Chapter 4 of PMBOK

Project Integration
Management

Integration includes
characteristics of unification, consolidation, articulation,
and integrative actions that are crucial to project
completion.
The integration effort also involves making trade-offs
among competing objectives
and alternatives.

Processes
Develop Project Charter
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 Charter

Develop Project Charter:

Inputs
Project Statement of Work

State the Business Need, What triggered the project

Documents the characteristics of the end product
Is progressively elaborated throughout the project life cycle
Includes the Strategic Plan, a factor when making project selection

decisions
Should describe both what the deliverables is and what it not
With the scope statement, the SOW protects against both scope

creep and feature creep

Develop Project Charter:

Inputs

Enterprise Environmental Factors

Organizational or company culture and structure
Governmental or industry standards
existing facilities and capital equipment)
Existing human resources
Company work authorization system
Marketplace conditions
Stakeholder risk tolerances
Commercial databases
Project management information systems

Develop Project Charter:

Inputs
Organizational Process Assets
Procedures, policies,
Standardized guidelines,
Templates
Organization communication requirements
Project closure guidelines or requirements
Historical information
Financial controls procedures
Risk control procedures,

Develop Project Charter:

Tools
and
Techniques
Project Selection Methods
Benefit Measurement Methods: to compare one project to another:
Murder Board - group tires to shoot project down
Peer Review
Scoring Models
Benefits Contribution Models compared to cost
Economic Models

Constrained Optimization Methods: mathematical model, algorithms

Linear and non-linear programming
Dynamic programming
Integer methods
Multi-objective algorithms

Develop Project Charter:

Tools and
Techniques
Some Definitions to Know
Delphi Technique: Method to get Expert Opinions: Request is sent to
experts, responses are compiled, results sent back for continued
review: (1) keep experts anonymous, and (2) build consensus.

Heuristics: No matter how used = A Rule of Thumb (like the 80/20 rule
Praetos Rule, or rule of 80 hours or 2-week rule for WBS
decomposition)

Project Selection Methods Economic Models

Net Present Value: the expected net economic value (per year) of a project in
terms of present year monies. Compensate for different cash flow patterns
and inflation. A higher overall net present value is better within cash flow
constraints.
Return on Investment (ROI): income divided by investment. May use discount rates and
may be compared to a required rate of return. A higher ROI is better.
Payback Period: the amount of time it will take to recover (in net cash inflow) the cost of
the project. May be compared to a required payback period. A faster payback period is
generally better.
Internal Rate of Return (IRR) or Hurdle Rate: the rate of return for the investment in the
project. In general, a higher rate of return is better, and organizations may have a
required minimum rate of return (or hurdle rate) that represents expect return on an
investment of comparable risk.

Project Selection Methods Economic Models

Net present Value (NPV) =

FV

(1+r)n
Return on Investment (ROI) = Average Earnings After Tax = ARR
Average Investment (Accounting Rate of Return)
Internal Rate of Return (IRR):

Solve the NPV equation for r (hurtle rate)

when present value of cash in equals

present value of cash out (i.e., at
breakeven)
Benefit Cost Ratio: Benefits should exceed costs. The higher BCR wins
Opportunity Cost: A has NPV of $45K, B has NPV of $75K, what is the
opportunity cost of selecting Project B?

Project Selection Methods Weighted Scoring

Removes personal bias, is more objective, and considers relative
importance of different evaluation factors
1.

determine the evaluation factors

2.

assign a numerical weight to each factor

3.

rate the projects on each criterion

4.

multiply each rating by its weighting

5.

total the weighted ratings to compute an overall score

6.

highest number project wins

Project Selection Methods Decision Models

Decision Trees: Define all the possible outcomes, the probability of each,

and its value. Choose the best alternative

Forced Choice: Decision makers choose among alternatives, often by pair-wise
comparisons, selecting the one preferred and discarding the rest.

Initiating - Project Management Integration

The Project Manager
Assign as early as possible, before planning
May change over project lifecycle
Must have appropriate authority and the respect of the project team
Selection may be dictated by the customer
Critical Skills:
Human skills
Communication skills
Conflict resolution
Technical skills
Administrative skills
Flexible management style

Develop Project Charter:

Tools
and
Techniques

Project Management Information System

The PMIS is a standard set of automated tool
used by the PM to support creation of the
project charter,provide feedback for
refinement, control changes to the charter,
and to release the document.

Develop Project Charter:

Tools
and
Techniques

Expert Judgment
Other units within the organization
Consultants
Stakeholders, including customers or sponsors
Professional and technical associations
Industry groups.

Develop Project Charter:

Outputs

Project Charter

Project title
Project Managers Name
Project Managers authority level
Requirements satisfying stakeholders
Business needs/case with ROI
Functional groups and participation
Business case (why is the project being done)
SOW with description of end product or service
Management approval (everyone on team knows as boss)

Develop Preliminary Project

Scope Statement

Develop Preliminary Project

Scope
Statement:
Outputs
Preliminary Project Scope Statement

Project and product objectives

Product or service requirements and characteristics
Product acceptance criteria & Project boundaries
Project requirements and deliverables
Project constraints & assumptions
Initial project organization
Initial defined risks
Schedule milestones & Initial WBS
Order of magnitude cost estimate
Project configuration management requirements

Develop Preliminary Project Scope Statement

The Project Sponsor
Acts as a champion for the project with the customer
Is a connection between the project team and the rest of the organization,

especially line management

Is from within the performing organization, but external to the project

organization

Issues the project charter: initiator/sponsor

From mid-to-senior management depending on the project
May be actively involved in planning and high-level decisions
Helps resolve issues outside the control of the project team
May be involved in customer relations and negotiations

Constraints and Assumptions

Constraint limit the projects alternatives:
resource limitations
schedule constraints
equipment and facilities limitations
Technology constraints
Legal and regulatory constraints

Assumptions: uncertainties that are considered fully defined in order to enable further
planning
resource, equipment, and facilities availability
external timelines
technology compatibility
Interpretation of legal and regulatory constraints
Assumptions involve risk identify the risk!

Develop Project Management

Plan

Develop Project Management

Plan

Develop Project Management

Plan:
Tools
and
Techniques
Project Management Information System
Configuration Management:
A set of processes and procedures to ensure that the documentation of the
product and the actual project remain consistent with each other:
correct, current, and complete

addresses both functional and physical characteristics

Sub-disciplines of CM:

configuration identification

configuration documentation

configuration change control

configuration auditing

Project Management
Information System
Change Control

Formal, documented processes and procedures for controlling changes to official project
documents, including procedures for:

requesting changes

reviewing the implications of change requests

approving or rejecting changes

communicating changes

tracking the history of changes

Document, update, communicate, and coordinate changes
Use rigorously
Consider prioritizing levels of change & creating change thresholds
Have fast-track and automatic procedures

Project Management Plan

Scope Planning

Cost Budgeting

Scope Definition

Quality Planning

Create WBS

Human Resource Planning

Activity Definition

Communication Planning

Activity Sequencing

Risk Management Planning

Activity Resource Estimating

Risk Identification

Activity Duration Estimating

Qualitative Risk Analysis

Schedule Development

Quantitative Risk Analysis

Cost Estimating

Risk Response Planning

Plan Purchases and acquisitions
Plan Contracting

Direct and Manage Project

Execution

Direct and Manage Project

Execution

Monitor and Control Project

Work

Monitor and Control Project

Work

Comparing actual to planned

Assessing performance for any corrective or
preventive action.
Analyzing, tracking and monitoring risk.
Providing forecast for cost and schedule.
Monitoring implementation of approved
changes.

Integrated Change Control

Integrated Change Control

Formal, documented processes and procedures for controlling changes to
official project documents, including procedures for:
requesting changes

reviewing the implications of change requests

approving or rejecting changes

communicating changes

tracking the history of changes

Document, update, communicate, and coordinate changes
Use rigorously
Consider prioritizing levels of change & creating change thresholds
Have fast-track and automatic procedures

Close Project

Close Project
Administrative closure procedure.
Performing the administrative closure process includes

integrated activities needed to collect project

records,analyze project success or failure, gather lessons
learned, and archive project information for future use by
the organization.

Close Project
Contract closure procedure.

This procedure involves both product verification (all work

completed correctly and satisfactorily) and administrative
closure (updating of contract records to reflect final results
and archiving that information for future use).