\n

\n Students will read the\u00a0assignment narrative, and construct a financial analysis using Excel(mod 3 2a)\n <\/p>\n

\n and\n <\/p>\n

\n Develop a weighted scoring model(mod 3)\n <\/p>\n<\/div>\n

Students will read the assignment narrative, and construct a financial analysis using Excel(mod 3 2a) and Develop a weighted
\n Presented by: Michael Stackhouse, MBA CIS 366 1 2 This is the knowledge area that deals with coordinating all of the other project management knowledge areas throughout the project\u2019s lifecycle so that the proj ect is a success. This is the high-level view of the project \u2013 everyth ing that must be done by the project manager: Coordination of all people, plans and work Constant view of the big picture and course correctio n to ensure the team will complete the project Conflict resolution between people or goals Communication of progress to upper management All of this is critical to providing stakeholder satis faction! 3 These again are the main processes in project integration management: Initiating \u2013 developing the project charter authorizing the pro ject Planning\u2013 developing the project management plan which is the document that coordinates all planning efforts Executing \u2013 is where the work is carried out. This will result in deliverables, work performance data, change requests, project management plan updates and project document updates. Monitoring and Controlling \u2013 deals with monitoring and controlling the work so that the project objectives a re being met and handling change control. Closing \u2013 deals with finalizing all activities to formally clo se the project or phase — the project\u2019s deliverables are put into operational use. 4 Interface management \u2013 an interface is wherever various elements come together such as: Project requirements and daily operations Communications and stakeholders Technology and people problems there may be many such interfaces\u2026 Many projects fail because PMs forget or ignore managi ng the interfaces Effective PMs must think beyond the project: What does it mean to be the PM? How does this project relate to other projects in the o rganization? What does upper management expect of the PM, the te am, the project? So, this means that integration management has to happe n across the organization and all projects \u2013 not just his one! 6 Project Managers need to understand the added value that pursuing a project will bring to an organization. Likewise, they need to continually review if the project still will meet those goals as it is being carried out. Strategic planning is often carried out by upper management \u2013 they determine the long -term objectives of an organization through a common technique called a SWOT analysis. Based on these outcomes, potential project ideas will be generated. 7 SWOT stands forStrengths, Weaknesses, Opportunities and Threats \u2022 There is competition in the local area \u2022 Since our name is unknown, potential clients may not have trust in our capabilities \u2022 We know of several other web firms who have failed\u2022 There is competition in the local area \u2022 Since our name is unknown, potential clients may not have trust in our capabilities \u2022 We know of several other web firms who have failed \u2022 We know of a huge web project that will soon solicit RFPs \u2022 The need for web presences continues to grow \u2022 There are two regional conferences this year where we could network with potential customers\u2022 We know of a huge web project that will soon solicit RFPs \u2022 The need for web presences continues to grow \u2022 There are two regional conferences this year where we could network with potential customers \u2022 We have no accounting\/financial\/tax\/legal background \u2022 We have no clear marketing strategy to land new accounts\/work \u2022 Limited money to make hardware\/software\/rental investments\u2022 We have no accounting\/financial\/tax\/legal background \u2022 We have no clear marketing strategy to land new accounts\/work \u2022 Limited money to make hardware\/software\/rental investments \u2022 We have access to an existing client base \u2022 Three of us have strong sales and interpersonal skills \u2022 Two of us have strong technical skills and are familiar with the various software\/languages commonly used \u2022 We have successfully completed several high visible websites\u2022 We have access to an existing client base \u2022 Three of us have strong sales and interpersonal skills \u2022 Two of us have strong technical skills and are familiar with the various software\/languages commonly used \u2022 We have successfully completed several high visible websites Strengths Weaknesses Threats Opportunites This is a SWOT analysis for some people thinking of starting a web design business: Basedon the SWOT analysis, the following potential project list was generated: Find\/hire someone with accounting\/financial background and management skills to run the business Develop a marketing plan. Develop a strong proposal to land the large website project bid. Develop a plan to promote the company at the conferences. Review the reasons why other website companies have failed. 9 From the SWOT analysis, several potential projects were generated. Again, this may often be done by upper management. The next step is to ensure that those potential projects all align with the organizational goals and add value if they are pursued any further. Since we are most likely to be involved in IT projects, the IT department needs to have a strategic plan that is tied to the larger organizat ion plan. The key point here is that IT must have a clear vision of where it wants to go and how it impacts the organization . 10 In a larger context, there could be a layered approach used to think about IT projects in organizations wh ere IT is a service department and not the main line product: 1. IT strategic planning ties IT strategy to the mission and vision of the organization and identifies key business areas. 2. Business area analysis lists key business processes that could benefit from IT. 3. Project planning then examines the business proce sses to define potential projects, scope, benefits and constraints . 4. Resource allocation would select and assign the r esources to IT project to be implemented. 11 Proper selection of IT projects is a difficult task: Line managers often do not understand technology or what it can do for them. IT professionals often suffer from tunnel vision and don \u2019t pay the necessary attention to changing business needs. Organizations invest in IT projects that support expli cit business objectives: Create revenue growth Improving business processes Enable business innovation and expansion Lower business operation costs Lower IT operation costs Remember that many businesses still do not see IT as a co mpetitive advantage! 13 Boeing\u2019s MIS system showing the right information at the right time in the right amount of detail Chrysler\u2019s one-design system from concept through delivery integrating horizontal (suppliers) and ver tical (other factories, dealerships) chains Walmart\u2019s inventory control allows it to keep price s very low 14 UPS GPS based real-time pickup\/delivery trucks UPS eliminates left turns and saves huge $$ FedEx\u2019s online package tracking Owens Corning building design evaluator for best insulative properties 15 16 If we have many projects we could pursue, how do we decide on which ones to follow? Focusing on broad organizational needs \u2013 all this means is those that have a larger organizational impact (say safety or morale), are more likely to be implemented \u2013 may not be able to put a dollar value on the project, but ever yone agrees it should be done. Categorizing IT projects \u2013 easier to get funding if the project will: Solve a problem keeping the organization from meeting its goals \u2013 go to new server to increase response time Provide an opportunity to improve the organization \u2013 add online ordering in addition to paper catalogs Address a directive from management, government or leg al changes (medical technology requirements) Could also categorize by time to complete, priority, et ce tera 17 Performing NPV, ROI, Payback or other financial analyses Using a weighed scoring model Using a balanced scorecard which is another technique used to ensure that a project aligns with business strategy \u2013 see the Balanced Scorecard Institute or QuickMBA for more information Not in the book, but other commonly used techniques: Linear programming (CIS 425 discusses this) \u2013 combinatorial optimization technique to binary select projects based on criteria MiniMax techniques (CIS 422 will show this) \u2013 simplified game theory while introducing certainty probabilities 18 Financial considerations are often an important consideration in selecting projects \u201cProjects are never ends in themselves. Financially they are always a means to an end, cash\u201d Dennis Cohen and Robert Graham , The Project Manager\u2019s MBA Three primary methods for determining the projected financial value of projects Net present value (NPV) analysis Return on investment (ROI) Payback analysis PMs must become familiar with the language of business executives in order to make their case 19 NPV\u2013 Net Present Value looks at the net gain or loss of a project by converting future cash flows into today\u2019s dollars. ROI \u2013 Return on Investment looks at the financial value of a project \u2013 returns after expenses are taken out. Payback \u2013 looks at how long it will take until a project pays for itself. 20 A dollar earned today is worth more than $1 earned 5 years from now. You can buy today if you have money today Future dollars will buy less than today\u2019s dollar So NPV will look at the dollars flowing in and out of the project over time. Only positive NPV should be pursued \u2013 this means the returns exceed the cost of capital! What if all projects have positive NPVs? Higher NPVs are better! 21 Weneed to collect the estimated costs and benefits for a project each year of its useful life. Many times the first year will see a larger cost as procurement or development has to take place. Subsequent years will see operational costs. Determine the discount rate\/capitalization rate\/opportunity cost of capital which is the rate of return that could be earned on an investment in the financial markets with similar risk — basicall y if we took the dollars we\u2019d spend on the project and invested them instead in say a CD or short-term bond 22 23 Discount rate 0.08 (<-- 8%) Assume project is completed in year 1 ($100,000 dev costs and 40,000 operational costs each year) (After year 1, we expect to see 200,000 in increase d sales each year) Years 0 1 2 3 Total Costs 140000 40000 40000 40000 Discount Factor 1 0.925926 0.857339 0.793832 Discounted Costs 140000 37037.04 34293.55 31753.29 24308 3.9 Benefits 0 200000 200000 200000 Discount Factor 1 0.925926 0.857339 0.793832 Discounted Benefits 0 185185.2 171467.8 158766.4 515419. 4 This row is simply the Discounted Benefits(year t) value - Discounted Costs(year t) value Discounted Benefits-Costs -140000 148148.1 137174.2 127 013.2 272335.5 <--NPV Cumulative Benefits-Costs -140000 8148.148 145322.4 272 335.5 Discounted ROI 1.120335575 (<-- 112% Discounted ROI) ROI 0.982382298 (<-- 98% ROI) Discount Factor(year t) = 1\/(1 + Discount Rate)^t Discounted Cost(year t) = Discount Factor(year t)*C osts(year t) Discount Factor(year t) = 1\/(1 + Discount Rate)^t Discounted Benefit(year t) = Discount Factor(year t )*Costs(year t) Discounted ROI = (total discounted benefits - total discounted costs) \/ total discounted costs ROI = (total benefits - total costs) \/ total costs Once ROI is calculated, it can be used as another metric to determine whether a project should be pursued. Many companies have a required rate of return and if a project\u2019s ROI is not at least equal to the acceptable rate of return, the project will most likely not be pursued. We could also calculate the internal rate of return which is the discount rate that results in an NPV equal to 0 . If the IRR is greater than the discount rate, again the project should be pursued. 24 25 Discount Rate 0.1 (<--10%)Year PROJECT 1 1 2 3 4 5 Totals Benefits 0 2000 3000 4000 5000 14000 Costs 5000 1000 1000 1000 1000 9000 Cash Flows -5000 1000 2000 3000 4000 5000 NPV via formula $2,316.35 IRR 27% ROI 0.555555556 PROJECT 2 1 2 3 4 5 Totals Benefits 1000 2000 4000 4000 4000 15000 Costs 2000 2000 2000 2000 2000 10000 Cash Flows -1000 0 2000 2000 2000 5000 NPV via formula $3,201.41 IRR 90% ROI 0.5 All other things held equal, PROJECT 2 would be pur sued based on NPV and IRR Notice that the net cash flows over the lifetime we re the same Based on ROI alone, Project 1 offer a 55% ROI, wher eas Project 2 overs a lower 50% This is why you need to perform several financial a nalyses and not just one! Another useful metric to calculate is the payback period \u2013 this is the amount of time it will take to recoup the total dollars invested in a project. Mathematically we would need to come up with a function for costs and another for benefits and where they intersect, we have our payback period. We can get a view by looking at the cumulative values in the spreadsheet where benefit-costs first goes positive. 26 27 Discount rate 0.08 (<-- 8%)Years 0 1 2 3 Total Costs 140000 40000 40000 40000 Discount Factor 1 0.925926 0.857339 0.793832 Discounted Costs 140000 37037.04 34293.55 31753.29 24308 3.9 Benefits 0 200000 200000 200000 Discounted Benefits 0 185185.2 171467.8 158766.4 515419. 4 Cumulative Discounted Costs 140000 177037 211330.6 2430 83.9 Cumulative Discounted Benefits 0 185185.2 356652.9 5154 19.4 Discounted Benefits-Costs -140000 148148.1 137174.2 127 013.2 Cumulative Benefits-Costs -140000 8148.148 145322.4 272 335.5 Cumulative NonDiscounted Costs 140000 180000 220000 260 000 Cumulative NonDiscounted Benefits 0 200000 400000 60000 0 NonDiscounted Benefits-Costs -140000 160000 160000 1600 00 Cumulative Benefits-Costs -140000 20000 180000 340000 Payback in both cases is in Year 1 -- it is the fir st point where the cumulative benefits-costs become positive. Note this will differ depending o n if we use discounted or a nondiscounted method. I graphed both by selecting the two sets of data and inserting a line graph in Excel: 28 0 100000 200000 300000 400000 500000 600000 0 1 2 3 Year Cumulative Discounted Costs Cumulative Discounted Benefits 0 100000 200000 300000 400000 500000 600000 700000 0 1 2 3 Cumulative NonDiscounted Costs Cumulative NonDiscounted Benefits Payback periods that occur in the first year should be strongly considered. The earlier the payback occurs the better \u2013 if it\u2019s toward the end of the lifecycle, the project may need to be considered. 29 \u2022Homework \u2013 Assignment 3 due Friday February 12 at Midnight \u2022 Quiz 4 due Wednesday February 9 at Midnight 30 31 If we have many projects we could pursue, how do we decide on which ones to follow? Focusing on broad organizational needs \u2013 all this means is those that have a larger organizational impact (say safety or morale), are more likely to be implemented \u2013 may not be able to put a dollar value on the project, but ever yone agrees it should be done. Categorizing IT projects \u2013 easier to get funding if the project will: Solve a problem keeping the organization from meeting its goals \u2013 go to new server to increase response time Provide an opportunity to improve the organization \u2013 add online ordering in addition to paper catalogs Address a directive from management, government or leg al changes (medical technology requirements) Could also categorize by time to complete, priority, et ce tera 32 Performing NPV, ROI, Payback or other financial analyses Using a weighed scoring model Using a balanced scorecard which is another technique used to ensure that a project aligns with business strategy \u2013 see the Balanced Scorecard Institute or QuickMBA for more information Not in the book, but other commonly used techniques: Linear programming (CIS 425 discusses this) \u2013 combinatorial optimization technique to binary select projects based on criteria MiniMax techniques (CIS 422 will show this) \u2013 simplified game theory while introducing certainty probabilities 33 Financial considerations are often an important consideration in selecting projects \u201cProjects are never ends in themselves. Financially they are always a means to an end, cash\u201d Dennis Cohen and Robert Graham , The Project Manager\u2019s MBA Three primary methods for determining the projected financial value of projects Net present value (NPV) analysis Return on investment (ROI) Payback analysis PMs must become familiar with the language of business executives in order to make their case 34 NPV\u2013 Net Present Value looks at the net gain or loss of a project by converting future cash flows into today\u2019s dollars. ROI \u2013 Return on Investment looks at the financial value of a project \u2013 returns after expenses are taken out. Payback \u2013 looks at how long it will take until a project pays for itself. 35 A dollar earned today is worth more than $1 earned 5 years from now. You can buy today if you have money today Future dollars will buy less than today\u2019s dollar So NPV will look at the dollars flowing in and out of the project over time. Only positive NPV should be pursued \u2013 this means the returns exceed the cost of capital! What if all projects have positive NPVs? Higher NPVs are better! 36 Weneed to collect the estimated costs and benefits for a project each year of its useful life. Many times the first year will see a larger cost as procurement or development has to take place. Subsequent years will see operational costs. Determine the discount rate\/capitalization rate\/opportunity cost of capital which is the rate of return that could be earned on an investment in the financial markets with similar risk -- basicall y if we took the dollars we\u2019d spend on the project and invested them instead in say a CD or short-term bond 37 38 Discount rate 0.08 (<-- 8%) Assume project is completed in year 1 ($100,000 dev costs and 40,000 operational costs each year) (After year 1, we expect to see 200,000 in increase d sales each year) Years 0 1 2 3 Total Costs 140000 40000 40000 40000 Discount Factor 1 0.925926 0.857339 0.793832 Discounted Costs 140000 37037.04 34293.55 31753.29 24308 3.9 Benefits 0 200000 200000 200000 Discount Factor 1 0.925926 0.857339 0.793832 Discounted Benefits 0 185185.2 171467.8 158766.4 515419. 4 This row is simply the Discounted Benefits(year t) value - Discounted Costs(year t) value Discounted Benefits-Costs -140000 148148.1 137174.2 127 013.2 272335.5 <--NPV Cumulative Benefits-Costs -140000 8148.148 145322.4 272 335.5 Discounted ROI 1.120335575 (<-- 112% Discounted ROI) ROI 0.982382298 (<-- 98% ROI) Discount Factor(year t) = 1\/(1 + Discount Rate)^t Discounted Cost(year t) = Discount Factor(year t)*C osts(year t) Discount Factor(year t) = 1\/(1 + Discount Rate)^t Discounted Benefit(year t) = Discount Factor(year t )*Costs(year t) Discounted ROI = (total discounted benefits - total discounted costs) \/ total discounted costs ROI = (total benefits - total costs) \/ total costs 39 Discount Rate 0.1 (<--10%)Year PROJECT 1 1 2 3 4 5 Totals Benefits 0 2000 3000 4000 5000 14000 Costs 5000 1000 1000 1000 1000 9000 Cash Flows -5000 1000 2000 3000 4000 5000 NPV via formula $2,316.35 IRR 27% ROI 0.555555556 PROJECT 2 1 2 3 4 5 Totals Benefits 1000 2000 4000 4000 4000 15000 Costs 2000 2000 2000 2000 2000 10000 Cash Flows -1000 0 2000 2000 2000 5000 NPV via formula $3,201.41 IRR 90% ROI 0.5 All other things held equal, PROJECT 2 would be pur sued based on NPV and IRR Notice that the net cash flows over the lifetime we re the same Based on ROI alone, Project 1 offer a 55% ROI, wher eas Project 2 overs a lower 50% This is why you need to perform several financial a nalyses and not just one! Another useful metric to calculate is the payback period \u2013 this is the amount of time it will take to recoup the total dollars invested in a project. Mathematically we would need to come up with a function for costs and another for benefits and where they intersect, we have our payback period. We can get a view by looking at the cumulative values in the spreadsheet where benefit-costs first goes positive. 40 41 Discount rate 0.08 (<-- 8%)Years 0 1 2 3 Total Costs 140000 40000 40000 40000 Discount Factor 1 0.925926 0.857339 0.793832 Discounted Costs 140000 37037.04 34293.55 31753.29 24308 3.9 Benefits 0 200000 200000 200000 Discounted Benefits 0 185185.2 171467.8 158766.4 515419. 4 Cumulative Discounted Costs 140000 177037 211330.6 2430 83.9 Cumulative Discounted Benefits 0 185185.2 356652.9 5154 19.4 Discounted Benefits-Costs -140000 148148.1 137174.2 127 013.2 Cumulative Benefits-Costs -140000 8148.148 145322.4 272 335.5 Cumulative NonDiscounted Costs 140000 180000 220000 260 000 Cumulative NonDiscounted Benefits 0 200000 400000 60000 0 NonDiscounted Benefits-Costs -140000 160000 160000 1600 00 Cumulative Benefits-Costs -140000 20000 180000 340000 Payback in both cases is in Year 1 -- it is the fir st point where the cumulative benefits-costs become positive. Note this will differ depending o n if we use discounted or a nondiscounted method. I graphed both by selecting the two sets of data and inserting a line graph in Excel: 42 0 100000 200000 300000 400000 500000 600000 0 1 2 3 Year Cumulative Discounted Costs Cumulative Discounted Benefits 0 100000 200000 300000 400000 500000 600000 700000 0 1 2 3 Cumulative NonDiscounted Costs Cumulative NonDiscounted Benefits Payback periods that occur in the first year should be strongly considered. The earlier the payback occurs the better \u2013 if it\u2019s toward the end of the lifecycle, the project may need to be considered. 43 44 Similar to polar graphing, this method assesses several important criteria on projects and ranks them on importance to the project. The criteria can include factors such as: Meeting broad organizational needs Addressing problems, opportunities or directives Amount of time needed to complete project Overall priority of project Projected financial performance 45 You should pick criteria in sucha way that each can be \u201cinterpreted\u201d the same way, e.g. a larger criterion score is better. The total of the weights must equal 100%. Each project is then scored as to how well it meets a criterion (again using a scale from 0 to 100 points makes the calculations easier. 46 Each project\u2019s criterion is then weight calculated and the project with the largest weighted score is deemed the best. Some organizations will set a minimum weight that a project must score before it will be considered. 47 48 CriteriaWeight Project 1 Project 2 Project 3 Project 4 Supports key business objectives 25.00% 90 90 50 20 Has strong internal sponsor 15.00% 70 90 50 20 Has strong customer support 15.00% 50 90 50 20 Uses realistic level of technology 10.00% 25 90 50 70 Can be implemented in a year or less 5.00% 20 20 50 90 Provides positive NPV 20.00% 50 70 50 50 Has low risk in meeting scope, time and cost goals 1 0.00% 20 50 50 90 Weighed Project Scores 100.00% 56 78.5 50 41.5 0 20 40 60 80 100 Project 1 Project 2 Project 3 Project 4 Weighed Score by Project 49 CriteriaWeight Project 1 Project 2 Project 3 Project 4 Supports key business objectives 25.00% 90 90 50 20 Has strong internal sponsor 15.00% 70 90 50 20 Has strong customer support 15.00% 50 90 50 20 Uses realistic level of technology 10.00% 25 90 50 70 Can be implemented in a year or less 5.00% 20 20 50 90 Provides positive NPV 20.00% 50 70 50 50 Has low risk in meeting scope, time and cost goals 1 0.00% 20 50 50 90 Weighed Project Scores 100.00% 56 78.5 50 41.5 0 20 40 60 80 100 Business Objectives Internal Sponsor Customer Support Technology Implementation Time NPV Low Risk Project Selection Polar Analysis Project 1 Project 2 Project 3 Project 4 50 This is the next step taken after upper management decides on which projects to pursue. The charter is the formal recognition that the project exists and outlines the objectives and management. It gives the PM authority to use organizational res ources to complete the project. Some organizations use simple letters of engagement while others build up much more complex contracts. All projects should have a charter \u2013 many internal o nes would benefit from having clear requirements, expectations and stakeholder support! 51 The following items can be helpful in constructing the charter: A project statement of workdescribing what is to be created, what the need of the project is, alignment to strategic goals and some requirements. A business case often outlines time and cost constraints and may include financial analyses showing the benefits of the project Agreements\/Letters of Intent\/RFPs outline how and what is agreed upon to be delivered to an external customer. Enterprise environmental factors may include relevant government or industry standards, the organization\u2019s infrastructure and marketplace conditions. 52 Organizational process assets are the formal\/informal plans, policies, procedures, guidelines, information\/financial\/management systems, lessons learned and historical information that can influence a project\u2019s success. Getting as much input from people inside and outside the organization should be garnered to make the charter useful and realistic. This will often require brainstorming and facilitation techniques. 53 The project\u2019s title and date of authorization The PM\u2019s name and contact information A summary schedule, including the planned start and finish dates; if a summary milestone schedule is available, it should also be included or referenced A summary of the project\u2019s budget or reference to budgetary documents Brief descriptions of the project\u2019s objectives, including the business need or other justification for authorizing the project 54 Project success criteria, including project approval requirements and who signs off on the project A summary of the planned approach for managing the project, which should include stakeholder needs and expectations, important assumptions and constraints , and should refer to related documents, such as a commun ications management plan as available A roles and responsibilities matrix A sign-off section for signatures of key project st akeholders A comments section in which stakeholders can provid e important comments related to the project. Nutz and Boltz Charter 55 It should be reviewed with the PM and upper management Those involved should understand and agree upon their roles and responsibilities The charter should try to address any issues that the project sponsor has highlighted \u2013 to ensure they are comfortable with how the project will proceed. 56 57 This document is developed after the charter has been signed off. It will be used to coordinate all project planning documents and guide a project\u2019s execution and control. All other plans created in the knowledge areas are subsidiary parts of the project management plan (for example the communications plan). 58 This document requires information from all of the project knowledge areas therefore it is integral to work with the project team and stakeholders to build up the necessary sections. Many of the same inputs from the charter can be used as inputs in creating the project management plan; in addition, the various outputs from the planning processes can be used to guide what is needed. 59 On a small project, it may simply include the charter, scope statement and a Gantt chart. A large project may develop a plan that is several hundredpages long. The PMP must be tailored to the needs to the specific project it is being developed for. 60 Introduction: The unique identifier and project name A brief description of the project and the need it addresses The sponsor\u2019s name and contact information The name and contact information for the project manager and key team members 61 Introduction: All deliverables of the project should be listed A list of all important reference materials: historical documents relevant to project, summaries of all other knowledge area project management plans A list of definitions and acronyms, if appropriate 62 A descriptionof how the project is organized: Organization chart for the company sponsoring the project; it should also show lines of authority, responsibilities and communications for the project Project responsibilities describing major project functions and activities and who will carry them out Other organizational or process-related information to detail any major processes that will be followed , could be flowcharts and\/or timelines 63 A description of management and technical approaches: Management objectives describing management\u2019s view, priorities and assumption\/constraints of the projec t Project controls describing how to monitor progress and how to handle change Risk management addresses how the team will identify, manage and control risks (summarize risk management plan) Project staffing will list the number and types of people required for the project (summarize human resources management plan) Technical processes describing the specific methodologies being used and how to document information 64 A descriptionof the work needed to be performed referencing the scope management plan: A discussion of major work packages that will be executed using summaries of the scope statement and work breakdown structures for each work package A list of key deliverables and the quality expectations for each Other work-related information highlighting information related to the work being performed on the project (hardware\/software lists; assumptions) 65 A project schedule section: A one-page summary schedule of the overall project and major milestones A detailed schedule that references the schedule management plan and any dependencies that could affect the schedule Other schedule related information, most often assumption held when making the schedule 66 A project budget section: A summary budget including the total estimate of the overall project\u2019s budget. It may include estimates by month\/year or by categories. It should include an explanation of what each number means. Detailed budget summarizing the cost management plan and providing detailed budget information. Other budget related information related to the financial aspects of the project. 67 69 This involves several facets: Coordinating Planning and Execution The PMP should produce good results and define what makes up a good result. Think about writing software from a poor specification Those who will do the work should plan the work . Providing Strong Leadership and a Supportive Culture PMs need to focus on leading the project team by examp le A cultural that allows mistakes and clearly defines success is a must PMs must actively work to eliminate organizational obstacles to the project team PMs also must focus on managing stakeholder relationships The knowledge areas of human resource management , communications management and stakeholder management come into play here 70 Capitalizing on Product, Business & Application Area Knowledge Successful PMs must understand the technical environment of the project \u2013 it is not enough to just understand the technology or just understand the business environment; a holistic view is required Sometimes an IT PM may have to serve as a technical mentor Project Execution Tools and Techniques: Expert judgment is bringing in the right people to consult at the right time Meetings: they don\u2019t have to be long, but a 10 minu te face-to-face can defuse a 3 day email session PM information systems: Excel, Project, et cetera 71 Many PMs state that 90% of the job is communicating and handling change. Change will happen, so create a plan for dealing with it. Changes must be approved. Monitoring involves collecting, measuring and disseminating performance information to see what process improvements can be made. 72 The PMP should include a baselinefor identifying and controlling project changes; a baseline is the approved plan plus approved changes ; we often will build just cost or schedule baselines Schedule and cost forecasts, validated changes and work performance information provide details on how the execution is going . We need to be able to monitor and control project work to see if corrective or preventive actions mus t be taken. The major outputs of this work is change requests and work performance reports . 73 This deals with identifying, evaluating and managing changes throughout the project lifecycle. The main objectives of change control are: Influencing the factors that create changes to ensure that changes are beneficial (evaluate scope\/time\/cost\/quality tradeoffs to ensure project success) Determining that a change has occurred and communicating these changes to keep everyone on the same page. Managing actual changes as they occur getting approval where needed 74 Change requests may be written or oral, formal or informal. All changes, no matter how small need to be approved \u2013 put a change control system and\/or change control board in place to deal with this. Changes need to recorded: change requests, change logs, approved requests, updates to the PMP and project documents. On IT projects involving software development, consider using a version control system too; Microsoft Team Foundation Server; GIT are examples. 75 All activities are finalized, and the completed or cancelled work is transferred to the appropriate people. The main inputs are the PMP, accepted deliverables and organizational judgment. The main outputs are: Final product, service or result transition to the operational environment; this may include a written statement or completion form. Updates to the organizational process assets: a list of project documentation, project closure documents and historical information. 76 \u2022Homework \u2013 Assignment 3 due Friday February 12 at Midnight \u2022 Quiz 4 due Wednesday February 9 at Midnight 77\n<\/p>\n","protected":false},"excerpt":{"rendered":"

Students will read the\u00a0assignment narrative, and construct a financial analysis using Excel(mod 3 2a) and Develop a weighted scoring model(mod 3) Students will read the assignment narrative, and construct a financial analysis using Excel(mod 3 2a) and Develop a weighted Presented by: Michael Stackhouse, MBA CIS 366 1 2 This is the knowledge area that […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/255794"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=255794"}],"version-history":[{"count":1,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/255794\/revisions"}],"predecessor-version":[{"id":257769,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/255794\/revisions\/257769"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=255794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=255794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=255794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}