PMP Course - Integration Management V2

Project Management Institute, A Guide to the Project Management Body of
Knowledge (PMBOK Guide), Fifth Edition, copyright 2013. Copyright and all
rights reserved. Material from this publication has been reproduced with the
permission of PMI
PMP
Preparation Class
Qudratullah Hiwadpal, PMP
http://af.linkedin.com/in/hiwadpal/
BARYA CONSULTING SERVICES
www.barya.af/ training@barya.af
PMI, PMP and PMBOK, PM Network, PMI Today, PMI R.E.P, Project Management Journalareregistered marks of the Project Management Institute, Inc.
Lesson FIVE
Project Integration Management
Processes in Integration Management
Develop Project Charter
Develop Project Management Plan
Direct and Manage Project Work
Monitor and Control Project Work
Perform Integrated Change Control
Close Phase or Project
Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

Introduction
Project Manager is Integrator
Integration is Unification, Consolidation,

Communication and integrative actions for project
activities implementation.
Integration Management High Level Project work

Processes in
Integration Management

Summary
Table of (ITTO)
for Integration
Management
A Guide to the Project Management Body of

Knowledge, Fifth Edition (PMBOK Guide)
2013 Project Management Institute, Inc.
Copyright and all rights reserved. Fig. 4-1, Project
Integration Management Overview, Page 65
High Level Planning for the feasibility of the

Project
Major Stakeholders Identification
High Level Objectives, Requirements,

Constraints, Assumptions, Scope and Risks

Inputs Tools & Techniques Outputs

Project Charter
for Project Manager
Gives formal recognition (authorizes) project.
Gives authority to project manager for resources

utilization and power to make decisions.
Provides success criteria
Connects project to Organizations work

Project Charter
What you need
Project Statement of Work S.O.W: is a narrative

description of products, services, or results to be
delivered by a project.
For internal projects, the project initiator or sponsor

provides the statement of work based on business
needs, product, or service requirements.
For external projects, the statement of work can be

received from the customer as part of a bid
document, (e.g., a request for proposal, request for
information, or request for bid) or as part of a contract

Project Charter
What you need
Business Case:
The business case or similar document describes the
necessary information from a business standpoint to determine
whether or not the project is worth the required investment
Agreements:
Used to define initial intentions for a project. Agreements may
take the form of contracts, memorandums of understanding
(MOUs), service level agreements (SLA), letter of agreements,
letters of intent, verbal agreements, email, or other written
agreements.
Usually; Contract is used when a project is being performed

for an external customer

Project Charter
What you need
Enterprise Environmental Factors: As

discussed in Lesson THREE, these can impact
Project Charter
Governmental standards, industry standards,
or regulations
Organizational culture and structure, and
Marketplace conditions.

Project Charter
INPUTS
Organizational Process Assets
Organizational standard processes,

policies, and process definitions,
Templates (e.g., project charter template),

and
Historical information and lessons learned

knowledge base

Project Charter
TOOLS & TECHNIQUES
Expert Judgement
Other units within the organization,
Consultants,
Stakeholders,
Professional and technical associations,
Industry groups,
Subject matter experts
Project management oce

Project Charter
TOOLS & TECHNIQUES
Facilitation Techniques
Brainstorming,
conflict resolution,
problem solving, and
meeting management

Project Charter
OUTPUTS
Project Charter,
summarizing
Project purpose or Assumptions and
justification, constraints,
Measurable project High-level project
objectives and description and
related success boundaries,
criteria, High-level risks,
High-level
requirements,
Project Charter
OUTPUTS
Project Charter, Assigned project

summarizing manager,
Summary milestone responsibility, and
schedule, authority level, and
Summary budget, Name and authority
of the sponsor or
Stakeholder list, other person(s)
Project approval authorizing the
requirements project charter.

Project Selection
Economic Models for Project Selection
Present Value (PV)
Net Present Value (NPV)
Internal Rate of Return (IRR)
Payback Period
Cost Benefit Analysis

Project Selection
Present Value
The value today of future cash flows
FV = Future Value
FV
PV = R = Interest Rate
(1 + R)n
N = Number of Time Periods

Project Selection
Net Present Value (NPV)
We wont calculate it for the exam and don't

need it
Its the pure profit (income - cost)
Generally, if POSITIVE investment is good
Greatest NPV projects are usually selected

Project Selection
Internal Rate of Return (IRR)
The rate at which project inflows and outflows

are equal
Project with highest return is selected
We wont calculate for the project selection

Project Selection
Payback Period
The duration it takes to recover investment

before making profit
Usually the shorter the payback period, the

better it is

Project Selection
Cost - Benefit Analysis
Comparison of expected project costs to the

potential benefits
Can be expressed as a decimal or a ratio
Greater than ONE is good (meaning benefit is

greater than cost)

Project Selection
Economic Value Added (EVA)
Whether the project returns to the company more

value than the initiative costs
Opportunity Cost
Opportunity given up by selecting one project

over another, doesn't require any calculations

Project Selection
Sunk Cost
Spent money
Law of Diminishing Returns
After a certain point, adding more input will not

produce proportional increase in productivity

Project Selection
Working Capital
Current assets minus current liabilities, in other words

money available to invest
Depreciation
Loss of value over time
Straight Line depreciation: same amount every year
Accelerated Depreciation
Accelerated deprecation depreciates faster than straight

line deprecation
Develop Project
Management Plan
Develop Project Management Plan is

the process of defining, preparing, and
coordinating all subsidiary plans and
integrating them into a comprehensive
project management plan.
Management Plan for every knowledge
area

Develop Project
Management Plan
Also Plans for Change Management,

Configuration Management,
Requirements Management and
Process Improvement
All processes used in Project
Scope, Schedule and Cost baselines

Develop Project
Management Plan

Develop Project
Management Plan
Performance Measurement Baselines (scope,

schedule, cost), used to report and control progress
Requirements Management Plan: stakeholders

requirements analysis, prioritization, control and
documentation throughout the project

Develop Project
Management Plan
Process Improvement Plan: always an effort to

improve how things gets done and improve
quality
Configuration Management Plan: Here we

ensure everyone knows which version of every
plan is the latest, and how baseline documents
are updated.

Changes are VERY important it takes time, cost money and

affect everything
Change Management Plan
Change Control Procedures (How and Who)
The approval level for authorizing change
Change Control Board and relevant mechanisms
Organizational tools to track and control changes
Reporting outcomes of change requests

Putting it together

Develop Project
Management Plan
Project Documents
Project Management Plan Approval
Kickoff Meeting

Direct and Manage Project Work is the process of

leading and performing the work defined in the
project management plan and implementing
approved changes to achieve the projects
objectives
Integrating all for execution and project

deliverables
The major process with Monitor and Control

Project Work


Monitoring happens throughout the project
Comparison of actual progress to planned progress
Identification, analysis and reporting of new risks;
Timely status information and reporting
Providing forecasts to update current cost and current

schedule information;
Monitoring implementation of approved changes as

they occur;

Work Authorization System:

part of enterprise environmental factors and project
manager authorizes start of work-package or
activities
Corrective Action
Preventive Action
Defect Repair

Tools and Techniques
Expert Judgement
Analytical Techniques, some examples
Regression Analysis: An analytic technique

where a series of input variables are examined
in relation to their corresponding output results
in order to develop a mathematical or
statistical relationship.
Grouping Method:

Causal Analysis:
Root cause analysis: type
of causal analysis where we
analyze the root causes of
the problem, not focusing on
symptoms.
Forecasting Methods: using different forecasting

techniques, such as schedule or cost forecasting to
predict project performance

Failure mode and effect analysis (FEMA):
An analytical procedure in which each potential

failure mode in every component of a product is
analyzed to determine its effect on the reliability of
that component and, by itself or in combination with
other possible failure modes, on the reliability of the
product or system and on the required function of the
component;

or
the examination of a product (at the system and/or

lower levels) for all ways that a failure may occur. For
each potential failure, an estimate is made of its
effect on the total system and of its impact. In
addition, a review is undertaken of the action
planned to minimize the probability of failure and to
minimize its effects.

Fault Tree Analysis (FTA): is a top down,

deductive failure analysis in which an
undesired state of a system is analyzed
using Boolean logic to combine a series of
lower-level events
Reserve Analysis: An analytical technique

to determine the essential features and
relationships of components in the project
management plan to establish a reserve
for the schedule duration, budget,
estimated cost, or funds for a project.

Earned Value Management (EVM): is a
methodology that combines scope,
schedule, and resource measurements to
assess project performance and progress.
It is a commonly used method of
performance measurement for projects.
Trend Analysis: examines

project performance over
time to determine whether
performance is improving
or deteriorating.
Variance Analysis: is a
technique for determining the
cause and degree of difference
between the baseline and
actual performance.
OUTPUT
Change Requests
Corrective Action, Preventive Action, Defect

Repair
Work Performance Reports
Project Management Plan Updates
Project Document Updates

Changes happen throughout the project
Changes can be expensive, some studies show it is 100 times

more expensive if happen later in the project
All changes doesn't need to be implemented or rejected
Change Management is ultimately P.Ms responsibility
He/ She is responsible to prevent as many changes as possible

through right planning and stakeholders identification.
All possible changes must be planned, managed and controlled
Cost, Schedule and Scope need to be updated in light of changes


To control changes, Project Manager must
Work to obtain comprehensive requirements ASAP
Comprehensively identify project risks
Establish cost and time reserves
Have and follow change control process
Change request process and templates
Clear roles and responsibilities for change approval
Reevaluation of business case incase of many changes
Project termination or another project initiation if too many changes
Only approved changes allowed to change project baselines

Perform Integrated Change
Control
Change Control Board (CCB)
it approves all required changes in project
May include Project Manager, customer or

representative, experts, sponsor, functional
managers and others
For exam, assume all projects have CCB

Perform Integrated
Change Control
Process of making
changes (Summary)

Detailed process of Making changes
1. Prevent root causes of changes
2. Identify Change
3. Look at the impact of the change within

knowledge area
4. Create change request

Detailed process of Making changes
5. Perform Integrated change control

a. Assess the change
b. Look for options
c. The change is approved or rejected
d. Update the status of the change in the change log
e. Adjust the project plan, documents and baselines
6. Manage expectations by communicating changes to
effected stakeholders
7. Manage the project to revised project plan and
documents

Activities involved in close phase or project
Confirm work is done to requirements
Complete procurement closure
Gain final acceptance of the product
Complete financial closure

Hand off completed product
Solicit feedback from customer about the project
Complete final performance reporting
Index and archive records
Gather final lessons learned and update

knowledge base


Lesson FIVE
Wrap-Up
Processes in Integration Management

PMP Course - Integration Management V2

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Project Management Institute, A Guide to the Project Management Body of

Qudratullah Hiwadpal, PMP

Processes in Integration Management

Develop Project Charter

Develop Project Management Plan

Direct and Manage Project Work

Monitor and Control Project Work

Perform Integrated Change Control

Close Phase or Project

Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

Project Manager is Integrator

Integration is Unification, Consolidation,

Integration Management High Level Project work

Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

A Guide to the Project Management Body of

High Level Planning for the feasibility of the

Major Stakeholders Identification

High Level Objectives, Requirements,

Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

Inputs Tools & Techniques Outputs

Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

Gives formal recognition (authorizes) project.

Gives authority to project manager for resources

Provides success criteria

Connects project to Organizations work

Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

Project Statement of Work S.O.W: is a narrative

For internal projects, the project initiator or sponsor

For external projects, the statement of work can be

Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

Usually; Contract is used when a project is being performed

Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

Enterprise Environmental Factors: As

Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

Organizational Process Assets

Organizational standard processes,

Templates (e.g., project charter template),

Historical information and lessons learned

Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

Professional and technical associations,

Subject matter experts

Project management oce

Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

problem solving, and

Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

Project Charter, Assigned project

Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

Economic Models for Project Selection

Present Value (PV)

Net Present Value (NPV)

Internal Rate of Return (IRR)

Cost Benefit Analysis

The value today of future cash flows

Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

Net Present Value (NPV)

We wont calculate it for the exam and don't

Its the pure profit (income - cost)

Generally, if POSITIVE investment is good

Greatest NPV projects are usually selected

Qudratullah Hiwadpal, PMP, All Rights Reserved hiwadpal@barya.af

Internal Rate of Return (IRR)

The rate at which project inflows and outflows