Contents

Preface

1 OVERVIEW

1.0 Introduction

1.1 Understanding Project Management

1.2 Defining Project Success

1.3 The Project Manager–Line Manager Interface

1.4 Defining the Project Manager's Role

1.5 Defining the Functional Manager's Role

1.6 Defining the Functional Employee's Role

1.7 Defining the Executive's Role

1.8 Working with Executives

1.9 The Project Manager as the Planning Agent

1.10 Project Champions

1.11 The Downside of Project Management

1.12 Project-Driven versus Non–Project-Driven Organizations

1.13 Marketing in the Project-Driven Organization

1.14 Classification of Projects

1.15 Location of the Project Manager

1.16 Differing Views of Project Management

1.17 Concurrent Engineering: A Project Management Approach

1.18 Studying Tips for the PMI® Project Management Certification Exam

Problems

Case Study
Williams Machine Tool Company

2 PROJECT MANAGEMENT GROWTH: CONCEPTS AND DEFINITIONS

2.0 Introduction

2.1 General Systems Management

2.2 Project Management: 1945–1960

2.3 Project Management: 1960–1985

2.4 Project Management: 1985–2009

2.5 Resistance to Change

2.6 Systems, Programs, and Projects: A Definition

2.7 Product versus Project Management: A Definition

2.8 Maturity and Excellence: A Definition

2.9 Informal Project Management: A Definition

2.10 The Many Faces of Success

2.11 The Many Faces of Failure

2.12 The Stage-Gate Process

2.13 Project Life Cycles

2.14 Gate Review Meetings (Project Closure)

2.15 Project Management Methodologies: A Definition

2.16 Organizational Change Management and Corporate Cultures

2.17 Project Management Intellectual Property

2.18 Systems Thinking

2.19 Studying Tips for the PMI® Project Management Certification Exam

Problems

3 ORGANIZATIONAL STRUCTURES

3.0 Introduction

3.1 Organizational Work Flow

3.2 Traditional (Classical) Organization

3.3 Developing Work Integration Positions

3.4 Line-Staff Organization (Project Coordinator)

3.5 Pure Product (Projectized) Organization

3.6 Matrix Organizational Form

3.7 Modification of Matrix Structures

3.8 The Strong, Weak, Balanced Matrix

3.9 Center for Project Management Expertise

3.10 Matrix Layering

3.11 Selecting the Organizational Form

3.12 Structuring the Small Company

3.13 Strategic Business Unit (SBU) Project Management

3.14 Transitional Management

3.15 Studying Tips for the PMI® Project Management Certification Exam

Problems

Case Study
Jones and Shephard Accountants, Inc.

4 ORGANIZING AND STAFFING THE PROJECT OFFICE AND TEAM

4.0 Introduction

4.1 The Staffing Environment

4.2 Selecting the Project Manager: An Executive Decision

4.3 Skill Requirements for Project and Program Managers

4.4 Special Cases in Project Manager Selection

4.5 Selecting the Wrong Project Manager

4.6 Next Generation Project Managers

4.7 Duties and Job Descriptions

4.8 The Organizational Staffing Process

4.9 The Project Office

4.10 The Functional Team

4.11 The Project Organizational Chart

4.12 Special Problems

4.13 Selecting the Project Management Implementation Team

4.14 Studying Tips for the PMI® Project Management Certification Exam

Problems

5 MANAGEMENT FUNCTIONS

5.0 Introduction

5.1 Controlling

5.2 Directing

5.3 Project Authority

5.4 Interpersonal Influences

5.5 Barriers to Project Team Development

5.6 Suggestions for Handling the Newly Formed Team

5.7 Team Building as an Ongoing Process

5.8 Dysfunctions of a Team

5.9 Leadership in a Project Environment

5.10 Life-Cycle Leadership

5.11 Organizational Impact

5.12 Employee–Manager Problems

5.13 Management Pitfalls

5.14 Communications

5.15 Project Review Meetings

5.16 Project Management Bottlenecks

5.17 Communication Traps

5.18 Proverbs and Laws

5.19 Human Behavior Education

5.20 Management Policies and Procedures

5.21 Studying Tips for the PMI® Project Management Certification Exam

Problems

Case Studies
The Trophy Project

Leadership Effectiveness (A)

Leadership Effectiveness (B)

Motivational Questionnaire

6 MANAGEMENT OF YOUR TIME AND STRESS

6.0 Introduction

6.1 Understanding Time Management

6.2 Time Robbers

6.3 Time Management Forms

6.4 Effective Time Management

6.5 Stress and Burnout

6.6 Studying Tips for the PMI® Project Management Certification Exam

Problems

Case Study
The Reluctant Workers

7 CONFLICTS

7.0 Introduction

7.1 Objectives

7.2 The Conflict Environment

7.3 Conflict Resolution

7.4 Understanding Superior, Subordinate, and Functional Conflicts

7.5 The Management of Conflicts

7.6 Conflict Resolution Modes

7.7 Studying Tips for the PMI® Project Management Certification Exam

Problems

Case Studies
Facilities Scheduling at Mayer Manufacturing

Telestar International

Handling Conflict in Project Management

8 SPECIAL TOPICS

8.0 Introduction

8.1 Performance Measurement

8.2 Financial Compensation and Rewards

8.3 Critical Issues with Rewarding Project Teams

8.4 Effective Project Management in the Small Business Organization

8.5 Mega Projects

8.6 Morality, Ethics, and the Corporate Culture

8.7 Professional Responsibilities

8.8 Internal Partnerships

8.9 External Partnerships

8.10 Training and Education

8.11 Integrated Product/Project Teams

8.12 Virtual Project Teams

8.13 Breakthrough Projects

8.14 Studying Tips for the PMI® Project Management Certification Exam

Problems

9 THE VARIABLES FOR SUCCESS

9.0 Introduction

9.1 Predicting Project Success

9.2 Project Management Effectiveness

9.3 Expectations

9.4 Lessons Learned

9.5 Understanding Best Practices

9.6 Studying Tips for the PMI® Project Management Certification Exam

Problems

10 WORKING WITH EXECUTIVES

10.0 Introduction

10.1 The Project Sponsor

10.2 Handling Disagreements with the Sponsor

10.3 The Collective Belief

10.4 The Exit Champion

10.5 The In-House Representatives

10.6 Studying Tips for the PMI® Project Management Certification Exam

Problems

Case Study
Corwin Corporation

11 PLANNING

11.0 Introduction

11.1 Validating the Assumptions

11.2 General Planning

11.3 Life-Cycle Phases

11.4 Proposal Preparation

11.5 Kickoff Meetings

11.6 Understanding Participants' Roles

11.7 Project Planning

11.8 The Statement of Work

11.9 Project Specifications

11.10 Milestone Schedules

11.11 Work Breakdown Structure

11.12 WBS Decomposition Problems

11.13 Role of the Executive in Project Selection

11.14 Role of the Executive in Planning

11.15 The Planning Cycle

11.16 Work Planning Authorization

11.17 Why Do Plans Fail?

11.18 Stopping Projects

11.19 Handling Project Phaseouts and Transfers

11.20 Detailed Schedules and Charts

11.21 Master Production Scheduling

11.22 Project Plan

11.23 Total Project Planning

11.24 The Project Charter

11.25 Management Control

11.26 The Project Manager–Line Manager Interface

11.27 Fast-Tracking

11.28 Configuration Management

11.29 Enterprise Project Management Methodologies

11.30 Project Audits

11.31 Studying Tips for the PMI® Project Management Certification Exam

Problems

12 NETWORK SCHEDULING TECHNIQUES

12.0 Introduction

12.1 Network Fundamentals

12.2 Graphical Evaluation and Review Technique (GERT)

12.3 Dependencies

12.4 Slack Time

12.5 Network Replanning

12.6 Estimating Activity Time

12.7 Estimating Total Project Time

12.8 Total PERT/CPM Planning

12.9 Crash Times

12.10 PERT/CPM Problem Areas

12.11 Alternative PERT/CPM Models

12.12 Precedence Networks

12.13 Lag

12.14 Scheduling Problems

12.15 The Myths of Schedule Compression

12.16 Understanding Project Management Software

12.17 Software Features Offered

12.18 Software Classification

12.19 Implementation Problems

12.20 Critical Chain

12.21 Studying Tips for the PMI® Project Management Certification Exam

Problems

Case Study
Crosby Manufacturing Corporation

13 PROJECT GRAPHICS

13.0 Introduction

13.1 Customer Reporting

13.2 Bar (Gantt) Chart

13.3 Other Conventional Presentation Techniques

13.4 Logic Diagrams/Networks

13.5 Studying Tips for the PMI® Project Management Certification Exam

Problems

14 PRICING AND ESTIMATING

14.0 Introduction

14.1 Global Pricing Strategies

14.2 Types of Estimates

14.3 Pricing Process

14.4 Organizational Input Requirements

14.5 Labor Distributions

14.6 Overhead Rates

14.7 Materials/Support Costs

14.8 Pricing Out the Work

14.9 Smoothing Out Department Man-Hours

14.10 The Pricing Review Procedure

14.11 Systems Pricing

14.12 Developing the Supporting/Backup Costs

14.13 The Low-Bidder Dilemma

14.14 Special Problems

14.15 Estimating Pitfalls

14.16 Estimating High-Risk Projects

14.17 Project Risks

14.18 The Disaster of Applying the 10 Percent Solution to Project Estimates

14.19 Life-Cycle Costing (LCC)

14.20 Logistics Support

14.21 Economic Project Selection Criteria: Capital Budgeting

14.22 Payback Period

14.23 The Time Value of Money

14.24 Net Present Value (NPV)

14.25 Internal Rate of Return (IRR)

14.26 Comparing IRR, NPV, and Payback

14.27 Risk Analysis

14.28 Capital Rationing

14.29 Project Financing

14.30 Studying Tips for the PMI® Project Management Certification Exam

Problems

15 COST CONTROL

15.0 Introduction

15.1 Understanding Control

15.2 The Operating Cycle

15.3 Cost Account Codes

15.4 Budgets

15.5 The Earned Value Measurement System (EVMS)

15.6 Variance and Earned Value

15.7 The Cost Baseline

15.8 Justifying the Costs

15.9 The Cost Overrun Dilemma

15.10 Recording Material Costs Using Earned Value Measurement

15.11 The Material Accounting Criterion

15.12 Material Variances: Price and Usage

15.13 Summary Variances

15.14 Status Reporting

15.15 Cost Control Problems

15.16 Studying Tips for the PMI® Project Management Certification Exam

Problems

Case Studies
The Bathtub Period

Franklin Electronics

Trouble in Paradise

16 TRADE-OFF ANALYSIS IN A PROJECT ENVIRONMENT

16.0 Introduction

16.1 Methodology for Trade-off Analysis

16.2 Contracts: Their Influence on Projects

16.3 Industry Trade-off Preferences

16.4 Conclusion

16.5 Studying Tips for the PMI® Project Management Certification Exam

17 RISK MANAGEMENT

17.0 Introduction

17.1 Definition of Risk

17.2 Tolerance for Risk

17.3 Definition of Risk Management

17.4 Certainty, Risk, and Uncertainty

17.5 Risk Management Process

17.6 Plan Risk Management

17.7 Risk Identification

17.8 Risk Analysis

17.9 Qualitative Risk Analysis

17.10 Quantitative Risk Analysis

17.11 Probability Distributions and the Monte Carlo Process

17.12 Plan Risk Response

17.13 Monitoring and Control Risks

17.14 Some Implementation Considerations

17.15 The Use of Lessons Learned

17.16 Dependencies between Risks

17.17 The Impact of Risk Handling Measures

17.18 Risk and Concurrent Engineering

17.19 Studying Tips for the PMI® Project Management Certification Exam

Problems

Case Studies
Teloxy Engineering (A)

Teloxy Engineering (B)

18 LEARNING CURVES

18.0 Introduction

18.1 General Theory

18.2 The Learning Curve Concept

18.3 Graphic Representation

18.4 Key Words Associated with Learning Curves

18.5 The Cumulative Average Curve

18.6 Sources of Experience

18.7 Developing Slope Measures

18.8 Unit Costs and Use of Midpoints

18.9 Selection of Learning Curves

18.10 Follow-on Orders

18.11 Manufacturing Breaks

18.12 Learning Curve Limitations

18.13 Prices and Experience

18.14 Competitive Weapon

18.15 Studying Tips for the PMI® Project Management Certification Exam

Problems

19 CONTRACT MANAGEMENT

19.0 Introduction

19.1 Procurement

19.2 Plan Procurement

19.3 Conducting the Procurements

19.4 Conduct Procurements: Request Seller Responses

19.5 Conduct Procurements: Select Sellers

19.6 Types of Contracts

19.7 Incentive Contracts

19.8 Contract Type versus Risk

19.9 Contract Administration Cycle

19.10 Contract Closure

19.11 Using a Checklist

19.12 Proposal-Contractual Interaction

19.13 Summary

19.14 Studying Tips for the PMI® Project Management Certification Exam

20 QUALITY MANAGEMENT

20.0 Introduction

20.1 Definition of Quality

20.2 The Quality Movement

20.3 Comparison of the Quality Pioneers

20.4 The Taguchi Approach

20.5 The Malcolm Baldrige National Quality Award

20.6 ISO 9000

20.7 Quality Management Concepts

20.8 The Cost of Quality

20.9 The Seven Quality Control Tools

20.10 Process Capability (CP)

20.11 Acceptance Sampling

20.12 Implementing Six Sigma

20.13 Lean Six Sigma and DMAIC

20.14 Quality Leadership

20.15 Responsibility for Quality

20.16 Quality Circles

20.17 Just-in-Time Manufacturing (JIT)

20.18 Total Quality Management (TQM)

20.19 Studying Tips for the PMI® Project Management Certification Exam

21 MODERN DEVELOPMENTS PROJECT MANAGEMENT

21.0 Introduction

21.1 The Project Management Maturity Model (PMMM)

21.2 Developing Effective Procedural Documentation

21.3 Project Management Methodologies

21.4 Continuous Improvement

21.5 Capacity Planning

21.6 Competency Models

21.7 Managing Multiple Projects

21.8 End-of-Phase Review Meetings

22 THE BUSINESS OF SCOPE CHANGES

22.0 Introduction

22.1 Need for Business Knowledge

22.2 Timing of Scope Changes

22.3 Business Need for a Scope Change

22.4 Rationale for Not Approving a Scope Change

23 THE PROJECT OFFICE

23.0 Introduction

23.1 Present-Day Project Office

23.2 Implementation Risks

23.3 Types of Project Offices

23.4 Networking Project Management Offices

23.5 Project Management Information Systems

23.6 Dissemination of Information

23.7 Mentoring

23.8 Development of Standards and Templates

23.9 Project Management Benchmarking

23.10 Business Case Development

23.11 Customized Training (Related to Project Management)

23.12 Managing Stakeholders

23.13 Continuous Improvement

23.14 Capacity Planning

23.15 Risks of Using a Project Office

24 MANAGING CRISIS PROJECTS

24.0 Introduction

24.1 Understanding Crisis Management

24.2 Ford versus Firetone

24.3 The Air France Concorde Crash

24.4 Intel and the Pentium Chip

24.5 The Russian Submarine Kursk

24.6 The Tylenol Poisonings

24.7 Nestlé's Marketing of Infant Formula

24.8 The Space Shuttle Challenger Disaster

24.9 The Space Shuttle Columbia Disaster

24.10 Victims versus Villains

24.11 Life-Cycle Phases

24.12 Project Management Implications

25 THE RISE, FALL, AND RESURRECTION OF IRIDIUM: A PROJECT MANAGEMENT PERSPECTIVE

25.0 Introduction

25.1 Naming the Project “Iridium”

25.2 Obtaining Executive Support

25.3 Launching the Venture

25.4 The Iridium System

25.5 The Terrestial and Space-Based Network

25.6 Project Initiation: Developing the Business Case

25.7 The “Hidden” Business Case

25.8 Risk Management

25.9 The Collective Belief

25.10 The Exit Champion

25.11 Iridium's Infancy Years

25.12 Debt Financing

25.13 The M-Star Project

25.14 A New CEO

25.15 Satellite Launches

25.16 An Initial Public Offering (IPO)

25.17 Signing up Customers

25.18 Iridium's Rapid Ascent

25.19 Iridium's Rapid Descent

25.20 The Iridium “Flu”

25.21 Searching for a White Knight

25.22 The Definition of Failure (October, 1999)

25.23 The Satellite Deorbiting Plan

25.24 Iridium Is Rescued for $25 Million

25.25 Epilogue

25.26 Shareholder Lawsuits

25.27 The Bankruptcy Court Ruling

25.28 Autopsy

25.29 Financial Impact of the Bankruptcy

25.30 What Really Went Wrong?

25.31 Lessons Learned

25.32 Conclusion

Appendix A. Solutions to the Project Management Conflict Exercise

Appendix B. Solution to Leadership Exercise

Appendix C. Dorale Products Case Studies

Appendix D. Solution to the Dorale Products Case Studies Answers

Appendix E. Crosslisting of PMBOK® to the Text

Author Index

Subject Index

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