Integration Management (Execution)

The goal of this section is to provide a basic understanding of program integration and execution. Ten key integration elements are discussed here, including integration management itself, which is required throughout the entire program (see Fig. 2.3.1). Integration management (IM) integrates all the knowledge areas in a program and “ties the plan together” into one seamless activity.

Integration management

1. 1. identifies
2. 2. defines
3. 3. combines
4. 4. unifies
5. 5. coordinates

the various processes and execution activities within the program.

IM acts as the “glue” that keeps a program running cohesively. It synchronizes the program management functional activities and coordinates them accordingly from “womb to tomb.” In order to have effective IM, good communication is a must. The team’s mission, expectations, and tasks must be well documented. Management needs to ensure lines of communication are always open between stakeholders.

It is crucial to generate and utilize clear and concise integration tools, including:

1. 1. Program Organizational Charter
2. 2. Program Scope Statement of Work
3. 3. Program Management Plan
4. 4. Program Work Breakdown Structure (WBS).

Fig. 2.3.2 shows why each project must be managed from start to finish.

IM is required throughout the entire program, as Fig. 2.3.3 illustrates. The remaining key integration elements are described in the following subsections.

Program Scope Management

Program scope management is defined as those processes required to ensure that the program includes all the work required, and only the work required, to complete the program successfully. The program Scope Management Plan documents how the program scope is defined, documented, verified, managed, and controlled by the program management team.

Program scope management is needed to define the parameters of success by:

1. 1. Defining and controlling what work is and is not included in the program for delivery of a product, service, or result with the specified features and functions;
2. 2. Creating a program scope document that all stakeholders agree on and having a change management plan if there are any changes or modifications to the scope;
3. 3. Preventing scope creep.

On all programs, problems that affect the scope can occur and should be prevented. Some of the major problems are:

1. 1. Ambiguity in scope leads to confusion and unnecessary work.
2. 2. Incomplete scope leads to schedule slips and hence to cost overruns.
3. 3. Transient scope leads to what is known as “scope creep,” which is the primary cause of late deliveries and potentially “never-ending” programs.
4. 4. Noncollaborative scope, where all concerned parties do not collaborate and agree, leads to misinterpretations in requirements and design.

Time Management

Time management refers to the processes to accomplish timely completion of an activity. The processes are as follows:

1. 1. Activity definition
2. 2. Activity sequencing
3. 3. Activity resource estimating
4. 4. Activity duration estimating
5. 5. Schedule development
6. 6. Schedule control

Meeting the program schedule and staying within budget, reducing the impact on the overall process when changes occur, eliminating unnecessary costs, determining resource availability, and achieving a competitive advantage are all important reasons for IM. To effectively manage time, we need to do the following:

1. 1. Determine the program requirements
2. 2. Determine the basic resources
3. 3. Develop the schedule
4. 4. Reference past programs and lessons learned
5. 5. Make use of scheduling software

Time management is needed during postprogram scope development for managing program resources, time, money, and scope. Checking program status and performance and managing changes required by customers to the goods and/or services are also important factors in time management.

Cost Management

Good cost management means that the program schedule is under control. To manage costs effectively, the following activities need to be carried out:

1. 1. Planned activity and cost vs actual;
2. 2. Incorporate scope and schedule constraints and risk factors;
3. 3. Program and business management monitors overruns and extreme underruns in cost and schedule.

Cost and schedule control are required because of the following factors:

1. 1. Need for stakeholder approval and confidence;
2. 2. If fixed price contract, contractor assumes all extra cost;
3. 3. It is important that program manager works with entire team to develop reasonable plan;
4. 4. Tracking cost and schedule against the plan must be consistent to attain accurate program delivery.

Managing cost and schedule for a large program can be a major challenge. Some cost and scheduling tools and formulas that the team may consider for use are:

1. (a) Earned Value Management System (EVMS: see Fig. 2.3.4)
   FIG. 2.3.4 EVMS example.
2. (b) EVMS has various formulas to track performance
3. (c) Key performance indices:
   1. a. Cost Performance Index (CPI)
   2. b. Schedule Performance Index (SPI)
   3. c. Schedule Variance (SV)
   4. d. Cost Variance (CV)
   5. e. Estimate at Completion (EAC)
4. (d) Variance at Completion (VAC)

Important CPI and SPI values are:

1. (a) CPI/SPI < 0.8 Program not performing at cost or schedule
2. (b) 0.8 < CPI/SPI < 1.0 Program performing at cost or schedule
3. (c) CPI/SPI > 1.0 Program outperforming cost or schedule

Important CV and SV values are:

1. (d) CV/SV > 0 Program under the planned budget
2. (e) CV/SV < 0 Program over the planned budget

EAC estimates the final program cost, and VAC estimates the amount of program under- and overruns.

Program cost and schedule updates should be conducted frequently. Weekly EV data are analyzed for concerns, which are then resolved in regular “tag-up” meetings. Monthly EV presentations to the customer are recommended. Other reporting, upon major milestones or on a quarterly basis, for example, is scheduled as appropriate.

Quality Management

Quality management is needed to maintain customer satisfaction, achieve cost savings associated with “prevention over inspection,” support management accountability, and provide continuous improvement. Fig. 2.3.5 shows the major elements of quality management.

In order to manage quality effectively, the team must have a quality plan, perform quality assurance, and perform quality control. The inputs for quality planning are enterprise environment factors, organizational process assets, project scope statement, and project management plan. The tools and techniques are cost-benefit analysis, benchmarking, design of experiments, cost of quality, and additional quality planning tools. The outputs are the quality management plan, quality metrics, quality checklists, process improvement plan, quality baseline, and PM plan (updates).

Human Resources Management

The functions of human resources management (HRM) are human resource planning, program team acquisition, and program team management. HRM is needed to optimize the usefulness of team members by training, helping, and anticipating the necessary skills of employees over the long term. HRM provides company vision, mission, and goals. Other HRM functions are as follows:

1. 1. Identifies program team roles and responsibilities;
2. 2. Establishes metrics to evaluate the team members’ performance;
3. 3. Sets the example for work ethics, and rewards those worthy of being emulated by others;
4. 4. Removes obstacles and challenges the team to keep the pace of work in progress.

HRM is especially crucial when starting a new program, trying to balance a workload effectively between programs, or improvement in communication is needed.

Communication Management

Communication management (CM) includes communication planning, information distribution, performance reporting, and managing stakeholders and it is needed for the program scope, program risk, program cost, and program team. CM is carried out by the program team through meetings and reports. The start of a new program, during the program, and program closure all require CM. Formal and informal communication management processes are described in Fig. 2.3.6.

2.3.7 Risk Management

The job of risk management (RM) is to identify conditions that cause loss of assets and to create strategies to eliminate or mitigate the situation. Risks come from behaviors, policies, and events. Risk management is essential because it identifies key success or failure factors. Risk is an inherent element or threat to everyday business and it can be minimized by proactive monitoring. Fig. 2.3.7 describes the RM process.

Risk management must be acted on at the beginning of a program and throughout the program’s lifecycle. Any risk identified during the program will need to be managed as part of the RM process. Without the RM process, the scope objective may be compromised.

Figs. 2.3.8 and 2.3.9 show the levels of risk management.

The describes risk management in more detail.

Procurement Management

The purpose of procurement management is to acquire products and/or services from a vendor or supplier, administer contractual obligations placed on the program, change and control contracts throughout the program lifecycle, and administer contracts between partners and suppliers.

Some important reasons why procurement management is needed are:

1. 1. To better understand the buyer’s ability to procure the product and/or service;
2. 2. To better understand the supplier’s ability to meet specific requirements within allotted time and budget;
3. 3. To document contractual requirements;
4. 4. To identify potential suppliers;
5. 5. To obtain quotations and proposals from suppliers.

Fig. 2.3.10 describes the project procurement model. This model has five steps: initiating processes, planning processes, executing processes, monitoring and controlling processes, and closing processes.

Formulas

Various formulas are required, through use of systematic tools, to analyze program performances; they include measurement tools, decision-making tools, and evaluation tools. Program team members need formulas for planning and forecasting, cost management, time management, and scope management. Program management needs to ascertain basic acronym values and plug them into formulas, integrate formula results into decisions, and then understand the properties of the formula results. Table 2.3.1 provides some of the formulas that are required throughout the program lifecycle.

Table 2.3.1

Normally, program management formulas are used in the following situations:

1. 1. When milestones are achieved;
2. 2. Prior to program meetings;
3. 3. Periodically;
4. 4. When stakeholders need program status data;
5. 5. When variances indicate need for adjustment;
6. 6. At program closure.