Chapter 4: Project Integration Management

TRUE/FALSE

	1.	Directing and managing project execution involves carrying out the project management plan by performing the activities included in it.

ANS:	T	PTS:	1	REF:	130

	2.	Many people consider project integration management the key to overall project success.

ANS:	T	PTS:	1	REF:	131

	3.	Project integration management does not include interface management.

ANS:	F	PTS:	1	REF:	131

	4.	The number of interfaces can increase exponentially as the number of people involved in a project increases.

ANS:	T	PTS:	1	REF:	132

	5.	Project integration management must occur just within the context of a particular project.

ANS:	F	PTS:	1	REF:	132

	6.	Project managers should never be involved in strategic planning and project selection.

ANS:	F	PTS:	1	REF:	133

	7.	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.

ANS:	T	PTS:	1	REF:	133-134

	8.	An organization’s information technology project selection process should guide the strategic plan.

ANS:	F	PTS:	1	REF:	136

	9.	Information systems can help an organization support a strategy of being a low-cost producer.

ANS:	T	PTS:	1	REF:	137

	10.	Selecting projects is considered an exact science.

ANS:	F	PTS:	1	REF:	138

	11.	As projects progress, the organization must reevaluate the need, funding, and will for each project to determine if the project should be continued, redefined, or terminated.

ANS:	T	PTS:	1	REF:	138

	12.	Opportunities and directives are essentially the same thing.

ANS:	F	PTS:	1	REF:	139

	13.	Many problems and directives must be resolved quickly.

ANS:	T	PTS:	1	REF:	139

	14.	The organization should complete low-priority projects before high-priority ones, if the low-priority ones take less time.

ANS:	F	PTS:	1	REF:	139

	15.	You can use the NPV function in Microsoft Access to calculate the NPV quickly.

ANS:	F	PTS:	1	REF:	140

	16.	Net present value and cash flow mean the same thing.

ANS:	F	PTS:	1	REF:	140

	17.	An annual discount factor is a multiplier for each year based on the discount rate and year.

ANS:	T	PTS:	1	REF:	142

	18.	The ROI is always positive.

ANS:	F	PTS:	1	REF:	142

	19.	Payback period is the amount of time it will take to recoup, in the form of net cash inflows, the total dollars invested in a project.

ANS:	T	PTS:	1	REF:	143

	20.	The first step in creating a weighted scoring model is to assign a weight to each criterion.

ANS:	F	PTS:	1	REF:	144

	21.	A project charter typically does not authorize the project manager to use organizational resources to complete the project.

ANS:	F	PTS:	1	REF:	147

	22.	Some people might use a contract in place of a charter.

ANS:	T	PTS:	1	REF:	148

	23.	Many projects fail because of unclear requirements and expectations, so starting with a project charter makes a lot of sense.

ANS:	T	PTS:	1	REF:	149

	24.	Project management plans document project planning assumptions and decisions regarding choices.

ANS:	T	PTS:	1	REF:	151

	25.	The introduction or overview of a project must only include a list of definitions and acronyms.

ANS:	F	PTS:	1	REF:	151-152

	26.	A stakeholder analysis should be part of the overall project plan.

ANS:	F	PTS:	1	REF:	151-154

	27.	The key deliverables section of the project management plan should describe the quality expectations for the product deliverables.

ANS:	T	PTS:	1	REF:	153

	28.	A commonsense approach to improving the coordination between project plan development and execution is to follow this simple rule: Those who will do the work should not plan the work.

ANS:	F	PTS:	1	REF:	156

	29.	Many organizations have found that large information technology projects require experienced general managers who understand the business and application area of the technology, not the technology itself.

ANS:	T	PTS:	1	REF:	158

	30.	All projects can benefit from using some type of project management information system to coordinate and communicate project information.

ANS:	T	PTS:	1	REF:	165

MULTIPLE CHOICE

	1.	There are ____ main processes involved in project integration management.
a.	three	c.	ten	
b.	six	d.	fifteen	

ANS:	B	PTS:	1	REF:	130

	2.	____ involves working with stakeholders to create the document that formally authorizes a project.
a.	Developing the project charter	
b.	Developing the preliminary project scope statement	
c.	Developing the project management plan	
d.	Directing and managing project execution	

ANS:	A	PTS:	1	REF:	130

	3.	____ involves coordinating all planning efforts to create a consistent, coherent document.
a.	Developing the project charter	
b.	Developing the preliminary project scope statement	
c.	Developing the project management plan	
d.	Directing and managing project execution	

ANS:	C	PTS:	1	REF:	130

	4.	The outputs of ____ include change request status updates, project management plan updates, and project document updates.
a.	monitoring and controlling the project work	
b.	closing the project	
c.	developing the project management plan	
d.	performing integrated change control	

ANS:	D	PTS:	1	REF:	131

	5.	Many people are familiar with SWOT analysis—analyzing Strengths, Weaknesses, Opportunities, and Threats—which is used to aid in ____.
a.	project initiation	c.	strategic planning	
b.	project planning	d.	strategic initiation	

ANS:	C	PTS:	1	REF:	134

	6.	The ____ step in the planning process is to tie the information technology strategic plan to the organization’s overall strategic plan.
a.	first	c.	third	
b.	second	d.	fourth	

ANS:	A	PTS:	1	REF:	135

	7.	In the ____ information technology planning stage, the analysis outlines business processes that are central to achieving strategic goals and helps determine which ones could most benefit from information technology.
a.	Project Planning	
b.	Business Area Analysis	
c.	Resource Allocation	
d.	Information Technology Strategy Planning	

ANS:	B	PTS:	1	REF:	135-136

	8.	In the ____ stage, organizations tie information technology strategy to mission and vision of organization and identify key business areas.
a.	Project Planning	
b.	Business Area Analysis	
c.	Resource Allocation	
d.	Information Technology Strategy Planning	

ANS:	D	PTS:	1	REF:	136

	9.	In the ____ stage of selecting information technology projects, organizations define project scope, benefits, and constraints.
a.	Project Planning	
b.	Business Area Analysis	
c.	Resource Allocation	
d.	Information Technology Strategy Planning	

ANS:	A	PTS:	1	REF:	136

	10.	In the ____ stage of selecting information technology projects, organizations select information technology projects.
a.	Project Planning	
b.	Business Area Analysis	
c.	Resource Allocation	
d.	Information Technology Strategy Planning	

ANS:	C	PTS:	1	REF:	136

	11.	Research shows that ____ is the number one reason cited for why organizations invest in information technology projects.
a.	providing financial incentives	
b.	supporting implicit business objectives	
c.	supporting explicit business objectives	
d.	keeping abreast of technological advances	

ANS:	C	PTS:	1	REF:	136

	12.	Author ____, who developed the concept of the strategic value of competitive advantage, has written several books and articles on strategic planning and competition.
a.	James Bacon	c.	Robert Cooper	
b.	Michael Porter	d.	Carol Matlack	

ANS:	B	PTS:	1	REF:	136-137

	13.	Projects that address ____ are much more likely to be successful because they will be important to the organization.
a.	a balanced scorecard	c.	broad organizational needs	
b.	a weighted scoring model	d.	net present value	

ANS:	C	PTS:	1	REF:	138

	14.	One method for selecting projects based on ____ is to determine whether they first meet three important criteria: need, funding, and will.
a.	broad organizational needs	
b.	using a weighted scoring model	
c.	implementing a balanced scorecard	
d.	categorizing information technology projects	

ANS:	A	PTS:	1	REF:	138

	15.	____ are new requirements imposed by management, government, or some external influence.
a.	Opportunities	c.	Problems	
b.	Commands	d.	Directives	

ANS:	D	PTS:	1	REF:	139

	16.	____ 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.
a.	Cost of capital	c.	Cash flow	
b.	Net present value	d.	Payback	

ANS:	B	PTS:	1	REF:	139-140

	17.	The first step in determining the NPV is to ____.
a.	determine the estimated costs and benefits for the life of the project and the products it produces	
b.	determine the discount rate	
c.	calculate the net present value	
d.	determine the cash flow	

ANS:	A	PTS:	1	REF:	141

	18.	In the mathematical formula for determining the NPV, the variable n is ____.
a.	the year of the cash flow	c.	the amount of cash flow each year	
b.	the last year of the cash flow	d.	the discount rate	

ANS:	B	PTS:	1	REF:	142

	19.	The ____ is the minimum acceptable rate of return on an investment.
a.	return on investment	c.	external rate of return	
b.	internal rate of return	d.	required rate of return	

ANS:	D	PTS:	1	REF:	142-143

	20.	You can determine a project’s ____ by finding what discount rate results in an NPV of zero for the project.
a.	internal rate of return (IRR)	c.	payback period	
b.	required rate of return	d.	return on investment (ROI)	

ANS:	A	PTS:	1	REF:	143

	21.	In a weighted scoring model, the sum of all of the criteria’s weights must total ____ percent.
a.	0	c.	100	
b.	50	d.	150	

ANS:	C	PTS:	1	REF:	145

	22.	A(n) ____ is a methodology that converts an organization’s value drivers, such as customer service, innovation, operational efficiency, and financial performance, to a series of defined metrics.
a.	payback analysis	c.	weighted scoring model	
b.	balanced scorecard	d.	net present value analysis	

ANS:	B	PTS:	1	REF:	146

	23.	 A(n) ____ is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management.
a.	balanced scorecard	c.	net present value analysis	
b.	business case	d.	project charter	

ANS:	D	PTS:	1	REF:	147

	24.	A(n) ____ is a document that describes the products or services to be created by the project team.
a.	contract	c.	project charter	
b.	statement of work	d.	business case	

ANS:	B	PTS:	1	REF:	148

	25.	____ support contributes the most to successful information technology projects.
a.	Stakeholder	c.	Executive	
b.	Team	d.	User	

ANS:	C	PTS:	1	REF:	149

	26.	A(n) ____ is a document used to coordinate all project planning documents and help guide a project’s execution and control.
a.	project management plan	c.	scope statement	
b.	statement of work	d.	contact	

ANS:	A	PTS:	1	REF:	151

	27.	The ____ section of the project plan should describe the major project functions and activities and identify those individuals who are responsible for them.
a.	organizational charts	
b.	other organizational or process-related information	
c.	project responsibilities	
d.	management objectives	

ANS:	C	PTS:	1	REF:	152

	28.	The ____ section of the project management plan describes how to monitor project progress and handle changes.
a.	management objectives	c.	risk management	
b.	project controls	d.	technical processes	

ANS:	B	PTS:	1	REF:	153

	29.	The ____ section of the project management plan describes specific methodologies a project might use and explains how to document information.
a.	management objectives	c.	risk management	
b.	project controls	d.	technical processes	

ANS:	D	PTS:	1	REF:	153

	30.	The project schedule information section of the project management plan might include ____.
a.	a detailed budget	c.	a detailed schedule	
b.	key deliverables	d.	project staffing	

ANS:	C	PTS:	1	REF:	153-154

	31.	The majority of time on a project is usually spent on ____, as is most of the project’s budget.
a.	execution	c.	closing	
b.	planning	d.	monitoring and controlling	

ANS:	A	PTS:	1	REF:	156

	32.	Most systems analysts begin their careers as ____.
a.	database administrators	c.	project managers	
b.	CEOs	d.	programmers	

ANS:	D	PTS:	1	REF:	156

	33.	On large projects, many project managers say that ____ percent of the job is communicating and managing changes.
a.	50	c.	90	
b.	70	d.	100	

ANS:	C	PTS:	1	REF:	159

	34.	____ should result in improvements in project performance.
a.	Corrective actions	c.	Preventive actions	
b.	Corrective reports	d.	Proactive methods	

ANS:	A	PTS:	1	REF:	160

	35.	____ provide information on how project execution is going.
a.	Performance reports	c.	Deliverables	
b.	Change requests	d.	Contracts	

ANS:	A	PTS:	1	REF:	160

	36.	Which of the following is an important input to the integrated change control process?
a.	Deliverables	
b.	Work performance information	
c.	Approved and rejected change requests	
d.	Approved and validated defect repair	

ANS:	B	PTS:	1	REF:	161

	37.	A(n) ____ is a formal, documented process that describes when and how official project documents may be changed.
a.	integrated change control	c.	performance report	
b.	change request	d.	change control system	

ANS:	D	PTS:	1	REF:	162

	38.	A(n) ____ is a formal group of people responsible for approving or rejecting changes to a project.
a.	CCA	c.	CCC	
b.	CCB	d.	CCD	

ANS:	B	PTS:	1	REF:	162

	39.	____ ensures that the descriptions of the project’s products are correct and complete.
a.	CCB	c.	Configuration management	
b.	Correction management	d.	Product description management	

ANS:	C	PTS:	1	REF:	163

	40.	____ tools track the execution of business process flows and expose how the state of supporting IT systems and resources is impacting end-to-end business process performance in real time.
a.	BSM	c.	CCA	
b.	CCB	d.	BSC	

ANS:	A	PTS:	1	REF:	165

COMPLETION

	1.	______________________________ involves coordinating all of the other project management knowledge areas throughout a project’s life cycle.

ANS:	Project integration management

PTS:	1	REF:	130

	2.	Good ____________________ management is critical to providing stakeholder satisfaction.

ANS:	project integration

PTS:	1	REF:	131

	3.	____________________ involves identifying and managing the points of interaction between various elements of the project.

ANS:	Interface management

PTS:	1	REF:	131-132

	4.	Project initiation starts with identifying potential projects, using realistic methods to select which projects to work on, and then formalizing their initiation by issuing some sort of ____________________.

ANS:	project charter

PTS:	1	REF:	135

	5.	The last step in the ____________________ process for selecting information technology projects is choosing which projects to do and assigning resources for working on them.

ANS:	planning

PTS:	1	REF:	136

	6.	Many information systems are classified as “____________________” because they directly support key business strategies.

ANS:	strategic

PTS:	1	REF:	137

	7.	Many organizations rely on effective _________________________ (NPD) to increase growth and profitability.

ANS:	new product development

PTS:	1	REF:	137

	8.	____________________ are undesirable situations that prevent an organization from achieving its goals.

ANS:	Problems

PTS:	1	REF:	138

	9.	____________________ are chances to improve the organization.

ANS:	Opportunities

PTS:	1	REF:	139

	10.	Even though many information technology projects can be completed quickly, it is still important to ____________________ them.

ANS:	prioritize

PTS:	1	REF:	139

	11.	A positive NPV means the return from a project exceeds the ____________________, the return available by investing the capital elsewhere.

ANS:	cost of capital

PTS:	1	REF:	140

	12.	A(n) ____________________ is the rate used in discounting future cash flow.

ANS:	discount rate

PTS:	1	REF:	141

	13.	______________________________ is the result of subtracting the project costs from the benefits and then dividing by the costs.

ANS:	
ROI
Return on investment
Return on investment (ROI)

PTS:	1	REF:	142

	14.	You can use the ____________________ function in Excel to determine the IRR quickly.

ANS:	Goal Seek

PTS:	1	REF:	143

	15.	A(n) _________________________ is a tool that provides a systematic process for selecting projects based on many criteria.

ANS:	weighted scoring model

PTS:	1	REF:	144

	16.	With a(n) ____________________, you can simply add all the points to determine the best projects for selection, without having to multiply weights and scores and sum the results.

ANS:	point model

PTS:	1	REF:	146

	17.	Enterprise _________________________ include relevant government or industry standards, the organization’s infrastructure, and marketplace conditions.

ANS:	environmental factors

PTS:	1	REF:	148

	18.	______________________________ include formal and informal plans, policies, procedures, guidelines, information systems, financial systems, management systems, lessons learned, and historical information that can be used to influence a project’s success.

ANS:	Organizational process assets

PTS:	1	REF:	148

	19.	A project manager usually organizes the project work into several work packages using a(n) ______________________________.

ANS:	
WBS
work breakdown structure
work breakdown structure (WBS)

PTS:	1	REF:	153

	20.	The Institute of Electrical and Electronics Engineers (IEEE) Standard 1058-1998 describes the contents of a(n) ________________________________________.

ANS:	
SPMP
Software Project Management Plan
Software Project Management Plan (SPMP)

PTS:	1	REF:	154

	21.	Project managers should not hesitate to consult ____________________ on different topics, such as what methodology to follow, what programming language to use, what training approach to follow, and so on.

ANS:	experts

PTS:	1	REF:	158

	22.	____________________ project work includes collecting, measuring, and disseminating performance information.

ANS:	Monitoring

PTS:	1	REF:	159

	23.	A(n) ____________________ is the approved project management plan plus approved changes.

ANS:	baseline

PTS:	1	REF:	159

	24.	A(n) preventive ____________________ might be modifying a time-tracking system screen to avoid common errors people made in the past.

ANS:	action

PTS:	1	REF:	161

	25.	_________________________ involves identifying, evaluating, and managing changes throughout the project life cycle.

ANS:	Integrated change control

PTS:	1	REF:	161

ESSAY

	1.	List and briefly describe the six main processes involved in project integration management.

ANS:	
1. Developing the project charter involves working with stakeholders to create the document that formally authorizes a project—the charter.
2. Developing the project management plan involves coordinating all planning efforts to create a consistent, coherent document—the project management plan.
3. Directing and managing project execution 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 document updates.
4. Monitoring and controlling project work involves overseeing activities to meet the performance objectives of the project. The outputs of this process are change requests, project management plan updates, and project document updates.
5. Performing integrated change control involves identifying, evaluating, and managing changes throughout the project life cycle. The outputs of this process include change request status updates, project management plan updates, and project document updates.
6. Closing the project or phase involves finalizing all activities to formally close the project or phrase. Outputs of this process include final product, service, or result transition and organizational process assets updates.

PTS:	1	REF:	130-131

	2.	How are potential projects identified?

ANS:	
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. Many people are familiar with SWOT analysis—analyzing Strengths, Weaknesses, Opportunities, and Threats—which is used to aid in strategic planning.

PTS:	1	REF:	133-134

	3.	What are the methods for categorizing Information Technology projects?

ANS:	
One method for selecting projects is based on various categorizations, such as the impetus for the project, the time window for the project, and the general priority for the project. The impetus for a project is often to respond to a problem, an opportunity, or a directive.

Problems are undesirable situations that prevent an organization from achieving its goals. These problems can be current or anticipated. For example, users of an information system may be having trouble logging onto the system or getting information in a timely manner because the system has reached its capacity. In response, the company could initiate a project to enhance the current system by adding more access lines or upgrading the hardware with a faster processor, more memory, or more storage space.

Opportunities are chances to improve the organization. For example, the project described in the opening case involves creating a new product that can make or break the entire company.

Directives are new requirements imposed by management, government, or some external influence. For example, many projects involving medical technologies must meet rigorous government requirements.

Organizations select projects for any of these reasons. It is often easier to get approval and funding for projects that address problems or directives because the organization must respond to these categories of projects to avoid hurting their business. Many problems and directives must be resolved quickly, but managers must also apply systems thinking and seek opportunities for improving the organization through information technology projects.

Another categorization for information technology projects is based on the time it will take to complete a project or the date by which it must be done. For example, some potential projects must be finished within a specific time window. If they cannot be finished by this set date, they are no longer valid projects. Some projects can be completed very quickly—within a few weeks, days, or even minutes. Many organizations have an end user support function to handle very small projects that can be completed quickly. Even though many information technology projects can be completed quickly, it is still important to prioritize them.

Organizations can prioritize information technology projects as being high, medium, or low priority based on the current business environment. For example, if it is crucial to cut operating costs quickly, projects that have the most potential to do so would be given a high priority. The organization should always complete high-priority projects first, even if a low- or medium-priority project could be finished in less time. Usually there are many more potential information technology projects than an organization can undertake at any one time, so it is very important to work on the most important ones first.

PTS:	1	REF:	138-139

	4.	What is a weighted scoring model? How is it created?

ANS:	
A weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria. These criteria can include factors such as meeting broad organizational needs; addressing problems, opportunities, or directives; the amount of time it will take to complete the project; the overall priority of the project; and projected financial performance of the project.

The first step in creating a weighted scoring model is to identify criteria important to the project selection process. It often takes time to develop and reach agreement on these criteria. Holding facilitated brainstorming sessions or using groupware to exchange ideas can aid in developing these criteria. Some possible criteria for information technology projects include:

  Supports key business objectives
  Has strong internal sponsor
  Has strong customer support
  Uses realistic level of technology
  Can be implemented in one year or less
  Provides positive NPV
  Has low risk in meeting scope, time, and cost goals

Next, you assign a weight to each criterion. Once again, determining weights requires consultation and final agreement. These weights indicate how much you value each criterion or how important each criterion is. You can assign weights based on percentages, and the sum of all of the criteria’s weights must total 100 percent. You then assign numerical scores to each criterion (for example, 0 to 100) for each project. The scores indicate how much each project meets each criterion. At this point, you can use a spreadsheet application to create a matrix of projects, criteria, weights, and scores. 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.

PTS:	1	REF:	144-145

	5.	What is integrated change control? What are the main objectives of integrated change control?

ANS:	
Integrated change control involves identifying, evaluating, and managing changes throughout the project life cycle. The three main objectives of integrated change control are:

1. Influencing the factors that create changes to ensure that changes are beneficial: To ensure that changes are beneficial and that a project is successful, project managers and their teams must make trade-offs among key project dimensions, such as scope, time, cost, and quality.

2. Determining that a change has occurred: To determine that a change has occurred, the project manager must know the status of key project areas at all times. In addition, the project manager must communicate significant changes to top management and key stakeholders. Top management and other key stakeholders do not like surprises, especially ones that mean the project might produce less, take longer to complete, cost more than planned, or be of lower quality than desired.

3. Managing actual changes as they occur: Managing change is a key role of project managers and their teams. It is important that project managers exercise discipline in managing the project to help minimize the number of changes that occur.

PTS:	1	REF:	161