Table of Contents
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 Agile Project Management 21
1.5 The Structure of this Text 26
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 Project Strategy and Selection 37
2.1 Organizational Project Management and Governance 38
2.2 Project Selection Models 43
2.3 Project Portfolio Management (PPM) 57
Project Management In Practice
Beagle 2 Mars Probe - A Planning Failure 38
Taipei 101: Refitted as World’s Tallest Sustainable Building 47
Using a Project Portfolio to Achieve 100 Percent On-Time Delivery at Decor Cabinet Company 59
Implementing Strategy through Projects at Blue Cross/Blue Shield 61
Case: MDCM, Inc. (B): Strategic IT Portfolio Management 72
Reading: From Experience: Linking Projects to Strategy 74
3 The Project Manager 83
3.1 Project Management and the Project Manager 84
3.2 Special Demands on the Project Manager 90
3.3 Attributes of Effective Project Managers 98
3.4 Problems of Cultural Differences 105
Project Management In Practice
The Project Management Career Path at AT&T 89
Shanghai Unlucky with Passengers 96
Growing Stress at Twitter 104
Success at Energo by Integrating Two Diverse Cultures 108
Cases: Two Emergency Projects and PMs 114
Reading: Juggling Act 117
Chapter 3 Appendix: Primer on Effective TimeManagement (Online)
4 Managing for Stakeholders and Resolving Conflicts 119
4.1 Identifying and Analyzing Stakeholders 121
4.2 Conflicts and the Project Life Cycle 124
4.3 Dealing with Conflicts 128
4.4 The Nature of Negotiation 130
4.5 Partnering, Chartering, and Scope Change 133
Project Management In Practice
Agile Project to Create Website Following Earthquake 121
Stakeholder Involvement at Nemours Children’s Hospital 124
A Consensus Feasibility Study for Montreal’s Archipel Dam 129
Quickly Building a Kindergarten through Negotiation 132
Case 4.1: Winds of Change in Klickitat County: The Harvest Wind Project 139
Case 4.2: Negotiation in Action - The Quad Sensor Project 145
Reading: Roll Call 146
5 The Project in the Organizational Structure 148
5.1 Projects in a Functional Organization 150
5.2 Projects in a Projectized Organization 153
5.3 Projects in a Matrixed Organization 155
5.4 Projects in Composite Organizational Structures 161
5.5 Selecting a Project Form 162
5.6 The Project Management Office 163
5.7 The Project Team 172
5.8 Human Factors and the Project Team 177
Project Management In Practice
Reorganizing for Project Management at Prevost Car 153
Software Firm Yunio Avoids Complex Technologies 160
Trinatronic, Inc. 164
A Project Management Office Success for the Transportation Security Administration 167
Convention Security: Project Success through Budget Recovery 169
South African Repair Success through Teamwork 178
Case: Acorn Industries 185
Reading: Four Steps to a Stronger PMO 188
Part II: Project Planning
6 Activity Planning: Traditional and Agile 193
6.1 Traditional Project Activity Planning 195
6.2 Agile Project Planning 213
6.3 Coordination through Integration Management 221
Project Management In Practice
Child Support Software a Victim of Scope Creep 200
Using Agile to Integrate Two Gas Pipeline Systems 215
The Current State of Agile Project Management 216
An Acquisition Failure Questions Recommended Practice 222
Case: Heublein: Planning a Project Management and Control System 228
Reading: The Evolution of Agile 236
7 Budgeting and Risk Management 239
7.1 Estimating Project Budgets 240
7.2 Better Cost Estimating and Bidding 251
7.3 Project Risk Management 261
7.4 Quantitative Risk Assessment Methodologies 271
Project Management In Practice
Pathfinder Mission to Mars - on a Shoestring 241
The Emanon Aircraft Corporation 260
Facebook Risks Interruption to Move a Terabyte 270
Ignoring Risk Contrasted with Recognizing Risk in Two Industries 274
Simulating the Failure of California’s Levees 275
Case: Fuddruckers and the Crystal Coast Music Festival 291
Reading: Building Resiliency 294
8 Scheduling 297
8.1 Background 297
8.2 Network Techniques: PERT and CPM 299
8.3 Risk Analysis Using Simulation with Crystal Ball® 328
8.4 Using these Tools 338
8.5 Scheduling with Scrum 339
Project Management In Practice
Massachusetts’ Instant Bridges 298
Election Returns within Three Hours 306
Hosting the Annual Project Management Institute Symposium 326
Designing and Delivering a Rush Vehicle for War 337
Case: NutriStar Energy, Inc. 351
Reading: Without Further Delay 353
9 Resource Allocation 356
9.1 Critical Path Method - Crashing a Project 357
9.2 The Resource Allocation Problem 364
9.3 Resource Loading 366
9.4 Resource Leveling 370
9.5 Constrained Resource Scheduling 374
9.6 Goldratt’s Critical Chain 380
Project Management In Practice
Expediting Los Angeles Freeway Repairs after the Earthquake 357
Thirty Days to Rescue 365
Benefits of Resource Constraining at Pennsylvania Electric 379
Architectural Associates, Inc. 386
Case: D. U. Singer Hospital Products Corp. 392
Reading: Let the Games Begin - Now 395
Part III: Project Execution
10 Monitoring and Information Systems 399
10.1 The Planning-Monitoring-Controlling Cycle 400
10.2 Information Needs and Reporting 404
10.3 Earned Value Analysis 409
10.4 Agile Tools for Tracking Project Progress 421
Project Management In Practice
Using Project Management Software to Schedule the Olympic Games 401
Managing Costs at Massachusetts’ Neighborhood Health Plan 405
Using Earned Value to Monitor Governmental Archiving and Records Costs 415
Success through Earned Value at Texas Instruments 420
Case: The Project Manager/Customer Interface 428
Reading: Raise the Red Flags 431
11 Project Control 433
11.1 The Fundamental Purposes of Control 436
11.2 Three Types of Control Processes 438
11.3 The Design of Control Systems 448
11.4 Control of Change and Scope Creep 455
Project Management In Practice
Major Scope Creep in Boston’s “Big Dig” 436
Extensive Controls for San Francisco’s Metro Turnback Project 439
Tracking Scope Creep: A Project Manager Responds 451
Better Control of Development Projects at Johnson Controls 457
Case: The Project Manager/Customer Interface (B) 464
Reading: Delivery Dilemma: Here’s How to Choose the Right Approach for a Project 465
12 Project Auditing 468
12.1 Purposes of Evaluation - Goals of the System 469
12.2 The Project Audit 472
12.3 The Project Audit Life Cycle 479
12.4 Some Essentials of an Audit/Evaluation 483
12.5 Measurement 485
Project Management In Practice 470
Risk Analysis vs. Budget/Schedule Requirements in Australia 470
Lessons from Auditing 110 Client/Server and Open Systems Projects 473
Regaining Control of Nuclear Fusion 475
Auditing a Troubled Project at Atlantic States Chemical Laboratories 480
Case: Theater High Altitude Area Defense (THAAD): Five Failures and Counting (B) 490
Reading: An Assessment of Postproject Reviews 493
13 Project Closure and Benefits Realization 499
13.1 The Varieties of Project Closure 500
13.2 When to Close a Project 503
13.3 The Closure Process 508
13.4 The Project Plan Report - A Project History 515
13.5 Benefits Realization 517
13.
Appendix A Probability and Statistics (Online)
Appendix B Solutions to Selected Problems (Online)
Appendix C Technological Forecasting (Online)
Appendix D Creativity and Idea Generation (Online)
