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Project Integration Management

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Project Integration Management

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 Charterthe process of developing a document that formally
authorizes a project or a phase and documenting initial requirements that satisfy the
stakeholders needs and expectations.

Develop Project Management Planthe process of documenting the actions

necessary to define, prepare, integrate, and coordinate all subsidiary plans.

Direct and Manage Project Workthe process of performing the work defined in the
project management plan to achieve the projects objectives.

Monitor and Control Project Workthe process of tracking, reviewing, and

regulating the progress to meet the performance objectives defined in the project
management plan.

Perform Integrated Change Controlthe process of reviewing all change requests,

approving changes, and managing changes to the deliverables, organizational process
assets, project documents, and the project management plan.

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

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Develop Project Charter

Inputs Tools and Techniques Outputs

Project statement of work Expert Judgment Project Charter

Business case Facilitation Techniques

Agreements

Enterprise environmental
factors

Organizational Process
Assets

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Project Charter

Project Title and Description

Measurable project objectives and related success criteria,
High-level requirements
Assumptions and Constraints
High level project descriptions and boundaries
High Level Risks
Summary milestone schedule
Summary budget
Stakeholder list
Project Approval Requirements( i.e. What constitutes the project
success, who decide that the project is successful, and who signs off
the project)
Project Manager Assigned and Authority Level (Who is given authority
to lead the project, and can he / she determine, manage and approve
changes to budget, schedule, staffing, etc.?)
Name and Authority of the sponsor or other persons authorizing the
project charter.

.
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Project Selection Methods

Numeric 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

Non Numeric Method

Sacred cow
Operating necessity
Murder Board
Competitive necessity

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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

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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 INCOME/REVENUE PRESENT VALUE AT COSTS PRESENT VALUE AT

10% INT RATE 10% INT RATE

0 0 0 200 200
1 50 45 100 91
2 100 83 0 0
3 300 225 0 0
TOTAL 353 291

NPV of the Project is 353-291 = 62

Select the project with higher NPV

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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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Scoring Model Weighted Criteria (example, using

scale of 1-5)

Item
Weight Project A Project B Project C

Criteria
4 5 3

Good ROI 3 12 15 9 0 0

2 3 5

CEO Likes It 5 10 15 25 0 0

5 4 2
Provide
Better 4 20 16 8 0 0
Service

4 4 5
Match New
Initiatives of 3 12 12 15 0 0
Competition

Our Winner!!
0 0 0 0 0
(hmmmm)

Total: 54 Total: 58 Total: 57 Total: 0 Total: 0

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Sacred Cows and Pressing Needs

Sacred Cow selectionSenior Management wants it!

(it may often turn out well; many visionary projects
start here)
Business opportunity (make more $$$)
Savings potential (save $$$)
Keeping up with competition (example, many e-
commerce projects were in response to competitors
initiatives)
Risk management (examples: disaster recovery
initiatives, Y2K)
Government or regulatory requirements
URGENT!
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Murder Board

Murder Board" is a term often used for the team created to see if
they can push hard on a project plan to see where it will break.

This process is called by other names as well, depending on the

subject of the scrutiny and type of firm in which it is employed. For
a hard review of a proposal, it is usually called a "red team." Some
consulting firms call final briefing reviews "gauntlet drills."

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Exercise 1: Which Project Will You Select

Method Project A Project B Which One?

Scoring Model 17 20 B

Payback Period 24 Months 25 months A

Benefit Cost Ratio 3.5 4.5 B

Net Present Value 95,000 80,000 A

(NPV)

IRR 9.5% 11.5% B

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Project Management Plan

The project management plan defines how the

project is executed, monitored and controlled, and
closed. The project management plan content will
vary depending upon the application area and
complexity of the project.

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Develop Project Management Plan

Inputs Tools and Techniques Outputs

Project Charter Expert Judgment Project
Management Plan
Outputs from other Facilitation techniques
Process

Enterprise
environmental factor

Organizational
Process Assets

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Components of Project Management Plan

Requirements Management Plan
Scope management plan
Schedule management plan
Cost management plan
Quality management plan
Process improvement plan
Human Resource management plan
Communication management plan
Risk management plan
Procurement management plan
Stakeholder management plan
Project baselines (include but not limited to scope, schedule and
cost baselines)

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Components of Project Management Plan

The project management plan may also include the following.
Life cycle selected for the project and the processes that will be
applied to each phase
Details of the tailoring decisions specified by the project
management team as follows
Project management processes selected by the project management team
Level of implementation for each selected process
Description of the tools and techniques to be used for accomplishing those
processes and
Description of how the selected processes will be used to manage the specific
project, including the dependencies and interactions among those processes and
the essential inputs and outputs.
Description of how work will be executed to accomplish the
project objectives
Change management plan that documents how the changes will
be monitored and controlled
Configuration management plan that documents how the
configuration management will be performed

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Components of Project Management Plan

Description of how the integrity of the project baselines will be

maintained

Requirements and techniques for communicating among

stakeholders

Key management reviews for the content, the extent of, and
timing to address, open issues and pending decisions

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Direct and Manage Project Work

Direct and Manage Project Work is the process of performing

the work defined in the project management plan and
implementing approved changes to achieve the projects
objectives.

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Activities in Direct and Manage Project Work

The activities include, but are not limited to:

Perform activities to accomplish project requirements;

Create project deliverables

Staff, train, and manage the team members assigned to the project

Obtain, manage, and use resources including materials, tools,

equipment, and facilities

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Activities in Direct and Manage Project Work

The activities include, but are not limited to:

Establish and manage project communication channels, both external

and internal to the project team

Generate project data, such as cost, schedule, technical and quality

progress, and status to facilitate forecasting

Issue change requests and adapt approved changes into the projects
scope, plans, and environment

Manage risks and implement risk response activities

Collect and document lessons learned, and implement approved process

improvement activities

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Direct and Manage Project Work-

Inputs Tools and Techniques Outputs

Project Management Expert Judgment Deliverables
Plan
Project Management Work Performance
Approved Change Information System Data
Requests
Meetings Change Requests
Enterprise
environmental factor Project
Management Plan
Organizational Process updates
Assets
Project Document
Updates

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Monitor and Control Project Work

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.

Continuous monitoring gives the project management team

insight into the health of the project, and identifies any
areas that may require special attention. Control includes
determining corrective or preventive actions or re-planning
and following up on action plans to determine if the actions
taken resolved the performance issue.

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Monitoring and Control Project Work

Inputs Tools and Techniques Outputs

Project Management Plan Expert Judgment Change requests

Schedule Forecasts Analytical techniques Work Performance

Reports
Cost Forecasts Project Management
Information Systems Project management
Validated Changes plan updates
Meetings
Work Performance Project document
Information updates

Enterprise environmental
factors

Organizational Process
Assets

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Perform Integrated Change Control

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

The Perform Integrated Change Control process is conducted

from project inception through completion. The project
management plan, the project scope statement, and other
deliverables are maintained by carefully and continuously
managing changes, either by rejecting changes or by
approving changes thereby assuring that only approved
changes are incorporated into a revised baseline.

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Perform Integrated Change Control

Inputs Tools and Techniques Outputs

Project management Plan Expert judgment Approved change

requests
Work performance Meetings
reports Change log
Change control tools
Change requests Project management
plan updates
Enterprise environmental
factors Project documents
updates
Organizational process
assets

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Close Project or Phase

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.

When closing the project, the project manager will review

all prior information from the previous phase closures to
ensure that all project work is complete and that the
project has met its objectives.

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Close Project or Phase

Inputs Tools and Techniques Outputs

Project Management Plan Expert Judgment Final product, service,

or result transition
Accepted Deliverables Analytical techniques
Organizational process
Organizational Process Meetings assets updates
Assets

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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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QUIZ !

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