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CHAPTER 4 PROJECT INTEGRATION MANAGEMENT Ahmad H. Maharma PMP®
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Pmbok 4th edition chapter 4 - Project Integration Management

Jan 15, 2015

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Page 1: Pmbok 4th edition   chapter 4 - Project Integration Management

CHAPTER 4

PROJECT INTEGRATION MANAGEMENT

Ahmad H. Maharma PMP®

Page 2: Pmbok 4th edition   chapter 4 - Project Integration Management

PM Process Groups / KnowledgeArea Processes

Initiating Process Group

Planning Process Group Executing Process Group

Monitoring & Controlling Process Group

Closing Process Group

Project Develop Project Develop Project Management Direct and Manage Project Monitor and Control Project Close Project

CHAPTER 4Project Management Integration

Develop Project Charter

Develop Project Management Plan

Direct and Manage Project Execution

Monitor and Control Project WorkIntegrated Change Control

Close Project

Project Scope Management

Collect requirementsDefine ScopeCreate WBS

Verify ScopeControl Scope

Project Time Define Activity Schedule Control

PROJECT INTEGRATION MANAGEMENT

Project Time Management

Define Activity Sequence ActivityEstimating ResourceEstimating Duration Develop Schedule

Schedule Control

Project Cost Management

Estimating CostBudgeting Cost

Control Cost

Project Quality Management

Quality Planning Perform Quality Assurance Perform Quality Control

Project HR Management

Human Resources Planning Acquire Project TeamDevelop Project TeamManage Project Team

Ahmad H. Maharma PMP®

ProjectCommunications Management

Identify Stakeholders Plan Communications Distribute Information Manage stakeholders expectations

Performance Reporting

Project Risk Management

Plan Risk ManagementRisk IdentificationQualitative / Quantitative Risk Analysis

Risk Monitoring and Control

yRisk Response Planning

Project Procurement Management

Plan procurement Conduct procurement Administer Contract Close procurement

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Project Integration ManagementPlanningProcesses

Monitoring &Controlling Processes

Enter phase/Start project

Exit phase/End project

InitiatingProcesses

ClosingProcesses

ExecutingProcesses

Knowledge Process

Area Initiating Planning Executing Monitoring & Contol Closing

Scope

• Develop Project Ch t

• Develop Project Management Pl

• Direct and Manage Project E ti

• Monitor and Control Project WorkP f I t t d

• Close Project

Scope Charter Plan Execution • Perform IntegratedChange Control

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Project Integration Management Summary

4

Page 5: Pmbok 4th edition   chapter 4 - Project Integration Management

Project Integration Management

Project integration Management includes the processes and activities needed toidentify, define, combine, unify, and coordinate the various processes and projectmanagement activities within the Project Management Process Groupsmanagement activities within the Project Management Process Groups.

in the project management context, integration includes characteristics ofnification consolidation artic lation and integrati e actions that are cr cial tounification, consolidation, articulation, and integrative actions that are crucial to

project completion, successfully managing stakeholder expectations, and meetingrequirements.

Project integration Management entails making choices about resource allocation,making trade‐offs among competing objectives and alternatives, and managing theinterdependencies among the project management Knowledge Areasinterdependencies among the project management Knowledge Areas.

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Project Integration Management ProcessesThe Project integration Management processes are as follows:

4.1 Develop Project Charter‐The process of developing adocument that formally authorizes a project or a phase anddocumenting initial requirements that satisfy the stakeholder'sdocumenting initial requirements that satisfy the stakeholder sneeds and expectations.

4.2 Develop Project Management Plan ‐The process ofdocumenting the actions necessary to define, prepare,integrate and coordinate all subsidiary plansintegrate, and coordinate all subsidiary plans.

4.3 Direct and Manage Project Execution‐The process ofperforming the work defined in the project management planto achieve the project's objectives.

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Project Integration Management Processes4.4 Monitor and Control Project Work‐The process of tracking,

reviewing, and regulating the progress to meet theperformance objectives defined in the project managementperformance objectives defined in the project managementplan.

4.5 Perform Integrated Change Control‐The process ofreviewing all change requests, approving changes, andmanaging changes to the deliverables organizational processmanaging changes to the deliverables, organizational processassets, project documents, and the project managementplan.

4.6 Close Project or Phase‐The process of finalizing all activitiesacross all of the Project Management Process Groups toacross all of the Project Management Process Groups toformally complete the project or phase.

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Project Integration ManagementThe integrative nature of projects and project management can beThe integrative nature of projects and project management can beunderstood by thinking of other types of activities performed whilecompleting a project.

l f f d b hExamples of some activities performed by the project management teamare:• Analyze and understand the scope. This includes the project and productrequirements, criteria, assumptions, constraints, and other influencesrelated to a project, and how each will be managed or addressed withinthe project.p j

• Understand how to take the identified information and then brainstorm itinto a project management plan using a structured approach.

• Perform activities to produce project deliverables• Perform activities to produce project deliverables.• Measure and monitor all aspects of the project's progress and takeappropriate action to meet project objectives.

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Page 10: Pmbok 4th edition   chapter 4 - Project Integration Management

Project Selection Methods

System DescriptionAnalyze the predicted value of the completed projects in different ways.

Benefit Measurement Models (Economic Models)

yMay present the value in terms of:Benefit Cost Ratio (BCR)Return on Investment (ROI)P V l (PV) & N P V l (NPV)Models) Present Value (PV) & Net Present Value (NPV)Internal Rate of Return (IRR)Opportunity Cost

Uses different types of mathematical formulas and algorithms to

Mathematical Models (Constrained O ti i ti )

Uses different types of mathematical formulas and algorithms to determine the optimal course of action. Linear programmingNonlinear programmingDynamic programmingOptimization) Dynamic programmingInteger ProgrammingMulti‐objective programming

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Benefit Measurement Models (Economic Models)

Accounting Concept Description Keys for Project Selection Notes

Present value (PV) Value today of future cash flows. The higher the PV, the better. PV= FV/(1+r)n

Net present value (NPV)Present value of cash inflow (benefits) minus present value of cash outflow (costs).

A negative NPV is unfavorable. The higher the NPV, the better.

Accounts for different project durations.

I t l t f t (IRR)The interest rate that makes th t t l f ll The higher the IRR, the  The return that a company would Internal rate of return (IRR) the net present value of all cash flow equal zero.

g ,better. 

p yearn if it invests in the project.

Payback periodThe number of time periods needed to hit the break‐even point.

The lower the payback period, the better.

Benefit cost ratio (BCR)

A ratio identifying the relationship between the cost and benefits of a proposed project.

A BCR less than 1 is unfavorable. The higher the BCR, the better.

The difference in return b hOpportunity cost between a chosen investment and one that is passed up.

Sunk costs A cost that has been incurred and cannot be reversed.

This should not be a factor in project decisions.

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Present Value (PV) and (NPV)• Present Value (PV) – Present Value of future Cash flows. Higher the better.Present Value (PV)  Present Value of future Cash flows. Higher the better.

• NOTE: present value and NPV are only mention once or twice on the exam• You will not have to calculate it, nor know formula, just understand the concept

• Amount of money is always more valuable sooner than later, as this enables to take advantage of investment opportunities.

• Higher PV more preferable project. A potential investment project is selected, if value of NPV is >= ZERO

• PV = FV / (1 + i) n

• Example:Example:• Project X is expected to make $50,000 in two years. Project Y is expected to make 

to $80,000 in three years. If the cost of capital is 5 percent, which project to choose?

• Using PV formula, PV = FV / (1 + i) n , PV for Project X is $69,107 and Project Y is $45,351.• Project Y will return the highest investment to the company and should be chosen over Project X.

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Net Present Value Examplep

Note that o e atotals are equal, butNPVs arenot becausenot because of the time value of moneyy

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Internal Rate of Return (IRR)• This is just another way of interpreting the benefit from the project.This is just another way of interpreting the benefit from the project.

• It looks at the cost of the project as the capital investment and translates the profit into the interest rate over the life of that investment. 

• Calculations for IRR are not part of this certification. It is enough if you understand that the greater the value for IRR, the more beneficial the 

• Example:• You have two projects to choose from: Project A with an IRR of 21%, or project B with an IRR of 

15%, which once you prefer?

• Answer: Project A.

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Benefit Cost Ratio

• This is the value obtained by dividing the benefit by the cost.

• The greater the value, the more attractive the projectThe greater the value, the more attractive the project • A benefit cost ration >1 means the benefit are grater than the cost• A benefit cost ration <1 means the cost are grater than the benefit• A benefit cost ration =1 means the benefit are equal the cost

• For example, if the projected cost of producing a product is 10,000$, and you expect to sell it for 40 000$40,000$, 

then the BCR is equal to 40,000$/10,000$, which is equal to 4. For the benefit to exceed cost, the BCR must be greater than 1.

Example:If BCR of project A is 2.3, and the BCR of project B is 1.7, which project would you select?

Answer : Project A

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Payback Period 

• The payback period is the length of time required to recover the initial cash outlay on the project.

• For example, if a project involves a cash outlay of 600,000$ and generates cash inflows of.For example, if a project involves a cash outlay of 600,000$ and generates cash inflows of. 100000$, 150000$, 150000$ and 200000$ in the first, second, third and fourth years respectively, 

• its pay back period is 4 years because the sum of cash flows during the four years is equal to the i iti l tl A di t th b k it iinitial outlay. According to the payback criterion, 

• the shorter the payback period, the more desirable the project.

• Payback period = cost of period or investment / Annual cash flow

• Example:• You have two projects to choose from , Project A with payback period of 6 months or project B 

with payback period of 18 months, which one would you prefer?

• Answer : Project AAnswer : Project A

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Charting the Payback Period

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Economic Value Added (EVA)

• Economic Value Added (EVA) – Value added to organization by the project

• Economic value should rarely appear in questions or choicesEconomic value should rarely appear in questions or choices 

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Opportunity Cost.

• Opportunity cost (opportunity lost) is the NPV of the next best project, you are not doing, because you have decided to invest in a project.

• Let us assume that you have 100,000 rupees and you are investing this money in project ‘A’, whose NPV=200,000 and because of this you are unable to do project ‘B’, whose NPV=150,000 or project ‘C’, whose NPV = 120,000, then the opportunity cost is 150,000, which is the NPV of project ‘B’, which is the next best option after ‘A’.project  B , which is the next best option after  A.

• Example:• You have two projects to choose from: Project A with an NPV of 45,000$, or project B with an NPV 

$of 85,000$, what Is the opportunity cost of selecting project B ?

• Answer : 45,000$

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Sunk Cost

• Sunk Cost – Cost already incurred. This should not be taken into account while taking decision.

• Are expended costs; accounting standards that sunk costs should not be considered when deciding whether to continue with a troubled project.

Example :You have project with an initial budget of 1,000,000 $ , you are halfway through the 

project and have spend 2,000,000 $, do you consider the 1,000,000 $ over budget when determining whether to continue with the project.

• Answer: NO, the money spent is gone

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Law of Diminishing return

• Law of Diminishing return – After a point, adding more resources will not have proportional benefit.

• Example: • A single programmer may produce at 1 module per hour. With 

second a programmer the two may produce 1.75 module/ hour. With third programmer, the group may produce 2.25 modules/With third programmer, the group may produce 2.25 modules/ hour  

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Working Capital

• Working Capital – Current assets minus current liabilities.

The amount of money the company has available to invest, including investmentin project

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Depreciation• Depreciation Assets loose value over useful life• Depreciation – Assets loose value over useful life.

D i ti th d b d ti• Depreciation methods based on timeStraight line methodDeclining balance methodDeclining balance methodSum‐of‐the‐years'‐digits method

Depreciation based on use (activity)

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Straight line depreciation• Depreciation = (Cost ‐ Residual value) / Useful lifeDepreciation = (Cost  Residual value) / Useful life

[Example, Straight line depreciation]

On April 1, 2011, Company A purchased an equipment at the cost of $140,000. This equipment is estimated to have 5 year useful life. At the end of the 5th year, the salvage value (residual value) will be $20,000. Company A recognizes depreciation to the nearest whole month. Calculate the depreciation expenses fordepreciation to the nearest whole month. Calculate the depreciation expenses for 2011, 2012 and 2013 using straight line depreciation method.

Depreciation for 2011($140 000 $20 000) 1/5 9/12 $18 000= ($140,000 ‐ $20,000) x 1/5 x 9/12 = $18,000

Depreciation for 2012= ($140,000 ‐ $20,000) x 1/5 x 12/12 = $24,000( )

Depreciation for 2013= ($140,000 ‐ $20,000) x 1/5 x 12/12 = $24,000

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Double declining balance depreciation

Y Book Value Depreciation  Depreciation  Book Value at Year at the beginningpRate

pExpense the year‐end

2011 $140 000 40% $42 000 (*1) $98 0002011 $140,000 40% $42,000 ( 1) $98,000

2012 $98,000 40% $39,200 (*2) $58,800

2013 $58,800 40% $23,520 (*3) $35,280

2014 $35,280 40% $14,112 (*4) $21,168

2015 $21,168 40% $1,168 (*5) $20,000

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Double declining balance depreciation

(*1) $140,000 x 40% x 9/12 = $42,000(*2) $98,000 x 40% x 12/12 = $39,200(*3) $58,800 x 40% x 12/12 = $23,520(*4) $35 280 40% 12/12 $14 112(*4) $35,280 x 40% x 12/12 = $14,112(*5) $21,168 x 40% x 12/12 = $8,467

--> Depreciation for 2015 is $1,168 to keep book value same as p $ , psalvage value.

--> $21,168 - $20,000 = $1,168 (At this point, depreciation stops.)

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Sum‐of‐the‐years‐digits methodDepreciation expense = (Cost ‐ Salvage value) x Fraction

Fraction for the first year = n / (1+2+3+...+ n)Fraction for the second year = (n‐1) / (1+2+3+...+ n)Fraction for the third year = (n‐2) / (1+2+3+...+ n)...Fraction for the last year = 1 / (1+2+3+ + n)Fraction for the last year   1 / (1+2+3+...+ n)

n represents the number of years for useful life.

[Example, Sum‐of‐the‐years‐digits method]

C A h d th f ll i t J 1 2011Company A purchased the following asset on January 1, 2011.What is the amount of depreciation expense for the year ended December 31, 2011?Acquisition cost of the asset ‐‐> $100,000Useful life of the asset ‐‐> 5 yearsResidual value (or salvage value) at the end of useful life ‐‐> $10,000Depreciation method ‐‐> sum‐of‐the‐years'‐digits method

Calculation of depreciation expenseSum of the years' digits = 1+2+3+4+5 = 15Depreciation for 2011 = ($100,000 ‐ $10,000) x 5/15 = $30,000Depreciation for 2012 = ($100,000 ‐ $10,000) x 4/15 = $24,000Depreciation for 2013 = ($100,000 ‐ $10,000) x 3/15 = $18,000Depreciation for 2014 = ($100,000 ‐ $10,000) x 2/15 = $12,000Depreciation for 2015 = ($100,000 ‐ $10,000) x 1/15 = $6,000

Sum of the years' digits for n years = 1 + 2 + 3 + ...... + (n‐1) + n = (n+1) x (n / 2)

Sum of the years' digits for 500 years = 1 + 2 + 3 + ...... + 499 + 500 = (500 + 1) x (500 / 2) = (501 x 500) / 2 = 125,250

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Project selection methods – exercise 

Accounting Concept Project A Project B Answer

Net present value (NPV) 1,000,000 $ 75,000 $ A

Internal rate of return (IRR) 13 % 17 % B

Payback period 16 months 18 months A

Benefit cost ratio (BCR) 2.27 1.3 A

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Strategic Planning & Project Selection• Strategic planning involves determining long‐term objectives, 

predicting future trends, and projecting the need for new products and services

• Organizations often perform a SWOT analysisA l i St th W k O t iti d Th t– Analyzing Strengths, Weaknesses, Opportunities, and Threats

• Very important to have managers from outside the IT dept assist in the planning process as they can help to understand organizational 

i d id if h b i h hstrategies and identify the business areas that support them

• As part of strategic planning, organizations:– Identify potential projectsIdentify potential projects– Use realistic methods to select which projects to work on– Formalize project initiation by issuing a project charter

29

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Develop Project CharterProjects are authorized by someone external to the project such as a sponsor,PM0, or portfolio steering committee.

The project initiator or sponsor should be at a level that is appropriate tofunding the project.

They will either create the project charter or delegate that duty to the projectmanager.

The initiator's signature on the charter authorizes the project.

P j t th i d d t i t l b i d t l i flProjects are authorized due to internal business needs or external influences.

This usually triggers the creation of a needs analysis, business case, ordescription of the situation the project will address.Chartering a project links the project to the strategy and ongoing work of theorganization.

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4.1.1 Develop Project Charter: lnputs1 Project Statement of Work: . .1 Project Statement of Work:

The statement of work (SOW) is a narrative description ofproducts or services to be delivered by the project.

For internal projects, the project initiator or sponsor providesp j , p j p pthe statement of work based on business needs, product, orservice requirements.

For external projects, the statement of work can be receivedfrom the customer as part of a bid document, for example,request for proposal, request for information, request for bid, oras part of a contract.

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4.1.1 Develop Project Charter: lnputsThe SOW references:The SOW references:

• Business need: An organization's business need may be based on aBusiness need: An organization s business need may be based on amarket demand, technological advance, legal requirement, orgovernment regulation.

• Product scope description: This documents the characteristics ofthe product that the project will be undertaken to create.the product that the project will be undertaken to create.

• Strategic plan: AII projects should support the organization'sstrategic goals. The strategic plan of the performing organizationshould be considered as a factor when making project selectiondecisions and prioritizationdecisions and prioritization.

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4.1.1 Develop Project Charter: lnputsThe business case is created as a result of one or more of the following:The business case is created as a result of one or more of the following:• Market demand (e.g., a car company authorizing a project to build more fuel-efficient

cars in response to gasoline shortages),

• Organizational need (e.g., a training company authorizing a project to create a newcourse to increase its revenues),

• Customer request (e.g., an electric utility authorizing a project to build a newsubstation to serve a new industrial park)substation to serve a new industrial park),

• Technological advance (e.g,, an electronics firm authorizing a new project to developa faster cheaper and smaller laptop after ad ances in comp ter memor anda faster, cheaper, and smaller laptop after advances in computer memory andelectronics technology),

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4.1.1 Develop Project Charter: lnputs• Legal requirement (e g a paint manufacturer authorizing a project t0 establish• Legal requirement (e.g., a paint manufacturer authorizing a project t0 establish

guidelines for handling toxic materials),

• Ecological impacts (e.g., a company undertakes a project to lessen its environmentalimpact),or

• Social need (e.g., a non-governmental organization in a developing countryauthorizing a project to provide potable water systems to communities suffering fromhigh rates of cholera).g )

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4.1.1 Develop Project Charter: lnputs

.3 Contract:• A contract is an input if the project is being done for anexternal customerexternal customer.

.4 Enterprise Environmental Factors:p• The enterprise environmental factors that can influence theDevelop Project Charter process include, but are not limitedto:

• Governmental or industry standards,• 0rganization infrastructure and• 0rganization infrastructure, and• Marketplace conditions

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5 Organizational Process Assets:

4.1.1 Develop Project Charter: lnputs.5 Organizational Process Assets:

• The organizational process assets that can influence theDevelop Project Charter process include, but are not limitedto:

• organizational standard processes, policies, and standardizedprocess definitions for use in the organization;process definitions for use in the organization;

• Templates (e.g., project charter template); andTemplates (e.g., project charter template); and

• Historical information and lessons learned knowledge base.

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4.1.2 Develop Project Charter: Tools and Techniques1 Expert Judgment:.1 Expert Judgment:

• Expert judgment is often used to assess the inputs used to develop theproject charter.

• Such judgment and expertise is applied to any technical and managementdetails during this process.

Such expertise is available from many sources, including:• Other units within the organization,• Consultants,,• Stakeholders, including customers or sponsors,• Professional and technical associations,• industry groups• industry groups,• Subject matter experts, and• Project management office (PM0).

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4.1.3 Develop Project Charter: OutputsThe project charter documents the business needs currentThe project charter documents the business needs, currentunderstanding of the customer’s needs, and the new product, service,or result that it is intended to satisfy, such as:

• Project purpose or justification,• Measurable project objectives and related success criteria,• High‐level requirements,• High‐level project description,• High‐level risks,• Summary milestone schedule• Summary milestone schedule,• Summary budget,• Project approval requirements (what constitutes project success, who decides the project is

successful, and who signs off on the project),• Assigned project manager, responsibility, and authority level, and• Name and authority of the sponsor or person authorizing the project charter,

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4.2 Develop Project Management Plan

Develop Project Management Plan is the process ofdocumenting the actions necessary to define, prepare,integrate and coordinate all subsidiary plansintegrate, and coordinate all subsidiary plans.

The project management plan defines how the project ist d it d d t ll d d l dexecuted, monitored and controlled, and closed.

The project management plan is developed through a seriesof integrated processes until project closure.

This process results in a project management plan that isThis process results in a project management plan that isprogressively elaborated by updates and controlled andapproved through the Perform integrated ChangeControl (Section 4 5) processControl (Section 4.5) process.

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4.2.1 Develop Project Management Plan: lnputs1 P j t Ch t.1 Project Charter:

.2 Outputs from Planning Processes:Outputs from many of the planning processes describedp y p g pin Chapters 5 through 12 are integrated to create theproject management plan. Any baselines and subsidiarymanagement plans that are an output from otherplanning processes are inputs to this process. Inaddition updates to these documents can necessitateaddition, updates to these documents can necessitateupdates to the project management plan.

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3 Enterprise Environmental Factors:4.2.1 Develop Project Management Plan: lnputs

.3 Enterprise Environmental Factors:

The enterprise environmental factors that cani fl th D l P j t M t Plinfluence the Develop Project Management PlanProcess include, but are not limited to:

• Governmental or industry standards• Governmental or industry standards,• Project management information systems (e.g., anautomated tool, such as a scheduling software tool, aconfiguration management system, an informationcollection and distribution system, or web interfaces toother online automated systems),ot e o e auto ated syste s),

• Organizational structure and culture, infrastructure(e.g., existing facilities and capital equipment), and

• Personnel administration

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4 Organizational Process Assets:

4.2.1 Develop Project Management Plan: lnputs.4 Organizational Process Assets:The organizational process assets that can influence the DevelopProject Management Plan process include, but are not limited to:• Standardized guidelines, work instructions, pr0posal

evaluation criteria, and performance measurement criteria,l l• Project management plan template

elements of the project management plan that may be updatedinclude, but are not limited to:include, but are not limited to:

o Guidelines and criteria for tailoring the organization's set ofstandard processes to satisfy the specific needs of the project,ando Project closure guidelines or requirements like the productvalidation and acceptance criteriavalidation and acceptance criteria,

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4.2.1 Develop Project Management Plan: lnputs

• Change control procedures including the steps by whichofficial company standards, policies, plans, and procedures,p y , p , p , p ,or any project documents will be modified and how anychanges will be approved and validated,

• Project files from past projects (e.g., scope, cost, scheduleand performance measurement baselines, projectp , p jcalendars, project schedule network diagrams, riskregisters, planned response actions, and defined riskimpact)impact),

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4.2.2 Develop Project Management Plan: Tools and Techniques1 Expert Judgment:.1 Expert Judgment:When developing the project management plan, expert judgment is utilized to:judgment is utilized to:

• Tailor the process to meet the project needs,• Develop technical and management details t0 be included inDevelop technical and management details t0 be included in 

the project management plan,• Determine resources and skill levels needed t0 perform 

project work,• Define the level of configuration management t0 apply on 

the project andthe project, and• Determine which project documents will be subject to the 

formal change control process.

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4.2.3 Develop Project Management Plan: 0utputsThe project management plan integrates and consolidates all of theThe project management plan integrates and consolidates all of thesubsidiary management plans and baselines from the planning processes andincludes, but is not limited to:

• The life cycle selected for the project and the processes that will beapplied to each phase,

• Res lts of the tailoring b the project management team as follo s• Results of the tailoring by the project management team as follows:o Project management processes selected by the projectmanagement team,o Level of implementation of each selected process,o Descriptions of the tools and techniques to be used foraccomplishing those processes, andp g p ,

o How the selected processes will be used to manage the specificproject, including the dependencies and interactions amongthose processes and the essential inputs and outputsthose processes, and the essential inputs and outputs.

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• How work will be executed to accomplish the project objectives

4.2.3 Develop Project Management Plan: 0utputs• How work will be executed to accomplish the project objectives,

• A change management plan that documents how changes will be monitoredd t ll dand controlled,

• A configuration management plan that documents how configurationmanagement will be performed,

• How integrity of the performance measurement baselines will bemaintained,

• Need and techniques for communication among stakeholders, andq g ,

• Key management reviews for content, extent, and timing to facilitateaddressing open issues and pending decisionsaddressing open issues and pending decisions.

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Project Management Plan – Format and BaselineThe project management plan can be either summary level orThe project management plan can be either summary level or detailed, and can be composed of one or more subsidiary plans. Each of the subsidiary plans is detailed to the extent required by the specific project. 

h l b l d l bOnce the project management plan is baselined, it may only be changed when a change request is generated and approved through the Perform integrated Change Control process.g g pProject baselines include, but are not limited to:• Schedule baseline,• Cost performance baseline, and• Scope baseline.

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Project Management Subsidiary PlansSubsidiary plans include but are not limited to:Subsidiary plans include, but are not limited to:

• Scope management plan (introduction to Chapter 5),• Requirements management plan (Section 5..1.3.2),• Schedule management plan (introduction to Chapter 6),• Cost management plan (introduction to Chapter 7),• Quality management plan (Section 8.1.3‐1),• Process improvement plan (Section 8.1.3.4),• Human resource plan (Section 9 1 3 1)Human resource plan (Section 9.1.3.1),• Communications management plan (Section I0.2.3.1),• Risk management plan (Section 1 1 .1 .3.1), and

( )• Procurement management plan (Section 12.1.3.1).

0ften the scope, schedule, and cost baseline will be combined into a  performance  measurement baseline that is used as an overall project  baseline against which  integrated 

f b dperformance can be measured. The performance measurement baseline is used for earned value  measurements.

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4.3 Direct and Manage Project ExecutionDirect and Manage Project Execution is the process of performing theDirect and Manage Project Execution is the process of performing the work defined in the project management plan to achieve the project's objectives. These activities include, but are not limited to:

f l h• Perform activities to accomplish project requirements;• Create project deliverables;• Staff train and manage the team members assigned to the project;• Staff, train, and manage the team members assigned to the project;• Obtain, manage, and use resources including materials, tools, equipment, and facilities;

• lmplement the planned methods and standards;

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4.3 Direct and Manage Project Execution

• Establish and manage project communication channels, both external and internal to the project team;p j ;

• Generate project data, such as cost, schedule, technical and quality progress and status to facilitate forecasting;progress, and status to facilitate forecasting;

• lssue change requests and adapt approved changes into the project's scope plans and environment;scope, plans, and environment;

• Manage risks and implement risk response activities;• Manage sellers and suppliers; and

• Collect and document lessons learned, and implement approved process , p pp pimprovement activities.

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Direct and Manage Project ExecutionDirect and Manage Project Execution also requires  implementation of approved changes covering:• Corrective action: Documented direction for executing the• Corrective action: Documented direction for executing the 

project work to bring expected future performance of the project work in line with the project management plan.

• Preventive action:. A documented direction to perform an activity that can reduce the probability of negativeactivity that can reduce the probability of negative consequences associated with project risks.

• Defect repair: The formally documented identification of a defect in a project component with a recommendation to either repair the defect or completely replace the componenteither repair the defect or completely replace the component.

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4.3.1 Direct and Manage Project Execution: lnputs1 Project Management Plan:.1 Project Management Plan:

.2 Approved Change Requests:

As part of the Perform integrated Change Control process, a change control status update will indicate that some changes are approved and some are notand some are not. 

Approved change requests are scheduled for implementation by the project team. Approved change requests are the documented, the project team. Approved change requests are the documented,authorized changes to expand or reduce project scope. 

The approved change requests can also modify policies, the project management plan, procedures, costs, or budgets;  or revise schedules.

A d h t i i l t ti fApproved change requests may require implementation of  preventive or corrective actions.

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3 Enterprise Environmental Factors:

4.3.1 Direct and Manage Project Execution: lnputs.3 Enterprise Environmental Factors:

The enterprise environmental factors which can influence thei d j i i l d bDirect and Manage Project Execution process include, but are not

limited to:

• Organizational company or customer culture and structure• Organizational, company or customer culture and structure,• lnfrastructure (e.g., existing facilities and capital equipment),• Personnel administration (e.g., hiring and firing guidelines,Personnel administration (e.g., hiring and firing guidelines,employee performance reviews, and training records),

• Stakeholder risk tolerances, and• Project management information systems (e.g., an automatedtool suite, such as a scheduling software tool, a configurationmanagement system an information collection and distributionmanagement system, an information collection and distributionsystem or web interfaces to other online automated systems).

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4 0rganizational Process Assets:

4.3.1 Direct and Manage Project Execution: lnputs.4 0rganizational Process Assets:

The organizational process assets that can influence the Direct andManage Project Execution process include, but are not limited to:

• Standardized guidelines and work instructions;C i ti i t• Communication requirements

• lssue and defect management procedures• Process measurement database• Project files from prior projects (e.g., scope, cost, schedule, performancemeasurement baselines,

• project calendars, project schedule, network diagrams, risk registers,planned response actions, and defined risk impact); and

• lssue and defect management database .

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4.3.2 Direct and Manage Project Execution: Tools and Techniques1 Expert Judgment:.1 Expert Judgment:Expert judgment is used to assess the inputs needed to direct andmanage execution of the project management plan. Suchjudgment and expertise is applied to all technical and managementdetails during this process.

.2 Project Management lnformation System:The project management information system, part of theThe project management information system, part of theenterprise environmental factors, provides access to an automatedtool, such as a scheduling software tool, a configuration

t t i f ti ll ti d di t ib timanagement system, an information collection and distributionsystem, or web interfaces to other online automated systemsused during the Direct and Manage Project Execution effort.g g j

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4.3.3 Direct and Manage Project Execution: 0utputs1 D li bl1 Deliverables:

An approved deliverable is any unique and verifiable pr0duct, result, or capability to perform a servicethat must be produced to complete a process, phase, or project.

.2 Work Performance lnformation:lnformation from project activities is routinely collected as the project progresses. This information can be related to various performance results including, but not limited to:• Deliverable status,,• Schedule progress, and• Costs incurred.

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3 Change Requests:

4.3.3 Direct and Manage Project Execution: 0utputs.3 Change Requests:

Requests for a change can be direct or indirect, externally or internally initiated,and can be optional or legally/contractually mandated and can include:

• Corrective action. Documented direction for executing the project work tobring expected future performance of the project work in line with the projectmanagement planmanagement plan.

• Preventive action. A documented direction to perform an activity that canreduce the probability of negative consequences associated with project risks.

• Defect repair. The formally documented identification of a defect in a projectcomponent with a recommendati0n t0 either repair the defect 0r completelyreplace the component.

f f• Updates. Changes to formally controlled documentation, plans, etc., to reflectmodified or additional ideas or content.

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Project Management Plan Updates:4.3.3 Direct and Manage Project Execution: 0utputsProject Management Plan Updates:Elements of the project management plan that may beupdated include but are not limited to:updated include, but are not limited to:

• Requirements management plan,• Schedule management planSchedule management plan,• Cost management plan,• Quality management plan,y g p ,• Human resource plan,• Communications management plan,• Risk management plan,• Procurement management plan, andP j t b li• Project baselines.

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5 P j t D t U d t4.3.3 Direct and Manage Project Execution: 0utputs.5 Project Document Updates

Project documents that may be updated include, but are not limited to:• Requirements documents,• Project logs (issue assumptions etc )• Project logs (issue, assumptions, etc.),• Risk register, and• Stakeholder Register.

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4.4 Monitor and Control Project WorkMonitor and Control Project Work is the process of tracking, reviewing, andMonitor and Control Project Work is the process of tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project management plan. 

M it i i t f j t t f d th h t th j tMonitoring is an aspect of project management performed throughout the project. 

Monitoring includes collecting measuring and distributingMonitoring includes collecting, measuring, and distributingperformance informati0n, and assessing measurements and trends to effect process improvements. 

Continuous monitoring gives the project management team insight into the health of the project, and identifies any areas that may require special attention.

Control includes determining corrective or preventive actions or replanting and following up on action plans to determine if the actions taken resolved the g p pperformance issue.

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Monitoring and ControlThe Monitor and Control Project Work process is concerned with:• Comparing actual project performance against the project management plan;

• Assessing performance to determine whether any corrective or preventive actions areindicated, and then recommending those actions as necessary;

• identifying new risks and analyzing, tracking, and monitoring existing project risks tomake sure the risks are identified, their status is reported, and that appropriate riskresponse 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, andforecasting;

• Providing forecasts to update current cost and current schedule information; and• Monitoring implementation of approved changes as they occur.

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Monitoring and Control Project Work: Inputs1 Project Management Plan.1 Project Management Plan

Described in Section 4.2.3.1.

.2 Performance ReportsReports should be prepared by the project team detailing activities, accomplishments, milestones, identified issues, and problems. Performance reports can be used to report the key information• including, but not limited to:including, but not limited to:• Current status,• Significant accomplishments for the period,S h d l d ti iti• Scheduled activities,

• Forecasts, and• lssues,,

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3 Enterprise Environmental Factors:

Monitoring and Control Project Work: Inputs.3   Enterprise Environmental Factors:

The enterprise environmental factors that can influence the Monitor and Control Project Work process

.4  Organizational Process AssetsThe organizational process assets that can influence the M0nitor  and Control Project Work process

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4.4.2 Monitor and Control Project Work: Tools and Techniques1 Expert Judgment:.1 Expert Judgment:

E t j d t i d b th j t tExpert judgment is used by the project  management team to interpret the information provided by the monitor and control processes The project manager inmonitor and control processes. The project manager, in collaboration with the team, determines the actions required to ensure project performance matches q p j pexpectations.

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4.4.3 Monitor and Control Project Work: 0utputs1 Ch R.1 Change Requests:

As a result of comparing planned results to actual results, changerequests may be issued which may expand adjust or reduce project orrequests may be issued which may expand, adjust, or reduce project orproduct scope. changes can impact the project management plan,project documents, or product deliverables.Changes may include, but are not Iimited to the following:

• Corrective action. A documented direction for executing the projectwork to bring expected future performance of the project work inwork to bring expected future performance of the project work inline with the project management plan.

• Preventive action. A documented direction to perform an activitythat can reduce the probability of negative consequences associatedwith project risks.

• Defect repair. The formally documented identification of a defect inp ya project component with a recommendation to either repair thedefect or completely replace the component.

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2 Project Management Plan Updates:

4.4.3 Monitor and Control Project Work: 0utputs.2 Project Management Plan Updates:

P j t t l l t th t b d t dProject management plan elements that may be updated include, but are not limited to:• Sched le management plan• Schedule management plan• Cost management plan,Q li l• Quality management plan,

• Scope baseline,• Schedule baseline, and• Cost performance baseline.

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P j t D t U d t4.4.3 Monitor and Control Project Work: 0utputs

Project Document Updates:

• Project documents that may be updated include, but are not limited to:

• Forecasts,• Performance reports and• Performance reports, and• lssue log

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4.5 Perform Integrated Change Control

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

The Perform integrated Change Control process is conducted from project inception through completion. The project management plan, p j p g p p j g pthe project scope statement, and other deliverables are maintained by carefully and continuously managing changes, either by rejecting changes or by approving changes thereby assuring that only approvedchanges or by approving changes thereby assuring that only approved changes are incorporated into a revised baseline.

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The Perform lntegrated Change Control process includes the following change

4.5 Perform Integrated Change ControlThe Perform lntegrated Change Control process includes the following change management activities in differing levels of detail, based upon the progress of project execution:• lnfluencing the factors that circumvent integrated change control so that only• lnfluencing the factors that circumvent integrated change control so that only approved changes are implemented;

• Reviewing, analyzing, and approving change requests promptly, which is essential as a slow decision may negatively affect time cost or the feasibility ofessential, as a slow decision may negatively affect time, cost, or the feasibility of a change;

• Managing the approved changes;• Maintaining the integrity of baselines by releasing only approved changes for• Maintaining the integrity of baselines by releasing only approved changes for incorp0ration into the project management plan and project documents;

• Reviewing, approving, or denying all recommended corrective and preventive actions;actions;

• Coordinating changes across the entire project (e.g., a proposed schedule change will often affect cost, risk, quality, and staffing); and

h l f h• Documenting the complete impact of change requests.

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Configuration Management SystemA configuration management system with integrated change control provides a standardized, effective, and efficient way to centrally manage approved changes and baselines within a project. Configuration control is focused on the 

ifi i f b h h d li bl d h hil h l ispecification of both the deliverables and the processes while change control is focusedon identifying, documenting and controlling changes to the project and the 

d b li P j id li i f h fi iproduct baselines. Project‐wide application of the configuration management system, including change control processes, accomplishes three main objectives:

E t bli h l ti th d t i t tl id tif d t• Establishes an evolutionary method to consistently identify and request changes to established baselines, and to assess the value and effectiveness of those changes,P id t iti t ti l lid t d i th j t b• Provides opportunities to continuously validate and improve the project by considering the impact of each change, and

• Provides the mechanism for the project management team to consistently i t ll d d j t d h t th t k h ldcommunicate all approved and rejected changes to the stakeholders.  

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4.5.1 Perform lntegrated Change Control: Inputs

.1 Project Management PIanDescribed in Section 4.2.3.1 .Described in Section 4.2.3.1 .

.2  Work Performance lnformationDescribed in Section 4.3,3.2.

.3  Change Requests:All of the monitoring and control processes and many of the executing processes produce change requests as an outputexecuting processes produce change requests as an output. Change requests can include corrective action, preventive action, and defect repairs. However, corrective and preventive actions do not normally affect the project baselines, only the performance against the baselines.

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4 Enterprise Environmental Factors

4.5.1 Perform lntegrated Change Control: Inputs.4   Enterprise Environmental Factors

The following enterprise environmental factor can influence the lntegrated Change Control process: project management information system

.5  Organizational Process Assets:The organizational process assets that can influence the Perform lntegrated Change Control process include, but are not limited to:• Change control procedures, including the steps by which official company 

standards, policies, plans, and other project documents will be modified, and how any changes will be approved, validated, and implemented;

• Procedures for approving and issuing change authorizations;• Process measurement database used to collect and make available 

measurement data on processes and products

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4.5.2 Perform lntegrated Change Control: Tools and Techniques

1 Expert Judgment.1 Expert Judgmentln addition to the project management team's expert judgment,stakeholders may be asked to provide their expertise and may beasked to sit on the change control board.

h l.2 Change Control MeetingsA change control board is responsible for meeting and reviewingthe change requests and approving or rejecting those changethe change requests and approving or rejecting those changerequests. The roles and responsibilities 0f these boards are clearlydefined and are agreed upon by appropriate stakeholders. Allh t l b d d i i d t d dchange control board decisions are documented andcommunicated to the stakeholders for information and follow‐upactions.

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4.5.3 Perform lntegrated Change Control: 0utputs1 Change Request Status Updates:.1 Change Request Status Updates:Change requests are processed according to the change contr0l system by the project manager or by an assigned team member.

.2 Project Management Plan UpdatesElements of the project management plan that may be updatedElements of the project management plan that may be updated include but are not limited to:• Any subsidiary management plans, and• Baselines that are subject to the formal change control process.

3 Project Document Updates:.3 Project Document Updates:Project documents that may be updated as a result 0f the Perform Integrated Change Control process include the change request log and any documents that are subject to the formal change control process.

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4.6 Close Project or PhaseCl P j Ph i h f fi li i ll i i iClose Project or Phase is the process of finalizing all activities across all of the Project Management Process Groups to formally complete the project or phase.

When closing the project, the project manager will review all f f h h lprior information from the previous phase closures to ensure 

that all project work is complete and that the project has met its objectives. j

Since project scope is measured against the project management plan, the project manager will review that document to ensure completion before considering the project closed.

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4.6.1 Close Project or Phase: lnputs1 Project Management Plan.1   Project Management Plan.2   Accepted Deliverables

Those deliverables that have been accepted through the VerifyThose deliverables that have been accepted through the Verify Scope process in Section 5.4.

.3  0rganizational 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 0r requirements (e 9 project• Project or phase closure guidelines 0r requirements (e.9., project audits, project evaluations, and transition criteria), and

• Historical information and lessons learned knowledge base (e.9., project records and documents, all project closure information and documentation, information about both the results of previous project selection decisions and previous projectprevious project selection decisions and previous project performance information, and information from the risk management effort).

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4.6,2 Close Project or Phase: Tools and Techniques1 E t J d t.1 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.

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4.6.3 Close Project or Phase 0utputs1 Final Product Service or Result Transition:.1 Final Product, Service, or Result Transition:This 0utput refers to the transition of the final product, service,or result that the project was authorized to produce (or in thecase of phase closure, the intermediate product, service, orresult of that phase).

.2 0rganizational Process Assets Updates:The organizational process assets that are updated as a result ofThe organizational process assets that are updated as a result ofthe Close Project 0r Phase process include, but are not limitedto:Project files. Documentation resulting from the project'sactivities, for example, project management plan, sc0pe, cost,schedule and project calendars, risk registers, changep j , g , gmanagement documentation, planned risk resp0nse actions,and risk impact.

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• Project or phase closure documents Project or phase closure

4.6.3 Close Project or Phase 0utputs• Project or phase closure documents. Project or phase closure

documents, consisting of formal documentation that indicatescompletion of the project or phase and the transfer of thecompleted project or phase deliverables to others, such as anoperations group or to the new phase.

• Historical information. Historical information and lessonslearned informali0n are transferred to the lessons learnedknowledge base for use by future projects or phases.

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For more information do not hesitate to contact me.

Ahmad H. Maharma ‐ PMP®

• Ramallah, Palestine Ph (972) (2) 2968644• Phone: + (972) (2) 2968644

• Mobile: + (972) (599) 001155E‐Mail: [email protected]@g