Preface xix
1 Overview 1
1.0 Introduction 1
1.1 Understanding Project Management 2
1.2 Defining Project Success 6
1.3 Trade-Offs and Competing Constraints 7
1.4 The Entry-Level Project Manager 9
1.5 The Talent Triangle 10
1.6 Technology-Based Projects 10
1.7 The Project Manager-Line Manager Interface 11
1.8 Defining the Project Manager's Role 13
1.9 Defining the Functional Manager's Role 15
1.10 Defining the Functional Employee's Role 17
1.11 Defining the Executive's Role 17
1.12 Working with Executives 17
1.13 Committee Sponsorship/Governance 19
1.14 The Project Manager as the Planning Agent 20
1.15 Project Champions 21
1.16 Project-Driven versus Non-Project-Driven Organizations 22
1.17 Marketing in the Project-Driven Organization 24
1.18 Classification of Projects 25
1.19 Location of the Project Manager 26
1.20 Differing Views of Project Management 27
1.21 Public-Sector Project Management 28
1.22 International Project Management 31
1.23 Concurrent Engineering: A Project Management Approach 32
1.24 Added Value 32
1.25 Studying Tips for the PMI® Project Management Certification Exam 33
Problems 36
Case Study
Williams Machine Tool Company 37
2 Project Management Growth: Concepts and Definitions 39
2.0 Introduction 39
2.1 The Evolution of Project Management: 1945-2017 39
2.2 Resistance to Change 43
2.3 Systems, Programs, and Projects: A Definition 45
2.4 Product versus Project Management: A Definition 47
2.5 Maturity and Excellence: A Definition 49
2.6 Informal Project Management: A Definition 50
2.7 The Many Faces of Success 52
2.8 The Many Faces of Failure 54
2.9 Causes of Project Failure 57
2.10 Degrees of Success and Failure 59
2.11 The Stage-Gate Process 60
2.12 Project Life Cycles 61
2.13 Gate Review Meetings (Project Closure) 65
2.14 Engagement Project Management 66
2.15 Project Management Methodologies: A Definition 67
2.16 From Enterprise Project Management Methodologies to Frameworks 69
2.17 Methodologies Can Fail 70
2.18 Organizational Change Management and Corporate Cultures 71
2.19 Benefits Harvesting and Cultural Change 76
2.20 Agile and Adaptive Project Management Cultures 77
2.21 Project Management Intellectual Property 77
2.22 Systems Thinking 79
2.23 Studying Tips for the PMI® Project Management Certification Exam 82
Problems 85
Case Study
Creating a Methodology 86
3 Organizational Structures 89
3.0 Introduction 89
3.1 Organizational Work Flow 90
3.2 Traditional (Classical) Organization 91
3.3 Pure Product (Projectized) Organization 93
3.4 Matrix Organizational Form 95
3.5 Modification of Matrix Structures 99
3.6 The Strong, Weak, or Balanced Matrix 101
3.7 Project Management Offices 101
3.8 Selecting the Organizational Form 103
3.9 Strategic Business Unit (SBU) Project Management 106
3.10 Transitional Management 107
3.11 Seven Fallacies that Delay Project Management Maturity 109
3.12 Studying Tips for the PMI® Project Management Certification Exam 111
Problems 113
4 Organizing and Staffing the Project Office and Team 115
4.0 Introduction 115
4.1 The Staffing Environment 116
4.2 Selecting the Project Manager: an Executive Decision 117
4.3 Skill Requirements for Project and Program Managers 121
4.4 Special Cases in Project Manager Selection 125
4.5 Today's Project Managers 126
4.6 Duties and Job Descriptions 127
4.7 The Organizational Staffing Process 128
4.8 The Project Office 131
4.9 The Functional Team 133
4.10 The Project Organizational Chart 133
4.11 Selecting the Project Management Implementation Team 136
4.12 Mistakes Made by Inexperienced Project Managers 139
4.13 Studying Tips for the PMI® Project Management Certification Exam 140
Problems 142
5 Management Functions 145
5.0 Introduction 145
5.1 Controlling 146
5.2 Directing 146
5.3 Project Authority 148
5.4 Interpersonal Influences 152
5.5 Barriers to Project Team Development 154
5.6 Suggestions for Handling the Newly Formed Team 157
5.7 Team Building as an Ongoing Process 158
5.8 Leadership in a Project Environment 159
5.9 Value-Based Project Leadership 160
5.10 Transformational Project Management Leadership 163
5.11 Organizational Impact 163
5.12 Employee-Manager Problems 165
5.13 General Management Pitfalls 166
5.14 Time Management Pitfalls 167
5.15 Management Policies and Procedures 171
5.16 Human Behavior Education 171
5.17 Studying Tips for the PMI® Project Management Certification Exam 174
Problems 177
Case Studies
The Trophy Project 178
McRoy Aerospace 180
The Poor Worker 182
The Prima Donna 182
The Reluctant Workers 184
Leadership Effectiveness (A) 185
Leadership Effectiveness (B) 189
Motivational Questionnaire 195
6 Communications Management 203
6.0 Introduction 203
6.1 Modeling the Communications Environment 203
6.2 The Project Manager as a Communicator 208
6.3 Project Review Meetings 212
6.4 Project Management Bottlenecks 212
6.5 Active Listening 213
6.6 Communication Traps 214
6.7 Project Problem Solving 215
6.8 Brainstorming 223
6.9 Predicting the Outcome of a Decision 224
6.10 Facilitation 226
6.11 Studying Tips for the PMI® Project Management Certification Exam 228
Problems 230
Case Studies
Communication Failures 231
The Team Meeting 234
7 Conflicts 237
7.0 Introduction 237
7.1 The Conflict Environment 238
7.2 Types of Conflicts 239
7.3 Conflict Resolution 240
7.4 The Management of Conflicts 241
7.5 Conflict Resolution Modes 242
7.6 Understanding Superior, Subordinate, and Functional Conflicts 244
7.7 Studying Tips for the PMI® Project Management Certification Exam 246
Problems 248
Case Studies
Facilities Scheduling at Mayer Manufacturing 248
Telestar International 250
Handling Conflict in Project Management 251
8 Special Topics 257
8.0 Introduction 257
8.1 Performance Measurement 257
8.2 Financial Compensation and Rewards 262
8.3 Effective Project Management in the Small Business Organization 270
8.4 Mega Projects 271
8.5 Morality, Ethics, and the Corporate Culture 273
8.6 Professional Responsibilities 275
8.7 Internal and External Partnerships 278
8.8 Training and Education 279
8.9 Integrated Product/Project Teams 281
8.10 Virtual Project Teams 283
8.11 Managing Innovation Projects 284
8.12 Agile Project Management 287
8.13 Studying Tips for the PMI® Project Management Certification Exam 289
Problems 295
Case Study
Is It Fraud? 295
9 The Variables for Success 299
9.0 Introduction 299
9.1 Predicting Project Success 299
9.2 Project Management Effectiveness 302
9.3 Expectations 303
9.4 Lessons Learned 305
9.5 Understanding Best Practices 306
9.6 Studying Tips for the PMI® Project Management Certification Exam 312
Problems 313
Case Study
Radiance International 313
10 Working with Executives 317
10.0 Introduction 317
10.1 The Project Sponsor 317
10.2 Handling Disagreements with the Sponsor 327
10.3 The Collective Belief 327
10.4 The Exit Champion 328
10.5 The In-House Representatives 329
10.6 Stakeholder Relations Management 329
10.7 Project Portfolio Management 335
10.8 Politics 337
10.9 Studying Tips for the PMI® Project Management Certification Exam 338
Problems 339
Case Studies
The Prioritization of Projects 340
The Irresponsible Sponsors 341
Selling Executives on Project Management 342
11 Planning 345
11.0 Introduction 345
11.1 Business Case 346
11.2 Validating the Assumptions 348
11.3 Validating the Objectives 351
11.4 General Planning 352
11.5 Life-Cycle Phases 355
11.6 Life-Cycle Milestones 356
11.7 Kickoff Meetings 358
11.8 Understanding Participants' Roles 360
11.9 Establishing Project Objectives 360
11.10 The Statement of Work 361
11.11 Project Specifications 363
11.12 Data Item Milestone Schedules 364
11.13 Work Breakdown Structure 365
11.14 Wbs Decomposition Problems 370
11.15 Work Breakdown Structure Dictionary 372
11.16 Project Selection 373
11.17 The Role of the Executive in Planning 377
11.18 Management Cost and Control System 378
11.19 Work Planning Authorization 379
11.20 Why Do Plans Fail? 380
11.21 Stopping Projects 381
11.22 Handling Project Phaseouts and Transfers 381
11.23 Detailed Schedules and Charts 383
11.24 Master Production Scheduling 385
11.25 Project Plan 386
11.26 The Project Charter 391
11.27 Project Baselines 392
11.28 Verification and Validation 395
11.29 Management Control 396
11.30 Configuration Management 397
11.31 Enterprise Project Management Methodologies 398
11.32 Project Audits 399
11.33 Studying Tips for the PMI® Project Management Certification Exam 400
Problems 404
12 Network Scheduling Techniques 409
12.0 Introduction 409
12.1 Network Fundamentals 411
12.2 Graphical Evaluation and Review Technique (GERT) 416
12.3 Dependencies 417
12.4 Slack Time 417
12.5 Network Replanning 423
12.6 Estimating Activity Time 428
12.7 Estimating Total Project Time 429
12.8 Total PERT /CPM Planning 430
12.9 Crash Times 431
12.10 PERT /CPM Problem Areas 436
12.11 Alternative PERT /CPM Models 436
12.12 Precedence Networks 437
12.13 Lag 440
12.14 Scheduling Problems 441
12.15 The Myths of Schedule Compression 441
12.16 Project Management Software 442
12.17 Studying Tips for the PMI® Project Management Certification Exam 445
Problems 448
Case Study
The Invisible Sponsor 451
13 Pricing and Estimating 453
13.0 Introduction 453
13.1 Global Pricing Strategies 453
13.2 Types of Estimates 455
13.3 Pricing Process 458
13.4 Organizational Input Requirements 460
13.5 Labor Distributions 462
13.6 Overhead Rates 463
13.7 Materials/Support Costs 465
13.8 Pricing Out the Work 466
13.9 Smoothing Out Department Man-Hours 469
13.10 The Pricing Review Procedure 471
13.11 Systems Pricing 472
13.12 Developing the Supporting/Backup Costs 474
13.13 The Low-Bidder Dilemma 474
13.14 Special Problems 477
13.15 Estimating Pitfalls 478
13.16 Estimating High-Risk Projects 479
13.17 Project Risks 480
13.18 The Disaster of Applying the 10 Percent Solution to Project Estimates 483
13.19 Life-Cycle Costing (LCC) 484
13.20 Logistics Support 486
13.21 Economic Project Selection Criteria: Capital Budgeting 488
13.22 Payback Period 488
13.23 The Time Value of Money and Discounted Cash Flow (DCF) 489
13.24 Net Present Value (NPV) 490
13.25 Internal Rate of Return (IRR) 490
13.26 Comparing IRR, NPV, and Payback 491
13.27 Risk Analysis 492
13.28 Capital Rationing 492
13.29 Project Financing 494
13.30 Studying Tips for the PMI® Project Management Certification Exam 496
Problems 498
Case Study
The Estimating Problem 499
14 Cos t Control 501
14.0 Introduction 501
14.1 Understanding Control 503
14.2 The Operating Cycle 506
14.3 Cost Account Codes 506
14.4 Budgets 511
14.5 The Earned Value Measurement System (EVMS) 512
14.6 Variance and Earned Value 513
14.7 The Cost Baseline 529
14.8 Justifying the Costs 531
14.9 The Cost Overrun Dilemma 532
14.10 Recording Material Costs Using Earned Value Measurement 534
14.11 Material Variances: Price and Usage 535
14.12 Summary Variances 536
14.13 Status Reporting 537
14.14 Cost Control Problems 537
14.15 Studying Tips for the PMI® Project Management Certification Exam 539
Problems 542
Case Studies
The Bathtub Period 544
Franklin Electronics 545
15 Metrics 549
15.0 Introduction 549
15.1 Project Management Information Systems 549
15.2 Enterprise Resource Planning 550
15.3 Project Metrics 550
15.4 Key Performance Indicators (KPIS) 555
15.5 Value-Based Metrics 561
15.6 Dashboards and Scorecards 566
15.7 Business Intelligence 569
15.8 Studying Tips for the PMI® Project Management Certification Exam 570
Problems 573
16 Trade-off Analysis in a Project Environment 575
16.0 Introduction 575
16.1 Methodology for Trade-Off Analysis 578
16.2 Contracts: Their Influence on Projects 593
16.3 Industry Trade-Off Preferences 594
16.4 Project Manager's Control of Trade-Offs 597
16.5 Studying Tips for the PMI® Project Management Certification Exam 597
Problems 598
17 Risk Management 599
17.0 Introduction 599
17.1 Definition of Risk 601
17.2 Tolerance for Risk 603
17.3 Definition of Risk Management 604
17.4 Certainty, Risk, and Uncertainty 604
17.5 Risk Management Process 610
17.6 Plan Risk Management 611
17.7 Risk Identification 612
17.8 Risk Analysis 613
17.9 Qualitative Risk Analysis 615
17.10 Quantitative Risk Analysis 616
17.11 Plan Risk Response 619
17.12 Monitor and Control Risks 621
17.13 Some Implementation Considerations 622
17.14 The Use of Lessons Learned 623
17.15 Dependencies between Risks 624
17.16 The Impact of Risk Handling Measures 628
17.17 Risk and Concurrent Engineering 631
17.18 Studying Tips for the PMI® Project Management Certification Exam 633
Problems 637
Case Studies
Teloxy Engineering (A) 640
Teloxy Engineering (B) 640
The Risk Management Department 641
18 Learning Curves 643
18.0 Introduction 643
18.1 General Theory 643
18.2 The Learning Curve Concept 644
18.3 Graphic Representation 646
18.4 Key Words Associated with Learning Curves 647
18.5 The Cumulative Average Curve 648
18.6 Sources of Experience 649
18.7 Developing Slope Measures 653
18.8 Unit Costs and Use of Midpoints 654
18.9 Selection of Learning Curves 654
18.10 Follow-On Orders 655
18.11 Manufacturing Breaks 656
18.12 Learning Curve Limitations 656
18.13 Competitive Weapon 657
18.14 Studying Tips for the PMI® Project Management Certification Exam 658
Problems 659
19 Contract Management 661
19.0 Introduction 661
19.1 Procurement 662
19.2 Plan Procurements 664
19.3 Conducting the Procurements 667
19.4 Conduct Procurements: Request Seller Responses 668
19.5 Conduct Procurements: Select Sellers 669
19.6 Types of Contracts 673
19.7 Incentive Contracts 678
19.8 Contract Type versus Risk 680
19.9 Contract Administration 680
19.10 Contract Closure 683
19.11 Using a Checklist 684
19.12 Proposal-Contractual Interaction 684
19.13 Studying Tips for the PMI® Project Management Certification Exam 686
Problems 691
Case Studies
To Bid or Not to Bid 692
The Management Reserve 693
20 Quality Management 697
20.0 Introduction 697
20.1 Definition of Quality 698
20.2 The Quality Movement 699
20.2 Quality Management Concepts 703
20.3 The Cost of Quality 707
20.4 The Seven Quality Control Tools 709
20.5 Acceptance Sampling 721
20.6 Implementing Six Sigma 722
20.7 Quality Leadership 723
20.8 Responsibility for Quality 724
20.9 Quality Circles 725
20.10 Total Quality Management (TQM) 725
20.11 Studying Tips for the PMI® Project Management Certification Exam 728
Problems 731
21 Mod ern Developments in Project Management 733
21.0 Introduction 733
21.1 The Project Management Maturity Model (PMMM) 733
21.2 Developing Effective Procedural Documentation 737
21.3 Project Management Methodologies 741
21.4 Continuous Improvement 742
21.5 Capacity Planning 743
21.6 Competency Models 745
21.7 Managing Multiple Projects 747
21.8 The Business of Scope Changes 748
21.9 End-of-Phase Review Meetings 752
Case Study
Honicker Corporation 753
Kemko Manufacturing 755
Appendix A: Solution to Leadership Exercise 759
Appendix B: Solutions to the Project Management Conflict Exercise 765
Appendix C: Dorale Products Case Studies 771
Appendix D: Solutions to the Dorale Products Case Studies 783
Appendix E: Alignment of the PMBOK® Guide to the Text 789
Index 795
