Project Integration Management

Project Integration Management
PROJECT MANAGEMENT 2011 Chapter 2 Project Integration Management 1

What is Project integration Management
Project Integration Management is usually the most important Project Management Knowledge Area, since it ties together all the other areas of Project Management. Project Integration Management Knowledge Area describes the processes and methods required to identify, define, combine, unify, and coordinate the various processes with all of the other eight knowledge areas (from the project management body of knowledge A Project Manager`s primary focus should be on Project Integration Management

Project INTEGRATION Management

Project Integration Management involves all of the other Project Management Knowledge Areas throughout a Project`s Lifecycle. Project Integration Management ensures that all the elements of a project come together at the right times to complete a project successfully. According to PMBOK Guide there are six main processes involved in Project Integration Management: Developing the Project Charter Developing the Project Management Plan Directing and Managing Project Execution Monitoring and Controlling Project Performing Integrated Change Control Closing the Project or Project Phases involved

Developing the Project Charter Involves working with stakeholders to create the document that formally authorize a project i.e. The charter. 2. Developing the Project Management Plan Involves coordinating all planning efforts to create a consistent, coherent document – The Project Management Plan. 3. Directing and Managing Project Execution Involves carrying out the Project Management Plan by performing the activities included in it. The outputs of this process are: Deliverables, Work Performance Information , Change Request, Project Management Plan updates, Project Document updates.

4. Monitoring and Controlling Project Involves overseeing activities to meet the performance objectives of the project. The outputs of this process are : Change Request Project Plan update Project document updates 5. Performing Integrated Change control Involves identifying, evaluating, and managing changes throughout the project life cycle, The outputs are: Change request status update Project plan updates

Closing the Project or Phase Involves finalizing all activities to formally close the project or phase Outputs are: Final product Service or result transition Organizational processes assets updates

Project Integration Management is considered to be the key to overall project success. Someone must: Take responsibility for coordinating people, plans, and work required to complete a project. Focus on the big picture of the project and steer the project team toward successful completion. Take the final decision when there are conflicts among project goals or people. Communicate the key project information to top management. This someone is the `Project Manager`.

Project Integration Management includes Interface Management. Interface Management involves identifying and managing the points of interaction between various elements of the project. The number of interfaces can increase exponentially as the number of people involved in a project increases. Project Manager must communicate well with all project Stakeholders, including customers, the project team members, top management, other project managers, and project opponents . Top Management likewise, must keep Project managers informed of major issues that could affect their projects and strive to make processes consistent throughout their organization.

Strategic Planning and project SElection
Successful organizations involves their Project Managers in Strategic Planning and Project Selection, since project managers can provide valuable insight into the project selection . Strategic Planning provides important information to help organizations identify and then select potential projects. Strategic Planning Determines long-term objectives by analyzing the Strengths and Weaknesses of an organization, studying Opportunities and Threats in the business environment; predicting future trends, and projecting the need for new products and services.

SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) helps identify potential projects. Mind Mapping is used by some people to perform SWOT Analysis. Mind Mapping Is a technique that uses branches radiating out from a core idea to structure thoughts and ideas . Mind Mapping can be created by hand or using software such as Presentation Software or Mind Mapping Software.

Identifying Potential Projects The first step in Project Management is deciding what projects to do in the first place. Therefore, Project Initiation starts with identifying potential projects, using realistic methods to select which projects to work on, and then formalizing their initiation by issuing some sort of Project Charter. In addition to SWOT Analysis, organizations often follow a detailed process called A Four-stage Planning Process for selecting IT Projects.

Information Technology Planning Stages The Hierarchical Structure Model 1 IT Strategy Planning 2 Business Area Analysis 3 Project Planning 4 Resource Allocation

Methods For project SElection
The Hierarchical Structure Model and the Results Produced The first step is to tie the IT strategic plan to the organization's overall Strategic Plan. After identifying strategic goals, the next step in the Planning process for selecting IT Projects is to perform a Business Area Analysis. The next step is to start defining potential IT Projects, their Scope, Benefits, and Constraints. Last step is choosing which projects to do and assigning resources for working on them. 14 14

Methods for project SElection
Methods for Selecting Projects Organizations identify many potential projects as part of their Strategic Planning process and often rely on the Project Managers to help them make project selection decisions. Organizations however need to narrow down the list of potential projects to those to those projects that will be most benefits. Selection project is not an exact science but it part of Project management. 15 15

Methods for Selecting Projects Five common techniques for Project Selection. Focusing on broad organizational needs Categorizing Projects Performing Net Present Value or other Financial Analyses Using weighted Scoring model Implementing a Balanced Scorecard In practise organizations usually use a combination of these approaches to select projects. Each approach has its own advantages and disadvantages and is up to the project manager to decide the best approach for selecting the projects. 16 16

Focusing on broad organizational needs Top managers must focus on meeting their organization's many needs when deciding what projects to undertake, when to undertake them, and so what level. Projects that address broad organizational needs are much more likely to be successful because they will be important to organization. 17 17

Focusing on broad organizational needs (Continued) One method for selecting projects based on broad organizational needs is to determine whether they first meet three important criteria: a) Need b) Funding c) Will Do people in the organization agree that the project needs to be done? Does the organization has the desire and the capacity to provide adequate funds to perform the project? Is there a strong will to make the project succeed? 18 18

Focusing on broad organizational needs (Continued) One method for selecting projects based on broad organizational needs is to determine whether they first meet three important criteria: a) Need b) Funding c) Will Do people in the organization agree that the project needs to be done? Does the organization has the desire and the capacity to provide adequate funds to perform the project? Is there a strong will to make the project succeed? As project progress, the organization must reevaluate the need, Funding and Will to determine if the project should be continued, refined or terminated. 19

Categorizing Projects Projects can be categorized according to: Impetus for the project The Time Window for the project General priority of the project 1. The Impetus for a project is often to respond to: a) Problem b) Opportunity c) Directive 20 20

Categorizing Projects (Continued) Problems: Problems can be current or anticipated companies initiate a project to eliminate the problem. Opportunities: Are chances to improve the organization. Directives: Are new requirements imposed by management, government or some external influence, Organizations select projects for any of these reasons. It is often easier to get approval and funding for projects that address problems or directives because the organization must respond to these categories of projects must be resolved quickly to avoid hurting their business. 21 21

Categorizing Projects (Continued) 2. Time Window for the Project The time it will take to complete a project or date by which it must be done. Some project can take a long time and some other projects take very short time to complete. Regardless of its duration all projects have to be prioritized. 22 22

Categorizing Projects (Continued) 3. General Priority of Project Organization can also prioritize projects based on the current business environment as being: High Priority Medium Priority Low priority Organizations should always complete High-priority project first, even if a low or medium priority project could be finished in less time. 23 23

3. Performing Net Present Value Analysis or other Financial Analysis Financial considerations are often an important aspect of the project selection process, especially during tough economic times. Three Primary methods for determining the projected Financial Value of projects are: 1. Net Present Value Analysis (NPV) 2. Return On Investment (ROI) 3. Payback Analysis Project Managers often deal with business executives. Therefore, they must understand how to speak to business executives, which often boils down to important financial concepts. . 24 24

3. Performing Net Present Value Analysis or other Financial Analysis (Continued) 1. Net Present Value Analysis (NPV) 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. Organizations should consider only projects with a positive NPV if financial value is a key criterion for the project selection. This is because a positive NPV means the return from a project exceeds the cost of capital. Projects with higher positive NPV`s are preferred to projects with lower NPV`s if all other factors are equal. . 25 25

3. Performing Net Present Value Analysis or other Financial Analysis (Continued) 1. Net Present Value Analysis (NPV) 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. Organizations should consider only projects with a positive NPV if financial value is a key criterion for the project selection. This is because a positive NPV means the return from a project exceeds the cost of capital. Projects with higher positive NPV`s are preferred to projects with lower NPV`s if all other factors are equal. . 26 26

1. Net Present Value Analysis (NPV) (Continued) NPV Analysis is a method for making equal comparisons between Cash Flows for multi-year projects. Cash Flow = (Benefits – Costs) Discount Rate is the rate used in discounting future Cash flow; It is also known as Capitalization Rate or Opportunity Cost of Capital. Three steps should be followed in order to determine NPV: 1. Determine the estimated costs and Benefits for the life of project 2. Determine the Discount Rate 3. Calculate NPV . 27 27

1. Net Present Value Analysis (NPV) (Continued) The mathematical formula for calculating NPV is: t NPV= Sigma A / (1+ r ) Where A = Amount of cash flow each year r = Discount rate t = the year of cash flow e.g. NPV value of $1 in `n` years, when Discount rate is %8 Year 0 (Base Year) NPV = 1/ ( ) = $1 3 Year = 1/ ( ) = $0.79 28 28

1. Net Present Value Analysis (NPV) (Continued) The mathematical formula for calculating NPV is: t NPV= ∑ A / (1+ r ) t = n Where A = Amount of cash flow each year r = Discount rate t = Year of cash flow e.g. NPV value of $1 in `n` years, when Discount rate is %8 Year 0 (Base Year) NPV = 1/ ( ) = $1 3 Year NPV = 1/ ( ) = $0.79 29 29

1. Net Present Value Analysis (NPV) (Continued) NPV ANALYSIS DISCOUNT RATE 11% TOTALS 2009 2010 2011 2012 2013 2014 2015 YEARS 1 2 3 4 5 6 COSTS $ $51.810 $56.991 $62.690 $68.959 $75.855 $83.441 $ CUMULATIVE COSTS $ $ $ $ $ CASH FLOW $46.676 $46.255 $45.838 $45.426 $45.016 $44.611 $ BENEFITS $0 $ $ $ $ $ $ $ CUMULATIVE BENEFITS $ $ $ $ $ $ $ $ $ $ $ NET PRESENT VALUE $ 30 30

2. Return On Investment (ROI) ROI is a percentage rate that measures profitability by comparing a project’s total Net Benefits (the return) to its Total Costs (the investment) ROI Formula ROI = (Cumulative Benefits – Cumulative Costs) / Cumulative Costs ROI for the project in this example is: ROI = [( ) / ] ROI = ( %) For 7 years ROI = ( / 7) = % Per annum 31 31

3. Payback Analysis Method (PBA) Payback Analysis is the process of determining how long it takes for a Project to pay for itself. Payback Period is the amount of time it will take to recoup the capital invested in the project, 32 32

3. Payback Analysis Method (PBA) 33 33

It is important for the project managers to understand the organization's financial expectations for projects in order to aid project selection . It is also important for top management to understand the limitations of financial estimates. 34 34

Weighted Scoring Model It is a tool that provides systematic process for selecting projects based on many criteria. These criteria can include factors such as: Meeting Broad organizational needs Addressing problems Addressing Opportunities Addressing Directives The amount of time to complete the project The overall priority of the project Projected Financial Performance of the project 35 35

Weighted Scoring Model The first step in creating a weighted scoring model is to identify criteria important to the project selection process. Next you assign a weight to each criteria. The weight is based on how much you value the criteria or how important the criteria is. The weights are assigned as a percentage (%) to each criteria and the sum of all the criteria's weight must total 100 percent. . Then Assign numeric scores to each criteria (e,g. 0 to 100) for each project The scores indicate how much each project meets each criteria. 36 36

Weighted Scoring Model (Continued) After assigning weights for the criteria and scores for each project, you calculate a weighted scores for each project by multiplying the weight for each criteria by its score and adding the resulting values. For Example: (25% * 90) + (15% * 70) + (15%*50)+ ( 10 %* 25) + ( 5% * 20) + ( 20% * 50) + ( 10%* 20) = 56 Project 2 with 78.5 % Weighted Score will be the obvious choice for selection NOTE: See next slide for the result of calculations 37 37

Criteria Weight Project 1 Project 2 Project 3 Project 4 Support key business objectives 25% 90 50 20 Has strong internal sponsor 15% 70 Has strong Customer support Uses realistic levels of technology 10% 25 Can be implemented in less than one year 5% Provides positive NPV 20% Has low risk in meeting scope, time and cost goals Weighted Project Scores 100% 56 78,5 41.5 38 38

Balanced Score Card Model Another approached to help select and manage projects that align with business strategy is Balanced Score Card Model. A Balanced Scorecard is a methodology that converts an organization's value drivers to a series of defined metrics such as: Customer Services Innovation Operational Efficiency Financial Performance Organizations record and analyze these metrics to determine ho well projects help them achieve strategic goals. 39 39

Balanced Scorecard Model (Continued) Balanced Scorecard emphasise on Organization Mission statement. Vision, Goals , and various Perspectives (i.e. Customer , Financial. Internal and, Growth & Learning perspectives) For further detaıls and examples see the Balanced Scorecard Instıtute”s web sıte Organizations can use many different approaches to select projects. Project Managers and project team members are often called upon to explain the importance of their projects , and understanding many of these project selection methods can help them represent the project effectively. 40 40

DEVELOPING A project CHARTER
After top management of the organization decides on which project to pursue, it is important to let the rest of the organization know about the selected project(s). Management needs to create and distribute documentation to authorize Project Initiation. The Project Initiation document can be in different forms, but one common form is a Project Charter. Ideally the project manager will provide a major role in developing the Project Charter. 41 41

Project Charter (Continued) Project Charter is a document that formally recognizes the existence of a project and provides direction on the project's objectives and its management. Some organizations initiate projects using a simple letter of agreement, while others use much longer documents or formal contracts. Project Charter is the key output of Project Initiation process and must be signed by all key stakeholders of the project, to acknowledge agreement on the need for and intent of the project Project Charter also authorizes the project manager to use organizational resources to complete the project. 42

Project Charter (Continued) Project Charter is a document that formally recognizes the existence of a project and provides direction on the project's objectives and its management. Some organizations initiate projects using a simple letter of agreement, while others use much longer documents or formal contracts. Project Charter is the key output of Project Initiation process and must be signed by all key stakeholders of the project, to acknowledge agreement on the need for and intent of the project Project Charter also authorizes the project manager to use organizational resources to complete the project. 43

Project Charter (Continued) The main tool and technique for developing a project Charter is expert judgement. Experts from within the organization as well as outside of the organization should be consulted when creating a Project Charter to make sure it is useful and realistic. The format of Project Charter can vary tremendously. However, it should include at least the following basic information. 44 44

Project Charter (Continued) The format of Project Charter can vary tremendously. However, it should include at least the following basic information. Project title and date of authorization Project Manager's name and contact information A Summary schedule, including the planned start and finished dates, if a summary milestone schedule is available , it should also be included or referenced. A Brief description of the project Objectives , including the business need or other justification for authorizing the project Project Success Criteria, including approval requirements and who designs off on the project A summary of the planned approach for managing the project, which should describe stakeholder needs and expectations, important assumptions, and Constraints. And related documents, such as Communication Management plan , as available. A role and responsibility matrix A sign-off section for signatures of key Project stakeholders A comment section in which stakeholders can comment about the projects. 45 45

Project Charter (Continued) Many projects fail because of unclear requirements and expectations, so starting with a project charter makes a lot of sense. If PM are having difficulty obtaining support from project stakeholders, they can to what everyone agreed to in the project charter. After creating a Project Charter the next step in Project Integration management is Preparing a Project Management Plan. 46 46

PROJECT MANAGEMENT PLAN
A Project Management Plan A Project Plan is a document used to coordinate all Project Planning documents Its main purpose is to guide Project Execution Project plans assist the project manager in leading the project team and assessing project status Project performance should be measured against a Baseline Project plan Building the plan should not be done in secret or in isolation; the whole project team needs to participate 47

A Project Management Plan Plans that are created in the other Project Management Knowledge Areas, listed below, are considered subsidiary parts of the overall Project Management Plan: Scope Management Plan Work Breakdown Structure (WBS) and WBS Dictionary Staffing Management Plan Schedule Management Plan Cost Management Plan Quality Management Plan Process Improvement Plan Communication Management Plan Risk Management Plan Procurement Management Plan 48 48

Project Planning Hints Project planning starts with the Project Plan development process, which is part of the Integration Project Management Knowledge Area.. Planning “forecasting” or “seeing into the future” is not an easy task Most expensive project mistakes are made during planning Project Managers must practice the art of Project Integration Management in order to create and assemble a good Management Plan, since information is required from all of the Project Management Knowledge Areas. Planning isn’t done just once but is a continuous process of adaptation and change Although planning is crucial, project Manager must be careful to avoid over-planning: i.e.: The planning must be appropriate to the size, complexity, and risk of the project and plan should not try to get everything defined perfectly. 49 49

Project Planning Attributes Just as projects are unique, so are Project Plans: Plans should be dynamic Plans should be flexible Plans should be updated as changes occur (Integrated Change Control) Plans should first and foremost guide Project Execution Plans should never assume the team will work overtime, at least not at the start 50 50

Developing A Project Management Plan Project Management Plan documents: Project Planning Assumptions and decisions regarding choices, Facilitate communication among stakeholders, Define the contact, extent, and timing a key management reviews, Provide a baseline for Progress Measurements and Project Control. 51 51

Developing A Project Management Plan (Continued) The Main inputs of Project Management Plan: Project Charter Outputs from planning processes Enterprise environment factors Organizational Process assets. The main tools and techniques is expert judgement, The main output is a Project Management Plan. 52 52

Project Management Plan Content Project Management plans are unique like projects . A small project involving a few people over a couple months might have a Project Management Plan consisting of only: A Project Charter Scope Statement A Gantt Chart (Project Plan) A Large project involving a hundred people over three years would have a much more detailed project management plan. It is important to tailor project management plans to fit the needs of specific projects. The project management plans should guide the work, so they should | be only as detailed as needed for each project. 53 53

Project Management Plan Content (Continued) There are common elements to most project management plans. Parts of a Project Management Plan include: An `Introduction or Overview of the Project` A Description of project organization The Management and technical processes Work to be performed The Project Schedule Project Budget 54 54

Project Management Plan Content (Continued) a) Project Introduction or Overview should include: Project Name A Brief Description of the project and the `Need` it addresses The Sponsor's name The Project Manager and the team members names Project Deliverables (List and descriptions of the products (outputs) from the project such as reports, software packages, Training materials etc.) List of important Reference materials ( Important documents or meetings related to a project helps stakeholders understand that history) Project Management Plan should reference and summarize important parts of the scope management, schedule management, cost management Quality management, human resource management, communications management, Risk management, and Procurements Management) A list of Definitions and acronyms, if appropriate to avoid confusion. 1- 55

Project Management Plan Content (Continued) b) A Description of how the Project is organized should include the following information: Organizational Charts (Both Customer company's and Sponsor company's (if different) organizational charts as well as the Project Organizational Chart to show the line of authority, responsibilities, and communication for the project.) Project Responsibilities A responsibility assignment matrix is a tool often used for displaying the responsibility information. Other Organizational or Process-related information. Depending on the nature of the project there may be a need to document major processes followed on the project. 56 56

Project Management Plan Content (Continued) c) The Management and technical processes This section describes Management and technical approaches that should include the following information: Management Objectives (Top Managements view of the project , Priorities for the project. Major Project Assumptions and Constrains) Project Controls It includes the describe of how the Monitoring project progress and handle changes, Risk Management Briefly addresses how the project team will identify, manage, and control risk. It should refer to Risk Management plan. 57 57

Project Management Plan Content (Continued) Project Staffing This section describes the number and types of people required for the project. It should refer to the human resource plan. Technical Processes This section describes specific methodologies a project might use and explains how to document information. It is important to clarify these technical processes in the Project Management Plan. 58 58

Project Management Plan Content (Continued) d) Work to be performed. This section of Project Management Plan should describe the work to perform and reference to the Scope Management. It should summarize the following Major work packages . Project Manager usually organizes the project work into several work package using a work Breakdown Structure WBS., and produces a Scope Statement to describe the work in more detail. This section should briefly summarize the main work packages for the project and refer to appropriate sections of the Scope Management Plan. Key Deliverables This section lists and describes the key products produces as part of the project. It also describes the quality expectations for the product to be delivered. 59

Project Management Plan Content (Continued. d) Work to be performed (Continued) Other work-related Information This section highlights key information related to the work performed on the project. (e.g. list the Specific equipment to use on the project or certain specifications to follow. It documents the major assumptions made in defining the project work. 60 60

Project Management Plan Content (Continued. e) The Project Schedule Summary Schedule One page summary of the overall project schedule. Depending on the size and complexity of the project the summary Schedule might list only Key Deliverables and heir planned completion dates. Detail Schedule It references the schedule management plan and discuss dependencies among project activities that could affect the project schedules. Other Schedule-related Information This section should document major assumptions and highlights other important information related to the project schedule. 1-61 61

Project Management Plan Content (Continued. Project Budget. Summary Budget Total estimate of the budget for overall project. Detailed Budget This section summarize what is in the cost management plan and includes more detailed budget information. (e,g, The fixed and recurring cost estimates each year The projected financial benefits of the project Types of people are needed to do the work and the labour cost calculation. Other Budget-related Information Major assumptions and highlights other important information related to financial aspects of the project. 62 62

Guidelines to create Project Management Plans. Many organizations use guidelines to create Project Management Plans. The Project Management Plan is more than creating a Gannt Chart. It is good practice to follow standards or guidelines for developing project Management plans in an organization (both in public and private organizations) to facilitate the development and execution of those plans. 63 63

A Sample PROJECT MANAGEMENT PLAN
Major Section Headings Section Topics Overview Process, Scope and Objectives; Assumptions and Constraints; Project Deliverables; Schedules and Budget Summary; Evolution of the plan. Project Organization External Interfaces; Internal structure; roles and responsibilities. Managerial Process Plan Start-up Plans. (Estimation, staffing, resource acquisition, and project staff training plans) Work Plan (Work Activities, Schedule. Resource. And Budget Allocation) Control Plan. Risk Management plan, Project Closeout Plan. Technical Process Plan Process Model. Methods, Tools and Techniques, Infrastructure Plan, Product Acceptance Plan Supporting Process Plans Configuration Management Plan, Documentation plan, Quality Assurance Plan Review and Audits, Problem Resolution Plan, Subcontractor Management Plan, Process Improvement Plan. ) Headings 1-64 64

PROJECT EXECUTION Directing and Managing Project Execution Directing and Managing project execution involves managing and performing the work described in the Project Management Plan which is one of the main input into this process. Other Inputs include : Approved Change Request Enterprise Environmental Factors Organizational Process Assets The majority of time on a project is usually spent on Execution, as is most of the project's Budget. The application area of the project directly affects project execution because the products of the project are produced during the execution. 65

PROJECT EXECUTION Directing and Managing Project Execution (Continued) The PM would need to focus on leading the project team and managing stakeholder relationships to execute the project management plan successfully. Project Human Resource Management and the Project Communication Management are crucial to a project's success. 66 66

PROJECT EXECUTION Coordinating Planning And Execution
In Project Integration Management, Project Planning and Execution are intertwined and inseparable activities. The main function of creating a Project Management Plan is to guide Project Execution. A good plan should help produce good products or work results Updates to the plan should reflect knowledge gained from completing work earlier in the project. A commonsense approach to improving the coordination between Project Plan and the Execution is to follow the simple rule: ` Those who will do the work should plan the work` 67 67

PROJECT EXECUTION Coordinating Planning And Execution (Continued)
Although Project Manager is responsible for developing overall Project Management Plan, they must solicit input from the project team members who are developing plans in each knowledge area. Thus, all Project personnel need to develop both Planning and Execution skills and need experience in these areas. 68 68

PROJECT EXECUTION Providing Strong Leadership and a Supportive Culture
Strong leadership and supportiive organizational culture are crucial during Project Execution. Project Managers must lead by examples to demonstrate the importance of creating good project plans and then following them in Project Execution. A good Project Execution must also requires a supportive Organizational Culture. If an Organization has useful guidelines for project management that everyone in organization follows, it will be easier for project managers and their teams to plan and do their work. 69

PROJECT EXECUTION Providing Strong Leadership and a Supportive Culture
If an Organization has useful guidelines for project management that everyone in organization follows, it will be easier for project managers and their teams to plan and do their work. If the organization uses the project plans as the basis for performing and monitoring progress during execution, the culture will promote the relationship between good planning and execution. However even with a supportive organizational culture, Project Managers may sometimes find it necessary to break the rules to produce project results in a timely manner. When PM breaks the rules the will play a role in the project results. Breaking the rules and getting away with it requires excellent leadership Communication and political skills 70

PROJECT EXECUTION Product, Business, And Application Area Knowledge
In addition to leadership, communication and political skills , Project Managers also need to possess product, business and application area knowledge to execute project successfully. Project Managers involved in small projects are usually expected o perform some technical work or Mentor project team members to complete the project Project Managers on larger projects are primarily responsible for leading the project team and communicate with Project sponsors. They do not have any time to do technical work,. In this case, it is usually best that the PM understand the business and application area of the project more than the technology involved. 71 71

PROJECT EXECUTION Product, Business, And Application Area Knowledge
In addition to leadership, communication and political skills , Project Managers also need to possess product, business and application area knowledge to execute project successfully. Project Managers involved in small projects are usually expected o perform some technical work or Mentor project team members to complete the project Project Managers on larger projects are primarily responsible for leading the project team and communicate with Project sponsors. They do not have any time to do technical work,. In this case, it is usually best that the PM understand the business and application area of the project more than the technology involved. 72 72

PROJECT EXECUTION TOOLS AND TECHNIQUES
Directing and managing project execution requires specialized tools and techniques, some of which are unique to project management. PM can use specific tools and techniques to perform activities that are part of execution processes such as: Expert Judgment Project Management Information Software Many large organizations use powerful Enterprise Project Management Systems that are accessible via the internet and tie into other systems such as financial systems. Smaller organization's project managers can use Project Management Software to create GANNT Chart 73

PROJECT EXECUTION TOOLS AND TECHNIQUES
Project Execution Tools and Techniques (Continued) Although Project Management Information Systems can aid in Project Execution , Project Managers must remember that positive leadership and strong teamwork are critical to successful Project Management. Project Managers should delegate the detailed and technical work and focus on providing leadership for the whole projector ensure project success. Project Manager and team members are most often remembered for how well they executed a project and handled difficult situations. 74 74

PROJECT MONITORING AND CONTROLLING
Monitoring And Controlling Projec Work Monitoring Project work includes collecting, measuring, and disseminating performance information. Monitoring Project work also involves assessing measurements and analyze trends to determine what process improvements can be made Thus the Project management should continuously monitor project performance to assess the overall health of the project and identify areas that require special attention. Project Management plans, performance reports, enterprise environment factors, and organizational process assets are all important inputs for monitoring and controlling project work. 75 75

Monitoring And Controlling Projec Work (Continued) Project Management Plan provides the Baseline for identifying and controlling project changes. A Baseline is the approved Project Management plan plus approved changes. Baseline can be cost baseline or schedule baseline describing different project goals more clearly and performance toward meeting them. Project Performance Reports use the Baseline data to provide information on how project execution is going. The main purpose of the report is to alert the project manager and the team of issues that are causing problems or might cause problems in the future, 76 76

Monitoring And Controlling Projec Work (Continued) The Project Management Plan includes the following Sections: Project Description section where the work to be performed on a project is described with the key deliverables for the project, the products, and the quality requirements. Schedule section listing the planned dates for completing key deliverables. Budget section providing the planned cost for these deliverables. 77 77

Monitoring And Controlling Projec Work (Continued) The Project team must focus on delivering the work as planned If the Project team or someone else causes changes during project execution , they must revise the Project Management Plan and have it approved by the Project Sponsor. The Project Manager and the project team members must continuously monitor and control project work to decide if corrective or preventive actions are needed, what the best course of action is, and when to act. An important output of Monitoring and Controlling project work is Change Request. 78 78

Monitoring And Controlling Projec Work (Continued) Many organizations use a formal Change Request process and forms to keep track of project changes. Change Request includes the recommended Corrective and Preventive Actions and Defect Repairs. Corrective Actions should result in improvements in project performance/ Preventive Actions reduce the probability of negative consequences associated with project risks. Defect Repairs involve bringing defective deliverables into conformance with requirements. 79

Performing Integrated Change Control Integrated Change Control involves with identifying, evaluating, and managing changes throughout the project lifecycle. The main objectives of Integrated Change Control are: Influencing the factors that create changes to ensure that changes are beneficial and that the project is successful. Project manager must make trade-offs among the key project dimensions, such as Scope, Time, Cost, and Quality. Determining that a change has occurred. The PM must know the status of key project areas at all times. PM must communicate significant changes to top management and key stakeholders, Managing Actual Changes as they occur is the key role of the PM and Project team. It is important that PM exercise discipline in managing the project to help minimize the number of changes that occur. 80

Performing Integrated Change Control Important inputs to the Integrated Change Control Process: Project Management Plan Work Performance Information Change Requests Enterprise environmental factors Organization process assess Important Outputs from Integrated Change Control Process: Updates to Change Request Status Project Documents 81

Performing Integrated Change Control (Continued) Change Requests are common on projects and occur in many different forms. (Oral, or written , formal and informal). PM must document all change requests regardless to avoid any potential problems. Keep in mind that many change requests can have a major impact on a project. For example: Customer changing of mind will have a definite impact on the project scope and thus cost of the project. Such a change might also affect the project's schedules. The significant changes must be presented in written form and there should be a formal review process for analyzing and deciding whether to approve the change request. 82 82

Performing Integrated Change Control (Continued) Change is inevitable and unavoidable and thus expected on projects especially on Information Technology projects (since technology change, personnel change, organizational priorities change and so on) An effective Change Control process is a critical success factor for project success. 83 83

Change Control System Change Control System Is a formal, documented process that describes: When and how official project documents may be change, The people authorized to make changes, The paperwork required for the change, Any automated or manual tracking systems the project will use. A Change Control System often includes: A Change Control Board (CCB), Configuration Management, A process for communicating changes. 84 84

Change Control System (Continued) Change Control Board (CCB) CCB Is a formal group of people responsible for approving or rejecting changes to a project. The primary functions of the board are to: Provide guidelines for preparing Change Requests, Evaluating Change Requests Managing the implementation of approved project changes. An organization`s key stakeholders must be on this board 85 85

Change Control Board (CCB) Continued CCB can have serious drawbacks. One major drawback is the time it takes to make decisions on proposed changes; since CCB often meets once a week or once a month and may not make a decision in one meeting. Organizations are forced to streamline processes for making quick decisions on smaller project changes that is urgent. On large IT projects , the project task leaders would reach an agreement on key decisions or changes within their expertise and authority in a specified time period (e.g. 48-hours policy) . The task leader then seeks the approval of the top management to carry on the changes.. 86 86

Configuration Management (CM) CM ensures that the descriptions of the project's products are correct and complete. Members of the project team, (frequently called Configuration Management Specialists) are often assigned to perform configuration management for large projects. Configuration Management specialists duties include: Identifying and documenting the characteristics of project's products Control any changes to such characteristics Record and report the changes Audit the products to verify conformance to requirements. 87 87

Change Control Communication Project Managers should use written and oral performance reports to help identify and manage project changes. Informal communication can also be important. Some PMs have Stand-up Meetings once a week or even every day depending on the nature of the project with his Project team leaders. The goal of stand-up meeting is to communicate what is most important on the project quickly. Good Communication is so critical to project success since one of the most frustrating aspects of Project change is not having everyone coordinated and informed about the lattes project information. 88 88

Change Control Communication (Continued) Good Communication is so critical to project success since one of the most frustrating aspects of Project change is not having everyone coordinated and informed about the lattes project information. Project Manager must develop a system for notifying everyone affected by a change in a timely manner. 89 89

Suggestions For Performing Integrated Change Control As described earlier on , the Project Management is a process of constant communication and negotiation, Thus, the Project Managers should plan for changes and use appropriate tools and techniques such as a Change Control Board, Configuration Management and good Communication, It is helpful to define procedures for making timely decisions on small changes, use written and oral performance reports to help identify and manage changes, and use software to assist in Planning, Updating, and Controlling Projects. PMs must also provide strong leadership to steer the project to successful completion. PMs must not get too involved in managing project changes, rather they should delegate much of the detailed work to team members, focus on the big picture providing overall leadership for the project in general. PMs must perform Effective Project Integration Management well enough to lead their team and organization to success. 90 90

Suggestions For Performing Integrated Change Control View Project Management as the process of constant communication and negotiation. Plan for Change Establish a formal Change Control System, including a Change Control Board Use effective Configuration Management Define procedures for making timely decisions on smaller project changes Use written and oral performance reports to help identify and manage changes Use Project Management Software and other Software to help manage communicate changes Focus on leading the Project team and meeting overall project goals and expectations. 91 91

Closing PROJECTs or phases
Closing Projects or a Project Phase is the last process in Project Integration Management. In order to close a Project or a Project Phase, you must finalize all activities and transfer the completed or cancelled work to the appropriate people. Main inputs to this process are: The Project Management Plan Accepted Deliverables Organizational Process assets The main tools and techniques used are Expert Judgement 92 92

Closing Projects or a Project Phase (continued) The Outputs of Closing Projects are: Final Products, Services, or results transition. Project Sponsors are usually most interested in making sure they receive delivery of the final products, services, or results they expected when they authorized the project. For items produced under contract, formal acceptance or handover includes a written statement that the contract were met. Organizational Process Assets updates, The Project team should provide a list of project documentation, Project Closure documents, and historical information produced by the project in a useful format. Project teams normally produces a Final Project rRport, which often includes a transition plan describing work to be done as part of operations after the project is completed. Project Managers and team members alsso write a Lesson-learned Rdeport 93 93

Closing Projects or a Project Phase (continued) The Outputs of Closing Projects are: (Continued) Project teams normally produces a Final Project Report, which often includes a transition plan describing work to be done as part of operations after the project is completed. Project Managers and team members often write a Lesson-learned Report at the end of the project. The information provided by the lessons –learned report is a tremendous asset for future projects. Organizations also conduct a Post-implementation Review Report to analyze whether or not the project achieved what it set out to do. Information from this type of review also becomes an organizational process assets for future projects. 94 94

USING SOFTWARE TO ASSIST PROJECT INTEGRATION MANAGEMENT
:Project teams can use various types of Software such as Microsoft Office Programs to assist in Project Integration Management. Project Management Software is also an important tool for developing and integrating : Project Planning documents, Executing the Project Management Plan and related Project Plans, Monitoring and Controlling Project activities Performing Integrated Change Control All Projects regardless of their sizes can benefit from using some type of Project Management Information Software. to coordinate and communicate project information. 95 95

USING SOFTWARE TO ASSIST PROJECT INTEGRATION MANAGEMENT
:Another category of Software that can help align projects with business strategy, is called Business Service Management (BSM) tools. BSM tools track the execution of business process flows and expose how the state of supporting IT Systems and resources is impacting end- to-end business process performance in capacity and having IT able to demonstrate that because of their efforts, they increased improve alignment between IT projects, such as updating Network Capacity, and business goals , such as reducing costs by processing customer orders more quickly. However, successfully implementing BSM Tools. Like many other tools, is far from easy. 96 96

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