Project Management Professional (PMP ... - IIL

Participant’s Notes:

© International Institute for Learning, Inc.

The following Project Management Institute (PMI)®

registered terms may be used in this document, with the first occurrence represented here:• A Guide to the Project Management Body of

Knowledge (PMBOK® Guide)• Project Management Professional (PMP)®

• Certified Associate in Project Management (CAPM)®

• Program Management Professional (PgMP)®

• Portfolio Management Professional (PfMP)®

• PMI Scheduling Professional (PMI-SP)®

• PMI Risk Management Professional (PMI-RMP)®

• PMI Professional in Business Analysis (PMI-PBA)®

• PMI Agile Certified Professional (PMI-ACP)®

PMI, PMBOK, PMP, CAPM, PgMP, PfMP, PMI-SP, PMI-RMP, PMI-PBA, and PMI-ACP are marks of the Project Management Institute, Inc.

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Project Integration Management

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Project Management Professional (PMP)® Certification Prep


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Review these learning objectives carefully.

The learning content contained within this module is based on these learning objectives.

We will cover the key process interactions of project charter development, project management plan development, project execution, and change control.

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Project Integration Management includes the processes and activities to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project Management Process Groups.

PMBOK® Guide – Sixth Edition, Glossary

Project Integration Management deals with key deliverables and processes designed to combine and coordinate information about the project. The deliverables produced here are used throughout the project as a guide to performing and controlling the entire project. It includes documents like the project charter and the project management plan. It also includes processes like managing and controlling the project work, change control and proper closing of the project.

Project Integration Management:

• Provides a systematic approach to managing the project

• Ensures common focus among stakeholders

• Aligns resources with project needs and priorities

• Ensures work on the project is blended into ongoing operations or work within a phase is blended into work in subsequent phases

The accountability for conducting integration management cannot be delegated. It is the project manager’s responsibility to ensure integration occurs because the project manager is ultimately responsible for the for the project as a whole.

Note: The arrow on this slide, and process slides in subsequent modules, does not portray a linear flow of these processes. Many processes will be performed in an iterative manner and not necessarily in the order depicted.

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An understanding of one’s role as the project manager and the role of the project sponsor is essential to ensure early project integration. The project sponsor is the person or group that provides the financial resources, in cash or in kind, and should:

• Champion the project

• Serve as a spokesperson to higher levels of management to gather support throughout the organization

• Promote the benefits the project will deliver to the receiving organization

• Lead the engagement and selection process, until the project is formally authorized

• Play a significant role in the development of the initial scope and charter

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Project management is extremely iterative and requires a high degree of involvement with stakeholders. Tradeoffs are constantly made between competing constraints, which must be managed to ensure project success. Project success should also be measured with consideration toward achievement of the project objectives. In other words, it is possible to deliver a project according to the triple constraints of time, cost and scope, and yet have an unsuccessful project because the client is not satisfied.

Key stakeholders and the project manager should want to be able to identify the success factors for the project and the metrics to be used to measure such success. Additionally, they’ll want to know what factors will contribute to success and which ones will be obstacles to successful

Dr. Harold Kerzner narrows the competing demands to the “triple constraints” that include:

• Time

• Cost

• Performance/Technology

If the project is to be accomplished by an outside company, Dr. Kerzner describes a fourth constraint: Good Customer Relations.

Adapted from Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 12th Edition, by Harold Kerzner, Ph.D., pp. 5 and 6

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Most organizations work in a multi-project environment requiring good stewardship of resources. The group of projects within a department or organization are often referred to as the project portfolio which is defined as “projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives.”


What process does your organization follow to select projects for a portfolio?

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During project initiation, high-level requirements may be provided by stakeholders that are external to the project. The charter provides authority for the project to move forward, names the project manager and authorizes the project manager to expend resources on behalf of the project. Note that the initiating process is not only performed at the beginning of the project, but also at the beginning of each phase to validate the charter.

In the initiating processes the project manager meets with the sponsor, customer and other stakeholders to assess the feasibility of new products or services given assumptions about the environment, available resources, and other projects within the organization. The project manager should also consider constraints and how constraints can impact the feasibility of the project, such as a limited budget, regulatory requirements, timing and so forth.

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A business case provides the justification for the organization to take on a project. The elements of a business

case include, but are not limited to:

• Business needs

• Analysis of the situation

• Feasibility

• Impact

• Cost savings or growth

• Recommendation

• Evaluation

Business case is developed in response to:

• New technology. A software firm authorizes a new project to develop better artificial intelligence functions.

• Competitive forces. A rival competitor has just started a 2-day home delivery option and your company

needs to match their service.

• Political changes. A government agency just learned that the new political appointee has decided to launch

a new service for Veterans.

• Market demand. A consumer electronics company has created a new wearable heart monitor.

• Economic changes. An abrupt rise in consumer spending has created a need to develop additional services.

• Stakeholder demands. A key stakeholder requires automated support for a new accounting application.

• Customer request. An electrical utility builds a new plant to satisfy the demands of a new aluminum plant.

• Legal requirement. New financial regulations require updating several databases.

• Business process improvements. An organization authorizes a project based on a Sixth Sigma analysis of

customer retention practices.

• Strategic opportunity or business need. A training organization decides to create new courses based on

video.

• Social need. A non-profit launches a project to develop a technique to convert ground water into drinking

water.

• Environmental considerations. A company authorizes a project to reduce its carbon footprint to zero.

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Adapted from: PMBOK® Guide – Sixth Edition, Part 1, Table 1.1, p. 9

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Project Management Professional (PMP)® Certification Prep Project Integration Management



Break-even analysis is a profit planning method that determines the point at which the cash outflows and cash in-flow become equal. In business this is a major milestone. The objective here is to determine at what point in time the cash outflows (the expenditures incurred for implementing the product) will equal the cash in-flows. If the time frame is within the acceptable range for the organization, the project may be selected.

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The payback period is the exact length of time needed for a firm to recover its initial investment as calculated from cash inflows. Payback period is the least precise of all capital budgeting methods because the calculations are in dollars and are not adjusted for the time value of money.

Time value of money …currency today is worth more than it will be one year from now.

Adapted from Project Management: A Systems Approach to Planning, Scheduling, and Controlling,

12th Edition, by Harold Kerzner, Ph.D., p. 488

Compare the result of this method that does not apply the time value of money to Net Present Value in the next slide.

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Net present value (NPV) is a capital budgeting method that equates the discounted cash flow, expressed in terms of the present value (PV) against the initial investment. The NPV requires calculating the PVs of the cash in-flows for each year of the project. The PVs are added together to produce a sum of the present values, and then the initial investment is then subtracted to produce the resulting NPV. Ideally, the NPV should be greater than zero. An NPV of less than zero indicates that the investment will actually result in a negative return on the investment.

Present Value (PV) = Future Value (F) x Factor [1 / (1+i)n]

• i = discount rate per period (cost of capital)

• n = number of periods (may be years)

Refer to page 490 in Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 12th Edition, by Harold Kerzner, Ph.D.

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Today, it’s very important to show the link between the project and the corporate strategy. It is equally as important to formally acknowledge that the project exists and will require the organization’s resources to be completed. The Project Charter accomplishes both of these objectives.

An idea for a project is developed or a need is discussed, and a project request is prepared for submittal to the body responsible for project selection that may be a board, approval team, or project governance board. The originators of the project request will provide sufficient information and the appropriate level of detail that is necessary to determine if the project will be approved.

The information about the project must address the following questions:

• What is the driving need for the project? For example, the project will improve the turnaround time on an order fulfillment process.

• What is the connection to the corporate strategy? For example, the project will position the company for entry into a new market.

• What problem will it solve or opportunity will it exploit? For example, the project will improve the quality of a product that has resulted in customer dissatisfaction.

• What benefits will be realized? For example, the project will increase revenue or result in substantial savings.

If there is agreement to select the project, given the benefits presented merit adding the project into the project portfolio, the project charter is the instrument that documents that decision, demonstrates the organization’s commitment to the project, and empowers the project manager to lead the effort.

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The PMBOK® Guide – Sixth Edition defines the following for this first Project Integration Management process:

Inputs

• Business documents

• Agreements

• Enterprise environmental factors

• Organizational process assets

Tools & Techniques

• Expert judgment

• Data gathering

• Interpersonal and team skills

• Meetings

Outputs

• Project charter

• Assumption log

Adapted from: PMBOK® Guide – Sixth Edition, Part I, Figure 4-1, p. 71

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Project managers will need to employ effective meeting management skills, including conflict resolution and problem solving while helping to develop the project charter.

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Project Charter: A document issued by the 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.


To see a list of the topics addressed in a project charter please refer to the PMBOK® Guide, page 81.

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General Dwight D. Eisenhower once said something along the lines of “plans are nothing, but planning is everything.” But even Ike knew you had to plan, and plan well. That is why the project management plan is such an important document. It informs all the stakeholders how you, the project manager, will manage the project in its many forms. The Project Management Plan is comprehensive in that it includes a variety of subsidiary plans such as the Cost Management Plan, Quality Management and Risk Management to name a few. Without a comprehensive plan, project management is chaotic and unstructured. While you may diverge from the plan, and in some cases by a wide margin, it is better to always start a project with a strong sense of direction.

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The PMBOK® Guide – Sixth Edition defines the following for the second Project Integration Management process:

Inputs

• Project charter

• Outputs from other processes



Tools & Techniques

• Expert judgment

• Data gathering


• Meetings

Outputs

• Project management plan


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Not everything in the PMBOK® Guide should be used on every project. Nor should it always be applied in the same manner. The project manager, along with the project team, should fit the techniques and rigor to the situation. Over-application of the processes in the PMBOK® Guide or of an organizational methodology can lead to unnecessary bureaucracy, needless paperwork and wasted effort.

Experience is sometimes the best judge of what will work and not work in applied situations. Remember to always apply your knowledge and understanding in context.

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“The project management plan is the document that describes how the project will be executed, monitored, and controlled, and closed.”


The project management plan integrates and consolidates all of the subsidiary management plans and baselines from the planning processes. Project baselines include, but are not limited to scope, schedule and cost baselines. For example, in IT projects there may be other baselines that need to be set, such as a “frozen” set of requirements to allow development to move forward. Subsidiary plans are derived from the ten knowledge areas and discuss “how” these elements should be managed.

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Communicate the project management plan to gain approval by the sponsor and other key stakeholders. Additionally, it is equally important to communicate the plan to the core and extended team during the kick off meeting.

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This is where “the rubber meets the road”: project execution. This is the job of the project manager, to make sure that each activity has the designated resources required to complete the job and that the work is getting done according to schedule and within budget.

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The PMBOK® Guide – Sixth Edition defines the following for the third Project Integration Management process:

Inputs• Project management plan• Project documents • Approved change requests• Enterprise environmental factors• Organizational process assets

Tools & Techniques• Expert judgment• Project management information system• Meetings

Outputs• Deliverables• Work performance data• Issue log• Change requests• Project management plan updates• Project documents updates• Organizational process assets updates


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Direct and Manage Project Work uses expert judgment and a project management information system as the key tools and techniques to implement the process. Expert judgment is used to assess the inputs, and this judgment and expertise is applied to all technical and management details. The project manager and project team will leverage the project management information system in their efforts to:

• Produce deliverables

• Collect and distribute work performance data

• Manage change

The system is comprised of many automated tools, such as a scheduling software, configuration management system, information collection and distribution system, or web interfaces to other online systems, as well as other project management processes.

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It was once said “ a project without scope changes indicates an unhappy customer”

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During any project the project manager and team can rely on the experiences of others in the organization that have managed similar projects. This is valuable information because, if used correctly, it can eliminate mistakes made in the past on the current project. New knowledge is also created due to the fact that the project is unique and has never been done before; therefore, the experiences gained can also be used by others in the organization at a later date. Because both types of knowledge are so important, it is critical that we manage it to make sure it isn’t lost or forgotten.

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The PMBOK® Guide – Sixth Edition defines the following for the fourth Project Integration Management process:

Inputs


• Project documents

• Deliverables



Tools & Techniques

• Expert judgment

• Knowledge management

• Information management


Outputs

• Lessons learned register

• Project management plan updates

• Organizational process updates


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Knowledge management can be difficult in many organizations because there is no structured approach to identify, store, and access the volumes of information created on a daily basis. KM in a project setting, is designed to make sure that a project manager has access to the lessons learned of other project managers so as to facilitate his or her management of the existing project. Additionally, as new knowledge will invariably be created in the current project, that information must not be lost. It must be codified and stored for others to access as well. While conducting lessons learned is certainly a key component of KM, it is only one of many activities that are a part of a well-structure KM approach.

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Expert judgment-expertise should be considered from individuals and groups with specialized knowledge

These tools connect people so they can work together and create new knowledge. Such tools include

• Networking

• Communities of practice

• Meetings

• Work shadowing and reverse shadowing

• Discussion forums

• Knowledge-sharing events (e.g., conferences)

• Workshops

• Storytelling

• Creativity and ideas management techniques

• Knowledge fairs

• Training

Information management: used to create and connect people. Examples include

• Methods for codifying explicit knowledge

• Lessons learned register

• Information gathering

• Project management information system (PMIS)

Interpersonal and team skills include:

• Active listening

• Facilitation

• Leadership

• Networking

• Political awareness

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Once the project management plan starts to be executed the project manager needs to know how actual performance varies from the original plan. There are two types of variance: acceptable and unacceptable. So, how does a project manager know what the variances are to time, cost and scope (as well as other key metrics)? By monitoring all the activities underway and comparing the results to the plan.

Should the project manager identify an unacceptable variance, then it is incumbent upon him or her to take “action” to bring the project in line with the plan. In other words, he or she needs to exert control through various decisions. Thus, monitoring and controlling a project is where the project manager will undoubtedly spend most of their time and energy on the project. Projects don’t run themselves; project managers run the project.

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The PMBOK® Guide – Sixth Edition defines the following for the fourth Project Integration Management process:

Inputs



• Work performance information

• Agreements



Tools & Techniques

• Expert judgment

• Data analysis

• Decision making

• Meetings

Outputs

• Work performance reports

• Change requests


• Project documents updates

Adapted from: PMBOK® Guide – Sixth Edition, Part I,

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Figure 4-1, p. 71

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Monitoring project work results in gaining insight into the project health when the project team engages in activities. The team will use the project management plan, performance reports, enterprise environmental factors, organizational process assets and expert judgment to achieve the desired outcomes.

You will also see references to expert judgment which includes thoughts, opinions and experiences inside and outside the project team. For example, there might be an individual within the organization that has specialized knowledge pertinent to the current project. In the PMBOK® Guide, the term control, in many cases, implies monitoring.

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Cost and schedule forecasts are compared to the baselines in the project management plan to calculate variances and determine if the variances are acceptable.

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Here are some examples:

• Requirements – changes by the customer

• Schedules – slippage of a task

• Costs – actual cost is different from planned

• Risk – new risks that may require re-planning

• Quality – changes in quality due to poor control

• Adherence to standards – failure to meet standards

• Scope (product or service definition) –unauthorized work or scope creep

• Resources (skill level, availability) – untrained resources

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To manage problems effectively, a problem-solving and decision-making process is needed. The process will keep the team focused on the issues and drive the team to identify solutions. There are seven general steps in a problem-solving/decision-making process.

You cannot determine the true status of a project just by looking at the schedule. Similarly, you cannot determine the status of a project just by looking at the expenditures. Spending 30 percent of the budget does not mean that you have completed 30 percent of the work. Completing 30 percent of the work does not mean that you spent 30 percent of the budget.

To accurately determine status, the project manager must look at the cost and schedule together. For example, assume the schedule variance is favorable, but the cost variance is unfavorable. You are ahead of schedule but over budget. Possible causes are an acceleration of the work, use of higher salaried labor, use of overtime, adding more resources, or overlapping activities. In another example, the schedule variance is unfavorable but, cost variance is favorable. You are behind schedule but under budget. A possible cause for this situation might be that there are not

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enough resources working on the project at the time of measurement.

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The basic and most effective method for identifying and managing variances and controlling project activities is communication. A communication plan developed during the project kickoff and initiation process should include information about how change will be managed and how variances will be detected and acted upon. For example, a communication plan for reporting and managing project performance should include:

• Identification of the people who are responsible for reporting performance

• The stakeholders who will receive these reports

• The types of reports to be prepared and delivered (status reports, budget reports)

• Tolerance range for variation

• When reports must be prepared and sent

• How the reports will be sent (e.g., via e-mail)

• Where the reports will be filed

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There’s an old saying that goes something like this: “The only two things that are certain in life are death and taxes.” In project management, we can add a third “There will be change on your project.” Very few projects every go as planned, there are always changes. Sometimes the changes are minor; in other instances, they are major. Regardless of the nature of the change, it is critical to control change so that it doesn’t get out of hand. And, the way we accomplish this is to follow a formal process of change control that keeps everyone apprised of the impacts of such change. That is the role of integrated change control which is a process conducted from project inception through completion.

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The PMBOK® Guide – Sixth Edition defines the following for the fifth Project Integration Management process:

Inputs



• Work performance reports

• Change requests



Tools & Techniques

• Expert judgment

• Change control tools

• Data analysis

• Decision making

• Meetings

Outputs

• Approved change requests




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Changes may be requested by any stakeholder involved in the project. And the process requires coordination of changes across the entire project, which includes:

• Review, approving, or denying all recommended and preventive actions

• Documenting the complete impact of a change request, e.g. a proposed schedule change will affect the cost baseline.

• Insuring baseline integrity by updating the project management plan in response to approved changes and communicating those approved changes to the team

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Expert judgment and change control meetings are the tools and techniques used to achieve desired outcomes. A configuration management system with integrated change control provides a standardized, effective, and efficient way to centrally manage approved changes and baselines. Configuration management is focused on the specification of both the deliverables and the process while change control is focused on identifying, documenting and controlling changes to the project and product baselines

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Configuration Management (CM) CM is the process of identifying the configuration of the product at discrete points in time. CM is also the systematic control of changes to the identified configuration for the purpose of maintaining product integrity and traceability throughout the product life cycle. CM consists of three key concepts. 1. Configuration Identification 2. Configuration Status Accounting 4. Configuration verification and audit.

Configuration Identification Is the process of defining each baseline to be established during the hardware, software, or system life cycle. It describes the Configuration Items and their documentation that make up each baseline. A Configuration Item refers to each of the locally related components that make up some discrete element of the product.

Configuration Status Accounting. Is the process of ensuring that each configuration item is included in the product.

Configuration Verification and Audit. Is the process of verifying that a deliverable hardware, software, or system baseline contains all of the items that are required for delivery. The process also ensures that these items have been verified and satisfy their requirements.

Adapted from Software and Hardware Configuration Management, NASA, IVV 10 Version: J Effective Date: May 19, 2017

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A change control board is responsible for meeting and reviewing the changes requests and approving or rejecting those change requests. The roles and responsibilities of these boards are clearly defined and are agreed upon by appropriate stakeholders. All change control board decisions are documented and communicated to the stakeholders for information and follow-up actions.

The desired outcome of Perform Integrated Change Control is to follow the change management plan to appropriately process change requests; maintain the project baseline, by updating the plan and establishing a new baseline, if needed; update other documentation, as a result.

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One of the most often overlooked process, is that of closing a phase or the entire project. There can be several reasons for closing a project. These include completion of requirements and termination by stakeholders. The goal of closing a phase or a project is the orderly handoff of deliverables to another performer or end user. If a stakeholder terminates the project for cause, then the goal might include salvaging parts of the project to be reused or recapture/avoid some of the project costs.

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The PMBOK® Guide – Sixth Edition defines the following for the sixth Project Integration Management process:

Inputs

• Project charter



• Accepted deliverables

• Business documents

• Agreements

• Procurement documentation


Tools & Techniques

• Expert judgment

• Data analysis

• Meetings

Outputs


• Final product, service, or result transition

• Final report

• Organizational process assets updates

Adapted from: PMBOK® Guide – Sixth Edition,

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Part I, Figure 4-1, p. 71

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Expert judgment is applied when performing administrative closure activities. These experts ensure Historical information and the lessons learned knowledge base are referenced to achieve the desired outcomes, which are to transition the final product, service or result and to update the organizational process assets.

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Projects provide valuable information for improving:

• Standards

• Project management methodology

• Estimating

• The way business is conducted

Information gained from the lessons learned process becomes an organizational process asset for future phases or projects.

All of this information is intellectual property and must be captured for future use. Lessons learned reviews are the way to obtain this information, and this is achieved by conducting a postmortem analysis meeting. The four questions in the bulleted list above should be the focus of the meeting and must be addressed. Additionally, critical information, i.e. the key performance indicators (KPIs) and the critical success factors (CSFs) should be captured, documented and disseminated.

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All product and project deliverables need to be properly transitioned or archived. Project artifacts may be stored in paper form, or electronically. The history of the project needs to be indexed and organized so the information is easy to locate for future project or for auditing purposes. Many industries have statutes that require the project records be retained (record retention policies) for many years after the project is complete.

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At the end of the project or the end of a project phase the project manager should assess how well the project delivered the stated objectives in the charter and the how well it met the perceived cost benefit information from the business case. The initial business case should be reviewed and the actual costs and benefits should be entered to determine if the financial business goals were achieved.

Status information on the final schedule and budget should be analyzed to determine the cause of variances and the final project outcome. The project management plan should be reviewed to determine if the approach to the project was appropriate and if it was followed.

In some cases it is appropriate to conduct interviews with team members to provide an robust project review. The project manager can also have a third party conduct a project debrief or lessons learned session. Another technique is to conduct a 360 review of the stakeholders, such as the sponsor, customer, end user, team members, the PMO and any other relevant stakeholders. Information from the 360 can be synthesized to provide a qualitative assessment of the project

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RESPONSIBILITY STANDARDS

We make decisions and take actions based on the best interests of society, public safety, and the environment.

We can demonstrate taking actions based on the best interests of society, public safety and the environment when we initiate a project for social good. Additionally, we can look for ways to contribute to society as we plan the approach for our project.

We accept only those assignments that are consistent with our background, experience, skills, and qualifications.

As project managers, we are assigned to projects. If we don’t feel we are qualified for the project, it is our responsibility to communicate our concern. Where possible, we should endeavor to educate ourselves to uphold and better our qualifications for all projects.

We inform ourselves and uphold the policies, rules, regulations and laws that govern our work, professional, and volunteer activities.

During project initiation, we discover enterprise environmental factors that impact our project, such as regulations, standards and policies. It is our responsibility to inform ourselves and our team and uphold those regulations.

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