Chapter 4 – Knowledge area 1

Project Integration Management

Project Integration Management Processes:

Develop Project Charter

Develop the project management plan Direct

and manage project execution

Monitor and Control Project Work.

Perform Integrated Change Control Close
project/phase
Project Selection Methods

There are generally two categories of selection methods:

Benefit Measurement Methods (Comparative approach).

Constrained Optimization Methods (Mathematical models).
Benefit Measurement Method

Murder Board – A panel of people who try to shoot down

a new project idea.

Peer Review

EconomicModels

Present Value
Net Present Value
Internal Rate of
Return Payback
Period Benefit Cost
Net Present Value

Net present value (NPV) analysis is a method

of calculating the expected net monetary gain or loss from
a project by discounting all expected future cash
inflows and outflows to the present point in time.

Note:
Projects with a positive NPV should be considered if financial value is
a key criterion.

The higher the NPV, the better.

Internal Rate of Return

The internal rate of return (IRR) is the most

difficult

equation to calculate of all the cash flow techniques.

It is a complicated formula and should be performed on a

financial calculator or computer.

Technically speaking, IRR is the discount rate when the

present value of the cash inflows equals the original
investment.
Payback Period

The payback analysis/payback period is another

important financial consideration.

The payback period is the amount of time (number

of time periods) it will take to recoup your investment in
the project before you start accumulating profit.

Many organizations want IT projects to have a fairly short

payback period.
 Project Selection – Economic Models
Method MAIN POINT

Present value (PV): value today of future cash flows

Net present greater NPV value is better

value (NPV):

Internal rate of return greater IRR value is better

(IRR):

Payback Period time periods it takes to recoup your

investment SHORTER Payback Period THE
BETTER
Benefit-cost ratio ABOVE 1; greater benefit-cost ratio value isAhmed Al-Allo, PMP
better.
Project Selection – Key Terms

Opportunity Cost: the opportunity given up by selecting

one project over another.

Sunk Costs: Are expended costs, shouldnot be

considered when deciding whether to continue a
troubled project. with

Law of Diminishing Returns: after a point,

certain will notproduce a
adding more input/resource
proportional increase in productivity.
Develop Project Charter

Projects are authorized by someone external to the

project such as sponsor, initiator, portfolio steering
committee.

The project charter can be created by them or

delegated to Project Manager.
Why have a Project Charter

It formally recognizes (authorize) the existence of the

project, without it a project does not
exist.

It gives the project manager authority to spend

money and commit corporate resources.

It provides high level requirements for the project.

The project charter is broad enough so it does not
need to change as the project changes.
 Develop Project Charter

The 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 project activities.
Inputs Tools & Techniques Outputs

1.Project statement of work 1.Expert judgment 1.Project charter

2.Business case 2.Facilitation techniques

3.Agreements
4.Enterprise environmental factors

5.Organizational process assets

 Develop Project Management Plan

The process of defining, preparing, and coordinating all subsidiary

plans
and integrating them into a comprehensive project management plan.
Inputs Tools & Techniques Outputs

1.Project charter 1.Expert judgment 1.Project management plan

2.Outputs from planning

processes
3.Enterprise environmental factors

4.Organizational process assets

Project Baseline

Project baseline refers to the original version of the

management plan is base-lined, it may only be changed

by raising a change request.
project management plan. Once the project
Performance measurement baseline

The project management plan contains scope, schedule,

and cost baselines, against which the project manager will
need to report project performance.
Baseline created during planning.
✔ Scope baseline
The project scope statement, work breakdown structure (WBS), and
WBS dictionary.

✔ Schedule baseline
The agreed-upon schedule, including the start and stop times.

✔ Cost baseline
The time-phased cost budget.
Terms

Progressive Elaboration – involves the process of

taking a project from concept to detailed
design.
Kick-off meeting – happens after the planning phase
and before the project execution. It is typically used to
communicate responsibilities of key stakeholders.
 Direct & Manage Project Work

The process of leading and performing the work defined in the project
management plan and implementing approved changes to achieve
the project’s objectives.
Inputs Tools & Techniques Outputs

1.Project management plan 1.Expert judgment 1.Deliverables

2.Approved change requests 2.Project management 2.Work performance data

information system
3.Enterprise environmental factors 3.Meetings 3.Change requests

4.Organizational process assets 4.Project management plan

updates
5.Project documents update
Project Execution: Tools & Techniques

Project Management Information systems (PMIS):

is a system that keeps track of status of all the project tasks.
It is used to track the status of the project.
Change requests

Corrective actions
Preventive
actions. Defect
repair Updates
 Monitor & Control Project Work
The process of tracking, reviewing and reporting project progress
against the performance objectives defined in the project management
plan.
Inputs Tools & Techniques Outputs
1.Project management plan 1.Expert judgment 1.Change requests

2.Schedule forecasts 2.Analytical techniques 2.Work performance reports

3.Cost forecasts 3.Project management 3.Project management plan

information system updates

4.Validated changes 4.Meetings 4.Project documents updates

5.Work performance information

6.Enterprise environmental factors

7.Orgaizational process assets

 Perform Integrated Change Control

The process of reviewing all change requests, approving changes,

and managing changes to the deliverables, organizational process assets,
project documents and the project management plan; and communicating
their disposition.
Inputs Tools & Techniques Outputs

1.Project management plan 1.Expert judgment 1.Approved change requests

2.Work performance reports 2.Meetings 2.Change log

3.Change requests 3.Change control tools 3.Project management plan

updates
4.Enterprise environmental factors 4.Project documents updates

5.Organizational process assets

Change Control Board

A formal group of people responsible for approving or

rejecting changes on a project.
CCBs include stakeholders from the entire organization

After the project scope has been baselined, each

requested change must go through a change control

review process.
Change Management Plan

Describes how changes will be managed and controlled.

Covers the project as whole.
May include:
Change control procedures (how and who)
The approval levels for authorizing changes
The creation of a change control board to approve changes. A
plan outlining how changes will be managed and controlled. Who
should attend meetings regarding changes.

Tools to use to track and control changes

Close Project or Phase

Projects come to an end for several reasons: They’re

completed successfully.

They’re canceled or killed prior to completion.

They evolve into ongoing operations and no longer as projects. exist

There are four formal types need to of project endings you might
know for the exam:

1. Addition - evolve to operation

2. Starvation – No resources

3. Integration assigned to another

project
4. Extinction completed and accepted
 Close Project

The processof finalizing all activities across all of the

Project
Management Process Groups to formally complete the phase or project.

Inputs Tools & Techniques Outputs

1.Project management plan 1.Expert judgment 1.Final product, service, or

result transition
2.Accepted deliverables 2.Analytical techniques 2.Organizational process
assets updates
3.Organizational process 3.Meetings
assets
Lessons Learned

At the end of each phase of a project, a lessons

learned document must be prepared.
The lessons learned document defines what was done right,
wrong etc.
It is required to be completed in order for the
project to be
completed.

Also called “Post – Mortem”

Project Management Documents

https://www.projectmanagementdocs.com/