chapter 2 - project integration management
TRANSCRIPT
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Project Integration Management
Author
Pankaj Sharma
Project Management Program
Based onPMBOKGuide IV Edition
PMI, PMP, CAPM, PgMP, PMI-RMP, PMI-SP and PMBOK are registeredmarks of Project Management Institute, Inc.
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After the completion of this chapter, the learner
will be able to:
List the various processes of Project Integration Management
Describe the process of Develop Project Charter
Describe the process of Develop project plan
Describe the process of Direct And Manage Project Execution.
Describe the process of Monitor and Control Project Work
Describe the process of Perform Integrated Change Control
Describe the process of Close Project Or Phase
Explain the various project selection methods
Explain the components of a project management plan
Learning Objectives
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Project Integration Management Overview
Develop a Project Charter
Project Selection Methods
Define High Level Project Scope
Tailor the Processes Required By The Project
Develop Project Management Plan
Creating the Project Deliverables
Directing and Manage Project Execution
Monitor and Control Project Work Close a Project Or Phase
Project Integration Management: Topics
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Definition as per PMBOK Guide
Project Integration Management includes the processes andactivities needed to identify, define, combine, unify, and
coordinate the various processes and project management
activities within the Project management process Groups.
Project Integration Management: Define
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1 Develop Project Charter
2 Develop Project Management Plan
3 Direct and Manage Project Execution
4 Monitor and Control Project Work
5 Perform Integrated Change Control
6 Close Project or Phase
Project Integration Management
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1 Develop Project Charter
2 Develop Project Management Plan
3 Direct and Manage Project Execution
4 Monitor and Control Project Work
5 Perform Integrated Change Control
6 Close Project or Phase
Project Integration Management
Initiating
Planning
Executing
MonitoringandControlling
Closing
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Develop Project Charter WHY we should do it?
Develop Project Management Plan HOW we will do this?
Direct and Manage Project
Execution
Doing it
Monitor and Control Project Work Is it going Well?
Perform Integrated Change Control Is this request Worth doing?
Close Project or Phase Have we Delivered everything?
Topics: Project Integration Management
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Definition as per PMBOK Guide
The process of developing a document that formally authorizesa project or a phase and documenting initial requirements that
satisfy the stakeholder's needs and expectations.
Develop Project Charter: Define
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Project Charter
The approved Project Charter formally initiates a project.
The Project Manager should be preferably assigned during creationof the Project Charter.
Project Charter gives the project manager authority to spend andcommit corporate resources
It provides high-level requirements for the project.
Develop Project Charter
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Develop Project Charter
Inputs
Project statement of work
Business case
Contract
Enterprise environmental factors
Organization process assets
Outputs
Project Charter
Tools and Techniques
Expert Judgment
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Project Selection Methods
Non Numeric Method
Sacred cow
Operating necessity
Murder Board
Competitive necessity
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Benefit Measurement Model (also calledComparative
approach)
Payback Period
Cost Benefit Analysis
Scoring Models
Net Present Value (NPV) Internal Rate of Return (IRR)
Mathematical Models (also called Constrained
Optimization) Use linear, dynamic, non-linear, multi-objective programming tosolve problem
Project Selection Methods
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Mathematical Models
Involves complex mathematical formulas to predict successrate
Also called as Constrained Optimization
Use linear, dynamic, non-linear, multi-objectiveprogramming to solve problem
Project Selection Methods
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Payback period the amount of time to recover your cost.It compares the initial investment to the cash inflowsexpected over the life of the product.
For example, Initial investment on a project is Rs. 4,00,000, Expectedcash inflows: Rs. 50,000 per quarter for first two years, Rs. 100,000 perquarter thereafter.
What is the payback period?
Cash inflows = Rs. 50,000 x 4 (quarters in a year) = Rs. 2, 00,000 peryear for first two years. Hence, year 1 inflow = Rs. 2, 00,000, year 2 inflow
= Rs. 2, 00,000. Total Rs. 4, 00,000 in 2 years So payback is reached in 2 years.
Project Selection Methods
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Benefit Cost Ratio (BCR) or profitability Index . This is theratio of project benefit and the project cost.
BCR = Revenue / Cost
Select the project with a higher BCR
Project Selection Methods
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Present Value (PV) is the expected future cash flowsexpressed in todays monetary value
PV = FV / (1+r) n
For example, Calculate the Present Value of $ 100,000 receivedthree years from now. The interest rate is 10 percent.
PV = 100000 / (1+10/100)3 = $ 75,131
Net Present value (NPV) is the sum total of the PresentValue of Cash Inflows Cash Outflows
Project Selection Methods
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Internal Rate of Return (IRR): The rate of interest atwhich the revenues and costs are equal.
Select the project with a higher IRR.
Return On Investment (ROI) A return ratio thatcompares the net benefits of a project/ product, verses itstotal cost.
ROI = Operating Income / Investments
Project Selection Methods
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Net Present value (NPV) is the sum total of the Present Value of
Cash Inflows Cash Outflows
NPV of the Project is 353-291 = 62
Project Selection Methods
TIME PERIOD INCOME/REVENUE PRESENT VALUE AT10% INT RATE
COSTS PRESENT VALUE AT10% INT RATE
0 0 0 200 2001 50 45 100 912 100 83 0 03 300 225 0 0TOTAL 353 291
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Method Project A Project B Which One?
Scoring Model 17 20 B
Payback Period 24 Months 25 months A
Benefit Cost
Ratio
3.5 4.5 B
Net PresentValue (NPV)
95,000 80,000 A
IRR 9.5% 11.5% B
Exercise 1: Which Project Will You Select
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Definition as per PMBOK Guide
Develop Project Management Plan is the process of
documenting the actions necessary to define, prepare,
integrate, and coordinate all subsidiary plans.
Develop Project Management Plan : Define
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Develop Project Management Plan
Inputs
Project charter
Outputs from planning processes
Enterprise environmental factors
Organizational process assets
Outputs
Project management plan
Tools and Techniques
Expert Judgment
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Requirements Management plan
Project scope management plan Schedule management plan
Cost management plan
Quality management plan
Process improvement plan
Staffing management plan
Communication management plan
Risk management plan
Procurement management plan
Components of Project Management Plan
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Definition as per PMBOK Guide
Direct and manage Project Execution is the process of
performing the work defined in the project management
plan to achieve the project's objectives.
Direct & Manage Project Execution: Define
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Direct & Manage Project Execution
Inputs
Project management plan Approved change requests
Enterprise environmental factors
Organizational process assets
Outputs
Deliverables
Work performance information
Change requests
Project management plan updates
Project document updates
Tools and Techniques
Expert judgment
Project management information system
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Definition as per PMBOK Guide
Monitor 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.
Monitor & Control Project Work: Define
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Monitor & Control Project Work
Inputs
Project management plan Performance reports
Enterprise environmental factors
Organizational process assets
Outputs
Change requests
Project management plan updates
Project documented updates
Tools and Techniques
Expert judgment
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Definition as per PMBOK Guide
Perform Integrated Change Control is the process of reviewing
all change requests, approving changes and managing changes
to the deliverables, organizational assets, project documents,
and the project management plan.
Perform Integrated Change Control: Define
f d h l
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Change Control Systems
Every documented change request must be either approved orrejected by an authorized person.
Some changes require approval by the Change Control Board(CCB).
Any approved changes may required adjusting the scope, time,and resource requirements
Perform Integrated Change Control
P f I d Ch C l
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Configuration Management
Configuration management system provides a standardized, effective,and efficient way to centrally manage approved changes andbaselines within the project.
Perform Integrated Change Control
P f I t t d Ch C t l
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Perform Integrated Change Control
Inputs
Project management plan Work performance information
Change requests
Enterprise environmental factors
Organizational process assets
Outputs
Change request status updates
Project management plan updates
Project document updates
Tools and Techniques Expert judgment
Change control meetings
Cl P j t Ph
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Definition as per PMBOK Guide
Close Project or Phase is the process of finalizing all activitiesacross all of the project Management Process Groups to formallycomplete the project or phase.
Close Project or Phase
Cl P j t Ph
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Close Project or Phase
Inputs
Project management plan Accepted deliverables
Organizational process assets
Outputs
Final product, service or results transition
Organizational process assets update
Tools and Techniques
Expert judgment
E i 2 I t ti M t
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Revising Key Terms
Exercise 2: Integration Management
1. The project management plan is the collection of ______Plans
2. Work Culture and company policies are calledEnterprise__________ Factors
3. ___________ is a document that gives the project managerauthority over the team
A t E i 2 I t ti M t
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Revising Key Terms
Answer to Exercise 2: Integration Management
1. The project management plan is the collection ofSubsidiary Plans
2. Work Culture and company policies are called EnterpriseEnvironmental Factors
3. Project Charter is a document that gives the projectmanager authority over the team
P j t I t ti M t
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Assessment Examination
Project Integration Management
P j t I t g ti M g t
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QUERIES
&
CLARIFICATIONS
Project Integration Management
Project Integration Management
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Next Session
Project Scope Management
Project Integration Management