Project Management

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(r) 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)