaries
➢ Deliverables
➢ Product acceptance criteria
➢ Project assumptions and constraints
➢ Organizational structure for the project
➢ Initial list of defined risks
➢ Summary of schedule milestones
➢ Rough order of magnitude cost estimate
➢ Configuration management requirements
➢ Description of approval requirements

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2.5.5. Work Breakdown Structure
• Dividing complex projects to simpler and manageable tasks is the
process identified as Work Breakdown Structure (WBS).
• Usually, the project managers use this method for simplifying the
project execution.
• 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.

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2.5.5. Work Breakdown Structure…1
• One can use many forms to display their WBS. Some use tree structure to illustrate the WBS, while others
use lists and tables. Outlining is one of the easiest ways of representing a WBS.
• Following example is an outlined WBS:

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2.5.5. Work Breakdown Structure…2
• 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.
• Show clear ownership by task leaders.
Work Breakdown Structure Diagram
• In a WBS diagram, the project scope is graphically expressed.
• Usually the diagram starts with a graphic object or a box at the top, which
represents the entire project. Then, there are sub-components under the box.
• These boxes represent the deliverables of the project.
• Under each deliverable, there are sub-elements listed. These sub-elements
are the activities that should be performed in order to achieve the
deliverables.
• Although most of the WBS diagrams are designed based on the deliveries,
some WBS are created based on the project phases. Usually, information
technology projects are perfectly fit into WBS model.

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2.5.5. Work Breakdown Structure…3
• WBS is the input for Gantt charts, a tool that is used for project management
purpose. Gantt chart is used for tracking the progression of the tasks derived by
WBS.

Figure 2 - 3. A sample WBS diagram

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2.6. Stepwise Project Planning
• The IT project manager establishes a team that provides guidance in formalizing
project planning. In Figure 2-7, only 8% of the total resources are allocated for
the study and planning phase. One of the guidance criteria is to establish system
infrastructure and architecture and a reuse plan and standard at early stages. Most
of the hardware components are industry standard and reusable.

• The manager must identify the domain and evaluate and procure a limited amount
of hardware, software, and computer-aided software engineering (CASE) tools
necessary to support the software reuse activities. The manager must establish a
system reuse dialog among the practitioners and continue to educate them in
system reuse that changes the mindset from stovepipe development to domain
development. The project manager allocates separate resources for these phases.

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2.6. Stepwise Project Planning…1
• Figure 2 - 4. Major phases of an IT project

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2.7. Main Steps in Project Planning
• Planning for an IT project covers coordination of management
activities, phases, scheduling, timetables, and staffing.
• It includes the delegation of duties and responsibilities, exploration of modern
technology, and system efforts in an organization.

• The plan focuses on integration of system hardware and software engineering

and reengineering goals and principles throughout an organization.

• The plan also includes adoption of a reuse approach to a system's development

and maintenance throughout the life cycle.

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2.7. Main Steps in Project Planning…1
• The process of using critical path method in project planning phase has six steps.
Step 1: Activity specification

• You can use the Work Breakdown Structure (WBS) to identify the activities involved in the project. This is
the main input for the critical path method.
Step 2: Activity sequence establishment

• In this step, the correct activity sequence is established. For that, you need to ask three questions for each
task of your list.
Which tasks should take place before this task happens.
Which tasks should be completed at the same time as this task.
Which tasks should happen immediately after this task.

• Step 3: Network diagram

• Once the activity sequence is correctly identified, the network diagram can be drawn. Although the early
diagrams were drawn on paper, there are a number of computer software, such as Primavera, for this
purpose nowadays.

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2.7. Main Steps in Project Planning…2
Step 4: Estimates for each activity

• This could be a direct input from the WBS based estimation sheet. Most of the companies use 3-point estimation
method or COCOMO (Constructive COst MOdel), which was first introduced in 1981 by Barry Boehm in his book
Software Engineering Economics, based (function points based) estimation methods for tasks estimation.

Step 5: Identification of the critical path

• For this, you need to determine four parameters of each activity of the network.
Earliest start time (ES) - The earliest time an activity can start once the previous dependent activities are over.
Earliest finish time (EF) - ES + activity duration.
Latest finish time (LF) - The latest time an activity can finish without delaying the project.
Latest start time (LS) - LF - activity duration.
The float time for an activity is the time between the earliest (ES) and the latest (LS) start time or between the
earliest (EF) and latest (LF) finish times. During the float time, an activity can be delayed without delaying the
project finish date.
The critical path is the longest path of the network diagram. The activities in the critical path have an effect on the
deadline of the project. If an activity of this path is delayed, the project will be delayed. In case if the project
management needs to accelerate the project, the times for critical path activities should be reduced..

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2.7. Main Steps in Project Planning…3
Step 6: Critical path diagram to show project progresses

• Critical path diagram is a live artefact. Therefore, this

diagram should be updated with actual values once the task is
completed. This gives more realistic figure for the deadline
and the project management can know whether they are on
track regarding the deliverables.

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