1 INTEGRATION MANAGEMENT 4.1 Develop Project Charter: The process of developing a document that formally authorize a project or a phase and provides the project manager with the authority to apply organizational resources to project activities. The initiator's (sponsor) signature on the Charter authorizes the project. The approved Project Charter formally initiates the project. SOW: The essential elements of the SOW are 1. WHAT is to be done (Product Scope Description), 2. The business REASON for doing it (Business Need), and 3. HOW the project supports the organization's strategy (Strategic Plan). And it is a written description of the project's product, service, or result. For Internal Projects, the Project Initiator or Sponsor provides. For External Projects, the Customer provides as part of a bid document. PMI calls a SOW for external organizations 'a contract statement of work'. Project Selection Methods: 1- Benefit Measurement Methods(Comparative approach): i) Economic Models ii) Scoring Models iii) Peer Review iv) Murder Board Economic Models PV, NPV, IRR, Payback Period, Cost-Benefit Analysis Present Value (PV) and Net Present Value (NPV): Bigger PV or NPV makes a project more attractive. Internal Rate of Return (IRR) - Bigger is better Payback Period - a Shorter payback period is better than a longer one. Cost-benefit Analysis calculates benefit cost ratio. >1 means benefits are greater than cost; <1 means costs are greater than benefits. Economic Value Added (EVA) whether the project returns to the company more value than initiative cost Opportunity Cost - 'What is the cost of the other opportunities we missed by investing our money in this project?' The Smaller the opportunity cost, the better The opportunity cost when selecting between two projects is simply thevalue of the project that is not selected. Sunk Cost expended cost. Should not be considered while taking decision about troubled project Law of diminishing Returns states that after a certain point, adding more inputs will not produce proportional increase in productivity Working Capital Current Assets minus current liabilities Return on Investment (ROI) - Bigger is better. Return on Invested Capital (ROIC) = Net Income (after tax) from Project / Total Capital Invested in the Project. Depreciation Large Asset purchased by a company lose value over time o Straight Line Depreciation same amount of depreciation take each year e.g. $1,000 item with 10 year useful life with no salvage value (how much item is worth the end of life) would be depreciated at $100 per year o Accelerated Depreciation
INITIATING 2 2- Constrained Optimization Methods: i)linear ii)non-linear iii) Dynamic iv) Multi-objective algorithms Project Charter Project Charter is created based on some need, and it should explain that need. PC is signed by the performing organization's Senior Management. PC names the PM and gives PM authority to manage. PC should include the high-level project requirements, high-level Project Description, high-level Risks. PC should include a high-level milestone view of the project schedule. PC is a high-level document that does not include project details; the specifics of project activities will be developed later. PC includes a summary-level preliminary project budget. Show organizational, environmental and external CONSTRAINTS and ASSUMPTIONS. If it was not created in any troubled project then it should be created immediately after identifying this. No matter how much % project is over 1. Project Statement of Work (SOW) 1. Expert Judgment 1. Project Charter (PC) 2. Business Case (is the document that justifies why the project should be accomplished) 2.Facilitation technique 3. Agreement/ Contract 4. EEF 5.OPA
EXECUTING PLANNING 4.2 Develop Project Management Plan: The process of defining, preparing and coordinating all subsidiary plans and integrating them into a comprehensive project management plan. The Project Plan is "a formal, approved document that defines HOW the project is executed, monitored and controlled, and closed. It may be summary or detailed and may be composed of one or more subsidiary management plans and other planning documents". It would be approved by * The Project Manager, * The Project Sponsor, * The Functional Manager who are providing resources for the project. (For the exam we will do much better to think of the Project Management Plan as always being DETAILED). Project Management Plan contains Scope + Schedule + Cost Baseline Subsidiary plans Requirement, Configuration, Change, Scope, Schedule, Cost, Quality, Process Improvement, HR, Communication, Risk, Procurement, Stakeholder Other things Lifecycle selected 1. Project Charter 1. Expert Judgment 1. Project Management Plan 2. Outputs from other Processes 2.Facilitation Techniques 3. Enterprise Environmental Factors 4. Organizational Process Assets 4.3 Direct and Manage Project Work: The process of leading and performing the work defined in the project management plan and implementing approved changes to achieve the project's objectives. Change Requests is a formal proposal to modify any document, deliverables or baseline 1.Corrective Actions: An intentional activity that realigns the performance of project work with project management plan 2. Preventive Actions: An intentional activity that ensures future performance of the project work is aligned with project management plan 3. Defect Repair: An intentional activity to modify a nonconforming product or product component 4. Updates: Changes to formally controlled project documentation, plans, etc., to reflect modified or additional ideas or content. # Corrective and Preventive Actions do not normally affect the Project Baselines, only the performance against the baselines. # Work performance data raw observations and measurements identified during activities being performed to carry out project work. Data is gathered through work execution and passed to the controlling process e.g. No of CR, No of defects, start and finish dates of schedule 3 1. Project Management Plan 1. Expert Judgment 1. Deliverables 2. Approved Change Requests 2. Project Management Information System - 2. Work Performance Data PMIS 3. Enterprise Environmental Factors (It can include both manual and automated systems 3. Change Requests
M & C 4. Organizational Process Assets used together, integrate, and disseminate the 4. Project Management Plan Updates outputs of the Develop Project Management Plan Process) 3. Meetings 5. Project Document Updates 4.4 Monitor and Control Project Work: The process of tracking, reviewing, and reporting the progress to meet the performance objectives defined in the project management plan. # Mid-Project Evaluations is conducted while project work is still in progress. The main purpose of such evaluations is to determine if objectives are still relevant and if these objectives are being met. Lessons Learned should also be documented at this time instead of waiting for the project to be completed. A third party or people outside the team should be used to conduct mid-project evaluations. #Work Performance Report are physical or electronic representation of work performance information compiled in project documents, intended to generate decisions, actions or awareness. E.g. status reports, memos, justifications. 1. Project Management Plan 1. Expert Judgment 1. Change Requests 2. Schedule forecast (o/p Control schedule) 2. Analytical Techniques 2. Work Performance Report 3. Cost forecast (o/p Control cost) 3. PMIS 3. Project Document Updates 4. Validated Changes (o/p control quality) 4. Meetings 4. Project Management Plan Updates 5. Work Performance Information (o/p all other control processes) 6. OPA 7. EEF 4.5 Perform Integrated Change Control: The process of reviewing all change requests, approving changes, and managing changes to 1. Deliverables 2. Organizational process assets 3. Project documents and 4. Project management plan. It brings together (integrates) all of the other Monitoring and Controlling Processes. And it evaluates the IMPACT of a change across the entire project. Changes may be requested by any stakeholder involved with the project. # Perform Integrated Change Control is primarily focused on MANAGING CHANGE to the project's SCOPE, while Monitor and Control Project Work is primarily focused on MANAGING THE WAY that SCOPE is EXECUTED. # Approved Change Requests will be implemented by the Direct and Manage Project Execution process. # CCB is responsible for reviewing changes and change requests and its level of authority should be spelled out in the Project Management Plan. 4
CLOSING M & C #Configuration Control is focused on both deliverables and processes 1. Configuration Identification 2. Configuration Status Accounting 3. Configuration Verification and Audit 1. Project Management Plan 1. Expert Judgment 1. Approved Change Request 2. Work Performance Report 2. Change Control Meetings 2. Change log 3. Change Requests 3. Meetings 3. Project Document Updates 4. Enterprise Environmental Factors 4. Project Management Plan Updates 5. Organizational Process Assets 4.6 Close Project or Phase: The process of finalizing all activities across all of the Project Management Process Groups to formally complete the project or phase. It is all about shutting the project down properly. This includes creating the necessary documentation and archives, capturing the lessons learned, ensuring that the contract is properly closed, and updating all organizational process assets. # The Transition implies that the product has been accepted and is ready for this handover. #TT2 Analytical Technique Regression Analysis, Trend Analysis 1. Project Management Plan 1. Expert Judgment 1. Final Product, Service, or Result Transition 2. Accepted Deliverables 2. Analytical Technique 2. Organizational Process Assets Updates 3. Organizational Process Assets 3. Meetings # Project Charter's key aspects are: Project description High level description plus purpose Project Requirement stakeholders expectation Assigned PM and authority Level Summary Milestones Business Case why it makes sense to do a project # Change Control System: A set of procedures that describes how modifications to the project deliverables and documentation are managed and controlled. In many areas the Change Control System is a subset of the Configuration Management System. #Configuration Management System : A collection of formal documented procedures used to apply technical and administrative direction and surveillance to: identify and document functional and physical characteristics of product, result, service or component; control any changes to such characteristics; record and report each change, its implementation status and support audit of the product to verify conformance to requirements. It includes the documentation, tracking system and defined approval levels necessary for authorizing and controlling changes. 5
# Configuration control is focused on the specification of both the deliverables and the processes while change control is focused on identifying, documenting and controlling changes to the project and the product baselines. #EEF PMIS Configuration management System Change Control System # Work Authorization System subsystem of overall project management system. Collection of formal documented procedures that defines how project work will be authorized to ensure work is done at RIGHT Time and in proper sequence #Project Management plan 1. Scope, Schedule, Cost, Quality, HR, Communication, Risk, Procurement Plans 2. Requirement Management Plan 3. Process Improvement Plan 4. Change management plan 5. Configuration Management Plan 6. Scope, Schedule, Cost Baseline = Performance measurement baselines #Kick Off Meeting This is the meeting for all parties of the project. Purpose of the meeting is to make certain everyone is familiar with the details of the project and people working on the project. #Detailed process of making Changes 1. Prevent the Root Cause of Changes 2. Identify Change 3. Look at the impact of the Change 4. Create a Change Request 5. Perform Integrated Change Control i)assess the Change (ii)look for options (iii)change is approved or rejected (iv)update the state of the change in Change Control System 6. Adjust the project management plan, project documents, baselines 7. Manage Stakeholders expectations by communicating the change to stakeholders affected by the change 8. Manage the project to the revised project management plan and project documents. 6