PMP PREPARATION : INTEGRATION

    I cleared my PMP on 26th may 2014. I have gone through all the three books PMBOK, RITA MULCAHY'S and HEAD FIRST. During preparation I made few notes. so the material has been picked up from all the three books and these are just the key points. 
 NOTE : IT IS RECOMMENDED THAT ONE SHOULD READ THESE POINTS IN DETAIL FROM THE BOOKS (which ever interests you more) AND ONLY AFTER YOU HAVE FINISHED A THOROUGH READING, YOU CAN GO THROUGH THESE POINTS FOR CONSOLIDATION.

INTEGRATION

• PROJECT LIFE CYCLE : Two types

      1. Plan driven - predictive , you already have a plan in hand e.g. construction projects

      2. Change driven - Adaptive, Varying, Agile

AOA (ACTIVITY ON ARROW) & AON (ACTIVITY ON NODE) both come under PERT and relationship is finish to start

• CONTRACT CLOSURE (PROCUREMENT CLOSURE) : Can happen multiple times in multiple phases

• ADMINISTRATIVE CLOSURE (PROJECT OR PHASE CLOSURE) : only once, final closure and at completion of the project

imp : contract closure happen before administrative closure

(VERY IMPORTANT)

• PROJECT SELECTION METHODS (please remember all the names and what falls under which, its important)

1. BENEFIT MEASUREMENT METHOD (comparative approach) : 

      a. MURDER BOARD : a panel of people who try to shot down an idea, senior management takes part

      b. PEER REVIEW : team mates take part

      c. SCORING MODEL : you interview all the vendors and score them 

      d. ECONOMIC MODELS 

            i. Present Value PV = FV/ (1+r) to the power n

                                             r = interest rate, n = number of time period, PV = present value, FV =                                                      future value

            ii. Net Present value : higher the better, no calculation reqd

            iii. IRR : higher the better , no calculation reqd, it is the rate which total income = total cost OR                             total inflow = total outflow

            iv. Pay Back Period : lower the better, you sometime have to calculate this but easy

            v. Cost Benefit Analysis : what is the cost you have to put and what benefit will you get, select which is giving you better 

2. CONSTRAINED OPTIMIZATION METHOD (mathematical approach) : just remember the names

      a. Linear Programming

      b. Integer Programming

      c. Dynamic Programming

      d. Multi Objective Programming

• BUSINESS CASE : 

      1. Why the project was selected

      2. How it fits into the Organization Strategic Goals

      3. How it will bring value to the Organization

• SUNK COST : Money already gone, spent. when trying to reopen a troubled project it should not be considered

• EVA (ECONOMIC VALUE ADDED) :   it is not earned value EV : whether the project returns to the company more value then the initiative costs

• LAW OF DIMINISHING RETURNS : adding more resources will increase the overall output but will reduce individual productivity

• DEPRECIATION : large assets loose value over time 

            1. STRAIGHT LINE DEPRECIATION : Same depreciation every year . for eg. 200$, 200$, 200$

            2. ACCELERATED DEPRECIATION : depreciates faster then the straight line. for eg. 200$, 450$, 800$

                    a. double declining balance : just remember the name

                    b. sum of the year digit : just remember the name

• CONSTRAINTS : Limit the team options 
• ASSUMPTIONS : things assumed to be true but may not be true. can be a risk.

SCOPE BASELINE + SCHEDULE BASELINE + COST BASELINE = PERFORMANCE MEASUREMENT BASELINE

• KICK OFF MEETINGS :  after project management plan is completed and before the execution can begin

                 INVOLVED : customers, sellers, the project team , senior management, sponsor

                AIM :  1. Announce the start of the project

                             2. Ensure that everyone is on the same page

                             3. Review (milestones, risks, communication, meetings, schedule)

• WORK AUTHORIZATION SYSTEM : when and in what sequence work is done

                                        DEFECT REPAIR = REWORK 

• DETAILED PROCESS OF MAKING A A CHANGE :  most imp and copied from Rita Mulcahy's, please go through the book for even a better understanding. topic is really imp. no other book has explained it better then this 

1. Prevent the root cause of the change (prevention is better then cure :) )
2. Identify change
3. Look at the impact of the change on the other knowledge area
4. Create a change request
5. Perform integrated change control .

           a. Assess the change

           b. Look for options

           c.  The change is approved or neglected

           d. Update the status of change in the schange log

           e. Adjust/ replan/ rewrite the PM plan if required 

     

      6. Manage stakeholder expectations by communicating the change to the stakeholders affected by the change.
      7. Manage the project to the revised PM plan. Implement the new plan.

FEW IMPORTANT POINTS : from the exam point of view

1. Always, first document the corrective action then discuss
2. Project Manager can create the project charter but only SPONSOR can approve
3. PM creates PM Plan + inputs from the team
4. Primaryy responsibility to decide if a change is necessary : SPONSOR
5. Effective Project integration needs Effective Communication 
6. Integration is done by PM
7. Who does each activity : RESPONSIBILITY ASSIGNMENT MATRIX
8. When each activity is done : PROJECT SCHEDULE
9. Wheen and in what order the project is performed : WORK AUTHORIZATION SYSTEM
10. How to decide if a change should be approved : check if it falls within the project (project scope)

IF NOT : 1. it should be rejected

                 2. assigned to a more appropriate project

                 3. addressed as a separate project

NOTE : most of the points have been picked up from Rita Mulcahy's