Project Integration Management

Based on PMBOK® Guide – Fifth Edition

PMBOK is a registered mark of the Project Management Institute, Inc.

Project Integration Management 1 © Simplilearn Solutions

 Agenda

 What is project integration management

 The key role of the project manager, project team, and project sponsor
 Project selection methods
 The integration management knowledge area
o Develop project charter
o Develop project management plan
o Direct and manage project work
o Monitor and control project work
o Perform integrated change control
o Close project or phase

Project Integration Management 2 © Simplilearn Solutions

 What is Project Integration Management

 Project integration management involves unification, consolidation,

articulation, and integrative actions that are crucial for successfully
completing the project.

 Project integration management is high-level work that involves the project

manager managing interdependencies among the other knowledge areas.

Project Integration Management 3 © Simplilearn Solutions

 The Key Role of the Project Manager, Team,
and Sponsor

 The key role of the project manager is to perform integration.

 The key role of the project team is to concentrate on completing the

project activities.

 The key role of the project sponsor is to protect the project team from
unnecessary changes and loss of resources.

Project Integration Management 4 © Simplilearn Solutions

 Project Selection Methods

Why a new project?

 Contract
 Business Case

Benefit measurement methods: This is a comparative approach

 Murder board – A panel of experts who try to shoot down a new project
idea
 Peer review
 Scoring models
 Economic models
 Benefit compared to cost

Constrained optimization methods: This is a mathematical approach

 Linear programming

Project Integration Management 5 © Simplilearn Solutions

 Project Selection Methods (Contd.)

Present Value: Value today of future cash

 Present value
 Net present value
 Internal rate of return
 Payback period
 Benefit cost ratio
 Return on investment
flows.
 Example: A sum of $250 being paid right
now will be more valuable than $250
being paid 3 years from now. Farther the
timing of the cash flow (future value),
lower is the “present value”.

Net Present Value (NPV): Present value of the total benefits (income or revenue) less the
costs over time period.

Q: You have two projects to choose from. Project X will take 2 years to complete and has
an NPV of $35,000. Project Y will take 5 years to complete and has an NPV of $95,000.
Which one will you take up?

A: The answer is project Y, because it has a higher NPV. Don’t get confused with the
longer duration of the project. What is important is that the NPV should be greater.

Project Integration Management 6 © Simplilearn Solutions

 Project Selection Methods (Contd.)

 Internal Rate of Return (IRR): IRR is the rate of discounting (used to reduce
future cash flows to their present value) at which the present value of costs
match the present value of benefits. In other words, it is the rate of return
internal to the project.

Example: If you have to choose between project A with an IRR of 25% or project
B with an IRR of 15%, the answer is project A. The IRR for project A is greater
than the one for project B.

 Payback Period: The number of time periods it takes to recover your

investment in the project before your start accumulating profits.

Example: You have two projects to choose from. Project A with a payback period
of 5 months or project B with a payback period of 12 months. Which one would
you go for?
The answer is project A.

Project Integration Management 7 © Simplilearn Solutions

 Project Selection Methods (Contd.)

 Benefit Cost Ratio: The benefit cost ratio (BCR) compares the present value of
benefits to the present value of costs. A benefit cost ratio of more than 1 means that
the benefits are greater than the costs.
Example: If the benefit cost ratio of project A is 2.5 and benefit cost ratio of
project B is 1.5, which project would you select?
The answer is project A – as the benefit cost ratio is higher for project A.

 Return on Investment (RoI): RoI is the rate of return on the project normalized by
the initial investment.
Example: if a project involves an initial investment of $100,000 and on average it results
in benefits of $20,000 per year, the RoI is 20,000/100,000 or 20%.

 Opportunity Cost: Opportunity cost is the cost related to the next best choice
available to someone who has picked among several mutually exclusive choices. It is
therefore the opportunity given up by selecting one project over another.
Example: You have two projects to choose from. Project A with an NPV of $55,000 and
project B with an NPV of $85,000. What is the opportunity cost of selecting project B?
The answer is $55,000. This is the NPV of project A, which we selected over project B.

Project Integration Management 8 © Simplilearn Solutions

 Project Integration Management Processes

Sl. No. Project Integration Management Done During

Process
1 Develop Project Charter
2 Develop Project Management Plan
3 Direct and Manage Project Work
4 Monitor & Control Project Work
5 Perform Integrated Change Control
6 Close Project or Phase
Initiating Process Group
Planning Process Group
Execution Process Group
Monitoring & Controlling
Process Group
Monitoring & Controlling
Process Group
Closing Process Group

Project Integration Management 9 © Simplilearn Solutions

 Develop Project Charter

 Develop project charter is a process of developing a document that formally

authorizes the existence of a project and provides the project manager with
the authority to apply organizational resources to the project activities. It
belongs to the initiating process group.

Inputs Tools and Techniques

 Project statement of work  Expert judgment
 Business case  Facilitation techniques
 Agreements
 Enterprise environmental factors
 Organizational process assets

Outputs
 Project charter

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth
edition, Project Management Institute, Inc., 2013, Page 66

Project Integration Management 10 © Simplilearn Solutions

 Develop Project Management Plan

 Develop project management plan is the process of defining, preparing,

integrating, and coordinating all subsidiary plans and integrating them into a
comprehensive project management plan. It belongs to the planning process
group.

Inputs Tools and Techniques

 Project charter  Expert judgment
 Outputs from other processes  Facilitation techniques
 Enterprise environmental factors
 Organizational process assets

Outputs
 Project management plan

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth
edition, Project Management Institute, Inc., 2013, Page 72

Project Integration Management 11 © Simplilearn Solutions

 Few New Terms

 Work Authorization System

• *“A subsystem of the overall project management system; a collection of formal documented
procedures that defines how project work will be authorized…”

 Corrective Action
• *“An intentional activity that realigns the performance of the project work with the project
management plan.”

 Preventive Action
• *“An intentional activity that ensures the future performance of the project work is aligned with
the project management plan.”

 Change Control System

• “A set of procedures that describes how modifications to the project deliverables and
documentation are managed and controlled.”

 Configuration Management System

• “A set of procedures used to apply technical and administrative direction and surveillance to
identify and document the functional and physical characteristics of a product, service or result, or
component.”

*Definitions taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body
of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc., 2013.

Project Integration Management 12 © Simplilearn Solutions

 Direct and Manage Project Work

 Direct and manage project work is the process of leading and performing the
work defined in the project management plan to achieve the project
objectives. It belongs to the executing process group.

Inputs Tools and Techniques

 Project management plan  Expert judgment
 Approved change requests  Project management information system
 Enterprise environmental factors  Meetings
 Organizational process assets

Outputs
 Deliverables
 Work performance data
 Change requests
 Project management plan updates
 Project documents updates

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth
edition, Project Management Institute, Inc., 2013, Page 79
Project Integration Management 13 © Simplilearn Solutions
 Monitor and Control Project Work

 Monitor and control project work is the process of tracking, reviewing, and
regulating the progress to meet the performance objective(s) defined in the
project management plan. It belongs to the monitoring and controlling
process group

Inputs Tools and Techniques

 Project management plan  Expert judgment
 Work performance information  Analytical techniques
 Schedule forecasts  Project management information
 Cost forecasts system
 Validated changes  Meetings
 Enterprise environmental factors
 Organizational process assets Outputs
 Change requests
 Work performance reports
 Project management plan updates
 Project documents updates
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth
edition, Project Management Institute, Inc., 2013, Page 86
Project Integration Management 14 © Simplilearn Solutions
 Perform Integrated Change Control

 Perform integrated change control is the process of reviewing all change

requests, approving and managing changes to the project deliverables,
organizational process assets, project documents, and the project
management plan. It belongs to the monitoring and controlling process
group.

Inputs Tools and Techniques

 Project management plan  Expert judgment
 Work performance reports  Meetings
 Change requests  Change control tools
 Enterprise environmental factors
 Organizational process assets Outputs
 Approved change requests
 Change log
 Project management plan updates
 Project documents updates
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth
edition, Project Management Institute, Inc., 2013, Page 94
Project Integration Management 15 © Simplilearn Solutions
 Change Management Process

Determine that
Evaluate the
a change is Come up with
impact of
“necessary” or alternatives
change
has occurred

Discuss Discuss
externally internally

Project Integration Management 16 © Simplilearn Solutions

 Close Project or Phase

 Close project or phase is the process of finalizing all activities across all the
project management process groups to formally complete the project or
phase. It belongs to the closing process groups

Inputs Tools and Techniques

 Project management plan  Expert judgment
 Accepted deliverables  Analytical techniques
 Organizational process assets  Meetings

Outputs
 Final product, service, or result
transition
 Organizational process assets updates

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth
edition, Project Management Institute, Inc., 2013, Page 100

Project Integration Management 17 © Simplilearn Solutions

 Summary

Topics discussed so far:

 Integration is the act of bringing all the elements of a project together
 A project sponsor is the one who provides the resources and champions a
project within an organization
 Various methods to select the projects
 Six integration management processes

Project Integration Management 18 © Simplilearn Solutions

 Quiz – 1

1. With respect to change, what is most important for a project manager to

focus attention on?
A. Do the change
B. Track and record the change
C. Prevent uncontrolled change
D. Inform project sponsor of the change

Project Integration Management 19 © Simplilearn Solutions

 Quiz – 1

1. With respect to change, what is most important for a project manager to

focus attention on?
A. Do the change
B. Track and record the change
C. Prevent uncontrolled change
D. Inform project sponsor of the change

Answer 1: The correct answer is C. It is the responsibility of the project

manager to proactively manage the project. This includes preventing
unnecessary changes from occurring. The changes are actually done by the
project team.

Project Integration Management 20 © Simplilearn Solutions

 Quiz – 2

2. In the middle of a project, you are informed that resources promised at the
beginning of the project are no longer available. As a project manager what
would you do?
A. Raise a concern that you can no longer execute this project
B. Evaluate the impact of not having the promised resources
C. Move forward without the promised resources
D. Identify other resources that can be provided to you in lieu of the
earlier promised resources

Project Integration Management 21 © Simplilearn Solutions

 Quiz – 2

2. In the middle of a project, you are informed that resources promised at the
beginning of the project are no longer available. As a project manager what
would you do?
A. Raise a concern that you can no longer execute this project
B. Evaluate the impact of not having the promised resources
C. Move forward without the promised resources
D. Identify other resources that can be provided to you in lieu of the
earlier promised resources

Answer 2: Now this is a tricky question. You might consider doing all of the
mentioned options, but the first thing to do in such cases is to evaluate the
impact. The correct answer is B.

Project Integration Management 22 © Simplilearn Solutions

 Quiz – 3

3. A customer is well known for requesting numerous changes on projects.

You have been assigned as the project manager for a new project from this
customer. What would you do in the beginning of the project to manage this
customer?
A. Check who the customer’s manager is and inform him/her about the
customer’s past record
B. Involve the customer as early in the project as possible
C. Be firm and say no to the customer a couple of times
D. Send the customer a copy of your company change control procedure

Project Integration Management 23 © Simplilearn Solutions

 Quiz – 3

3. A customer is well known for requesting numerous changes on projects.

You have been assigned as the project manager for a new project from this
customer. What would you do in the beginning of the project to manage this
customer?
A. Check who the customer’s manager is and inform him/her about the
customer’s past record
B. Involve the customer as early in the project as possible
C. Be firm and say no to the customer a couple of times
D. Send the customer a copy of your company change control procedure

Answer 3: This one is another tricky question. In real life you might consider
doing all the options listed, but the best way to handle such a scenario is to
involve the customer as early in the project as possible. The right answer
therefore is B.

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 Quiz – 4

4. Who performs project integration?

A. Project Sponsor
B. Project Manager
C. Project Team
D. Customer

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 Quiz – 4

4. Who performs project integration?

A. Project Sponsor
B. Project Manager
C. Project Team
D. Customer

Answer 4: The right answer is B. The project manager’s primary role is to

integrate the various activities and processes in the project to help fulfill the
project’s requirements.

Project Integration Management 26 © Simplilearn Solutions

 Quiz – 5

5. As a project manager you received a change request that does not impact
the project schedule. What would you do?
A. Go ahead and do the change
B. Evaluate the impact on the other project constraints
C. Get in touch with the change control board
D. Ask your boss’s permission

Project Integration Management 27 © Simplilearn Solutions

 Quiz – 5

5. As a project manager you received a change request that does not impact
the project schedule. What would you do?
A. Go ahead and do the change
B. Evaluate the impact on the other project constraints
C. Get in touch with the change control board
D. Ask your boss’s permission

Answer 5: The correct answer is B. Whenever there is a change request, you

should look at the impact on all of the project constraints (not just the
schedule).

Project Integration Management 28 © Simplilearn Solutions

 Quiz – 6

6. You have been assigned as the project manager of a project that is half way
through execution. You meet the customer and inform him that project is
within the baselines, but the customer informs you that he is not happy
with the performance of the project. What should you do first?
A. Meet with the project team to understand the customer’s concerns
B. Meet with the project sponsor and discuss the customer’s concerns
C. Inform the customer that there is nothing wrong from the project
team’s side
D. Show the customer the performance of similar other projects

Project Integration Management 29 © Simplilearn Solutions

 Quiz – 6

6. You have been assigned as the project manager of a project that is half way
through execution. You meet the customer and inform him that project is
within the baselines, but the customer informs you that he is not happy
with the performance of the project. What should you do first?
A. Meet with the project team to understand the customer’s concerns
B. Meet with the project sponsor and discuss the customer’s concerns
C. Inform the customer that there is nothing wrong from the project
team’s side
D. Show the customer the performance of similar other projects

Answer 6: The answer depends upon the scenario. If you heard that a customer
was unhappy from someone else, the best thing would be to meet the
customer. In this case, customer is directly informing you that he is not happy.
So the best option is to meet the project team and discuss the customer’s
concerns, before doing any thing else. The right answer therefore is A.

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 Thank You

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