TOPIC:
Project Integration Management
TOPIC: Project Integration Management
Learning outcomes:
Discuss project integration management as it relates to the other project management knowledge areas and the project life cycle.
Evaluate project selection using the various (quantitative) financial models
Discuss the integrated change control process, planning for and managing changes on information
technology (IT) projects
Time (110 mins) Topic Activity
In groups of 3 – 4, discuss:
1. Describe project integration management. How does it relate to the project life cycle, stakeholders, and the other project management knowledge areas?
2. Why is it important to select the right project in an organisation? Ensure you discuss costs vs business benefits!
3. Discuss the different methods for selecting IT projects.
4. What are the 3 main objectives of performing an integrated change control? Discuss the importance of following a well-integrated change control process on IT projects.
30 mins Time value of Money
Activity 2:
Cash inflows of $6,000 will be received at the end of years 3, 4, 5, and 6. The amounts are invested at interest rate 20% per year.
a) Calculate the value of the investment at the end of year 8. (Hint: Use the FV formula)
Discount rate:
Project Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
Cash inflow
Invest no. years
Formula
Value
b) Calculate the present value of the cash inflows. (Hint: Use the NPV formula)
20
Mins Project team report Activity 4:
Template for Activity 3 a) and b)
Discount rate 10%
Discount factor
Year
PROJECT A 1 2 3 4 5 TOTAL
Costs $20,000 $2,000 $1,000 $1,000 $1,000 $25,000
Discounted costs
Benefits $0 $5,000 $10,000 $10,000 $10,000 $35,000
Discounted benefits
Discounted cash flow
Cumulative disc cash flow
NPV:
ROI:
Year
PROJECT B 1 2 3 4 5 TOTAL
Costs $10,000 $5,000 $5,000 $3,000 $2,000 $25,000
Discounted costs
Benefits $1,000 $2,000 $5,000 $12,000 $15,000 $35,000
Discounted benefits
Discounted cash flow
Cumulative disc cash flow
NPV:
ROI:
