MODULE 2

Project Integration Management

Prosys

Solutions Intl

MODULE 2

Project
Integration
Managemen
t

Copyright Prosys Solutions

International
All rights Reserved

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Monitor and
Control project
Work
Develop Project
Management Plan

Perform Integrated
Change Control
Close
Project or
Phase

Develop
Project Charter
Direct and Manage
Project Work

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Project Integration Management

Includ
es
Processes & activities : to identify, define, combine,
unify, and coordinate the various processes &
Project Management activities within the Project
Management Process Groups
Characteristics of unification, consolidation,
communication & integrative actions that are crucial
to control project execution through completion,
successfully managing stakeholder expectations,
and meeting requirements
Decision making : Making choices about resource
allocation, making trade-offs among competing
objectives and alternatives, and managing the
interdependencies among the Project Management

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Process

Key Output

Initiating

Develop Project Charter

Project Charter

Planning

Develop Project Management

Plan

Project Management Plan

Executing

Direct & Manage Project Work

Monitoring
&
Controlling

Monitor & Control Project Work

Change Requests
Work Performance
Reports
Updates
o Approved Change
Requests
o Change Log
o Updates

Perform Integrated Change

Control

Closing

Close Project or Phase

Deliverables
Work Performance Data
Change Requests
Updates

Final product, service,

or result transition
Organisational Process
Assets Updates

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Management
by Objectives

The steps:
Establish unambiguous and realistic
objectives
Periodically evaluate if objectives are
being met
Implement corrective action
If the project is not inline with or does not
support the corporate objective, the project
is likely to lose resources, assistance, and
attention

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Develop
Project Charter

Input
Project Statement
of Work (SoW)
Business Case
Agreements
Enterprise
Environmental
Factors
Organizational
Process Assets

Process to develop a document formally

authorising the existence of a project or a phase,
providing project manager the authority to apply
organisational resources to project activities

Tools & Techniques

Expert
Judgment
Facilitation
Techniques

Output

Project
Charter

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Project Statement of Work (SoW)

Narrative description of projects
products, services, or results
Supplied by customer or project
sponsor/initiator
Includes:

Business need (business reason for doing

it)
Product scope description (characteristics
of the deliverables)
Strategic plan (how the project supports
organizational strategic aspects)

Business Case

Describes the necessary information

from a business standpoint to
determine whether or not the project
is worth the required investment
Typically explains:
Why this project is being undertaken
The problem solved by this project
Cost-benefit analysis

MODULE 2

Project Integration Management

Prosys

Solutions Intl

To gain and increase the profit

Increase Market Share
First step to get into a new market

Business Needs

Increasing customer satisfaction

Process Improvement (internal)
Increase Capability (manufacture)

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Product Description

Definition (What)
Function (What For)
Sources (Who)
How to make product description
(dont forget to define the
limitations, characteristics,
project size, product function)

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Benefit Measurement:

Comparative approaches, scoring models,

benefit contribution
Panel review, peer review, scoring, benefit
Selectioncompare to cost

Project
Method

Constrained Optimization

Mathematical approach
Linear programming, integer programming,
etc
NPV, IRR, Payback Period

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Project
Charter
Should be issued by a senior
manager external to the project of
level appropriate to the needs of the
project (not a project manager)

Functions
Hand over
Acknowledgement of PM & PM
organization
Defining Project Category
Determine Internal Kick Off

Benefits
Project manager authority
Recognition of the project
existence, or establishment of the
project
Provides project goals and

Project Charter
Document issued by project
initiator or sponsor that formally
authorizes the existence of a
project and provides the project
manager with the authority to
apply organizational resources to
project activities

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Project
Charter
Constraints
Factors that will limit the project
team option
The state, quality, or sense of
being restricted to a given
course of action or inaction
Applicable restriction or
limitation, either internal or
external to the project, that will
affect the performance of the
project or a process

Assumptions
Factors that, for planning
purpose, are considered to be
true, real, or certain without
proof or demonstration
Assumptions generally involve
a degree of risk

Project Charter
Business needs
Project purpose or justification
Measurable project objectives &
related success criteria
Requirement (high level)
Assumptions & constraints
Project description (high level) &
boundaries
Risk (high level)
Summary milestone schedule
Summary budget
Stakeholder list
Project approval requirements
Assigned project manager,
responsibility, authority level
Name & authority of the sponsor
or other person(s) authorizing the
Project Charter

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Economic Models for Project

Selection
Benefit-Cost Ratio (BCR)
Were looking for BCR > 1
Internal Rate of Return (IRR)

o a projects returns as an interest rate

o Were looking for a big number
o Q: you have to choose from project A with IRR of 18% or
project B with IRR of 14%. Which one is preferred? A:
Project A

Opportunity Cost
o The cost of other opportunities that are missed by investing
money in this project
o Were looking for small number as small as possible
o Q: you have to choose from project A with NPV US$30,000
or project B with NPV US$40,000. What is the opportunity
cost of selecting project B? A: $30,000

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Economic Models for Project

Selection
Present Value (PV)
o Based on the time value of money economic theory that a
dollar today is worth more than a dollar tomorrow
o Were looking for big number
o PV=FV (1+r)n ; where FV=Future Value, r=interest rate,
n=number of time periods

Net Present Value (NPV)

o Basically the same as PV, except that it also factors in the
costs
o Were looking for big number

Payback Period
o Number of time periods to recover investment before taking
the profit
o Were looking for shorter period

Return on Investment (RoI)

o The percentage showing what return is made by investing
in something

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Develop Project
Management Plan

Input
Project Charter
Output from
other processes
Enterprise
Environmental
Factors
Organizational
Process Assets

The process of defining, preparing, and

coordinating all subsidiary plans and
integrating them into a comprehensive
Project Management Plan

Tools & Techniques

Expert
Judgment
Facilitation
Techniques

Output

Project
Manageme
nt Plan

MODULE 2

Project

Project Integration Management

Prosys

Solutions Intl

Guide project execution

Document project planning assumption
Document project planning decision
Plan regarding alternatives chosen
Facilitate communication among
stakeholders
Define key management review
Provide a base line for progress
measurement and project control

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Project
Management
Plan

A formal, approved document that defines

how the projected is executed, monitored,
controlled, and closed
Baseline: original project plan with approved
changes. Used to monitor project progress
and forecast the project final cost & schedule
Kick off meeting:
Meeting of all parties
Held at the end of planning phase
Make everyone is familiar with the details of
the project and the people working on the
project

Project Integration Management

MODULE 2

Prosys

Solutions Intl

Project Management
Plan

Risk Management
Plan

Cost Management
Plan

Project Charter
A description of the PM approach or

Requirements
Management Plan

Schedule
Management Plan

strategy
Work Breakdown Structure (WBS)
Cost estimates, Schedule, Responsibility

Scope Management
Plan

Assignments (each task if necessary)

Performance measurement baseline
(scope, schedule, cost)

Staffing
Management Plan

Major milestone

Quality
Management Plan

Risk Response

Key staff

Procurement
Management

Change
Management

Configuratio
n
Managemen
Communication
t Plan
Management Plan

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Project Management Plan

component

Corresponding process

Scope Management Plan

Develop Project Management Plan

Time Management Plan

Develop Project Management Plan

Cost Management Plan

Develop Project Management Plan

Change Management Plan

Develop Project Management Plan

Configuration Management Plan

Develop Project Management Plan

Requirements Management Plan

Plan Scope Management

Scope Baseline

Create WBS

Schedule Baseline

Develop Schedule

Cost Baseline

Determine Budget

Quality Management Plan

Plan Quality Management

Process Improvement Plan

Plan Quality Management

HR Plan

Plan Human Resource Management

Communication Management Plan

Plan Communications Management

Risk Management Plan

Plan Risk Management

Risk Response Plan

Plan Risk Management

Procurement Management Plan

Plan Procurement Management

Stakeholder Management Plan

Plan Stakeholder Management

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Direct and
Manage Project
Work

Leading & performing the work defined

in the project management plan and
implementing approved changes to
achieve the projects objectives

Input

Tools & Techniques

Project
Management Plan
Approved Change
Requests
Enterprise
Environmental
Factors
Organizational
Process Assets

Expert
Judgment
Project
Management
Information
System
Meetings

Output
Deliverables
Work
performance data
Change requests
Project
Management
Plan updates
Project document
updates

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Direct & Manage Project Execution may

include:
Perform activities to accomplish project requirements
Create project deliverables to meet the planned project work
Provide, train, and manage team members assigned to the
project
Obtain, manage, and use resources including materials, tools,
equipment, and facilities
Implement the planned methods and standards
Establish and manage project communication channels, both
external and internal to the project team
Generate work performance data (cost, schedule, technical,
and quality progress, and status to facilitate forecasting)
Issue change requests and implement approved changes into
the projects scope, plans, and environment

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Direct & Manage Project Execution may

include:

Manage risks and implement risk response activities

Manage sellers and suppliers
Manage stakeholders and their engagement
Collect and document lessons learned and
implement approved process improvement activities
Requires review of the impact of all project changes
and implementation of approved changes:
Corrective action: realigning project work performance
with Project Management Plan
Preventive action: ensuring the alignment of future
project work performance with Project Management Plan
Defect repair: modifying nonconforming product or
product component

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Project Plan
Execution

Non-Project Plan
Execution
Implementing QA procedures

Implementing project plan

Completing project plan
Achieving work result
Committing project resources in
accordance with project plan
Taking preventive and corrective
action
Authorizing work
Holding team meeting

Communicating project
progress
Producing reports
Developing the team

MODULE 2

Project Integration Management

Prosys

Solutions Intl

The outputs:
Deliverables
o The most important output
o Unique and verifiable product, result, or capability to
perform a service that is required to be produced in order
to finish/complete the project

Work Performance data

o The second most important output
o Information on the status of deliverables raw observations
and measurements identified during activities being
performed to carry out the project work

Change requests
o A formal proposal to modify any document, deliverable, or
baseline, and may result in update(s) to parts of the Project
Management Plan
o Always track and manage changes properly to ensure that
project is going in accordance with the plan

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Monitor and Control

Project Work

Input
Project Management
Plan
Schedule forecasts
Cost forecasts
Validated changes
Work performance
information
Enterprise
Environmental Factors
Organizational
Process Assets

Tracking, reviewing, regulating, and

reporting the progress to meet the
performance objectives defined in the
project management plan.

Tools & Techniques

Expert
Judgment
Analytical
techniques
Project
management
information
system
Meetings

Output

o Change requests
o Work performance
reports
o Project
management plan
updates
o Project document
updates

MODULE 2

Project Integration Management

Solutions Intl

Monitor & control the project is

concerned
with:
Comparing
actual project performance

against Project Management Plan

Assessing performance to determine
whether any corrective or preventive
actions are indicated, and then
recommending those actions as necessary
Identifying new risks and analyzing,
tracking, and monitoring existing project
risks to make sure they are identified, their
status is reported, and that appropriate risk
response plans are being executed
Maintaining accurate, timely information
base concerning the projects product(s) &
their associated documentation through
project completion
Providing information to support status
reporting, progress measurement, and
forecasting
Providing forecasts to update current cost
and current schedule information
Monitoring implementation of approved

Prosys

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Perform Integrated
Change Control

Input
Project
Management Plan
Work Performance
Reports
Change Requests
Enterprise
Environmental
Factors
Organizational
Process Assets

Reviewing all change requests, approving

changes, and managing changes to the
deliverables, organizational process assets,
project documents, and the project
management plan; and communicating their
disposition

Tools & Techniques

Expert
Judgment
Meetings
Change
Control
Tools

Output
o Approved
change
requests
o Change log
o Project
management
plan updates
o Project
document
updates

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Integrated Change
Control
Concerned with:
Influencing the factors that create
changes to ensure that changes
are agreed upon
Determining that change has
occurred
Managing the actual changes
when they as occurred
Continuously managing changes to
the baseline:
Reject new changes
Approving new changes and
incorporating them into revised
project baseline

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Change Control System

Collection of formal,
documented procedures that
defines the steps by which
official project documents may
be changed.
It includes the paperwork,
tracking systems, and approval
levels necessary for authorizing
changes.

Change Control Board (CCB)

is formed to review change
request to determine if
additional analysis is
warranted. They approve or
reject the changes.
CCB include: project
manager, customer, experts,
sponsors

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Monitor & control

project work
Primarily focused on
managing the way that
the scope is executed

Perform integrated
change control
Primarily focused on
managing changes to the
projects scope

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Close Project or
Phase

Input

Project
Management
Plan
Accepted
Deliverables
Organizational
Process Assets

Finalizing all activities across all of

the Project Management Process
Groups to formally complete the
project or phase

Tools & Techniques

Expert
judgment
Analytical
techniques
Meetings

Output

Final Product,
Service or
Result
Transition
Organizational
Process Assets
Updates

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Close Project or Phase

Key benefits:
Provides lessons learned
Indicates the formal ending of project work
Releases organizational resources to pursue new endeavours

Includes all planned activities necessary for

administrative closure of the project or phase:
To confirm that the project or phase has met all stakeholders
requirements
To verify that all deliverables has been achieved and accepted
To satisfy completion or exit criteria for the phase or project
To transfer the projects products, services, or results to the
next phase or to production and/or operations
To collect project or phase records, audit project success or
failure, gather lessons learned, and archive project
information for future use

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Close Project or
Phase
Final Product, Service,
or Result Transition
Organizational Process
Assets Updates
Project files
Project or phase closure
documents
Historical information

MODULE 2

Project Integration Management

Prosys

Solutions Intl

Exercise:

Project
Integration
How do we formalize a project to a project manager?
Management
Why is it important to formalize the project?
What is a Project Charter?
Who should authorize the Project Charter?
What is a Project Management Plan?
How can the process of project/phase closure benefit us?