Project Management Program

Project Integration Management Author Pankaj Sharma

Based on PMBOK Guide IV Edition
PMI, PMP, CAPM, PgMP, PMI-RMP, PMI-SP and PMBOK are registered marks of Project Management Institute, Inc.

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Learning Objectives
After the completion of this chapter, the learner will be able to:

List the various processes of Project Integration Management

Describe the process of Develop Project Charter Describe the process of Develop project plan

Describe the process of Direct And Manage Project Execution.

Describe the process of Monitor and Control Project Work Describe the process of Perform Integrated Change Control

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Describe the process of Close Project Or Phase Explain the various project selection methods
Explain the components of a project management plan

Project Integration Management: Topics

Project Integration Management Overview Develop a Project Charter

Project Selection Methods Define High Level Project Scope

Tailor the Processes Required By The Project

Develop Project Management Plan Creating the Project Deliverables

Directing and Manage Project Execution

Monitor and Control Project Work Close a Project Or Phase

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Project Integration Management: Define

Definition as per PMBOK Guide

Project Integration Management includes the processes and activities needed to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project management process Groups.

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Project Integration Management

Develop Project Charter

Develop Project Management Plan Direct and Manage Project Execution Monitor and Control Project Work

Perform Integrated Change Control Close Project or Phase

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Project Integration Management

Develop Project Charter

Develop Project Management Plan Direct and Manage Project Execution Monitor and Control Project Work

Initiating Planning Executing Monitoring and Controlling Closing

Perform Integrated Change Control Close Project or Phase

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Project Integration Management Overview

Select the project

Approve and commit to the project

Define the project plan and approach

Define the various components of the plan

Do the work as planned Monitor the project work Manage and control change requests

Accept the deliverables and close the project

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Topics: Project Integration Management

Develop Project Charter Develop Project Management Plan

Direct and Manage Project Execution

WHY we should do it? HOW we will do this?

Doing it

Monitor and Control Project Work

Perform Integrated Change Control Close Project or Phase

Is it going Well?
Is this request Worth doing? Have we Delivered everything?

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Develop Project Charter: Define

Definition as per PMBOK Guide

The process of developing a document that formally authorizes a project or a phase and documenting initial requirements that satisfy the stakeholder's needs and expectations.

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Develop Project Charter

Project Charter
The approved Project Charter formally initiates a project. The Project Manager should be preferably assigned during creation of the Project Charter. Project Charter gives the project manager authority to spend and commit corporate resources It provides high-level requirements for the project.

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Develop Project Charter

Inputs
Project statement of work Business case Contract Enterprise environmental factors Organization process assets

Outputs
Project Charter

Tools and Techniques

Expert Judgment

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Project Selection Methods

Non Numeric Method

Sacred cow

Operating necessity Murder Board Competitive necessity

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Project Selection Methods

Benefit Measurement Model (also called Comparative

approach )
Payback Period Cost Benefit Analysis Scoring Models Net Present Value (NPV) Internal Rate of Return (IRR)

Mathematical Models (also called Constrained Optimization)

Use linear, dynamic, non-linear, multi-objective programming to solve problem

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Project Selection Methods

Mathematical Models
Involves complex mathematical formulas to predict success rate Also called as Constrained Optimization Use linear, dynamic, non-linear, multi-objective programming to solve problem

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Project Selection Methods

Payback period the amount of time to recover your cost. It compares the initial investment to the cash inflows expected over the life of the product.
For example, Initial investment on a project is Rs. 4,00,000, Expected cash inflows: Rs. 50,000 per quarter for first two years, Rs. 100,000 per quarter thereafter. What is the payback period? Cash inflows = Rs. 50,000 x 4 (quarters in a year) = Rs. 2, 00,000 per year for first two years. Hence, year 1 inflow = Rs. 2, 00,000, year 2 inflow = Rs. 2, 00,000. Total Rs. 4, 00,000 in 2 years So payback is reached in 2 years.

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Project Selection Methods

Benefit Cost Ratio (BCR) or profitability Index . This is the ratio of project benefit and the project cost.
BCR = Revenue / Cost

Select the project with a higher BCR

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Project Selection Methods

Present Value (PV) is the expected future cash flows expressed in todays monetary value PV = FV / (1+r) n
For example, Calculate the Present Value of $ 100,000 received three years from now. The interest rate is 10 percent.

PV = 100000 / (1+10/100)3 = $ 75,131

Net Present value (NPV) is the sum total of the Present Value of Cash Inflows Cash Outflows

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Project Selection Methods

Internal Rate of Return (IRR): The rate of interest at which the revenues and costs are equal. Select the project with a higher IRR. Return On Investment (ROI) A return ratio that compares the net benefits of a project/ product, verses its total cost. ROI = Operating Income / Investments

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Project Selection Methods

Net Present value (NPV) is the sum total of the Present Value of Cash Inflows Cash Outflows
TIME PERIOD 0 1 2 3 INCOME/REVENUE 0 50 100 300 PRESENT VALUE AT 10% INT RATE 0 45 83 225 COSTS 200 100 0 0 PRESENT VALUE AT 10% INT RATE 200 91 0 0

TOTAL

353

291

NPV of the Project is 353-291 = 62

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Exercise 1: Which Project Will You Select

Method Project A Project B Which One?

Scoring Model
Payback Period Benefit Cost Ratio

17
24 Months 3.5

20
25 months 4.5

B
A B

Net Present Value (NPV)

IRR

95,000
9.5%

80,000
11.5%

A
B

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Develop Project Management Plan : Define

Definition as per PMBOK Guide

Develop Project Management Plan is the process of documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans.

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Develop Project Management Plan

Inputs
Project charter Outputs from planning processes Enterprise environmental factors Organizational process assets

Outputs
Project management plan

Tools and Techniques

Expert Judgment

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Components of Project Management Plan

Requirements Management plan Project scope management plan Schedule management plan Cost management plan Quality management plan Process improvement plan Staffing management plan Communication management plan Risk management plan Procurement management plan

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Direct & Manage Project Execution: Define

Definition as per PMBOK Guide

Direct and manage Project Execution is the process of performing the work defined in the project management plan to achieve the project's objectives.

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Direct & Manage Project Execution

Inputs
Project management plan Approved change requests Enterprise environmental factors Organizational process assets

Outputs
Deliverables Work performance information Change requests Project management plan updates Project document updates

Tools and Techniques

Expert judgment Project management information system

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Monitor & Control Project Work: Define

Definition as per PMBOK Guide

Monitor and Control project Work is the process of tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project management plan.

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Monitor & Control Project Work

Inputs
Project management plan Performance reports Enterprise environmental factors Organizational process assets

Outputs
Change requests Project management plan updates Project documented updates

Tools and Techniques

Expert judgment

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Perform Integrated Change Control: Define

Definition as per PMBOK Guide

Perform Integrated Change Control is the process of reviewing all change requests, approving changes and managing changes to the deliverables, organizational assets, project documents, and the project management plan.

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Perform Integrated Change Control

Change Control Systems

Every documented change request must be either approved or rejected by an authorized person. Some changes require approval by the Change Control Board (CCB).

Any approved changes may required adjusting the scope, time, and resource requirements

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Perform Integrated Change Control

Configuration Management
Configuration management system provides a standardized, effective, and efficient way to centrally manage approved changes and baselines within the project.

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Perform Integrated Change Control

Inputs
Project management plan Work performance information Change requests Enterprise environmental factors Organizational process assets

Outputs
Change request status updates Project management plan updates Project document updates

Tools and Techniques

Expert judgment Change control meetings

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Close Project or Phase

Definition as per PMBOK Guide

Close Project or Phase is the process of finalizing all activities across all of the project Management Process Groups to formally complete the project or phase.

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Close Project or Phase

Inputs
Project management plan Accepted deliverables Organizational process assets

Outputs
Final product, service or results transition Organizational process assets update

Tools and Techniques

Expert judgment

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Exercise 2: Integration Management

Revising Key Terms

1. The project management plan is the collection of ______ Plans 2. Work Culture and company policies are called Enterprise__________ Factors 3. ___________ is a document that gives the project manager authority over the team

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Answer to Exercise 2: Integration Management

Revising Key Terms

1. The project management plan is the collection of Subsidiary Plans 2. Work Culture and company policies are called Enterprise Environmental Factors 3. Project Charter is a document that gives the project manager authority over the team

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Project Integration Management

Assessment Examination

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Project Integration Management

QUERIES & CLARIFICATIONS

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Project Integration Management

Next Session Project Scope Management

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