Module two

Module Two

4.0 Project Integration Management “Includes the processes and activities to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project Management Process Groups.”

PMBOK® Guide 2017 , Glossary

Primary Role

1

2

4.0 Project Integration Management Learning Outcomes • Define and describe a project charter • Describe the various project selection methods • Describe the roles and responsibilities of the project manager, project sponsor as well as other project participants and stakeholders.

• Describe project domains, activities, deliverables, and inputs/outputs of each domain.

• Describe the integrative approach of project management and communicate the importance of managing the linkages between processes.

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4.0 Project Integration Management Knowledge Area

Initiating

Integration 4.1

Planning

Executing

Monitoring and Control

Closing

4.2

4.3 4.4

4.5 4.6

4.7

Name the seven processes in the Project Integration knowledge area.

4

4.1 Develop Project Charter Knowledge Area: Integration Process Group: Initiating • • • •

Process necessary for documenting the business needs & requirements Formal written acknowledgement and recognition that a project exists Formally authorizes the project manager to assign organizational resources Project is charted by organization, program, or portfolio body – Senior Management

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4.1 Develop Project Charter ITTOs Exercise Fill out the ITTOs below and check your answers in the PMBOK® Guide 2017, pg. 75

Inputs What do you need beforehand?

Tools & Techniques How is it done?

Outputs What are the results?

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4.1.1.1-4 Develop Project Charter Inputs Inputs 1. Business documents 2. Agreements 3. EEFs 4. OPAs

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOKÂŽ Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 77-79.

1. Business need, product scope description, and the strategic plan, legal requirements, customer requests 2. Define initial intentions; contract, MOU, SLA 3. Marketplace conditions, organizational infrastructure, and industry standards 4. Organizational standard processes, templates, historical information/ lessons learned

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4.1.2.1 Develop Project Charter T&T

1. Expert Judgment Consultants, stakeholders, industry groups, SMEs, PMO, and professional associations.

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOKÂŽ Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 79.

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4.1.2.2-4 Develop Project Charter T&T

2. Data Gathering • Brainstorming • Checklists • Focus groups • Interviews

3. Interpersonal & team skills • Conflict Management • Facilitation • Interviews • Meeting Management

4. Meetings

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 80.

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4.1.3.1 Develop Project Charter Outputs Project Charter 1. Project purpose 2. Measurable project objectives 3. Preliminary roles and responsibilities 4. High level requirements 5. High level risks 6. Summary milestones 7. Preapproved financial resources – budget 8. Key stakeholder list 9. Project approval requirements – Success criteria 10. Project exit criteria 11. Assigned project manager; role and authority 12. Name and authority of sponsor authorizing the project Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 81.

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4.1.3.2 Develop Project Charter Outputs Assumption Log

High level strategic assumptions and constraints

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOKÂŽ Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 81.

4.0 Project Integration Management Project Selection Methods Benefit Measurement

Constrained Optimization

(Comparative)

(Mathematical)

• Economic models • Murder board • Scoring models • Peer review

• • • •

Linear Programming Integer programming Multi-Objective programming Dynamic programming

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4.0 Project Integration Management Benefit Measurement Methods (Comparative) Economic Models • • • • •

Present Value (PV) Net Present Value (NPV) Internal Rate of Return (IRR) Payback Period Benefit Cost Ratio (BCR)

• • • • • •

Payback Period Analysis (PPA) Return on Investment (ROl) Economic Value Added (EVA) Depreciation Opportunity Cost Sunk Costs 12

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4.0 Project Integration Management Present Value – Net present value PV (value today) =

NPV = PV - Cost

FV n: year from the date of original investment r: annual discount rate FV: future value

***The higher the NPV or the PV, the better***

4.0 Project Integration Management Net Present Value (NPV) -- Exercise

A future value of $3000 investment 5 years from now, invested at 8% is $4700.

Would you recommend this project to the selection committee?

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15

4.0 Project Integration Management Internal Rate of Return (IRR)

IRR The project’s returns as an interest rate

***The higher the IRR, the better***

4.0 Project Integration Management Return On Investment (ROI)

• Rate of ROI = net income/invested Capital

***The higher the better***

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4.0 Project Integration Management Economic Value Add (EVA)

• EVA = net profit – (capital expenditures X cost of capital)

Your company invests 200,000 on project X. The net profit is 15,000 after the first year of operations. Your company could have invested the money at a rate of 5%. What is the EVA?

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4.0 Project Integration Management Depreciation

Lost value over time • Straight Line Depreciation • Accelerated Depreciation • Double Declining balance • Sum of years digits

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4.2 Develop Project Management Plan Knowledge Area: Integration Process Group: Planning

“Process of documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans into a project management plan.”

PMBOK® Guide 2017, Glossary

4.2 Develop Project Management Plan ITTOs

Exercise Fill out the ITTOs below and check your answers in the PMBOKÂŽ Guide 2017, pg. 82

Tools & Techniques

Inputs What do you need beforehand?

How is it done?

Outputs What are the results?

20

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4.2.1.1-4 Develop Project Management Plan Inputs

Inputs

1. Description of the scope, its boundaries, and the major deliverables.

1. Project charter (4.1.3.1) 2. Outputs from planning processes 3. EEFs 4. OPAs

2. How the project will be managed. (ch. 5-12) 3. Government regulations, industry standards, PM Information Systems, organizational structure and culture, personnel administration 4. Template, conformance measurement criteria, standardized guidelines, project closure guidelines, past project files

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOKÂŽ Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 83-84.

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4.2.2.1-2 Develop Project Management Plan T&T

Expert Judgment (4.1.2.1) • Develop technical and management details • Determine resources and skill levels needed • Tailoring the process to meet the project needs • Define the level of configuration management needed • Determine which documents will be subject to formal change control process Data Gathering (4.1.2.2) Brainstorming, checklists, focus groups, interviews

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 85.

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4.2.2.3-4 Develop Project Management Plan

Interpersonal and team skills • Conflict Management (9.5.2.1) • Facilitation (4.1.2.3) • Meeting management (10.2.2.6)

Meetings • Small projects • Large projects

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 86.

T&T

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4.2.3 Develop Project Management Plan

Outputs

Project Management Plan Project sub plans 1. Scope, cost, and schedule baselines 2. Scope management plan (5.1.3.1) 3. Requirements management plan (5.1.3.2) 4. Schedule management plan (6.1.3.1) 5. Cost management Plan (7.1.3.1) 6. Communication management plan

Other Components • Performance measurement baselines • Project life cycle • Configuration Management Plan • Change Management Plan

(10.1.3.1)

7.

8.

9.

10.

11.

Resource management plan (9.1.3.1) Quality management plan (8.1.3.1) Risk management plan (11.1.3.1) Procurement management Plan (12.1.3.1) Stakeholder engagement plan (13.2.3.1)

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 86-88.

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4.3 Direct and Manage Project Work Knowledge Area: Integration Process Group: Executing

“The process of performing the work defined in the project management plan to achieve the project’s objectives.”

PMBOK® Guide 2017, Glossary

26

4.3 Direct and Manage Project Work

ITTOs

Exercise Fill out the ITTOs below and check your answers in the PMBOK® Guide 2017, pg. 90

Tools & Techniques

Inputs What do you need beforehand?

How is it done?

Outputs What are the results?

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4.3.1.1-5 Direct and Manage Project Work Inputs

The project manager and the project team will direct the project performance by reviewing and directing the: • PM Plan (4.2.3.1) • Project documents; change log, lessons learned (4.4.3.1) , milestone list, project communications (10.2.3.1) , schedule (6.5.3.2) , requirements traceability matrix (5.2.3.2) , risk register (11.2.3.1) , risk report (11.2.3.2)

• Approved change requests (4.6.3.1) • EEFs • OPAs Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 92-94.

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4.3.2.1-3 Direct and Manage Project Work T&T

1. Expert judgment 2. PMIS 3. Meetings

Assures efficient communication with the project team; decision making, information exchange, and brainstorming.

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOKÂŽ Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 94-95.

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4.3.3.1-5 Direct and Manage Project Work Outputs

The deliverables are the ultimate outputs. Work performance information, issue log, change requests and corrective actions, updates to the PM Plan and other project documents, and OPAs.

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOKÂŽ Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 95-97.

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4.4 Manage Project Knowledge

Knowledge Area: Integration Process Group: Executing

“The process of using existing knowledge and creating new knowledge to achieve project’s objectives and contribute to organizational learning.”

PMBOK® Guide 2017, Glossary

31

4.4 Manage Project Knowledge ITTOs Exercise Fill out the ITTOs below and check your answers in the PMBOK® Guide 2017, pg. 90

Tools & Techniques

Inputs What do you need beforehand?

How is it done?

Outputs What are the results?

32

4.4.1.1-3 Manage Project Knowledge Inputs

• Project management plan (4.2.3.1) • Project documents • • • •

Lessons learned (4.4.3.1) Team assignment (9.3.3.1) Resource breakdown structure (9.2.3.3) Stakeholder register (13.1.3.1)

• Deliverables

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 100-101.

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4.4.1.4-5 Manage Project Knowledge Inputs

• EEFs • Culture • Geographic distribution of facilities and resources • Organization knowledge experts • Legal requirements/ regulatory constraints

• OPAs • • • •

Standards, policies Personnel administration Organizational communication requirements Knowledge/ information sharing procedures Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 101-102

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4.4.2.1-4 Manage Project Knowledge T&T • Expert judgment (4.1.2.1) • Knowledge management • • • • •

Networking Communities of practice Meetings Discussion forums Training…

• Information management • • • •

Methods for codifying explicit knowledge Lessons learned PMIS Library services

• Interpersonal/ team skills • • • • •

Active listening Facilitation Networking Leadership Political awareness

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 102-104.

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4.4.3.1-3 Manage Project Knowledge Outputs • Lessons learned register • Project management plan updates • OPAs updates

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 104-105.

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4.5 Monitor and Control Project Work Knowledge Area: Integration Process Group: Monitoring and Controlling

“Process of tracking, reviewing, and regulating the progress to meet the performance objectives as defined in the project management plan.”

PMBOK® Guide 2017, Glossary

37

4.5 Monitor and Control Project Work ITTOs Exercise Fill out the ITTOs below and check your answers in the PMBOK® Guide 2017, pg. 105

Tools & Techniques

Inputs What do you need beforehand?

How is it done?

Outputs What are the results?

38

4.5.1.1-2 Monitor and Control Project Work Inputs Inputs

1. Project management plan (4.2.3.1) 2. Project documents • Assumption log (4.1.3.2) • Basis of estimates (6.4.3.2) (7.2.3.2) • Lessons learned register (4.4.3.1) • Issue log (4.3.3.3) • Milestone list (6.2.3.3) • Quality reports (8.2.3.1) • Risk register (11.2.3.1) • Risk report (11.2.3.2) • Schedule forecasts (6.6.3.2) • Cost Forecasts (7.4.3.2) Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 107-108.

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4.5.1.3-6 Monitor/ Control Project Work Inputs Inputs 3. Work performance information; current status, accomplishments, forecasts, issues, scheduled activities 4. Agreements 5. EEFs; regulations, standards, PMIS, Stakeholder risk tolerances 6. OPAs; communication requirements, risk control procedures, issue/defect management procedures, lessons learned database

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOKÂŽ Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 109-110.

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4.5.2.1-4 Monitor and Control Project Work T&T

1. Experts help the project team interpret the information provided by the monitor and control processes.

2. Data Analysis: Potential outcomes‌What if?

1.

2.

3.

4.

5.

6.

Alternatives C/B EV Root cause Trend Variance

3. Decision making 4. Meetings Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOKÂŽ Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 110-111.

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4.5.3.1-4 Monitor and Control Project Work Outputs 1. Work performance reports 2. Change requests: Recommended corrective actions preventive actions , and defect repairs 3. PM Plan updates - Schedule, cost, quality, etc.

4. Other project documents updates – Schedule/ cost forecasts, lessons learned register, risk register, and issue log

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOKÂŽ Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 112-113.

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4.6 Perform Integrated Change Control Knowledge Area: Integration Process Group: Monitoring and Controlling “Process of reviewing all change requests, approving changes, and managing changes to the deliverables, organizational process assets, project documents, and project management plan.”

PMBOK® Guide 2017, Glossary

4.6 Perform Integrated Change Control ITTOs Exercise Fill out the ITTOs below and check your answers in the PMBOK® Guide 2017, pg. 113

Tools & Techniques

Inputs What do you need beforehand?

How is it done?

Outputs What are the results?

43

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4.5.1.1-6 Perform Integrated Change Control Inputs 1.

2.

3.

4.

Change control procedures from PM Plan Project documents Work performance reports Procedures for approving and issuing change authorizations for change requests (includes configuration control systems)

5. Process measurement database- PMIS from EEFs 6. Project files – scope, schedule, cost, diagrams, risk register, etc. from OPAs

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOKÂŽ Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page116-117.

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4.5 Perform Integrated Change Control Configuration Management System Documented procedures that describes the change processes.

• Configuration Identification • Configuration status accounting • Configuration verification and audit

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Project Configuration Management

(PCM)

Slide content adopted from PCM Standards by PMI, 2007

“PCM is the collective body of processes, activities, and methods used to manage certain items during the project life cycle.”

Overlap of Project & Product Domain Items Project Items •Schedule •Project Plan •Issue Logs •Risk Assessments •Status Reports

•CM Plan •Master Equipment List •Spare Parts List •Procurement Control •Modification Records •Accountable Documents

Application items •Maintenance records •Software Code •Technical Manuals •Procurement records •Drawings

Fig 2_1

Project Domain

Product Domain

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4.6.2.1-5 Perform Integrated Change Control T&T Expert judgment/ meetings/ Tools 1. Past project experiences of team members, PM, and coworkers 2.

3.

4.

5.

Change control tools ( manual/ automated) Data analysis Decision making Meetings In some organizations, a Change Control Board (CCB) will review, accept, or reject changes.

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOKÂŽ Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 118-120.

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4.6.3.1-3 Perform Integrated Change Control Outputs

1. Approved change requests - processes by the project manager or a designated team member 2. Updates to PM Plan 3. Project documents updates

Speed of evaluating needed changes is a time sensitive activity.

Approved changes are implemented in the Direct and Manage Project Execution process

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOKÂŽ Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 120.

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4.7 Close Project Knowledge Area: Integration Process Group: Closing

“Process of finalizing all activities across all of the process groups to formally close the project or phase.”

PMBOK® Guide 2017, Glossary

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4.6 Close Project ITTOs Exercise Fill out the ITTOs below and check your answers in the PMBOK® Guide 2017, pg. 121

Tools & Techniques

Inputs What do you need beforehand?

How is it done?

Outputs What are the results?

51

4.7.1.1-8 Close Project Inputs 1. Project Charter 2. Project management plan 3. Project documents 4. Accepted deliverables 5. Business documents 6. Agreements 7. Procurement documentation 8. Organizational process assets Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOKÂŽ Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 124-126.

4.7.2.1-3 Close Project T&T

The team will have to rely on collective experience to determine the successful completion of the project by using various analytical techniques and meetings.

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOKÂŽ Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 126-127.

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4.7.3.1-4 Close Project Outputs Documents updates/ Deliverables/ Final report/ Updates to OPAs • • • •

Final products or service including any ongoing warranty period Project files; plan, scope, cost, and project calendar, change management, etc.

Formal documentation -- project results are verified, signoff is received, and payments are made Lessons learned are transferred to the lessons learned knowledge base

Project Management Institute , A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, 2017 Project Management Institute, Inc. All rights reserved. Page 127-128.

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4.0 Project Integration Management Responsibilities of a Project Sponsor • Major participation in the sales effort and contract negotiations • Handles major contractual matters • Establishes and maintains top-level client relationships • Assists the project manager in getting the project underway (planning, procedures, staffing, etc.)

• Participates in Project Steering Committee

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4.0 Project Integration Management Responsibilities of a Project Manager • Produce the end product with the available resources and within the constraints of time, cost and performance/technology • Meet contractual profit objectives • Make all required decisions whether they be for alternatives or termination • Responsible for the success or failure of the project • Communicate effectively • Resolve conflicts

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4.0 Project Integration Management Summary Characteristics of effective integration: • Overlapping processes • Effective change control and communications • Reduced development time and cost • Early and on-going involvement of relevant stakeholders • Early visibility of results • Early problem identification and resolution • Use all relevant expertise at earliest meaningful time

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4.0 Project Integration Management Summary (cont.)

• Project Management • Project Sponsor • Project Manager

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4.0 Project Integration Management Notes • Write down your personal goals to enhance your project time management knowledge and skills.

• Write down any newly acquired knowledge that you might be able to apply in your workplace.

• Identify additional resources.

• Read • PMBOK® Guide 2017, Ch.. 4 (Project Integration Management) • Mulcahy, Ch.. 4 (Integration Management) • Kerzner, Ch.. 6-10 (Management of Your Time, Conflicts, Special Topics, The variables for Success, Working With Executives) (optional)

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Tests • Rita’s practice exam – Ch.. 4