Index
A
acceptance testing, 218
activity compression, 224–226
Activity on Arrow Technique (AOA), 141–143
Activity on Node Technique (AON), 141–144
activity sequencing, 218
ADM. See Arrow Diagramming Method
administrative unit, RBS, 71
allowance, 180–181
ambiguity, avoiding, 35–36
analogous estimating
developing, 122–123
modified three-quarters rule, 130
Monte Carlo random number generation tool, 125
most likely time, 126
optimistic time, 126
order of magnitude, 121–122
PERT technique, 125
pessimistic time, 126
range estimating, 124–126
ratio estimating, 123–124
square-root rule, 128, 132–133
three-quarters rule, 127–131
triple point estimating, 125
analysis cost, 120
AOA. See Activity on Arrow Technique
AON. See Activity on Node Technique
appropriation cost estimate, 115
Arrow Diagramming Method (ADM), 141–143
Association for the Advancement of Cost Engineering, 115
B
baseline, 3
bonus for early delivery, 173
bonus for underrun, 173
bottom-up estimate, 5, 101, 109–113, 116, 117
budget. See project budget
Budget at Completion, 202
C
capacity, 108
capital cost estimate, 115
cash flow constraints, 224
category, of resource, 111
activity compression, 224–226
activity sequencing, 218
board, 209–210
cash flow constraints, 224
change log, 210
change request form, 211
client needs, 213–214
concurrent engineering, 219
configuration board, 210
contingency buffers, 212
cost-duration relationship, 223
cost estimate, 217
cost of errors, 221
cost-schedule management, 207–208
crash point, 218
early estimates, 207
evolution in design philosophy or technology, 213–215
fast tracking, 219
feed forward, 216–217
implementation errors, 215
midstream project change, 217
optimum duration, 224–225
project life-cycle costs, 226–228
project phases, 220
rapid application development, 219
reasons for change, 213–216
resource shortages, 224
risk, 228–230
scope decrease, 221–222
simple forecasting, 217
simple schedule network forecasting, 216
site conditions and environmental attributes, 213–214
team size increase, 224
tools, 210
triple constraints, 208–209
charge code of account, RBS, 71
clarity of requirements, 108
client liaison, 209
client needs, 213–214
client technical personnel, 209
collaboration, 243
communities of practice (CoP), 238–239
comparing projects, 16
competitive advantage, 231
conceptual cost estimate, 115
concurrent engineering, 219
configuration board, 210
construction, 218
contingency, 181–182, 212, 222, 229
contracting. See external projects
contract officer, 209
contract process, 30
contracts, 168–173
corporate investment strategies, 10
cost-duration relationship, 223
cost estimating titles, 115
cost of errors, 221
cost overrun. See overruns
Cost Performance Index, 202
cost plus, 170–173
cost-schedule management, 207–208
Cost Variance, 202
CPM. See Critical Path Method
crash point, 218
creativity-based tasks, 198
credential, RBS, 71
crew size, 119
Critical Path Method (CPM), 141–143
D
database size, 120
data capture forms, 191
data capture projects, 194
data collection and reporting systems, 193
definitive cost estimate, 115
delivery, 218
delivery date, 9
design, errors in, 106
design cost, 119
design process, 30
desired floor space, 119
detailed design, 218
E
earliest finish (EF), 146
earliest start (ES), 146
early estimates, 101–109
earned value, 102, 109, 197–202
EF. See earliest finish
employee skills, 243
environmental characteristics, 108
equipment cost, 119
equipment type, 119
error rate, 120
error types, 106
ES. See earliest start
Estimate at Completion, 202
estimates. See also analogous estimating
changes, 105
conceptual, 102
correcting, 111
cost estimating titles, 115
cost overrun, 114
data types, 107–108
early, 101–109
earned value calculations, 102
earned value method, 109
ease in changing scope, 104
elemental, 110–111
errors, 106
expert judgment, 135–136
historical data, 102, 107, 114
knowledge of details, 103
level of effort, 105
naming conventions, 114
new requirements, 105
normalization, 136–137
optimum project plan, 112
overruns, 108
preliminary, 106
project manager experience, 102–103, 114
techniques, 107
time, 136
total cost, 110
uncertainties and risks, 104
worker hours, 112
Estimate to Complete, 202
evolution in design philosophy or technology, 213–215
expert judgment, 135–136
exterior material, 119
external and usable size, 108
external projects
advantages and disadvantages, 163–164
allowance, 180–181
contingency, 181–182
contracts, 168–173
cost plus, 170–173
direct costs, 179
fixed price, 169–171
focused design specifications, 166
functional specifications, 166
generic performance specifications, 166
importance of, 13
indirect costs, 179–180
lump sum, 169–171
modifiers, 172–173
overhead, 180
product specifications, 166
profit margin, 177
project audit, 182–184
project costs, 178–182
project termination types, 184
response to specifications, 173–176
schedule termination, 184
scope creep, 168
specifications, 164–168
time and material, 170–172
unit price, 171–172
F
failed projects, 4
fast tracking, 219
feasibility cost estimate, 115
final cost estimate, 115
financial characteristics, quantitative organizational indices, 14
finish-finish relationship (FF), 144
fixed price contract, 169–171
focused design specifications, 166
frame material, 119
functional specifications, 166
function points, 120
functions, 233
G
generic performance specifications, 166
goals, 233
ground conditions, 119
guaranteed maximum, 173
H
hardware, 31
hardware specifications, 5–6
historical data, 102, 107, 114
I
implementation, 218
implementation cost, 120
implementation errors, 106, 215
industry type, 108
information versus knowledge, 232
intensity, of resource, 111
intermediate milestones, 9
knowledge, 234–235
knowledge management (KM)
change, 235
communication, 233–234
communities of practice, 238–239
competitive advantage, 231
functions, 233
goals, 233
importance of, 231
information versus knowledge, 232
knowledge, 234–235
learning, 236–237
practice, 237–238
process, 235
project management and, 232–233, 239–243
structure, 234
technology, 234
L
labor skills, 120
latest finish (LF), 146–147
latest start (LS), 146–147
learning curve, 205
level of effort, 105
LF. See latest finish
life-cycle cost analysis, 226–228
LS. See latest start
lump sum, 169–171
M
manpower skill, 108
metrics, 12
midstream project change, 217
modified three-quarters rule, 130
modifiers, 172–173
modular estimating, 107, 117–119
Monte Carlo random number generation tool, 125
most likely time, 126
N
naming conventions, 114
new requirements, 105
new technologies, 108
no fee after estimated date and cost, 173
non-measurable activities, 199
normalization, 136–137
novel materials, 108
number of queries, 120
O
OBS. See organizational breakdown structure
operating system features, 108
optimistic time, 126
optimum duration, 224–225
optimum project plan, 112
order of magnitude, 102, 114, 121–122
order of magnitude cost estimate, 115
organizational breakdown structure (OBS), 20
organizational priorities, 13
outsourcing. See external projects
overall weight, 108
overhead, 180
overtime, 222
P
parametric estimating, 107, 117–121
penalty for late delivery, 173
penalty for overrun, 173
PERT. See Program Evaluation and Review Technique
pessimistic time, 126
physical defects in deliverables, 228–229
physical location, RBS, 71
plan, monitoring progressri, 191–195
planning boards, 3
PMO. See project management office
position title, RBS, 72
practice, 237–238
Precedence Diagramming Method, 141–144
preliminary cost estimate, 115
preliminary design, 218
process, 235
product specifications, 166
profit margin, 177
Program Evaluation and Review Technique (PERT), 125, 141–144
progress meetings, 191
progress monitoring
baseline, 3
creativity-based tasks, 198
data capture projects, 194
data collection and reporting systems, 193
earned value, 197–202
indices, 195–196
learning curve, 205
non-measurable activities, 199
plan, 191–195
productivity, 202–205
project management consistent procedures, 190
project management operational tools, 191
project management principles, 190
project plans, 192
project stakeholders, 192
ratios, 202
raw data, 196
report distribution list, 195
system, 188–189
tools, 191
vision, 192
project attributes, 13
project audit, 182–184
project business case, 10–11
project closeout, 30
project complexity, 120
project costs, 178–182
project evaluation process, 12
project initiation, 11–16
project life-cycle costs, 226–228
project location, 108
project management, 9, 190, 232–233, 239–243
Project Management Institute, 115
project management office (PMO), 182, 189
project management operational tools, 191
project management principles, 190
project manager, 209
project manager experience, 102–103, 114
project monitoring, 30
project objectives, 5
project personnel, 209
project phases, 220
project planning, definition, 1
project scope statement, 5
project selection model, 15
project selection process, 12–14
project stakeholders, 192
project team, 9
project termination types, 184
project type, 119
prototype development, 218
purchasing, 30
Q
quality, 8
quantitative organizational indices, 14
R
range estimating, 107, 124–126
rapid application development, 219
ratio estimating, 107, 123–124
ratios, 202
raw data, 196
RBS. See resource breakdown structure
reduced fee for being late or over budget, 173
reliability, 120
report distribution list, 195
requirement analysis, 218
requirements, 5
requirements document, 6
requirement statement, 218
resource availability, 108
resource breakdown structure (RBS)
bank data conversion software project example, 90–92
bottom-up estimating, 109–113
branch network restructuring project example, 95–97
compared to WBS, 20
credential-discipline basis, 72
developing, 66–67
division bases, 67–71
equipment cost example, 78
estimates, 77–78
fees and licenses, 70
hardware design project example, 85–86
health services project example, 87–89
home building project example, 83–84
industrial construction project example, 98–99
industrial system development example, 74
installed equipment, 69
levels, 66
materials, 69
position title basis, 72
rate, 76–77
resource, 73–76
resource-constrained basis, 73
resource leveling, 77
software system development example, 75
stack project example, 69
time-related elements, 76
tools, 69
wireless communications project example, 93–94
worker cost example, 78
work function basis, 72
resource shortages, 224
response to specifications, 173–176
risk, 228–230
roof type, 119
S
schedule
adjustments, 157
backward pass, 144–147
calculation examples, 148–153
compression, 158–159
critical path, 140, 144, 147–148
Critical Path Method, 141–143
earliest finish, 146–147
earliest start, 146–147
errors in, 106
finish-finish relationship, 144
finish to start mode, 144
float, 147
float management, 151
forward pass, 144–147
free float, 151
GANTT charts, 159–161
importance of, 139
latest finish, 146
latest start, 146
logic diagram, 140
management, 153–159
milestone chart, 160
negative float, 156
precedence relationships, 148
Program Evaluation and
Review Technique, 141–144
slack, 147
start-finish relationship, 144
start-start relationship, 144
time-phased chart, 160
total float, 151
updates, 155
work calendar, 153–154
zero float, 147
schedule delay, 228
Schedule Performance Index, 202
schedule termination, 184
Schedule Variance, 202
scope, 5
scope creep, 168
scope decrease, 221–222
scoring system, project selection process, 15–16
SF. See start-finish relationship
shortcoming in deliverables, 229
simple forecasting, 217
simple schedule network forecasting, 216
site conditions and environmental attributes, 213–214
skill level, RBS, 72
software, 31
specificity of project objectives, 108
square-root rule, 128, 132–133
stakeholders, 11
start-finish relationship (SF), 144
start-start relationship (SS), 144
strategic characteristics, quantitative organizational indices, 14
structure cost, 119
subcontractors, 13
system, 188–189
system complexity, 108
system design, 218
system development example, 32–33
system development projects, 120
system documents, 31
systems engineering, 30
system size, 108
system testing, 218
T
team size increase, 224
technology, 234
testing cost, 120
tests, 8
three-quarters rule, 127–131
time, 136
time and material, 170–172
time management structure, 4
total cost, 110
transition cost, 120
triple constraints, 208–209
triple point estimating, 125
turnover, 218
U
uncertainties and risks, 104
underrun profit sharing, 173
unit price, 171–172
unit testing, 218
user support, 30
V
value analysis, 226–228
vision, 192
W
work breakdown structure (WBS)
administrative bases, 26–27
bank data conversion software project example, 54–55
bottom-up estimating, 109–113
branch network restructuring project example, 58–61
compared to RBS, 20
comparing bases, 25–28
deliverable-oriented, 23–24, 26–28, 36–37, 39–43, 109
deliverables, 22
development steps, 21–23
division bases, 23–25
hardware design project example, 49–51
health service project example, 52–53
home building project example, 47–48
industrial construction project example, 62
Level One, 21
Level Three, 22
Level Two, 22
organizational priorities, 30–34
paradigm, changing, 35
process-oriented projects, 28–30
product-oriented projects, 28–29
resources-oriented, 25
roadmap for planning, 21
schedule-oriented, 25–27, 37–39
semantics, 34–35
wireless communications project example, 56–57
worker hours, 112
work function, RBS, 71