Session 21 4th edition PMP

Project Integration Management

• Process Groups & Knowledge Areas MappingKnowledge Area

Process

Initiating Planning Executing Monitoring & Control ClosingIntegration Develop Project

CharterDevelop Project Management Plan Direct and Manage Project

ExecutionMonitor and Control Project WorkPerform Integrated Change Control

Close Project

Scope Collect RequirementsDefine ScopeCreate WBS

Verify ScopeControl Scope

Time Define ActivitiesSequence ActivitiesEstimate Activities ResourcesEstimate Activities DurationDevelop Schedule

Control Schedule

Cost Estimate CostsDetermine Budget

Control Costs

Quality Plan Quality Perform Quality Assurance Perform Quality Control

HumanResource

Develop Human Resources Plan Acquire Project TeamDevelop Project TeamManage Project Team

Communication Identify Stakeholders

Plan Communications Distribute InformationManage Stakeholders Expectations

Report Performance

Risk Plan Risk ManagementIdentify RiskPerform Qualitative Risk AnalysisPerform Quantitative Risk AnalysisPlan Risk Response

Monitor and Control Risks

Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurements

Project Integration Management

Knowledge Area

Process

Initiating Planning Executing Monitoring & Contol Closing

integration

• Develop Project Charter

• Develop Project Management Plan

• Direct and Manage Project Execution

• Monitor and Control Project Work

• Perform Integrated Change Control

• Close Project

Enter phase/Start project

Exit phase/End project

InitiatingProcesses

ClosingProcesses

PlanningProcesses

ExecutingProcesses

Monitoring &Controlling Processes

• Budgeting technique that debates the future value of money based on inflation, etc.

• PV = FV/(1 + r)t• FV = amount of money to

years from now• r = interest rate (also called

“discount rate”)• t = time period

Present ValuePV FV years

$ 50.000 $ 50.000 0

$ 31.819 $ 35.000 1

$ 12.397 $ 15.000 2

Assume a 10% interest (discount rate)

Project selection methods

Net Present Value (NPV)

Present Value at10% interest rate

Costs Present Value at10% interest rate

Income or revenue

Time Period

200 200 0 0 091 100 45 50 10 0 83 100 20 0 225 300 3291 353 Total

NPV =353-291=62

Project with positive & greater NPV value is better

Benefit Cost Ratio– compares the benefits to the costs of

different options– relates to costing projects and to

determining what work should be done– Project with greater benefit-cost ratio

value is better• If the BCR of project A is 2.3 and

BCR of project B is 1.7 which project

would you select?• The answer is A. the project with

the higher BCR

-The interest (discount) rate where thepresent value of the benefits exactlyequals the costs.-The higher the rate, the better theproject.-An IRR of 0.15 means that youexpect the project to return anaverage of 15% on your investmentover a given time period (usually anumber of years).

Internal Rate of Return (IRR)

Payback PeriodThe exact length of time needed to recover an initial investment as calculated from cash inflows.

initiating• Develop Project charter• The process of developing a document that formally

authorizes a project or a phaseInputs

• Project statement of work

• Business case• Contract• Enterprise environmental

factors• Organizational process

assets

Tools & Techniques

1. Expert judgment

Outputs

1. Project charter

Develop Project Charter Data Flow Diagram

Develop Project Management Plan

• The process of documenting the actions necessary to define, prepare, integrate and coordinate all subsidiary plans.

Inputs

1. Project charter2. Business case3. Outputs from planning

processes4. Enterprise environmental

factors5. Organizational process

assets

Tools & Techniques

1. Expert judgment

Outputs

1. Project management plan

Project Management Plan

• The strategy for managing the project and the processes in each knowledge area

• Covers how you will define, plan, manage, and control the project.

• Also includes:– Change management plan– Configuration management plan– Requirements management plan– Process improvement plan

• How to handle a problem on a project?» look at your management plan to see how you planned to handle such

a problem.

Baseline (Performance measurement baseline)

• The project management plan contains scope, schedule, and cost baselines, against which the project manager will need to report project performance.

• Baseline created during planning. – Scope baseline

The project scope statement, work breakdown structure (WBS), and WBS dictionary

– Schedule baseline The agreed-upon schedule, including the start and stop times

– Cost baseline The time-phased cost budget

• Deviations from baselines are often due to incomplete risk identification and risk management.

Change Management Plan

• Describes how changes will be managed and controlled.• Covers for the project as whole• May includes:

– Change control procedures (how and who) – The approval levels for authorizing changes – The creation of a change control board (CCB) to approve

changes– A plan outlining how changes will be managed and

controlled – Who should attend meetings regarding changes – Tools to use to track and control changes

Configuration Management Plan

• Defines how you will manage changes to the deliverables and the resulting documentation, including which organizational tools you will use

QUESTIONS?

1-Which of the following document can be used to

guide all the work in both project executing and

project monitoring and controlling phase of a

project?

1.Project Management Plan

2.Project Risk Plan

3.Project QA Plan

4.Project Charter

2-You are a project manager of a company and you have been assigned to take over managing a project that should have been 60 percent complete according to the schedule. After evaluation, you discover that the project is running far behind schedule, and that the project will probably take double the time originally estimated by the previous project manager. However, the sponsor has been told that the project is on schedule. What is the BEST course of action you will take?1.Add new resource to the project and complete the project on schedule.2.Show your evaluation to sponsor.3.Ask your senior manager to deal with this.4.Turn the project back to the previous project manager.

3-Project A requires investment of $500,000. The

project is expected to generate $25K per

quarter for first year and $100K per quarter

after that. What is the payback period?

A- One year

B-Two years

C-Three years

D-Eight year

4-You have four projects from which to choose one. Project A is being done over a six year period and has a Net Present

Value (NPV) of US $70,000. Project B is being done over a three year period and has a NPV of US $30,000. Project C is being done over a five year period and has an NPV of US $40,000. Project D is being done over a one year period and has an NPV of US $60,000. Which project

would you choose? A. Project A B. Project B C. Project C D. Project D

Thank you