Download - PMP Prep 3 - Project Integration Management
Project Integration
ManagementPMP Preparation Course
March – April 2015
Session 3
by Andrey Mikityuk
Head of Project Management Team
Credit Suisse Moscow
OverviewInitiating Planning Executing Monitoring
and
Controlling
Closing
Develop
Project
Charter
Develop
Project
Management
Plan
Direct and
Manage
Project Work
Monitor and
Control
Project Work
Perform
Integrated
Change
Control
Close Project
or Phase
Integration Management – balancing all knowledge areas with each
other
Develop Project Charter
Develop
Project
Charter
Inputs
1. Project Statement
of Work
2. Business Case
3. Agreements
4. Enterprise
Environmental
Factors
5. Organizational
Process Assets
Outputs
1. Project Charter
Tools and
Techniques
1. Expert Judgment
2. Facilitation
Techniques
• Business need
• Product Scope
Description
• Strategic Plan
• Business
need
• Cost/Benefit
Analysis
Contracts,
memorandums,
letters of intent,
verbal, email, etc.
• Government
standards
• Organizational
culture
• Marketplace
conditions
• Standards, policies,
procedures
• Templates
• Historical
information and
lessons learned
• Brainstorming
• Conflict resolution
• Problem solving
• Meeting
management
Business CaseFundamentals
every project should have a business case
project is selected only based on sound business case (no “management discretionary”
projects)
project manger should be assigned as early as feasible (prior to start of planning), and
understands the business case and reason for project selection
Business case is important – it affects decision-making
Project can be initiated as a result of:
Market demand
Organizational need (e.g., reduce costs)
Customer request
Technological advance
Legal requirement
Ecological impacts
Social need
Project Charter
Project Name and Description
Project Sponsor(s)
Business Case, Objectives and Success Criteria
Project manager and his authority
Pre-assigned resources
High-level requirements
Summary milestone schedule
High-level budget
High-level risks
Assumptions and constraints
Known stakeholders
Project approval requirements (who approves what)
Project charter
defines
project
boundaries
Project Selection
Benefit measurement models
(comparative approach)
• Murder board
• Peer review
• Scoring model
• Economic models
• Present Value (PV)
• Net Present Value (NPV)
• Internal Rate of Return
(IRR)
• Payback period
• Cost-Benefit ratio
• Economic Value Added
(EVA)
Constrained optimization
methods (mathematical approach)
• Linear programming
• Integer programming
• Dynamic programming
• Multi-objective programming
Methods
Image from John E. A. Bertram’s article “Constrained optimization in human walking: cost minimization and gait plasticity”
http://jeb.biologists.org/content/208/6/979.figures-only
IRR formal definition: rate at which
NPV = 0
Simple: rate which your project
returns if you treat it as investment
Economic ModelsYou may be asked to calculate PV and cost/benefit; for others just
understand the idea
Payback period – number of
periods (years / months) to
return invested money (also:
break-even point)Cost-Benefit ratio =
Benefit (Revenue) / Cost
Remember: revenue, not profit
Economic Value Added (EVA)
= Net Operating Profit After
Taxes – Cost of Capital
Return of Investment =
(revenue – cost) / cost (simple)
Total Cost of Ownership (TCO) –
cost including non-project costs
(operational)
Few More Economic
Concepts Opportunity Cost
Sunk Costs
Law of Diminishing Returns
Working Capital
Depreciation
◦ Straight-line depreciation
◦ Accelerated depreciation
Develop Project Management
Plan
Develop
Project
Management
Plan
Inputs
1. Project Charter
2. Outputs from other
processes
3. Enterprise
Environmental
Factors
4. Organizational
Process Assets
Outputs
1. Project
Management Plan
Tools and
Techniques
1. Expert Judgment
2. Facilitation
Techniques
• Governmental or
industry
standards
• PM practices for
the industry (e.g.
construction or
software
development)
• PMIS
• Organizational
structure, culture,
management
practices
• Infrastructure
(existing facilities
and capital
equipment)
• Staff
management
practices
(hiring/firing,
performance
reviews, etc)
• Standardized guidelines
• Project Management plan template
• Guideline for tailoring
• Project closure guidelines (validation and
acceptance criteria)
• Change control procedures
• Project files from previous projects
• Historical information and lessons learned
• Configuration management knowledge base (versions
and baselines of all standards and policies)
• Tailor the process
• Develop technical details
• Determine resources and skills
needed
• Define level of configuration
management
• Determine which projects will be
subject for change control
• Set priorities
Project Management PlanManagement Plans
Change MP
Configuration MP
Scope MP
Requirements MP
Schedule MP
Cost MP
Quality MP
Process Improvement plan
Human Resource MP
Communications MP
Risk MP
Procurement MP
Stakeholder MP
Baselines
Scope
Schedule
Cost
Other
Life Cycle of the project
Details of tailoring decisions
How integrity of project
baselines will be maintained
Knowledge Area
Integration
Scope
Schedule
Cost
Quality
Human Resource
Communications
Risk
Procurement
Stakeholder
performance
measurement
baseline
Good project plan is…
Iterative and non-contradictory
Consistent with PMO guidelines
Validated with program/portfolio managers
Impact from/to other projects incorporated
Has inputs from all internal stakeholders, including:
◦ Team members
◦ Resource managers
◦ Sponsor
Has buy-in (approved)
Realistic (everybody believe it can be met)
Don’t forget kick-off meeting which finalizes planning process!
Direct and Manage Project
Work
Direct and
Manage
Project Work
Inputs
1. Project
Management Plan
2. Approved Change
Requests
3. Enterprise
Environmental
Factors
4. Organizational
Process Assets
Outputs
1. Deliverables
2. Work performance
data
3. Change requests
4. Project
management plan
updates
5. Project documents
updatesTools and
Techniques
1. Expert Judgment
2. Project
Management
Information
System (PMIS)
3. Meetings
• Organizational,
company or
customer culture
• Infrastructure
(existing
facilities and
capital
equipment)
• Staff
administration
• Stakeholder risk
tolerances
• PMIS
• Standardized guidelines and work
instructions
• Communication requirements (allowed
communication media, record retention and
security requirements)
• Issue and defect management procedures
• Process measurement database
• Project files from previous project
• Issue and defect management databases
• Corrective actions
• Preventive
actions
• Defect repairs
• Information exchange
• Brainstorming, options
evaluation or design
• Decision making
Examples: requirements,
project logs, risk register,
stakeholder register
Monitor and Control Project
Work
Monitor and
Control
Project Work
Inputs
1. Project Management
Plan
2. Schedule forecasts
3. Cost forecasts
4. Validated changes
5. Work performance
information
6. Enterprise
Environmental Factors
7. Organizational
Process Assets
Outputs
1. Change requests
2. Work performance
reports
3. Project
management plan
updates
4. Project documents
updates
Tools and
Techniques
1. Expert judgment
2. Analytical
techniques
3. Project
management
information system
4. Meetings
• SV (schedule
variance),
• SPI (schedule
performance
index)
• Regression analysis
• Grouping methods
• Causal analysis
• Root cause analysis
• Forecasting methods
• Failure mode and effect analysis
(FMEA)
• Fault tree analysis (FTA)
• Reserve analysis
• Trend analysis
• Earned value management
• Variance analysis
Status reports, memos,
justifications, information
notes, recommendations
and updates
• CV (cost
variance),
• CPI (cost
performance
index)
• Governmental
or industry
standards
• Work
authorization
system
• Stakeholder
risk tolerance
• PMIS • Organizational communication
requirements
• Financial control procedures (time
reporting, expenditure reviews, etc.)
• Issue and defect management
procedures
• Change control procedures
• Risk control procedures
• Process measurement database
• Lessons learned database
• Corrective actions
• Preventive
actions
• Defect repairs
Actions in Monitor and Control
project Work Compare actual performance against the project
management plan
Assess performance to determine if any corrective or preventive actions are needed
Identify new risks and track existing
Maintain an accurate, timely information base concerning the project’s products
Provide information to support status reporting
Provide forecasts to update current cost/schedule information
Monitor implementation of approved changes
Provide appropriate reporting of project status to program management
Change requests
Preventive actions
(prevent anticipated
problem)
Corrective actions
(problem already
occurred)
Defect Repairs
(defect in deliverable)
All changes should pass change control process before implementation.
Good project manager:
• Has realistic and up-to-date plans and baselines
• Creates metrics which cover all aspects of the project
• Continuously tracks project performance against baselines
• Systematic, not randomly focused on different areas
• Proactively looks out for problems
• Looks for a root cause of a problem before proposing action
• Evaluates effectiveness of proposed actions
Perform Integrated Change
Control
Perform
Integrated
Change
Control
Inputs
1. Project
Management Plan
2. Work performance
Reports
3. Change requests
4. Enterprise
Environmental
Factors
5. Organizational
Process Assets
Outputs
1. Approved change
requests
2. Change log
3. Project
management plan
updates
4. Project documents
updates
Tools and
Techniques
1. Expert Judgment
2. Meetings
3. Change control
tools
• PMIS
• Change control procedures
• Process measurement documents
• Project documents
• Configuration management knowledge base
• Change
management plan
• Baselines (scope,
schedule, cost)
Change control meetings
• Resource
availability
• Schedule and
cost data
• EVM reports
• Burnup or
burndown
charts
Change life cycleDirect and
Manage
Project
Work
Monitor and
Control
Project Work
Perform
Integrated
Change
Control
New
Status of the
change
Created
Create formal
change
request
Approved
RejectedUpdate the
change log
Update the
change log
Update PM plan
and project
documents
1. Assess the change
• against Project Charter (is it part of the project at
all?)
• against Risk log (check if it change is a result of
materialized risk, and has reserves for it already)
2. Assess impact
• within knowledge area
• on all other project constraints
3. Identify options
4. Approve/Reject the change (as defined in
Change MP)
• Project manager
• Change Control Board (CCB)
• Customer (if needed)
As part of Integrated Change Control you also should:
• Prevent the root cause of changes
• Manage stakeholders’ expectations by communicating statuses of changes
Configuration management
Configuration Management (CM) is another part of Perform
Integrated Change Control process
What is that all about?
• Problem occurred
because “wrong
version of something”
have been used
• Team members don’t
know where to look
for actual versions of
documents
• Lack of control for
changes
Step 1. Configuration identification
Which deliverables needs to be versioned /
controlled?
Step 2. Configuration status accounting
What are the current versions of all
deliverables?
What are the open change requests?
Step 3. Configuration verification and
audit
Independent review to establish compliance
Close Project or Phase
Close
Project or
Phase
Inputs
1. Project
Management Plan
2. Accepted
deliverables
3. Organizational
Process Assets
Outputs
1. Final product,
service or result
transition
2. Organizational
process assets
updates
Tools and
Techniques
1. Expert Judgment
2. Analytical
techniques
3. Meetings
• Closure
guidelines or
requirements
• Historical
information and
lessons learned
• Regression analysis
• Trend analysis
Can include partial
or interim
deliverables for
phased or
cancelled projects
• Project files
• Project or phase
closure documents
• Historical information
Actions during project closureConfirm work is done to requirements
Complete procurements closure (another knowledge area!)
Gain final acceptance of the product
Complete financial closure
Hand off completed product
Solicit feedback from the customer about the project
Complete final performance reporting
Index and archive records
Gather final lessons learned and update knowledge base