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CHAPTER 4PROJECT INTEGRATION MANAGEMENT Ahmad H. Maharma PMP®

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PM Process Initiating Process Planning Process Group Executing Process Monitoring & Controlling ClosingGroups / Group Group Process Group ProcessKnowledge GroupArea ProcessesProject Develop Project Develop Project Management Direct and Manage Project Monitor and Control Project Close ProjectManagement Charter Plan Execution WorkIntegration Integrated Change ControlProject ScopeManagement Define Scope CHAPTER 4 Collect requirements Verify Scope Control Scope Create WBSProject Time Define Activity Schedule ControlManagement Sequence Activity Estimating Resource Estimating Duration Develop Schedule PROJECT INTEGRATION MANAGEMENTProject CostManagementProject Quality Estimating Cost Budgeting Cost Quality Planning Perform Quality Assurance Control Cost Perform Quality ControlManagementProject HR Human Resources Planning Acquire Project TeamManagement Develop Project Team Manage Project TeamProject Identify Stakeholders Plan Communications Distribute Information Performance ReportingCommunications Manage stakeholdersManagement Ahmad H. Maharma expectationsProject RiskManagement Plan Risk Management Risk Identification PMP® Risk Monitoring and Control Qualitative / Quantitative Risk Analysis y Risk Response PlanningProject Plan procurement Conduct procurement Administer Contract CloseProcurement procurementManagement

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Project Integration Management Monitoring & Controlling Processes Planning Processes Enter phase/ Initiating Closing Exit phase/ Start project Processes Processes End project Executing Processes ProcessKnowledge Area Initiating Planning Executing Monitoring & Contol Closing • Develop • Develop Project • Direct and • Monitor and Control • Close Project Management Manage Project Project Work Project Scope Charter Ch t Plan Pl Execution E ti •P f Perform Integrated I t t d Change Control

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Project Integration Management Summary 4

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Project Integration ManagementProject integration Management includes the processes and activities needed toidentify, define, combine, unify, and coordinate the various processes and projectmanagement activities within the Project Management Process Groups Groups.in the project management context, integration includes characteristics ofunification, consolidation artic lation and integrati e actions that are cr cial to nification consolidation, articulation, integrative crucialproject completion, successfully managing stakeholder expectations, and meetingrequirements.Project integration Management entails making choices about resource allocation,making trade‐offs among competing objectives and alternatives, and managing theinterdependencies among the project management Knowledge Areas Areas.

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Project Integration Management ProcessesThe Project integration Management processes are as follows:4.1 Develop Project Charter‐The process of developing a document that formally authorizes a project or a phase and documenting initial requirements that satisfy the stakeholders stakeholder s needs and expectations.4.2 Develop Project Management Plan ‐The process of documenting the actions necessary to define, prepare, integrate, integrate and coordinate all subsidiary plans plans.4.3 Direct and Manage Project Execution‐The process of performing the work defined in the project management plan to achieve the projects objectives.

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Project Integration Management Processes4.4 Monitor and Control Project Work‐The process of tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project management plan.4.5 Perform Integrated Change Control‐The process of reviewing all change requests, approving changes, and managing changes to the deliverables organizational process deliverables, assets, project documents, and the project management plan.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.

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Project Integration ManagementThe integrative nature of projects and project management can beunderstood by thinking of other types of activities performed whilecompleting a project.Examples of some activities performed b the project management team l f f d by hare:• Analyze and understand the scope. This includes the project and product requirements, criteria, assumptions, constraints, and other influences related to a project, and how each will be managed or addressed within the project. p j• Understand how to take the identified information and then brainstorm it into a project management plan using a structured approach.• Perform activities to produce project deliverables deliverables.• Measure and monitor all aspects of the projects progress and take appropriate action to meet project objectives.

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Project Selection MethodsSystem Description Analyze the predicted value of the completed projects in different ways. y May present the value in terms of:Benefit Measurement Benefit Cost Ratio (BCR)Models (Economic Return on Investment (ROI)Models) Present Value (PV) & Net Present Value (NPV) P V l (PV) & N P V l (NPV) Internal Rate of Return (IRR) Opportunity Cost Uses different types of mathematical formulas and algorithms to Uses different types of mathematical formulas and algorithms to determine the optimal course of action. Linear programmingMathematical Models (Constrained Nonlinear programmingOptimization)O ti i ti ) Dynamic programming Dynamic programming Integer Programming Multi‐objective programming

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Benefit Measurement Models (Economic Models)Accounting Concept Description Keys for Project Selection Notes Value today of future cash Present value (PV) The higher the PV, the better. PV= FV/(1+r)n flows. Present value of cash inflow A negative NPV is Accounts for different project Net present value (NPV) (benefits) minus present unfavorable. The higher the durations. value of cash outflow (costs). NPV, the better. The interest rate that makes The higher the IRR, the g , The return that a company would p yInternal rate of return (IRR) thI t l t f t (IRR) the net present value of all t t l f ll better. earn if it invests in the project. cash flow equal zero. The number of time periods The lower the payback Payback period needed to hit the break‐even period, the better. point. A ratio identifying the A BCR less than 1 is relationship between the Benefit cost ratio (BCR) unfavorable. The higher the cost and benefits of a BCR, the better. proposed project. The difference in return between a chosen b hOpportunity cost investment and one that is passed up. A cost that has been incurred This should not be a factor in Sunk costs and cannot be reversed. project decisions.

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Present Value (PV) and (NPV)• Present Value (PV) Present Value of future Cash flows. Higher the better. Present Value (PV) – Present Value of future Cash flows. Higher the better.• NOTE: present value and NPV are only mention once or twice on the exam• You will not have to calculate it, nor know formula, just understand the concept• Amount of money is always more valuable sooner than later, as this enables to take advantage of investment opportunities.• Higher PV more preferable project. A potential investment project is selected, if value of NPV is >= ZERO• PV = FV / (1 + i) n• Example:• Project X is expected to make $50,000 in two years. Project Y is expected to make to $80,000 in three years. If the cost of capital is 5 percent, which project to choose?• Using PV formula, PV = FV / (1 + i) n , PV for Project X is $69,107 and Project Y is $45,351.• Project Y will return the highest investment to the company and should be chosen over Project X.

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Net Present Value Example p Note that oe a totals are equal, but NPVs are not because of the time value of money y

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Internal Rate of Return (IRR)• This is just another way of interpreting the benefit from the project. This is just another way of interpreting the benefit from the project.• It looks at the cost of the project as the capital investment and translates the profit into the interest rate over the life of that investment. • Calculations for IRR are not part of this certification. It is enough if you understand that the greater the value for IRR, the more beneficial the • Example:• You have two projects to choose from: Project A with an IRR of 21%, or project B with an IRR of 15%, which once you prefer?• Answer: Project A.

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Benefit Cost Ratio• This is the value obtained by dividing the benefit by the cost.• The greater the value, the more attractive the project The greater the value, the more attractive the project• A benefit cost ration >1 means the benefit are grater than the cost• A benefit cost ration <1 means the cost are grater than the benefit• A benefit cost ration =1 means the benefit are equal the cost• For example, if the projected cost of producing a product is 10,000$, and you expect to sell it for 40,000$, 40 000$ then the BCR is equal to 40,000$/10,000$, which is equal to 4. For the benefit to exceed cost, the BCR must be greater than 1.Example:If BCR of project A is 2.3, and the BCR of project B is 1.7, which project would you select?Answer : Project A

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Payback Period • The payback period is the length of time required to recover the initial cash outlay on the project.• For example, if a project involves a cash outlay of 600,000$ and generates cash inflows of. For example, if a project involves a cash outlay of 600,000$ and generates cash inflows of. 100000$, 150000$, 150000$ and 200000$ in the first, second, third and fourth years respectively, • its pay back period is 4 years because the sum of cash flows during the four years is equal to the initial outlay. According to the payback criterion, i iti l tl A di t th b k it i• the shorter the payback period, the more desirable the project.• Payback period = cost of period or investment / Annual cash flow• Example:• You have two projects to choose from , Project A with payback period of 6 months or project B with payback period of 18 months, which one would you prefer?• Answer : Project A Answer : Project A

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Charting the Payback Period

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Economic Value Added (EVA)• Economic Value Added (EVA) – Value added to organization by the project• Economic value should rarely appear in questions or choices Economic value should rarely appear in questions or choices

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Opportunity Cost.• Opportunity cost (opportunity lost) is the NPV of the next best project, you are not doing, because you have decided to invest in a project.• Let us assume that you have 100,000 rupees and you are investing this money in project ‘A’, whose NPV=200,000 and because of this you are unable to do project ‘B’, whose NPV=150,000 or project ‘C’, whose NPV = 120,000, then the opportunity cost is 150,000, which is the NPV of project B , which is the next best option after A . project ‘B’, which is the next best option after ‘A’.• Example:• You have two projects to choose from: Project A with an NPV of 45,000$, or project B with an NPV of 85,000$, what Is the opportunity cost of selecting project B ? $• Answer : 45,000$

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Sunk Cost• Sunk Cost – Cost already incurred. This should not be taken into account while taking decision.• Are expended costs; accounting standards that sunk costs should not be considered when deciding whether to continue with a troubled project.Example :You have project with an initial budget of 1,000,000 $ , you are halfway through the project and have spend 2,000,000 $, do you consider the 1,000,000 $ over budget when determining whether to continue with the project.• Answer: NO, the money spent is gone

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Law of Diminishing return• Law of Diminishing return – After a point, adding more resources will not have proportional benefit.• Example: • A single programmer may produce at 1 module per hour. With second a programmer the two may produce 1.75 module/ hour. With third programmer, the group may produce 2.25 modules/ With third programmer, the group may produce 2.25 modules/ hour

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Working Capital• Working Capital – Current assets minus current liabilities.The amount of money the company has available to invest, including investmentin project

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Depreciation• Depreciation Assets loose value over useful life Depreciation – Assets loose value over useful life.• Depreciation methods based on time D i ti th d b d ti Straight line method Declining balance method Declining balance method Sum‐of‐the‐years‐digits method Depreciation based on use (activity)

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Straight line depreciation• Depreciation = (Cost Residual value) / Useful life Depreciation = (Cost ‐ Residual value) / Useful life [Example, Straight line depreciation] On April 1, 2011, Company A purchased an equipment at the cost of $140,000. This equipment is estimated to have 5 year useful life. At the end of the 5th year, the salvage value (residual value) will be $20,000. Company A recognizes depreciation to the nearest whole month. Calculate the depreciation expenses for depreciation to the nearest whole month. Calculate the depreciation expenses for 2011, 2012 and 2013 using straight line depreciation method. Depreciation for 2011 = ($140,000 ‐ $20 000) 1/5 9/12 $18 000 ($140 000 $20,000) x 1/5 x 9/12 = $18,000 Depreciation for 2012 = ($140,000 ‐ $20,000) x 1/5 x 12/12 = $24,000 ( ) Depreciation for 2013 = ($140,000 ‐ $20,000) x 1/5 x 12/12 = $24,000

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Double declining balance depreciation Book Value Depreciation p Depreciation p Book Value at YearY at the beginning Rate Expense the year‐end2011 $140,000 $140 000 40% $42,000 ( 1) $42 000 (*1) $98,000 $98 0002012 $98,000 40% $39,200 (*2) $58,8002013 $58,800 40% $23,520 (*3) $35,2802014 $35,280 40% $14,112 (*4) $21,1682015 $21,168 40% $1,168 (*5) $20,000

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Double declining balance depreciation (*1) $140,000 x 40% x 9/12 = $42,000 (*2) $98,000 x 40% x 12/12 = $39,200 (*3) $58,800 x 40% x 12/12 = $23,520 (*4) $35 280 x 40% x 12/12 = $14 112 $35,280 $14,112 (*5) $21,168 x 40% x 12/12 = $8,467 --> Depreciation for 2015 is $ , p $1,168 to keep book value same as psalvage value. --> $21,168 - $20,000 = $1,168 (At this point, depreciation stops.)

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Sum‐of‐the‐years‐digits methodDepreciation expense = (Cost ‐ Salvage value) x Fraction Fraction for the first year = n / (1+2+3+...+ n) Fraction for the second year = (n‐1) / (1+2+3+...+ n) Fraction for the third year = (n‐2) / (1+2+3+...+ n) ... Fraction for the last year 1 / (1+2+3+ + n) Fraction for the last year = 1 / (1+2+3+...+ n) n represents the number of years for useful life.[Example, Sum‐of‐the‐years‐digits method] Company A purchased the following asset on January 1, 2011. C A h d th f ll i t J 1 2011 What is the amount of depreciation expense for the year ended December 31, 2011? Acquisition cost of the asset ‐‐> $100,000 Useful life of the asset ‐‐> 5 years Residual value (or salvage value) at the end of useful life ‐‐> $10,000 Depreciation method ‐‐> sum‐of‐the‐years‐digits method Calculation of depreciation expense Sum of the years digits = 1+2+3+4+5 = 15 Depreciation for 2011 = ($100,000 ‐ $10,000) x 5/15 = $30,000 Depreciation for 2012 = ($100,000 ‐ $10,000) x 4/15 = $24,000 Depreciation for 2013 = ($100,000 ‐ $10,000) x 3/15 = $18,000 Depreciation for 2014 = ($100,000 ‐ $10,000) x 2/15 = $12,000 Depreciation for 2015 = ($100,000 ‐ $10,000) x 1/15 = $6,000 Sum of the years digits for n years = 1 + 2 + 3 + ...... + (n‐1) + n = (n+1) x (n / 2) Sum of the years digits for 500 years = 1 + 2 + 3 + ...... + 499 + 500 = (500 + 1) x (500 / 2) = (501 x 500) / 2 = 125,250

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Project selection methods – exercise Accounting Concept Project A Project B AnswerNet present value (NPV) 1,000,000 $ 75,000 $ AInternal rate of return (IRR) 13 % 17 % BPayback period 16 months 18 months ABenefit cost ratio (BCR) 2.27 1.3 A

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Strategic Planning & Project Selection• Strategic planning involves determining long‐term objectives, predicting future trends, and projecting the need for new products and services• Organizations often perform a SWOT analysis – A l i St Analyzing Strengths, Weaknesses, Opportunities, and Threats th W k O t iti d Th t • Very important to have managers from outside the IT dept assist in the planning process as they can help to understand organizational strategies and identify the business areas that support them i d id if h b i h h• As part of strategic planning, organizations: – Identify potential projects Identify potential projects – Use realistic methods to select which projects to work on – Formalize project initiation by issuing a project charter 29

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Develop Project CharterProjects are authorized by someone external to the project such as a sponsor,PM0, or portfolio steering committee.The project initiator or sponsor should be at a level that is appropriate tofunding the project.They will either create the project charter or delegate that duty to the projectmanager.The initiators signature on the charter authorizes the project.ProjectsP j t are authorized d t i t th i d due to internal b i l business needs or external i fl d t l influences.This usually triggers the creation of a needs analysis, business case, ordescription of the situation the project will address.Chartering a project links the project to the strategy and ongoing work of theorganization.

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4.1.1 Develop Project Charter: lnputs.1 Project Statement of Work: 1 . The statement of work (SOW) is a narrative description of products or services to be delivered by the project. For internal projects, the project initiator or sponsor provides p j , p j p p the statement of work based on business needs, product, or service requirements. For external projects, the statement of work can be received from the customer as part of a bid document, for example, request for proposal, request for information, request for bid, or as part of a contract.

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4.1.1 Develop Project Charter: lnputsThe SOW references:• Business need: An organizations business need may be based on a organization s market demand, technological advance, legal requirement, or government regulation.• Product scope description: This documents the characteristics of the product that the project will be undertaken to create.• Strategic plan: AII projects should support the organizations strategic goals. The strategic plan of the performing organization should be considered as a factor when making project selection decisions and prioritization prioritization.

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4.1.1 Develop Project Charter: lnputsThe business case is created as a result of one or more of the following:• Market demand (e.g., a car company authorizing a project to build more fuel-efficient cars in response to gasoline shortages),• Organizational need (e.g., a training company authorizing a project to create a new course to increase its revenues),• Customer request (e.g., an electric utility authorizing a project to build a new substation to serve a new industrial park) park),• Technological advance (e.g,, an electronics firm authorizing a new project to develop a faster cheaper and smaller laptop after ad ances in comp ter memor and faster, cheaper, advances computer memory electronics technology),

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4.1.1 Develop Project Charter: lnputs• Legal requirement (e g a paint manufacturer authorizing a project t0 establish (e.g., guidelines for handling toxic materials),• Ecological impacts (e.g., a company undertakes a project to lessen its environmental impact),or• Social need (e.g., a non-governmental organization in a developing country authorizing a project to provide potable water systems to communities suffering from high rates of cholera). g )

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4.1.1 Develop Project Charter: lnputs.3 Contract: • A contract is an input if the project is being done for an external customer customer..4 Enterprise Environmental Factors: p • The enterprise environmental factors that can influence the Develop Project Charter process include, but are not limited to: • Governmental or industry standards, • 0rganization infrastructure and infrastructure, • Marketplace conditions

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4.1.1 Develop Project Charter: lnputs.5 Organizational Process Assets: 5 • The organizational process assets that can influence the Develop Project Charter process include, but are not limited to: • organizational standard processes, policies, and standardized process definitions for use in the organization; • Templates (e.g., project charter template); and • Historical information and lessons learned knowledge base.

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4.1.2 Develop Project Charter: Tools and Techniques.1 Expert Judgment: 1 • Expert judgment is often used to assess the inputs used to develop the project charter. • Such judgment and expertise is applied to any technical and management details during this process. Such expertise is available from many sources, including: • Other units within the organization, • Consultants, , • Stakeholders, including customers or sponsors, • Professional and technical associations, • industry groups groups, • Subject matter experts, and • Project management office (PM0).

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4.1.3 Develop Project Charter: OutputsThe project charter documents the business needs current needs,understanding of the customer’s needs, and the new product, service,or result that it is intended to satisfy, such as: • Project purpose or justification, • Measurable project objectives and related success criteria, • High‐level requirements, • High‐level project description, • High‐level risks, • Summary milestone schedule schedule, • Summary budget, • Project approval requirements (what constitutes project success, who decides the project is successful, and who signs off on the project), • Assigned project manager, responsibility, and authority level, and • Name and authority of the sponsor or person authorizing the project charter,

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4.2 Develop Project Management PlanDevelop Project Management Plan is the process ofdocumenting the actions necessary to define, prepare,integrate,integrate and coordinate all subsidiary plans plans.The project management plan defines how the project isexecuted, monitored and controlled, and closed. t d it d d t ll d d l dThe project management plan is developed through a seriesof integrated processes until project closure.This process results in a project management plan that isprogressively elaborated by updates and controlled andapproved through the Perform integrated ChangeControl (Section 4 5) process 4.5) process.

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4.2.1 Develop Project Management Plan: lnputs.1 P j t Ch t 1 Project Charter:.2 Outputs from Planning Processes: Outputs from many of the planning processes described p y p gp in Chapters 5 through 12 are integrated to create the project management plan. Any baselines and subsidiary management plans that are an output from other planning processes are inputs to this process. In addition, addition updates to these documents can necessitate updates to the project management plan.

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4.2.1 Develop Project Management Plan: lnputs.3 Enterprise Environmental Factors: 3 The enterprise environmental factors that can influence th D l i fl the Develop P j t M Project Management Pl t Plan Process include, but are not limited to: • Governmental or industry standards standards, • Project management information systems (e.g., an automated tool, such as a scheduling software tool, a configuration management system, an information collection and distribution system, or web interfaces to ot e o other online automated systems), e auto ated syste s), • Organizational structure and culture, infrastructure (e.g., existing facilities and capital equipment), and • Personnel administration

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4.2.1 Develop Project Management Plan: lnputs.4 Organizational Process Assets: 4 The organizational process assets that can influence the Develop Project Management Plan process include, but are not limited to: • Standardized guidelines, work instructions, pr0posal evaluation criteria, and performance measurement criteria, • Project management plan template l l elements of the project management plan that may be updated include, but are not limited to: o Guidelines and criteria for tailoring the organizations set of standard processes to satisfy the specific needs of the project, and o Project closure guidelines or requirements like the product validation and acceptance criteria criteria,

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4.2.1 Develop Project Management Plan: lnputs • Change control procedures including the steps by which official company standards, policies, plans, and procedures, p y ,p ,p , p , or any project documents will be modified and how any changes will be approved and validated, • Project files from past projects (e.g., scope, cost, schedule and performance measurement baselines, project p , p j calendars, project schedule network diagrams, risk registers, planned response actions, and defined risk impact), impact)

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4.2.2 Develop Project Management Plan: Tools and Techniques.1 Expert Judgment: 1 Expert Judgment: When developing the project management plan, expert judgment is utilized to: judgment is utilized to: • Tailor the process to meet the project needs, • Develop technical and management details t0 be included in Develop technical and management details t0 be included in the project management plan, • Determine resources and skill levels needed t0 perform project work, • Define the level of configuration management t0 apply on the project, and the project and • Determine which project documents will be subject to the formal change control process.

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4.2.3 Develop Project Management Plan: 0utputsThe project management plan integrates and consolidates all of thesubsidiary management plans and baselines from the planning processes andincludes, but is not limited to:• The life cycle selected for the project and the processes that will be applied to each phase,• Results Res lts of the tailoring b the project management team as follo s by follows: o Project management processes selected by the project management team, o Level of implementation of each selected process, o Descriptions of the tools and techniques to be used for accomplishing those processes, and p g p , o How the selected processes will be used to manage the specific project, including the dependencies and interactions among those processes and the essential inputs and outputs processes, outputs.

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4.2.3 Develop Project Management Plan: 0utputs• How work will be executed to accomplish the project objectives objectives,• A change management plan that documents how changes will be monitored and controlled, d t ll d• A configuration management plan that documents how configuration management will be performed,• How integrity of the performance measurement baselines will be maintained,• Need and techniques for communication among stakeholders, and q g ,• Key management reviews for content, extent, and timing to facilitate addressing open issues and pending decisions decisions.

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Project Management Plan – Format and BaselineThe project management plan can be either summary level or The project management plan can be either summary level ordetailed, and can be composed of one or more subsidiary plans. Each of the subsidiary plans is detailed to the extent required by the specific project. Once the project management plan is baselined, it may only be h l b l d l bchanged when a change request is generated and approved through g g pthe Perform integrated Change Control process.Project baselines include, but are not limited to:• Schedule baseline,• Cost performance baseline, and• Scope baseline.

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Project Management Subsidiary PlansSubsidiary plans include, but are not limited to:Subsidiary plans include but are not limited to:• Scope management plan (introduction to Chapter 5),• Requirements management plan (Section 5..1.3.2),• Schedule management plan (introduction to Chapter 6),• Cost management plan (introduction to Chapter 7),• Quality management plan (Section 8.1.3‐1),• Process improvement plan (Section 8.1.3.4),• Human resource plan (Section 9.1.3.1), Human resource plan (Section 9 1 3 1)• Communications management plan (Section I0.2.3.1),• Risk management plan (Section 1 1 .1 .3.1), and• Procurement management plan (Section 12.1.3.1). ( )0ften the scope, schedule, and cost baseline will be combined into a performance measurement baseline that is used as an overall project baseline against which integrated performance can be measured. f b dThe performance measurement baseline is used for earned value measurements.

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4.3 Direct and Manage Project ExecutionDirect and Manage Project Execution is the process of performing the Direct and Manage Project Execution is the process of performing thework defined in the project management plan to achieve the projects objectives. These activities include, but are not limited to:• Perform activities to accomplish project requirements; f l h• Create project deliverables;• Staff, train, and manage the team members assigned to the project; Staff train and manage the team members assigned to the project;• Obtain, manage, and use resources including materials, tools, equipment, and facilities;• lmplement the planned methods and standards;

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4.3 Direct and Manage Project Execution• Establish and manage project communication channels, both external and internal to the project team; p j ;• Generate project data, such as cost, schedule, technical and quality progress, and status to facilitate forecasting; progress and status to facilitate forecasting;• lssue change requests and adapt approved changes into the projects scope, plans, and environment; scope plans and environment;• Manage risks and implement risk response activities;• Manage sellers and suppliers; and , p pp p• Collect and document lessons learned, and implement approved process improvement activities.

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Direct and Manage Project ExecutionDirect and Manage Project Execution also requires implementation of approved changes covering:• Corrective action: Documented direction for executing the Corrective action: Documented direction for executing the project work to bring expected future performance of the project work in line with the project management plan.• Preventive action:. A documented direction to perform an activity that can reduce the probability of negative activity that can reduce the probability of negative consequences associated with project risks.• Defect repair: The formally documented identification of a defect in a project component with a recommendation to either repair the defect or completely replace the component. either repair the defect or completely replace the component

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4.3.1 Direct and Manage Project Execution: lnputs.1 Project Management Plan: 1 Project Management Plan:.2 Approved Change Requests: As part of the Perform integrated Change Control process, a change control status update will indicate that some changes are approved and some are not. and some are not Approved change requests are scheduled for implementation by the project team. Approved change requests are the documented, the project team. Approved change requests are the documented, authorized changes to expand or reduce project scope. The approved change requests can also modify policies, the project management plan, procedures, costs, or budgets; or revise schedules. Approved change requests may require implementation of A d h t i i l t ti f preventive or corrective actions.

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4.3.1 Direct and Manage Project Execution: lnputs.3 Enterprise Environmental Factors: 3 The enterprise environmental factors which can influence the Direct and Manage Project Execution process i l d b are not i d j i include, but limited to: • Organizational company or customer culture and structure Organizational, structure, • lnfrastructure (e.g., existing facilities and capital equipment), • Personnel administration (e.g., hiring and firing guidelines, employee performance reviews, and training records), • Stakeholder risk tolerances, and • Project management information systems (e.g., an automated tool suite, such as a scheduling software tool, a configuration management system an information collection and distribution system, system or web interfaces to other online automated systems).

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4.3.1 Direct and Manage Project Execution: lnputs.4 0rganizational Process Assets: 4 The organizational process assets that can influence the Direct and Manage Project Execution process include, but are not limited to: • Standardized guidelines and work instructions; • Communication requirements C i ti i t • lssue and defect management procedures • Process measurement database • Project files from prior projects (e.g., scope, cost, schedule, performance measurement baselines, • project calendars, project schedule, network diagrams, risk registers, planned response actions, and defined risk impact); and • lssue and defect management database .

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4.3.2 Direct and Manage Project Execution: Tools and Techniques.1 Expert Judgment: 1 Expert judgment is used to assess the inputs needed to direct and manage execution of the project management plan. Such judgment and expertise is applied to all technical and management details during this process..2 Project Management lnformation System: The project management information system, part of the enterprise environmental factors, provides access to an automated tool, such as a scheduling software tool, a configuration management system, an i f t t information collection and di t ib ti ti ll ti d distribution system, or web interfaces to other online automated systems used during the Direct and Manage Project Execution effort. g g j

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4.3.3 Direct and Manage Project Execution: 0utputs 1 Deliverables: 1 D li bl An approved deliverable is any unique and verifiable pr0duct, result, or capability to perform a service that must be produced to complete a process, phase, or project. .2 Work Performance lnformation: lnformation from project activities is routinely collected as the project progresses. This information can be related to various performance results including, but not limited to: • Deliverable status,, • Schedule progress, and • Costs incurred.

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4.3.3 Direct and Manage Project Execution: 0utputs.3 Change Requests: 3 Requests for a change can be direct or indirect, externally or internally initiated, and can be optional or legally/contractually mandated and can include: • Corrective action. Documented direction for executing the project work to bring expected future performance of the project work in line with the project management plan plan. • Preventive action. A documented direction to perform an activity that can reduce the probability of negative consequences associated with project risks. • Defect repair. The formally documented identification of a defect in a project component with a recommendati0n t0 either repair the defect 0r completely replace the component. • Updates. Changes to f formally controlled documentation, plans, etc., to reflect f modified or additional ideas or content.

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4.3.3 Direct and Manage Project Execution: 0utputsProject Management Plan Updates:Project Management Plan Updates:Elements of the project management plan that may beupdated include, but are not limited to:updated include but are not limited to: • Requirements management plan, • Schedule management plan, Schedule management plan • Cost management plan, • Quality management plan, y g p , • Human resource plan, • Communications management plan, • Risk management plan, • Procurement management plan, and • Project baselines. P j t b li

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4.3.3 Direct and Manage Project Execution: 0utputs.5 Project Document Updates 5P j tD tU d t Project documents that may be updated include, but are not limited to: • Requirements documents, • Project logs (issue assumptions etc ) Project logs (issue, assumptions, etc.), • Risk register, and • Stakeholder Register.

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4.4 Monitor and Control Project WorkMonitor and Control Project Work is the process of tracking, reviewing, and Monitor and Control Project Work is the process of tracking, reviewing, andregulating the progress to meet the performance objectives defined in the project management plan. Monitoring is an aspect of project management performed throughout the project. M it i i t f j t t f d th h t th j tMonitoring includes collecting, measuring, and distributingMonitoring includes collecting measuring and distributingperformance informati0n, and assessing measurements and trends to effect process improvements. Continuous monitoring gives the project management team insight into the health of the project, and identifies any areas that may require special attention.Control includes determining corrective or preventive actions or replanting and g p pfollowing up on action plans to determine if the actions taken resolved the performance issue.

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Monitoring and ControlThe Monitor and Control Project Work process is concerned with:• Comparing actual project performance against the project management plan;• Assessing performance to determine whether any corrective or preventive actions are indicated, and then recommending those actions as necessary;• identifying new risks and analyzing, tracking, and monitoring existing project risks to make sure the risks are identified, their status is reported, and that appropriate risk response plans are being executed;• Maintaining an accurate, timely information base concerning the projects product(s) and their associated documentation through project completion;• Providing information to support status reporting, progress measurement, and forecasting;• Providing forecasts to update current cost and current schedule information; and• Monitoring implementation of approved changes as they occur.

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Monitoring and Control Project Work: Inputs.1 Project Management Plan 1 Project Management Plan Described in Section 4.2.3.1..2 Performance Reports Reports should be prepared by the project team detailing activities, accomplishments, milestones, identified issues, and problems. Performance reports can be used to report the key information • including, but not limited to: including, but not limited to: • Current status, • Significant accomplishments for the period, • S h d l d ti iti Scheduled activities, • Forecasts, and • lssues, ,

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Monitoring and Control Project Work: Inputs.3 Enterprise Environmental Factors: 3 Enterprise Environmental Factors: The enterprise environmental factors that can influence the Monitor and Control Project Work process.4 Organizational Process Assets The organizational process assets that can influence the M0nitor and Control Project Work process

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4.4.2 Monitor and Control Project Work: Tools and Techniques.1 Expert Judgment: 1 Expert Judgment: Expert judgment is used by the project management E tj d ti d b th j t t team to interpret the information provided by the monitor and control processes. The project manager, in monitor and control processes The project manager in collaboration with the team, determines the actions required to ensure project performance matches q p j p expectations.

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4.4.3 Monitor and Control Project Work: 0utputs.1 Ch 1 Change R Requests: As a result of comparing planned results to actual results, change requests may be issued which may expand adjust or reduce project or expand, adjust, product scope. changes can impact the project management plan, project documents, or product deliverables. Changes may include, but are not Iimited to the following: • Corrective action. A documented direction for executing the project work to bring expected future performance of the project work in line with the project management plan. • Preventive action. A documented direction to perform an activity that can reduce the probability of negative consequences associated with project risks. • Defect repair. The formally documented identification of a defect in p y a project component with a recommendation to either repair the defect or completely replace the component.

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4.4.3 Monitor and Control Project Work: 0utputs.2 Project Management Plan Updates: 2 Project Management Plan Updates: Project management plan elements that may be updated P j t t l l t th t b d t d include, but are not limited to: • Sched le management plan Schedule management plan • Cost management plan, • Q li Quality management plan, l • Scope baseline, • Schedule baseline, and • Cost performance baseline.

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4.4.3 Monitor and Control Project Work: 0utputsProject Document Updates:P j tD tU d t • Project documents that may be updated include, but are not limited to: • Forecasts, • Performance reports and Performance reports, and • lssue log

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4.5 Perform Integrated Change ControlPerform integrated Change Control is the process of reviewing all change requests, approving changes and managing changes to the deliverables, organizational process assets, project documents and the project management plan. The Perform integrated Change Control process is conducted from p jproject inception through completion. The project management plan, p g p p j g pthe project scope statement, and other deliverables are maintained by carefully and continuously managing changes, either by rejecting changes or by approving changes thereby assuring that only approved changes or by approving changes thereby assuring that only approvedchanges are incorporated into a revised baseline.

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4.5 Perform Integrated Change ControlThe Perform lntegrated Change Control process includes the following change The Perform lntegrated Change Control process includes the following changemanagement activities in differing levels of detail, based upon the progress of project execution:• lnfluencing the factors that circumvent integrated change control so that only lnfluencing the factors that circumvent integrated change control so that only approved changes are implemented;• Reviewing, analyzing, and approving change requests promptly, which is essential, as a slow decision may negatively affect time, cost, or the feasibility of essential as a slow decision may negatively affect time cost or the feasibility of a change;• Managing the approved changes;• Maintaining the integrity of baselines by releasing only approved changes for Maintaining the integrity of baselines by releasing only approved changes for incorp0ration into the project management plan and project documents;• Reviewing, approving, or denying all recommended corrective and preventive actions;• Coordinating changes across the entire project (e.g., a proposed schedule change will often affect cost, risk, quality, and staffing); and• Documenting the complete impact of change requests. h l f h

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Configuration Management SystemA configuration management system with integrated change control provides a standardized, effective, and efficient way to centrally manage approved changes and baselines within a project. Configuration control is focused on the specification of both the deliverables and the processes while change control is ifi i f b h h d li bl d h hil h lifocusedon identifying, documenting and controlling changes to the project and the product baselines. Project‐wide application of the configuration management d b li P j id li i f h fi isystem, including change control processes, accomplishes three main objectives:• E t bli h Establishes an evolutionary method to consistently identify and request l ti th d t i t tl id tif d t changes to established baselines, and to assess the value and effectiveness of those changes,• P id Provides opportunities to continuously validate and improve the project by t iti t ti l lid t di th j tb considering the impact of each change, and• Provides the mechanism for the project management team to consistently communicate all approved and rejected changes to the stakeholders. i t ll d d j t d h t th t k h ld

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4.5.1 Perform lntegrated Change Control: Inputs.1 Project Management PIan Described in Section 4.2.3.1 . Described in Section 4.2.3.1 ..2 Work Performance lnformation Described in Section 4.3,3.2..3 Change Requests: All of the monitoring and control processes and many of the executing processes produce change requests as an output. executing processes produce change requests as an output Change requests can include corrective action, preventive action, and defect repairs. However, corrective and preventive actions do not normally affect the project baselines, only the performance against the baselines.

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4.5.1 Perform lntegrated Change Control: Inputs.4 Enterprise Environmental Factors 4 Enterprise Environmental Factors The following enterprise environmental factor can influence the lntegrated Change Control process: project management information system.5 Organizational Process Assets: The organizational process assets that can influence the Perform lntegrated Change Control process include, but are not limited to: • Change control procedures, including the steps by which official company standards, policies, plans, and other project documents will be modified, and how any changes will be approved, validated, and implemented; • Procedures for approving and issuing change authorizations; • Process measurement database used to collect and make available measurement data on processes and products

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4.5.2 Perform lntegrated Change Control: Tools and Techniques.1 Expert Judgment 1 ln addition to the project management teams expert judgment, stakeholders may be asked to provide their expertise and may be asked to sit on the change control board..2 Change Control Meetings h l A change control board is responsible for meeting and reviewing the change requests and approving or rejecting those change requests. The roles and responsibilities 0f these boards are clearly defined and are agreed upon by appropriate stakeholders. All change control b d d i i h t l board decisions are d documented and t d d communicated to the stakeholders for information and follow‐up actions.

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4.5.3 Perform lntegrated Change Control: 0utputs.1 Change Request Status Updates: 1 Change Request Status Updates: Change requests are processed according to the change contr0l system by the project manager or by an assigned team member..2 Project Management Plan Updates Elements of the project management plan that may be updated Elements of the project management plan that may be updated include but are not limited to: • Any subsidiary management plans, and • Baselines that are subject to the formal change control process..3 Project Document Updates: 3 Project Document Updates: Project documents that may be updated as a result 0f the Perform Integrated Change Control process include the change request log and any documents that are subject to the formal change control process.

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4.6 Close Project or PhaseClose Project or Phase is the process of finalizing all activities Cl P j Ph i h f fi li i ll i i iacross all of the Project Management Process Groups to formally complete the project or phase. When closing the project, the project manager will review all prior information from the previous phase closures to ensure f f h h lthat all project work is complete and that the project has met its objectives. jSince project scope is measured against the project management plan, the project manager will review that document to ensure completion before considering the project closed.

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4.6.1 Close Project or Phase: lnputs.1 Project Management Plan 1 Project Management Plan.2 Accepted Deliverables Those deliverables that have been accepted through the Verify Those deliverables that have been accepted through the Verify Scope process in Section 5.4..3 0rganizational Process Assets: The organizational process assets that can influence the Close Project or Phase process include, but are not limited to: • Project or phase closure guidelines 0r requirements (e 9 project Project or phase closure guidelines 0r requirements (e.9., project audits, project evaluations, and transition criteria), and • Historical information and lessons learned knowledge base (e.9., project records and documents, all project closure information and documentation, information about both the results of previous project selection decisions and previous project previous project selection decisions and previous project performance information, and information from the risk management effort).

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4.6,2 Close Project or Phase: Tools and Techniques.1 Expert Judgment: 1E tJ d t Expert judgment is applied when performing administrative closure activities. These experts ensure the project or phase closure is performed to the appropriate standards.

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4.6.3 Close Project or Phase 0utputs.1 Final Product Service or Result Transition: 1 Product, Service, This 0utput refers to the transition of the final product, service, or result that the project was authorized to produce (or in the case of phase closure, the intermediate product, service, or result of that phase)..2 0rganizational Process Assets Updates: The organizational process assets that are updated as a result of the Close Project 0r Phase process include, but are not limited to: Project files. Documentation resulting from the projects activities, for example, project management plan, sc0pe, cost, schedule and project calendars, risk registers, change p j , g , g management documentation, planned risk resp0nse actions, and risk impact.

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4.6.3 Close Project or Phase 0utputs• Project or phase closure documents Project or phase closure documents. documents, consisting of formal documentation that indicates completion of the project or phase and the transfer of the completed project or phase deliverables to others, such as an operations group or to the new phase.• Historical information. Historical information and lessons learned informali0n are transferred to the lessons learned knowledge base for use by future projects or phases.

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For more information do not hesitate to contact me. Ahmad H. Maharma ‐ PMP®• Ramallah, Palestine • Ph Phone: + (972) (2) 2968644 (972) (2) 2968644• Mobile: + (972) (599) 001155 E‐Mail: ahmad.maharma@gmail.com @g