Project Management Theory and Practice

Transcription

1 Project Management Theory and Practice Gary L. Richardson CRC Press Taylor& Francis Group Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an informa business AN AUERBACH BOOK

2 Preface Acknowledgments Author xxiii xxv xxvii PART I Conceptual Overview of the Project Environment Chapter 1 Introduction : Project Management Role of the Project Manager Project Manager Skills Success Management Text Content and Organization Text Structure 6 Appendices 7 References 8 Chapter 2 Evolution of Project Management Early History of Project Management Application of Analytical Science Frederick Taylor and Scientific Management Frank and Lillian Gilbreth Henry Gantt Mary Parker Follett Elton Mayo Phases of Project Management Evolution Project Management Challenges Project Management Benefits At the Macrolevel At the Microlevel 18 References 18 Chapter 3 Project Management Body of Knowledge High Level Overview' History of PMBOK Guide development Structure of the PMBOK 9 Guide Project Domains Initiation Planning 25

3 VI Contents Execution Monitoring and Controlling Closing Knowledge Areas Scope Management Time Management Cost Management Quality Management Human Resources Management Communications Management Risk Management Procurement Management Integration Management Overall Process View Key Introductory Vocabulary Terms Ancillary Models Summary 31 Reference 31 Chapter 4 Industry Trends in Project Management Standardizing Project Management Enterprise Project Management EPM in Operation Implementation and Advantages of EPM Other Trends Impacting Project Management Project Management Perspective 37 Discussion Questions 37 References 37 Chapter 5 Project Types 39 - Reference 42 Chapter 6 Project Organization Concepts PM Role Reporting Relationships Team Resources Team Productivity and Size Team's Physical Location Issues Virtual Organizations Organizational Culture Summary 48 References 48 Chapter 7 Project Life Cycle Models Overview of Project Methodologies Life Cycle Management Process Feasibility Review Project Plan 51

4 VII Logical versus Physical Design Quality Control and Assurance Monitor and Control Periodic Status Reviews Milestone or Stage Gate Reviews Project Close Project Communication Processes Life Cycle Models Templates Key Project Management Artifacts Initiating Planning Execution Monitoring and Control Baseline Project Methodology Models Summary Points Potential Shortcomings of Project Methodologies 57 References 57 Chapter 8 Quick Start Example : Project Management Work Packages WP Dictionary Multiple WPs Psychology of Estimating Procrastination Developing the Whole Project View Project Scope Example: Pool Project Mechanics Quick Start Wrap-Up 67 Discussion Questions 68 Reference 68 Concluding Remarks for Part I 69 PART II Projects as State Change Vehicles Chapter 9 Role of Projects in the Organization Project Valuation Models Project Selection Strategies Conclusion 78 References 78 Chapter 10 Project Initiation Environmental Factors to Consider User Involvement Executive Management Support Experienced PM 85

5 viii Contents Communications Clear Business Objectives Minimized Scope Other Success Factors Agile Development Approaches Existence of a Standard Process Infrastructure Use of a Standard Methodology Reliable Time Estimates Availability of Appropriate Skills Industry and Organizational Culture Predicting a Project's Success Forecasting the Success of Technology Projects Conclusion 92 References 92 Concluding Remarks for Part II 93 PART III Defining the Triple Constraints Chapter 11 Project Plan Development Arguments for Planning Project Monitoring and Control Conflicting Expectations Overlooking the Real Solution Competing Solutions Misaligned Goals Quality Solutions Plan Process and Components Initial Planning View Plan Artifacts Real-World Planning Process Conclusion 104 References 105 Chapter 12 Scope Management Defining Project Work Units WP Planning Variables Multiple WPs Developing the Project View Developing Project WBS WBS Mechanics WBS Numbering Scheme WBS Dictionary Other WBS Views Tracking Status of the WP WBS Construction Mechanics Requirements "Ibilities" Moving Forward 122 References 123

6 ix Chapter 13 Time Management Defining Project Work Activities Activity Definitional Data Elements Activity Sequencing Duration Estimating Tips for Accurate Estimating Types of Estimates Estimating Techniques Expert Judgment Analogous Estimating Heuristic Estimating Delphi Technique Parametric Estimating Phased Estimating Effort Distribution Estimating (Top-Down) Bottom-Up Estimating ~ Monte Carlo Simulation Activity Sequencing Arrows and Boxes Models AON Model Time Calculation Network Mechanics Establishing the Project Activity Sequence Forward Pass Calculation Backward Pass Calculation Defining Critical Path Manipulating the Schedule Automated Calculation Tools Formatting Activity Results Which Diagram Format Wins? Summary Estimating Checklist 146 References 147 Chapter 14 Cost Management Project Cost Planning Basics Cost Planning Cost Accuracy Organizational Overhead Scope, Time, and Cost Alignment Scope Replanning Fast Tracking Schedule Crashing Indirect Costs Resource Alignment Budget Reserves Approved Changes Risk Events Management Reserve 158

7 14.9 Money Can Have Different Forms Budget Expense Categories Assets versus Expenses Budget Cost Components Management Approval and Baselines Summary 162 References 162 Concluding Remarks for Part III 163 PART IV Advanced Planning Models Chapter 15 Analyzing Variable Time Estimates History of Variable Time Estimates Modifying PERT for Commercial Projects Defining Variable Time Estimates Central Limit Theorem Triangular Distributions Calculating Probability of Completion Summary 174 References 175 Chapter 16 Project Simulation Traditional Time Modeling Tools Near Critical Path Activities Task Existence Risk Modeling Conditional Activity Branching Correlation between Task Durations Simulation in Risk Management Pertmaster Modeling Other Pertmaster Metrics Summary 183 References 184 Chapter 17 Critical Chain Management Model Introduction CC Concepts CC Mechanics CCM Model Principles of the CC Model Buffer Management Buffer Types Building the CC Schedule Resource Allocation Implementation Challenges Organizational Barriers Lack of Project Management Maturity Buffer Resistance 195

8 xi Milestone Tracking versus Buffer Management Reporting Existing Processes Existing Project Management Methodology Existing Tools and Processes Formal Tracking and Reporting Mechanisms Resistance to Change Leadership Challenges Project Control Planning Support WBS Development Schedule Development Buffer Calculations Dictated versus Derived Scheduling Project Prioritization Resource Commitment Multitasking Prioritization Skill Requirements Task Time Estimation Estimating Logic Project Manager Team Members Task Status Reporting Buffer Management Organizational Challenges of the CC CC Implementation Strategies Conclusion 204 References 205 PART V Planning Support Processes Chapter 18 Human Resource Management HR Planning HR in Execution Acquire Project Team Project Organizations Dotted Lines People Issues Role Specifications Responsibility Assignment Matrix Resource Histograms Staff Management Plan Motivation Theory Individual Motivation Theories Team Motivation 218

9 xii Contents Hygiene Dissatisfiers Employee Satisfaction Conflict Management Conflict Sources Negotiation Skills Techniques for Handling Conflict Conflict Management Scenario Case Leader versus Manager? Attributes of a Leader Training Programs Summary 226 References 226 Chapter 19 Project Communications Introduction Engaging Employees: A Case Study Communications Management Processes Identify Stakeholders Plan Communications Distribute Information Manage Stakeholder Expectations Report Performance Human Communications Model Communication Channels Communicating Information Improving the Effectiveness of Communication Effective Listening Barriers to Effective Communication Communication Tension Communication Styles Communications: The Impossible Goal? Conclusion 242 Discussion Questions 242 References 242 Chapter 20 Procurement Management Introduction Procurement Management Make or Buy Decision Procurement Management Processes Planning for Procurement Planning Stage Outputs Procurement SOW Conduct Procurements Requests for Information Requests for Proposals Requests for Quotation Invitations for Bid Invitation to Negotiation 250

10 xiii 20.7 Bidding Process Selecting Sellers Contract Negotiation Contracts Administer Procurement Procurement Audits Contract Review and Reporting Record Keeping and Audits Close Procurements Procurement of Human Services Ranking Vendor Proposals Instructions Summary 258 Discussion Questions 260 Glossary of Procurement Terms 260 Appendix: Legal Terms 261 References 263 Chapter 21 Quality Management Introduction Evolution of Quality Definition of Quality Project Quality Management Quality Perspective Implications for Project Planning Stage Quality Planning Quality Policy Quality Objectives Quality Management Components Quality Definition Quality Planning Quality Assurance Quality Control QA versus QC Operational Roles Quality Gurus Edwards Deming Joseph Juran Philip Crosby Kaoru Ishikawa Armand Feigenbaum Genichi Taguchi Six Sigma Other Gurus Quality Management Programs ISO Zero Defects Total Quality Management Six Sigma Statistical Definition of Six Sigma Six Sigma Fascination 278

11 xiv Contents Basic Methodologies DMAIC Process Overview PMBOK Guide Quality Process Model Other Programs Evaluating Quality Benchmarking What Is It? Types of Benchmarking J. D. Power's Quality Benchmarking Continuous Improvement Failure Mode and Effects Analysis Quality Tools Other Quality Analysis Techniques Design of Experiments Quality Function Deployment Organizational Roles and Responsibilities Issues in Quality Management Toyota Quality Perspective Future of Quality Management Worksheet Exercise: Are You Meeting Quality Goals? 294 Discussion Questions 296 References 296 Chapter 22 Risk Management Introduction Risk Management Process Risk Management Planning Developing an RBS Risk Identification Qualitative and Quantitative Risk Analysis Risk Assessment Risk Contingency Budget Risk Response Planning Risk Monitoring and Control Risk Events versus Issues Project Risk Assessment Worksheet Risk Case Study Mishap Foils Latest Attempt at a 25-Mile Skydive Conclusion 314 Discussion Questions 316 References 316 Chapter 23 Plan Review and Approval Reviewing Plan Components Plan Approval Process Review Major Planning Artifacts Financial and Control Structures Scope Reserve Risk Reserve 321

12 xv Level of Effort Overhead Management Reserve Profit Budget Structure and Format Control Structure Documentation Plan Packaging External Communication Process Planning Stage Close 326 Discussion Questions 327 PART VI Project Execution Managing the Plan Chapter 24 Project Execution and Control Introduction Magic Twelve Success Indicators Status View Status-Tracking Processes Turning the Management and Control Knobs : ICC Process Human Relations and Communications Issues Team Acquisition Developing the Project Team Team Development Team Skills and Capabilities Manage Project Team 339 / Motivation Level Meetings as Information Sources Meeting Structure Management Involvement Project Team Member Dissatisfiers Project Team Member Motivators Conclusion 344 Discussion Questions 344 References 345 PART VII Monitoring and Controlling Techniques Chapter 25 Change Management." Introduction Integrated Change Control Project Management Plan Change Control System Configuration Management Change Management Workflow External Communication Issues 358

13 xvi Contents 25.8 Project Operational Integration Summary Change Request Checklist 360 References 361 Chapter 26 Project and Enterprise Metrics Introduction Fundamentals Alignment with Organization Goals Alignment with Organizational Maturity Drivers of Performance and Change Summary Categories Metrics Evaluation Criteria Establishing a Baseline and Setting Targets Beware of the Metrics Pitfalls Mechanics Miscellaneous Issues Industry Standard Metrics for Monitoring and Control Conclusion 374 References 375 Chapter 27 Earned Value Management Basic Principles Calculating EV Parameters Interpreting EV Parameters EVM Criteria EVM Simplified EVM for Commercial Applications Emerging Applications of EVM Earned Schedule ES Mathematical Formulation ES Formulae ES Indicators EVM Pros and Cons Conclusions 389 Appendix 389 A. Summary Review of EV Metrics and Performance Parameters 389 B. EV Formulae and Interpretation 390 C. Using a Summary Project Plan Spreadsheet to Calculate EV Parameters 390 D. EV Earning Rules References 394 Chapter 28 Tracking Project Progress Introduction Status Tracking Tracking Metrics Information Distribution Control 398

14 xvii Project Plan Issue Management Process Configuration Management Integrated Change Control KA Controls Scope Control Schedule Control Cost Control Quality Control Project Status Tracking Case Study Conclusion 403 References 403 Chapter 29 Enterprise Reporting Using the Balanced Scorecard Introduction Scorecard Implementation Communicating Strategic Objectives Communicating Strategy Assigning Responsibility Aligning Strategy Process Integration BSC Implementation Principles Best Practices Barriers to Success BSC Model Financial Perspective Internal Business Process Perspective Learning and Growth Perspective ' Customer Perspective BSC as a Strategic Management System Overcoming the Vision Barrier Overcoming the People Barrier Overcoming the Resource Barrier Overcoming the Management Barrier BSC as a Communication Tool Balancing the BSC Components Advantages and Disadvantages of BSC Advantages Disadvantages Future of the BSC Conclusion 415 References : 416 Part VIII Closing the Project Chapter 30 The Closing Process Project Implementation Review Normal Project Termination 420

15 30.2 Abnormal Termination Termination Model Project Termination Checklist Project Team and Client Relationship Creating Lessons Learned Documentation Lessons Learned Report Project Team Celebration Conclusion 425 References 425 PART IX Contemporary Topics Chapter 31 Organizational Maturity Introduction Overview of Formal CMMs SEFs CMM CMM Structure CMM Maturity Levels Initial Level (Level 1) Repeatability Level (Level 2) Defined Level (Level 3) Managed Level (Level 4) Optimizing Level (Level 5) Capability Maturity Model Integration (CMMI) Value of Organizational Maturity Organizational Project Management (0PM3) Overview of OPM OPM3 Components Knowledge Assessment Evaluation Process Best Practices Capabilities Directory Improvement Planning Directory OPM3 Processes Applying OPM3 in an Organization OPM3 Benefits and Case Studies Conclusion 445 References 446 Chapter 32 Project Portfolio Management Introduction Role of PPM Improving Project Selection Decisions Improving Visibility of Project Performance Better Understanding of Project Value Conducting "What If Analysis Project Investment Management 449

16 xix 32.8 Who Needs a PPM? PPM Goal Structure Subgoal 1: Strategic Goal Alignment Subgoal 2: Resource Investment Focus Subgoal 3: Better Project Control/Governance Subgoal 4: Efficiency Subgoal 5: Balance Subgoal 6: Value Optimization Models of PPM The Hybrid Model Efficient Frontier Project Assessment Keys to Implementing PPM PPM Principles : Finding the Approach that Fits Executive Support Governance Framework Value-Measurement Framework Institute Effective Processes PPM Implementation Roadmap External Expertise Implementation Goals Key PPM Interfaces PPM Implementation Challenges Advantages of Implementing PPM Summary 462 References 462 Chapter 33 Enterprise Project Management Office Introduction PMO Functions Enterprise Project Management Office Communication Performance Metrics Status Reporting EPMO Communication Linkages EPMO Organizational Models Weather Station Organization Driver Formal Authority Control Tower Organization Driver Formal Authority Resource Pool Organizational Driver Formal Authority Which Model Is the Right One? EPMO Maturation Stages EPMO Tools and Technology Evaluating and Prioritizing New Projects 477

17 xx Contents Weighted Criteria Example Summary 478 References 479 Chapter 34 HR Outsourcing Introduction Management Drivers First Wave Outsourcing Offshoring Wave Issues with Outsourcing Relationships Outsourcing Success and Failures Best Outsourcing Practices Outsourcing Vendor Evaluation Worksheet Conclusion 489 References 489 Chapter 35 High Productivity Teams Background and Overview Introduction to TSP Concepts PP Concepts PP Example Introducing PP to the Team TP Process TP Work Objects and Principles TP Launch Structure TP Launch Details Teamwork Process Quality Management..' Experience Examples and Evaluation TSP Qualitative Feedback Results Future Trends Large, Multidisciplined Projects Summary 503 References 503 Chapter 36 Project Governance Introduction Need for Project Governance Project Governance Definition Organizational Level Project Governance Principles ; Tactical Level Project Governance Operational Governance Model Defining Responsibilities Populating the Project Governance Framework Governance Life Cycle Maturity Model Governance Value Process Corporate Governance and Project Teamwork (Halas) Commentary 518

18 xxi Conclusion 518 References 519 PART X Professional Ethics and Responsibility Chapter 37 Ethical Project Management Practices Learning Objectives Introduction PMI's Code of Professional Conduct 526 Review Questions 526 Reference 529 Appendix A Financial Metrics 531 Appendix B Templates 539 Appendix C Project Repository Architecture 541 Index 545