SESSION J

13- INTEGRATION
MANAGEMENT

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 Project Management Methodology
STANDARD

COMPANY

PROJECT

Phase 1 Phase 2 Phase 3 Phase 4

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Project management Standard (PMI)

Enterprise Project
Management Methodology (Company)

• Project Management Methodology

(Project Manager)

• Project Management Plan

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 Project management methodology

Project Management Information

System

• Configuration Management System

• Change Control System

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 4 - Project Integration Management

Project Integration Management

includes the processes and
activities to identify, define,
combine, unify, and coordinate the
various processes and project
management activities within the
Project Management Process
Group
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 Project Integration Management

4.1 Develop Project Charter

Developing the project charter

that formally authorizes a
project or a project phase

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 PROJECT CHARTER
The project charter is the document that
formally authorizes a project
A project initiator or sponsor external to the
project organization, at a level that is
appropriate to funding the project, issues
the project charter

The project charter, either directly, or by

reference to other documents, should
address the following information:
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 PROJECT CHARTER CONTENT
• Customer Requirements, needs, wants and expectations
• Business needs, high-level project description, or product
requirements
• Project purpose or justification
• Assigned Project Manager and authority level
• Summary milestone schedule
• Stakeholder influences
• Functional organizations and their participation
• Organizational, environmental and external assumptions
• Organizational, environmental and external constraints
• Business case justifying the project, including return on investment
• Summary budget.
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slide # 9
 Project Selection Methods
• Benefit measurement methods
comparative approaches, scoring models,
benefit contribution, or economic models.
• Mathematical models
Linear, nonlinear, dynamic, integer, or
multi- objective programming algorithms.

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 FINANCIAL TERMS

The following are some financial

terms should be known to the
project manager

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 FUTURE VALUE (FV)

FV = P x ( 1 + i )n
FV
n years

i %, interest rate
P
Where;

• FV is The Future Value

• P is the original amount
• i is the interest rate per period
• n is the number of periods
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 PRESENT VALUE (PV)

The amount that a future sum of money is worth today

given a specified rate of return which is Opposite to the
Future Value.

PV = P / ( 1 + i )n
P
n years

i %, interest rate
Where : PV

• PV is The Present Value

• P is the original amount
• i is the interest rate per period
• n is the number of periods
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 NET PRESENT VALUE (NPV)

• NPV is used in capital budgeting to

analyze the profitability of an investment
or project

• To compare between options, you have to

evaluate the present value for the cash
out and the present value for the cash in:

NPV = (PV) Revenue – (PV) Cost

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 INTERNAL RATE OF RETURN (IRR)
• It's the interest rate that makes net present value
of all cash flow equal zero

It can be determined by Iteration

We may use PC tools as Excel.

• If we implement this rate of return in solving the

initial case, the NPV will be equal to zero

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 PAYBACK PERIOD (PBP)

• The length of time required to recover the cost

of an investment.
Calculated as:

PBP = Cost of Project / Annual Cash In

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 BENEFIT COST RATIO (BCR)

• The total revenue of the project divided by the

total cost

Calculated as:

BCR = REVENUE / COST

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 PROJECT SELECTION

Select the project with

HIGHER NET PRESENT VALUE (NPV)
HIGHER INTERNAL RATE OF RETURN (IRR)
HIGHER BENEFIT COST RATIO (BCR)
LESS PAYBACK PERIOD (PBP)

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 OTHER DEFINITIONS
Opportunity Cost
The opportunity given up by selecting one project over
another.
You have two projects to choose from; Project A with an
NPV of $45,000 or Project B with an NPV of $8,ooo. What is
the opportunity cost of selecting project B?
Answer $45,000.
Sunk Costs
Expended costs.
You have a project with an initial budget of $1,000,000. You
are halfway through the project and have spent $2,000,000.
Do you consider the $1,000,000 over budget when
determining whether to continue with the project?
Answer No!
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 Project Integration Management

4.2 Develop Project

Management Plan
Documenting the actions
necessary to define, prepare,
integrate, and coordinate all
subsidiary plans into a project
management plan
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 Project Management Plan

• The project management plan defines

how the project is executed, monitored
and controlled, and closed

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 Project Management Plan Contents
• The project management processes selected by the project management team
• The level of implementation of each selected process
• The descriptions of the tools and techniques to be used for accomplishing those
processes
• How the selected processes will be used to manage the specific project,
including the dependencies and the essential inputs and outputs
• How work will be executed to accomplish the project objectives
• How changes will be monitored and controlled
• How configuration management will be performed
• How integrity of the performance measurement baselines will be maintained and
used
• The need and techniques for communication among stakeholders
• The selected project life cycle and project phases if any
• Key management reviews for content, extent, and timing to facilitate addressing
open issues and pending decisions.
• Output of all the planning processes (Baselines, …)

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 Project Integration Management

4.3 Direct and Manage

Project Execution
Executing the work defined in
the project management plan to
achieve the project’s
requirements defined in the
project scope statement
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 Direct and Manage Project Execution
1. Perform activities to accomplish project objectives;
2. Create project deliverables to meet the planned project work;
3. Provide, train, and manage the team members assigned to the project;
4. Obtain, manage, and use resources including materials, tools, equipment,
and facilities;
5. Implement the planned methods and standards;
6. Establish and manage project communication channels, both external and
internal to the project team;
7. Generate work performance data, such as cost, schedule, technical and
quality progress, and status to facilitate forecasting;
8. Issue change requests and implement approved changes into the project’s
scope, plans, and environment;
9. Manage risks and implement risk response activities;
10. Manage sellers and suppliers;
11. Manage stakeholders and their engagement;
12. Collect and document lessons learned and implement approved process
improvement activities.
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 Project Integration Management

4.4 Monitor and Control

Project Work
Monitoring and controlling the
processes used to initiate, plan,
execute, and close a project to
meet the performance
objectives defined in the project
management plan
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 Monitor and Control Project Work
• Comparing actual project performance against the project management
plan;
• Assessing performance to determine whether any corrective or preventive
actions are indicated, and then recommending those actions as necessary;
• Identifying new risks and analyzing, tracking, and monitoring existing project
risks to make sure the risks are identified, their status is reported, and that
appropriate risk response plans are being executed;
• Maintaining an accurate, timely information base concerning the project’s
product(s) and their associated documentation through project completion;
• Providing information to support status reporting, progress measurement,
and forecasting;
• Providing forecasts to update current cost and current schedule information;
• Monitoring implementation of approved changes as they occur;
• Providing appropriate reporting on project progress and status to program
management when the project is part of an overall program.

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 STEPS OF PROJECT CHANGES
1. Prevent the root cause of changes
2. Identify change
3. Look at the impact of the change
4. Create a change request
5. Perform integrated change control
a. Assess the change
b. Look for options
c. Change is approved or rejected
d. Update the status of the change in the change control system
6. Adjust the project management plan, project documents, and
baselines
7. Manage stakeholders' expectations by communicating the change
to stakeholders affected by the change
8. Manage the project to the revised project management plan and
project documentation.
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 Project Integration Management

4.5 Integrated Change

Control
Reviewing all change requests,
approving changes, and
controlling changes to the
deliverables and organizational
process assets
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 Project Integration Management
4.6 Close Project or Phase

Finalizing all activities across all

of the Project Management
Process Groups to formally
close the project or a project
phase

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 Executing

Deliverables

QC

Validated
Deliverables
Validte Scope

Accepted
Deliverables

Close the Project

Final Product

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 Administrative Closure

1.Collecting project records

2.Analyzing project success or failure

3.Gathering lessons learned

4.Archiving project information

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 Contract Closure

Includes all activities and interactions needed to

settle and close any contract agreement established
for the project, as well as define those related
activities supporting the formal administrative
closure of the project.
Product verification
all work completed correctly and satisfactorily

Formal Administrative closure

updating of contract records to reflect final results
and archiving that information for future use

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 Closing Steps
1. Confirm that all the requirements in the project
have been met.
2. Verify and document that the project, or project
phase, meets completion or exit criteria set in
place during the planning process group.
3. Obtain formal (legal) sign-off of the product of
the project from the customer.
4. Document the reasons for early termination (if).
5. Make final payments and complete cost
records.

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 Closing Steps
6. Gather lessons learned.
7. Update project records.
8. Ensure all the project management
processes are complete.
9. Update corporate processes, procedures
and templates based on lessons learned.
10.Add new skills acquired to team
members’ human resource record.

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 Closing Steps
11.Perform procurement audit.
12.Develop closure procedure.
13.Complete contract closure and
administrative closure.
14.Analyze and document the success and
effectiveness of the project.
15.Create and distribute final report of
project performance.

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 Closing Steps
16.Index and archive project records.
17.Measure customer satisfaction.
18.Hand off the completed project
deliverables to operations and
maintenance.
19.Release resources.
20.Celebrate.

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 SESSION K

14- PROFESSIONAL
RESPONSBILITY

15- THE EXAM

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 Professional Responsibility

1 ENSURE INDIVIDUAL INTEGRITY

CONTRIBUTE TO THE PROJECT
2
MANAGEMENT KNOWLEDGE BASE

3
ENHANCE PERSONAL PROFESSIONAL
COMPETENCE

4
PROMOTE INTERACTION AMONG
STAKEHOLDERS
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1. ENSURE INDIVIDUAL INTEGRITY
1.1 Tells the truth in reports, conversations and other
communications
1.2 Follow copyright and other laws
1.3 Do not divulge company data to unauthorized parties
1.4 Values and protects intellectual property
1.5 Do not put personal gain over the needs of the project
1.6 Prevent conflicts of interest or the appearance of conflicts of
interest and deal with them when they do occur
1.7 Do not give or take bribes or inappropriate gifts
1.8 Treat everyone with respect
1.9 Follow PMI’s Code of Professional Responsibility
1.10 Do the right thing
1.11 Follow the right process
1.12 Report violations of law, business policies, ethics and other
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2. CONTRIBUTE TO THE PROJECT
MANAGEMENT KNOWLEDGE BASE
• 2.1. Shares lessons learned from the project with
other project managers in the company
• 2.2. Writes articles about project management
• 2.3. Supports the education of other project
managers and stakeholders about project
management
• 2.4. Coaches or mentors other project managers
• 2.5. Performs research to discover best practices for
the use of project management and shares the
results with others
• 2.6. Performs research on projects done within the
company for the purpose of calculating
performance metrics
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 3. ENHANCE PERSONAL
PROFESSIONAL COMPETENCE
• 3.1. Work to understand personal
strengths and weaknesses
• 3.2. Continue to learn
• 3.3. Plan professional development
• 3.4. Constantly look for new
information and practices that will -
help the company or its projects
• 3.5. Continue to learn about the work
industry

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 4. PROMOTE INTERACTION
AMONG STAKEHOLDERS
4.1. Balance Stakeholders Interests
4.2. Resolve Competing Interests
4.3. Deal with problems and conflicts as
they arise
4.4. Interact with team and stakeholders
in a professional and cooperative
manner
4.5. Identify and Understand cultural
differences
4.6. Uncover Communication preferences
when identifying stakeholders
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 DAY

15- THE EXAM

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 THE EXAM
Domain % Number of
Questions

Initiating 11.59 20 / 23

Planning 22.7 40 / 45

Executing 27.5 48 / 55

Controlling 21.03 37 / 42

Closing 8.57 15 / 17

Professional responsibility 8.61 15 / 18

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 THE EXAM (Sep 2011)
Domain % Number of
Questions

Initiating 13 26

Planning 24 48

Executing 30 60

Controlling 25 50

Closing 8 16

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 Exam Tips
• What is the question?
• Is asking about process, process group,
knowledge area, input, output or Tools?
• Think large projects not your own.
• Imagine that you are a project manager
for PMI company.
• You are in a matrix organization.
• When asking about the advantage of
organization type, compare to functional.
• Work to the project management plan.
•Be proactive, adjust and guide.
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 Exam Tips
• Team member s know technical better than the project
manager.
• Direct the team in the early stages of the project.
• You always close out the project, or the project phase,
no matter it is completed or terminated.
• Project closure steps:
• Understand the basic ITTO and memorize the
secondary ones.
• Project management methodology relates to how you
will use project management on the project, or, what
parts of the PMBOK guide you will use on your project.
• PMIS All the software available in your company. It
helps to submit and track changes, monitor and control
project activities .
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 4- INITIATING PROJECTS
Initiating has 5 tasks associated with it

Conduct project selection methods to evaluate the feasibility of new products or

1 services

Identify key stakeholders and perform analysis to gain buy-in and requirements for
2
the success of the project.

3 Define the scope of the project based on the organization need to meet the
customer project expectations.

Develop the project charter and review it with key stakeholders to confirm project
4
scope, risks, issues, assumptions and constraints as well as obtain project charter
approval from the project sponsor.

5 Identify and document high level risks, assumptions and constraints using
historical data and expert judgment.

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 Planning the Project
Planning has 6 tasks associated with it
Identify key project team members and define roles and responsibilities to create a
1 project organization structure to develop a communication plan.

Create the work breakdown structure with the team to develop the cost, schedule,
2 resource, quality and procurement plans.

3 Identify project risks to define risk strategies and develop the risk management
plan.

Obtain project plan approval from the customer and conduct a kick off meeting
4 with all key stakeholders.

5 Define and record detail project requirements, constraints and assumptions with
the stakeholders to establish the project deliverables.

6 Develop the change management plan to define how changes will be handled to
manage the triple constraints.

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 Executing the Project
Executing has 8 tasks associated with it
Manage proactively the resource allocation by ensuring that appropriate resources
1 and tools are assigned to the tasks according to the project plan.

2 Execute the tasks defined in the project plan in order to achieve the project goals.

3 Ensure a common understanding and set expectations through communication to

align the stakeholders and team members.
Improve team performance by building team cohesiveness, leading, mentoring,
4 training, and motivating in order to facilitate cooperation, ensure project efficiency
and boost morale.

5 Implement a quality management plan to ensure that work is being performed

according to required quality standards.

6 Implement approved changes according to the Change Management Plan.

7 Obtain project resources in accordance with a procurement plan.

8 Implement the approved actions and workarounds required to minimize the impact
of project risks.

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 Controlling the Project
Controlling has 4 tasks associated with it

1 Measure project performance using appropriate tools and techniques.

2 Verify and manage changes to the project scope, project schedule and project
costs as defined in the change management plan.

3 Monitor the status of all identified risks, identify any new risks, take corrective
actions and update the risk response plan.

Ensure the project deliverables conform to quality standards established in the

4 project quality plan.

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 CLOSING PROJECTS
Closing has 7 tasks associated with it

1 Formalize and obtain final acceptance for the project.

2 Identify, document and communicate lessons learned.

Archive and retain project records, historical information and documents (e.g.,
project schedule, project plan, lessons learned, surveys, risk and issues logs, etc.)
3 in order to retain organizational knowledge, comply with statutory requirements,
and ensure availability of data for potential use in future projects and
internal/external audits.
Obtain financial, legal and administrative project closure (e.g., final payments,
4
warranties, contract signoff).

5 Release all project resources and provide performance feedback.

6 Create and distribute final project report.

7 Measure customer satisfaction at the end of the project.

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 Professional Responsibility
Professional responsibility has 4 tasks associated with it

Ensure individual integrity and professionalism by adhering to legal requirements

1 and ethical standards in order to protect community and all stakeholders

Contributing to the project management knowledge base by sharing lessons

learned, best practices, research, etc. within appropriate communities in order to
2
improve the quality of project management services, build capabilities of
colleagues, and advance the profession

3 Enhance individual competence by increasing and applying knowledge to improve

services

Balance stakeholders ’interests by recommending approaches that strive for fair

4
resolution in order to satisfy competing needs and objectives

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