Subject Index
Abbott's admonitions, 246
Absentee project sponsorship, 389–390
Acceptance sampling, 912
Accessibility, 370
Accommodating (in conflict resolution), 305
Accountability:
dual, 327
and organizational structure, 95
Accounting staff, resistance to change by, 77
Acheson's rule of the bureaucracy, 246
Activities, overlapping, 801–803
Activity traps, 231
Actual cost for work performed (ACWP), 647–650, 654, 657, 659–662, 666, 673, 675–677
Actual earned value (AEV), 662
Actual failure, 63
ACWP, see Actual cost for work performed
Administration, project, 18–19
Administration cycle (contracts), 859–862
Administrative closure, 74
Administrative skills (of project manager), 152–153
Aerospace industry, 39
AEV (actual earned value), 662
Aggregate projects, 56
“Aggressor” (employee role), 181
Air France Concorde crash, 974
Alternatives:
in trade-off analysis, 721–722, 731–732
Alternative design, 785
Ambiguity, 237
Analysis phase (systems approach), 82–85
Anderson's law, 246
Andrews, Bob, 978
Apportioned effort technique, 658
Appraisals:
performance, 332
project work assignment, 322–324
Approved suppliers, 346
Approximate estimate, 574
Argyris, Chris, 196
Arms race, 39
Armstrong Building Products, 885
Assertiveness (in conflict resolution), 306
Assumptions, validating, 414–415
ATMs (automatic teller machines), 738
Attribute charts, 905
Audits:
project, 479
quality, 889
Authoritarian communication style, 240
Authority, 206
communications bottlenecks involving, 243–244
and organizational structure, 94
Autocratic leadership, 224–225
Automatic teller machines (ATMs), 738
Avoiding (in conflict resolution), 306
Award fees, 854
BAC, see Budget at completion
Balanced matrix structures, 117
advantage of, 557
conversion of, to PERT, 497, 498, 559
step arrangement, 561
Barclays Bank PLC, 1002
Base pay, 328
Basic needs, 195
Bathtub Period (case study), 708–709
BCWP, see Budgeted cost for work performed
BCWS, see Budgeted cost for work scheduled
Behavioralism, 94
Behavioral school of management, 192
Benchley's law, 246
Bennahum, David, 992, 1004, 1006–1007
Bertalanffy, Ludwig von, 38
Bertiger, Bary, 988, 989, 1002–1003
Bertiger, Karen, 988
Best practices, 790
levels of, 376
value of, 53
Best Practices audits, 479
Best-value award strategy, 847, 848
Bidder conferences, 846
“Blocker” (employee role), 182
Boeing, 349–350, 796, 797, 803–804
Bok's law, 246
Boling's postulate, 246
Bonuses, 333
“Bottom-up” risk management, 789
Boulding, Kenneth, 38
Brainstorming sessions, 419
Breakthrough projects, 354–355
Bridgestone, 974
British Airways, 974
Brook's first law, 246
Brook's second law, 247
Brown's law of business success, 247
Budget at completion (BAC), 659, 666, 673
Budgeted cost for work performed (BCWP), 647–648, 650, 654, 655, 657, 659–662, 666, 673, 677
Budgeted cost for work scheduled (BCWS), 642, 647–651, 654, 657, 659–662, 675–677
“Bundle” insurance, 758
Business case development, 964–965
Business processes, supporting project management, 53
Business risk, 758
CACN, see Cost account change notice
Calendar project, 531
Calibrated ordinal risk scales, 766
Capacity planning, 942–943, 946, 967–968
and internal rate of return, 617–618
and net present value, 616–617
and payback period, 614–615, 618
and time value of money, 615–616
zero-based budgeting, 633
Capital market stakeholders, 7
Case studies:
Conflict in Project Management, 313–318
Crosby Manufacturing Corporation, 552–554
Jones and Shephard Accountants, Inc, 138–140
Leadership Effectiveness, 266–277
Motivational Questionnaire, 277–283
Reluctant Workers, 294
Teloxy Engineering, 815
Telstar International, 312–313
Williams Machine Tool Company, 35–36
Cause-and-effect analysis, 895–899
Ceiling price, 851
Cell phone technology, 988. See also Iridium
Center of Excellence (COE), 957
Centers for project management expertise, 117–118
CERs, see Cost estimating relationships
Certainty, decision-making under, 747–748
Champion(s):
executive, 393
Change:
resistance to, 50–54, 76–81, 142
Change process, 80
Chard, Stephane, 1017
Chase Securities Inc., 1002
Chisholm's second law, 247
Claircom Communications Group Inc., 1009
Claircom Corporation, 1006
“Clarifier” (employee role), 183
Classical management, 5, 10, 165, 192
Classical organizational structure, see Traditional organizational structure
Closed systems, 54
Closure phase (project life cycle), 69, 70, 74
Code of Professional Conduct, 343
COE (Center of Excellence), 957
Cohn's law, 247
Cold War, 39
Collaborating (in conflict resolution), 304–305
Collective belief, 394–395, 997
Collective decision-making, 195
Combative communication style, 242
Commitment(s):
project, 15
of team members, 211–212, 214, 218
Committee sponsorship, 390–391
during crises, 985
filtering of, 240
functional applications of, 237
and listening, 240
in matrix organizations, 110
as network of channels, 233
between operational islands, 4
patterns of, 230
policy for, 241
receiving of, 236
steps for effective, 239
and team development, 212, 215
techniques for improving, 239
in traditional organizational structure, 97
with visual aids, 238
written, 238
Communications management, 238
Communications satellites, 988–989. See also Iridium
Company, responsibilities to, 344–345
and base pay, 328
bonuses, 333
fixed compensation plans, 825
and job classification, 327–328
merit increases, 333
and performance appraisals, 328–333
Competence, 342
Competing (in conflict resolution), 306
Compliance audits, 479
Compression, schedule, 528–529
Compromising (in conflict resolution), 305
Conceptual phase (project life cycle), 68
Conciliatory communication style, 242
Concorde crash, 974
Concurrent (simultaneous) engineering, 30, 75, 801–804
Configuration management, 475–476
fear of, 218
between line and project managers, 229–230
meaningful, 298
and organizational structure, 95, 97–99
personality, 298
and project objectives, 296–297
of project resource needs, 534–535
within project teams, 209, 211
reasons for occurrence of, 299–300
recognizing/understanding, in trade-off analysis, 718–720
relative intensity of, 298
schedule, 298
teams engaging in, 218
Conflicts of interest, 343–344
Conflict in Project Management (case study), 313–318
Conflict management/resolution:
confrontation meetings for, 303–304
and establishment of priorities, 299–300
problems arising during, 230
role of project managers in, 298–299
task forces and, 101
Confrontation meetings, 303–304
Confronting (in conflict resolution), 304–305
Connolly's law of cost control, 247
“Consensus taker” (employee role), 183
Constraints:
in trade-off analysis, 715–718
Continuous improvement, 880, 892, 937–941, 967
administration cycle for, 859–862
basic elements of, 850
checklists for evaluation of, 863–864
cost, 854
cost-plus-award-fee, 736
cost-plus-fee, 856
cost-plus-incentive-fee, 736, 853
cost-plus-percentage-fee, 851
cost-sharing, 854
definitive, 850
fixed-price (lump-sum), 735, 852, 856
fixed-price-incentive-fee, 735, 853
fixed-price incentive successive targets, 854
fixed-price with redetermination, 854
government, 39
guaranteed maximum-share savings, 853, 856
proposal, interaction with, 864–867
trade-off analysis and type of, 735–736
as transition between project life-cycle phases, 841
activities in, 842
conducting procurements, 845–851
contract closure, 862
and contract types vs. risk, 858–859
cycle of contract administration, 859–862
definition of, 840
environment for, 841
incentive contracts, 855, 857–858
planning procurements, 842–845
proposal-contractual interaction, 864–867
strategies for, 840
Contract statement of work (CSOW), 426–427
Contractual closure, 74
Contract work breakdown structure (CWBS), 426–431
components of, 906
and normal distribution, 902–904
Cooke's law, 247
Cooperative cultures, 80, 81, 339
Coordinating, 194
Copperstein, David, 1021
Corning, 347
Cornuelle's law, 247
impact on virtual project teams, 354
Corporate POs, 958
Corporate procurement strategy, 840
Corwin Corporation (case study), 401–409
Cost(s):
of quality, 881
value-added, 819
Cost account change notice (CACN), 637, 641
Cost-benefit analyses, 148
Cost contracts, 854
and “earned value” concept, 655–658, 672–674
elements of, 672
importance of, 629
and labor distributions, 580–584
and logistics support, 613–614
and materials/support costs, 586–589
and MCCS, 630–633, 636, 637, 640, 644–645, 664–665
and operating cycle, 636–637, 640
problems with, 685
requirements for effective, 633
in traditional organizational structure, 96–97
variance analysis for, 647–666
Cost estimating relationships (CERs), 572, 830
Cost evaluation, 762
Cost formula, 657
Cost performance index (CPI), 650–652, 665–666
Cost-plus-award-fee contracts, 736
Cost-plus-fixed-fee contracts, 736, 852–853, 856
Cost-plus-incentive-fee contracts, 736, 853, 858
Cost-plus-percentage-fee contracts, 853
Cost-reduction programs, 2
Cost-sharing contracts, 854
Counseling, 194
Courtois's rule, 247
Cp (process capability), 910–912
CPI, see Cost performance index
CPM, see Critical path method
Credibility, 370
Crisis Committee, 985
in Air France Concorde crash, 974
at Ford vs. Firestone, 973–974
with Intel's Pentium chips, 975
with Nestlé's infant formula marketing, 979–981
project management implications of, 985–986
in Space Shuttle Challenger explosion, 981–982
in Space Shuttle Columbia disaster, 982–983
in Tylenol poisonings, 976–979
victims vs. villains in, 983
Crisis team, 985
Critical Chain Project Management, 535
Critical path method (CPM), 494, 499–500, 504, 506, 508–510, 512, 516–523
Critical success factors (CSFs), 60–63
Crosby Manufacturing Corporation (case study), 552–554
CSFs (critical success factors), 60–63
CSOW (contract statement of work), 426–427
Cumulative average hours, 822–824
Cumulative total hours, 822
Customers:
communication with, 156, 244–245
and quality management, 874, 875
unethical/immoral requests by, 339–340
Customer group POs, 958
Customer review meetings, 243
CWBS (contract work breakdown structure), 426–431
Daily calendar log, 289
Daily meetings, 238
Debate, first law of, 247
DEC (Digital Equipment Corporation), 834
Decision making, 969
inappropriate influences on, 344
by teams, 215
Decision theory school of management, 192
Decoding, 235
De facto authority, 206
Defense industry, 39
Definitive contracts, 850
Definitive estimate, 574
De jure authority, 206
Delegation, 95
and directing, 193
factors affecting, 205
and overtime, 286
Delphi method, 757
Deming, W. Edwards, 877–878, 880–882, 915
Democratic leadership, 224
Demonstration events, 785
Denver International Airport, 952
Department of Defense (DOD), 39, 44, 347, 351–352, 949
Depression, 291
Design to unit production cost (DTUPC), 599
Development efforts, multiple, 786
Development risks, 621
“Devil's advocate” (employee role), 181
Digital Equipment Corporation (DEC), 834
difficulty of, 194
and hierarchy of needs, 195–196
and professional needs, 197
and Theory X/Theory Y, 194–195
Direct property damage, 758
Discretionary dependencies, 495
Disruptive communication style, 242
Distributed budget, 644
Diversity of product lines, 122
DMAIC, 914
Documentation:
during crises, 986
in ISO 9000, 886
of project manager's authority, 205
DOD, see Department of Defense
“Dominator” (employee role), 181
Donsen's law, 247
Dorale Products case studies, 1037–1048
Douglas's law of practical aeronautics, 247
Drucker, Peter, 973
DTUPC (design to unit production cost), 599
Dual accountability, 327
Dude's law of duality, 247
DuPont, 347
EAC, see Estimate at completion
Earned value (EV), 655–658, 662, 672–674, 788
Earned value measurement information systems, 960
Earned value measurement system (EVMS), 645–647
Economic conditions, 825
Economies of scale, 818
Economists' laws, 247
ECPs (engineering change proposals), 791
EDP, see Electronic data processing
Education, xxi, 248–249, 348–350
Efficiency/effectiveness, 47, 370–371
Egan, Bruce, 1011
Electronic data processing (EDP), 582, 584
Eli Lilly, 944
Emotional exhaustion, 291
Empirical school of management, 192
Employees:
assignment of responsibilities to, 175
functional, 17
hard-nosed tactics with, 155
performance measurement with, 320–327
project manager and performance of, 226
reporting to managers by, 10
“star,” 175
“Encourager” (employee role), 182
End-of-phase review meetings, 947
Engineering change proposals (ECPs), 791
Engineering staff, resistance to change by, 78
Enterprise Environmental Factors, 841
Enterprise project management methodologies, 476–479
Entrepreneurial skills (of project manager), 152
Environment(s):
and organizational structure, 91–92
problems in project, 227
Equivalent units, 657
Escalating commitment, 1018–1019
Esteem, 196
Estimates, 572
good information for, 574
for high-risk projects, 601–602
and life-cycle costing, 608–612
and logistics support, 613–614
and low-bidder dilemma, 599
10 percent solution with, 606–608
of total project time, 513–514
Estimate at completion (EAC), 641, 659–662, 665, 666, 673
Estimated cost, 851
Estimated cost to complete (ETC), 666
Estimative probability risk scales, 767
ETC (estimated cost to complete), 666
Ethical communication style, 242
EV, see Earned value
Evaluations, employee, 320–327
EVMS (earned value measurement system), 645–647
Excellence, 59
Execution risks, 621
as champions, 393
and committee sponsorship, 390–391
cost-reduction programs initiated by, 2
and decentralization of project management, 392
defining role of, 17
and in-house representatives, 396
and invisible/absentee sponsorship, 389–390
and management of scope creep, 392–393
in matrix organizations, 107, 108
and program managers, 153
and project management-line management relationship, 8–12
as project managers, 154
and project office, 173
and project selection, 444–448
and project team, 174
and risk management, 392
selection of project manager by, 144–148
as sponsors of multiple projects, 386
in traditional organizational structure, 97
Exhaustion, 291
Exit audits, 479
Exit champions, 395–396, 997–998
Exit ramps, 396
Expectancy theory, 196
Expectations, project, 63, 65, 371–372
Expected profit, 851
Experience, risk and, 790
Experimental design, 785
Expert judgment techniques, 757–758
Expert power, 207
Extended systems, 55
External dependencies, 501
External partnerships, 346–347
External-predictable risks, 758–759
External suppliers, 346
External-unpredictable risks, 758–759
Exxon Valdez oil spill, 972
Facilitating communication style, 240
of project management, 369
Fears:
of conflict, 218
embedded, 80
Feasibility studies, 148, 419–421
Federal Aviation Administration, 804
Federal Express, 885
50/50 rule, 656
Filtering, 240
Finance staff, resistance to change by, 77
Financial closure, 74
Financial risks, 621
Firsthand observation, 556
First law of debate, 247
Five Whys, 914
Fixed compensation plans, 825
Fixed-price (lump sum) contracts, 735, 852, 856
Fixed-price-incentive-fee contracts, 735, 853, 855, 857
Fixed-price incentive successive targets contracts, 854
Fixed-price with redetermination contracts, 854
Flow charts, 566
Flower, Joe, 991
Follow-on orders, 830
Forcing (in conflict resolution), 306
Ford Motor Company, 874, 973–974
Forecasting technology, 39
Formal authority-oriented leadership techniques, 221
Formalized project management, 41
Fragmented cultures, 81
Franklin Electronics (case study), 709–711
Front-end analysis, 349
Functional employees, 17
Functional gaps, 4
Functional managers, see Line manager(s)
Functional organizations, 143
Functional POs, 958
Future, the:
challenges of, 1
Fyffe's axiom, 247
Galvin, Christopher, 990, 995, 1021
Galvin, Robert, 990, 991, 995, 998, 1021
Gantt charts, see Bar charts
Gates (stage-gate process), 66–67
“Gate keeper” (employee role), 67, 183
Gate review meetings, 74
Gavin, Paul, 1019
General Electric (GE), 913
General Magic, 1022
General systems theory, 38
Gercenstein, Mark, 995
GERT (Graphical Evaluation and Review Technique), 500–501
Gifts, acceptance of, 344
Globalstar Satellite Communications System, 1001, 1011
Goldman Sachs & Co., 1002
Goldratt, Eliyahu M., 535
Golub's laws of computerdom, 247
Government contracting, 39
Graphical Evaluation and Review Technique (GERT), 500–501
Graphic analysis (time/cost curves), 723–730
fixed performance levels, 723–726
learning curves, 820–822, 826–828
for customer reporting, 556
flow charts, 566
pictorial representation, 566
Great Wall Industry Corporation, 1001
Gresham's law, 248
Guaranteed maximum-share savings contracts, 853, 856
Hard-nosed tactics, 155
Hardware deliverables, 5
“Harmonizer” (employee role), 183
Headcount, 968
Herzberg, Frederick, 196
Hewlett-Packard (HP), 834
Hierarchical referral, 99, 300–301
Hierarchy(-ies):
considerations of, 130
of management, 4
High-risk projects, estimating, 601–602
Hillis, Durrell, 990
History of project management, 37–41
and general systems theory, 38
and resistance to change, 50–54
Hoare's law of large programs, 248
Hodgetts, Richard M., 221
Hopeless, feeling, 292
Horizontal work flow, 4
HP (Hewlett-Packard), 834
Human behavior education, 248–249
Human relations-oriented leadership techniques, 221
Human Resources staff, resistance to change by, 78
Hybrid project management, 51
Hygiene factors, 196
IFB (invitation for bid), 847
Implementation phase (project life cycle), 69
Incentive contracts, 855, 857–858
Incompetency, 168
Incremental development, 786
Indirect consequential loss, 758
Individual projects, 56
Influence, 344
Informal project management, 26, 41, 59–61
Information:
quantity of, 969
“Information giver” (employee role), 182
“Information seeker” (employee role), 182
Information technology projects, 953
Information technology staff, resistance to change by, 78
In-house representatives, 396
“Initiator” (employee role), 182
Inspections, 786
Integrated product/project teams (IPTs), 347, 350–352
Integrative responsibilities, 12, 13
Integrity, 342
Interface management, 13
Interim deliverables, 6
Internal partnerships, 345–346
Internal rate of return (IRR), 617–618
Internal risks, 759
International Institute for Learning, 477
Interpersonal Influences, 206–209
Interval risk scales, 766
Intimidating communication style, 242
Intranets, 53
Invisible project sponsorship, 389–390
Invitation for bid (IFB), 847
IPTs, see Integrated product/project teams
Bankruptcy Court ruling, 1015–1016
collective belief in, 997
developing business case for, 993–994
executive support for, 990
financial impact of bankruptcy, 1017–1018
“hidden” business case for, 995
initial public offering for, 1004
and Iridium “flu,” 1011
and Iridium system, 992
lessons learned from, 1020–1022
new CEO for, 1003
reasons for collapse of, 1016–1020
rescue of, 1014
satellite deorbiting plan, 1013
searching for white knight for, 1012
shareholder lawsuits, 1015
signing up customers for, 1004–1005
terrestrial and space-based network for, 992–993
IRR (internal rate of return), 617–618
ISO 14000, 886
Isolated cultures, 81
Issawi's law of cynics, 248
JIT (just-in-time manufacturing), 917–919
Job descriptions, 12, 228, 327–329
Job reassignment, 164
Johnson Controls, 936
Johnson & Johnson, 971, 976–979, 983
Johnson's first law, 248
Jones and Shephard Accountants, Inc. (case study), 138–140
Judicial communication style, 242
Juran, Joseph M., 877, 878, 880–881
Just-in-time manufacturing (JIT), 917–919
Kahneman, Daniel, 744
Kaizen events, 914
Key performance indicators (KPls), 62, 63
Key stakeholders, 6
Khrunichev Space Center, 1001
KISS rule, 194
Knape, Weldon, 1014
Kodak, 885
KPIs, see Key performance indicators
Labor-intensive projects/organizations, 120
Laissez-faire leadership, 224
Large projects, 338–339, 395–396, 457
LCC, see Life-cycle costing
definition of, 220
elements of, 220
organizational impact of, 225–227
by project manager, 149–150, 209, 220–221, 225–227
Leadership Effectiveness (case studies), 266–277
Lean Six Sigma, 914
as competitive weapon, 834–835
cumulative average curve, 822–824
and follow-on orders, 830
graphic representation of, 820–822, 826–828
key phrases associated with, 822
limitations of, 832
and manufacturing breaks, 830–832
and method of cost recording, 828–829
Legal liability, 758
Legal risks, 759
Lencioni, Patrick, 217
Leopold, Raymond, 989
LEO (low Earth-orbiting) satellites, 989
in crisis management, 986
from Iridium Project, 1020–1022
Lessons-learned information systems, 961
Letter contract (letter of intent), 850
Level of effort method, 657–658
Life cycle, project, 24, 68–73
for computer programming, 71, 73
conceptual phase, 68
crisis management in phases of, 984–985
implementation phase, 69
and risk, 755
stage-gate process vs., 67
testing phase, 69
Life-cycle costing (LCC), 599, 608–612
benefits of, 609
limitations of, 609
Life-cycle leadership, 221–225
Life tests, 791
Linear responsibility charts (LRCs), 200–205, 457, 464
Line manager(s):
and communications policy, 241
communication traps between project managers and, 245
and employee evaluations, 320–321, 323–324
leadership by, 155
in matrix organizations, 108
multiple responsibilities of, 179–180
over-the-fence management by, 39
position power of, 208
and project managers, 8–12, 164, 229–230, 345–346, 472–474
and project office personnel, 172–173
and selection of project staff, 175
and training of employees, 178, 179
viewpoints of project managers vs., 210
Line-staff organizations, 102–103
Listening, 240
Lloyd, Carmen, 1015
Lockheed, 1001
Long-term projects, 5
Lot-release system, 829
Low-bidder dilemma, 599
Low Earth-orbiting (LEO) satellites, 989
LRCs, see Linear responsibility charts
McDonnell Douglas Corp., 1001
Maintainability, 875
Malcolm Baldrige National Quality Award (MBNQA), 884–886
Malek's law, 248
Management:
communications, 238
matrix, 38
over-the-fence, 39
schools of, 192
systems, 38
Management-by-objective (MBO), 297, 327
Management by results, 915
Management cost and control system (MCCS), 449–450, 644–645
and cost accounting, 637
cost/benefit analysis in, 632
cost data collection/reporting phase of, 640
effectiveness of, 633
planning activities in, 631–632
Management gaps, 4
Management policies and procedures, 249–251
Management proverbs and laws, 245–248
Mandatory dependencies, 501
Manpower requirements, projected, 590–592
Manufacturing plans, 792
Manufacturing screening, 786
Manufacturing staff, resistance to change by, 78
Marketing staff, resistance to change by, 77
Market stakeholders, 7
Maslow's hierarchy of needs, 196
Master production schedule (MPS), 457–458
Material costs, 586–589, 672–677
and accounting system criteria, 675–676
recording of, using earned value measurement, 672–674
Matrix management, 38
Matrix organizational structure, 106–117, 121–122
functional managers in, 108
strong/weak/balanced, 117
Matrix projects, 56
definition of, 58
Mayer Manufacturing (case study), 311–312
MBNQA (Malcolm Baldrige National Quality Award), 884–886
MBO, see Management-by-objective
MCCS, see Management cost and control system
Meaningful conflict, 298
Medium-sized companies, project management in, 125–128
Meetings, 238
effective, 242
end-of-phase review meetings, 947
unproductive, 245
wasted, 969
Mentoring, 962
Merit increases, 333
Methodologies, project management, 74–76, 798, 936–937, 946–947
Metrics, program, 788
Middle managers, 42
Milestone technique, 656
Minimax criterion, 750
Mr. Cooper's law, 247
Mock-ups, 786
Modeling, 786
Modified matrix structures, 113–117
Monthly meetings, 238
Motivational Questionnaire (case study), 277–283
Motorola, 347, 885, 902, 912–913, 928, 936, 987–996, 998–1004, 1007–1010, 1012–1015, 1017–1022
MPS (master production schedule), 457–458
Multinational companies, 52
Multiple development efforts, 786
Multiple projects, managing, 946–947
Multiproject analysis, 531
Mussey, Armand, 1021
NASA, 39, 44, 55, 427–428, 982
NASDAQ, 1018
Nasser, Jac, 974
Navarro, Anthony, 1011
Nestlé's infant formula marketing, 979–981
Net present value (NPV), 616–617
Networks of channels, 233
Networking (of PMOs), 959
Network scheduling techniques, 493–531
activity time, estimation of, 512–513
dependencies in, 501
myths of schedule compression, 528–529
scheduling problems, 528
software, project management, 530–534
total project time, estimation of, 513–514
Noise, 237
Nominal group technique, 757
Nominal risk scales, 766
Noncash awards, 336
Noncooperative cultures, 80, 81
Nonprofit organizations, 738
Non-project-based organizations, 22
Non-project-driven organizations, 22–24, 46, 50, 738
Nonreciprocal laws of expectations, 247
Normal performance budget, 644
NPV (net present value), 616–617
Objectives:
characteristics of good, 296
management-by-objective, 297
quality, 888
in systems approach, 83
Objective sources (risk), 755
OBS (organizational breakdown structure), 637
Observation, 556
Old Engineer's law, 247
Oliver, Dave, 1014
Ono, Masatoshi, 974
Operability, 875
Operational-driven organizations, 22
Operational islands, 4
Opportunities:
response options for, 784, 787
Order-of-magnitude analysis, 574
Ordinal risk scales, 766
impact of leadership on, 225–227
labor-intensive, 120
location of project manager within, 27–28
project-driven, marketing in, 24–25
project-driven vs. non-project-driven, 22–24
Organizational behavior, 12
Organizational breakdown structure (OBS), 637
Organizational chart, project, 175–178
Organizational redesign, 129–131
Organizational restructuring, 42, 93–94, 968
Organizational risks, 621
Organizational skills (of project manager), 152
Organizational stakeholders, 6
Organizational structure(s), 91–131
appropriateness of, 93
line-staff organization, 102–103
matrix organizational form, 106–113
modified matrix structures, 113–117
pure product (projectized) organization, 103–104
in small and medium-sized companies, 125–128
strategic business units, 128–129
traditional (classical), 95–98
and work integration mechanisms, 98–102
Ouchi, William, 195
Outsourcing, 346
Overlapping activities, 801–803
Overstaffing, 110
Over-the-fence management, 39
Overtime, 286
Paperwork, excessive, 968
Parameter control boards, 786
Parameter design, 883
Participative leadership, 224
Partnerships:
strategic, 347
Part-time project managers, 154
Patton's law, 248
Pay classes/grades, 172, 175, 328
Pentium chips, 975
Pentium® microprocessors, 804
People skills, task skills vs., 232
Percent complete, 657
Perception barriers to communication, 234
Performance, personnel, 142, 226
Performance appraisals, 328–333
Performance audits, 479
Performance failure information systems (PFISs), 960–961
Performance measurement:
with project managers, 330–331
with project personnel, 332
Permissiveness, 168
Personality conflicts, 298
Personal power, 207
Personal resistance, 77
PERT, see Program Evaluation and Review Technique
Peterson, Kenneth, 989
Peter's Prognosis, 248
PEV (planned earned value), 662
PFISs (performance failure information systems), 960–961
Physical exhaustion, 291
Physiological needs, 195
P&L (profit and loss), 50
Planned earned value (PEV), 662
Planning:
authority for, 465
and configuration management, 475–476
consequences of poor, 412
definition of, 412
detailed schedules/charts, use of, 454–457
elements of, 464
and focusing on target, 417–418
and identification of specifications, 431–433
in ISO 9000, 886
and life cycle phases, 418–421
and management control, 469–472
master production schedule, use of, 457–458
and milestone schedules, 433–434
and organizational level, 416
participants in, 424
for phaseouts/transfers, 453–454
project charter, use of, 465, 466, 468–469
by project manager, 19–20, 151–152, 159
questions to ask when, 437
reasons for, 414
role of project manager in, 412
and statement of work, 426–431
subdivided work descriptions, use of, 450–451
validation of assumptions in, 414–415
Planning phase (project life cycle), 68–69, 418–421, 465–468
PMBOK, see Project Management Institute Guide to the Body of Knowledge
PMMM (project management maturity model), 928–932
PMOs, see Project management offices
POs, see Project offices
Poka-yoke, 914
Policy:
communications, 241
personnel, 143
quality, 887
Political erosion, law of, 248
Political risks, 621
Position power, 208
Preferred suppliers, 346
Prekickoff meeting, 423
Price-based award strategy, 847
Price ceiling, 851
Price variances (PV), 676, 677
developing strategies for, 572–573
and labor distributions, 580–584
and low-bidder dilemma, 599
and manpower requirements, 590–592
and materials/support costs, 586–589
organizational input needed for, 578–580
in smaller companies, 338
special problems with, 599–600
steps in, 589
Primary success factors, 60–62
Priorities:
conflict resolution and establishment. of, 299–300
project, 946
and project success, 370
Probability distributions, 772–775
Problem-solving:
by management, 226
in matrix organizations, 107
project management and, 2
Procedural documentation, 932–936
Procedures, management, 249–251
Process approach (risk identification), 759–760
Process capability (Cp), 910–912
Process proofing, 786
Procurement staff, resistance to change by, 78
Produceability, 947
Production point, 851
Production risk, 755
Productivity, 1
Product management, project management vs., 57–58
Product stakeholders, 7
Professionalism, 342
Professional needs, 197
Professional resistance, 77–79
Profit and loss (P&L), 50
Profit ceiling, 851
Profit floor, 851
Programs:
definitions of, 55
as subsystems, 55
Program Evaluation and Review
Technique (PERT), 494–500, 503–516, 519, 521–523
activity time, estimation of, 512–513
advantages of, 495
conversion of bar charts to, 497, 498, 559
critical path in, 499
disadvantages of, 495
problem areas in, 519, 521–522
replanning techniques with, 508–512
standard nomenclature in, 496–497
total project time, estimation of, 513–514
Program metrics, 788
Progress reviews, 969
Project(s):
categories of, 56
classification of, 26
defining success of, 7
evaluation of, 1020
as “good business,” 25
internal vs. external, 46
labor-intensive, 120
long-term, 5
organizational chart for, 175–178
procurement strategy for, 840–841
scope of, 426
short-term, 5
Project audits, 479
Project-based organizations, 22
Project charter authority, 206
Project closure, 74
Project commitments, 15
Project-driven organizations, 22–24, 143
career paths leading to executive management in, 29
resource trade-offs in, 738–739
Projectized (pure product) organizations, 103–105
Project management:
as business process, xxi
controlling function of, 193
directing function of, 193–198
downside of, 21
driving forces leading to recognition of need for, 46–47
excellence in, 7
failure of, 369
formal vs. informal, 41
hybrid, 51
industry classification by utilization of, 50
informal, 26
and integration of company efforts, 120–121
matrix management vs., 106
new processes supporting, 52
obstacles to successful, 4
and organizational expansion, 43–44
pictorial representation of, 6
as problem-solving approach, 2
process groups in, 3
and project authority, 198–206
relationship of product and, 57
risk management linked to, 745
in small and medium-sized companies, 125–128
Project management information systems, 959–961
Project Management Institute Guide to the Body of Knowledge (PMBOK), 3, 38, 648, 888–889, 1055–1059
Project Management Knowledge Base, 342
Project management maturity model (PMMM), 928–932
Project management methodologies, 74–76, 936–937, 946–947
Project management offices (PMOs), 955. See also Project offices
networking, 959
virtual, 53
Project manager(s):
administrative skills of, 152–153
attitude of, 7
availability of, 155
and communications policy, 241
communication traps between line managers and, 245
and conflict resolution, 298–299
conflict resolution skills of, 150–151
and employee evaluations, 320–323
entrepreneurial skills of, 152
executives as, 154
integrative responsibilities of, 12, 13, 44–45
leadership skills of, 149–150, 209, 220–221, 225–227
and line managers, 8–12, 164, 229–230, 345–346, 472–474
in line-staff organizations, 102–103
location of, within organization, 27–28
management support-building skills of, 153
in matrix organizations, 107–108, 121–122
multiple projects under single, 154
organizational skills of, 152
part-time, 154
performance measurement for, 330–331
personal attributes of, 143–144, 146–147
and planning, 412
and problems with employees, 227–230
professional responsibilities of, 342–345
in project selection process, 448
in pure product organizations, 104
resource allocation skills of, 153
responsibilities of, 4, 145–146, 159–163, 342–345
and risk, 229
selection of, 144–148, 154–157
skill requirements for, 148–153
team-building skills of, 149
technical expertise of, 144, 151, 155–156
use of interpersonal influences by, 206–209
viewpoints of line managers vs., 210
Project milestone schedules, 433–434
Project offices (POs), 165–166, 169–174, 337, 955–969
business case development by, 964–965
communications bottleneck in, 243–244
and continuous improvement, 967
customized training by, 965–966
dissemination of information from, 961–962
implementation risks with, 957–958
information systems for, 959–962
mentoring by, 962
networking, 959
and pricing, 592
and project management information systems, 959–961
stakeholder management by, 966–967
standards and templates developed by, 963
Project opportunities, 25
benefits of, 459
development of, 459
distribution of, 462
Project pricing model, 595
Project review meetings, 242–243
Project selection process, 448
Project specifications, 431–433
and decentralization of project sponsorship, 392
handling disagreements with, 393–394
multiple, 370
termination of project by, 67
Project sponsorship, 19
Project termination, 369
Promotional communication style, 240, 242
Prospect theory, 744
Prototyping, 786
Pudder's law, 248
Pure product (projectized) organizations, 103–105
Putin, Vladimir, 975
Putt's law, 248
PV, see Price variances
Qualitative risk analysis, 761, 766–771
Quality audits, 479
Quality management and control, 873–923
acceptance sampling, 912
audits, quality, 889
cause-and-effect analysis, 895–899
and changing views of quality, 874
as customer-driven process, 874–875
and definition of quality, 875–877
and just-in-time manufacturing, 917–919
Malcolm Baldrige National Quality Award, 884–886
objectives, quality, 888
policy, quality, 887
quality assurance, 888
responsibility for, 916
trend analysis, 901
Quality manufacturing process risk, 792
Quantitative risk analysis, 761, 771–772
Quantitative tools, 12
RAM, see Responsibility assignment matrix
Raytheon Corp., 1001
R&D, see Research and development
Reassignment, job, 164
Recession, 51
“Recognition seeker” (employee role), 181–182
Recruitment, 167
Redesign, product, 826
Red flag, 391
Re-engineering, 52
Referent power, 207
Reliability, 875
Reluctant Workers (case study), 294
Reports/reporting:
customer, 556
software for, 531
Requests for information (RFIs), 847
Requests for proposals (RFPs), 579–580, 847
Requests for quotation (RFQs), 847
Requirements (in systems approach), 83
Requirements approach (risk identification), 760
Research and development (R&D):
project management, 47, 57, 122, 123, 156, 298, 608–612
resistance to change by staff of, 78
Resource(s):
company, 8
trade-off of, see Trade-off analysis
Resources Input and Review meeting, 423
Resource allocation, program managers and, 153
Responsibilities:
to company/stakeholders, 344–345
during crises, 986
and organizational structure, 94, 95
Responsibility assignment matrix (RAM), 200, 202
Restructuring, organizational, 42, 968
Results-focused teams, 219
Review meetings, 947
Review of Ground Rules meeting, 423
Rewards:
RFIs (requests for information), 847
RFPs, see Requests for proposals
RFQs (requests for quotation), 847
Richardson, John, 1008–1010, 1017
acceptance of, 784
causes of, 742
and concurrent engineering, 801–804
and experience, 790
identification of, 753, 755–761
levels of, 763
life testing, 791
manufacturing, 792
measuring, 514
monitoring, 753
in project financing, 621
and project offices, 957–958, 968–969
quality manufacturing, 792
sources for identification of, 755–757
and training, 793
Risk acceptance, 784
cost evaluation, 762
schedule evaluation, 762
technical evaluation, 762
Risk avoidance, 785
Risk handling, 782
Risk identification:
and change management, 796–797
considerations for implementation of, 788–789
and executives, 392
as failure component, 65
impact of risk handling measures, 798–801
monitoring and control of risk, 788
Monte Carlo process for, 775–782
overinvestment/underinvestment in, 799
process of, 753
and project management, skills, 158
response mechanisms, risk, 782–787
training in, 754
uses of, 798
Risk management information systems (RMISs), 960
Risk Management Plan (RMP), 754, 783, 788–789
Risk mapping matrices, 767–768
Risk monitoring, 753
Risk neutral position, 745
Risk response strategy, 743
Risk scales (templates), 766–767
Ritz-Carlton, 885
RMISs (risk management information systems), 960
Robust design, 786
Rogers Cantel Mobile Communications, 1006
Role conflicts, with project teams, 211
Salability, 874
Sales staff, resistance to change by, 77
Savage criterion, 750
SBUs (strategic business units), 128–129
Scalar chain of command, 239
Schedules:
Schedule conflicts, 298
Schedule evaluation, 762
Schedule performance index (SPl), 650–652, 665–666
Schedule performance monitoring, 788
Schedule variance (SV), 648–649
Scheduling:
network, see Network scheduling techniques
Scope changes, 7, 946, 949–954
business need for, 953
downstream effect of, 950
radical, 952
rationale for not approving, 954
Scope change control, 75
Scope statement, 426
Secondary success factors, 60–62
Secretive communication style, 242
Self-actualization, 196
Self-concept, 231
Self-esteem, 196
Sharing arrangement/formula, 851
Shewhart techniques, 877
Shosteck, Herschel, 1011
Simulation, 786
Simultaneous engineering, see Concurrent engineering
Situational Leadership® Model, 222–223
Six Sigma, 53
lean, 914
Skills, people vs. task, 232
Slope (of learning curve), 822, 827–828
Small companies, effective project management in, 125–128, 336–338
SMEs (subject matter experts), 444
Smoothing (in conflict resolution), 305
Social acceptability, 875
Social groups, 79
Social needs, 195
Software, project management, 530–534
Software deliverables, 6
Software reuse, 786
Solicitation package, 846
SOOs (Statements of Objectives), 843
SOW, see Statement of work Space program, 39
Space Shuttle Challenger explosion, 981–982
Space Shuttle Columbia disaster, 982–983
SPCs, see Statistical process controls
Special projects, 56
Special-project meetings, 238
Specifications, project, 431–433
SPI, see Schedule performance index
Spinetta, Jean-Cyril, 974
Sporadic problems, 880
Staffing, 5. See also specific job titles, e.g.: Project manager(s)
and directing, 193
as insurable risk, 758
overstaffing, 110
special problems with, 178–180
understaffing, 286
Staff projects, 56
Staiano, Edward, 1003, 1006, 1008, 1017, 1019–1020
balancing interests of, 342–343
and crisis management, 986
interacting with, 343
Standards, development of, 963
Standard items, 786
Standardization, product, 826
Standard Practice Manuals, 340–341
“Star” employees, 175
Statements of Objectives (SOOs), 843
Statement of work (SOW), 153, 425–431
and contract statement of work, 426–427
and contract work breakdown structure, 426–431
misinterpretation of, 427
and requirement cycle, 843
Statistical process controls (SPCs), 878, 893
Stonewalling, 18
Strategic business units (SBUs), 128–129
Strategic partnerships, 347
Strategic POs, 958
Strategic project pricing model, 595
“Strawman” rating definitions, 763
positive aspects of, 292
in project management, 290–292
Strong matrix structures, 117
Subdivided work descriptions (SWDs), 450–451
Subjective sources (risk), 755
Subject matter experts (SMEs), 444
Success, project, 60–63, 365–373
and effectiveness of project management, 370–371
Supervising, 193
Suppliers, 346
Support risk, 755
Survival, 47
SV (schedule variance), 648–649
SWDs (subdivided work descriptions), 450–451
“Swing” design (communication analogy), 233
Synthesis phase (systems approach), 83
System(s):
extended, 55
open vs. closed, 54
Systems engineering, 745
Systems management, 38
TAAF (test-analyze-and-fix), 786
Target cost, 851
Target profit, 851
Task skills, people skills vs., 232
Teams, project, 143, 169, 174–175
barriers to development of, 209–214
communication within, 212, 215
decision making by, 215
effective vs. ineffective, 216
expectations of/about, 412
management of newly formed, 212, 214–216
ongoing process of building, 216–217
performance measurement for, 331
support of senior management for, 212, 214
Team members, interacting with, 351
Technical evaluation, 762
Technical expertise, 123, 144, 151, 155–156
Technical performance measurement (TPM), 788
Technical risk dependencies, 795–796
Technology:
forecasting, 39
project managers' understanding of, 8
in pure product organizations, 105
shifts in, 9
in traditional organizational structure, 95–96
Technology maturation efforts, 786
Teloxy Engineering (case study), 815
Telstar International (case study), 312–313
Template development, 963
Temporary assignments, 142
Termination, project, 369
Test-analyze-and-fix (TAAF), 786
Testing phase (project life cycle), 69
Texas Instruments (TI), 834
Thamhain, Hans, 9
Theory of Constraints, 534, 535
Theory X, 194
Theory Z, 195
Threat risk, 755
TI (Texas Instruments), 834
activity times, estimation of, 512–513
barriers to effective, 286–288
identification of, as problem area, 286
techniques for effective, 289–290
Tip-of-the-iceberg syndrome, 23–24
Tired, being, 291
“To do” pad, 288
Tooling, 832
Top-down estimate, 574
“Top down” risk management, 789
“Topic jumper” (employee role), 181
Total project time, estimation of, 513–514
Total quality management (TQM), 51, 74, 875, 919–923
Toyota Production System (TPS), 914
TPM (technical performance measurement), 788
TPS (Toyota Production System), 914
TQM, see Total quality management
alternative courses of action, list of, 721–722
conflict, recognition/understanding of, 718–720
environment and status, review of project, 720–721
and industry preferences, 736–739
management approval, obtaining, 735
objectives, review of project, 720
and project constraints, 715–718
ranking of alternatives, 732
Trade-off phase (systems approach), 83
Trade studies, 786
Traditional (classical) organizational structure, 95–98
Traffic light reporting system, 391
and directing, 193
for key initiatives/practices, 348–349
of project manager, 157
and risk, 793
risk management, 754
Translation phase (systems approach), 83
Trends in project management, 927–947
continuous improvement, 937–941
do-it-yourself methodologies, 937
end-of-phase review meetings, 947
multiple projects, management of, 946–947
procedural documentation, development of, 932–936
project management maturity model, 928–932
Trend analysis, 901
Trophy Project (case study), 264–266
Trouble in Paradise (case study), 711–713
Truman's law, 248
Trust, 95, 130, 164, 217–218, 244
Tversky, Amos, 744
Tylenol poisonings, 971, 976–979, 983
Unallocated budget, 645
Uncertainty, decision-making under, 748–752
Uncooperativeness (in conflict resolution), 306
Understaffing, 286
Undistributed budget, 645
Unhappy, being, 291
Unified Project Management Methodology (UPMM™), 477–479
United Auto Workers, 844
U.S. Air Force, 55
Unit hours, 822
Unit one, 822
UPMM™ (Unified Project Management Methodology), 477–479
Usage variances (UV), 676, 677
Uzdelewicz, Wojtek, 1022
VAC, see Variance at completion
Validation of assumptions, 414–415
Value-added costs, 819
causes of variances, 661
and development of cost/schedule reporting system, 650–652
and earned value concept, 655–658
50/50 rule, 656
government subcontractors, 654
issues addressed in, 655
organization-level analysis, 664–665
parameters for, 659
program team analysis, 665–666
thresholds, variance, 650
Variance at completion (VAC), 659, 666
Vertical work flow, 4
Vested interest in projects, 392
Virtual project management offices, 53
Virtual project teams, 53, 352–354
Visual aids, 238
Von Braun's law of gravity, 248
Wage and salary administration, 80
Wald criterion, 750
Walkthroughs, 786
War rooms, 457
Wastes, seven, 919
“Watch lists,” 765
WBS, see Work breakdown structure
Weak matrix structures, 117
Weekly meetings, 238
Welch, Jack, 913
Westinghouse, 885
What-if analysis, 531
Williams Machine Tool Company (case study), 35–36
“Withdrawer” (employee role), 182
Withdrawing (in conflict resolution), 306
Work breakdown structure (WBS), 434–444, 468, 946
decomposition problems, 440–444
and risk identification, 759–760
setting up tasks in, 437
Workforce stability, 824
Work habits, 79
Work specialization, 825
Worthlessness, feelings of, 291
“Wrap-up” insurance, 758
Written communications, 238
Written media, 238
Yellow flag, 391
0/100 rule, 656
Zero-based budgeting, 633