Project Management Program

Project Integration Management

Based on
PMBOK® Guide – IV Edition

PMI, PMP, CAPM, PgMP, PMI-RMP, PMI-SP and PMBOK are registered

marks of Project Management Institute, Inc.

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 Learning Objectives

After the completion of this chapter, the learner

will be able to:

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 various project selection methods
Explain the components of a project management plan

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 Project Integration Management: Topics
 Project Integration Management Overview
 Develop a Project Charter
 Project Selection Methods
 Define High Level Project Scope
 Tailor the Processes Required By The Project
 Develop Project Management Plan
 Creating the Project Deliverables
 Directing and Manage Project Execution
 Monitor and Control Project Work
 Close a Project Or Phase

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 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.

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 Project Integration Management

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 Project Integration Management

Initiating
Planning

Executing

Monitoring
and
Controlling
Closing

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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

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 Topics: Project Integration Management

Develop Project Charter WHY we should do it?

Develop Project Management Plan HOW we will do this?

Direct and Manage Project Doing it

Execution
Monitor and Control Project Work Is it going Well?

Perform Integrated Change Control Is this request Worth doing?

Close Project or Phase Have we Delivered everything?

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 Develop Project Charter: Define

Definition as per PMBOK® Guide

The process of developing a document that formally authorizes

a project or a phase and documenting initial requirements that
satisfy the stakeholder's needs and expectations.

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 Develop Project Charter

Project Charter

 The approved Project Charter formally initiates a project.

 The Project Manager should be preferably assigned during creation
of the Project Charter.
 Project Charter gives the project manager authority to spend and
commit corporate resources
 It provides high-level requirements for the project.

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 Develop Project Charter

Inputs

 Project statement of work

 Business case
 Contract
 Enterprise environmental factors
 Organization process assets
Outputs
 Project Charter

Tools and Techniques

 Expert Judgment

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 Project Selection Methods

Non Numeric Method

Sacred cow
Operating necessity
Murder Board
Competitive necessity

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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

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 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

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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. 4,00,000, Expected

cash inflows: Rs. 50,000 per quarter for first two years, Rs. 100,000 per
quarter thereafter.
• What is the payback period?
• Cash inflows = Rs. 50,000 x 4 (quarters in a year) = Rs. 2, 00,000 per
year for first two years. Hence, year 1 inflow = Rs. 2, 00,000, year 2 inflow
= Rs. 2, 00,000. Total Rs. 4, 00,000 in 2 years
• So payback is reached in 2 years.

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 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

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 Project Selection Methods

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 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

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 Project Selection Methods

 Net Present value (NPV) is the sum total of the Present Value
of Cash Inflows – Cash Outflows
TIME PERIOD INCOME/REVENUE PRESENT VALUE AT COSTS PRESENT VALUE AT
10% INT RATE 10% INT RATE

0 0 0 200 200
1 50 45 100 91
2 100 83 0 0
3 300 225 0 0
TOTAL 353 291

NPV of the Project is 353-291 = 62

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 Exercise 1: Which Project Will You Select

Method Project A Project B Which One?

Scoring Model 17 20 B

Payback Period 24 Months 25 months A

Benefit Cost 3.5 4.5 B

Ratio
Net Present £95,000 £80,000 A
Value (NPV)
IRR 9.5% 11.5% B

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 Develop Project Management Plan : Define

Definition as per PMBOK® Guide

Develop Project Management Plan is the process of

documenting the actions necessary to define, prepare,
integrate, and coordinate all subsidiary plans.

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 Develop Project Management Plan

Inputs
 Project charter
 Outputs from planning processes
 Enterprise environmental factors
 Organizational process assets
Outputs

 Project management plan

Tools and Techniques

 Expert Judgment

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 Components of Project Management Plan

 Requirements Management plan

 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

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 Direct & Manage Project Execution: Define

Definition as per PMBOK® Guide

Direct and manage Project Execution is the process of

performing the work defined in the project management
plan to achieve the project's objectives.

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 Direct & Manage Project Execution

Inputs
 Project management plan
 Approved change requests
 Enterprise environmental factors
 Organizational process assets
Outputs
 Deliverables
 Work performance information
 Change requests
 Project management plan updates
 Project document updates
Tools and Techniques
 Expert judgment
 Project management information system

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 Monitor & Control Project Work: Define

Definition as per PMBOK® Guide

Monitor and Control project Work is the process of tracking,

reviewing, and regulating the progress to meet the
performance objectives defined in the project management
plan.

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 Monitor & Control Project Work

Inputs
 Project management plan
 Performance reports
 Enterprise environmental factors
 Organizational process assets
Outputs
 Change requests
 Project management plan updates
 Project documented updates

Tools and Techniques

 Expert judgment

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 Perform Integrated Change Control: Define

Definition as per PMBOK® Guide

Perform Integrated Change Control is the process of reviewing

all change requests, approving changes and managing changes
to the deliverables, organizational assets, project documents,
and the project management plan.

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 Perform Integrated Change Control

Change Control Systems

 Every documented change request must be either approved or

rejected by an authorized person.
 Some changes require approval by the Change Control Board
(CCB).
 Any approved changes may required adjusting the scope, time,
and resource requirements

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 Perform Integrated Change Control

Configuration Management

 Configuration management system provides a standardized, effective,

and efficient way to centrally manage approved changes and
baselines within the project.

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 Perform Integrated Change Control

Inputs
 Project management plan
 Work performance information
 Change requests
 Enterprise environmental factors
 Organizational process assets
Outputs
 Change request status updates
 Project management plan updates
 Project document updates
Tools and Techniques
 Expert judgment
 Change control meetings

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 Close Project or Phase

Definition as per PMBOK® Guide

Close Project or Phase is the process of finalizing all activities

across all of the project Management Process Groups to
formally complete the project or phase.

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 Close Project or Phase

Inputs
 Project management plan
 Accepted deliverables
 Organizational process assets

Outputs
 Final product, service or results transition
 Organizational process assets update

Tools and Techniques

 Expert judgment

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 Exercise 2: Integration Management

Revising Key Terms

1. The project management plan is the collection of ______

Plans
2. Work Culture and company policies are called
Enterprise__________ Factors
3. ___________ is a document that gives the project manager
authority over the team

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 Answer to Exercise 2: Integration Management

Revising Key Terms

1. The project management plan is the collection of

Subsidiary Plans
2. Work Culture and company policies are called Enterprise
Environmental Factors
3. Project Charter is a document that gives the project
manager authority over the team

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 Project Integration Management

Assessment Examination

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 Project Integration Management

QUERIES
&
CLARIFICATIONS

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 Project Integration Management

Next Session

Project Scope Management

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