Project Integration Management

The Key to Overall Project Success: Good Project

Integration Management

 Project managers must coordinate all of the other knowledge areas

throughout a project‘s life cycle
 Many new project managers have trouble looking at the ―big picture‖ and
want to focus on too many details
 Project integration management is not the same thing as software integration
 Project integration management includes the processes required to
ensure that the various elements of the project are properly
coordinated.
 It includes the processes needed to identify, define, combine, unify and
coordinate the various processes and project management activities
within the Project Management Process Groups.
2
Project Integration Management processes
 Project Integration Management processes, which are as follows:
 1. Develop Project Charter—The process of developing a document that
formally authorizes the existence of a project and provides the project
manager with the authority to apply organizational resources to project
activities.
 2. Develop Project Management Plan—The process of defining,
preparing, and coordinating all subsidiary plans and integrating them into a
comprehensive project management plan. The project‘s integrated baselines
and subsidiary plans may be included within the project management plan.
 3 Direct and Manage Project Work—The process of leading and
performing the work defined in the project management plan and
implementing approved changes to achieve the project‘s objectives.
Project Integration Management processes
 4 Monitor and Control Project Work—The process of tracking,
reviewing, and reporting project progress against the performance objectives
defined in the project management plan.
 5 Perform Integrated Change Control—The process of reviewing all
change requests; approving changes and managing changes to deliverables,
organizational process assets, project documents, and the project management
plan; and communicating their disposition.
 6 Close Project or Phase—The process of finalizing all activities across all
of the Project Management Process Groups to formally complete the phase
or project.
Project Integration Management Process
 Integration Management Process Includes:
 Develop Project charters
 Develop Preliminary Project Scope Statement
 Develop Project Management Plan
 Direct and Manage Project Execution
 Monitor and Control Project Work
 Integrated Change Control
 Close Project
Develop Project charters
 Developing Project Charter-Part of Project Initiation Phase
 Project Charter authorize PM to start the project and to use organizational
resources as required
 Document that formally recognizes the existence of a project and provides direction
on project objectives and management
Develop Project charters
It should address following
 Requirements that satisfy customer, sponsor and other stakeholder needs, wants and
expectations
 Business needs, high level project description or product requirements that the
project is undertaken to address
 Project purpose or justification
 Assigned Project Manager and authority level
 Summary Milestone schedule
Develop Project charters
It should address following:
 Stakeholder Influences
 Functional organization and their mode of participation
 Organizational, environment and external assumptions/contraints
 Business case justifying the project , including Return on Investment
 Summary Budget
Project Charters

Develop Project Charter Overview

INPUTS TOOLS& TECHNIQUES OUTPUT

1. ContractAgreement 1. Project Selection

2. Statement of Work Methods
3. Enterprise 2. Project Management
Environmental Factors Methodology
4. Organizational Process 3. Project Management 1. Project Charter
Develop Project charters
Project Charter: Inputs
 Project Statement of Work: Business need, Product scope
description, Strategic plan
 Business Case: Market demand, Organizational need, Customer request,
Technological advance, Legal requirement, Ecological impacts, Social need
 Agreements
 Enterprise Environmental Factors: Governmental standards, industry
standards, or regulations (e.g. codes of conduct, quality standards, or worker
protection standards), organizational culture and structure, marketplace
conditions, etc.
 Organizational Process Assets: Organizational standard processes,
policies, and process definitions, templates, and historical information and
lessons learned knowledge base
Develop Project Charter: Tools and Techniques
 Expert Judgment: Expert judgment is applied to all technical and
management details during this process; could be consultants, stakeholders,
professional and technical associations, industry groups, Subject matter
experts (SME), and Project management office (PMO).
 Facilitation Techniques: Brainstorming, conflict resolution, problem solving,
and meeting management are examples of key techniques used by facilitators
to help teams and individuals accomplish project activities.
Develop Project Charter: Outputs-Project Charter
 The project charter is the document issued by the project initiator or
sponsor that formally authorizes the existence of a project and provides the
project manager with the authority to apply organizational resources to
project activities.
 It documents the business needs, assumptions, constraints, the understanding
of the customer‘s needs and high-level requirements, and the new product,
service, or result that it is intended to satisfy. E.g. Project purpose or
justification, Measurable project objectives and related success criteria, High-
level requirements, Assumptions and constraints, High-level project
description and boundaries, High-level risks, Summary milestone schedule,
Summary budget, Stakeholder list, Project approval requirements Assigned
project manager, responsibility, and authority level, and Name and authority of
the sponsor or other person(s) authorizing the project charter.
The Project Charter
Project Charter – describes
 Project Need and Perceived Opportunity
 Key Goals and Objectives
 Basic Project Scope
 Identified tangible and intangible benefits from the project
 Specifies project evaluation criteria
Initiating an IT Project

 Strategic Plan of an Organization (Long term business

objectives)
 IT Projects should support strategic and financial
business objectives
 Identifying Project Potentials and Initial Planning
 (Feasibility Study/If available to check system
architecture is well elicited)
 Business Area Analysis
 Project Potentials and Credibility
 Select IT Projects and assign Resources
 Start developing Project Charter by using all
findings statedabove
Statement of Work
 A Narrative description of products or services to be supplied under contract is
called statement of work.
 Statement of Work Includes:
 Business Need (Due to Market Demand/Customer Request, Technological
Advancement, Legal Requirement, Social Needs)
 Product Description: Known Outline/Characteristics of Product or Services
 Strategic Plan: Understand Scope, Vision and Goal and Logical Framework
Profit & Cost Relationship
Profit & Cost Relationship

 Different types of • Intangible Costs

Tangible Costs • Cost of Goodwill
 Capital Expenditure
• Intellectual Property
 Lease Costs
 Professional Services • Management Team
 Sullies and • Relationship
Consumables • Contracts
 Support Service Cost
(One-off Cost)
 Overhead cost
(Indirect Cost)
Project Selection Methods
 Constrained Optimization Methods (Mathematical Models)
 Benefit Measurement Methods
 Cost/Benefit Analysis
 Weighted Scoring Model
 Payback Period (PBP)
 Net Present Value (NPV)
 Profitability Index (PI)
Project Selection Methods

 At Breakeven Point
 Profit = Sales –
(Variable Expenses +
Fixed Expenses)
 Sales= Profit +
Variable expenses +
Fixed Expenses
Cost Benefit Analysis

Estimated Benefit = Total Projected Revenue-Total Budgeted Cost

Cost Benefit Ratio (BCR)

 Cost Benefit Ratio (BCR)= Present Value of Benefit (PBV)

/Initial Investment (I)
 Accept if BCR > 1, Reject if BCR < 1, Indifferent if BCR
=1
 Present Benefit = [(Revenue Earned with Project –
Cost of the Project –Operational Cost with the
Project) –(Revenue Earned with No Project –
Operational Cost with No Project)]
Weighted Scoring Mode

Project Weight=5 Weight=3 Weight=1 Total WeightedScore

Profit Marketabilit Easeto Selected

Potential y Produce/Serve Project

ProjectA 5 4 4 41

Project B 5 3 3 37
Payback Period
 Estimated Length of Time to Cover the Initial Investment into the project
 Management Prefers ‗Quick Payback Time‘
 Does not Consider Time Value of Money
NET Present Value
 NPV= Present Value of Cash Inflows –Initial Investment
 Present Value = Future Value/(1 + rate of Interest)^Time Period
 Selection Rule
 If NPV > 0 Accept
 If NPV < 0 Reject
 If NPV = 0 Indifferent
Profitability Index

 Profitability Index (PI)= NPV/Cost

 Projects with Higher PI will get Preference
Project Management Methodology
 Set of Project Management Process Groups their related control functions that are
consolidated and combined into a functioning unified whole
 Example: Standard Project Management Procedure for an ISO or CMMI practicing
organization
Project Management Information System
 Special Software to organize resource pools and have:
 Electronic Communication
 Project Information Archive
 Project Data Analysis
 Project Data Analysis and Reporting
 Project Decision Support System
 Project Activity Issue Tracking
 Configuration/Change Management
Expert Judgment
 Expertise from any group individual or organization to gain knowledge or training
and is available from many sources like
 Other Units in the Organization
 Consultants
 Stakeholders, including customer sponsors
 Professional and Technical Associations
 Industry Groups
Developing Project Management Plan

Project plan development uses the outputs of the other planning

processes, including strategic planning, to create a consistent, coherent
document that can be used to guide both project execution and project
control.
The project plan is used to:
 Guide project execution
 Document project planning decisions regarding alternative chosen
 Facilitate communication among stakeholders
 Define key management reviews as to content, extent, and timing
 Provide a baseline for progress measurement and project control
Develop Project Management Plan

 Develop Project Management Plan is the process of defining, preparing, and

coordinating all subsidiary plans and integrating them into a comprehensive project
management plan.
 The key benefit of this process is a central document that defines the basis of all
project work.
Develop Project Management Plan: Inputs
 Project Charter: The project manager uses the project charter as the starting
point for initial planning throughout the Initiating Process Group.
 Outputs from Other Processes: Outputs from many of the other processes are
integrated to create the project management plan.
 Enterprise Environmental Factors and Organizational Process Assets
Develop Project Management Plan: Tools and
Techniques
 Expert Judgment: When developing the project management plan, expert
judgment is utilized to: Tailor the process, Develop technical and management details,
Determine resources and skill needed, Prioritize the work on the , etc.
 Facilitation Techniques: Facilitation techniques have broad application within
project management processes and are used to guide the development of the project
management plan. Brainstorming, conflict resolution, problem solving, and meeting
management are key techniques used by facilitators to help teams and individuals
achieve agreement to accomplish project activities.
Develop Project Management Plan: Outputs
 Project Management Plan: The project management plan is the document that
describes how the project will be executed, monitored, and controlled. It integrates
and consolidates all of the subsidiary plans, such as scope, schedule, and cost
management plans and baselines from the planning processes.
Direct and Manage Project Work

 Direct and Manage Project Work is the process of leading and performing the work
defined in the project management plan and implementing approved changes to
achieve the project‘s objectives.
 The key benefit of this process is that it provides overall management of the project
work.
Direct and Manage Project Work: Inputs
 Project Management Plan
 Approved Change Requests: Approved change requests are an output of the
Perform Integrated Change Control process, and include those requests reviewed and
approved for implementation by the change control board (CCB). The approved
change request may be a corrective action, a preventative action, or a defect repair.
 Enterprise Environmental Factors and Organizational Process Assets: The
Direct and Manage Project Work process is influenced by enterprise environmental
factors and Organizational Process Assets.
Direct and Manage Project Work: Tools and Techniques
 Expert Judgment: Expert judgment is used to assess the inputs needed to direct and
manage execution of the project management plan. Such judgment and expertise are
applied to all technical and management details during this process.
 Project Management Information System: provides access to tools, such as a
scheduling tool, a work authorization system, a configuration management system, an
information collection and distribution system, or interfaces to other online
automated systems. Automated gathering and reporting on key performance
indicators (KPI) can be part of this system.
 Meetings: Meetings are used to discuss and address pertinent topics of the project
when directing and managing project work. Meetings tend to be one of three types:
Information exchange; Brainstorming, option evaluation, or design; or Decision
making.
Direct and Manage Project Work: Outputs
 Deliverables: Deliverables are typically tangible components completed to meet
the project objectives and can include elements of the project management plan.
 Work Performance Data: Work performance data are the raw observations
and measurements identified during activities being performed to carry out
the project work e.g. key performance indicators, technical performance measures,
start and finish dates of schedule activities, number of change requests, number of
defects, actual costs, and actual durations, etc.
 Change Requests: A change request is a formal proposal to modify any
document, deliverable, or baseline. E.g. Corrective action, Preventive action,
Defect repair, updates.
 Project Management Plan Updates: Elements of the project management plan,
such as scope, requirements, schedule, cost, quality, and risk management that may
be updated
Direct and Manage Project Work activities
 Direct and Manage Project Work activities include, but are not limited to:
 Perform activities to accomplish project objectives;
 Create project deliverables to meet the planned project work;
 Provide, train, and manage the team members assigned to the project;
 Obtain, manage, and use resources including materials, tools, equipment, and facilities;
 Implement the planned methods and standards;
 Establish and manage project communication channels, both external and internal to
the project team;
Direct and Manage Project Work activities
 Generate work performance data, such as cost, schedule, technical and quality
progress, and status to facilitate forecasting;
 Issue change requests and implement approved changes into the project‘s scope,
plans, and environment;
 Manage risks and implement risk response activities;
 Manage sellers and suppliers;
 Manage stakeholders and their engagement; and
 Collect and document lessons learned and implement approved process
improvement activities.
Monitor & Control ProjectWork
 TrackingProject Progress-PMWalkThrough
KeyTasks:
 Save aBaseline
 Collect Actual Data
 Update and Refresh Project Plan
 Analyze dependencies and constraints
Monitor & Control ProjectWork
 TrackingProject Progress-PMWalkThrough
KeyTasks:
 Analyze Project Plan
 Study Variance for Actual Start,Actual Finish,Actual Work, remainingWork)
 Filtered DelayedTasks
 Identify CriticalTasks
 Predict Risks, Costs, Resource,Work Completion
 Take Decisions on CorrectiveActions
 Share Project Status
Monitor and Control Project Work
 Monitor and Control Project Work is the process of tracking, reviewing, and
reporting the progress to meet the performance objectives defined in the project
management plan.
 The key benefit of this process is that it allows stakeholders to understand the
current state of the project, the steps taken, and budget, schedule, and scope
forecasts.
Monitor and Control Project Work: Inputs
 Project Management Plan: Monitoring and controlling project work involves
looking at all aspects of the project. Subsidiary plans, such as scope, schedule, cost,
quality, HRM, procurement and risk within the project management plan form the
basis for controlling the project.
 Schedule Forecasts: The schedule forecasts are derived from progress against the
schedule baseline and computed time estimate to complete (ETC). This is typically
expressed in terms of schedule variance (SV) and schedule performance index (SPI).
 Cost Forecasts: The cost forecasts are derived from progress against the cost
baseline and computed estimates to complete (ETC). This is typically expressed in
terms of cost variance (CV) and cost performance index (CPI).
Monitor and Control Project Work: Inputs
 Validated Changes: Approved changes that result from the Perform Integrated
Change Control process require validation to ensure that the change was
appropriately implemented.
 Work Performance Information: Work performance information is the
performance data collected from various controlling processes, analyzed in context,
and integrated based on relationships across areas.
 Enterprise Environmental Factors and Organizational Process Assets: EEF
and he organizational process assets that can influence the Monitor and Control
Project Work process
Monitor and Control Project Work: Tools and
Techniques
 Expert Judgment: Expert judgment is used by the project management team to
interpret the information provided by the monitor and control processes. The
project manager, in collaboration with the team, determines the actions required to
ensure that project performance matches expectations.
 Analytical Techniques: Analytical techniques, such as regression analysis, grouping,
root case analysis, tend analysis, and variance analysis, are applied in project
management to forecast potential outcomes based on possible variations of
project or environmental variables and their relationships with other variables.
Monitor and Control Project Work: Tools and
Techniques
 Project Management Information System: PMIS is part of enterprise
environmental factors, provides access to automated tools, such as scheduling, cost,
and resourcing tools, performance indicators, databases, project records, and
financials used during the Monitor and Control Project Work process
 Meetings: Meetings may be face-to-face, virtual, formal, or informal. types of
meetings include, but are not limited to, user groups and review meetings.
Monitor and Control Project Work: Outputs
 Change Requests: As a result of comparing planned results to actual results,
change requests may be issued to expand, adjust, or reduce project scope, product
scope, or quality requirements and schedule or cost baselines. Changes can impact
the project management plan, project documents, or product deliverables. Changes
may include corrective action, preventive action, and defect repair.
 Work Performance Reports: Work performance reports are the physical or
electronic representation of work performance information compiled in project
documents, intended to generate decisions, actions, or awareness.
Monitor and Control Project Work: Outputs
 Project Management Plan Updates: Changes identified during the Monitor and
Control Project Work process may affect the overall project management plan
elements such as scope, schedule, cost, and quality.
 Project Documents Updates: Project documents that may be updated could be
Schedule and cost forecasts and Work performance reports.
Perform Integrated Change Control
 Perform Integrated Change Control is the process of reviewing all change requests;
approving changes and managing changes to deliverables, organizational process
assets, project documents, and the project management plan; and communicating
their disposition.
 It reviews all requests for changes or modifications to project documents,
deliverables, baselines, or the project management plan and approves or rejects the
changes.
 Configuration control is focused on the specification of both the deliverables and the
processes; while change control is focused on identifying, documenting, and
approving or rejecting changes to the project documents, deliverables, or
baselines.
Perform Integrated Change Control
Perform Integrated Change Control: Inputs
 Project Management Plan: Elements of the project management plan that may be
used include Scope management plan, which contains the procedures for scope
changes; Scope baseline, which provides product definition; and Change management
plan, which provides the direction for managing the change control process and
documents the formal change control board (CCB).
 Work Performance Reports: Work performance reports of particular interest to
the Perform Integrated Change Control process include resource availability,
schedule and cost data, and earned value management (EVM) reports, burnup or
burndown charts.
 Change Requests
 Enterprise Environmental Factors and Organizational Process Assets
Perform Integrated Change Control: Tools and
Techniques
 Expert Judgment
 Meetings
 Change Control Tools: In order to facilitate configuration and change management,
manual or automated tools may be used.
Perform Integrated Change Control: Outputs
 Approved Change Requests
 Change Log: A change log is used to document changes that occur during a project.
These changes and their impact to the project in terms of time, cost, and risk, are
communicated to the appropriate stakeholders.
 Project Management Plan Updates
 Project Documents Updates
Close Project or Phase
 Close Project or Phase is the process of finalizing all activities across all of the
Project Management Process Groups to formally complete the project or phase.
 The key benefit of this process is that it provides lessons learned, the formal ending
of project work, and the release of organization resources to pursue new endeavors.
Close Project or Phase Data Flow Diagram
Close Project or Phase: Inputs
 Project Management Plan: The project management plan becomes the
agreement between the project manager and project sponsor, defining what
constitutes project completion.
 Accepted Deliverables: Accepted deliverables may include approved product
specifications, delivery receipts, and work performance documents. Partial or interim
deliverables may also be included for phased or cancelled projects.
Close Project or Phase: Inputs
 Organizational Process Assets: The organizational process assets that can
influence the Close Project or Phase process include, but are not limited to Project
or phase closure guidelines or requirements (e.g., administrative procedures, project
audits, project evaluations, and transition criteria); and Historical information and
lessons learned knowledge base (e.g., project records and documents, all project
closure information and documentation, information about both the results of
previous project selection decisions and previous project performance information,
and information from risk management activities).
Close Project or Phase: Tools and Techniques
 Expert Judgment: Expert judgment is applied when performing administrative
closure activities. These experts ensure the project or phase closure is performed to
the appropriate standards. Expertise is available from many sources, including: Other
project managers within the organization, Project management office (PMO), and
Professional and technical associations.
 Analytical Techniques: Examples of analytical techniques used in project closeout
are: Regression analysis, and Trend analysis.
 Meetings: Meetings may be face-to-face, virtual, formal, or informal. This may include
project team members and other stakeholders. Types of meetings include lessons
learned, closeout, user group, and review meetings.
Close Project or Phase: Outputs
 Final Product, Service, or Result Transition
 Organizational Process Assets Updates: Project files, Project or phase closure
documents and Historical information
Administrative Closure Procedure
 During closing of project
 Ensure project plan has proper budget/time for closure
 Populate Project Archives like
 Indexed Project Reports
 Financial Records
 Update Historical Databases
 Formal Acceptance by Client
 Recommendation Support from Sponsors/Support
Organization
 Maintenance/Upgrade
 Trainings
 Lesson Learnt
Contract Closure Procedure
 Steps
 Verification of Contract requirement
 Formal Acceptance by Client
 Performance Evaluation by buyer of contract
 Performance evaluation by seller of contract
 Procurement Audit
 Update Project Files and historical Databases
Updated Organizational Process Assets
 Formal Acceptance documentation
 Project Files
 Project Closure Documentation
 Archiving is the last step
 Historical Information and lesson learnt