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Project INTEGRATION Management

A project charter:
Formally authorizes the project.
Gives the objectives and business case
Identifies the Project Manager.
Generic enough not to change often.
Written by a Manager higher in authority than Project Manager.
Includes name, description, deliverables
A project does not start unless it has a Project charter.

During project execution the project team focuses on completing the tasks assigned. The Senior
Management protects the project from changes and loss of resources. The Project Manager integrates
all the pieces into the project as a whole.

At the end of each phase of a project, a lessons learned document must be prepared. The lessons
learned document defines what was done right, wrong etc. It is required to be completed in order for
the project to be completed.

Project Management Information System (PMIS) is a system that keeps track of status of all the project
tasks. It is used to track the status of the project. The exam does not focus on any specific system (for
example Microsoft Project ).

Project Management Plan is developed by Project Manager with inputs from the team, stakeholders and
management. Project Management Plan development is iterative. A Project Management Plan is bought
into, approved, realistic and formal.

A Project Management Plan includes Project Charter

Budget
Schedule
Resources
Scope Statement
WBS
Responsibility charts/assignments
Management Plans

A Project Management Plan consolidates other management plans. These are:

A. Scope management plan
B. Requirement management plan
C. Schedule management plan
D. Cost management plan
E. Quality management plan
F. Process improvement plan
G. Human resource plan
H. Communication management plan
I. Risk management plan
J. Procurement management plan

The Project Management Plan also includes project baselines. These are:
A. Schedule baseline
B. Cost performance baseline
C. Scope baseline

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Project baseline refers to the original version of the project management plan. Once the project
management plan is baselined, it may only be changed by raising a change request.
Progressive Elaboration involves the process of taking a project from concept to detailed design.
Kick-off meeting happens after the planning phase and before the project execution. It is typically used
to communicate responsibilities of key stakeholders.

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Direct and Manage Project Work process includes performing the work defined in the PMP to achieve
project goals. The Input, Tools and Techniques and Outputs of this process are given below.

Monitor and Control project work process includes tracking and reviewing the progress of the project.

The change requests that get generated are evaluated as part of the Perform Integrated Change Control
process. The change requests on the project deliverables and project artifacts are managed in this
process. The Input, Tools and Techniques and Outputs of this process are given below.

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Change Control Board is formed to review change requests. It is used to approve or reject change
requests. After the project scope has been baselined, each requested change must go through a change
control review process.

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Project Manager needs to be proactive in looking for deviations from project plan and then take timely
corrective action. After that the Project Manager needs to evaluate the effectiveness of corrective
action, and measure performance of corrective action, and then determine the need for further
corrective action.

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When a change request is received, the following steps must be taken (in this order) 1. Evaluate (assess) the impact of change to the project
2. Create alternatives including cutting other tasks, crashing, fast-tracking etc.
3. Meet with management, sponsors etc.
4. Meet with the customer if necessary

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The Close Project or Phase is the process of formal completion of all project related activities.

At the end of each phase of a project, a lessons learned document must be prepared. The lessons
learned document defines what was done right, wrong etc. It is required to be completed in order for
the project to be completed.
Project Integration Processes
Process
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

Key Deliverables
Project Charter
Project Management Plan
Deliverables
Change Requests
Change Requests status updates
Final product

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Project Scope Management

The knowledge area of Scope Management includes the processes required to ensure that the project includes all
the work, and only all the work required to complete the project successfully. It is primarily concerned with
1 controlling what is and what is not in the scope.
Project Portfolio Management is the process of project selection. It involves making a decision about which project
2 an organization should execute.
3 There are two types of project selection methods. These are
Benefits Measurement
Constrained Optimization

3a

3b

Benefits Measurement project selection methods involve comparing the values of one project against
another. There are the following type of Benefit Measurement project selection techniques Murder Boards - This involves a committee asking tough questions from each project
Scoring Models - Different projects are given scores based on certain defined criteria. Project with
higher score is selected.
Benefits Cost Ratio - This technique involves computing benefits to cost ratio (BCR) for a project.
Project with higher BCR is selected.
Payback period - This technique involves considering how long it takes back to "pay back" the cost of
the project. Inflation or interest earned in not considered in this technique. A project with lower pay
back period is better.
Discounted Cash Flow - This technique takes into account the interest earned on the money. The
Future Value (FV) of projects is compared.
FV=PV(1+i)n
PV is the present value of the project. A project with higher present value is better.
Internal Rate of Return (IRR) - A project that has higher IRR is better, as it is giving higher return on
money.
Constrained Optimization Project selection methods are used for large projects. These are techniques
based on mathematical models. The Constrained Optimization techniques are Linear Programming
Non-Linear Programming
Integer Algorithm
Dynamic Programming
Multi-objective Programming

Expected monetary value of a project (or expected value) is equal to probability*impact. So if probability of a
project's success is 20% and revenue earned if successful is $100000, then the net value of the project will be
4 $20,000. A project with higher net value should be selected when performing project selection.
5 Management by Objective (MBO) is a management philosophy with three objectives Establish unambiguous and realistic objectives
Periodically Evaluate if objectives are being met
Take corrective actions.
MBO works only if management supports it.
6 Collect Requirements process involves documenting stakeholders needs to meet project objectives.

7 The Define Scope process involves defining detailed description of the project and major deliverables.
8 Create WBS is the process of dividing the project deliverables into smaller components.

Work Breakdown Structure (WBS) is an important part of the exam. It is a graphical representation of the hierarchy
of the project. The WBS template can be reused across projects. WBS forces the project team to think through all
9 the levels of the project. If a task is not in the WBS, then it is not part of the project.
WBS dictionary explains all the WBS components. Also WBS is input to most of the planning processes. Specifically
10 WBS is input to the following processes Cost Estimating
Cost Budgeting
Scope control
Activity Definition
Plan Purchases and Acquisitions
The Validate Scope is the process in which the project customer formally accepts the project deliverables. Scope
Validation happens at the end of each phase. During the Validate Scope process customer gives feedback on work
performed. While Validate Scope process focuses on customer acceptance, Perform Quality Control process
11 focuses on correctness of work.
12 Control Scope process involves monitoring the status of project and managing scope changes.
Scope Management Processes
Process
Plan Scope Management
Collect Requirements
Define Scope
Create WBS
Validate Scope
Control Scope

Key Deliverables
Scope Management Plan
Requirements document
project scope statement
WBS, WBS dictionary
Acceptance deliverables
Change Requests

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Project Time Management

1
Bar charts (or Gantt charts) are used to display tasks and their dates in a graphical fashion. They are
used to display information of the type task 1 is scheduled from date A to date B. Typically the date
range is displayed in the X-axis and the tasks on the Y-axis. Bar charts do not show task dependencies.
They are generally used to track progress and show to the team.
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Milestone charts are similar to bar charts but display only major events. They display major milestones
(for example bridge design completed). They are used to report status to Management.
3 Network diagrams are used to display activities and their dependencies. Network diagrams can be
used to perform critical path analysis. Network diagrams can also be used to perform crashing and fast
tracking of the project.
4 There are two type of network diagrams Activities on Node (or Precedence)
Activities on Arrow (or AOA)
Precedence is most commonly used. AON and AOA cannot have loops or conditional relationships.
5 Precedence (or Activity on Node) diagrams can be used to display four type of relationship between
activities. These are
Finish-To-Start
Start-To-Start
Start-To-Finish
Finish-To-Finish
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Finish-to-start relationship means the dependent activity cannot start until the first activity is finished.
This is the most common way to represent relationships between activities.
7 Activity on Array (AOA) network diagrams have the following characteristics.
AOA only uses Finish-To-Start relationship between tasks.
PERT and CPM can only be used with AOA.
Dummy events are shown with dotted lines. They do not take any time. They show dependencies
between tasks.
8 Longest path through the network diagram is called the critical path. The activities on the critical paths
are called critical activities.
9 Lags are inserted waiting times in between tasks. For example Task B cannot start until three days after
task A completes.
10 Slack or Float is the amount of time a task can be delayed without delaying the project. Tasks on the
critical path have zero float.
11 Critical Path Method (CPM) has the following characteristics.
It uses one time estimate per activity
It can be drawn only using AOA diagrams
It can have dummy events
12 Program Evaluation and Review Technique (PERT) has the following characteristics.
It uses three estimates per activity - optimistic, pessimistic and most likely
It can be drawn only using AOA diagrams
It can have dummy events
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PERT utilizes more information than CPM as it considers the "Pessimistic" and "Optimistic" values in
addition to the "Most Likely" value in its calculations. The following are formulae used by PERT Mean = (P + 4M + O)/6
Standard Deviation = (P-O)/6
Variance = ((P-O)/6)2
Here P is the pessimistic estimate, O is the optimistic estimate and M is the most likely estimate.
14 If a project has more than one critical paths then the risk to the project increases.
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Resource levelling refers to keeping the resources same across the duration of the project.

Time Management Processes

Process
Plan Schedule Management
Define Activities
Sequence Activities
Estimate Activity Resources

Key Deliverables
Schedule Management Plan
Activity List, Milestone list
Project Schedule network diagrams
Activity resource requirements, Resource breakdown structure

Estimate Activity Durations

Develop Schedule
Control Schedule

Activity duration estimates

Project Schedule
Work Performance measurements,
Change Requests

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Project Cost Management

Alternative identification process identifies other solutions to an identified problem.

Value Analysis approach is used to find more affordable, less costly methods for accomplishing the same task.
The Estimate Costs process takes the following inputs Scope baseline
Project schedule
Human resource plan
Risk register
Enterprise environmental factors
Organizational process assets
Depreciation is technique used to compute the estimated value of any object after few years. There are three type of
depreciation techniques. These are
Straight line depreciation The same amount is deprecated (reduced) from the cost each year.
Double-declining balance - In the first year there is a higher deduction in the value - twice the amount of straight line. Each
year after that the deduction is 40% less than the previous year.
Sum of year depreciation - Lets say the life of an object is five years. The total of one to five is fifteen. In first year we deduce
5/15 from the cost, in second year we deduce 4/15, and so on.
Analogous Estimating is an estimating technique with the following characteristics Estimates are based on past projects (historical information)
It is less accurate when compared to bottom-up estimation
It is a top-down approach
It takes less time when compared to bottom-up estimation
It is a form of an expert judgment
In Parametric Modeling Estimation, you use a mathematical model to make an estimate. It is of two types.
Regression Analysis-is a mathematical model based upon historical information.
Learning Curve model is based upon the principal that the cost per unit decreases as more work gets completed.
Bottom up estimation is same as WBS estimation. It involves estimating each work item and adding the estimates to get the
total project estimate.

You can expect five to ten questions related to Earned Value Management. These are generally pretty simple once you have
good understanding of the concepts, and remember the formulae. These formulae are explained below.
Planned Value (PV) refers to what the project should be worth at this point in the schedule. It is also referred as BCWS
(Budgeted Cost of Work Scheduled).
Earned Value (EV) is the physical work completed to date and the authorized budget for that. It is also referred as BCWP
(Budgeted Cost of Work Performed).

Actual Cost (AC) is the actual amount of money spent so far. It is also referred as ACWP (Actual Cost of Work Performed).
Estimate At Completion (EAC) refers to the estimated total cost of the project at completion.
CPI refers to Cost Performance Index. It is defined as
CPI = EV/AC
If CPI is less than 1, this means that the project is over budget.
BAC refers to Budget at Completion. It is related to EAC.
EAC = BAC/CPI
ETC refers to Estimate to Completion. It is defined as
ETC = EAC - AC
CV refers to Cost Variance. It is defined as
CV = EV - AC
SV refers to Schedule Variance. It is defined as
SV = EV - PV
Negative cost or schedule variance means that project is behind in cost or schedule.
SPI refers to Schedule Performance Index. It is defined as
SPI = EV/PV
VAC refers to Variance At Completion. It is defined as
VAC = BAC - EAC

The process of Cost budgeting defines time phased cost estimates for the project. For example, in the first month the project
will require $10,000. Cost estimating involves defining cost estimates for tasks. Cost budgeting defines cost estimates across
time.
The tools and techniques used for Estimate Costs are Expert judgment
Analogous estimating
Parametric estimating
Bottom-up estimating
Three-point estimates
Reserve analysis
Cost of quality
Project Management estimating software
Vendor bid analysis

Cost baseline refers to what is expected to be spent on the project. It is usually an S-curve. That is the expenditure is less in
the beginning, and the end. The expenditure is maximum during the middle of the project.
The after project costs are called life cycle costs.

Project Cost Processes

Process
Plan Cost Management
Estimate Costs
Determine Budget
Control Costs

Key Deliverables
Cost Management Plan
Activity Cost Estimates,Basis of estimates
Cost performance baseline
Work performance measurements

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Project Risk Management

1 A project risk is a potential source of deviation from the project plan. Project risks can have a negative or positive
impact on the project. Project risks that are negative are called threats. Project risks that are positive are called
opportunities.
2 Responses to threat include -Reducing the probability of risk
Developing contingency plans
Passively accepting consequences.
Transferring risk
Insurance is an example of transferring risk.
3 Non-critical risks should be documented. They should be revisited and reviewed regularly.
4 Risks are identified in all phases.
5 Work-around refers to how to handle risks that have occurred but are not part of risk response plan. This happens
in risk monitoring and control phase.
6 Delphi technique is most commonly used to obtain expert opinions on technical issues. It can be used to get
inputs on Scope, Estimates or Risks. Some characteristics of the Delphi technique are The experts identities are anonymous. They are not in the same room.
The PM tries to build a consensus among the experts.
Risk Management Processes
Process
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Monitor and Control Risks

Key Deliverables
Risk Management Plan
Risk register
Risk register updates
Risk register updates
Risk related contract decisions
Risk register updates

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Project Quality Management

The process of Plan Quality Management includes defining quality requirements of the project and documenting how the project will
ensure compliance.

Grade refers to category or rank given to entities having same functional use but different technical characteristics. As an example, for
different grades of hotels, the customers expectations are different. Poor grade may be acceptable, but poor quality is not.
The aim of quality is to ensure "Conformance to requirements" and "fitness for use".
Quality Policy defines the company goals and how to adhere to them. This acts as an input to Quality Planning for a project. Quality Policy
is part of Organizational Process assets.
Deming suggested a process of Plan-Do-Check-Act to improve quality. According to Deming, each process should go through these steps to
improve the quality.
Kaizen Theory - Apply continuous small improvements to reduce costs and ensure consistency.
Marginal Analysis - You compare the cost of incremental improvements against the increase in revenue made from quality improvements.
Optimal quality is reached when cost of improvements equals the costs to achieve quality.
The value of sigma of Normal Distribution are given below. These are important for the exam.
Normal Distribution Sigma values
Sigma
One sigma
Two sigma
Three sigma
Six sigma
Based on the above table, we can see that in six sigma one out of 10,000 items can have defects. In three sigma, twenty seven out of
10,000 items can have defects.
Giving extras i.e. doing more than the project scope is called gold-plating. PMI does not recommend gold-plating.
Quality must be planned in and not inspected in. Prevention is more important than inspection.
Quality Assurance is done during execution of the project. It includes Process of evaluating overall performance on a regular basis
Re-evaluating quality standards
Quality audits - structured review of quality activities that identify lessons learned. These lessons learned are used for process
improvement.
Perform Quality Assurance involves reviewing the quality requirements and auditing the results from quality control measurements.
Perform Quality Assurance uses data created during Perform Quality Control.
Perform Quality Control focuses on correctness of work. It includes inspections.
In Just-In-Time (JIT) Quality, the amount of inventory is zero. The inputs are made available, just when they are required. This reduces the
storage cost.
Rule of seven : In control charts, if there are seven points on one side of mean, then an assignable cause must be found.
The process of Analogous Estimation involves looking at the history of past projects, and use them to make estimates.
Quality Management Processes
Process
Plan Quality Managment
Perform Quality Assurance
Perform Quality Control

Key Deliverables
Quality Management Plan, Quality Metrics
Change Requests
Quality control measurements

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Project HR Management

1 Plan Human Resource Management process involves identifying and documenting project roles and responsibilities.
2 Acquire project team process involves identifying and obtaining the team necessary to execute the project.
Develop project team process involves improving the competencies of the team members and improving teamwork between
3 the team.
Responsibility Assignment Matrix (RAM) defines who does what. The Staffing Management Plan defines when will people get
4 added and removed from the project.
5 A Project Manager may yield authority over the project team in one of the following ways Referent - project team knows the PM
Formal Power - Power due to Project Managers position
Technical Power - Project Manager has strong technical skills in the projects domain.
Coercive Power - The project team is afraid of the power the Project Manager holds.
6 Conflicts in the team are caused due to the following reasons in decreasing order of occurrences.
Schedules
Project Priorities
Resources
Technical Opinions
So the most common cause of conflicts in projects are issues related to schedules.
7 Conflicts are best resolved by those in the team.

8 There are standard conflict resolution techniques available to resolve conflicts. These are (from best to worst) Problem Solving or Confrontation (look at the facts, analyze them and find a solution). This is an example of win-win
situation.
Compromising (Find the middle route). This is an example of loose-loose situation.
Withdrawal or Avoidance
Smoothing (Emphasize the agreements)
Forcing (Do it my way). This is an example of win-loose situation.
9 The process of problem solving has these steps Define the cause of the problem
Analyze the problem
Identify solution
Implement a decision
Review the decision, and confirm that the problem is solved.

10 Manage project team process is the process of tracking team member performance and managing issues within the team.
War room is a technique for team building. As part of this the project team meets in one room. It helps to create a project
11 identity.

12 Halo Effect is the assumption that because the person is good at a technology, he will be good as a project manager.
There are many organizational theories. Some of the main ones are - Expectancy Theory, McGregory Theory, Herzberg
13 Theory, Maslow's Hierarchy of needs.
Expectancy Theory - People accept to be rewarded for their efforts. This is a motivation factor. People put in more efforts
14 because they accept to be rewarded for their efforts.
McGregory Theory of X and Y - There are two type of employees. Employees of type X need to be always watched. They
cannot be trusted and need to be micro managed. Employees of type Y, on the other hand, are self-motivated. They can work
15 independently.
Herzberg Theory - Hygiene factors (salary, cleanliness etc.) if not present can destroy motivation. However good hygiene
alone does not improve motivation. What motivates people is the work itself. The motivation factors for employees include
16 responsibility, self-actualization, growth, recognition etc.

Maslow's Hierarchy of needs - there are various levels of needs for an employee. When a lower level is met, employee
attempts to reach the next higher level. The maximum satisfaction is achieved when the employee reaches the highest level
17 of satisfaction - self-fulfillment. These level of needs from the highest to lowest are Self-fulfillment
Esteem
Social

Safety
Physiology
Human Resource Management Processes
Process
Plan Human Resource Management
Acquire Project Team
Develop Project Team
Manage Project Team

Key Deliverables
Human Resource Plan
Project Staff assignments
Team performance assessments
Change requests

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Project HR Management

Plan Communications Management defines how and when the various stakeholders receive information, and communicate
with each other.
Memos, emails are examples of non-formal communication.
The total number of communication channels between n stakeholders is n(n-1)/2. So if there are ten stakeholders in a project,
there are 45 channels of communication.
Plan Communications process involves determining what kind of information should be shared with which project
stakeholder. This is documented in the Communication management plan. Also documented is how and when the
communication needs to be shared with stakeholders. T
Throughout the project duration, information is shared with stakeholders as planned. This sharing of information is part of the
Manage Communications process.
The Control Communications process involves sharing the project status reports and measurements with appropriate
stakeholders.

Communications Management Processes

Process
Plan Communications Management
Manage Communications
Control Communication

Key Deliverables
Communication Management Plan
Organization process assets updates
Performance Reports

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Project Communication Management

The Plan Procurement process involves build versus buy decisions.

A contract is a formal agreement. It is a legal document biding to both seller and buyer. Changes to contract must be in writing
and formally controlled. Most Governments back all contracts by providing a court system.

The process of Conduct Procurement involves receiving seller responses, selecting a seller, and awarding a contract. During this
process bids or proposals from sellers are evaluated, and one or more seller is selected to execute the work.
Sole Source refers to a market condition in which only one qualified seller exists in the market.
Single Source refers to a market condition in which the company prefers to contract with only one seller.
Oligopoly refers to a market condition where very few sellers exist, and the action of one seller will have impact on other seller
prices.
Bidder conferences are meetings between buyer and sellers before the bid is submitted. The conference is used by buyers to
provide consistent information to all sellers.
The process of Control Procurement involves managing procurement relationships and ensuring the seller performance meets
the procurement requirements.
Contract can be used as a risk management tool, as in transferring risk.
Centralized Contracting refers to a separate contracting office that handles contracts for all projects. In De-centralized
Contracting a contract administrator is assigned for each project.
Force majeure is a powerful and unexpected event, such as hurricane or other disaster.
Privity is contractual information between customer and vendor.
The process of Close Procurement involves completing each procurement. The process involves verifying that all planned work
as per the contract has been completed.
Procurement Management Processes
Process
Plan Procurement Management
Conduct Procurements
Control Procurements
Close Procurements

Key Deliverables
Procurement Management Plan
Selected Sellers, Procurement contract award
Change requests
Closed procurements