Introduction Project Management Paper

Please also review the table of content of your textbook. Talk about some of the topics you feel will be the most interesting to learn and why.

TABLE OF CONTENTCONTENTS

Preface xiii

Chapter 1 Introduction: Why Project Management? 1

PROJECT PROFILE: Development Projects that are Transforming Africa 1

The Need for Projects 3

What is a Project? 3

General Project Characteristics 5

PROJECT PROFILE: President Obama Signs the Program Management Improvement and Accountability Act 8

Why are Projects Important? 9

PROJECT PROFILE: London’s Crossrail: Europe’s Largest Construction Project 10

Project Life Cycles 12

BOX 1.1: Project Managers in Practice 14

Determinants of Project Success 15

BOX 1.2: Project Management Research in Brief 18

Developing Project Management Maturity 19

Employability Skills 23

Communication 23

Critical Thinking 23

Collaboration 23

Knowledge Application And Analysis 23

Business Ethics And Social Responsibility 23

Information Technology Application And Computing Skills 24

Data Literacy 24

Project Elements and Text Organization 24

Summary 28

Key Terms 29

Discussion Questions 29

Case Study 1.1 MegaTech, Inc. 30

Case Study 1.2 The IT Department at Hamelin Hospital 30

Case Study 1.3 Disney’s Expedition Everest 31

Case Study 1.4 “Throwing Good Money after Bad”: the BBC’s Digital Media Initiative 32

Internet Exercises 35

PMP Certification Sample Questions 35

Answers 35

Notes 35

Chapter 2 The Organizational Context: Strategy, Structure, and Culture 38

PROJECT PROFILE: The Airbus A 380: A Failure of Strategy? 38

Implementing Strategy Through Projects 40

Projects and Organizational Strategy 41

Stakeholder Management 43

Identifying Project Stakeholders 44

Managing Stakeholders 47

Organizational Structure 49

Forms of Organizational Structure 50

Functional Organizations 50

Project Organizations 53

Matrix Organizations 54

Moving to Heavyweight Project Organizations 57

BOX 2.1: Project Management Research in Brief 58

Project Management Offices 59

Organizational Culture 62

How Do Cultures Form? 64

Organizational Culture and Project Management 66

PROJECT PROFILE: Electronic Arts and the Power of Strong Culture in Design Teams 67

Summary 68

Key Terms 70

Discussion Questions 70

Case Study 2.1 Rolls-Royce Corporation 71

Case Study 2.2 Classic Case: Paradise Lost—The Xerox Alto 72

Case Study 2.3 Project Task Estimation and the Culture of “Gotcha!” 73

Case Study 2.4 Widgets ’R Us 73

Internet Exercises 74

PMP Certification Sample Questions 74

Answers 75

Integrated Project—Building Your Project Plan 76

Notes 78

Chapter 3 Project Selection and Portfolio Management 80

PROJECT PROFILE: Project Selection Procedures: A Cross-Industry Sampler 80

Introduction: Project Selection 81

Approaches to Project Screening and Selection 84

Method One: Checklist Model 84

Method Two: Simplified Scoring Models 85

Limitations of Scoring Models 87

Method Three: The Analytical Hierarchy Process 88

Method Four: Profile Models 91

Financial Models 93

Payback Period 94

Net Present Value 95

Discounted Payback 97

Internal Rate of Return 97

Choosing a Project Selection Approach 99

PROJECT PROFILE: Project Selection and Screening at GE: The Tollgate Process 100

Project Portfolio Management 101

Objectives and Initiatives 102

The Portfolio Selection Process 103

Developing a Proactive Portfolio 105

Keys to Successful Project Portfolio Management 108

Problems in Implementing Portfolio Management 108

Summary 110

Key Terms 111

Solved Problems 111

Discussion Questions 112

Problems 112

Case Study 3.1 Keflavik Paper ­Company 115

Case Study 3.2 Project Selection at Nova Western, Inc. 116

Internet Exercises 118

Notes 118

Chapter 4 Leadership and The Project Manager 120

PROJECT PROFILE: NASA Taps a Leader with the Right Stuff to Run Their Mars 2020 Project 120

Introduction: Successful Projects Need Leaders 122

Leaders Versus Managers 122

How the Project Manager Leads 124

Acquiring Project Resources 124

Motivating and Building Teams 125

Having a Vision and Fighting Fires 125

Communicating 126

BOX 4.1: Project Management Research in Brief 129

Traits of Effective Project Leaders 129

Conclusions about Project Leaders 130

PROJECT PROFILE: Leading by Example for the London Olympics—Sir John Armitt 131

Project Champions 132

Champions—Who Are They? 133

What Do Champions Do? 134

How to Make a Champion 135

The New Project Leadership 136

BOX 4.2: Project Managers in Practice 137

PROJECT PROFILE: The Challenge of Managing Internationally 138

Project Management Professionalism 138

Project Management and Ethics 140

Unethical Behaviors in Project Management 142

PROJECT PROFILE: Brazilian Construction Giant Caught in Wide-Spread Corruption Scandal 143

Summary 144

Key Terms 145

Discussion Questions 146

Case Study 4.1 In Search of Effective Project Managers 146

Case Study 4.2 Finding the Emotional Intelligence to Be a Real Leader 147

Case Study 4.3 Volkswagen and Its Project to Cheat ­Emissions Tests 147

Case Study 4.4 Problems with John 149

Internet Exercises 152

PMP Certification Sample Questions 152

Answers 153

Notes 153

Chapter 5 Scope Management 156

PROJECT PROFILE: Berlin’s Brandenburg Willy Brandt International Airport 156

Introduction: The Importance of Scope Management 158

Conceptual Development 158

The Statement of Work 161

The Project Charter 164

PROJECT PROFILE: Statements of Work: Then and Now 164

The Scope Statement 164

The Work Breakdown Structure 165

Purposes of the Work Breakdown Structure 165

The Organization Breakdown Structure 170

The Responsibility Assignment Matrix 173

PROJECT PROFILE: Defining a Project Work Package 174

Work Authorization 175

Scope Reporting 176

BOX 5.1: Project Management Research in Brief 177

Control Systems 178

Configuration Management 179

Project Closeout 180

Project Management and Sustainability 181

Managing Projects for Sustainability 183

PROJECT PROFILE: Nicaragua’s Canal and Sustainability Challenges 185

Summary 186

Key Terms 187

Discussion Questions 188

Problems 188

Case Study 5.1 Boeing’s Virtual Fence 188

Case Study 5.2 California’s High-Speed Rail Project 190

Case Study 5.3 Project Management at Dotcom.com 192

Case Study 5.4 The Expeditionary Fighting Vehicle 193

Internet Exercises 195

PMP Certification Sample Questions 195

Answers 196

MS Project Exercises 196

Appendix 5.1: Sample Project Charter 196

Integrated Project—Developing the Work Breakdown Structure 199

Notes 200

Chapter 6 Project Team Building, Conflict, and Negotiation 203

PROJECT PROFILE: Team-Building Events – Heli-skiing and Zombie Apocalypses 203

Introduction 205

Building the Project Team 205

Identify Necessary Skill Sets 205

Identify People Who have the required Skills 206

Talk to Potential Team Members and Negotiate with Functional Heads 207

Build in Fallback Positions 207

Assemble the Team 208

Characteristics of Effective Project Teams 208

A Clear Sense of Mission 208

A Productive Interdependency 209

Cohesiveness 209

Trust 209

Enthusiasm 210

Results Orientation 210

Reasons Why Teams Fail 210

Poorly Developed or Unclear Goals 211

Poorly Defined Project Team Roles and Interdependencies 211

Lack of Project Team Motivation 211

Poor Communication 212

Poor Leadership 212

Turnover Among Project Team Members 212

Dysfunctional Behavior 212

Stages in Group Development 213

Stage One: Forming 213

Stage Two: Storming 214

Stage Three: Norming 214

Stage Four: Performing 214

Stage Five: Adjourning 214

Punctuated Equilibrium 215

Achieving Cross-Functional Cooperation 216

Superordinate Goals 216

Rules and Procedures 217

Physical Proximity 217

Accessibility 217

Outcomes of Cooperation: Task and Psychosocial Results 218

Virtual Project Teams 218

PROJECT PROFILE: Tele-Immersion Technology Eases the Use of Virtual Teams 220

Conflict Management 221

What Is Conflict? 221

Sources of Conflict 222

Methods for Resolving Conflict 224

PROJECT PROFILE: Engineers Without Borders: Project Teams Impacting Lives 225

Negotiation 226

Questions to Ask Prior to the Negotiation 226

Principled Negotiation 227

Invent Options for Mutual Gain 229

Insist on Using Objective Criteria 230

Summary 231

Key Terms 232

Discussion Questions 232

Case Study 6.1 Columbus Instruments 232

Case Study 6.2 The Bean Counter and the Cowboy 233

Case Study 6.3 Johnson & Rogers ­Software Engineering, Inc. 234

Exercise in Negotiation 236

Internet Exercises 237

PMP Certification Sample Questions 237

Answers 238

Notes 238

Chapter 7 Risk Management 241

PROJECT PROFILE: Samsung’s Galaxy Note 7—Failure to Manage a New Product for Risk 241

Introduction: What is Project Risk? 243

BOX 7.1: Project Managers in Practice 245

Risk Management: A Four-Stage Process 246

Risk Identification 246

PROJECT PROFILE: Japan Decommissions a $9 Billion Nuclear Reactor that was Hardly Used 248

Risk Breakdown Structures 249

Analysis of Probability and Consequences 249

Risk Mitigation Strategies 252

Use of Contingency Reserves 254

Other Mitigation Strategies 255

Control and Documentation 255

PROJECT PROFILE: Collapse of Shanghai Apartment Building 257

Project Risk Management: An Integrated Approach 259

Summary 261

Key Terms 262

Solved Problem 262

­Discussion Questions 262

Problems 262

Case Study 7.1 Classic Case: de Havilland’s Falling Comet 263

Case Study 7.2 The Building that Melted Cars 266

Case Study 7.3 Classic Case: Tacoma Narrows Suspension Bridge 267

Internet Exercises 269

PMP Certification Sample Questions 269

Answers 270

Integrated Project—Project Risk Assessment 271

Notes 273

Chapter 8 Cost Estimation and Budgeting 274

PROJECT PROFILE: New York City’s Second Avenue Subway – Two Miles Completed for Only $5 Billion Spent 274

Cost Management 276

Direct Versus Indirect Costs 277

Recurring Versus Nonrecurring Costs 278

Fixed Versus Variable Costs 279

Normal Versus Expedited Costs 279

Cost Estimation 279

Learning Curves in Cost Estimation 283

Software Project Estimation—Function Points 286

BOX 8.1: Project Management Research in Brief 287

Problems with Cost Estimation 289

BOX 8.2: Project Management Research in Brief 290

Creating a Project Budget 291

Top-Down Budgeting 292

Bottom-Up Budgeting 293

Activity-Based Costing 293

Developing Budget Contingencies 295

Summary 297

Key Terms 298

Solved Problems 298

­Discussion Questions 299

Problems 300

Case Study 8.1 The Hidden Costs of Infrastructure Projects—The Case of Building Dams 303

Case Study 8.2 Sochi Olympics—What’s the Cost of National Prestige? 305

Internet Exercises 307

PMP Certification Sample Questions 307

Answers 308

Integrated Project—Developing the Cost Estimates and Budget 309

Notes 311

Chapter 9 Project Scheduling: Networks, Duration Estimation, and Critical Path 313

PROJECT PROFILE: Preparing for a Major Golf Tournament – It’s a Long Road to the First Tee 313

Introduction 315

Project Scheduling 315

Key Scheduling Terminology 317

Developing A Network 319

Labeling Nodes 319

Serial Activities 320

Concurrent Activities 320

Merge Activities 321

Burst Activities 321

Duration Estimation 324

Constructing the Critical Path 328

Calculating the Network 328

The Forward Pass 329

The Backward Pass 331

Probability of Project Completion 333

Laddering Activities 335

Hammock Activities 336

Options for Reducing the Critical Path 337

BOX 9.1: Project Management Research in Brief 338

Summary 339

Key Terms 340

Solved Problems 340

Discussion Questions 342

Problems 342

Case Study 9.1 ­Moving the Historic Capen House 345

Internet Exercises 347

MS Project Exercises 347

Answers 348

PMP Certification Sample Questions 348

Notes 349

Chapter 10 Project Scheduling: Lagging, Crashing, and Activity Networks 350

PROJECT PROFILE: Kiruna, Sweden – A Town on the Move! 350

Introduction 352

Lags in Precedence Relationships 352

Finish to Start 352

Finish to Finish 353

Start to Start 353

Start to Finish 354

Gantt Charts 355

Adding Resources to Gantt Charts 356

Incorporating Lags in Gantt Charts 357

BOX 10.1: Project Managers in Practice 357

Crashing Projects 359

Options for Accelerating Projects 359

Crashing the Project: Budget Effects 364

Activity-On-Arrow Networks 367

How Are They Different? 367

AOA Versus AON 372

Controversies in the Use of Networks 373

Conclusions 374

Summary 375

Key Terms 375

Solved Problems 376

Discussion Questions 377

Problems 377

Case Study 10.1 Project ­Scheduling at Blanque Cheque Construction (A) 379

Case Study 10.2 ­Project Scheduling at Blanque Cheque Construction (B) 380

MS Project ­Exercises 380

PMP Certification Sample Questions 381

Answers 382

Integrated Project—Developing the Project Schedule 383

Notes 384

Chapter 11 Advanced Topics in Planning and Scheduling: ­Agile and Critical Chain 386

PROJECT PROFILE: General Electric – Using Agile Methods to Speed New Project Delivery 387

Introduction 387

Agile Project Management 388

What Is Unique About Agile PM? 389

Tasks Versus Stories 391

Key Terms in Agile PM 391

Steps in Agile 393

Sprint Planning 393

Daily Scrums 393

The Development Work 394

Sprint Reviews 394

Sprint Retrospective 395

Keys to Success with Agile 395

Problems with Agile 396

BOX 11.1: Project Management Research in Brief 397

Extreme Programming (XP) 397

Theory of Constraints and Critical Chain Project Scheduling 398

Theory of Constraints 398

The Critical Chain Solution to Project Scheduling 399

Developing the Critical Chain Activity Network 402

Critical Chain Solutions Versus Critical Path Solutions 404

PROJECT PROFILE: Eli Lilly Pharmaceuticals and Its Commitment to Critical Chain Project Management 405

Critical Chain Solutions to Resource Conflicts 406

Critical Chain Project Portfolio Management 407

BOX 11.2: Project Management Research in Brief 410

Critiques of CCPM 411

Summary 411

Key Terms 413

Solved Problem 413

D­iscussion Questions 414

Problems 414

Case Study 11.1 It’s an Agile World 416

Case Study 11.2 Ramstein Products, Inc. 417

Internet Exercises 418

Notes 418

Chapter 12 Resource Management 420

PROJECT PROFILE: Environmental Concerns and Political Leadership Impact Fossil Fuel Project Cancellations 420

Introduction 422

The Basics of Resource Constraints 422

Time and Resource Scarcity 423

Resource Loading 425

Resource Leveling 426

Step One: Develop the Resource-Loading Table 430

Step Two: Determine Activity Late Finish Dates 430

Step Three: Identify Resource Overallocation 432

Step Four: Level the Resource-Loading Table 432

Resource-Loading Charts 435

BOX 12.1: Project Managers in Practice 438

Managing Resources in Multiproject Environments 439

Schedule Slippage 439

Resource Utilization 439

In-Process Inventory 440

Resolving Resource Decisions in Multiproject Environments 440

Summary 442

Key Terms 443

Solved Problem 443

Discussion Questions 444

Problems 444

Case Study 12.1 The Problems of Multitasking 446

Case Study 12.2 “First Come, First Served”: Resource Challenges for Sunrise Restoration† 447

Internet Exercises 448

MS Project Exercises 448

PMP Certification Sample Questions 449

Answers 450

Integrated Project—Managing Your Project’s Resources 451

Notes 451

Chapter 13 Project Evaluation and Control 452

PROJECT PROFILE: U.S. Army Can’t Track Spending on its Spending Tracker Project 452

Introduction 453

Control Cycles—A General Model 454

Monitoring Project Performance 454

The Project S-Curve: A Basic Tool 455

S-Curve Drawbacks 457

Milestone Analysis 457

Problems with Milestones 459

The Tracking Gantt Chart 459

Benefits and Drawbacks of Tracking Gantt Charts 460

Earned Value Management 460

Terminology for Earned Value 461

Creating Project Baselines 462

Why Use Earned Value? 462

Steps in Earned Value Management 464

Assessing a Project’s Earned Value 465

Using Earned Value to Manage a Portfolio of Projects 470

Flow of Earned Value System 470

PROJECT PROFILE: Earned Value at Northrop Grumman 471

Issues in the Effective Use of Earned Value Management 472

Human Factors in Project Evaluation and Control 474

Critical Success Factor Definitions 476

Conclusions 477

Summary 478

Key Terms 479

Solved Problem 479

Discussion Questions 480

Problems 481

Case Study 13.1 The IT Department at Kimble College 483

Case Study 13.2 The Superconducting S­upercollider 484

Case Study 13.3 “Dear Mr. President—Please cancel our project!”: The Honolulu Elevated Rail Project 485

Internet Exercises 487

MS Project Exercises 487

PMP Certification Sample Questions 488

Answers 489

Appendix 13.1: Earned Schedule 489

Notes 494

Chapter 14 Project Closeout and Termination 496

PROJECT PROFILE: Amazon’s Golden Touch Fails with a High-Tech Gadget 496

Introduction 497

Types of Project Termination 498

BOX 14.1: Project Managers in Practice 498

Natural Termination—the Closeout Process 500

Finishing the Work 500

Handing Over the Project 500

Gaining Acceptance for the Project 501

Harvesting the Benefits 501

Reviewing How It All Went 502

Putting It All to Bed 504

Disbanding the Team 504

What Prevents Effective Project Closeouts? 505

Early Termination for Projects 505

Making the Early Termination Decision 507

PROJECT PROFILE: Aftermath of a “Feeding Frenzy”: Dubai and Canceled Construction Projects 508

Shutting Down the Project 509

Allowing for Claims and Disputes 510

BOX 14.2: Project Management Research in Brief 511

Preparing the Final Project Report 513

Conclusion 514

Summary 514

Key Terms 515

Discussion Questions 515

Case Study 14.1 New Jersey Kills Hudson River Tunnel Project 516

Case Study 14.2 The Project That Wouldn’t Die 517

Case Study 14.3 The Navy Struggles to Avoid Cancellation of its Littoral Combat Ship Program 518

Internet Exercises 519

PMP Certification Sample Questions 520

Answers 521

Appendix 14.1: Sample Pages from Project Sign-off Document 522

Notes 526

Appendix A The Cumulative Standard Normal Distribution 528

Appendix B Tutorial for MS Project 2016 529

Appendix C Project Plan Template 539

Glossary 543

Company Index 553

Name Index 555

Subject Index 559