Project Management BUS 574 AH 2 1 COURSE
Project Management BUS 574 AH 2 1
COURSE PATH FORWARD Project Management Process Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Risk Management Project Procurement & Communication Management “Kitchen Project” 2
PROJECT INTEGRATION MANAGEMENT Objective 2. 1 Define Project Integration Management Knowledge Area Objective 2. 2 Describe the purpose and general content of the Project Charter Objective 2. 3 Describe the purpose and list the subsidiary plans contained in Project Management Plan Objective 2. 4 List the Economic Models for project selection and calculate the Net Present Value to determine if a project meets the selection criteria Objective 2. 5 List all the general activities a project manager performs within the Direct & Manage Project Work Process Objective 2. 6 Describe the main purpose of the Monitor & Control Project Work Process Objective 2. 7 Describe the activities contained within the Perform Integrated Change Control Process 3
PROJECT PROPOSAL TO EXECUTION Projects are initiated by an entity external to the project: • Sponsor/Customer • Portfolio Management • Program Management • Develop Project Charter • DRAFT Project Management Plan • Project Schedule • Project Budget WINNER!! 1 Submit Proposal 2 § Win Competition § Management approves new product Negotiate 3 May modify project to match negotiated agreements 4 5 Execute Project 6 Revise Project Charter Revise Project Management Plan & applicable subsidiary plans Revise Project Schedule Revise Project Budget 4
PROJECT MANAGEMENT KNOWLEDGE AREAS Project Management Process Groups Initiating Process Group Knowledge Areas Project Integration Management • Develop Project Charter Planning Process Group Executing Process Group • Direct and Manage Project Work Monitoring & Controlling Process Group • Monitor and Control Project Work Perform Integrated Change Control • Develop Project Management Pan Project Scope Management • • Plan Scope Management Collect Requirements Define Scope Create WBS • • Validate Scope Control Scope Project Time Management • • • Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule • Control Schedule Project Cost Management • • • Plan Cost Management Estimate Costs Determine Budget • Control Costs Project Quality Management • Plan Quality Management • Perform Quality Assurance • Control Quality Project Human Resource Management • Plan Human Resource Management • • • Acquire Project Team Develop Project Team Manage Project Team Project Communication Management • Plan Communication Management • Manage Communications • Control Communications • • • Control Risks • Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses • Plan Procurement Management • Plan Stakeholder Management Project Risk Management Project Procurement Management Project Stakeholder Management • Identify Stakeholders • • Conduct Procurements • Control Procurements • Manage Stakeholder Engagement • Control Stakeholder Engagement Closing Process Group • Close Project or Phase • Control Procurements 5
PROJECT MANAGEMENT KNOWLEDGE AREAS Project Management Process Groups Initiating Process Group Knowledge Areas Project Integration Management • Develop Project Charter Planning Process Group Executing Process Group • Direct and Manage Project Work Monitoring & Controlling Process Group • Monitor and Control Project Work Perform Integrated Change Control • Develop Project Management Pan Project Scope Management • • Plan Scope Management Collect Requirements Define Scope Create WBS • • Validate Scope Control Scope Project Time Management • • • Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule • Control Schedule Project Cost Management • • • Plan Cost Management Estimate Costs Determine Budget • Control Costs Project Quality Management • Plan Quality Management • Perform Quality Assurance • Control Quality Project Human Resource Management • Plan Human Resource Management • • • Acquire Project Team Develop Project Team Manage Project Team Project Communication Management • Plan Communication Management • Manage Communications • Control Communications • • • Control Risks • Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses • Plan Procurement Management • Plan Stakeholder Management Project Risk Management Project Procurement Management Project Stakeholder Management • Identify Stakeholders • • Conduct Procurements • Control Procurements • Manage Stakeholder Engagement • Control Stakeholder Engagement Closing Process Group • Close Project or Phase • Control Procurements 6
PROJECT MANAGEMENT KNOWLEDGE AREAS Process Group Knowledge Area Activities Purpose Processes and activities to identify, define, combine, and coordinate the various processes and project management activities within the Project Management Process Groups • • • Develop Project Charter Develop Project Management Plan Direct & Manage Project Work Monitor & Control Project Work Perform Integrated Change Control Close Project or Phase The processes required to ensure that the project includes all the work required, and ONLY the work required, to complete the project successfully • • • Plan Scope Management Collect Requirements Define Scope Create WBS Validate Scope Control Scope Project Time Management Processes required to manage the timely completion of the project • • Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations Develop Schedule Control Schedule Project Cost Management Processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget • • Plan Cost Management Estimate Costs Determine Budget Control Costs Project Quality Management Processes and activities of performing organization that determine quality policies, objectives, and responsibilities so project will satisfy needs for which it was undertaken • • • Plan Quality Management Perform Quality Assurance Control Quality Project Human Resource Management Processes that organize, manage, and lead the project team • • Plan Human Resource Management Acquire Project Team Develop Project Team Manage Project Team Project Communication Management Processes required to ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring, and the ultimate disposition of project information • • • Plan Communication Management Manage Communications Control Communications Project Integration Management Project Scope Management 7
PROJECT INTEGRATION MANAGEMENT Project Integration Management Overview A. Develop Project Charter 1. Inputs a. Project Statement of Work b. Business Case c. Agreements d. Enterprise Environmental Factors e. Organizational Process Assets 2. Tools & Techniques a. Expert Judgment b. Facilitation Techniques 3. Outputs a. Project Charter B. Develop Project Management Plan 1. Inputs a. Project Charter b. Outputs from other processes c. Enterprise Environmental Factors d. Organizational Process Assets 2. Tools & Techniques a. Expert Judgment b. Facilitation Techniques 3. Outputs a. Project Management Plan D. Monitor & Control Project Work 1. Inputs a. Project Management plan b. Schedule Forecasts c. Cost Forecasts d. Validated Changes e. Work Performance Information f. Enterprise Environmental Factors g. Organizational Process Assets 2. Tools & Techniques a. Expert Judgment b. Analytical Techniques c. Project Management Information System (PMIS) d. Meetings 3. Outputs a. Change Requests b. Work Performance Reports c. Project Management Plan Updates d. Project Documents Updates E. Perform Integrated Change Control 1. Inputs a. Project Management plan b. Schedule Forecasts c. Cost Forecasts d. Validated Changes e. Work Performance Information f. Enterprise Environmental Factors g. Organizational Process Assets 2. Tools & Techniques a. Expert Judgment b. Analytical Techniques c. Project Management Information System (PMIS) d. Meetings 3. Outputs a. Change Requests b. Work Performance Reports c. Project Management Plan Updates d. Project Documents Updates C. Direct & Manage Project Work 1. Inputs a. Project Management plan b. Approved Change Requests c. Enterprise Environmental Factors d. Organizational Process Assets 2. Tools & Techniques a. Expert Judgment b. Project Management Information System (PMIS) c. Meetings 3. Outputs a. Deliverables b. Work Performance Data c. Change Requests d. Project Management Plan Updates e. Project Documents Updates F. Close Project or Phase 1. Inputs a. Project Management plan b. Accepted Deliverables c. Organizational Process Assets 2. Tools & Techniques a. Expert Judgment b. Analytical Techniques c. Meetings 3. Outputs a. Final products, service, or result transition b. Work Performance Data c. Organizational Process Assets Updates Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 8
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT CHARTER Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 9
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT CHARTER Plan Scope Management Project Integration Management Collect Requirements Develop Project Management Plan Define Scope Project Initiator/ Sponsor Agreements Business Case Project Statement of work Organizational Process Assets Enterprise Environmental Factors Enterprise/ Organization Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute Develop Project Charter Plan Schedule Management Plan Cost Management Plan Risk Management Identify Stakeholder 10
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT CHARTER Business Case: Describes necessary information from business standpoint to determine whether or not the project is worth the required investment • Normally used for decision-making by managers and executives above project level. It answers the questions: • Why the Project was selected? • How it fits into the organization’s Strategic Goal? • How it will bring business value to the organization? • Business Case can be created as a result of: • Market Demand: Developing a new product as a result of economic conditions or competitors actions • Organizational Need: Project to streamline manufacturing for efficiency • Customer Request: Cost comparison of product life-time sustainment • Technological Advances: Project to improve test capabilities due to technological advances • Legal Requirements: Project to establish new guidelines to meet new federal regulations • Ecological Impacts: Project to lessen environmental impact • Social Needs: Project to provide services or facilities to meet community needs as a result of manufacturing impacts to that community Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 11
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT CHARTER Agreements: Used to define initial intentions for a project • Contracts: Mutual binding agreements that obligates seller to provide a specified product, service or result and obligates buyer to pay for it • Memorandums of Understanding (MOU): Document that expresses mutual agreement between two parties. • Service Level Agreements (SLA): Contract between service provider and customer that specifies, in measurable terms, what services the service provider will furnish • Letters of Agreements: Written list of goods, services, or space to be provided at agreedto prices, terms, and time. It becomes a binding contract when signed by associated parties • E-mails & Other Written Agreements Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 12
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT CHARTER Statement of Work (SOW): Narrative description of products, services, or results to be delivered by the project • SOW is created by the customer or sponsor, and describes: • Business Needs: Based on market demands, technological advance, legal requirements, government regulations, or environmental considerations • Product Scope Description: The characteristics of the product, service, or result that the project will undertake to create • Strategic Plan: Organization’s strategic vision, goals, and objectives and may contain a high-level mission statement • Internal Projects: SOW provided by Project Initiator or Sponsor. Based on business needs and product or service requirements • External Projects: SOW received from customer as part of bid document; Request for Proposal (RFP) and becomes part of the contract Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 13
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT CHARTER Enterprise Environmental Factors: Condition, not under the immediate control of the Team, that influence, constrain, or direct the project • • • Governmental Standards Industry Standards Regulations Organizational Culture & Structure Marketplace Conditions Organizational Process Assets: Plans, processes, policies, procedures and knowledge bases that are specific to, and used by the performing organization • Organizational standard processes, policies, and process definitions • Templates (plans, reporting, finance, etc. ) • Historical information & Lessons Learned Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 14
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT CHARTER Economic Models for Project Selection • Present Value: The value today of future cash flow • Where: • PV = Present Value • FV = Future Value • r = Interest Rate • n = Number of time periods • Net Present Value: The present value of the total benefits (income or revenue) minus the costs over many time periods Time Period Income/ Revenue* Present Value of Income at 10% Interest Rate* Costs* Present Value of Cost at 10% Interest Rate* 0 0 0 100 1 50 45 140 127 2 100 83 50 41 3 300 225 10 8 TOTAL * (000) Source: Rita Mulchany’s PMP Exam Prep, Eight Edition, Rita Mulchany, PMP 353 NPV = 353 – 276 = 78 276 15
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT CHARTER Economic Models for Project Selection (Cont’d) • Internal Rate of Return (IRR): Rate at which project inflows (income) and project outflows (cost) are equal. Complex and requires computer • Example: Two projects are being compared for selection. It has been determined that Project A has an IRR of 5% and Project B has an IRR of 14%. Which project is the better selection? • Payback Period: Length of time it takes for organization to recover its investment in project before it starts accumulating profit • Example: Two projects are being compared for selection. It has been determined that Project A has a payback period of 5 months, and Project B has a payback period of 24 months. Which project is the better selection? • Cost-Benefit Analysis: Expected cost of project to potential benefits (Revenue) it could bring organization • Benefit cost ratio greater than 1: Revenue greater than Costs • Benefit cost ratio less than 1: Cost greater then Revenue • Benefit cost ration of 1: Revenue equal Costs Source: Rita Mulchany’s PMP Exam Prep, Eight Edition, Rita Mulchany, PMP 16
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT CHARTER Economic Models for Project Selection (Cont’d) • Economic Value Added (EVA): An estimate of a firm's economic profit. EVA is profit earned by firm less cost of financing firm's capital. • The value created from returns generated by firm's economic capital employed is greater than the cost of that capital. • Opportunity Costs: Opportunity given up by selecting one project over another • Example: Two projects are being compared for selection. Project A has an NPV of $53, 000 and Project B has an NPV of $36, 000. What is the Opportunity Cost for selecting Project B? • Sunk Costs: Expended Costs. • Example: An organization is considering expanding a new facility. The company spent $300, 000 to complete the facility. The contractor indicated it would cost an additional $150, 000 to expand the facility. Should the organization consider the $300, 000 in making the decision? Source: Rita Mulchany’s PMP Exam Prep, Eight Edition, Rita Mulchany, PMP 17
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT CHARTER Develop Project Charter • Key Benefit: • Well defined project start and project boundaries • Creation of a formal record of the project • Direct way for Senior Management to formally accept & commit to the project • Projects are initiated by an external entity to the project such as a: • Sponsor • Program Management Office (PMO) • Staff Person • A portfolio governing body chairperson, or authorized representative • Project Charter establishes a partnership between performing organization and requesting organization • Project Manager participates in development of Project Charter to obtain foundational understanding of project requirements Source: Rita Mulchany’s PMP Exam Prep, Eight Edition, Rita Mulchany, PMP 18
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT CHARTER Develop Project Charter • Project Charter contains: • Project Purpose & Justification • Measurable Project Objectives • High-level Requirements • Assumptions & Constraints • High-level Project Description & Boundaries • High-Level Risks • Summary Milestone Schedule • Summary Budget • Stakeholder List • Project Approval Requirements • Assigned Project Manager responsibility & authority level • Name & Authority of sponsor or other person authorizing the project Source: Rita Mulchany’s PMP Exam Prep, Eight Edition, Rita Mulchany, PMP 19
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT CHARTER Project Charter Description Project Title & Description What is the Project? Project Manager Assigned & Authority Level Who is given authority to lead the project, and can he/she determine, manage and approve changes to budget, schedule, staffing, etc. ? Business Case Why is the Project being done? On what financial or other basis can the organization justify doing the project? Describe the project’s purpose and justification. Resources Pre-Assigned How many or which resources will be provided? Stakeholders Who will affect or be affected by the Project (influence the project), as known to date? Stakeholder Requirements As Known Requirements related to both Project and Product Scope Product Description/Deliverables What specific product deliverables are wanted, and what will be the end result of the Project? Assumptions What is believed to be true or reliable in the situation? What do we believe to be the case but do not have the proof or data for? Constraints What factors may limit our ability to deliver? What boundaries or parameters will the Project have to function within Measurable Project Objectives How does the Project tie into the organization’s Strategic Goal? The Objectives need to be measurable and will depend on the defined priority of the Project constraints Project Approval Requirements What items need to be approved for the Project, and who will have sign-off? What designates success High-Level Project Risks Potential threats & opportunities for the Project 5 th Source: PMBOK ® Guide, Edition, Chapter 4 Program Management Institute 20
PROJECT INTEGRATION MANAGEMENT STAKEHOLDERS Characteristics • • Individuals and organizations actively involved in project Interests may be effected as a result of project execution Exert influence over the project’s objectives and outcomes Responsibility and authority range from occasional contributions to full project sponsorship. STAKEHOLDERS Other Stakeholders Operations Management Sponsor Senior Management Program Manager Project Team Project Management Office Source: PMBOK ® Guide, 5 th Edition, Program Management Institute Functional Management Project Manager THE PROJECT Project Team Members Business Partners & Suppliers Customers/U sers 21
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT MANAGEMENT PLAN Develop Project Charter: Develop Project Management Plan: Formal authorization for existence of project Authorizes to applyall organizational resources Define, Project prepare, Manager and coordinate subsidiary plans and integrate them into a comprehensive Project Management Plan Direct and Manage Project Work: Lead and perform work defined in Project Management Plan Implement approved changes to achieve project’s objectives Monitor & Control Project Work: Track, Review and Report project progress against performance objectives defined in Project Management Plan Perform Integrated Change Control: Review all change requests Approve changes and manage changes to deliverables and project documents Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 22
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT MANAGEMENT PLAN Plan Scope Management Control Scope Project Integration Management Enterprise/ Organization Project Charter Organizational Process Assets Enterprise Environmental Factors Develop Project Management Plan Outputs from other processes Develop Project Charter Plan Schedule Management Control Schedule Plan Cost Management Control Costs Project Management Plan Quality Management Plan Scope Management Communication Management Plan Cost Management Plan Human Resource Plan Procurement Management Plan Process Improvement Plan Quality Management Plan Requirements Management Plan Risk Management Plan Schedule Management Plan Scope Management Plan Stakeholder Management Plan Cost Baseline Schedule Baseline Scope Baseline Project Management Plan Updates Direct & Manage Project Work Monitor & Control Project Work Perform Integrated Change Control Plan Human Resource Management Plan Communication Management Control Communications Plan Risk Management Control Risks Plan Procurement Management Control Procurements Close Project or Phase Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute Plan Stakeholder Management Control Stakeholder Management 23
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT MANAGEMENT PLAN Management Plans Purpose of Plan Scope Management Plan Defines how scope is defined, developed, monitored, controlled, and verified Requirements Management Plan Describes how requirements are analyzed, documented, and managed Schedule Management Plan Establishes criteria and activities for developing, monitoring, and controlling schedule Cost Management Plan Describes how project costs are planned, structured, and controlled Quality Management Plan Describes how organization’s quality policies is implemented Process Improvement Plan Details steps for analyzing project management and product development processes Human Resource Plan Provides guidance on how project human resources should be defined, staffed, managed, and eventually released Communication Management Plan Describes how project communications are planned, structured, monitored, and controlled Risk Management Plan Describes how risk management activities are structured and performed Procurement Management Plan Describes how project team will acquire goods and services from outside performing organization (Could also be Subcontract Management Plan) Stakeholder Management Plan Identifies management strategies required to effectively engage stakeholders Cost Baseline Approved version of time-phase project budget, excluding management reserves, that can be changed only through formal change control procedures and used as a basis for comparison to actual results Schedule Baseline The approved version of a schedule model that can be changed only through formal change control procedures and is used as a basis for comparison to actual results Scope Baseline The approved version of a scope statement, Work Breakdown Structure (WBS), and its associated WBS dictionary, that can be changed only through formal change control procedures and used as basis for comparison Project Management Plan Updates Changes to the project documents may necessitate updates to the Project Management Plan Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 24
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT MANAGEMENT PLAN Inputs Organizational Process Assets Enterprise Environmental Factors Project Charter Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute Description • Organizational standard processes, policies, and process definitions • Templates (plans, reporting, finance, etc. ) • Historical information & Lessons Learned • • Governmental Standards Industry Standards Body of Knowledge and/or focus areas Project Management Information System (PMIS) • Automated tool for scheduling, information collection, configuration management, etc. Project Manager uses Project Charter as starting point for initial planning throughout the Initiating Process Group 25
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT MANAGEMENT PLAN Project Management Plan • Project Management Plan designed to be as complete as possible when Project Execution begins • When developing Project Management Plan: • Tailor process to meet project needs • Develop technical & management details • Determine resources and skill levels needed to perform project work • Define level of Configuration Management to apply to project • Determine which Project Documents will be subject to formal Change Control Process • Prioritize work on project to ensure project resources are allocated to appropriate work at appropriate time • Project Managers need to instill discipline to prevent unnecessary changes, and plan project that minimizes need for changes Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 26
PROJECT INTEGRATION MANAGEMENT DEVELOP PROJECT MANAGEMENT PLAN Subsidiary Plans Purpose of Plan Scope Management Plan Defines how scope is defined, developed, monitored, controlled, and verified Requirements Management Plan Describes how requirements are analyzed, documented, and managed Schedule Management Plan Establishes criteria and activities for developing, monitoring, and controlling schedule Cost Management Plan Describes how project costs are planned, structured, and controlled Quality Management Plan Describes how organization’s quality policies is implemented Process Improvement Plan Details steps for analyzing project management and product development processes Human Resource Management Plan Provides guidance on how project human resources should be defined, staffed, managed, and eventually released Communication Management Plan Describes how project communications are planned, structured, monitored, and controlled Risk Management Plan Describes how risk management activities are structured and performed Procurement Management Plan Describes how project team will acquire goods and services from outside performing organization (Could also be Subcontract Management Plan) Stakeholder Management Plan Identifies management strategies required to effectively engage stakeholders Manufacturing Plan Describes how deliverable are produced, tested, and delivered Configuration Management Plan Documents how configuration management is performed on project BASELINES PURPOSE Scope Baseline Approved version of Scope Statement, Work Breakdown Structure (WBS), and its associated WBS Dictionary Schedule Baseline Cost Baseline Approved version of schedule model that can ONLY be changed through formal change control procedures, and used to compare to actual results Approved version of time-phase budget, excluding Management Reserves, that can ONLY be changed through formal change control procedures, and used to compare actual results ADDITIONAL INFORMATION Description of how work will be executed to accomplish project objectives Change Management Plan Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute Requirements and techniques for communication with, and among stakeholders Description of how the integrity of the project baseline will be maintained 27
PROJECT INTEGRATION MANAGEMENT DIRECT AND MANAGE PROJECT WORK Develop Project Charter: Develop Project Management Plan: Formal authorization for existence of project Authorizes to applyall organizational resources Define, Project prepare, Manager and coordinate subsidiary plans and integrate them into a comprehensive Project Management Plan Direct and Manage Project Work: Lead and perform work defined in Project Management Plan Implement approved changes to achieve project’s objectives Monitor & Control Project Work: Track, Review and Report project progress against performance objectives defined in Project Management Plan Perform Integrated Change Control: Review all change requests Approve changes and manage changes to deliverables and project documents Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 28
PROJECT INTEGRATION MANAGEMENT DIRECT & MANAGE PROJECT WORK Project Integration Management Perform Integrated Change Control Develop Project Management Plan Updates Project Management Plan Enterprise/ Organization Approved Change Requests Direct & Manage Project Work Control Quality Change Requests Project Document Updates Deliverables Control Communications Work Performance Data Project Documents Organizational Process Assets Enterprise Environmental Factors Control Risks Control Procurements Validate Scope Control Scope Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute Control Schedule Control Costs Control Stakeholder Engagement
PROJECT INTEGRATION MANAGEMENT DIRECT & MANAGE PROJECT WORK Inputs Description Project Management Plan • Contains the Subsidiary Plans concerning all aspects of the project Enterprise Environmental Factors • Organizational, Company, or Customer culture, and structure of the performing of sponsor organization • Infrastructure (e. g. , facilities, capital equipment • Personnel Administration • Stakeholder Risk Tolerances (i. e. , allowable cost overrun percentage) Organizational Process Assets • Standardized Guidelines & Work Instructions • Communication Requirements defining: • Allowed Communication Media • Record Retention • Security Requirements • Issue and Defect Management Procedures defining: • Issue and Defect Control • Issue and Defect Identification & Resolution • Action Item Tracking • Process Management Database to collect and make available measurement data on processes and products • Issue and Defect Management Database containing: • Historical issues and defect status • Control Information • Issue & Defect Resolution • Action Item Results Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 30
PROJECT INTEGRATION MANAGEMENT DIRECT & MANAGE PROJECT WORK Approved Change Requests • Requires review of impact of all project changes and implementation of approved changes • Corrective Action: Intentional activity that realigns performance of project work with Project Management Plan • Preventive Action: Intentional activity that ensures future performance of project work is aligned with Project Management Plan • Defect Repair: Intentional activity to modify a nonconforming product or product component • An approved Change Request may result in an update to other parts of Project Management Plan and Project Documents Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 31
PROJECT INTEGRATION MANAGEMENT DIRECT & MANAGE PROJECT WORK Direct & Manage Project Work • Key Benefit: Provides overall management of project work activities, including: • Performing activities to accomplish Project Objectives • Create Project Deliverables to meet the Planned Project Work • Obtain, manage & use resources including personnel, material, tools, equipment and facilities • Establish & manage both internal and external Communication Channels • Provide training and manage team members assigned to project • Issue Change Requests and implement Approved Change Requests • 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 Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 32
PROJECT INTEGRATION MANAGEMENT DIRECT & MANAGE PROJECT WORK Outputs Description Deliverable Unique or verifiable product, result, or capability to perform a service required to be produced Work Performance Data Raw observations and measurements identified during activities being performed, includes: • Work Completed Actual Costs • Actual Duration Key Performance Indicators • Technical Performance Measures Number of Change Request • Start & Finish dates of scheduled activities Change Requests • Formal proposal to modify any document, deliverable or baseline (scope, schedule & cost) • When issues are found while project work is being performed, Change Requests are submitted • Change Requests can be externally or internally initiated, and can be optional or contractually mandated. May include: • Corrective Action • Preventive Action • Defect Repair Project Management Plan Updates Subsidiary Plans may be updated due to project issues, as well as the Scope, Schedule and Cost Baselines Project Document Updates • Requirements Documentation • Project Logs (Issues Log, Assumptions, etc. ) • Risk Register as changes to risks (retirements & additions, and status change) occur • Stakeholder Register as change to Stakeholders occur Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 33
PROJECT INTEGRATION MANAGEMENT MONITOR & CONTROL PROJECT WORK Develop Project Charter: Develop Project Management Plan: Formal authorization for existence of project Authorizes to applyall organizational resources Define, Project prepare, Manager and coordinate subsidiary plans and integrate them into a comprehensive Project Management Plan Direct and Manage Project Work: Lead and perform work defined in Project Management Plan Implement approved changes to achieve project’s objectives Monitor & Control Project Work: Track, Review and Report project progress against performance objectives defined in Project Management Plan Perform Integrated Change Control: Review all change requests Approve changes and manage changes to deliverables and project documents Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 34
PROJECT INTEGRATION MANAGEMENT MONITOR & CONTROL PROJECT WORK Enterprise/ Organization Project Integration Management Organizational Process Assets Enterprise Environmental Factors Validate Scope Control Communications Work Performance Information Control Risks Control Stakeholder Engagement Control Costs Control Quality Project Management Plan Updates Monitor & Control Project Work Project Documents Updates Work Performance Reports Change Requests Work Performance Reports Control Procurements Control Schedule Develop Project Management Plan Schedule Forecast Cost Forecast Project Documents Perform Integrated Change Control Manage Project Team Manage Communications Control Risks Validated Changes 35 Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute Control Procurements
PROJECT INTEGRATION MANAGEMENT MONITOR AND CONTROL PROJECT WORK Inputs Description Enterprise Environmental Factors • Governmental or Industry Standards (e. g. , Regulatory Agency Standards, Codes & Conduct, Product Standards, Quality Standards, etc. ) • Organization Work Authorization System • Stakeholder Risk Tolerances • PMIS Organizational Process Assets • Organizational Communication Requirements • Financial Control Procedures (e. g. , time reporting, required expenditure and disbursement reviews) • Issue & Defect Management Procedures • Change Control Procedures, including those for Scope, Schedule, Cost, and Quality Variances • Risk Control Procedures including Risk Categories, Probability Definition and Impact, and Probability and Impact Matrix • Process Measurement Database to make available measurement data on processes and products • Lessons Learned Database Schedule Forecasts • Derived from progress against the Schedule Baseline and computed time Estimate to Complete (ETC) • Typically expressed in terms of Schedule Variance (SV) and Schedule Performance Index (SPI) • Forecast may be used to determine if the project is still within defined tolerance ranges and identify any necessary Change Requests Cost Forecasts • Derived from progress against the Cost Baseline and computed ETC • Typically expressed in terms of Cost Variance (CV) and Cost Performance Index (CPI) • An Estimate At Completion (EAC) can be compared to the Budget At Completion (BAC) to see if the project is still within tolerance ranges Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 36
PROJECT INTEGRATION MANAGEMENT MONITOR AND CONTROL PROJECT WORK Inputs Description Validated Changes • Approved Changes that result from the Change Control Process require validation to ensure that the change was appropriately implemented and executed Work Performance Information • Performance data collected from various controlling processes, analyzed in context, and integrated based on relationships of the various Performance Data • Work Performance Data has been converted into Work Performance Information • Work Performance Information is correlated and contextualized, and provides a sound foundation for project decisions • Examples of Work Performance Information: • Status of Deliverables • Implementation status for Change Requests • Forecasted Estimates to Complete (ETC) Project Management Plan Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute • The Subsidiary Plans within the Project Management Plan form the basis for controlling the Project 37
PROJECT INTEGRATION MANAGEMENT MONITOR & CONTROL PROJECT WORK Monitoring & Controlling project work includes: • Monitoring: includes collecting, measuring, and distributing performance information, and assessing measurements and trends to effect process improvements • Controlling: includes determining corrective & preventive action or replanning and following up on action plans to determine whether the actions taken resolved performance issue • Monitoring and Controlling Project Work concerned with: • Analyzing & Tracking Risks • Performing Quality Control • Comparing actual performance against the Project Management Plan • Reviewing changes, corrective actions, and preventive actions and recommending whether the actions should be implemented and executed • Creating Work Performance Reports • Updating Project Management Plan & Project Document Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 38
PROJECT INTEGRATION MANAGEMENT MONITOR & CONTROL PROJECT WORK Outputs Description Change Requests • Comparing planned results to actual results • Change Requests may be issued to expand, adjust, or reduce project scope, product scope, or quality requirements and schedule or cost baselines • Change Requests may require collection & documentation of new requirements • Change Requests may include Corrective Action, Preventive Action, and Defect Repair Work Performance Reports • The physical and electronic representation of Work Performance Information compiled in project documents intended to generate decisions, actions, and awareness Project Management Plan Updates • Various subsidiary plans may require updates due to changes identified during Monitor & Control Project Work process • Scope, Schedule and Cost Baselines will need updates due to identified changes Project Documents Updates • Schedule and Cost Forecasts • Work Performance Reports • Issue Log Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 39
PROJECT INTEGRATION MANAGEMENT PERFORM INTEGRATED CHANGE CONTROL Develop Project Charter: Develop Project Management Plan: Formal authorization for existence of project Authorizes to applyall organizational resources Define, Project prepare, Manager and coordinate subsidiary plans and integrate them into a comprehensive Project Management Plan Direct and Manage Project Work: Lead and perform work defined in Project Management Plan Implement approved changes to achieve project’s objectives Monitor & Control Project Work: Track, Review and Report project progress against performance objectives defined in Project Management Plan Perform Integrated Change Control: Review all change requests Approve changes and manage changes to deliverables and project documents Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 40
PROJECT INTEGRATION MANAGEMENT PERFORM INTEGRATED CHANGE CONTROL Enterprise/ Organization Validate Scope Control Scope Project Integration Management Organizational Process Assets Enterprise Environmental Factors Control Schedule Monitor & Control Project Work Change Request Work Performance Reports Control Costs Perform Quality Assurance Control Quality Change Requests Perform Integrated Change Control Develop Project Management Plan Updates Project Documents Manage Project Team Control Communications Control Risks Plan Procurement Management Change Requests Approved Change Requests Control Quality Direct & Manage Project Work Manage Stakeholder Engagement Conduct Procurements Control Procurements Manage Stakeholder Engagement Control Stakeholder Engagement Change Log Control Procurements Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 41
PROJECT INTEGRATION MANAGEMENT PERFORM INTEGRATED CHANGE CONTROL Inputs Description Enterprise Environmental Factors • Project Management Information System (PMIS) could include: • Scheduling Software Tool (Microsoft Project, Front Desk, Fleetmatics WORK, etc. ) • Configuration Management System • Information Collection & Distribution System • WEB Interfaces Organizational Process Assets • • • Change Control Procedures for approving and issuing change authorization Process Management Database Project Documents Configuration Management policies, procedures, and guidelines Work Performance Reports • • Resource Availability Schedule & Cost Data Earned Value Management Reports Burn-up or Burn-down Charts Project Management Plan • Elements of the Project Management Plan that may be used are: • Scope Management Plan – Procedures for Scope Changes • Scope Baseline – Provides Product Definition • Change Management Plan – Direction for managing the Change Control process, and documents the formal Change Control Board (CCB) Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 42
PROJECT INTEGRATION MANAGEMENT PERFORM INTEGRATED CHANGE CONTROL Change Requests • Perform Integrated Change Control process includes Change Control Board (CCB). CCB responsible for: • Reviewing, evaluating, approving, delaying, or rejecting changes to project • Recording and communicating such decisions • Customer or sponsor approval may be required after CCB approval - unless they are part of CCB • Configuration Control focuses on specifications of deliverables and processes • Configuration Identification • Configuration Status Accounting • Configuration Verification & Audit Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 43
PROJECT INTEGRATION MANAGEMENT PEFORM INTEGRATED CHANGE CONTROL Perform Integrated Change Control • Key Benefit: Allows for documented changes within Project to be considered in an integrated fashion • Reduces risks that arise from changes made without consideration to overall Project Objectives or plans • Integrated Change Control is conducted from project inception through completion, and is ultimate responsibility of Project Manager • Continuously managing change, either by rejecting changes, or by approving changes, assures that only approved changes are incorporated in the revised Baselines • All Change Requests should be approved usually by the Sponsor or Project Manager Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute 44
PROJECT INTEGRATION MANAGEMENT PERFORM INTEGRATED CHANGE CONTROL Outputs Approved Change Requests Description • Change Requests processed according to change control system by Project Manager, CCB, or by assigned Team Member. • Approve Change Requests will be implemented through the Direct and Manage Project Work process • Used to document changes during the project Change Log • The changes and their impacts to time, cost and risk are also documented and communicated to appropriate stakeholders • Rejected Change Requests are also captured in the Change Log Project Management Plan Updates Project Documents Updates Source: PMBOK ® Guide, 5 th Edition, Chapter 4 Program Management Institute • Various subsidiary plans require updates due to changes identified during Monitor & Control Project Work process • Scope, Schedule and Cost Baselines will need updates due to identified changes • All project documents subject to the project’s formal change control process 45
PROJECT INTEGRATION MANAGEMENT KNOWLEDGE AREAS Project Management Process Groups Knowledge Areas Initiating Process Group Project Integration Management Develop Project Charter Planning Process Group Executing Process Group Develop Project Management Pan Direct and Manage Project Work Monitoring & Controlling Process Group • • Monitor and Control Project Work Perform Integrated Change Control Project Scope Management • • Plan Scope Management Collect Requirements Define Scope Create WBS • • Validate Scope Control Scope Project Time Management • • • Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule • Control Schedule Project Cost Management • • • Plan Cost Management Estimate Costs Determine Budget • Control Costs Project Quality Management • Plan Quality Management • Perform Quality Assurance • Control Quality Project Human Resource Management • Plan Human Resource Management • • • Acquire Project Team Develop Project Team Manage Project Team Project Communication Management • Plan Communication Management • Manage Communications • Control Communications • • • Control Risks • Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses • Plan Procurement Management • Plan Stakeholder Management Project Risk Management Project Procurement Management Project Stakeholder Management • Identify Stakeholders Closing Process Group • Conduct Procurements • Control Procurements • Manage Stakeholder Engagement • Control Stakeholder Engagement Close Project or Phase • Control Procurements 46
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