294. ITTO
Process Group Process ITTO Value
Initiating Tools/Tech's Expert Judgement
Facilitation Techniques Outputs Project Charter
Planning Develop Project Management Plan
Inputs
Project Charter
Outputs from other processes Enterprise Environmental Factors
Organization Process Assets Tools/Tech's Expert Judgement
Facilitation Techniques Outputs Project Management Plan
Executing Direct and Manage Project Inputs
Project Mgt Plan
Organization Process Assets
Monitor and Control Project Work
Inputs
Service or Result Transition Organizational Process Updates
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295. Integration management involves making choices about resource allocation, trade-offs among competing objectives, and managing interdependencies among project management knowledge areas. Please refer PMBOK ® Guide 5th edition Project Integration Management PN 65.
296. Project managers ensure organizational policies are followed for the duration of the project
297. Think about integration as balancing all the processes in the knowledge areas (scope, time, cost, quality, human resource, communications, risk, procurement, and stakeholder management) with each other, project management processes do no happen independently.
298. The Project manager is responsible for realistically assessing all time, budget and quality constraints and resolves any issues with the management prior to the start of project work
299. in order to complete a cost estimate, for example, the number of resource on the project, the scope being estimated, the risk reserves, etc., should be taken into account, as another example, adding a new resource to the project may require cost or schedule changes. In dealing with each situation that comes up on a project, manager is integrating the processes of a project management.
300. The exam may present questions about project selection in the following ways:
Easier questions may be direct, such as "What type of project selection technique is linear programming?" The answer is "a constrained optimization method:' the exam has not required test takers to know what "constrained optimization method" or the other project selection methods mean.
Instead, just know what categories the methods fall into.
The exam may also ask more challenging questions relating to business cases and project selection methods. You need to understand that there is a selection process for a project, to know what that process is, and to know that the project must support the company's strategic goals.
The exam may use project selection concepts like internal rate of return as distracters. Such information may be provided in the question when you do not need the data to answer the question. Read the questions carefully to pick out which data is relevant.
301. There are two project selection methods :
Benefit measurement method - Murder board
- Peer review - Scoring model - Economic model
Constrain optimization method
- Linear Programming a (constrained optimization method) - Integer programming
- Dynamic programming - Multi-Objective programming
302. Constrained Optimization is a kind of benefit selection method.
303. Economic Model: Cost analytical techniques are:
IRR
ROI
Present Value
NPV
Discount cash flow
Depreciation
Working capital
Sunk cost
Low Diminishing return ( at a certain point, adding more resources will decrease the production)
Opportunity cost
Economic value added
Cost benefit analysis
Payback period
304. The cost expanded at the completion of phase is known as SUNK costs 305. BCR
Benefits are not profits, Benefits = Revenues/Costs
Benefit Cost Ratio (BCR) = Benefits (or Payback or Revenue)/ Costs
Project Selection Criterion: Select project based solely on quantitative criteria. For example: select project with higher BCR. If BCR > 1 means that benefits (i.e. expected revenue) are greater than the cost. Hence, it is beneficial to do the project.
Example: There are two projects. Project A has an investment of $500,000 and a BCR of 2.5. Project B has an investment of $300,000 and a BCR of 1.5. Using Benefit Cost Ratio criterion, which project will you select?
Answer: Project A will be selected. The fact that project B has a smaller investment than project A will not impact the selection.
306. There are two kinds of project selection methods. Benefit measurement models, or comparative
methods, are used to compare the benefits and features of projects. Mathematical models use complex formulas to determine which project has the most value to the company. You should get familiar with some of the more common comparative approaches to project selection, like murder boards, benefit-to-cost ratios and peer reviews.
307. There are two decision model in choosing project during initiation:
comparative & constrained
Method Type Examples Notes
Benefit measurement (comparative approach)
Scoring models, cost-benefit analysis, review board, economic models.
Benefit measurement is the most common approach.
Constrained optimization (mathematical approach)
Linear programming, nonlinear programming, integer programming, dynamic programming, multi-objective
programming.
Constrained optimization makes use of math models and complex criteria and is often managed as a distinct project phase.
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308. If IRR and payback period Is given then DO THE PROJECT SELECTION ONLY BASED ON higher IRR . An investment with a higher IRR is not necessarily better than an investment with a lower IRR. If two projects are mutually exclusive, once should choose the project with the higher NPV at the appropriate discount rate even though the IRR many be lower.
309. The inherent discount rate or investment yield rate produced by the project over a pre-defined period of time. = IRR
310. Here is a trick to understanding the topic of management plans for the exam. Know that management plans look forward in time, and that there are management plans for all the knowledge areas. There are also the following management plans:
Change management plan
Configuration management plan
Requirements management plan
Process improvement plan
When taking the exam, assume the project manager has created each of these management plans.
For example, if a question talks about a problem on a project, the answer might be for the project manager to look at the management plan for that aspect of the project to see how the plan says to handle such a problem. Or when the work is being done, the project manager might refer to the cost management plan to see how costs are supposed to be measured on the project.
311. The exam tests you at an expert level. So how would you like to get a sophisticated question right without studying? You need to understand the following: deviations from baselines are often due to incomplete risk identification and risk management. Therefore, if the exam asks what to do when a project deviates
significantly from established baselines, the correct answer is likely the one about reviewing the project's risk management process. Many project managers do not understand that such an effort should be done.
Does it make sense to you now that we've pointed it out? Baselines are mentioned frequently on the exam.
Make sure you understand the concepts described here and what the project manager's attitude should be regarding the project's baselines and any changes to those baselines.
312. Please note the confusing terms. If the exam talks about monitoring and controlling project work, it may NOT be talking about the entire monitoring and controlling process group. Instead, it may just be referring to the integration management' process
313. Remember that monitoring and controlling means measuring against the project management plan. As you already know, scope may be completed on a project but the quality may not be acceptable, or the schedule might be met but at excessive costs. Monitor and Control Project Work is an integration function, because the project manager must balance the demands of the different knowledge areas to control the project. This process also involves monitoring any other performance measures that were included in the project
management plan.
314. Is your project really done when the technical work is done? Not if you don't close it out! The Close Project or Phase process is one part of project closing. The other part is the Close Procurements process, described in the Procurement Management chapter. Together, these two processes are addressed in about 14 questions on the exam.
315. Watch out; people with limited project management training and experience often have difficulty with this section on the exam. Many do not seem to understand the significance of closure and what it does for both the project manager and the project. A project manager must get formal acceptance of the project and its deliverables, issue a final report that shows the project has been successful, issue the final lessons learned, and index and archive all the project records. Do you understand the importance of the items included in
Rita’s Process Chart? Make sure you become familiar with all the concepts here and imagine completing these activities in the real world on large projects if you do not currently do this for your projects.
316. Be sure to remember for the exam that you always close out a project, no matter the circumstances under which it stops, is terminated, or is completed.
There are financial, legal, and administrative efforts involved in closing.
Notes
Note that the Close Project or Phase process involves getting the final formal acceptance of the project or phase as a whole from the customer, whereas the Validate Scope process in scope management (a monitoring and
controlling process) involves getting formal acceptance from the customer for many interim deliverables. The project needs both processes.
Does it make sense to you that the Close Project or Phase process is an integration management function? If not, think of the example of final performance reporting. Can you see how you would have to report on all knowledge areas? How about the example of indexing and archiving project records? Wouldn't you need to do so for records from all the knowledge areas? Take some time to think about project closing and how it applies to proper project management for large projects before you take the exam.
317. The PMIS, which is part of the environmental factors, provides access to tools, such as a scheduling software tool, a work authorization system, a configuration management system, an information collection and distribution system, or interfaces to other online automated systems. Automated gathering and reporting on key performance indicators (KPI) can be part of this system. PMBOK ® Guide - Fifth Edition, page 84
318. KPI = Key Performance Indicators (not index). Usually, this is not related to(PMP)® - it is for the organization 319. PMIS Is an EEF and includes:
Scheduling Tool ( Primavera ) Work authorization system
Information collection and distribution system
Interface to online automated system
Automated Gathering and Reporting on KPI
320. 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, preventive action, defect repair, and updates. PMBOK ® Guide - Fifth Edition, page 85
321. As the project manager you are in control of the budget, the timeline, and the resources 322. RANK THE IDEAS in BRAINSTOMING – NOMINAL GROUP
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323. Expert judgment listed as a tool and technique for several processes. The meaning of expert judgment is specific to each process. In the context of the develop the project management plan process, expert judgment includes
Tailoring the process to meet the project needs
Developing technical and management details to be included in the project management plan
Determining resources and skill levels needed to perform project work
Defining the level of configuration management to apply to the project
Determining which project documents are subject to the formal change control process 324. SOW mainly includes: Business need, product scope description and strategic plan.
325. SOW is a narrative description of product or service to be delivered by the project.
326. Templates, historical data, lessons learned, and financial databases are all Organizational Process Assets.
327. Lesson learned leads to recommendation for changing to current practice.
328. Plans, Baselines and Lessons learned are project deliverables
329. Lessons learned is used in predict trends, highlight problems and identify alternatives.
330. Any process in any knowledge area is implemented within its integrated process of the same processes group.
331. Present value does not factor in costs. There is a difference between present value and net present value.
Present value tells the expected value of the project in today's dollars. Net present value is the same thing, but it subtracts the costs after calculating the present value.