Project Management A Strategic Managerial Approach [Rental Edition]

1 Projects in Contemporary Organizations 1

1.1 The Definition of a “Project” 2

1.2 Why Project Management? 9

1.3 The Project Life Cycle 16

1.4 The Structure of This Text 21

Project Management in Practice

A Unique Method for Traveler-Tracking at Copenhagen Airport 5

The Smart-Grid Revolution Starts in Boulder, Colorado 7

The Olympic Torch Relay Project 8

Turning London’s Waste Dump into the 2012 Olympics Stadium 19

Part I: Project Initiation

2 Strategic Management and Project Selection 28

2.1 Organizational Project Management and Governance 29

2.2 Project Selection Models 33

2.3 Project Portfolio Management (PPM) 47

Project Management in Practice

Taipei 101: Refitted as World’s Tallest Sustainable Building 37

Using a Project Portfolio to Achieve 100 percent On-Time Delivery at Decor Cabinet Company 49

Implementing Strategy through Projects at Blue Cross/ Blue Shield 50

CASE: Pan-Europa Foods S.A. 61

READING: From Experience: Linking Projects To Strategy 68

3 The Project Manager 77

3.1 Project Management and the Project Manager 78

3.2 Special Demands on the Project Manager 84

3.3 Attributes of Effective Project Managers 94

3.4 Problems of Cultural Differences 101

Project Management in Practice

The Project Management Career Path at AT&T 83

A Surprise “Director of Storm Logistics” for Katrina 85

Shanghai Unlucky with Passengers 90

The Wreckmaster at a New York Subway Accident 92

Lawrence Gamache, Wreckmaster 94

Growing Stress at Twitter 101

Success at Energo by Integrating Two Diverse Cultures 104

CASE: The National Jazz Hall of Fame 110

READING: Juggling Act 116

Chapter 3 Appendix: Primer on Effective Time Management (online)

4 Managing Conflict and the Art of Negotiation 118

4.1 Identifying and Analyzing Stakeholders 120

4.2 Conflict and the Project Life Cycle 122

4.3 Dealing with Conflict 129

4.4 The Nature of Negotiation 130

4.5 Partnering, Chartering, and Scope Change 131

4.6 Some Requirements and Principles of Negotiation 135

Project Management in Practice

Quickly Building a Kindergarten through Negotiation 120

Stakeholder Involvement at Nemours Children’s Hospital 123

A Consensus Feasibility Study for Montreal’s Archipel Dam 128

CASE: Negotiation in Action—The Quad Sensor Project 140

READING: Power of Persuasion 142

5 The Project in the Organizational Structure 145

5.1 Projects in a Functional Organization 147

5.2 Projects in a Projectized Organization 151

5.3 Projects in a Matrixed Organization 153

5.4 Projects in Composite Organizational Structures 158

5.5 Selecting a Project Form 159

5.6 The Project Management Office 160

5.7 The Project Team 169

5.8 Human Factors and the Project Team 171

Project Management in Practice

Reorganizing for Project Management at Prevost Car 150

Software Firm Yunio Avoids Complex Technologies 157

Trinatronic, Inc. 161

A Project Management Office Success for the Transportation Security Administration 164

South African Repair Success through Teamwork 172

CASE: Acorn Industries 180

READING: Four Steps to A Stronger PMO 184

Part II: Project Planning

6 Activity Planning: Traditional and Agile 187

6.1 Traditional Project Activity Planning 189

6.2 Agile Project Planning 208

6.3 Coordination Through Integration Management 214

Project Management in Practice

Beagle 2 Mars Probe a Planning Failure 188

Child Support Software a Victim of Scope Creep 194

Agile Project to Create Website Following Earthquake 211

Using Agile to Integrate Two Gas Pipeline Systems 212

The Current State of Agile Project Management 213

Trying to Install a Wind Farm in the Middle of the North Sea 215

An Acquisition Failure Questions Recommended Practice 216

CASE: Heublein: Planning a Project Management and Control System 222

READING: The Evolution of Agile 230

7 Budgeting and Risk Management 233

7.1 Estimating Project Budgets 234

7.2 Better Cost Estimating and Bidding 246

7.3 Project Risk Management 256

7.4 Quantitative Risk Assessment

Methodologies 266

Project Management in Practice

Pathfinder Mission to Mars—on a Shoestring 235

Convention Security: Project Success through Budget Recovery 238

Managing Costs at Massachusetts’ Neighborhood Health Plan 240

Habitat for Humanity Wins a Big One 244

The Emanon Aircraft Corporation 255

Risk Analysis vs. Budget/Schedule Requirements in Australia 258

Facebook Risks Interruption to Move a Terabyte 265

Ignoring Risk Contrasted with Recognizing Risk in Two Industries 269

Simulating the Failure of California’s Levees 270

CASE: Fuddruckers and the Crystal Coast Music Festival 286

READING: Building Resiliency 289

8 Scheduling 291

8.1 Background 291

8.2 Network Techniques: PERT and CPM 293

8.3 Risk Analysis Using Simulation with Crystal Ball® 322

8.4 Using These Tools 332

Project Management in Practice

Massachusetts’ Instant Bridges 293

Election Returns within Three Hours 300

Hosting the Annual Project Management Institute Symposium 320

Designing and Delivering a Rush Vehicle for War 331

CASE: NutriStar Energy, Inc. 342

READING: Without Further Delay 345

9 Resource Allocation 348

9.1 Critical Path Method—Crashing a Project 349

9.2 The Resource Allocation Problem 356

9.3 Resource Loading 359

9.4 Resource Leveling 362

9.5 Constrained Resource Scheduling 366

9.6 Goldratt’s Critical Chain 372

Project Management in Practice

Expediting Los Angeles Freeway Repairs after the Earthquake 349

Thirty Days to Rescue 357

Benefits of Resource Constraining at Pennsylvania Electric 371

Architectural Associates, Inc. 378

CASE: D. U. Singer Hospital Products Corp. 384

READING: Let The Games Begin—Now 387

Part III: Project Execution

10 Monitoring and Information Systems 389

10.1 The Planning–Monitoring–Controlling Cycle 390

10.2 Information Needs and Reporting 394

10.3 Earned Value Analysis 398

Project Management in Practice

Using Project Management Software to Schedule the Olympic Games 391

Using Earned Value to Monitor Governmental Archiving and Records Costs 404

Success through Earned Value at Texas Instruments 410

CASE: The Project Manager/Customer Interface 415

READING: Raise The Red Flags 418

11 Project Control 421

11.1 The Fundamental Purposes of Control 425

11.2 Three Types of Control Processes 427

11.3 The Design of Control Systems 436

11.4 Control of Change and Scope Creep 442

Project Management in Practice

Regaining Control of Nuclear Fusion 424

Extensive Controls for San Francisco’s Metro Turnback Project 427

Tracking Scope Creep: A Project Manager Responds 439

Major Scope Creep in Boston’s “Big Dig” 444

Better Control of Development Projects at Johnson Controls 445

CASE: The Project Manager/Customer Interface (B) 451

READING: Ford Motor Co.: Electrical/Electronic Systems Engineering 453

12 Project Auditing 459

12.1 Purposes of Evaluation—Goals of the System 460

12.2 The Project Audit 463

12.3 The Project Audit Life Cycle 469

12.4 Some Essentials of an Audit/Evaluation 472

12.5 Measurement 474

Project Management in Practice

Lessons from Auditing 110 Client/Server and Open Systems Projects 463

Auditing a Troubled Project at Atlantic States Chemical Laboratories 469

CASE: Theater High Altitude Area Defense (THAAD): Five Failures and Counting (B) 479

READING: An Assessment of Postproject Reviews 482

13 Project Closure and Benefits Realization 488

13.1 The Varieties of Project Closure 489

13.2 When to Close a Project 492

13.3 The Closure Process 497

13.4 The Final Report—A Project History 503

13.5 Benefits Realization 505

13.6 Afterword 507

Project Management in Practice

Nucor’s Approach to Closure by Addition 491

Twelve Hospital Handoff Projects 493

Terminating the Superconducting Super Collider Project 497

When You Have to Kill a Project 503

Author Index 511

Subject Index 513

Appendix A Probability and Statistics (online)

Appendix B Answers to Even-Numbered Problems (online)

Appendix C Technological Forecasting (online)

Appendix D Creativity and Idea Generation (online)

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