PMP Prep 3 - Project Integration Management
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The document provides an overview of project integration management. It discusses developing the project charter and project management plan, which define the project and how it will be executed, monitored, and controlled. It also covers directing and managing project work, monitoring and controlling the project, performing integrated change control, and closing the project or phase. Project integration management aims to balance all knowledge areas and ensure the project is properly planned and executed.
PMP Prep 3 - Project Integration Management
- 1. Project Integration Management PMP Preparation Course March – April 2015 Session 3 by Andrey Mikityuk Head of Project Management Team Credit Suisse Moscow
- 2. Overview Initiating 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
- 3. 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
- 4. Business Case Fundamentals 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
- 5. 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
- 6. 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
- 7. IRR formal definition: rate at which NPV = 0 Simple: rate which your project returns if you treat it as investment Economic Models You 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)
- 8. Few More Economic Concepts Opportunity Cost Sunk Costs Law of Diminishing Returns Working Capital Depreciation ◦ Straight-line depreciation ◦ Accelerated depreciation
- 9. 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
- 10. Project Management Plan Management 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
- 11. 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!
- 12. 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
- 13. 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
- 14. 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
- 15. 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
- 16. 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
- 17. Change life cycle Direct and Manage Project Work Monitor and Control Project Work Perform Integrated Change Control New Status of the change Created Create formal change request Approved Rejected Update 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
- 18. 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
- 19. 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
- 20. Actions during project closure Confirm 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