PMP Prepare – PMBOK 5th Edition

Project Integration Management

Difficulty Memorization Exam Importance

High Medium High
Learning Objectives
After the completion of this chapter, the learner
will be able to:
 Explain the various project selection methods
 List the various processes of Project Integration Management
 Describe the process of Develop Project Charter
 Describe the process of Develop project plan
 Describe the process of Direct And Manage Project Execution.
 Describe the process of Monitor and Control Project Work
 Describe the process of Perform Integrated Change Control
 Describe the process of Close Project Or Phase
 Explain the components of a project management plan
Project Integration Management: Define

Definition as per PMBOK® Guide

Project Integration Management includes the processes and

activities needed to identify, define, combine, unify, and
coordinate the various processes and project management
activities within the Project management process Groups.
What is Project Integration Management?
The process of ensuring that the various elements of a project are properly
consolidated, coordinated and integrated to ensure the successful completion of the
project.

Project integration management includes initiating the project (project charter),

project planning (project management plan), directing and managing project
execution, monitoring and controlling project work, performing integrated change
control, and closing the project or a phase of a project.

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Project Integration Management Overview
Select the project
Approve and commit to the project

Define the project plan and approach

Define the various components of the plan

Do the work as planned

Monitor the project work

Manage and control change requests

Accept the deliverables and close the project
Project Integration Management Processes
Integration Management
(Processes and their major output)

Develop project charter Monitor and control project work

=> Project Charter => Change Requests

Develop project management plan Perform integrated change control

=> Project management plan
=> Change Request status updates

Develop and manage project Execution Close Project or phase

=> Deliverables => Final product transition
 Project Integration Management Processes
Ten Knowledge Areas
Tools and
Techniques
Core Knowledge Area Project
Scope Time Cost Quality
Success
Management Management Management Management

Integration Management T

Stakeholder needs
and expectations Human
Communications Risk Procurement Stakeholder
Resources
Management Management Management Management
Management

Enterprise
Facilitating Knowledge Areas Success
Project Integration Management Processes

(OPA)

(EEF)
Project Integration Management Processes

•Initiating Planning Executing Monitoring Closing

and Controlling
•Develop •Develop •Direct and •Monitor and •Close Project
Project Charter Project Manage Control Project or Phase
Management Project Work
Plan Execution
•Perform
Integrated
Change Control

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 Develop Project Charter
• Developing the project charter
that formally authorizes a
project or a phase

• Authorizes the project manager

to use organizational resource
for the project

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Develop Project Charter
Inputs Tools and Techniques Outputs
1. Business Case 1. Expert Judgment 1. Project charter
2. Contract (When Applicable) 2. Facilitation Technique
3. Project Statement of Work (S.O.W.)
4. Enterprise Environmental Factors
5. Organizational Process Assets

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 Project Selection Methods
Expert judgment is one of the techniques used in project management to
accomplish various tasks, including project selection. It refers to making a
decision by relying on expert advice from one or more of the following sources:

• Senior management
• An appropriate unit within the organization
• The project stakeholders, including customers and sponsors
• Consultants
• Professional and technical associations
• Industry groups
• Subject matter experts from within or outside of the performing organization
• Project management office (PMO)

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Project Selection Methods
• Benefit Measurement Model (also called Comparative
approach )
• Payback Period
• Cost Benefit Analysis
• Scoring Models
• Net Present Value (NPV)
• Internal Rate of Return (IRR)

• Mathematical Models (also called Constrained Optimization)

• Use linear, dynamic, non-linear, multi-objective programming to solve
problem
 Project Selection Methods
• Mathematical Models

• Involves complex mathematical formulas to predict success rate

• Also called as Constrained Optimization
• Use linear, dynamic, non-linear, multi-objective programming to
solve problem
Constrained Optimization Methods
Constrained optimization methods are concerned with predicting the success of the
project. These methods are based on complex mathematical models that use
formulae and algorithms to predict the success.

These models use the following kinds of algorithms:

• Linear
• Nonlinear
• Dynamic
• Integer
• Multiple objective programming

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Project Selection Methods
 Payback period – the amount of time to recover your cost. It
compares the initial investment to the cash inflows expected over the
life of the product.

• For example, Initial investment on a project is Rs. 3,00,000, Expected cash inflows:
Rs. 30,000 per quarter for first two years, Rs. 60,000 per quarter thereafter.
• What is the payback period?
• Cash inflows = Rs. 30,000 x 4 (quarters in a year) = Rs. 1,20,000 per year for first two
years. Hence, year 1 inflow = Rs. 1,20,000, year 2 inflow = Rs. 1,20,000, year 3 1st Qtr
Inflow = Rs.60,000. Total Rs. 3, 00,000 in 2.3 years
• So payback is reached in 2 .3years.
 Project Selection Methods
 Benefit Cost Ratio (BCR) or profitability Index . This is the
ratio of project benefit and the project cost.

• BCR = Revenue / Cost

• Select the project with a higher BCR

 Project Selection Methods
Present Value (PV) and Net Present Value (NPV)

To understand these two concepts, understand that one dollar today can buy you more
than what one dollar can buy next year (because of inflation).

Net Present Value is the sum of the of all the cash flows of the project (including both
costs and benefits), each adjusted to today’s value (=Present Value)
according to estimated future inflation.

Alternative Projects can be compared using the NPV, even if they are not expected
to be completed during the same time frame and benefits are reaped over different
periods of time.

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Project Selection Methods
 Present Value (PV) is the expected future cash flows expressed in today’s
monetary value

PV = FV / (1+r) n

• For example, Calculate the Present Value of $ 200,000

received three years from now. The interest rate is 10 percent.

• PV = 200000 / (1+10/100)3 = $ 150, 262

 Net Present value (NPV) is the sum total of the Present Value of Cash
Inflows – Cash Outflows
 Project Selection Methods
 Internal Rate of Return (IRR): The rate of interest at
which the revenues and costs are equal.
• Select the project with a higher IRR.

 Return On Investment (ROI) – A return ratio that

compares the net benefits of a project/ product, verses its
total cost.
• ROI = Operating Income / Investments
 Which Project to select?
Method Project A Project B Which One?

Scoring Model 12 18 B

Payback Period 18 Months 22 Months A

Benefit Cost 2.3 3.3 B

Ratio
Net Present $124,000 $95,000 A
Value (NPV)
IRR 7.5% 13.75% B
 Project Charter
• Summary Milestone Schedule
• Summary Budget
• High-level Risks
• Key Stakeholders (Decision makers)
• Assigned PM and Authority Level
• Name and Responsibility of the Persons
Authorizing the Charter

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 Project Charter
• Project Business Case (Project justification w.r.t risk & returns)
– Reason for undertaking the project: Problem, Opportunity or Directive
– Problem or Opportunity Statement and Associated Benefits
– Estimated Project Costs
– Project Risks
• High-level Project Description
• Project Objectives and related Success Criteria or Metrics
– (with respect to Scope, Schedule, Cost, Quality)
• Triple Constraints Flexibility or Tradeoff Matrix
• Summary Product Requirements or Features (Product Scope)

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Develop Project Management Plan
• Process includes the action Management Plan
necessary to define, integrate and co-ordinate
all subsidiary plans into a project management
plan

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Develop Project Management Plan

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Components of Project Management Plan
• Project Lifecycle
• Tailoring decisions
• Project scope management plan
• Schedule management plan
• Cost management plan
• Quality management plan
Process improvement plan
•
Staffing management plan
•
Communication management plan
•
Risk management plan
•
Procurement management plan
•
Resource calendar
•
Schedule, Cost, Quality baseline
•
Risk register
•
Change and Configuration management plan

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Direct and Manage Project Execution
• process requires the Project Manager & Team
to perform multiple actions to execute the
project management plan to accomplish the
work defined in the project scope statement

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Direct and Manage Project Execution
What do we do?
• Perform activities to accomplish project requirements
• Create project deliverables
• Staff, train, and manage the team members
• Obtain, manage, and use resources (all types e.g. men, material, cost)
• Implement the planned standards and methods
• Establish and manage project communication channels
• Generate project data (status, forecasting)
• Issue change requests and adapt approved changes into the project’s scope, plans and Environment
• Manage risks and implement risk response activities
• Manage sellers and suppliers
• Collect and document lessons learned, and implemented approved process improvement activities.

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Direct and Manage Project Execution
What do we get?
• Deliverables

• Work performance information about completion status of deliverables, and what has been
accomplished is fed into the performance reporting process.

• Work performance info used as input to monitoring and Controlling Process Group.

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Direct and Manage Project Execution

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Direct and Manage Project Execution
Process Inputs
1. Project Management Plan
• We have discussed in detail.
2. Approved Change Requests
• As a part of the Perform Integrated Change Control process, a change control status update
shows that some changes are approved and some are not.
• Approved change requests are scheduled for implementation by the project team.
• Approved change requests are the documented, authorized changes to expand or reduce
scope. Approved change requests can also modify, project management plan, procedures,
costs/budget, or revise schedule.
• Approved change requests may also require implementation of Corrective Action, or
Preventive Action, or Defect Repair or Replacement of Defective Component.

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Direct and Manage Project Execution
Process Inputs
3. Enterprise environmental factors (EEF)
• Factors that can influence are:
• Organizational, company or customer culture and structure
• Factors that can influence are:
• Infrastructure (existing facilities and capital equipments)
• Personnel administration (employee performance review and training, hiring and firing
guidelines)
• Stakeholder risk tolerances
• Project Management Information System (PMIS) AN AUTOMATED TOOL:
– 1) A scheduling software,
– 2) A configuration management system,
– 3) An information collection and distribution system
– 4) Web interfaces to other online automated systems

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Direct and Manage Project Execution
Process inputs
4. Organizational process assets (OPA)
OPAs that can influence are:
• Standard guidelines and work instructions
• Communication requirements (defining allowed media, record retention, and security
• requirements)
• Issue and defect management procedures (defining issue and defect controls, issue and
defect identification and resolution, and action item tracking).
• Process measurement databases used to collect and make available measurement data on
processes and products
• Project files from previous projects
• Issue and defect databases (having historical issue and defect status, control info, resolution,
and action item results).

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Direct and Manage Project Execution
Tools and Techniques
EXPERT JUDGMENT
• Such judgment and expertise is applied to all technical and management details during this
process. This expertise is provided by the project manager and the project management
team.
• Additional expertise is available from many sources:
– other units within organization e.g functional heads
– consultants, stakeholders
– professional/technical associations

Project Management Information System

• Is also used here. Details already discussed.

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Direct and Manage Project Execution
OUTPUT
1. Deliverables
A deliverable is any unique and verifiable product, result or capability to perform a
service that must be produced to complete a process, phase, or project.
Are mostly tangible but intangible too:
Example : Tangible Deliverables
1) Software Code 2) Buildings 3) Structures 4) Roads
Intangible Deliverables
1) Training 2) Mentoring 3) Facilitation
2. Work Performance Data:
• Which To what extent the quality standards are being met
• What costs have been incurred or committed deliverables have been completed and which
have not --- IS COLLECTED HERE AND FED INTO THE PERFORMANCE REPORTING PROCESS FOR NECESSARY ANALYSIS
AND EVALUATION!

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Direct and Manage Project Execution
OUTPUT
3. Changes Requests
• When issues are found while work is being performed, change requests are issued.
• Change requests may to expand modify project policies or procedures, project cost or
budget, project schedule or project quality.
• Other change requests cover preventive or corrective actions to forestall negative impact
later in the project
Please note: requests for a change can be direct or indirect, externally or internally initiated, and can be optional or
legally/contractually mandated. They can include:
a) Corrective action (to bring expected future performance in line with the project management plan).
b) Preventive action (to reduce the probability of negative consequences associated with project risks).
c) Defect repair
d) Updates (changes to formally controlled documentation, plans to reflect modified or additional ideas or content.

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Direct and Manage Project Execution
OUTPUT
4. Project Management Plan Updates
Include updates to:
• Requirements management plan
• Schedule management plan
• Cost management plan
• Quality management plan
• Human resource plan
• Procurement management plan, and
• Project baselines

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Direct and Manage Project Execution
OUTPUT
5. Project Document Updates
Include updates to:
• Requirements documentation
• Project logs (issue, assumptions, etc.)
• Risk register, and
• Stakeholder register

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Monitor and Control Project Work
• monitoring project processes associated with
Initiating, Planning, Executing and Closing as
well as for Corrective or Preventive action for
managing variances”

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 Monitor and Control Project Work
Monitoring means:
1. Collecting, measuring, and distributing performance information.
2. Assessing measurements and trends to effect process improvements!
3. Is done throughout the project.
4. Continuous monitoring gives the project management team an insight into the
health of the project, and IDENTIFIES AREAS THAT MAY REQUIRE SPECIAL ATTENTION!

Controlling means:
1. Determining corrective or preventive actions or
2. Replanning and
3. Following up on action plans TO DETERMINE IF THE ACTIONS TAKEN RESOLVED THE
PERFORMANCE ISSUE!

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Monitor and Control Project Work

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 Monitor and Control Project Work
How do we do it?
1. Comparing actual project performance against the project management plan!
2. We assess performance to determine whether any corrective and preventive actions are indicated.
If so, then we recommend them to CCB for approval.
3. We analyze, track, monitor project risks to ensure the risks are identified, their status is reported, and
appropriate response plans are executed.
4. We maintain accurate and timely information base about project’s product and related documentation
through project completion.
5. We provide information to support STATUS REPORTING, PROGRESS MEASUREMENT, FORECASTING!
6. We provide forecasts to update current schedule and cost information.
7. We monitor implementation of approved changes.

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Monitor and Control Project Work

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 Monitor and Control Project Work
Process Inputs
1.Project Management Plan provides baselines for measuring performance.

2.Performance reports provide actual work performance information.

Reports prepared by the project team detailing activities, accomplishments, Milestones,
identified issues, and problems.

Performance reports provide key information.

Examples:
- Current status
- Significant accomplishments for the period
- Scheduled activities
- Forecasts, and
- Issues.

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 Monitor and Control Project Work
Process Inputs
3. Enterprise environmental factors that can influence this process:
• PMIS used for variance analysis and evaluation of impact on the project.
• Stakeholder risk tolerances
• Company work authorization systems
• Government or industry standards (regulatory agency regulations, product standards, quality standards, and workmanship
standards).
4. Organizational process assets that can influence this process:
• Issue and risk management procedures,
• Financial control procedures (time reporting, accounting codes, expenditure and disbursement reviews,
and standard contract provisions),
• Organization communication requirements,
• Risk control procedures (risk categories, probability and impact matrix), Issue and risk management
procedures
• Process measurement database (for benchmarking measurement data on processes)
• Lessons learned database.
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 Monitor and Control Project Work
Tools and Techniques
Expert judgment
• The project management team uses expert judgment to interpret the information provided by
the monitor and control process. The project manager, along with the team, determines the actions
required to ensure project performance matches with the expectations detailed in the project
management plan.

Please Remember!
• We use here all the performance measurement, forecasting and change control tools and techniques,
including Analytical Techniques, and PMIS.

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 Monitor and Control Project Work
1. Change requests
OUTPUT
Variance Measurements resulting from this process may lead to following change requests:
a) Corrective action to bring expected future performance in line with project management plan.
b) Preventive action to reduce the probability of negative consequences associated with project
Risks.
c) Defect repair Corrective action to either repair the defect in a project component or
completely replace it.
• Change requests are sent to ICC Process (CCB) for review and approval.
• Change requests are sent to ICC for review and approval. Without review and approval of ICC, no change request can be
implemented.
• Change requests, if approved, may:
– Expand, adjust project or product scope,
– Revise project management plan,
– Revise project documents, or
– Revise product deliverables

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 Monitor and Control Project Work
OUTPUT
2. Project management plan updates Revision of following may happen:
• Baselines (Scope baseline, schedule baseline, cost performance baseline).
• Subsidiary plans (such as schedule management plan, cost management plan, quality management plan).

3. Project document updates

Revision of following may happen:
• Forecasts
• Performance reports
• Issue log

4. Work Performance Report

Physical or Electronic representation of the work performance information compiled in project document
intended to generate awareness, decision, or actions.

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Perform Integrated Change Control
is Process of
• Reviewing all change requests, approving
changes and managing changes to the
deliverables, project management plan,
project documents and the organizational
process assets.

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Perform Integrated Change Control

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 Close Project or Phase
• performing the project closure section of the
project management plan, or in multiphase
projects, closes out the portion of the project
scope and associated activities of that phase

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Close Project or Phase

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 Close Project or Phase
• Update all project records to reflect the final project status.
• Capture & document lessons learned
• Archive project documents
• Complete final performance appraisal.
• Update team member skills database
• Send final invoicing advice to Finance.
• Transfer or transition the project’s product, service or results to the next phase (in the case of
phase closure) or to production or operations.
• Confirm that all the ‘project exit / completion criteria’ have been met.
• Send out formal communication to all stakeholders that the project’s product has been
accepted and the project is being formally closed.
• The finished and unfinished deliverables must be transferred to the appropriate stakeholders.

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 Quiz
1. What is the most important activity with respect to change for a Project Manager to focus attention on ?
A .Do the change
B. Track & Record the change
C. Prevent unnecessary change
D. Inform Project Sponsor of the change

• Answer1: The right answer is C. Prevent unnecessary changes. The changes are actually done by the
Project Team.

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 Quiz
2. In the middle of a project, you are informed that resources promised in the beginning of the project is no
longer available to the project. As a Project Manager what would you do?
A. Raise hand that you can no longer execute this project
B. Evaluate the impact of not having the promised resources
C. Re‐plan the project without promised resources
D. Identify other resources that can be provided to you in compensation of earlier promised resources

• Answer2: Now this is a tricky question. You might be doing all the mentioned option, but the right thing to
do in such cases is to first evaluate the impact. So the right option is B. Evaluate the impact of not having
the promised resources.
 Quiz
3. A customer is well known for making lot of changes in a On going project. You have been assigned as the
Project Manager for a new Project from this customer. What would you do in the beginning of the Project to
manage this customer?
A. Check who is the Customer’s manager and inform him about the customer past record
B. Involve the customer as early in the project as possible
C. Say No to the customer couple of times strictly
D. Send a copy of your company change control procedure.
• Answer3: This one is again a tricky question. In real project you might be doing all the options listed, but
the best way to handle such scenario is to involve the customer as early in the project as possible. The
right option is B. Involve the customer as early in the project as possible

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 Quiz
4. Who does the Project Integration?
A. Project Sponsor
B .Project Manager
C. Project Team
D. Stakeholder

• Answer4: This is pretty simple and straight forward. The right answer is B. The Project Manager. If you got
this question wrong, please do go through lesson once again.
 Quiz
5. As a project Manager you received a change that does not impact the project schedule. What would you do?
A. Go ahead and do the change
B. Evaluate Impact on the other components of Triple constraints
C. Get in touch with Change control board
D. Ask your boss’s permission

• Answer5: This question requires some knowledge of previous lessons as well. Whenever there is a change
and impact is known only one constraints. That’s not the complete analysis. You should look at the impact
on all the Triple constraints factors. So the right answer is B. Evaluate the other components of Triple
constraints

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 Quiz
6. You have been assigned as the Project Manager of a Project when the project is half way in execution. You
meet the customer and inform him that project is with in the baselines. But the customer informs you that he is
not happy with the performance of the project .What would be the first thing that you would do?
A. Meet the Project Team to understand what can be done
B. Meet the Project Sponsor and explain him customer concern
C. Inform customer that there is nothing wrong from project team side
D. Show customer the performance of similar other project

• Answer6: This one is a tough question. The answer depends upon the scenario. If you heard that customer
is unhappy from someone else, the best thing would be to be meet the customer .But in this case, the
customer is himself saying this to you that he is not happy. So the best option is to meet the Project Team
and discuss customer’s concern, before doing anything else. The right option is A. Meet the Project Team
to understand what can be done
 Summary
• Q&A
• Discussions

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