Chapter 4 Integration Management

Chapter 4 Integration Management
One of the key role of a project manager in a project is to perform integration management. Integration management is balancing all the processes in the knowledge areas i.e. Scope, Time, Cost, Quality, Human Resources, Communication, Risk and Procurement with each other. These processes do not happen independently. For example, adding a new resource to a project may require cost and schedule changes. In dealing with each situation, the project manager is actually integrating the processes of project management that comes up on a project. In this chapter we will cover the following topics: Key to Overall Project Success: Good Project Integration Management Project Selection Methods Economic Models Project Charter Charter Vs Scope Statement Project Management Plan Organizational Process Assets Direct And Manage Project Execution Monitor and Control Project Integrated Change Control and Close Project Please click next to proceed to the chapter. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-1

Integration Management Learning Objectives
By the end of this chapter, you should be able to: Explain what is Integration Management Name the Integration Management Processes Describe the activities that take place in each process By the end of this chapter, you should be able to: Explain what is Integration Management and how it relates to the 5 process groups. Name the processes involved in Integration Management Describe the activities that take place in each process. As part of these high level learning objectives, by the end of this chapter, you should have a solid understanding of the following concepts: 1. The importance of the Project Charter 2. Project selection methods 3. Economic Terms 4. Development of the Project Management Plan, what it entails, and its importance 5. The definition and usage of Organizational Process Assets 6. How changes are managed on a project These objectives are given to make you aware of the knowledge you must gain from the material being presented in the chapter in order to do well on the exam. There will be questions interspersed between different topics, as well as a set of questions at the end of the chapter. The purpose of these questions is to help you strengthen your grasp of key concepts. You are strongly encouraged to answer these questions seriously so that you may assess any gaps you might have in your knowledge and understanding. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-2

Inov8Solutions Inc – Quality Educational Services For Professionals
Contents Integration Management Overview Project Selection Methods Economic Models Project Charter Charter Vs. Scope Statement Project Management Plan Organizational Process Assets Direct And Manage Project Work Monitor and Control Project Work Perform Integrated Change Control and Close Project In this chapter we will cover the following topics: Discuss an overview of Integration Management Knowledge Area Introduce various Project Selection Methods from the PMBOK Guide A brief overview of various economic models that might be asked about on the PMP exam Various components of the Project Charter and its importance to the Project A comparison between Project Charter and Scope Statement, highlighting what should and should not be part of each Project Management Plan and its inputs and outputs A discussion about Organizational Process Assets as this is listed as an input for many activities throughout the PMBOK Guide Direct And Manage Project Work along with its inputs and outputs Monitor and Control Project Work and its inputs and outputs Integrated Change Control plus inputs and outputs of this activity and lastly The importance of Close Project activity along with its inputs and outputs PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-3

Process Groups Overview
Quick overview of 5 process groups Initiating Planning Executing Monitoring & Controlling and Closing Before we discuss how Integration Management Knowledge area spans across all Project Management Process Groups, let’s quickly review the Process Groups and Knowledge areas as defined in the PMBOK Guide The five Process Groups we have discussed in the previous chapter are Initiating Planning Executing Monitoring & Controlling and Closing PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-4

Knowledge Area Overview
Project Management Integration Management Scope Management Cost Management Time Management Quality Management Risk Management HR Management Communications Management Procurement Management Stakeholder Management Note to Kamran: Can each ellipse be highlighted as it’s being mentioned in the narration? Here is a quick listing of the nine Knowledge Areas Integration Management Scope Management Time Management Cost Management Quality Management Human Resource Management Communication Management Risk Management Procurement Management Stakeholder Management Starting from this chapter we will cover each of these in detail PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-5

Integration Management
Ensures that project processes are properly coordinated Coordinate all knowledge areas throughout project’s life cycle 14 questions from this area As mentioned before, Integration Management is the coordination of relevant knowledge areas during each phase of the project life cycle. For example Develop Project Charter is one of the Project Integration Management related activities performed during Project Initiating phase. It often means making trade-offs among competing objectives and alternatives to meet stakeholder needs and expectations. Integration management touches upon many processes such as: Project charter development and approval at the start of the project Project plan development where we focus on integrating and coordinating all project plans to create a consistent, coherent document Project plan execution to carry out the activities according to the plan Monitor and control project execution for change requests as well as updates to the project management plan and documents Integrated change control to coordinate changes across the project Closing activities to ensure completion of project Integration management is an important area, with 14 exam questions, that touches all the Process Groups throughout the project’s life cycle. Therefore, it is important to review and solidify your knowledge in all of the Knowledge areas before proceeding with this chapter.

Integration Management Overview
Note to Kamran: Can we animate so that each row is highlighted as it’s being mentioned in the narration? Process Process Group Develop Project Charter Initiating Develop Project Management Plan Planning Direct and Manage Project Work Executing Monitor and Control Project Work Monitoring and Controlling Perform Integrated Change Control Close Project Closing Expanding on the discussion from pervious slide, here is an overview of the Integration Management knowledge area activities and how they correspond to the Process Groups: Develop Project Charter is performed during the Initiating process group Develop Project Management Plan is performed during the Planning process group Direct & Manage Project Work is performed during the Executing process group Monitor & Control Project Work is performed during the Monitoring and Controlling process group Perform Integrated change control is performed during the Monitoring & Controlling process group Close Project is performed during the Closing process group

Key to Overall Project Success
Good Project Integration Management Knowledge Area coordination throughout a project’s life cycle Focus on the Big Picture Project Integration management not the same as software integration Project managers often get tied up in various components of the project and do not keep a view of the bigger picture. However, the key to success of the project involves good Project Integration Management. It is the glue that keeps the entire project together! In this manner, Project managers must coordinate all knowledge areas throughout a project’s lifecycle. New project managers have trouble focusing on the big picture which is important for good integration management and essentially the project completion. This is especially true for Project Managers who have been promoted up from a technical role. PMBOK Guide calls this “The Halo Effect”, which we will cover more in the Human Resource chapter. Project integration management is different from software integration management. For example, software integration involves inter-connecting various software applications in a firm to work together for the purpose of streamlining business processes. For example, integrating financial system with Human Resource system or CRM (Customer Relationship Management). Whereas an example of integration management would be develop a project charter in the Initiating Process group which is used in the planning Process Group later on to develop the Project Management plan, and so on.

Use attached picture from PMBOK5, mention source as “PMBOK guide Fifth Edition”, remember to write pmbok in italics please Here is a pictorial representation of the concept we have been talking about over the past few slides. This chart illustrates how Integration Management has process activities in all of the Process Groups. Also note that the Integration Management activities are at a high level, for example during planning phase Develop Project Management Plan is at a higher level compared to planning activities for other knowledge areas. Compare this with the Scope Management Knowledge area’s planning activities Collect requirements, Define Scope and Create WBS, these are more specific. As mentioned before, don’t worry if this does not make sense on the first pass, come back to this diagram and this chapter after you have covered all the Knowledge Areas at least once. Source:

Project Selection Methods
Three categories Benefit Measurement Methods Constrained Optimization Methods Economic Models Projects can be selected based on a number of reasons by a company. They can be created due to the need to solve a problem, meet a legal requirement, improve or streamline a process, or to benefit from a market opportunity. Projects are undertaken by the sponsor or the initiator. Project managers can also initiate a project, but it is rare and it must be signed and approved by an authorized person in the company. Sometimes companies have numerous projects to select from. Therefore, their decision to initiate one project over the other can be difficult. It is for this reason, various methodologies exist to evaluate projects. Here are three main categories of methods used to select projects Benefit Measurement Methods Constrained Optimization Methods and Economic Models You are free to choose one or more methods from these three categories to decide which project your company needs to undertake and which ones to reject at this stage. Let’s explore each of these methods over the next few slides PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-10

Review Quiz Which one of the following is not one of the project selection methods? A. Benefit Measurement Methods B. Constrained Optimization Methods C. Flowcharting D. Economic Models The correct answer is C. Flowcharting is not one of the project selection methods. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-11

Benefit Measurement Methods
Examples of Benefit Measurement Methods Murder Board Peer Review Scoring Models Economical Models Benefit compared to cost Kamran note: Should we split this slide to demonstrated one method per slide? This will buy us some time but at the same time we have to talk more than a few sentences for each method We might be able to show examples to help students understand. At least for the scoring model, I would like to show an example. Benefits Measurement is a method where the projects are selected based on their benefit to the organization using different criteria such as: - Murder Board: A method where only a few of the projects are selected while most others are killed during the review meeting. Basically, the board selects one project over another. The board kills projects based on their expert judgment, hence the notorious name. Peer Review: In this method, the project is selected using peer review techniques. The review process can be open or secret where each participant does not know what his or her peer voted for. This later technique is called Delphi technique which will be discussed later in this course. Scoring models is another popular technique used to decide which project to choose. A set of selection criteria are selected against which each project will be scored upon. At the end all scores are totaled, highest scoring project is selected. Economical Model is a method where one or more economical models are used to determine which project the company will undertake. The economical models include Present Value, Net Present Value, Internal Rate of Return, Payback period, Benefit Cost Ratio, and Opportunity Cost. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-12

Constrained Optimization Methods
Examples Constrained Optimization Methods Linear Programming Integer Programming Dynamic Programming Multi-Objective Programming Kamran note: we can keep one slide for this as we do not have much material to cover here. Constrained Optimization methods are other methods utilized by managers to select projects. These usually involve the use of a computer model or other programmatic method of selecting a project. Some examples of constrained optimization methods include Linear Programming, Integer Programming, Dynamic Programming, and Multi-Objective Programming. For the exam you only need know that these four types of project selection methods fall under the Constrained Optimization Method category. You will not be quizzed on how these methods are applied or used? PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-13

Review Quiz All of the following are Benefit Measurement methods except: A. Scoring Models B. Economic Models C. Murder Board D. Linear Programming The correct answer is D. Linear Programming is an example of Constrained Optimization methods. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-14

Economic Models Present Value PV = FV/(1+r)n where r=interest rate; n=no. of time periods E.g.: what is the present value of $500,000 received 3 years from now if we expect the interest rate to be 10%? Answer: 375,657 [ / (1+.01)3] The last category used to select projects uses Economic Models by using Preset Value or Net Present Values to determine which project to select. Present value is calculated with the formula PV equals FV divided by the sum of one plus r raised to the power of n where r = interest rate, n = number of years (or time periods). Here is an example on how this calculation can be used to calculate present value of a project. Let’s say company A has a choice of two projects: Project 1 and Project 2 where project 1 has a Present Value of $375,657 and Project 2 had a Present Value of $400,000. The selection will be Project 2 with higher Present Value. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-15

Economic Models Net Present value Present value of total benefits less costs There are two projects: Project A will take 3 years to complete and has a NPV of US$75,000. Project B will take 6 years to complete and has a NPV of US$95,000. Which one would you select Answer: Project B Just like we chose the project with the highest present value, same is true for Net Present Value. So in this example Project A has an NPV of $75,000 while Project B has an NPV of $95,000. Out of these two we will pick project B with the higher NPV. Note we ignore the time it takes to complete each of the projects, time has already been factored in the calculation for NPV. Please Note: NPV questions do not involve any calculations, the question will give you NPVs for projects in question. You should pick the project with the highest NPV. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-16

Economic Terms Internal rate of return (IRR) Rate at which the project inflows and project outflows are equal (Choose higher) Payback period Number of time periods it takes to recover the investment in the project Benefit Cost ratio Payback is __$ for each dollar spent Opportunity Cost Opportunity given-up by selecting one project over another Consider splitting this and next slide into two or three While on the topic, let’s touch on some Economic Terms that can crop up on your exam. Internal Rate of Return is another economic model that is utilized in Project Management. The method is usually used to find the financial break even point. Given a number of projects to choose from, select the one with a higher rate of return. A Payback period is calculated to find out the time it takes to recover the investment in the projects. So the shorter the time to recover your investment, the better it is. So for the exam, the smaller number of period will be the correct answer. Benefit cost ratio tells you the payback amount for each dollar spent on the project. So this is a way to calculate the benefit one receives from the investment in dollars. For example a Benefit Cost ration of $0.80 means we get back eighty cents from every dollar we spend. Compare this with a Benefit Cost ration of $1.60, we get back $1.60 from every dollar we spend. Opportunity Cost is the amount of money you have to give-up by NOT selecting a project. So for example let’s assume Project A has an opportunity cost of $5, and Project B has an opportunity cost of $9, By selecting Project B you are giving-up $5, you otherwise would have gained by selecting project A. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-17

Economic Terms (Cont..) Consider splitting slide and padding narration
Law of Diminishing Returns More we put into something the less we get out of it. E.g., adding twice as many resources to a task may not get the task done in half the time Working Capital Current Assets minus Current Liabilities. Amount of money the company has to invest, including investment in projects Depreciation Loss in value over time Life Cycle Costing project costs may be low at the expense of greater overall cost for the rest of the life of project Value Analysis To find a less costly way to do the same scope of the work Consider an example where two people were doing the job and you double the staff members on the same job, thus increasing the total number of people working on the same job to be four people. By doing so you may not reduce the work by half. It is not a linear relationship according to the law of diminishing returns. In other words, by adding more staff on the same job may not give you one-on-one increase in efficiency and will not double your output. Thereby, adding additional resources will eventually peak out and after the peak performance, you will have diminishing returns. Working Capital is the amount of cash available to spend or to invest in projects by a company. In accounting terms, it is calculated by subtracting Current Liabilities from the Current Assets. Depreciation is the loss of value of equipment or assets over time. Assets value goes down over time. For example, the value of an office equipment that you purchased last year would be less this year. In tax terms, you can write off the depreciation value according to the tax schedule. Life Cycle Costing is a term used to define the overall cost over a product’s life cycle. This is the amount of cumulative money a company might have to spend to support the product after it is sold. Best examples are automobile recalls. For example there are recalls and other support and maintenance costs which add up to the overall cost of having a product in the market. In project selection, it is better to consider long term and not just the short term costs. Consider a project to launch a service or product, during the project life cycle the team may decide to cut some corners to save money and to complete the project on time. However over the product’s life cycle, there might be numerous recalls to fix the design issues. So you might have saved time and money during the project life cycle, but end up spending way over during the product’s life. When looking for ways to save costs in a project consideration should be given to the product life cycle costs. Value Analysis involves accomplishing the same work for less costs by utilizing new and more effective technologies or other efficient methodologies. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-18

Integration management Process Tasks
Develop Project Charter Develop Project Management Plan Direct and Manage Project Work Monitor and Control Project Work Perform Integrated Change Control Close Project or Phase With Key definitions out of way, let’s get back to the tasks performed under the Integrated Change Control Knowledge Area. To recap these are Develop Project Charter from the initiation process group Develop Project Management Plan from the planning process group Direct and Manage Project Work from the execution process group Monitor and Control Project Work from the monitoring and controlling process group Perform Integrated Change Control from the monitoring and controlling process group and Close Project from the closing process group Over the remaining part of this chapter we will go over each of these in detail PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-19

Review Quiz All of the following are Integration Management processes except: A. Develop Project Charter B. Manage Stakeholder Engagement C. Direct and Manage Project Work D. Perform Integrated Change Control The correct answer is B. Manage Stakeholder Engagement is a process in the Stakeholder Management Knowledge Area. All others are part of Integration Management. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-20

Develop Project Charter
Formally authorizes a project or a phase Provides direction on project’s objectives and management States initial requirements that satisfies stakeholders needs Is signed by project stakeholders and a key output of project integration management Upon approval, formally initiates the project Identifies Project Manager / assigned prior to planning Authorizes Project Manager to apply resources to project Kamran note: Can we have a link to pop open picture from slide 8 for reference? If so say something in narration to prompt students to click the link if they need to see the pic. Also can we put a lightbox around the appropriate section in the diagram to highlight the current topic, can discuss if you like. The first activity in Integrated Change Control Knowledge Area is Develop Project Charter. Can you guess which process group we might be in when Developing Project Charter? Understanding where we are in the project life cycle will help you correctly answer an otherwise confusing question. These exam questions outline a scenario before posing the question. Picking the right choice can be confusing if you are not able to identify where in the project life cycle the scenario is being played out. When in this situation, look for clues given in the question to understand where we are in the project life cycle? So When do we develop the project charter? In the initiation process group. The Project Charter must be signed by the Project Initiator or someone with an authority stated in the Charter. Once the charter is signed, the project can begin. It is stated in the Project Charter who will be the Project Manager. A project charter also empowers the project manager to spend from the authorized budget, acquire resources, make hire or fire decisions and lead & direct project work. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-21

Develop Project Charter
Class Group Activity – 30 Minutes Divide Class into 3 groups (3 to 4 students in each group) Discuss and brainstorm the inputs/outputs Present your inputs/outputs to the rest of the teams Check and compare your inputs/outputs with PMBOK® Guide 5th edition No notes. Class Activity Slide. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-22

Project Charter Project Charter, typically contains: Project Title and Description Project Manager assigned/Authority Level Business Need Project Justification Resources Pre-Assigned Stakeholders Project Description/Deliverables Constraints and Assumptions According to PMI, if there is no Project Charter, then there is no project. Project Charter is a written document, and it contains all the details of the project and typically the following: Project Title and Description Name of the Project Manager Authority Level of the project manager Business Need that this project is going to address Project Justification Resources Pre-Assigned High level Stakeholders Project Description and Deliverables Any Constraints and Assumptions that might impact this project Project Charter is created by a member of the senior staff with an authority of initiating projects. This is a document that has to be as complete as possible and must include the name of the Project Manager with his or her authority level. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-23

Charter Vs Scope Statement
Project Charter Project Purpose Measurable project objectives High level requirements project description product characteristics Summary milestone schedule Summary budget Project approval requirements Assigned Project Manager, responsibility, authority level Name and responsibilities of person authorizing project charter Scope statement Product Scope description (progressively elaborated) Project deliverables Product user acceptance criteria Project boundaries Project constraints Project assumptions Project charter and Project Scope documents might seem to be similar to each other. At times project charter might end up with material more suited for a scope document. Here is a list of differences between these two documents. While contrasting these two documents keep in mind, project charter is a high level document while the scope statement is progressively elaborated or revisable. They also differ in the level of detail regarding the product or service, where a project charter will have a high level mention but a scope document needs to go into details. Scope statement defines what is in-scope and what is out of scope. It is best to not assume anything in the project scope. It is better to clarify the scope upfront because later on the client may not accept it. A project charter has A statement defining project purpose Measureable project objectives Includes high level requirements, project description and project characteristics Has summary milestones and a summary budget Lists project approval requirements Names a project manager and the authority level Lists stakeholders A Scope statement on the other hand Discusses product scope in detail Is progressively elaborated Lists project deliverables Documents user acceptance criteria Outlines project boundaries Details project constraints and project assumptions PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-24

Develop Project Management Plan
Documenting actions necessary to define, prepare, integrate & coordinate all plans How project is executed, monitored, controlled and closed Results in project management plan that is progressively elaborated What do we mean by progressive elaboration? Kamran note: Can we have a link to pop open picture from slide 8 for reference? If so say something in narration to prompt students to click the link if they need to see the pic. Also can we put a lightbox around the appropriate section in the diagram to highlight the current topic, can discuss if you like. Next after Develop Project Charter is Develop Project Management Plan. Which process group is the Project Management Plan developed in? Project Management Plan is developed during the planning phase. We are now squarely out of the initiation phase into the Project Planning phase of the project life cycle. A project management plan is a comprehensive document containing detailed planning information like Scope management plan Time management plan Cost management plan Quality management plan HR management plan Communication management plan Risk management plan and Procurement management plan Stakeholder Management Plan Remember this is a document that is progressively elaborated or in other words revised throughout the project life cycle. The Project Management Plan is useful for the project on hand and also as a reference for future projects. There are many inputs to this document including scope, estimated costs, time and other estimates of revisable activities and resources. The Project Management Plan is the main reference baseline document that is used in almost all of later phases. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-25

Project Management Plan Inputs and Outputs
Class Group Activity Divide Class into 3 groups (3 to 4 students in each group) Discuss and brainstorm the inputs/outputs Present your inputs/outputs to the rest of the teams Check and compare your inputs/outputs with PMBOK® Guide 5th edition No notes. Class Activity Slide. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-26

Historical Information
Record of past projects Used to plan and manage future projects Historical information includes Tasks WBS Reports Estimates Project Plans Lessons Learned Risks Resources Needed Correspondence If no historical information is available, then each project is essentially planned, estimated and scheduled from scratch As you have just seen in the last activity, historic documents are an important input to the planning phase. You will keep seeing this as a key input in many other processes as well. Imagine if you have, at the start of each project, a cheat sheet giving you detailed templates, the issues you might face and how to solve them. That’s exactly what historic documents are. These are gathered knowledge from previous projects, archived and ready for you to use for your future projects. Some typical information you might find in historic documents are Tasks Work breakdown structure and work breakdown structure dictionary Any project reports produced Any estimates produced during the project Project Plans Lessons Learned Risks compiled in a risk register Resources Needed Correspondence Imagine if no historic information is archived stored or available for future projects. This would mean that each project is essentially planned, estimated and scheduled from scratch. And once the project is complete, all the lessons learned and collective wisdom is in effect thrown away as you dismantle the team. Here are some exam questions, what is the next step in each of the following situations Project phase is completed Project is completed Project is terminated Answer: Gather historic information in each and every one of these situations PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-27

Organizational Process Assets
Process, procedure and policies Corporate Knowledge base Historical information Lessons learned What was done right, wrong and what would be done differently if the project was to be redone Required document for the project to be completed Documents from past project are input to new projects Entire project team is responsible for creating this document But I did not see historic information in the inputs for the last activity, you might ask. You might have seen Organization Process Assets listed as one of the inputs. Historic information is part of your Organization’s process assets. Organization process assets include processes, procedures, and policies from corporate knowledge base and historical information including information compiled from previous projects as “lessons learned”. You may consider this as a cheat sheet for your next project. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-28

Organizational Process Assets Definition
“The plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization. They include any artifact, practice, or knowledge from any or all of the organizations involved in the project that can be used to perform or govern the project.” Here is the official definition of Organizational process assets as defined in the PMBOK Guide. According to PMBOK, Organizational Process Assets are “the plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization. They include any artifact, practice, or knowledge from any or all of the organizations involved in the project that can be used to perform or govern the project.” PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-29

Direct And Manage Project Work
Performing work defined in the project management plan to achieve project’s objectives Work Performance information fed into the performance reporting process used as an input to the monitoring and controlling process group Implementation of approved changes to Corrective/Preventive action and Defect Repair Kamran note: Can we have a link to pop open picture from slide 8 for reference? If so say something in narration to prompt students to click the link if they need to see the pic. Also can we put a lightbox around the appropriate section in the diagram to highlight the current topic, can discuss if you like. To give a quick recap of our progress so far, as part of Integration Management we have so far Developed Project Charter in the Initiating phase Developed Project Management Plan in the Planning phase Next is Direct and Manage Project Work in the, you guessed it right, Executing phase In other words, once you have finished the planning it is time to put the plan to work. It is the performing of the work as defined in the Project Management plan to achieve project’s goals and objectives. This is the “Do” part of Demmings Plan, do, check, act cycle. It is the longest activity in the Project Management process which means it consumes the most resources, time and money. This will also require most of your attention as a project manager. For these reasons we have the most number of questions from this area. During Project execution, tangible and intangible deliverable are created such as software, applications, buildings, business and professional services. While the deliverables are being produced, work performance data is also created as a by-product. Example of work performance data includes burn rate, resource usage and work completion rate to name a few. This work performance information will be used in the monitoring and controlling process group. As we are executing to plan, any defects discovered or change requests are presented to the change control board as part of the integrated change control process. Remember at this stage these are just recommended changes presented to the change control board, once the board approves these only then do they become approved changes. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-30

Direct And Manage Project Work
Class Group Activity – 30 minutes Divide Class into 3 groups (3 to 4 students in each group) Discuss and brainstorm the inputs/outputs Present your inputs/outputs to the rest of the teams Check and compare your inputs/outputs with PMBOK® Guide 5th edition No notes. Class Activity Slide. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-31

Monitor and Control Project Work
Tracking, reviewing and regulating progress To meet the performance objectives defined in the project plan Performed throughout the project Identifies areas which require special attention Determines corrective or preventive actions or re- planning Compares actual project performance against project management plan (baseline) Kamran note: Can we have a link to pop open picture from slide 8 for reference Also can we put a lightbox around the appropriate section in the diagram to highlight the current topic, can discuss if you like. The monitoring and controlling process group overlaps all knowledge areas. Just like the planning process group, the monitoring and controlling process group has an activity that needs to be done in every knowledge area. Please refer to the link to see the process group to knowledge area mapping we discussed earlier. As you might see from the chart, the integration management specific activities in the monitoring and controlling process group are Monitor and control project work and Perform integrated change control Also keep in mind that this monitoring and controlling processes run along side the Executing processes, which we said earlier consume most time and effort. As execution tasks are completed, the work performance data is fed into the monitoring and controlling process group. During Monitoring and Controlling, the Project manager identifies areas which require special attention and determines corrective or preventive actions. Some examples of such correction would be to identify any overspending or checking whether the project is under schedule. A successful Project Manager works in a proactive and not reactive mode in order to identify and correct issues before they manifest themselves. To do this a project manager needs to track and review project performance on a regular basis. During this phase of the project, the project manager compares the project performance by comparing the actuals or baseline to the project plan and takes corrective actions so that the project’s objectives are met according to the budget and time schedules. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-32

Monitor and Control Project Work Cont’d
Identifies new risks, reports status ensures risk response plans are executed Maintains accurate timely information of projects product Provides information about progress measurement and forecasting Provides forecasts to update current cost and current schedule information Monitors implementation of approved changes as they occur Continuing with the tasks performed by a project manager during the monitoring and controlling project phase, the Project Manager is not only responsible for identifying risks but is also responsible to report the status to the team and stakeholders. Accurate and timely dissemination of information is key to project success, we will cover this area more in the communication chapter where mode and types of communication will be discussed in detail. Project manager reports the progress and any forecasting for cost and time schedule. Again we will discuss details of time and cost measurement and forecasting in the time management and cost management chapters. Forecasting can be easily done by running trend analysis, which in it’s simplest form is analysis of the projected finish date and cost if we continue on the current trend. In this phase, the Project manager also monitors the implementation of approved changes. As we will see in the next activity, recommended changes are an output of this process and approved changes are an input. It would make sense to check and see if the changes we recommended, approved and implemented are effective or not. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-33

Monitor and Control Project Work Inputs & Outputs

Integrated Change Control
Reviewing all change requests Conducted throughout the life of the project Continuously manage changes By rejecting or approving them Maintains integrity of baselines by releasing only approved changes Changes recorded in change/configuration management system Change control board (CCB) responsible for approving/rejecting change requests Perform Integrated Change Control is the second activity in Monitoring and Controlling process group that is related to the integrated management knowledge area. Integrated change control is formally implemented in large projects and usually informally done for smaller ones. When formally implemented, integrated change control is performed by the Change Control Board. The main motive of integrated change control is to keep scope creep in check by screening change request so as to approve only those changes that help meet project objectives. All this to ensure the project is completed on time and within budget. It is the responsibility of the project manager to maintain integrity of project baselines meaning not every single change request is approved that the project is significantly changed from the plan. Changes are continuously being raised throughout the project’s life cycle which implies that integrated change control is also a continuous process conducted throughout the life of the project. All changes, including approved and disapproved, are recorded and tracked in the enterprise change or configuration management system. This could be a simple spreadsheet or a complicated change control system, depending on the complexity and size of the project. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-35

Change life cycle Change requests Change Control Board review
Changes approved or rejected Approved changes implemented Results measured Let’s review a typical change cycle. During project execution change requests (corrective or preventative) are raised. It is important to understand that at this stage these are just requests which might or might not be implemented. The Change Control Board reviews these change requests and either approves or rejects them. During these change control meetings changes are reviewed against the project plan to aid in the decision making process. Attention is given to the scope of the project as originally defined in the plan documents. Note, once the change control board approves the change requests we call them Approved Changes, which means the team can now proceed with making the changes as originally requested. These could be changes to the processes, plan documents or organization process assets. Remember projects are iterative in nature? As soon as we implement these approved changes we go back to take measurements to see if the original issue was fixed or if we need to raise further change requests. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-36

Integrated Change Control Inputs & Outputs

Close Project Finalizing all activities According to the Project Management plan Administrative closure activities transfer of products/services to the next phase gather project records project audits gather lessons learned archive project information for future use Investigate and document reasons for project termination Kamran note: Can we have a link to pop open picture from slide 8 for reference? If so say something in narration to prompt students to click the link if they need to see the pic. Also can we put a lightbox around the appropriate section in the diagram to highlight the current topic, can discuss if you like. Did not get time to work on narration please expand and reword. The last activity in a Phase or Project management lifecycle is the project closing. It involves finalizing all activities according to the Project Management Plan and across all Process Groups. The administrative closure activities include handing over the project deliverables such as the final product or service to the operations department or the client. The client agrees to accepts the final product or service. Additionally, activities such as Project audits, lessons learned, and updating of organization assets are recorded in this phase. Note that it is important that the Project Team is not dismissed prior to documenting the lessons learned. Additionally, work after the project closing can be part of the warranty or maintenance contracts. Do not underestimate the importance of this process. Performing all relevant closing activities is important whether a project is completed or terminated early. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-38

Close Project Inputs & Outputs
Class Group Activity – 15 Minutes Divide Class into 3 groups (3 to 4 students in each group) Discuss and brainstorm the inputs/outputs Present your inputs/outputs to the rest of the teams Check and compare your inputs/outputs with PMBOK® Guide 5th edition Note for Kamran Please animate , this and other similar exercises as appropriate to online class No notes. Class Activity Slide. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-39

Project Charter Example
Click on the pdf link to see an example project charter Kamran note: please include a link to open a pdf file Sample project Charter e.pdf File uploaded to ftp No notes. Class Activity Slide. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-40

Chapter Summary Integration Management 5 process groups 10 Knowledge Areas Initiating Project selection methods Develop Project Charter Planning Develop Project Management Plan Executing Direct and Manage Project Work Here is a summary of the contents of this chapter: Integration Management is the Knowledge Area that takes into account all the other knowledge areas and spans the 5 process groups. In Integration Management, all the aspects of the project are considered from Initiating to Closing. The 5 process groups are: Initiating, Planning, Executing, Monitoring and Controlling, and Closing The 10 Knowledge Areas are: Integration Management, Scope Management, Time Management, Cost Management, Quality Management, Risk Management, Human Resource Management, Communications Management, Procurement Management, and Stakeholder Management. The Initiating Phase involves the selection of the project based on Project Selection criteria, which include Benefit Measurement methods and Constrained Optimization methods. Once the project is selected, the Project Charter is created and authorized in the Develop Project Charter process. Developing the project charter is an Integration Management process because all the aspects of the project need to be considered and appropriately incorporated into the Project Charter, including things such as business case, high level objectives, high level requirements, assumptions, constraints, and broad milestones. The Project Management Plan is developed in the Develop Project Management Plan process. The Project Management Plan is a blueprint for how the project will be planned, executed, and managed. This is an Integration Management Process because all the aspects of the project need to be considered when developing the Project Management Plan. The work of the project is performed in the Direct and Manage Project Work process. This is a part of Integration Management because the execution needs to be conducted in accordance with the Project Management Plan. All the various aspects related to the project need to be considered in this process, such as the scope, cost, time, quality, risk, etc. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-41

Chapter Summary 7. Monitoring and Controlling Monitor and Control Project Work Perform Integrated Change Control 8. Closing Close Project Monitoring and Controlling the project takes place in the Monitoring and Controlling Project Work Process. This is an aspect of Integration Management because the performance of the project is measured against the Project Management Plan. Measurements and assessments are done related to the scope, cost, time, quality, and risks of the project. Having a system for handling changes on a project is important. The Perform Integrated Change Control process, part of Monitoring and Controlling, handles the changes that are needed on a project. Perform Integrated Change Control is a part of Integration Management because the changes that arise might be related to any aspect of the project, such as scope, cost, time, quality, etc. Finally, all the project closing activities are performed in the Close Project process. Project closing should be performed for all projects, whether they are completed or terminated early. Closing is part of Integration Management because verification needs to take place as to whether the project achieved all its objectives according to the Project Management Plan. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-42

End of Chapter Quiz Question 1: The project charter is created and approved in which process group? A. Planning B. Brainstorming C. Initiating D. Monitoring and Controlling The correct answer is C. The project charter is developed and approved in the Initiating process group. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-43

End of Chapter Quiz Question 2: The only process group that has 2 processes in Integration Management is: A. Planning B. Monitoring and Controlling C. Closing D. Indexing The correct answer is B. The 2 Monitoring and Controlling processes that are part of Integration Management are Monitor and Control Project Work and Perform Integrated Change Control. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-44

End of Chapter Quiz Question 3: All of the following are characteristics of the Project Charter except: A. Names project manager B. Articulates business case for project C. Provides high level objectives D. Contains a detailed schedule The correct answer is D. The purpose of the Project Charter is not to provide a detailed schedule or detailed list of requirements. Its purpose is to authorize the project, name the project manager, provide high level objectives and success criteria. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-45

End of Chapter Quiz Question 4: The “DO” part of Deming’s “Plan, Do, Check, Act” cycle is done in which Integration Management process? A. Direct and Manage Project Work B. Develop Project Management Plan C. Perform Quality Assurance D. Perform Integrated Change Control The correct answer is A. The deliverables of the project are created in the Direct and Manage Project Work process. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-46

End of Chapter Quiz Question 5: The process that compares project performance against the project management plan and looks for deviations is: A. Perform Integrated Change Control B. Measure project performance C. Monitor and Control Project Work D. Determine Variances The correct answer is C. Monitor and Control Project Work is the process in which project performance is measured against the baselines developed in the project management plan. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-47

End of Chapter Quiz Question 6: This entity is responsible for approving or rejecting change requests. A. Project Team B. Change Control Board C. Client D. Chief Executive Officer The correct answer is B. The Change Control Board has the responsibility of approving or rejecting all change requests. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-48

End of Chapter Quiz Question 7: Documenting lessons learned, archiving documents, and closing procurements take place in which process? A. Initiate B. Direct and Manage Project Performance C. Adjusting estimates D. Close Project The correct answer is D. These activities take place in the Close Project process. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-49

End of Chapter Quiz Question 8: Organizational Process Assets are: A. Used for accounting purposes B. Artifacts or practices that can be used to perform or govern the project C. Only used for multi-million dollar projects D. Equipment owned and operated by companies The correct answer is B. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-50

End of Chapter Quiz Question 9: Which is not true regarding project integration management? In the project management context, integration includes characteristics of unification, consolidation, articulation, and integrative actions that are crucial to project completion, successfully managing stakeholder expectations, and meeting requirements. Project integration management entails making choices about resource allocation. Project integration management does not manage interdependencies among project management knowledge areas. Project integration management includes the process and activities needed to identify, Define, combine, unify and coordinate the various processes and project management activities within the project management process groups. The correct answer is C. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-51

Chapter 4 Integration Management

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