Aaron, 80

Abernathy, 17

Abram, 130

Ackoff, 261

Action plan. See Planning

Activity. See also Scheduling

budgeting, 121

definition, 153

dummy, 155

pseudoactivity, 224–225

slack, 153, 158–159

time estimation. See also Time estimation

at the 90% and 95% levels, 163

deterministic, 153

expected time, 162

probabilistic (stochastic), 153, 162–165

standard deviation of, 162

variance of, 163

Activity-on-arrow (AOA), activity-on-node (AON). See Scheduling

Adams, 253

Adler, 227

Afzalur, 61

Aggregate project plan, 23–24. See also Project Portfolio Process

breakthrough projects, 23–24, 78

derivative projects, 23, 77

platform projects, 23, 78

R&D projects, 24

Uses, 24

Amor, 125

Analytical approach, 37

Atlantic States Chemical Laboratories, 291

Auditing, 283–287

behavioral aspects, 284–285

financial vs. project audits, 283–284

process of, 283–285

reports, 285–287

types of, 283

Australia's M5 East Tunnel, 99

Australian Parliament House project, 263

Autoweek, 63

Badiru, 125

Bailetti, 64

Bailey, 67

Baker, 289

Barr, 257

Baseline plan. See Planning

Benchmarking, 267, 270, 281

Beta distribution, 135, 162–163, 174, 309

BetaPERT distribution, 139

Block, 55

Boeing, 39

Bolles, 55

Booz-Allen Hamilton, 153

Boston's Big Dig, 130

Bracker, 79

Brainstorming, 82, 94

Bratta, 80

Brown, 94, 97

Budget. See also Cost

activity budgeting, 121

bottom-up, 116, 119

budgeting in practice, 133–134

changes,

causes, 131

handling changes, 133

cuts, impact of, 118–119

life cycle, impact of, 118–119

methods of, 113–115

monitoring, 112

multiproject, 121

negotiation process, 118–119

program budgeting, 121

revision, 130–133

risk management, 97–103

sub processes, 97–103

Failure Mode and Effect Analysis (FMEA), 98–99

Risk Priority Number (RPN), 99

top-down, 115–116, 119

uncertainty, 130–133

reasons for, 130–133

Business case, 76, 77

Buffers. See Critical chain

Bureau of Labor Statistics (BLS), 128, 133

Callahan, 64

Camm, 125

Central Arizona Project (CAP), 38

Central Limit Theorem. See Statistics

Change order, 133

Charter. See Project charter

Christensen, 260, 267

Chrysler, 49, 63

Cincinnati Enquirer, 262, 269

Cisco Systems, 27

Clark, 23

Comparative benefit selection method, 13

Communications, 38–39

of change, 93

on virtual projects, 39–40

Concurrent engineering, 63

Conflict and conflict resolution, 2, 4, 36, 38, 43, 54, 55, 59–62, 63–64

and the life cycle, 59–60

intrateam, 59–62

matrix team, 58–59

multidisciplinary team, 62–64

project evaluation, 282

sources of, 59

Conflict avoidance, 61

Conger, 44

Contingency plan, 102–103

Control

benchmarking, 267, 270

definition, 244, 260

mechanisms of, 263

milestone status reports, 264–265

plan-monitor-control cycle, 244–246

project baseline, 83, 246, 254, 257

project management maturity model, 56–57, 267

purposes of, 262–263

system design, 262–270

components of, 264

tools for control, 266–269

control charts, 268

critical ratio, 266–268

types of control systems, 264–265

cybernetic controls, 264

go/no-go controls, 264–265

post-project controls, 264–265

Cost. See also Budget

account numbers, 115

direct, 117

GS&A, 117

overhead, 117

perspectives on, 115

Cost estimation, 113, 117–122, 122–130

direct cost (work element costing), 117

errors, correcting for

bias, 127

random, 127

improving, 122–130

forms, 123

learning curve, 123–126

price information, 128

tracking signal, 126–128

mean absolute ratio (MAR), 128

influence of organizational climate, 129

overhead costs, 117

padding cost estimates, 230

Cost variance. See Earned value

Cox, 37, 227

CPM. See Scheduling

Crashing a project. See Resource allocation

Critical chain, 227–236

definition, 235

early completion time

“not reporting” simulation, 231–232

example, 231–232

feeding buffer, 235–236

multitasking, 231–233, 234

ProChain^®, 246

project buffers, 235

student syndrome, 188, 223, 230, 231, 234

Theory of Constraints, 227, 234

time buffers, 235

Critical path. See Scheduling

Critical Path Method (CPM). See Scheduling

Critical time. See Scheduling

Crystal Ball^®,* 134–143, See also, Simulation

Assumption cell, 136

CB User's Group, 136

Distribution Gallery, 137, 138–139

fitting statistical distribution to data, 248

Forecast cell, 137

simulation,

project selection, 134–143

networks, 174–177, 228–233

not reporting early task completion, 231–232

Decision Sciences Institute, (aka: American Institute of Decision Sciences), 261

Decision table (payoff matrix). See Risk management

Delphi Method, 26

Design Structure Matrix (DSM), 65–66

DiPietro, 64

Ditch Witch, 201

Discounted cash flows, 14–17

Dupont de Nemours, 153

Dvir, 281, 289

Earned value, 253–260

actual cost of work performed (AC), 255

baseline plan. See Planning

budget at completion (BAC), 257

conventions for calculations, 254–255

cost performance index (CPI), 255, 257

cost (spending) variance, 255–256

definition, 254

estimated (cost) at completion (EAC), 257

estimated (cost) to complete (ETC), 257

MSP calculations, 257–259

differences from PMI standards, 257–259

MSP estimate at completion (EAC), 257

MSP variance at completion (VAC), 257

planned (budgeted) cost of the work performed (EV), 254–255

planned (budgeted) cost of the work scheduled (PV), 255

schedule performance index (SPI), 255–256, 257

schedule variance, 255

Employee Involvement (EI), 66. See also Empowerment

Empowerment (work teams), 66–67

effectiveness of, 66–67

Enterprise project management. See Project-oriented organization

Eppinger, 66

Ethics, 19, 46, 54, 129

Evaluation, 280–282

conflict, 282

criteria for success, 281–282

measurement, 282

definition, 280

evaluation report, 281

post-project evaluation, 281

Evans, 125

Event (node)

definition, 153

Excel^®,

calculating probabilities, 172–173

resource loading display, 220

Solver, use of, 161

Expected value. See Risk management

Fast tracking, 205, 206

Fendley, 225

Fiat, 49

Flemming, 257

Flexibility, 9, 45, 53

Flynn, 39

Ford, 83

Functional project organization. See Organization

Gagnon, 41, 118

Gale, 27, 48

Gantt chart. See Scheduling

General Electric Co., 13

General Motors Co., 49, 63

Global competition, 3

Goldratt, 37, 186, 222, 227, 230

Gozinto chart, 84

Graham, 267

Grumman Aircraft. See Northrup-Grumman

Gupta, 267

Hamburger, 115

Harwell, 262

Hauptman, 64

Hayes, 17

Health Insurance Portability and Accountability Act (HIPAA), 115

Hertz, 99

Hertzberg, 58

Hierarchical planning process. See Planning

Hildebrand, 27

Hirji, 64

Hyunsberger, 68

Hurdle rate of return, 14, 16, 135

Hurricane Katrina, 143

Hussain, 228

Hyer, 94, 97

Ibbs, 57, 267

Ingram, 260, 289

Integration management, 62, 63–64

Interface coordination (Interface management), 62, 64–65

mapping, 64–65

ISO 9001, 56

Johnson Controls, 267, 281

Jones, 46

Kamburowksi, 162

Kandt, 269

Keefer, 162, 310

Kent, 68

Kimball, 291

Koppleman, 257

Knutson, 81

Kurstedt, 102

Kurtulus, 205

Kwak, 57, 267

Labor pools, 219

Langley, 76

Last Minute Panic (LMP), 261

Launch meeting. See Project launch meeting

Lawrence, 128, 161

Leads and lags, 186, 224

Learning curve, 123–126

Learning rate, 123–124

Lencioni, 58, 61, 64

Levy, 281, 289

Life cycle, 10–11, 22

budget, impact on, 118–119

managerial focus, 10–11

resource allocation, impact on, 226–227

S-shaped, 10

J-shaped, 10–11

Limerick nuclear power generator, 117

Line balancing, 221

Lockheed Martin Corp., 153

Logic chart, 103

Lubianiker, 56

Mallak, 102

Manage by exception, 4

Management by projects. See Project oriented management

Mandelbaum, 227

Mantel, 41, 118, 289

Mars Probe, 280

Martin, 81, 128

Matrix management. See Organization

McCarthy, 119–121, 122, 130

McLaughlin, 83

McMahon, 186

Mean absolute ratio (MAR), 128

Meetings, 40–41, 81–83, 252–254

guidelines, 251–252

launch. See Project launch meeting

Meredith, 125, 221, 248, 291

Micromanagement, 38, 85, 67, 201

Microsoft Excel^®*. See Excel^®

Microsoft Project^® (MSP),

earned value. See also Earned value calculations, 260

Gantt charts, 181–185, 224

strengths and weaknesses, 185

multiple project scheduling, 223–227

project calendar, 166, 169

reports, 251, 253

resource leveling, 213–221

resource loading, 207–213

loading display, 211

resource loading, leveling reports, 213–221

tracking a project, 246

use to build networks, 159–161

use to calculate critical path, time, and slack, 151–161

use to plan, 89–92

use in probabilistic networks, 166–172

Microsoft Word^®, 252

Milestone, 77, 153, 159, 185

definition, 153

Mind mapping. See Planning

Mindtree, 25

Mission, 3

Mission statement, 11, 77. See also Planning

Mixed form. See Organization

Monitoring

baseline, 246, 254, 255, 257

benefits of, 250–251

data collection, 247–249

analysis, 248–249

formats for reporting, 247

definition, 244

earned value. See Earned value

meetings, 251–254

objectives of, 244

plan-monitor-control cycle, 244–246

system design, 246

reports, 249–253

report timing, 249–250

types of, 249–251

updating reports, 249

virtual reports, 252–253

tracking a project, 246

Monte Carlo simulation. See Crystal Ball^® and Simulation

Multidisciplinary, 2, 5, 36

Multidisciplinary teams, 62–68

conflict, 62–68, 62–64

Multiple projects, 124

budgeting, 124

resource allocation and scheduling, 223–227. See also Resource allocation

Multitasking. See Critical chain

Mythical man month, 129

Name-only team, 61

Narula, 205

NASA, 112, 119

National Association of Industrial and Office Properties, 56

Negotiation, 5–6, 43–44, 59, 61, 92

budget, 118–119

life cycle, impact of, 118–119

plan, 92

win-lose, 5, 61

win-win, 5–6, 43, 61, 118

Net present value. See Discounted cash flows

Network. See Scheduling

Nguyen, 227

Nippon Sanso, Inc., 63

Nixon, 263

Node. See Event

Normal probability distribution table, 171

Northrop-Grumman Corp., 43

Nucor Corp., 289, 291

Operating/Competitive Necessity selection method, 13

Opportunity cost of capital, 16–18

Organization (of projects)

functional, 51–52

matrix, 52–55

advantages, 53–54

balanced, 53

disadvantages, 54–55

strong, 53

weak, 53

mixed form, 55

pure project, 49–51

Ortec International, 291

Participatory decision making/ management, 37, 83, 116, 66–67, 18–119

Paralysis by analysis, 76

Pasternak, 161

Path. See Scheduling

Patterson, 35

Patzak, 102

Pells, 79

Pennypacker, 56

People for the Ethical Treatment of Animals (PETA), 77

Persuasion, 44

PERT. See Scheduling

Peters, 76

Pinto, 58, 289

Philadelphia Transportation Authority (SEPTA), 79

Plan-monitor-control cycle, 244–246

Planning

project plan, 4, 10, 79–92

baseline plan, 83, 246, 254, 255, 263

contents of plan, 77–78

hierarchical planning process, 84–85

process, 81–85

rolling wave planning, 79

sequence (steps to plan), 80

sign-offs, 83

templates, 79, 87, 89, 90–91

whole-brain approach, 94–97

mind mapping, 94–97

work breakdown structure (WBS), 83–85, 116

process of constructing, 83–92

extensions of WBS, 85–92

forms, 87, 89

PM Network, 47

Portfolio management. See Aggregate project plan

Post-project evaluation. See Evaluation

Precedence diagramming. See Scheduling

Precedence of tasks, 86

Prentis, 79

Probability, 301–304

definition, 301–302

event relationships, 302–303

addition rule, 304

multiplication rule, 303

laws, 302–304

standard distributions, 309

types of, 301–302

Procter & Gamble, 2

Program, 2, 37

budgeting, 121

Program evaluation and review technique (PERT). See Scheduling

Project

as a system, 37

breakthrough, 23–24, 78

calendar, 166, 169

characteristics, 1–2

Charter, 76–79, 83, 112

definition, 2

derivative, 23, 77

goals (scope), 7–9, 11

time, cost scope, 7–9

quality, 7

milestones, 153, 159

platform, 23, 78

portfolio, 32–27

purpose of, 1–2

quality, See Project, goals

R&D, 24

resource constrained, 201

reports. See Monitoring

slack, 158–159

time constrained, 201

vs. nonprojects, 4–5

why use, 2

Project audit. See Auditing

Project champion, 40, 56, 58, 81

Project Charter, 76–79, 83, 112

Project control. See Control

Project evaluation. See Evaluation

Project final report. See Termination

Project history (project final report), 249, 292–293

Projectitis, 51

Projectizing, 3

Project launch meeting, 35, 81–83

outcomes of, 81–83

Project management maturity, 3, 56

Project Management Body of Knowledge (PMBOK), 2, 4, 8, 22, 47, 56, 77, 92, 115, 130, 134, 249, 255, 257, 267, 270,

Project Management Institute (PMI), 2, 19, 46–47, 46, 47, 130, 257, 280

PMI Certification, 47

PMI Code of Ethics, 19, 46, 102, 129

Project Management Journal, 47

Project management maturity model, 56–57, 267

Project management office (PMO), 3, 8, 23, 23, 56, 59

Enterprise project management office (EPMO) (aka: Corporate proj. mgt. office, CPMO), 56

Project management v. general management, 4

Project manager

authority, 4–6

career, 35–36, 47–48, 48–49

responsibilities, 4–6, 38, 41–44

acquiring resources, 41–42

firefighting, 42

leadership, 42–43

making trade-offs, 42–43

negotiation, conflict resolution, persuasion, 43–44

roles, 36–41

communicator, 38–39

facilitator, 36–38

primary role, 7, 9

v. supervr, 36–37

selection of, 11–22, 44, 44–46

required characteristics, 44–46

credibility, 44–45

sensitivity, interpersonal and political, 45, 58

Project monitoring. See Monitoring

Project office. See Project management office

Project oriented organization, 11, 47

Project Portfolio Process, 22–27. See also Aggregate project planning

Project Council, 23, 27

Project scope, 4, 7, 77, 81, 131, 133, 269–271

Project selection, 11–22

non-numeric methods, 12–13

comparative benefits, 13

operating/competitive necessity, 13

sacred cow, 12

numeric methods, 13–22

financial assessment, 13–17

payback period, 14

discounted cash flow, 14–17

financial options and opportunity costs, 18

scoring methods, 19–22

unweighted 0–1 method, 19

weighted factor method, 20–22, 23

risk management, 134–143

simulation, 134–143

Project success, 281, 289. See also Evaluation and Termination

Project team, 57–62. See also Multidisciplinary teams

characteristics of effective team, 57–58

matrix team problems, 58–59

Project termination. See Termination

Project uncertainty. See Risk management

Pseudoactivities, 224–225

Pudong International Airport, 78

Pure project. See Organization

Q-sort, 13

Quality circles (QC), 66. See also Empowerment

Quasi-projects, 3

Queues (waiting lines), 226

length of queue, formula, 226

Q-sort, 13–14

RACI Matrix, 92–93

Random number generation. See Excel^® and Crystal Ball^®

Reif, 79

Reith, 269

Remy, 57

Required rate of return. See Hurdle rate of return

Resource allocation. See also Scheduling

borrowing resources, 226–227

constrained resources, 222

priority rules, 222–223

criteria for choice, 223, 225

Walts, 222, 225, 234

Critical Path Method (CPM), 201–207

crashing a project, 201–205

descheduling, 226–227

expediting in practice, 205

life cycle, impact of, 227

multiple projects, 223–227

multiple project scheduling, 224–227

using Microsoft Project^®, 224–225

priority rules, 212–213, 225, 226–227

resource availability calendar, 209, 210, 213

resource leveling, 213–221

using Microsoft Project^®, 213–221

under uncertainty, 219–221

resource loading, 207–212

Microsoft Project^® display, 209, 211

monitoring, 212

under uncertainty, 219–221

resource loading, leveling reports, 213–219

resource pools, 219

resource usage

standard practice, 201–202

Resource calendar. See Resource allocation

Resource constraints. See Resource allocation

Resource leveling. See Resource allocation

Resource loading. See Resource allocation

Responsible, Accountable, Consult, Informed matrix. See RACI matrix

Return on investment, 14

Risk analysis, 8, 134

Risk management, 97–104, 134–143

contingency planning, 78, 102–103

decision table (payoff matrix), 19–20, 100–102

disaster, 143

expected value, 100–102, 143

Failure Mode and Effect Analysis (FMEA), 98–99

Risk Priority Number (RPN), 99

outcome estimates, 100

path merge calculation problem, 173–174

probability of path (project) completion, 166–172

probabilistic activity times, 163–165

quantitative risk analysis, 99–102

risk identification, 98

scenario analysis, 98

risk management planning, 98

risk monitoring and control, 103

risk profile, 8, 99, 135

risk register, 8

risk response, 102

scheduling, 162–173

simulation. See Simulation

uncertain activity times. See Activity

uncertainty of critical path and time, 164

San Francisco Metro Turnback project, 262

Sacred cow selection method, 12–13

Sarbanes-Oxley Act (SOX), 115

Schedule variance. See Earned value

Scheduling. See also Activity

activity slack, 158–159

computer, use of, 159–161, 165–172

crashing a project. See Resource Allocation

critical path, 153, 156–158

definition, 153

critical path method (CPM), 153–158, 201–205. See also Resource Allocation

critical time, 153, 156–158

definition, 153

definition of terms, 152–153

earliest start (finish) time (ES, EF), 156–158

Gantt chart, 178–182

construction of, 181

strengths and weaknesses, 185

using MSP, 178–185

latest start (finish) time (LS, LF), 156–158

Microsoft Project, use of, 159–161

constructing network, 159–161, 165–166

constructing Gantt chart, 181–185

precedence diagramming, 186–187

multiple projects. See Resource allocation

network (AOA and AON), 154

construction, 154–157

definition, 153

slack, 158–159

path merge problem, 173–174, 177

precedence diagramming, 186–187

linkages defined, 186–187

probability of project or path completion, 166–172

project (network) slack, 159

program evaluation and review technique (PERT), 98, 153–159

simulating a schedule. See Simulation

slack calculation, 158–159

free slack, 161

total slack, 161

sources of problems for schedules, 234–235

Schwerer, 227

Scope creep (change), 39, 44, 59, 119

change control system, 269–271

control of change, 269–271

reasons for, 131, 133. See also Project selection

Selection. See Project selection

Self-directed teams (SDT), 66. See also Empowerment

Self-directed work teams (SDWT), 66. See also Empowerment

Self-managed teams (SMT), 66. See also Empowerment

SEPTA (Philadelphia Transit Authority), 79

Shafer, 125, 221

Sheffi, 143

Shenhar, 45–46, 281, 289

Simulation. See also Crystal Ball^®

Monte Carlo simulation, 8, 102, 134–143, 174–181, 228–233, 231–232

Incorporating costs, 177–179

project network simulation Crystal Ball^®, 174–181

vs. statistical analysis, 179–181

Simon, 99

Six Sigma, 66

Slack (aka: float). See Scheduling and Activity

Slevin, 58

Smith, 80

Statistics, 304–309

Central Limit Theorem, 170, 307–308

descriptive statistics, 305–306

inferential statistics, 305, 307–308

measures of central tendency: mean, median, mode, 306

measures of dispersion

range, 306

sample mean, 306

sample standard deviation, 307

sample variance, 307

normal probability distribution table, 171

path merge probability calculation, 173–174, 179–180

population mean (μ), 306

population standard deviation (σ), 307

population variance (σ²), 307

statistical independence, 179

stochastic, 166

Strategy, 3

Student syndrome, 188, 222, 230, 231, 234

Suboptimization, 54, 64

Subtask, 2

Superconducting supercollider (SSC), 289

Systems approach, 37–38

Systems engineering. See Concurrent engineering

Task, 2

predecessors, successors, 86, 85–90

Tate, 81

Teplitz, 125

Termination, 288–293

criteria for, 288–289

failure, 288–289

success, 281, 289

project final report (history), 249, 292–293

contents of, 292–293

manager, 290–291, 292

process, 290–291

timing of, 288–289

types of, 289–290

Texas Instruments Inc., 55, 260

Thamhain, 59, 60, 267

Theory of Constraints, 227, 234

Thermos Co., 63

Thomas, 99

Time estimation

at the 90% and 95% levels, 163

deterministic, 153

expected time, 162

improving, 122–130

errors, correcting for

bias, 127

random, 127

learning curve, 123–126

tracking signal, 126–128

mean absolute ratio (MAR), 128

probabilistic (stochastic), 162–165

standard deviation of, 162

variance of, 163

3M Corp., 289

Toney, 267

Total quality management (TQM), 66. See also Empowerment

Tracking signal, 126–128

mean absolute ratio, 128

Trade-offs, 7–9, 42–43, 97

influence of organizational climate on, 42–43

project vs. project, 223–227

resources vs. time, 201–207

Transdisciplinary teams. See Multidisciplinary teams

Trends in Project Management, 3

Triangular distribution, 135

Trust, 40, 63

Uncertainty, 7–9, 134–143, 130–133 See also Risk management

United Kingdom Child Support Agency, 270–271

United States Department of Commerce, 128

United States Federal Transportation Security Administration, 56

United States Navy, 153

Unity of Command, 54

Verdini, 162, 310

ViewStar Corporation, 260

Virtual projects, 3, 67

Virtual projects manager, 39–40

communications, 39–40

meetings. See Monitoring

reports. See Monitoring

Walt Disney Co., 59

Walts, 222, 225, 234

War room, 59. See also Project management office

Wearne, 228

Webster, 79

Wheatly, 25, 119, 289

Wheelwright, 23

Whole-brain planning, See Planning

Wilemon, 60

Win-win, 5–6, 118

Womer, 125

Work breakdown structure (WBS). See Planning

Work teams, 66–67. See also Multidisciplinary teams

World Trade Center, 143

Wu, 262

Young Men's Christian Association (YMCA), 166–169